Nar Vol. 20 No. 2 Complete

THE NATIONAL ADMINISTRATIVE REGISTER VOLUME 20z zz zz No.
2
Notice (To All Government Agencies) .................................................. iii
Guidelines for Receiving and Publication of Rules and Regu-
lations filed with the U.P. Law Center ............................................. iv
Additional Guidelines for the Receiving and Publication of
Rules and Regulations filed with the U.P. Law Center
Re: SHARING FEE SHARING FEE SHARING FEE SHARING FEE SHARING FEE ..................................................................... vi
Requiring All Government Agencies to submit Electronic Copy
of the Rules and Regulations when filing such Rules and
Regulations with the Office of the National Administrative
Register, U.P. Law Center ............................................................. viii
Mandates under:
a. The Administrative Code of 1987 ..................................... ix
b. Administrative Order No. 108, s. 1989 ..................................... x
c. Proclamation No. 495, s. 1989 ................................................. xi
d. Memorandum Circular No. 11, s. 1992 ..................................... xii
The Case of Philippine Association of Service Exporters, Inc.
(PASEI) vs. Hon. Ruben D. Torres, et., al., (G.R. No. 101279,
Aug. 6, 1992, 212 SCRA 298) ................................................. xiv
BANGKO SENTRAL NG PILIPINAS
A. Mabini cor. Vito Cruz Sts. Malate, Manila
Amendment to Circular No. 619, dated 22 August 2008, on the 20%
Final Withholding Tax on Overnight Reverse Repurchase
Transactions with the BSP -------------------------------------------------------------- 547
Amendments to the Guidelines on the BSP Rediscounting Facility -------------- 547
Guidelines Governing the Issuance of Electronic Money (e-money)
and the Operations of Electronic Money Issuers (EMI) in the Philippines- 549
Authority of Thrift Banks to Issue Foreign Letters of Credit (LCs)
and Pay/Accept/Negotiate Import/Export Drafts/Bill of Exchange ----------- 554
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Documentary Stamp Tax on the Sale , Barter or Exchange of
Shares of Stock ---------------------------------------------------------------------------------- 556
Extension of the Effectivity of Circular No. 629 on the Treatment of
Net Unrealized Losses in the FCDU/EFCDU Book for Purposes
of Determining Compliance with the FCDU/EFCDU Asset Cover
Requirement ---------------------------------------------------------------------------------- 557
Amendments to Section 7 (Additional Requirement) and Annex D
of Circular No. 471 dated 24 January 2005 on the Sale of
Foreign Exchange by Foreign Exchange Dealers/Money Changers -- 558
Guidelines in the Preparation of Audited Financial Statements for
Trust Institutions ------------------------------------------------------------------------------ 558
Amendment of Ceilings on Loans to Subsidiaries and Affiliates -------------- 561
One Year Suspension of Requirement on the Use of AFS Audited
by Accredited External Auditors for Banks Internal Credit Rating
System ------------------------------------------------------------------------------------------ 562
BUREAU OF ANIMAL INDUSTRY
Elliptical Road, Diliman, Quezon City
Lifting the Temporary Ban on the Importation of Domestic and Wild
Birds and their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Idaho, USA -------------------------------------- 562
Temporary Ban on the Importation of FMD-Susceptible Animals,
their Products and By-Products Originating from Egypt -------------- 563
Lifting the Temporary Ban on the Importation of Domestic and Wild
Birds and their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Belgium -------------------------------------- 563
Temporary Ban on the Importation of Domestic and Wild Birds and
their Products Including Poultry Meat, Day Old Chicks , Eggs
and Semen Originating from Kentucky, USA. -------------------------------------- 564
Implementation of BSE Controlled Risk Measures on the
Importation of Meat from the Netherlands -------------------------------------- 564
Implementation of BSE Controlled Risk Measures on the Impor-
tation of Meat from Denmark -------------------------------------------------------------- 565
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Guidelines for the Amendment of Special Order No. 120, s. 2007
and the Creation of New Marketing Coordinators Who Will
Underatake the Livestock and Poultry Marketing Programs and
Activities in the Regions -------------------------------------------------------------- 566
BUREAU OF CUSTOMS
Customs Bldg., Port Area, Manila
Revised Rules and Regulations for the Establishment, Operation,
Supervision and Control of Customs Bonded Warehouses -------------- 568
Guidelines in the Implementation of the Border Patrol Agreement
and Border Crossing Agreement Between the Government of the
Republic of Indonesia and the Government of the Republic of
the Philippines ---------------------------------------------------------------------------------- 579
Procedures for the Implementation of e2m Customs-Import Assess-
ment System (IAS) at the Port of Batangas Starting March 21, 2009 -- 582
Definitive General Safeguard Duty on Importations of Clear and
Tinted Float Glass from Various Countries -------------------------------------- 582
Parameters for Regularizing the Provisional Authority to Import
Resin Through the Warehousing Scheme Granted Pursuant to
CAO 4-2008 A ---------------------------------------------------------------------------------- 583
Revised Rules and Regulations on Accreditation of Importers -------------- 584
Abolition of the Vehicle Importation Compliance Monitoring Unit
(VICMU) and Creating for the Purpose, the Electronic Certificate
of Payment and Clearance Unit (E-CPU) Under the Office of the
Commissioner --------------------------------------------------------------------------------- 589
Revision of the BOC Performance Management System Under
CMOs 13-2008, 6-2008, and 31-2002 -------------------------------------------------- 591
Safeguard Investigation No. 01-2007 entitled: In the Matter of the
Second Year Final Extension of the Definitive General
Safeguard Measure Against the Importation of Ceramic Floor
and Wall Tiles from Various Countries (AHTN Code Nos. 6907.
1910, 6907.9090, 6908.9011, 6908.9021, 6908.9029, 6908.
9090) Ceramic Tile Manufacturers Association, Petitioner -------------- 591
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Guidelines in the Allocation of Revenue Collection Target and
Submission of Financial Reports -------------------------------------------------- 592
Provisional Safeguard Measures Against the Importation of Steel
Angle Bars from Various Countries --------------------------------------------------- 594
Revised Rules and Regulations on Accreditation of Importers
Thereby Amending CMO No. 15-2009 dated April 13, 2009 -------------- 594
Amended Guidelines and Procedures for Implementing BOC-PEZA
Joint Memorandum Order No. 03-2002 dated 27 July 2002 -------------- 600
BUREAU OF IMMIGRATION
Magallanes Drive, Intramuros, Manila
Amending MC No. MCL-09-001 dated 18 February 2009 Providing
the IRR for E.O. No. 758 dated 04 February 2009, entitled
Prescribing the Guidelines for Issuance of Special Visa for
Employment Generation to Certain Individuals and under Special
Circumstance ---------------------------------------------------------------------------------- 603
BUREAU OF INTERNAL REVENUE
BIR Road, Diliman, Quezon City
Reverting the Venue for the Filing of Returns and Payment of
Capital Gains Tax, Creditable Withholding Tax and Documentary
Stamp Tax Due on Sale, Transfer or Exchange of Real Property
of Large Taxpayers to the Place Where the Property is Located-------------- 604
Amending the Provisions of Section 24 of RR No. 3-2006 Pertaining
to the Incremental Revenue Under R.A. No. 9334 -------------------------- 608
Amending Further RR No. 9-2001, as Amended by RR No. 2-2002,
RR No. 9-2002, RR No. 26-2002, RR No. 5-2004, and RR No.
10-2007 Expanding the EFPS Coverage to Include the Top
20,000 Private Corporations Duly Identified Under RR No. 14-2008 -- 609
Acceptance and Reporting of Tax Returns and Payments -------------------------- 610
Clarifying the Allowable Claims for Personal and Additional Exemp-
tions and Optional Standard Deduction (OSD) Pursuant to
RR Nos. 10-2008 and 16-2008, Respectively -------------------------------------- 611
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Enjoining the Strict Implementation of the Penalty Provisions for
the Non-Submission of Quarterly Summary Lists of Sales and
Purchases ---------------------------------------------------------------------------------- 612
CEBU PORT AUTHORITY
CIP Complex, Serging Osmea Blvd., North Reclamation Area, Cebu city
Erratum for Section 2.3 of M.C. No. 07-2008 (Tariff Increase for
Foreign Cargo-Handling) ---------------------------------------------------------------------- 614
Tariff Increase in Foreign Cargo-Handling Services -------------------------- 615
Tariff Increase for Domestic Cargo-Handling Tariff -------------------------- 616
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
Reinstituting Selective Pre-Audit on Government Transactions -------------- 616
Suspension of Item 3.1 of COA Circular No. 2009-002 dated May
18, 2009 and other Provisions Relating to Pre-Audit of Transac-
tions Referred to and Listed in Annex A -------------------------------------- 629
CONSTRUCTION INDUSTRY ARBITRATION COMMISSION
4/F, Jupiter Bldg., No. 56 Jupiter St., Bel-Air, Makati City
Approving Additional Ranges and Base Amounts for Arbitrators Fees -- 630
COOPERATIVE DEVELOPMENT AUTHORITY
5/F, Ben-Lor Bldg., Quezon Avenue, Quezon City
Guidelines for the Re-Registration of Cooperatives -------------------------- 631
Procedural Guidelines in the Re-Registration of Cooperatives -------------- 634
DANGEROUS DRUGS BOARD
3/F DDB -PDEA Bldg., NIA Road, National Government Center, East Triangle, Diliman, Quezon City
Guidelines for the Rehabilitation of First Time Offenders Under
Section 15 of RA 9165 Who Are Not Drug Dependents -------------------------- 639
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Implementing Guidelines for the Implementation of Board
Regulation No. 6, S. of 2007, Entitled Classifying Toluene-
Based Contact Cement Products Without at Least 5% Mustard
Oil Content as Dangerous Drugs -------------------------------------------------- 643
General Guidelines for the Conduct of Random Drug Testing for
Students of Secondary, Tertiary, Vocational and Technical
Schools, Amending Board Regulation No. 6, s. of 2003-------------------------- 653
DEPARTMENT OF AGRICULTURE
Elliptical Road, Diliman, Quezon City
Code of Conduct for the Officials and Employees of the DA -------------- 658
Rules and Regulations Governing the Importation of Agricultural
and Fish and Fishery/Aquatic Products, Fertilizers, Pesticides
and Other Agricultural Chemicals, Veterinary Drugs and
Biological Products into the Philippines -------------------------------------- 672
Guidelines on the Agricultural Competitiveness Enhancement Fund
(ACEF) Scholarship Program -------------------------------------------------------------- 684
DEPARTMENT OF ENERGY
Energy Center, Merritt Road, Fort Bonifacio, Taguig, Metro Manila
Reiterating a Transparent and Competitive System of Awarding
Service/Operating Contracts for Coal, Geothermal and
Petroleum Prospective Areas Repealing for this Purpose
Department Circular No. DC 2006-12-0014 -------------------------------------- 687
Visayas Supply Augmentation Auction (VSAA) Rules -------------------------- 692
RRI Republic Act No. 9513 ---------------------------------------------------------------------- 693
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
Visayas Avenue, Diliman, Quezon City
Amendment of MC No. 2009-03 Supplemental Guidelines and
Procedures in the Implementation of the Upland Development Program - 693
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Prescribing Guidelines for the Systematic Disposition of Alienable
and Disposable Residential Lands Through Miscellaneous Sales
Application Under R.A. No. 730 -------------------------------------------------- 694
Granting Clearance to Assist in the Management of the IPO
Watershed Areas to the Manila Water Company, Inc. and
Maynilad Water Services, Inc. -------------------------------------------------- 698
Amending Section 4.1 and Section 5 DAO 2007-20 Entitled Rules
and Regulations Governing the Issuance of Permit Over
Reclamation Projects and Special Patents Over Reclaimed Lands -- 699
Code of Conduct and Ethical Standards of the DENR -------------------------- 699
DEPARTMENT OF FINANCE
Roxas Boulevard Corner Vito Cruz St., Manila
Clarificatory Guidelines on Duty-Free Importation of Books -------------- 709
DEPARTMENT OF HEALTH
2/F Bldg., 1 San Lazaro Cmpd., Rizal Avenue. Sta. Cruz, Manila
Revised Policy and Guidelines on the Diagnosis and Treatment for Malaria-- 713
IRR of R.A. No. 9420, Otherwise known as An Act Converting
Two Hundred (200) Beds of the 2000 Beds Dr. Jose N. Rodriguez
Memorial Hospital and Sanitarium for Tertiary General Health
Care, Appropriating Funds Therefore and for Other Purposes -------------- 723
Addendum to A.O. No. 1, s. 2003 Operational Guidelines in the
Conduct of Pre-Employment Medical Examination of Overseas
Workers and Seafarers ---------------------------------------------------------------------- 723
Adoption of the Revised DOH Code of Conduct -------------------------------------- 724
Revised Policies and Guidelines on the Regulations on the
Issuances of a License to Operate, Certificate of Conformity
and Clearance for Customs Release Prescribed to Manufac-
turers, Importers and Distributors of Toys in the Philippines -------------- 726
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DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
A. Bonifacio Drive, Port Area, Manila
Amendment to D.O. No. 3, s. of 2009, Reducing the Minimum Paid-
Up Capital Requirements for DPWH Accreditation of Surety and
Insurance Companies from P500M to P100M -------------------------------------- 735
DEPARTMENT OF SCIENCE AND TECHNOLOGY
2/F, DOST Main Bldg., General Santos Avenue, Bicutan, Taguig, Metro Manila
DOST Merit Selection Plan ---------------------------------------------------------------------- 736
Amended Evaluation Guidelines for Eligibility of Non-DOST System
S&T Personnel Under R.A. No. 8439, Magna Carta for Scientists,
Engineers, Researchers and Other Science and Technology
Personnel in Government -------------------------------------------------------------- 736
Unanimously Approving the Academic Equivalency of Doctor of
Medicine for Purposes of Admission to the Scientific Career System -- 736
DEPARTMENT OF TRADE AND INDUSTRY
Trade and Industry Bldg., 385 Se. Gil J. Puyat Avenue, Makati City
IRR on the Tariff Rate Quota Availment for Philippine Imports of
Tinplate (TP), Hot Rolled and Cold R olled Steel from Japan
Under the Japan-Philippines economic Partnership Agreement (JPEPA)-- 737
The Adoption and Implementing of the Globally Harmonized System
of Classification and Labeling of Chemicals (GHS) -------------------------- 748
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS
The Columbia Tower, Brgy. Wack-Wack, Ortigas Avenue, Mandaluyong City
Guidelines for Strict Adherence to the Rules on Due Process Upon
Failure by a PETC to Comply with the Rules on Authorization as
Laid Down by JAO No. 1 Embodied in Department Order No.
2004-01, Dated 24 November 2003 -------------------------------------------------- 752
Rules and Regulations on the Implementation of the Radio
Frequency Identification Tag for All Motor Vehicles Required to
be Registered Under the Land Transportation and Traffic Code,
as Amended ---------------------------------------------------------------------------------- 754
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ENERGY REGULATORY COMMISSION
Pacific Center Bldg., San Miguel Avenue, Ortigas Center, Pasig City
Resolution Authorizing Commissioner Alejandro Z. Barin to Sign
the Order for and By Authority of the Commission Denying the
Requests of Electric Cooperatives for the Exemption from the
Payment of Permit Fees Pursuant to Section 39 (A) of P.D. No. 269 -- 756
Resolution Adopting the Rules for the Calculation of the Over or
Under Recovery in the Implemetnation of Transmission Rates by
Distribution Utilities ---------------------------------------------------------------------- 757
A Resolution Lifting the Moratorium on the Filing of Rate Adjustment
Petitions/Applications by the Off-Grid Electric Cooperatives -------------- 763
A Resolution Adopting the Rules to Govern the Installation and
Relocation of Residential Electric Meters by Distribution Utilities
to Elevated Metering Centers or Individual Residential Electric
Meter to Other Elevated Service -------------------------------------------------- 765
A Resolution Amending Resolution No. 16, Series of 2008 -------------- 772
A Resolution Adopting the Rules and Procedures for the Test and
Maintenance of Electric Meters of Distribution Utilities -------------------------- 774
GOVERNMENT SERVICE INSURANCE SYSTEM
Grant of the 2008 Christmas Cash Gift -------------------------------------------------- 776
Annual Cash Dividend for 2008 -------------------------------------------------------------- 777
Policies/Terms and Conditions of the GSIS Housing Loan
Restructuring and Condonation Program --------------------------------------- 779
Single Interest Rate for the GSIS New DCS Housing Loan Program -- 780
HOME DEVELOPMENT MUTUAL FUND
The Atrium of Makati, Makati Avenue, Makati City
Penalty Condonation for Delinquent Employers -------------------------------------- 780
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HOME GUARANTY CORPORATION
335 Sen. Gil J. Puyat Avenue, Makati City
IRR for the Housing Loans Restructuring and Condonation of
Penalties Under R.A. 9507, Otherwise Known as the Socialized
and Low Cost Housing Loan Restructuring and Condonation
Program, Providing the Mechanism Therefor and for Other Purposes -- 784
INSURANCE COMMISSION
United Nations Avenue, Manila
Examination/Verification Rules and Procedures On Paid-Up Capital
and Networth Compliance -------------------------------------------------------------- 790
Foreign Exchange Remittances Abroad Relative to Reinsurance
Transactions ---------------------------------------------------------------------------------- 792
Rules and Regulatins on Reinsurance Transactions -------------------------- 793
Filing of 2008 Annual Statements -------------------------------------------------- 793
Quarterly Reports on Selected Financial Statistics -------------------------- 794
LAND TRANSPORTATION FRANCHISING AND
REGULATORY BOARD
East Avenue, Quezon city
Granting of Transport Fare Discount to All Senior Citizens -------------------------- 794
Deferment of Full Implementation of MC 2007-011 -------------------------- 796
Implementing Guidelines in the Authorization of Dealers and
Distributors of Taxi Meter Issuing Receipt -------------------------------------- 797
Modification to MC 2004-043 -------------------------------------------------------------- 799
Amendment to MC 88-017, Re : Requirements for Payment of
Annual and Supervision Fees, and MC 2005-005, Re: Penalty
for Non-Compliance with MC No. 88-017 -------------------------------------- 799
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LAND TRANSPORTATION OFFICE
East Avenue, Quezon City
Application of Fines and Penalties for Violations Committed Before
the Effectivity of DOTC D.O. No. 2008-39 Dated August 26, 2008 -- 800
Amending A.O. No. No. AHS-2008-013, Re: Rules and Regulations
Governing the Use and Issuance of Commemorative Plates -------------- 801
Amendments on the Online and Real-Time Registration and
Authentication of Certificates of Cover for Compulsory Third
Party Liability Insurance ---------------------------------------------------------------------- 801
Orange Plate for Low Speed Vehicles (LSV) and Light Electric
Vehicles (LEV) ---------------------------------------------------------------------------------- 802
Revocation of M. C. No. AHS-2008-1052 -------------------------------------------------- 803
Addendum to A. O. No. RIB-2007-012 Dated 17 May 2007 -------------- 803
Conduct of Roadworthiness Check of Buses in Garage/Terminals -------------- 804
Collection of Computer Fees -------------------------------------------------------------- 804
Collection of Computer Fees -------------------------------------------------------------- 804
Printing of Certificate of Stock Reported (CSR) -------------------------------------- 806
Lifting of Moratorium on the Transfer of Offices and Creation of
Extension Offices/DLRCs -------------------------------------------------------------- 807
Guidelines of Central Office Committee on Accreditation of
Physicians in the Resolution of Cases of Accredited Physicians -- 807
Transmittal of Communication to RCAP to LTO Accredited Physicians -- 808
Guidelines and Procedures in the Utilization of the Certificate of
Payment Authentication and Verification System (CPAVS) for
Issuance of Certificate of Stock Reported -------------------------------------- 809
Strict Compliance with the Rules on Installation of Early Warning
Device (EWD) ---------------------------------------------------------------------------------- 811
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Amendment to MC No. 673-2006 on Encoding and Lifting of Alarm
of Carnapped/Recovered Motor Vehicles in the Law Enforcement
and Traffic Adjudication System (LETAS) -------------------------------------- 812
Coding Standards for the Engine Chassis-------------------------------------------------- 813
Memorandum of the BOC dated March 3, 2009, Re: CMO 7-2009 -
Electronic Transmission of the Certificate of Payment/Clearance
(e-CPC) to the LTO ---------------------------------------------------------------------- 813
LRA Electronic Registration of Transactions on Chattel Mortgage -------------- 814
Authority for LTO San Carlos City Negros Occidental District Office
to Operate Under the LEAP Program -------------------------------------------------- 815
Implementation of Operation Guidelines and Procedures for the
General Services Section (GSS) Motor Vehicle Custodian -------------- 816
Alarm on Drivers Licenses During Renewal -------------------------------------- 817
Interim Procedure for Application of Fines and Penalties Per
Memorandum Dated 31 March 2009 -------------------------------------------------- 819
Certificate of Stock Reported Forms -------------------------------------------------- 820
Amendment to MC-AHS-2008-1012 on the Issuance of CEC Forms -- 820
Supplemental I.T. Guidelines on Emission Testing Requirements -------------- 821
MARITIME INDUSTRY AUTHORITY
PPL Bldg., U. N. Avenue, Ermita, Manila
Replacement of Certificate of Vessel Registry (CVR) with Certificate
of Philippine Registry (CPR) -------------------------------------------------------------- 823
Suspension of the Conduct of MARINA Licensure Examination for
Harbor Pilot, Major Patron, Minor Patron, Boat Captain, and
Marine Diesel Mechanic -------------------------------------------------------------- 823
Measures to Prevent and Suppress the Acts of Piracy and Armed
Robbery Against Ships Off the Coast of Somalia -------------------------- 824
Implementation of IMO Unique Company and Registered Owners
Identification Number Scheme -------------------------------------------------- 826
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Extension of Filing of Oath of Undertaking to Comply with the
Provisions of MARINA Circular 2009-01, Rules Governing the
Mandatory Marine Insurance to Cover Legal Liabilities Arising
Out Any Maritime Related Accidents -------------------------------------------------- 827
Establishment of MARINA Telephone Hotline 2985 (AZUL) -------------- 828
Legalization of Unregistered Motor-Bancas Operating in the
Philippine Waters ------------------------------------------------------------------------------ 831
License Plate Requirement for Shipyards, Boatyards, and Ship
Repair/Shirpbreaking Yards/Shops -------------------------------------------------- 832
Omnibus Rules on the Lay-Up of Vessels -------------------------------------- 833
Rules Governing the Compliance Monitoring of Ships by Deputized
Maritime Enforcers------------------------------------------------------------------------------ 840
Supplemental Rules and Regulations for the Registration of Small
Boatbuilders ---------------------------------------------------------------------------------- 849
Revised Rules on the Issuance of Enhanced Seafarers Identifica-
tion and Record Book (SIRB) -------------------------------------------------------------- 851
METRO MANILA DEVELOPMENT AUTHORITY
MMDA Bldg., EDSA, Makati City
Prescribing the No Physical Contact Policy of MMDA in Apprehen-
ding Traffic Violators in Metro Manila thru the Use and
Recording of Digital Camera and/or New Technologies Used in
Capturing Images on Trial Basis for a Period of Ninety Days -------------- 851
Prescribing Guidelines and Standards for the Establishment of
Uniform Newspaper Racks to be Utilized by Newspaper Dealers
and Vendors in Metro Manila, and Regulating its Operations thru
the Coordinative Efforts of MMDA and Respective LGUs -------------- 854
NATIONAL ELECTRIFICATION ADMINISTRATION
NIA Road, Government Center, Diliman, Quezon City
Additional Qualification Requirements for Candidate to the EC
Board of Directors (BODS) and Officer/s of the Board -------------------------- 856
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Addendum to NEA Memorandum No. 2008-010 on the Revised
Guidelines for Offices and Employees Representation Allowance
and an Unnumbered NEA Memorandum on the Grant of Rice
Allowance for EC officials and Employees ------------------------------------- 857
NATIONAL TELECOMMUNICATIONS COMMISSION
BIR Road, East Triangle, Diliman, Quezon City
Guidelines for the Recognition of GMDSS Radio Certificates
Issued By or Under the Authority of Another Party in
Accordance with Regulation 1/10 of the STCW Convention ------------- 858
Implementing Guidelines on Developing Reference Access Offers ------------- 860
OFFICE OF THE OMBUDSMAN
Agham Road, Government Center, North Triangle, Diliman, Quezon City
Revised Guidelines Governing Access to SALNs Filed with the
Ombudsman --------------------------------------------------------------------------------- 879
OFFICE OF THE PRESIDENT
Malacaan Palace
Mandating the Presidential Task Force on Climate Change to
Develop the National Climate Change Framework, Directing the
Task Group on Information to Develop and Coordinate a National
Information, Education and Communications Program, and
Directing the Presidential Adviser on Climate Change to Review
Government Climate Change Programs and Official Develop-
ment Assistance Projects ------------------------------------------------------------- 882
Assigning Number 17 as (PROTOCOL) License Plates to Motor
Vehicles Used by Metropoitan Trial Court, Metropolitan Trial
Court in the Cities (MTCC), Municipal Trial Court (MTC) and
Sharia Court Judges --------------------------------------------------------------------- 883
Reiterating Government Belt-Tightening ------------------------------------------------- 884
Promoting A Youth National Service ------------------------------------------------- 885
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Enhancing the Project Performance Monitoring and Evaluation System ------ 887
Reforming the No-Payment, No Periodic Examination Policy in
State Universities and Colleges and Expanding the Coverage of
the Sutdents Assistance Fund for Education -------------------------------------- 889
Clarifying the Function of the Presidential Adviser on Revenue
Enhancement to Investigate Cases in the Large Taxpayers
Units of the BIR ---------------------------------------------------------------------------------- 891
Providing Free Legal Aid for the Poor -------------------------------------------------- 892
Modifying the Nomenclature and Rates of Import Duty on Various
Products Under Section 104 of the Tariff and Customs Code of
1978 (P.D. No.1464), As Amended ------------------------------------------------- 892
Making Go Negosyo, Sagot sa Kahirapan and Entrepreneurship
As Banner Programs of the Administration and Expanding the
Composition of the Small and Medium Enterprise Development
Council into the Micro, Small and Medium Enterprise
Development Council --------------------------------------------------------------------- 894
An Order Attaching the National Youth Commission from the OP to
the DSWD----------------------------------------------------------------------------------------- 896
Adopting the Coral Triangle Initiative (CTI) National Plan of Action -------------- 896
Transferring the PRA from the DPWH to the DENR -------------------------- 899
An Order Transferring the Administrative Supervision of the SEC from the
DOF to the DTI --------------------------------------------------------------------------------- 900
Encouraging LGUs to Adopt the Techno Gabay in their Agricultural
Extension Programs and the Concerned Government Agencies
to Provide the Required Assistance for the Purpose -------------------------- 900
Strengthening and Recognizing the Philippine Accreditation Office
Attached to the DTI as the National Accreditation Body -------------- 905
Enjoining All Government Agencies, Including GOCCs, SUCs to
Support the Philippine Government Employees Associations
Public Sector Agenda --------------------------------------------------------------------- 906
Approving the 2009 Investment Priorities Plan -------------------------------------- 907
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Taking Action on Cellular Phone Complaints -------------------------------------- 908
Amending E. O. No. 607 by Transferring Attachment of the Inter-
Agency Task Force for Millenium Challenge Account from the
DOF to the OP ---------------------------------------------------------------------------------- 908
Establishing the Industry Competitiveness Fund (ICF) to Support
Power-Intensive Industries -------------------------------------------------------------- 909
Creating and Directing the Metro Manila Inter-Agency Committee
on Informal Settlers to Plan, Coordinate and Implement, in Coor-
dination with Concerned Government Agencies, A Comprehen-
sive Shelter Program for Informal Settlers Affected by Govern-
ment Priority Infrastructure Projects those Living in Danger
Areas Within Metro Manila -------------------------------------------------------------- 911
Creating Two Separate Offices, the Intelligences Group and the
Enforcement Group, from the Intelligence and Enforcement
Group in the BOC ------------------------------------------------------------------------------ 914
Revoking E. O. No. 493 (s. 2006) Creating Inter-Agency Legal
Action Group ---------------------------------------------------------------------------------- 915
Revoking Executive Order No. 493 -------------------------------------------------- 916
Affirming the Roles of Early Childhood Care and Development
Council and the Council for the Welfare of Children -------------------------- 916
Repealing Letter of Instruction (LOI) No. 58, As Amended, Limiting
the Hectarage for Banana Export Plantation to 26,250 Hectares-------------- 918
Adopting the First Tranche of the Modified Salary Schedule of
Civilian Personnel and Base Pay Schedule of Military and
Uniformed Personnel in the Government, as Well as the
Modified Position Classification System Pursuant to Senate
House of Representatives Joint Resolution No. 4, S. 2009 -------------- 919
Modifying the Rates of Duty on Certain Imported Articles as
Provided for Under the Tariff and Customs Code of 1978, As
Amended, In Order to Implement the Commitment to Reduce
the Tariff Rates on Ninety Percent (90%) of the Products in the
Normal Track to Zero with Flexibility Under the AKFTA--------------------------- 923
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OVERSEAS WORKERS WELFARE ADMINISTRATION
OWWA Center, F.B. Harrison St., cor. 7th St., Pasay City
Amendment to MOI No. 001, Guidelines and Procedures for the
Implementation of th Filipino Expatriate Livelihood Support Fund
for Displaced Overseas Workers due to Global Economic Crisis -- 925
Providing for the Implementing Guidelines of the Comprehensive
Pre-Depeparture Educaton Program for Household Service Workers -- 926
Providing for the Implementing Guidelines of the Pre-Departure
Orientation Seminar for Canada-Bound Workers -------------------------- 927
Establishing an OFWs Medical Rehabilitation Program at the
Secretariat for Mentally III and Physically Disabled Workers and
Prescribing Its Implementing Mechanics -------------------------------------- 928
PHILIPPINE HEALTH INSURANCE CORPORATION
Citystate Centre, 709 Shaw Boulevard, Pasig City
2009 Revised Inpatient Benefit Schedule -------------------------------------------------- 934
Revised Value Scale for 2009 with Additional Procedures -------------------------- 941
MLhuiller Sendout Form as proof of Premium Payments -------------------------- 943
Accreditation of Hospital-based Out-Patient Clinic like Free
Standing Dialysis Clinics (FSDCs) and Ambulatory Surgical
Clinics (ASCs) ---------------------------------------------------------------------------------- 944
Relative Value Scale Codes for Processing of Directly Observed
Treatment Short-course Package Claim -------------------------------------- 944
Coding of Claims for Severe Acute Respratory Syndrome (SARS)
Package and Avian Influenza (Bird Flu) Package -------------------------- 945
Revised Case Type Classification for 2009 -------------------------------------- 946
Amendment to the Transitory Provision of PHIC Circular No. 40, s.
2000, re Implementing Guidelines for Outpatient Consultation
and Diagnostic Package under the Medicare Para sa Masa
(Sponsored) Program ---------------------------------------------------------------------- 951
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Coverage for P100 Drugs and Medicines for Eligible Sponsored Members -- 952
Amendment to PhilHealth Circular 30, s. 2004 on Conditions to
Qualify a Hospital for Initial Accreditation which has not
Operated for at Least Three (3) Years -------------------------------------------------- 954
Guidelines on Downgrading, Closure/Cease and Desist Operation
of Institutional Health Care Providers -------------------------------------------------- 955
Single Employer Registration Process (SERP) -------------------------------------- 957
Re-naming the Non-Paying Program as Lifetime Member Program -------------- 958
PhilHealth Coverage for Confirmed Cases of Novel Influenza
A (H1N1) in Humans ---------------------------------------------------------------------- 958
PHILIPPINE NATIONAL POLICE
Camp Crame, Quezon City
Letters of Instructions 02/09 Unit Crime Periodic Report (UCPER) -------------- 962
Rules and Procedures in the Selection of PNP Personnel for
Secondment, Detail to International Oganizations, Peacekeeping
Missions, Amending PNP MC No. 2007-012, and for Other Purposes -- 972
Guidelines on the Processing of Request for Laboratory Exami-
nation on Seized/Confiscated Dangerous Drugs Controlled
Precursors and Essential Chemicals Instruments/Paraphernalia,
Laboratory Equipment and Drug Testing on Arrested Offenders -------------- 980
PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION
POEA Bldg., Ortigas Avenue cor EDSA, Mandaluyong City
Cross Country Employment Among OFWs While Still Onsite -------------- 984
Precautionary Measures Against Mexican Swine Flu -------------------------- 985
Requiring All Manning Agencies to Give a Weekly Update of the
Effect of the Global Crisis -------------------------------------------------------------- 986
Additional Guidelines on the Recruitment and Deployment of
Filipino Workers to Canada -------------------------------------------------------------- 987
TABLE O F CONTENTS
XXXV
Guidelines for the Recruitment and Deployment of Filipino Nurses
(Kangoshi) and Caregivers (Kaigofukushishi) for Japan on a
Government-to-Government Arrangements -------------------------------------- 988
Substitution of Employment Contracts -------------------------------------------------- 992
PHILIPPINE PORTS AUTHORITY
Marsman Bldg., 22 Muelle De San Francisco, Gate 1 South Harbor, Port Area, Manila
20% Discounts for Senior Citizens and Students on Passenger
Terminal Fees in All PPA Ports -------------------------------------------------- 993
Tariff Adjustment on Cargo-Related Charges for Foreign Containe-
rized and Non-Containerized Cargoes at SH and MICT -------------------------- 994
Adjusted Rates for Rental/Hiring of Survey Boat, Equipment and Personnel- 994
Amendment to PPA Finance Memorandum Order Number 11-2006
entitled Guidelines in Setting Up Allowance for Doubtful Accounts -- 995
Amendment to Article III (Guidelines in the Conduct of Public
Bidding) of PPA Administrative Order No. 01-2006 -------------------------- 997
Preferential Rental Rate of P35.55/sq.m./mo. for Slip 0 Areas,
PMO North Harbor ------------------------------------------------------------------------------ 997
Amendment to PPA M. O. No. 03-2009 Entitled Compromise
Rental Rates on Lands at Manila North Harbor-------------------------------------- 998
Adjustment of Conversion Rate Used in the Computation of Vessel
Charges on Foreign Containerized Cargoes at MICT and South Harbor -- 999
Guidelines for Foreign Vessels Intending to Lay-Up in the Different
PPA Administered Ports ---------------------------------------------------------------------- 1000
Guidelines on the Management and Operation of the PPA-
Educational and Sports Complex (PPA-ESC) -------------------------------------- 1003
Amending Item A, Table 1, Annex E of PPA Memorandum Order
No. 31-2009 Regarding Quotation of Rental Rates and Charges
for the Use of PPA-ESC Recreational Facilities, and Sauna and
Salon Services ---------------------------------------------------------------------------------- 1004
XXXVI
TABLE O F CONTENTS
Adjustment of Conversion Rate in the Computation of Vessel
Charges on Foreign Containerized Cargoes at MICT and South Harbor -- 1004
PHILIPPINE POSTAL CORPORATION
3/F, Central Office Bldg., Liwasang Bonifacio, Manila
Procedures in the Receipt, Processing, Delivery and Collection of
EMS Event Information of Items Sent to the Provincial Post Offices -- 1004
Regulation in the Acceptance of International Mails -------------------------- 1005
Operating Procedures of Express Mail Service Office (EMSO-
CMEC) as an Inward Office of Exchange and Delivery Office for
the EMS Committed Door to Door Delivery Service in view of
the Implementation of the EMS Pay for Performance Plan -------------- 1006
Shortening the Validity Period of Postal ID from Five Years to Three Years --- 1018
Limit of Domestic Money Order Issuance-------------------------------------------------- 1019
Mandatory Use of CN 22 and CN 23 -------------------------------------------------- 1020
Treatment and Return of Registry Return Receipts (RRR) -------------------------- 1021
Stop Payment for Lost Blank Money Order Forms -------------------------- 1024
SECURITIES AND EXCHANGE COMMISSION
SEC Bldg., EDSA, Greenhills, Mandaluyong City
Amended Rules Governing Pre-Emptive and Other Subscription Rights
and Declaration of Stock and Cash Dividends of Corporations
Whose Securities are Registered Under the Revised Securities Act
or Listed in the Stock Exchange -------------------------------------------------------------- 1024
Submission of Trust Fund Valuation and Compliance Report of Pre-
Need Companies ------------------------------------------------------------------------------ 1025
Supplement to the Requirements on the Submission of Trust Fund
Valuation and Compliance Report of Pre-need Companies -------------- 1029
Amendment to the Consolidated Scale of Fines (SEC M.C. No. 6, s. 2005) - 1030
Penalty for Failure to Comply with the Commissions Directive to
Participate in the Corporate Governance Survey -------------------------- 1031
XXXVII
TABLE O F CONTENTS
SECURITY AGENCIES AND GUARDS SUPERVISION DIVISION (PNP)
Policy Guidelines and Procedures for the Conversion of the Current
Two-Year License To Operate (LTO) Renewal Cycle to Five-Year
Cycle with Options------------------------------------------------------------------------------ 1032
SUGAR REGULATORY ADMINISTRATION
North Avenue, Diliman, Quezon City
Lifting the Suspension of the Verificaton of A Sugar Quedans -------------- 1035
Conversion of C Sugar Produced During Crop Year 2008-2009 to
B Sugar ------------------------------------------------------------------------------------------ 1035
Moratorium on the Payment of Penalties for Homeless D, Dx,
and De Sugar ------------------------------------------------------------------------------ 1037
INDEX ------------------------------------------------- 1039
APRIL - JUNE 2009 NATIONAL ADMINISTRATIVE REGISTER 547
BANGKO SENTRAL NG PILIPINAS
Date Filed: 13 April 2009
Circular No. 647, s. 2009
Amendment to Circular No. 619, dated 22 August 2008, on the 20% Final
Withholding Tax on Overnight Reverse Repurchase Transactions with the BSP
Pursuant to Monetary Board Resolution No. 348 dated 26 February 2009, in relation to
Monetary Board Resolution Nos. 1301 and 1395, dated October 2 and 23, 2008, respec-
tively, the overnight reverse repurchase transactions (RRPs) with the BSP from January 1,
2008 to August 22, 2008 shall be covered by the following guidelines, thereby amending
tems 2 and 3 of Circular No. 619, to wit:
2) With respect to the overnight RRPs from January 1, 2008 to August 22,
2008
1
, the concerned banks/quasi-banks shall reimburse the BSP the amount
equivalent to 40% of the 20% FWT due thereon. However, banks/quasi-banks
which choose to pay the whole 20% FWT shall remit the amount equivalent to
the 60% balance thereof to the BR, through the BSP as withholding agent. n
both cases, payment of the FWT to the BSP shall be made on or before April 3,
2009, either in full or in three (3) installments; provided, that a bank/quasi-bank
which intends to pay in installments shall remit the first payment on or before
March 6, 2009, the second on or before March 20, 2009 and the last on or
before April 3, 2009; provided, further, that payments due shall be deducted
from the RDDA of concerned banks/quasi-banks. The BSP shall issue the
certificate of final withholding tax reflecting the amount of the FWT paid.
3) Concerned banks/quasi-banks shall issue the corresponding debit
authority to the BSP to cover the 20% FWT on their overnight RRPs with the
BSP as mentioned in tem 2 above.
This Circular shall take effect immediately. t shall be published in a newspaper of
general circulation.
Adopted: 3 March 2009
FOR THE MONETARY BOARD:
(SGD.) AMANDO M. TETANGCO, JR.
Governor
--o0o--
Amendments to the Guidelines on the BSP Rediscounting Facility
1 Interest income payments from January 1, 2008 to August 26, 2008.
NATIONAL ADMINISTRATIVE REGISTER VOLUME 20/2
548
Pursuant to Monetary Board (M.B.) Resolution No. 246 dated 12 February 2009, the
provisions of Subsections () X 268.3, X 269.2, X 269.4 and X 269.6 of the Manual of
Regulations for Banks, covering the guidelines on the Bangko Sentral ng Pilipinas (BSP)
Rediscounting Facility are hereby amended as follows:
x x x
X 268.3 Approval/Renewal of the Line. The approval/renewal of the Line
shall be subject to the banks full compliance with the following requirements:
x x x
d.NPL ratio lower or equal to the industry average adjusted upward by ten
percent based on the latest available report of the SDC, or the allowable NPL
ratio approved by the MB;
x x x
Banks with approved rediscounting line shall, thereafter, submit the following:
x x x
b. tem b is deleted
x x x
X269.2 Eligible Papers and Collaterals . The BSP shall accept credit
instruments covering all economic activities except the following:
x x x
The following paragraph is hereby added after tem a.(2) and immediately before
tem b to read as follows:
The outstanding National Food Authority papers that a bank can rediscount
shall not exceed the rediscounting banks single borrowers limit (25% of its
net worth) or P3 billion, whichever is lower.
x x x
X 269.4 Loan Value - The loan value of all eligible papers shall be 90% of the
outstanding balance of the borrowers credit instrument but not higher than
70% of the appraised value of the underlying collateral.
x x x
X269.6 Rediscount/Lending Rates and Liquidated Damages. The rediscount
rates for peso, dollar and yen loans shall be as follows:
a. Peso Rediscounts Based on the applicable BSP overnight reverse
repurchase (RRP) rates less 50 basis points
x x x
Effectivity. This Circular shall take effect on 02 March 2009.
Governor
--o0o--
Guidelines Governing the Issuance of Electronic Money (e-money) and the
Operations of Electronic Money Issuers (EMI) in the Philippines
The Monetary Board, in its Resolution No. 324 dated 26 February 2009, approved the
following guidelines governing the issuance of electronic money (e-money) and the opera-
tions of electronic money issuers (EM) in the Philippines.
SECTION 1. Declaration of Policy - t is the policy of the Bangko Sentral ng Pilipinas
(BSP) to foster the development of efficient and convenient retail payment and fund trans-
fer mechanisms in the Philippines. The availability and acceptance of e-money as a retail
payment medium will be promoted by providing the necessary safeguards and controls to
mitigate the risks associated in an e-money business.
SECTION 2. Definition - E-Money shall mean monetary value as represented by a
claim on its issuer, that is -
a. electronically stored in an instrument or device;
b. issued against receipt of funds of an amount not lesser in value than the monetary value
issued;
c. accepted as a means of payment by persons or entities other than the issuer;
d. withdrawable in cash or cash equivalent; and
e. issued in accordance with this Circular.
Electronic money issuer shall be classified as follows:
a. Banks (hereinafter called EM-Bank)
550
b. Non-bank financial institutions (NBF) supervised by the BSP (hereinafter called EM-
NBF); and
c. Non-bank institutions registered with the BSP as a money transfer agent under Section
4511N of the Manual of Regulations for Non-Bank Financial nstitutions (MORNBF) (here-
inafter called EM-Others).
For purposes of this Circular:
1. Electronic instruments or devices shall mean cash cards, e-wallets, accessible via
mobile phones or other access device, stored value cards, and other similar products;
2. E-money issued by banks shall not be considered as deposits.
SECTION 3. Prior BSP Approval - Banks planning to be an EM-Bank shall apply in
accordance with Section X621 of the MORB relating to the guidelines on electronic bank-
ing services and with Section X 169 of the MORB on outsourcing of banking functions,
when applicable.
NBFs planning to be an EM-NBF shall likewise comply with the requirements of
Section X621 of the Manual of Regulations for Banks (MORB) which shall be made appli-
cable to them and with Section 4190Q/S/P/N of the MORNBF, when applicable.
Non-bank institutions planning to be an EM-Others shall register with the BSP as a
money transfer agent in accordance with the provisions of Section 4511N of the MORNBF.
To qualify for registration, they have to comply with the requirements detailed in Section 5
of this Circular. n case the non-bank institution is already registered with the BSP as a
money transfer agent, it is required to meet the additional requirements mentioned under
said section to qualify as EM-others.
SECTION 4. Provisions for All EMIs - The following provisions are applicable to all
EMs:
A. E-money instrument issued shall be subject to aggregate monthly load limit of P100
thousand unless a higher amount has been approved by BSP. n case an EM issues
several e-money instruments to a person (e-money holder), the total amount loaded in all
the e-money instruments shall be consolidated in determining compliance with the aggre-
gate monthly load limit.
B. EMs shall put in place a system to maintain accurate and complete record of e-money
instruments issued, the identity of e-money holders, and the individual and consolidated
balances thereof. The system must have the capability to monitor the movement of e-
money transactions and link e-money instruments issued to common e-money holders.
The susceptibility of a system to intentional or unintentional misreporting of transactions
and balances shall be sufficient ground for imposition by the BSP of sanctions, as may be
applicable.
C. E-money may only be redeemed at face value. t shall not earn interest nor rewards and
other similar incentives convertible to cash, nor be purchased at a discount. E-money is
not considered a deposit hence it is not insured with the Philippine Deposit nsurance
Corporation.
D. EMs shall ensure that e-money instruments clearly identify the issuer who is ulti-
mately responsible to the e-money holders. This shall be communicated to the client who
shall acknowledge the same in writing.
E. t is the responsibility of EMs to ensure that their distributors/e-money agents comply
with all applicable requirements of the Anti-Money Laundering|laws, rules and regulations.
F. EMs shall provide an acceptable redress mechanism to address the complaints of its
customers.
G. EMs shall disclose in writing and its customers shall signify agreement to the informa-
tion embodied in item C above upon their participation in the e-money system. n addition,
it shall provide clear guidance in English and Filipino on consumers right of redemption,
including conditions and fees for redemption, if any. nformation on available redress proce-
dures for complaints together with the address and contact information of the issuer shall
also be provided.
H. Prior to the issuance of e-money, EMs should ensure that the following minimum
systems and controls are in place:
- Sound and prudent management, administrative and accounting procedures
and adequate internal control mechanisms;
- Properly-designed computer systems which are thoroughly tested prior to
implementation;
- Appropriate security policies and measures intended to safeguard the integrity,
authenticity and confidentiality of data and operating processes;
- Adequate business continuity and disaster recovery plan; and
- Effective audit function to provide periodic review of the security control
environment and critical systems.
. EMs shall provide the Supervisory Data Center of the Supervision and Examination
Sector, BSP, quarterly statements containing, among others, information on investments,
volume of transactions, total outstanding e-money balances, and liquid assets in such
form as may be prescribed later on.
J. EMs shall notify BSP in writing of any change or enhancement in the e-money facility
thirty (30) days prior to implementation. f said change or enhancement requires prior BSP
approval, the same shall be evaluated accordingly. Any change or enhancement that shall
expand the scope or change the nature of the e-money instrument shall be subject to prior
approval of the Deputy Governor, Supervision and Examination Sector. These changes or
enhancements may include the following:
1. Additional capabilities of the e-money instrument/s, like access to new
channels (e.g., inclusion of internet channel in addition to merchant Point of
Sale terminals);
552
2. Change in technology service providers and other major partners in the e-
money business (excluding partner merchants), if any; and
3. Other changes or enhancements.
SECTION 5. Provisions for EMI-Others - EM-Others shall comply with the following
additional provisions:
A. They must be a stock corporation with a minimum paid-up capital of P100 million.
B. They shall engage only in the business of e-money and other activities related or
incidental to the business of e-money, such as money transfer/remittance. An existing
entity engaged in activities not related to the business of e-money but wishing to act as
EM-Others must do so through a separate entity duly incorporated exclusively for such
purpose.
C. They shall not engage in the extension of credit, unless it complies with the provisions
of Section 6 of this Circular.
D. To further protect the e-money holders and ensure that e-money redemptions are ad-
equately met at all times, the entity should have sufficient liquid assets equal to the
amount of outstanding e-money issued. The liquid assets should remain unencumbered
and may take any of the following forms:
1. bank deposits separately maintained for liquidity purposes;
2. government securities set aside for the purpose; and
3. such other liquid assets as the BSP may allow.
Records pertaining to the above liquid assets shall be made available for inspection
by BSP at any time and the confidentiality of bank deposits and government securities
shall be waived.
E. The BSP shall be allowed access to review the e-money systems and databases of the
entity. Whenever the circumstances warrant, such access shall extend to the agents,
partners, service providers or outsourced entities of the EM-Others in view of their partici-
pation in the e-money business.
F. EM-Others shall submit to the Supervisory Data Center of the Supervision and Exami-
nation Sector, BSP, its audited financial statements (AFS) within thirty (30) days from date
of report of its external auditors.
SECTION 6. QB License Requirement - EM-NBFs and EM-Others that engage in
lending activities must secure a quasi-banking license from the BSP.
SECTION 7. Sanctions - Monetary penalties and other sanctions for the following
violations committed by EM-Banks, EM-NBFs, and EM-Others shall be imposed:
Nature of Violation/Exception Sanctions/Penalties
1. ssuing e-money without prior BSP approval Applicable penalties under Section 36
& 37 of R.A. No. 7653;
Watchlisting of owners/partners/
principal officers
2. Violation of any of the provisions of R.A. No. Applicable penalties prescribed under
9160 (Anti-Money Laundering Law of 2001 as the Act.
amended by R.A. No. 9194) and its
implementing rules and regulations
3. Violation/s of this Circular Penalties and sanctions under the
abovementioned laws and other
applicable laws, rules, and regulations
n addition, the susceptibility of a system to intentional or unintentional misreporting of
transactions and balances shall be sufficient ground for appropriate BSP action or imposi-
tion of sanctions, whenever applicable.
SECTION 8. Amendments to MORNBFI - The provisions of Section X621 and related
subsections of the MORB on electronic banking are hereby incorporated as Section 4621
Q/S/P/N and related subsections of the MORNBF.
SECTION 9. Transitory Provisions - EM-Banks, EM-NBFs, and EM-Others granted
an authority to issue e-money prior to this Circular may continue to exercise such author-
ity, provided that it shall submit to the BSP, within one (1) month from the effectivity of this
Circular, a certification signed by the President or Officer with equivalent rank and function
that it is in compliance with all the applicable requirements of this Circular. Otherwise,
they are required to submit within the same period the measures they will undertake, with
the corresponding timelines, to conform to the provisions that they have not complied with
subject to BSP approval.
SECTION 10. Effectivity Clause - This Circular shall take effect fifteen (15) days
following its publication in the Official Gazette or any newspaper of general circulation.
Governor
--o0o--
554
Circular No. 650
Authority of Thrift Banks to Issue Foreign Letters of Credit (LCs)
and Pay/Accept/ Negotiate Import/Export Drafts/Bills of Exchange
Pursuant to Monetary Board Resolution No. 283 dated 19 February 2009, the Manual
of Regulations for Banks (MORB) is hereby amended, as follows:
SECTION 1. Subsec. 2101.7 on authority of thrift banks to issue foreign letters of
credit (LCs) and pay/accept/negotiate import/export drafts/bills of exchange is hereby
added and shall read, as follows:
Subsec. X2101.7 Authority of thrift banks to issue foreign letters of credit
(LCs)) and pay/accept/negotiate import/export drafts/bills of exchange.
With prior Monetary Board approval, thrift banks may be authorized to issue
foreign letters of credit (LCs) and pay/accept/negotiate import/export drafts/
bills of exchange, subject to compliance with the following conditions (at the
time of application unless otherwise indicated):
a. Minimum capital requirement of P1.0 billion;
b. Ten percent (10%) risk-based capital adequacy ratio (CAR);
c. CAMELS composite rating not lower than 3, with Management component
score not lower than 3 in the latest examination of the bank;
d. Risk management system appropriate to its operations, characterized by
clear delineation of responsibility for risk management, adequate risk
measurement system, appropriately structured risk limits, effective internal
control system and complete, timely and efficient risk reporting system;
e. Articles of incorporation which shall include among its powers or purposes,
the issuance of foreign LCs and payment/acceptance/negotiation of import/
export drafts/bills of exchange (which may be submitted any time prior to
engaging in said activities);
f. Correspondent banking relationship or arrangement with reputable foreign
banks (which should be in place prior to engaging in said activities);
g. Appointment of the officer with actual experience of at least two (2) years as
in-charge or at least as assistant in-charge of import and export financing
operations in a universal/commercial bank who will be in-charge of the said
operations (prior to engaging in said activities);
h. Appointment of bank personnel with actual experience and/or training of at
least six (6) months in import and export financing operations in a universal/
commercial bank who will handle the said operations (prior to engaging in said
activities);
i. No net weekly regular and liquidity reserve deficiencies during the twelve (12)
week period immediately preceding the date of application;
j. No deficiency in asset and liquid asset cover for FCDU liabilities for three (3)
months immediately preceding the date of application;
k. No deficiency in liquidity floor requirement for government funds held during
the twelve (12) week period immediately preceding the date of application;
l. No float items outstanding for more than sixty (60) calendar days in the Due
From/To Head Office/Branches/Offices and Due from BSP accounts
exceeding 1% of the total resources as of end of month preceding the date of
application;
m. No unbooked valuation reserves:
n. Compliant with ceilings on loans, other credit accommodations and
guarantees to directors, officers, stockholders, and their related interests (DOSR)
for the quarter immediately preceding the date of application;
o. Compliant with the single borrowers loan limit (SBL);
p. Compliant with the limit on real estate and improvements, including bank
equipment;
q. No uncorrected findings of unsafe and unsound banking practices;
r. Generally compliant with banking laws, rules and regulations, orders or
instructions of the Monetary Board and/or BSP Management; and
s. No past due obligations with the BSP or with any financial institution.
SECTION 2. Subsec. 2101.8 on application for authority to issue foreign letters of
credit and pay/accept/negotiate import/export drafts/bills of exchange is hereby added,
and shall read as follows:
Subsec. 2101.8 Application for authority to issue foreign letters of credit
(LCs) and pay/accept/negotiate import/export drafts/bills of exchange.
An application for authority to issue foreign LCs and pay/accept/negotiate import/
export drafts/bills of exchange shall be signed by the president of the bank or
officer of equivalent rank and shall be accompanied by a certified true copy of
the resolution of the banks board of directors authorizing the application.
This Circular shall take effect fifteen (15) days following its publication either in the
Official Gazette or in a newspaper of general circulation.
556
Governor
--o0o--
Circular Letter No. CL-2009-019
Documentary Stamp Tax on the Sale,
Barter or Exchange of Shares of Stock
Pursuant to the Memorandum of Agreement (MOA) dated March 17, 2009 between
the Department of Finance and the Philippine Stock Exchange, nc. (PSE), with the
conformity of the Bureau of nternal Revenue (BR) (copy attached*), all authorized agent
banks (AABs) are hereby informed that:
. Collection of DST
From March 20, 2009 to June 30, 2009 or any earlier date of enactment by Congress
of the Philippines (Congress) of the Documentary Stamp Tax (DST) Law (Period of
Coverage), brokers-taxpayers shall file the DST returns and remit to the BR through any
of the AABs the DST at the rate of seventy-five centavos (P0.75) for every two hundred
pesos (P200.00) or fractional part thereof of the par value on the sale of shares listed and
traded through the PSE (DST on Secondary Trading). Further, in the case of shares of
stock without par value, the amount of DST shall be twenty-five percent (25%) of the DST
paid upon the original issue of said shares.
The total DST on Secondary Trading collected by the AABs shall be placed in a
separate AAB account to be disposed of in accordance with the MOA. The AABs and
brokers-taxpayers shall maintain a record of all the names of the brokers-taxpayers and
the corresponding DST amounts that have been remitted during the Period of Coverage.
The brokers-taxpayers shall agree with their respective AABs on the other terms of the
separate account, including the interest that will be earned by the amount deposited therein.
. Authority to Refund DST
n the event that by June 30, 2009, Congress does not pass a new law exempting from
DST the sale of listed shares through the PSE or the law that is passed does not provide
for any retroactive effect, the AABs shall immediately turn over the total collections of DST
on Secondary Trading to the BR, including interest accruing on said collections.
n case a new law is passed on or before June 30, 2009, exempting from DST the sale
of listed shares through the PSE with retroactive application from March 20, 2009, AABs
are duly authorized under the MOA to refund the DST on Secondary Trading collected
during the Period of Coverage, including any interest earned, to the respective brokers-
taxpayers, as follows:
a. The PSE shall issue a circular (PSE Circular) announcing that the new law has been
passed by Congress and that pursuant to the MOA, the brokers-taxpayers may file their
claims for refund with the AABs concerned;
* Text Available at Office of the National Administrative Register, U.P. Law Complex,
Diliman, Quezon City
b. The brokers-taxpayers shall submit a letter to the AABs to claim a refund of the DST on
Secondary Trading that they remitted during the Period of Coverage, accompanied by a
copy of the PSE Circular duly certified by the PSE; and
c. mmediately upon receipt of the claim for refund, AABs shall refund the DST on Second-
ary Trading, together with any interest earned thereon, to the respective brokers-taxpay-
ers.
. Liability for DST
n accordance with law and regulations, the concerned broker-taxpayer shall be solidarily
liable and responsible for any deficiency DST on the sale of listed shares through the PSE.
V. Further Action and Cooperation
The Department of Finance and the PSE agree to take any and all actions that may be
necessary to carry out the purposes of the MOA.
For your guidance and strict compliance.
(SGD.) NESTOR A. ESPENLLA, JR.
Deputy Governor
--o0o--
Date Filed: 08 June 2009
Circular No. 651
Extension of the Effectivity of Circular No. 629 on the Treatment of
Net Unrealized Losses in the FCDU/EFCDU Book for Purposes of Determining
Compliance with the FCDU/EFCDU Asset Cover Requirement
The Monetary Board in its Resolution No. 483 dated 26 March 2009, approved the
extension of the effectivity of Circular No. 629 dated 31 October 2008, for another six-
month period until 30 September 2009.
This Circular shall take effect on 1 April 2009.
Adopted: 1 April 2009
Governor
--o0o--
558
Circular No. 652
Amendments to Section 7 (Additional Requirement)
and Annex D of Circular No. 471 dated 24 January 2005 on the Sale of
Foreign Exchange by Foreign Exchange Dealers/Money Changers
Text Available at Office of the National Administrative Register,
U.P. Law Complex, Diliman, Quezon City
Adopted: 5 May 2009
--o0o--
Circular No. 653
Guidelines in the Preparation of Audited
Financial Statements for Trust Institutions
The Monetary Board, in its Resolution No. 601 dated 23 April 2009, approved the
guidelines in the preparation of audited financial statements (AFS) for trust institutions for
the financial reporting period beginning 1 January 2008.
SECTION 1. Amendments to the Manual of Regulations for Banks (MORB) -
(1)Section X 421 Books and Records and Subsection X426.2 External Audit
of the MORB are hereby amended to read as follows:
a. Section X421 Books and Records
The banks trust department or investment management department shall keep
books and records on trust, other fiduciary and investment management
accounts separate and distinct from the books and records of its other
businesses and shall follow the Financial Reporting Package for Trust
nstitutions prescribed by the BSP.
xxx xxx xxx
(b) Subsection X426.2 External Audit
The trust and other fiduciary business and investment management activities
of a bank shall be included in the annual financial audit by independent external
auditors required under Subsection X166.1
x x x x x x x x x
The audit of the trust/investment management department of a bank authorized
to engage in trust and other fiduciary business/investment management activities
shall be covered by a separate supplemental audit report to be submitted to the
banks board of directors and to the BSP within the prescribed period containing,
among other things, the complete set of financial statements of the trust/
investment management department of a bank prepared in accordance with
the provisions of Subsection X425.3 together with the other information required
by the BSP to be submitted under Subsection X166.1: Provided, That a
reconciliation statement of the balance sheet in the AFS and the Financial
Reporting Package for Trust nstitutions shall be prepared for each of the general
categories of contractual relationships (i.e., UTF-trust, institutional-trust, and
individual-trust; other fiduciary; institutional-agency, and individual- agency; and
special purpose trust) of the trust/investment management department of a
bank with its clients following the format in Annex 1*.
(2) Subsection X425.3 of the MORB is hereby added as follows:
Subsection X425.3 Audited Financial Statements (AFS). The trust/
investment management department of a bank shall adopt the provisions of the
Philippine Financial Reporting Standards (PFRS)/Philippine Accounting
Standards (PAS) in all respect, for purposes of preparing the AFS of its trust
and other fiduciary and investment management activities. The following
guidelines shall likewise be observed in the preparation of the AFS:
(a) The provisions of PFRS/PAS shall be adopted effective the annual financial
statements beginning 1 January 2008;
(b) A complete set of financial statements shall comprise of the following:
(1) Balance sheet as of the end of the period;
(2) ncome statement for the period;
(3) Statement of changes in accountabilities, which shall show a reconciliation
of the net carrying amount at the beginning and end of the period of the following
accounts: (i)principal; (ii)accumulated income and (iii)net unrealized gains/
(losses) on available for sale financial assets, separately disclosing the changes
in each of the foregoing accounts;
(4) Notes, which shall comprise of a summary of significant accounting
policies and other disclosure requirements provided under PFRS/PAS: Provided,
That for purposes of complying with the disclosure of the nature and extent of
risks arising from financial instruments as required under PFRS 7, disclosure
statements may be made based on the general categories of contractual
relationships (i.e., UTF-trust, institutional-trust, and individual-trust; other
fiduciary; institutional-agency, and individual- agency; and special purpose trust)
of the trust/investment management department of a bank with its clients; and
(5) Balance sheet as at the beginning of the earliest comparative period
when a trust/ investment management department applies an accounting policy
retrospectively or when it makes a retrospective restatement of items in the
financial statements, or when it reclassifies items in the financial statements.
(c) The balance sheet, income statement and statement of changes in
accountabilities shall be presented for each of the general categories of
560
contractual relationships (i.e., UTF-trust, institutional-trust, and individual-trust;
other fiduciary; institutional-agency, and individual- agency; and special purpose
trust) of the trust/investment management department of a bank with its clients;
(d) Comparative information for periods before 1 January 2008 need not be
presented in the AFS for the financial reporting period beginning 1 January
2008:Provided, That disclosure statements on the end-2007 balances of total
assets of the general categories of contractual relationships of the trust/
investment management department of a bank with its clients prepared based
on the Generally Accepted Accounting Principles (GAAP) previously applied,
shall be presented in the notes to financial statements: Provided, further, That
comparative periods shall be presented in the AFS for the financial reporting
period beginning 1 January 2009 and thereafter.
(e) The following transitory rules and regulations shall govern the accounting
treatment of specific items for purposes of preparing the AFS for the financial
reporting period beginning 1 January 2008 :
(1) The provisions of PFRS/PAS shall only be applied to accounts
outstanding as of end-December 2008;
(2) Reclassification of previously recognized financial instruments shall
no longer be allowed except as allowed under existing regulations;
(3) The fair value of Real and Other Properties Acquired (ROPA) and
nvestment Properties as of the date of transition to PFRS/PAS may be used
as the deemed cost of said properties as of that date: Provided, That said
ROPA and nvestment Properties shall be subsequently accounted for in
accordance with the provisions of the Financial Reporting Package for Trust
nstitutions
(3) Subsection X425.3 Post-Bond Flotation Report of the MORB is hereby
renumbered as X425.4.
SECTION 2. Amendments to the Manual of Regulations for Non-Bank Financial
Institutions (MORNBFI). Section 4421Q and Subsections 4425Q.3 and 4426Q.2 of the
MORNBF shall likewise be amended in accordance with the foregoing provisions.
SECTION 3. Submission of AFS of Trust Institutions. The deadline for filing the AFS
of trust institutions for the financial reporting period beginning 1 January 2008 with the BSP
as prescribed under Subsection X426.2 of the MORB is hereby extended up to 30 June
2009,in view of the longer time period needed to prepare the AFS due to the adoption of the
new accounting standards.
This Circular shall take effect fifteen (15) calendar days following its publication either
in the Official Gazette or in a newspaper of general circulation.
Adopted: 5 May 2009
(SGD.) ARMANDO L. SURATOS
Officer In-Charge
--o0o--
Circular No. 654, s. of 2009
Amendment of Ceilings on Loans to Subsidiaries and Affiliates
Pursuant to Monetary Board Resolution No. 573 dated 17 April 2009, allowing a sepa-
rate individual limit to loans of banks/quasi-banks to their subsidiaries and affiliates en-
gaged in energy and power generation, the provisions of the Manual of Regulations for
Banks (MORB) and the Manual of Regulations for Non-Bank Financial nstitutions
(MORBNBF) are hereby amended as follows:
Section 1. Subsections X328.5.b and 4328Q.b of the MORB and MORBNBF, re-
spectively, are hereby amended by adding a new paragraph after the first paragraph thereof,
to read as follows:
LOANS, OTHER CREDT ACCOMMODATONS AND GUARANTEES GRANTED BY
A BANK/QUAS-BANK TO TS SUBSDARES AND AFFLATES ENGAGED N ENERGY
AND POWER GENERATON CONSSTENT WTH THE MEDUM-TERM PHLPPNE
DEVELOPMENT PLAN/MEDUM-TERM PUBLC NVESTMENT PROGRAM OF THE
NATONAL GOVERNMENT DULY CERTFED AS SUCH BY THE SECRETARY OF THE
SOCO-ECONOMC PLANNNG SHALL BE SUBJECT TO A SEPARATE NDVDUAL LMT
OF TWENTY-FVE PERCENT (25%) OF THE NET WORTH OF THE LENDNG BANK/
QUAS-BANK: PROVIDED, THAT THE UNSECURED PORTON THEREOF SHALL NOT
EXCEED TWELVE AND ONE-HALF PERCENT (12.5%) OF SUCH NET WORTH: PRO-
VIDED, FURTHER, THAT THESE SUBSDARES AND AFFLATES ARE NOT RELATED
NTERESTS OF ANY OF THE DRECTOR, OFFCER, AND/OR STOCKHOLDER OF THE
LENDNG BANK/QUAS-BANK, EXCEPT WHERE SUCH DRECTOR, OFFCER OR
STOCKHOLDER STS N THE BOARD OF DRECTORS OR S APPONTED OFFCER
OF SUCH CORPORATON AS REPRESENTATVE OF THE BANK/QUAS-BANK.
Section 2. Effectivity. This Circular shall take effect fifteen (15) days following its
publication in the Official Gazette or newspaper of general circulation.
Adopted: 12 May 2009
Governor
--o0o--
562
Circular No. 655, series of 2009
One Year Suspension of Requirement on the Use of AFS Audited
by Accredited External Auditors for Banks Internal Credit Rating System
The Monetary Board, in its Resolution No. 654 dated 30 April 2009 approved the one
year suspension of the requirement under Subsection 1301.1d(6) of the Manual of
Regulations for Banks (MORB) on the use of audited financial statements (AFS) audited
by external auditors accredited/selected by the Securities and Exchange Commission
(SEC), the BSP or the nsurance Commission (C) in rating corporate borrowers with total
assets of more than P15 million for the banks internal credit rating system purposes.
This Circular shall take effect fifteen (15) calendar days following its publication either
in the Official Gazette or in a newspaper of general circulation.
Governor
BUREAU OF ANIMAL INDUSTRY
Memorandum Order No. 11, s. 2009
Lifting the Temporary Ban on the Importation of Domestic and
Wild Birds and Their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Idaho, USA
WHEREAS, based on the report submitted to the Office nternational des Epizooties
(OE) by Dr. Stan Bruntz, National Surveillance Unit Epidemiologist, last 4 November 2008,
daho declares that the H5N8 Low Pathogenic Avian nfluenza (LPA) incident in Payette
County, daho has been successfully eradicated;
WHEREAS, the cleaning and disinfection of the affected premises was completed on
29 October, 2008 and that on-going surveillance has not detected any additional cases;
WHEREAS, based on the evaluation of the Bureau of Animal ndustry (BA), the risk of
contamination from importing poultry and poultry products from daho, USA is negligible;
NOW, THEREFORE, , ATTY. ARTHUR C. YAP, Secretary of Agriculture, by the pow-
ers vested in me by law, do hereby lift the temporary ban on the importation of domestic
and wild birds and their products including poultry meat, day old chicks, eggs and semen
originating from daho, USA.
All import transactions of the above products shall be in accordance with the existing
rules and regulations of the Department of Agriculture, Bureau of Animal ndustry and
National Meat nspection Service (DA-BA-NMS).
All orders, rules and regulations or parts thereof, which are inconsistent with the pro-
visions of this order, are hereby repealed or amended accordingly.
This ORDER shall take effect immediately.
(SGD.) ATTY. ARTHUR C. YAP
Secretary
--o0o--
Temporary Ban on the Importation of FMD-Susceptible Animals,
Their Products and By-Products Originating from Egypt
--o0o--
Memorandum Order No. 13
Lifting the Temporary Ban on the Importation of Domestic
and Wild Birds and Their Products Including Poultry Meat,
Day Old Chicks, Eggs and Semen Originating from Belgium
WHEREAS, based on the report of the Federal Agency for the Safety of the Food
Chain (FASFC), Belgium declares that the H5N2 Low Pathogenic Avian nfluenza (LPA)
incident in Belgium has been successfully eradicated;
WHEREAS, the cleaning and disinfection of the affected premise was completed on
23 December, 2008 and that on-going surveillance has not detected any additional cases;
WHEREAS, based on the evaluation of the Bureau of Animal ndustry (BA), the risk of
contamination from importing poultry and poultry products from Belgium, is negligible;
564
ers vested in me by law, do hereby lift the temporary ban on the importation of domestic
and wild birds and their products including poultry meat, day old chicks, eggs and semen
originating from Belgium.
All import transactions of the above products shall be in accordance with the existing
rules and regulations of the Department of Agriculture, Bureau of Animal ndustry and
National Meat nspection Service (DA-BA-NMS).
visions of this order, are hereby repealed or amended accordingly.
Secretary
--o0o--
Temporary Ban on the Importation of Domestic and Wild Birds
and Their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Kentucky, USA
--o0o--
Date Filed: 15 May 2009
Implementation of BSE Controlled Risk Measures
on the Importation of Meat from the Netherlands
WHEREAS, the Netherlands banned the feeding of animal protein to ruminant ani-
mals since 1994;
WHEREAS, Resolution No. XX of the nternational Committee upon recommendation
of the Scientific Commission for Animal Diseases of the World Organization for Animal
Health (OE) dated May 30, 2008 recognizes The Netherlands as having a controlled Bo-
vine Spongiform Encephalopathy (BSE) risk in accordance with Chapter 2.3.13 of the OE
Terrestrial Animal Health Code;
WHEREAS, recent international guidelines set out by the OE Animal Health Code
provides for conditions under which all beef and beef products from animals of all ages
maybe safely traded;
ers vested in me by law, do hereby authorize the importation of beef from The Netherlands
with the following conditions:
1. Boneless and bone-in beef can be sourced from cattle of all ages devoid of any nerves
and other BSE-specified risk materials (SRM) shall be imported.
2. The beef, whether boneless or bone-in should come only from healthy ambulatory and
not downer cattle.
3. The age of the slaughter cattle shall be certified by the government authority.
4. The slaughter date of the cattle or the production date of the beef shall be included in the
packaging label.
All shipments into the country of beef originating from The Netherlands not complying
with these conditions shall be confiscated by DA Veterinary Quarantine Officers/nspec-
tors at all major sea/airports.
visions of this order are hereby repealed or amended accordingly.
Secretary
--o0o--
Implementation of BSE Controlled Risk Measures
on the Importation of Meat from Denmark
WHEREAS, the Danish Plant Directorate (FO-01/01) informed the feeding industry
about the prohibition on the use of meat-and-bone meal of mammalian origin as feed for
cattle and the prohibition of using animal protein derived from mammals in feed for farmed
animals in 2001;
566
WHEREAS, Resolution No. XX of the nternational Committee upon recommendation
of the Scientific Commission for Animal Diseases of the World Organization for Animal
Health (OE) dated May 27, 2008 recognizes Denmark as having a controlled Bovine
Spongiform Encephalopathy (BSE) risk in accordance with Chapter 2.3.13 of the OE
Terrestrial Animal Health Code;
WHEREAS, recent international guidelines set out by the OE Animal Health Code
provides for conditions under which all beef and beef products from animals of all ages
maybe safely traded;
ers vested in me by law, do hereby authorize the importation of beef from Denmark with the
following conditions:
1. Boneless and bone-in beef can be sourced from cattle of all ages devoid of any nerves
and other BSE-specified risk materials (SRM) shall be imported.
2. The beef, whether boneless or bone-in should come only from healthy ambulatory and
not downer cattle.
3. The age of the slaughter cattle shall be certified by the government authority.
4. The slaughter date of the cattle or the production date of the beef shall be included in the
packaging label.
All shipments into the country of beef originating from Denmark not complying with
these conditions shall be confiscated by DA Veterinary Quarantine Officers/ nspectors at
all major sea/airports.
visions of this order are hereby repealed or amended accordingly.
This Order shall take effect immediately.
Secretary
--o0o--
DA Administrative Order No. 06, s. 2009
Guidelines for the Amendment of Special Order No. 120, series of 2007
and the Creation of New Marketing Coordinators Who Will Undertake
the Livestock and Poultry Marketing Programs and Activities in the Regions
WHEREAS, pursuant to the Special Order No. 120 series of 2007 designating personnel
to undertake and promote marketing programs in coordination with the Marketing
Development Division of the Bureau of Animal ndustry and the Local Government Units,
monitor specific policy guidelines, undertake onsite assessment and evaluation of Livestock
Oksyon Markets in their jurisdiction, regularly submit to the BA-MDD the monthly
consolidated livestock report from selected markets, and monitor cold storages in the
regions and also address the issue of smuggling.
WHEREAS, pursuant to the Special Order No. 641, series of 2000 the Regional Direc-
tors of the Department of Agriculture-Regional Field Units (DA-RFUs) are automatically
members of the special task force tasked to closely monitor the prices of livestock, poul-
try, eggs, meat and meat products, and other allied industries such as feeds including
demand and supply trends;
WHEREAS, the Bureau of Animal ndustry through the Marketing Development Divi-
sion have been conducting regular National Task Force on Price and Volume Watch monthly
meetings to closely watch the prices of livestock, poultry, meat and feeds and review the
demand and supply situation;
WHEREAS, the highlights, together with the short and long term policy recommen-
dations as a result of consultations have been regularly submitted to the Office of the
Policy and Planning, and the Office of the Secretary as guide in their decision making
process;
WHEREAS, Regional Marketing Coordinators have attended the two-day orientation
seminar conducted by the Bureau of Animal ndustry through the Marketing Development
Division on September 2008. Among the objectives of which was to familiarize the partici-
pants about the National Task Force on Price and Volume Watch and their role in strength-
ening it.
WHEREAS, the said activity have enhanced the capabilities, duties and responsibili-
ties of the Regional Marketing Coordinators, highlighted by a workshop where their role in
the task force was underscored;
WHEREAS, it was agreed upon that the Special Order No. 120, series of 2007 be
amended since some of the personnel included in the SO has been retired or transferred,
resulting to changes of their duties and responsibilities. t was further suggested that the
names of the participants in the orientation seminar be included in the new S.O. and that
the activities conducted by the BA-MDD be replicated in the regions.
NOW, THEREFORE, , ARTHUR C. YAP, Secretary of Agriculture, do hereby issue
this order:
SECTION 1. Objectives and Scope - To reorganize and reactivate the Regional Mar-
keting Coordinators and implement the Special Order No. 120, series of 2007, Special
Order No. 641, series of 2000 and other administrative orders related thereto.
SECTION 2. Major Implementors - The Agribusiness and Marketing Assistance Divi-
sion of the Department of Agriculture Regional Field Units shall spearhead the implemen-
tation of the said orders in collaboration with the Bureau of Animal ndustry through the
Marketing Development Division. The Division Chiefs will automatically be the focal per-
sons in the region and support personnel be identified through a Special Order.
568
SECTION 3. Logistics and Administrative Support - n order to effectively implement
Special Order No. 120, series of 2007, Special Order No. 641, series of 2000 and other
administrative orders related thereto, logistics and administrative support will be given to
the regional field units. The amount of Seventy Five Thousand Pesos (P75,000.00) should
initially be earmarked for each region annually.
SECTION 4. Repealing Clause - All rules and regulations or portions thereof inconsis-
tent herewith are repealed or amended accordingly.
SECTION 5. Effectivity - This order shall take effect fifteen (15) days after the publica-
tion of the same in the Official Gazette, and filing three (3) copies thereof with the UP Law
Center.
Recommended by:
(SGD.) DAVNO P. CATBAGAN, DVM
Officer-in-Charge
Bureau of Animal Industry
Approved by:
Secretary
Department of Agriculture
BUREAU OF CUSTOMS
Customs Administrative Order No. 1-2009
Revised Rules and Regulations for the Establishment, Operation,
Supervision and Control of Customs Bonded Warehouses
TITLE I - OBJECTIVES
1.1 To enhance the rules and regulations for the establishment, operation, supervision and
control of Customs Bonded Warehouses (CBWs) and guard against possible revenue
leakages arising therefrom.
1.2 To introduce into the CBW scheme computerized systems and more transparent
procedures which would aid the Bureau of Customs (BOC) in the monitoring, supervision,
and control of CBW operations.
1.3 To align Customs regulations on CBWs with international standards and best prac-
tices.
|
TITLE II- DEFINITIONS
As used in this Order, the following terms shall have the following definitions:
2.1 Accessories refer to articles which are neither raw materials nor supplies which
enhance the finished products to be exported.
2.2 Account Officer is the customs personnel responsible for monitoring, manually or
through electronic medium, the performance of a CBW from importation to liquidation of its
imported raw materials to ensure compliance with customs rules and regulations.
2.3 Accountable Officer is a responsible official of the CBW named and designated by
the operator as the person, other than himself, answerable and liable to the BOC for all the
operational aspects of the warehouse.
2.4 Automated Raw Materials Inventory Management System (ARMIMS) is the com-
puterized system to be adopted by the CBW operator as a tool to determine and monitor
the stock inventory of imported articles entered through warehousing of a CBW at any one
time.
2.5 Automated Bonds Management System (ABMS) is the computerized system to be
adopted by the BOC as a tool in the effective monitoring and cancellation of bonds for the
liquidation of raw materials/entries.
2.6 Bar Coding System (BCS) is the system that may be utilized by the BOC in identify-
ing and tracking certain imported articles entered for warehousing.
2.7 Bonded Warehouse Committee (BWC) is the committee created to act on applica-
tions for the establishment and operation of CBW, renewal of licenses to operate CBWs,
application as member of a Common Bonded Warehouse, application as subcontractor of
a CBW and other related matters pertaining to the operation of a CBW.
2.8 Customs Certificate of License - is a document signed by the Commissioner of
Customs and the District Collector of Customs of the Port, issued to an enterprise with an
approved authority to either operate a CBW, to be a licensed member, licensed subcon-
tractor or licensed client/end-user stating its name, license number, exact office and ware-
house address, date of grant and expiry of license and type of the approved warehouse,
renewable every two (2) or three (3) years, as the case maybe, after proper re-evaluation
and favorable recommendation by the BWC.
2.9 Client Profile Registration System (CPRS) - is the system of registration provided for
BOC stakeholders under CMO No. 39-2008.
2.10 Compliance Rate System (CRS) - is a procedure to be adopted by the BOC in
assessing the degree of compliance of a warehouse operator with relevant CBW rules and
regulations and in taking any action on the CBWs license to operate or any extension
thereof. The CRS shall be developed by the BOC subject to review by the Department of
Finance (DOF) and consultation with concerned stakeholders. CRS may be applied to
licensed members of Customs Bonded Warehouses and licensed subcontractors.
570
2.11 Constructive Exportation/Importation - involves the sale or any other mode of con-
veyance and delivery of raw materials and semi-finished products from a CBW to a Cus-
toms Manufacturing Bonded Warehouse (CMBW), PEZA/Economic Zone, Freeport, or
vice versa.
2.12 Customs Accreditation Secretariat (CAS) is the office created to supervise and
monitor the accreditation of importers and brokers with the BOC.
2.13 Customs Bonded Warehouse Operator is a natural or juridical person who has a
duly approved license to operate a CBW issued by the BOC.
2.14 Examination and Storage Facility is a facility of a Customs Common Bonded
Warehouse (CCBW) and ndustry-Specific Customs Bonded Warehouse(CBW) with suf-
ficient personnel and space for examination and storage of goods.
2.15 Exporter is a natural or juridical person accredited by the Bureau of Export Trade
Promotion (BEPT) of the DT, or the Export Development Council (EDC).
2.16 Extension Warehouse is a separate customs bonded warehousing facility granted
by the BOC to an already authorized CBW operator when the latters current warehousing
facilities are no longer sufficient to fully service the volume of its operations.
2.17 Garments and Textiles Imports Services (GTIS) is the government agency attached
to the Department of Trade and ndustry mandated to assist the BOC in granting license to
be an operator or be a member or subcontractor of a warehouse facility involved in the
manufacture of garments or textiles for export.
2.18 Information Validator Service Provider (IVSP) is the service provider accredited
by the BOC under CAO No. 7-2008 tasked to validate and organize information submitted
by relevant stakeholders for purposes of accreditation as an importer and/or broker, com-
pliance, and risk management.
2.19 Licensed client/end-user is a natural or juridical person licensed by the BOC to be
a client/end-user of CBW.
2.20 Licensed Member is a natural or juridical person licensed by the BOC alone, or
jointly with the Garments and Textile mport Service (GTS) for garments industry, to be a
member of a CCBW.
2.21 Licensed Sub-Contractor is a person or company licensed by the BOC, and the
GTS in case of garments, to undertake or perform, for a definite period, certain manufac-
turing operations or activities incidental to the manufacture of bonded raw materials into
finished products in behalf of a licensed CBW due to the latters insufficiency of opera-
tional facilities or the lack of material time to meet export commitment/s.
2.22 Multi-Purpose Declaration is a Customs single administrative document accom-
plished by the importer, or his duly licensed broker, under oath and submitted to the BOC
for purposes of declaring and identifying among others the nature of the article/s being
imported, its value, volume, weight, and any relevant description thereof, whether entered
through consumption or through warehousing which will assist the BOC in assessing the
taxes and duties due on the imported article/s.
2.23 Open Bonded System is the operation of a duly licensed CBW wherein the tracking,
monitoring and accounting of imported goods entered conditionally free under the CBW
Scheme is done by means of computer linkage, without the need of assigning any cus-
toms personnel at the warehouse.
2.24 Operating Warehouse Division/Unit is the division/unit in each port responsible for
the supervision and control of operation of CBWs.
2.25 Prior Disclosure Statement (PDS) is a sworn document executed by a CBW opera-
tor and submitted to the BOC, including any integral attachments or supporting document
thereto, which declares information about certain facts pertaining to the operations of the
CBW, including but not limited to its export-import performance, production and financial
capacity, and any other information as may be requested by the BOC.
2.26 Raw Material Liquidation System (RMLS) is an automated system to be adopted
and utilized by the BOC in determining the volume and value of the raw materials exported
and subject for liquidation, including the duties and taxes due on the allowable residues/
wastages/by-products and other portion of the imported article/s, entered through ware-
housing, no longer usable for the manufacture of the articles to be exported.
2.27 Semi-finished products are imported raw materials or articles that have undergone
processing which shall be used in the further manufacture of finished products for export.
They are also termed as intermediate products.
2.28 Supplies refer to imported consumable and disposable indirect materials that are
needed in the maintenance, operation and production of a CBMW. Such materials are not
included in formula of manufacture of the finished products and are not duty/tax-free un-
less authorized by the BO or exempted by the DOF.
2.29 Transfer Note is a customs document that accompanies the transfer or transit
underguard of bonded imported articles to a PEZA/Freeport locator or to another CBW and
serves as proof of delivery or receipt of the articles at its intended destination duly ac-
knowledged on its face by the Collector of Customs or his duly authorized representative.
t is also commonly referred to as a boat note.
2.30 Transit is the customs procedure under which goods are transported under Customs
control from one Customs office to another or to a PEZA-registered enterprise or Freeport
locator, and vice versa.
2.31 Unauthorized Withdrawal is a violation of Customs law committed when an im-
ported material entered through the warehousing scheme and destined for transit to a
particular CBW, PEZA/Freeport locator, or from the CBW to the port or airport for exporta-
tion, is brought to some place other than its intended destination without any prior author-
ity from the Collector having jurisdiction over the imported goods. Unauthorized withdrawal
includes the act of directly transferring the imported materials to a licensed member or
licensed subcontractor without passing through the physical facility of the CBW, or the
transfer of such materials to a non-licensed member or subcontractor.
572
Unauthorized withdrawal is also committed by the withdrawal of any material/article
stored in a CBW without the duly processed withdrawal or requisition slip or the unautho-
rized substitution of materials or finished products with local materials or articles.
2.32 Wastage Valuation Data Base (WVDB) is a bank of information and reference values
which shall be utilized by the BOC in assessing the taxes and duties due on the allowable
residue/wastage/by-products or other portion of the imported article/s which can no longer
be used for the manufacture of the articles to be exported.
2.33 Warehouse Coordinating Division (WCD) is the Office created under Executive
Order (E.O.) No. 127 mandated principally to coordinate and evaluate warehousing activi-
ties including the liquidation of materials, coordinate and monitor policies and guidelines
for the effective implementation of laws, rules and regulations on bonded warehousing, and
formulate effective internal control system to prevent possible violations of customs laws,
rules and regulations.
TITLE III - GENERAL PROVISIONS
3.1 The BOC is responsible for the licensing, supervision, and control of all CBWs includ-
ing its extension warehouses, licensed members and licensed subcontractors. Subcon-
tractors located in PEZA or Freeports shall likewise be subject to monitoring by the Bu-
reau of Customs upon proper coordination with the relevant agency concerned.
3.2 A CBW and variants thereof include the surrounding premises within its perimeter
fence per approved application, rooms, compartments, and other areas necessary and
exclusively used for storing, processing, re-packing, and manufacturing imported raw
materials and the finished product, by-products, wastages and rejects incident to such
activities as applied for and approved by the BOC. No other establishment shall be allowed
thereat except upon proper approval of the BOC and under such conditions as may be
imposed by the BOC.
3.3. Types of Warehouses and their Definitions:
3.3.1 Ordinary Customs Bonded Warehouse (CBW) is the traditional
warehouse wherein a Customs Bonded Warehouseman, Sr. Storekeeper and
CBW Guards, among others, may be assigned to supervise its activities and
transactions with the BOC.
3.3.2 Airlines Customs Bonded Warehouse (ACBW) is a special type of
CBW which caters to the needs of the international air carriers operating in the
country.
3.3.3 Customs Common Bonded Warehouse (CCBW) is a warehouse facility
licensed by the BOC alone, and jointly with GTS for garment industry, to import,
receive, and store raw materials, accessories, spare parts, supplies, accessories
and packaging materials for the account of its accredited members for
manufacture into finished products for export.
3.3.4 Garments/Textile Manufacturing Bonded Warehouse (GTMBW) is
a warehouse facility jointly licensed by the BOC and the GTS through its
accreditation committee to import, receive and store garments, textiles,
accessories and packaging materials for manufacture into finished products for
export.
3.3.5 Industry-Specific Customs Bonded Warehouse (ICBW) is a warehouse
facility duly licensed by the BOC to import under bond and under its name and
account raw materials (except fibers, yarns, fabrics and accessories for the
manufacture of garments) for storage and subsequent sale/transfer to the
following where these shall be manufactured into export products:
a. Licensed client/end-user;
b. Customs Bonded Manufacturing Warehouse; or
c. PEZA or Freeport locator.
3.3.6 Miscellaneous Manufacturing Bonded Warehouse (MMBW) is a
warehouse facility licensed by the BOC to import, receive, and store raw
materials, accessories and packaging materials, except garments and textile,
for manufacture into finished products for export.
3.3.7 Multinational Regional Bonded Warehouse (MRBW) is a warehouse
facility licensed by BO in proper cases, to serve as a supply depot for the
storage, deposit, safekeeping of spare parts components, semi-finished products
and raw materials including the packing, covering, putting up, marking, labelling,
cutting or altering to customers satisfaction, mounting and/or packaging into
kits or marketable lots thereof to fill up transactions and sales made by its
officer or parent companies and to serving as a storage of goods purchased
locally by the home office of the multinational for export abroad under the
supervision of the BOC.
3.3.8 Private Bonded Warehouse (PrBW) is a warehouse facility licensed by
the BOC to import, receive and store articles for its production intended for
domestic consumption, withdrawal of which shall be made only upon payment
of duties and taxes and other charges due thereon.
3.3.9 Public Bonded Warehouse (PuBW) is a warehouse facility licensed by
the BOC to receive and store general cargoes for exportation, transfer to another
customs bonded warehouse, PEZA or Freeport-registered enterprise, or for
local consumption in the same state when the cargoes were imported. Articles
for local consumption shall only be withdrawn upon payment of the assessed
duties, taxes and other charges due thereon.
3.4 During the transition period from the present system to the open bonded warehouse
system, the BOC shall, as far as practicable, institute new methods and techniques in the
supervision and control of CBWs. These shall include, but not limited to, the computeriza-
tion of all CBW activities and transactions in order to render operational the open bonded
warehouse system.
3.5 Terms and Conditions of License to Operate a CBW:
574
3.5.1 mported raw materials, accessories, spare parts, labels, hangers, cartons,
packaging materials and the like used in the manufacture of articles that are
transferred to other bonded manufacturing warehouses or licensed members or
subcontractor for processing into finished products and thereafter exported shall
be exempt from payment of any duties and taxes.
mported articles may be withdrawn from the warehouse either for manufacture
into export products; for repacking for distribution to foreign markets; for sale to
manufacturing bonded warehouse; for transfer to subcontractors or members
of common bonded manufacturing warehouses, or for domestic consumption.
Those articles withdrawn for domestic consumption shall be subject to payment
of duties and taxes.
The privilege of exemption from payment of duties and taxes, however, shall not
apply to implements, machineries, spare parts and apparatuses, supplies and
tools to be used to construct, repair or operate any bonded manufacturing
warehouse unless these supplies and spare parts are indispensably needed in
the production of finished products for exports subject to presentation of a
Certificate of Qualification from BO and the corresponding exemption from the
DOF.
3.5.2 The visitorial powers of the BOC shall extend to all CBWs, including their
extensions, licensed members, end-users/clients and subcontractors. n the
case of end-users clients/subcontractors located in PEZA or Freeport, the
exercise by the BOC of its visitorial power shall always be with prior notice to
the locator/enterprise concerned and limited to a specific transaction through
proper coordination with the government agency concerned.
3.5.3 Articles not used by manufacturing bonded warehouses within the
prescribed period pursuant to Section 2002 paragraph b of the Tariff and Customs
Code of the Philippines, as amended (TCCP) shall be liable for the payment of
duties and taxes. n case of other types of bonded warehouses, articles not
withdrawn at the expiration of the prescribed period shall be deemed abandoned
and ipso facto forfeited in favor of Government to be sold at public auction by
the District Collector of Customs pursuant to Section 1908, of the TCCP.
3.5.4 The importer shall, within a non-extendible period of sixty (60) days from
the date of complete and full exportation, submit the complete documents
required for the liquidation of the entry. The same period shall likewise be given
an importer for the submission of the complete documents required for the
liquidation of the warehousing entry even in cases where complete exportation
is made before the expiration of the period prescribed. Notwithstanding the
foregoing, the maximum period within which to submit complete liquidation
documents is thirty (30) days from the expiration of the storage period.
The imposition of the periods herein prescribed shall be without prejudice to
existing rules and regulations.
3.5.5 Companies which are non-small or medium scale are encouraged to
establish their own Customs Bonded Manufacturing Warehouse (CBMW). A
CCMBW shall further maintain a capitalization equivalent to a Large Scale
ndustry in accordance with R.A. 6977 as amended by R.A. 8289 or a minimum
paid-up capitalization of Php20,000,000.00.
3.5.6 A CCBW or an CBW operator shall likewise have an examination and
storage facility which is a secured area with sufficient space for the inspection
and subsequent storage and safekeeping of imported goods prior to their delivery
to licensed members or licensed client/end-user, as the case may be. t shall
also have the necessary logistical support needed for the proper handling of
such imported articles.
3.5.7 The license to operate a CBW is personal to the warehouse and shall not
be transferred or assigned for whatever reason.
3.5.8 A licensed Extension Warehouse or a licensed subcontractor of a
manufacturing bonded warehouse should preferably be located within the
Collection District where the main warehouse is registered except a
subcontractor located in the PEZA or Freeport zone.
3.5.9 Any person, natural or juridical, found to be operating as a bonded
warehouse without a valid customs license, shall be barred from being granted
any warehousing privileges.
3.5.10 Any misrepresentation, false statement or non-disclosure of any material
information required in any application shall be a ground for its disapproval
without prejudice to any administrative/criminal charge as may be proper.
3.5.11 Any misrepresentation, false statement or non-disclosure of any required
material information, discovered after the issuance of a license to operate a
CBW shall be a ground for the revocation/cancellation of such license.
TITLE IV - ADMINISTRATIVE PROVISIONS
4.1 Application for a License to Operate a CBW - The Application to operate a CBW
shall be submitted to the Commissioner of Customs through the District Collector for
evaluation by the BWC, except the application to operate a Multinational Bonded Ware-
house which shall be filed with the Board of nvestments (BO). n the latter case, the
approval of the application, upon recommendation of the BOC, shall be in accordance with
the BOs rules and regulations.
4.2 Application for License to Operate as Member, Subcontractor or Client/End-
User - The Application for license to operate as Member, Subcontractor or client/end-user
shall likewise be submitted to the Commissioner of Customs through the District Collector
for evaluation by the BWC.
4.3 Relevant Documentary Requirements - Together with such application, relevant
documents such as, but not limited to, BO, DT, Freeport Authority, PEZA and other
applicable agency indorsements shall be submitted. Also, favorable indorsements from
the relevant business industry association/federation may be submitted in support of the
application.
576
Further, in case the applicant is already a BOC accredited importer, the CAS Accreditation
Certificate together with the nformation Validation Service Providers (VSPs) favorable
recommendation shall be submitted together with the application.
4.4 Evaluation of the Application - The District Collector of Customs of the Port shall,
within five (5) days from receipt of the application pass upon the merits of the said applica-
tions prior to submission to the BWC for final evaluation and recommendation. The BWC
shall act on the application within fifteen (15) days from receipt of the indorsement of the
District Collector.
For the licensing of members and subcontractors in case of garments, the BOC and GTS
shall coordinate and come up with a policy to expedite the accreditation of members and
subcontractors.
4.5 Approval of the Application - The Commissioner of Customs shall act on the appli-
cation as endorsed by the Chairman, BWC within fifteen (15) days from receipt of such
endorsement. The approval shall be evidenced by a Certificate of License to Operate.
Such Certificate of License to Operate shall be conspicuously displayed at all times at the
CBWs offices.
Other amended Certificates shall also be issued upon the approval and/or notation of an
application in case of any subsequent change in company name, address, certificate of
renewal, etc.
4.6 Submission of the Audited Financial Statements - For monitoring purposes, the
CBW operator shall submit its annual Audited Financial Statements for the immediately
preceding calendar or fiscal year, as the case may be to the Operating Division copy
furnished the WCD or its equivalent unit within ten (10) days from its filing/submission to
the Bureau of nternal Revenue.
4.7 Assignment of Customs Personnel - Unless the Commissioner provides otherwise,
the District Collector having jurisdiction over the CBW shall assign such number of cus-
toms personnel necessary to supervise the operation of the CBW.
The CBW operator shall provide the customs personnel with suitable working areas com-
plete with office equipment and supplies.
4.8 Work Hours - Customs employees assigned to the CBWs shall strictly observe regu-
lar office hours and record their attendance in accordance with Civil Service rules and
regulations. The CBW operator shall promptly report to the District Collector any unautho-
rized absences. The services of the customs personnel requested by the operator which
are performed outside the regular office hours, including Saturdays, Sundays and holi-
days, shall be considered overtime.
4.9 Locks and Keys - The door/entrance to a CBW and the designated compartments for
raw materials, finished goods and wastages, rejects and by-products shall have two (2)
locks each. One set shall be maintained by the CBW Warehouseman and the other by the
CBW Operator. All duplicate keys for locks held by the Customs Warehouseman shall be
kept by the Chief, Warehousing Operating Division or equivalent unit.
4.10 Principal Books and Documents - The Commissioner of Customs shall require the
CBW operator to maintain a principal book which shall contain information relevant to the
operation of the CBW including all documents on its operations according to the period
required by Section 3514, of the TCCP. A separate principal book shall also be maintained
and kept at the Bonded Warehouse Division/unit concerned.
4.11 Audit - Periodic Audits shall be conducted on a CBW for the purpose of monitoring
its operations as well as to determine its compliance with governing rules and regulations.
There shall be established a Compliance Rate System (CRS) which shall be utilized to
measure and assess the compliance and performance levels of all CBWs especially with
regard to applicable laws, rules and regulations, and other performance factors like import-
export and economic viability, among others. The CRS shall be utilized by the BOC as a
risk management mechanism in its evaluation of any application or used as basis in any
action which may be taken by the BOC for or against a CBW.
4.12 Renewal of License - An application for renewal of license by a CBW or for license
as member, subcontractor or client/end-user shall be filed every two (2) years with the
BWC thru the District Collector of the Port. A Certificate of Renewal of License shall be
issued for every renewal which shall be conspicuously displayed at all times at the CBWs
offices.
4.13 Raw Material Importation - CBWs may import articles as authorized by the BOC
and/or other government regulatory agencies.
4.14 Stock Inventory - n order to effectively monitor the stock inventory of all CBWs,
ARMMS shall be established and utilized with linkage to the BOC.
4.15 Transfers of CBW Articles - Unless the District Collector allows direct transfer,
articles imported by CBWs shall be examined, appraised and bonds filed before these are
transferred.
Transfers of articles to the CBWs shall be through a warehousing entry or a transit decla-
ration. n case of transit, the operator shall file the warehousing entry, or the equivalent
document, within five (5) days from date of receipt of the articles at the warehouse. Unless
otherwise provided, the transfer of imported articles from the customs zone to the ware-
house shall be under continuous guarding by customs guard(s) until delivery at the CBW
is acknowledged in the covering transfer note by the customs personnel assigned thereat
or by the duly designated accountable officer of the operator.
All goods for export shall be stuffed only upon prior examination by the Customs Examiner
assigned. For this purpose, it shall be the responsibility of the CBW operator to inform/
notify the BOC in advance before any actual stuffing shall be done.
4.16. Exportation of CBW Products - Export products which are manufactured in CBWs
or are repacked in multinational regional warehouses shall be exported, and the entry
liquidated and the bonds cancelled within the prescribed period; otherwise, the operator
shall pay duties, taxes and other charges for articles not exported, or the remaining mate-
rials shall be surrendered to the BOC. Articles for which taxes, duties and other charges
578
are paid shall be taken out immediately from their bonded areas, such as compartments
for raw materials or finished products, after such payments.
4.17 Bar Coding System - A bar coding system acceptable to the BOC shall be adopted
by CBW operators and utilized to identify goods withdrawn for export from CBW compart-
ments.
4.18 Wastages - Wastages, rejects and by-products in the manufacture of export prod-
ucts shall be properly accounted for and disposed of in accordance with existing rules and
regulations.
4.19. Raw Materials Liquidation System (RMLS) - A RMLS shall be adopted and
utilized to effectively monitor the liquidation of raw materials used in the manufacture of
imported articles and the wastages derived therefrom. Also, a Wastage Value Data Base
shall be established for wastages, rejects and by-products.
4.20 Cancellation of Bonds - An Automated Bonds Management System (ABMS) shall
be utilized to assist in the effective cancellation of bonds for the liquidation of raw materi-
als/entries.
TITLE V - VIOLATIONS AND PENALTIES
5.1 The District Collector and/or the Commissioner may suspend or revoke the license to
operate a CBW for any violation committed by the operator, or upon the request of the
operator.
5.2 The CBW Operator shall be jointly and severally liable with its licensed member and/
or licensed subcontractor for any violation committed.
5.3 Any relocation of a CBW should have the written prior approval of the BOC. Any
unauthorized relocation shall be a ground for suspension or revocation of license of a
CBW, licensed member or licensed subcontractor.
5.4. Without prejudice to the criminal liability as provided under the TCCP, the following
administrative sanctions shall be imposed for Unauthorized Withdrawal:
a. Suspension of warehousing privileges for six (6) months for the first offense;
and
b. Closure, for the second offense.
5.5 Without prejudice to other actions that the BOC may file against the importer/surety
company or take action on the latters importation pursuant to Section 1508 of the TCCP,
the provisions on existing regulations on fines/penalties/surcharges shall be applied on
erring importers/warehouse operators.
5.6 Penalties for late filing of renewal of license to operate a CBW shall be collected as
follows:
a. 1-15 days - Php 5,000.00
b. 16-30 days - Php 10,000.00
c. 31 days and above - Closure
5.7 The license to operate a CBW may be suspended or revoked if the operator or respon-
sible official thereof shall knowingly allow the use of the CBW or facilities for illegal activi-
ties. The imposition of such penalty shall not prejudice criminal prosecution against the
individual/s involved.
TITLE VI - IMPLEMENTING RULES AND REGULATIONS
The Commissioner of Customs shall issue the necessary Customs Memorandum
Order for a more effective implementation of this Order.
TITLE VII - TRANSITORY PROVISIONS
Existing systems and procedures intended to be replaced by the automated systems
indicated herein shall remain in force and effect pending the issuance of new rules and
regulations which shall cause the implementation of such automated systems.
TITLE VIII - REPEALING CLAUSE
All previous rules and regulations and issuances inconsistent herewith, unless other-
wise particularly indicated herein, are hereby amended and/or repealed accordingly.
TITLE IX - EFFECTIVITY CLAUSE
This Order shall be effective after fifteen (15) days from the date of publication hereof
in a newspaper of general circulation.
Adopted: 12 Mar. 2009
(SGD.) NAPOLEON L. MORALES
Commissioner
Approved:
(SGD.) MARGARTO B. TEVES
Secretary of Finance
--o0o--
Customs Memorandum Order No. 9-2009
Guidelines in the Implementation of the Border Patrol Agreement
and Border Crossing Agreement Between the Government of the
Republic of Indonesia and the Government of the
Republic of the Philippines
. Objectives:
580
1. To define the qualification requirements in the designation of Border Crossing Officers;
2. To provide the guidelines in the monitoring and supervision of Border Crossing Officers;
and
3. To prescribe the reportorial requirements that shall be complied with by the designated
Border Crossing Officers.
. Designation of Border Crossing Officers:
1. The designation as Border Crossing Officers shall be issued by the Commissioner of
Customs upon recommendation of the concerned District Collector;
2. The following shall be the requirements for designation as such:
a. A permanent employee of the Bureau for at least three (3) years holding a
plantilla position of not lower than Customs Operations Officer , SG -11 currently
assigned at the Port of Zamboanga or Port of Davao, respectively.
b. Physically fit as certified to by a Medical Officer in a local government hospital
in Zamboanga/Davao and the Chief, Medical and Dental Division, Ocom.
c. Endorsement by the immediate family (wife/husband for married employee/
parent for single employee) stating agreement to his/her assignment and likewise
stating the members of the family who shall be entitled to benefits as Foreign
Service Officer, if any.
3. The regular tour of duty for each designation shall be for six (6) months and can be
extended but subject to renewal upon proper evaluation and favorable recommendation of
the concerned District Collector which shall, however, be limited to a maximum of three (3)
renewals only.
4. After the issuance of appropriate Customs Personnel Order, the designated Customs
Border Crossing Officer shall be endorsed to the Department of Foreign Affairs by the
Deputy Commissioner, nternal Administration Group for issuance of diplomatic passport
and possible conferment of an appropriate Foreign Service Officer Rank and the corre-
sponding entitlement to its benefits, privileges, responsibilities and accountabilities.
5. n accordance with DFA rules and regulations, the Diplomatic Passport shall be subject
to annual revalidation. Hence, the designated Customs Border Crossing Officer shall take
necessary action to comply with such rule.
6. n accordance with the Agreement, the Customs Border Crossing Officer is part of the
Border Committee Team, a multi-agency team with the Military Commander as Head of
the Team. Accordingly, the Customs Border Crossing Officer shall immediately report to
the Head of the Team upon his assumption, whenever, he will be leaving his post for
personal and official reasons and prior to departure in case of recall.
. Monitoring, Supervision and Reportorial Requirements;
1. As per Agreement, the following shall be the Border Crossing Entry and exit stations:
a. ndonesian Side
- Marore
- Miangas
- Tarakan
b. Philippine Side
- Mabila, Balut sland
- Cape San Agustin
- Bongao, Tawi-tawi
2. Accordingly, the Philippine Customs Border Crossing Officer shall be stationed at the
following stations in ndonesia and shall be subject to supervision of the concerned District
Collector as indicated:
a. Marore, ndonesia - District Collector, Port of Davao
b. Miangas, ndonesia - District Collector, Port of Davao
c. Tarakan, ndonesia - District Collector, Port of Zamboanga
3. On the other hand, the jurisdiction to supervise the areas in the Philippine side for the
enforcement of the tariff and customs laws and the provisions of the Agreement shall be in
accordance with the jurisdictional limits of the Collection District and its subport as fol-
lows:
a. Balut sland - Subport of Dadiangas, Collection District No. X
b. Cape San Agustin - Subport of Mati, Collection District No. X
c. Bongao, Tawi-tawi - Subport of Tawi-tawi, Collection District No. X
4. As per agreement, the main function of the Customs Border Crossing Officer shall be to
manage and execute duties regulating the traffic of people and the flow of goods according
to the Border Crossing Agreement. Specifically, he shall be responsible for:
a. Countersigning the Border Crossing Cards issued by the ndonesian Border
Crossing Officers in Miangas, Marore and Tarakan for ndonesian nationals
entering the Philippine borders.
b. Strictly implement the rules and regulations in the entry and exit of goods as
stated in the Border Crossing System, Annex F of the Agreement;
c. Submit monthly reports to the concerned District Collector stating among
others, the number of Border Crossing Cards countersigned, apprehensions
made on the enforcement of tariff and customs laws and border crossing
agreement, duties and taxes collected, other activities conducted in connection
with the performance of his duties and such other information that may be
useful to the Collection District in relation to the enforcement of tariff and customs
laws.
582
d. The District Collector concerned shall endorse the report of the Border Crossing
Officer to the Office of the Commissioner thru the Chief of nternational Affairs.
e. The submitted report to the Commissioner of Customs will be evaluated by
the Director for Administration Office and the Chief of nternational Affairs for
further comments and recommendations to attain better administration and
effective implementation of the Border Patrol Agreement.
f. The Customs Border Crossing Officer shall coordinate with the BMP-EAGA-
CQS Task Force and shall support its initiatives on ntegrated Border
Management.
5. The submission of monthly accomplishment report and report of attendance duly signed
by the Leader, Border Crossing Team shall be attached to the claim for payment of sala-
ries and other allowable allowances as Foreign Service Officers. Request for payment
shall be duly endorsed by the concerned District Collector to the Director, Financial Man-
agement Office, Office of the Commissioner.
V. Effectivity
This Order shall take effect 15 days after its publication. The current designees to
the position of Customs Border Crossing Officers shall be subject to re-evaluation and
recommendation as per this Order.
Adopted: 2 Feb. 2009
Commissioner
--o0o--
Procedures for the Implementation of e2m Customs -Import
Assessment System (IAS) at the Port of Batangas starting March 21, 2009
--o0o-
Definitive General Safeguard Duty on Importations of
Clear and Tinted Float Glass from Various Countries
--o0o-
Parameters for Regularizing the Provisional Authority to Import Resin
Through the Warehousing Scheme Granted Pursuant to CAO 4-2008 A
I. OBJECTIVES:
To assist the Customs Bonded Warehouse Committee (CBWC) and the Office of the
Commissioner in regularizing the authority provisionally granted to import resin through
warehousing to Customs Bonded Warehouses (CBWs).
II. SCOPE:
This Order covers all CBWs which have been granted a provisional authority to import
resin through warehousing.
III. GENERAL AND ADMINISTRATIVE PROVISIONS:
1. Having monitored the compliance of CBWs which were granted provisional authority to
import resin through the warehousing scheme with customs rules and regulations, the
CBWC, may now consider applications for the regularization of such provisional authority
granted.
2. Only CBWs which were granted provisional authority by the Office of the Commissioner
to import resin through warehousing scheme may request for the regularization of such
authority. Such request shall be filed with the Operating Division/unit concerned of the
District Office having jurisdiction over such CBWs, attaching with such request a certified
true copy of the provisional authority granted.
3. The application together with the latest import/export performance of the applicant shall
then be forwarded to the CBWC by the District Office concerned together with its recom-
mendation/s.
4. After receipt of such application and recommendation, the CBWC shall deliberate on
the matter and act pursuant to CAO 4-2008 as implemented by CMO 33-2008. Approved
application shall be transmitted to the Office of the Commissioner for clearance citing
among others the date of the expiration of the applicants regular license to operate CBW.
Any application denied by the CBWC shall be communicated in writing to the District
Collector and the applicant concerned together with the reasons for such denial.
5. Upon clearance by the Office of the Commissioner of the application, as favorably
recommended by the CBWC, OCOM shall issue a certification to this effect duly signed
584
by the Commissioner of Customs, regularizing the CBWs authority to import resin through
warehousing for a period which shall coincide with the period of the latters License to
Operate, or any renewal thereof.
6. After such cycle, any renewal application for the license to operate filed by a CBW shall
likewise indicate a request for the renewal of the authority to import resin through ware-
housing, subject to the required clearance from the Office of the Commissioner.
7. Henceforth, the cycle shall expire simultaneously and may be renewed as may be
warranted.
IV. REPEALING CLAUSE:
All issuance/s inconsistent herewith are hereby deemed superseded/amended ac-
cordingly.
V. EFFECTIVITY:
Commissioner
--o0o--
1.0 Objectives
1.1 To ensure the effective and proper enforcement of the Tariff and Customs Code of the
Philippines, as amended (TCCP) and all other relevant laws, rules and regulations by
ensuring that only legitimate entities are accredited as importers;
1.2. To update, amend and or supersede all rules and regulations relating to accreditation
of importers issued by the Bureau of Customs (BOC);
1.3 To guard the interest of the government against abuse of accreditation privileges.
2.0 Coverage
This Order shall cover all importers except the following importations which are ex-
empt from the accreditation requirements under this Order but shall still be covered by
separate rules and regulations, such as CMO No. 39-2008 on the Client Profile Registra-
tion System (CPRS):
2.1 First and Last mportation for the year;
2.2 mportations by parcel post;
2.3 mportations covered by special laws, to wit:
2.3.1 mportations covered by the Special Economic Zone Act of 1995 (RA
7916);
2.3.2 mportations by enterprises covered by the Bases Conversion Development
Authority (RA 7227);
2.4 mportations of the Philippine Government, its agencies and instrumentalities;
2.5 mportations by foreign embassies, consulates, legations, agencies of other foreign
governments and international organizations with diplomatic status and recognized as
such by the Government of the Philippines, i.e. Asian Development Bank/World Health
Organization.
3.0 General Provisions
3.1 All importers shall be required to file an application for accreditation in the prescribed
form as in Annex A * hereof, which shall be under oath.
3.2 n the case of first time applicants, the application form shall be supported by the
following documents:
3.2.1 Mayors Permit and Barangay Clearance
3.2.2 BR TN Card and/or Vat (or Non-Vat) Certificate of Applicant
3.2.3 Valid D and Community Tax Certificate (CTC) of the applicant
3.2.4 For corporations, SEC Certificate of Registration, Articles of ncorporation
and By-Laws
3.2.5 For partnerships, SEC Certificate of Registration, Articles of Partnership
and By-laws
3.2.6 For cooperatives, Certificate of Cooperation issued by the Cooperative
Development Authority (CDA)
3.2.7 For sole proprietorship, proof of registration with the Department of Trade
and ndustry
3.2.8 2x2 pictures of the applicant with specimen signature at the back thereof
3.2.9 Audited Financial Statement for the past year, if applicable
3.2.10 BO Certificate of Registration if applicable
3.2.11 ncome Tax of the company, partners, proprietor/owner for the past year,
as may be applicable
3.2.12 Proof of ownership or lawful occupation (i.e. Contract of Lease) of the
business premises, as the case may be.
3.2.13 Proof of utility billing.
3.2.14 Other documents or information that may hereafter be required, which
shall be covered by a supplemental CMO, Office Order or Memorandum to be
issued by the Commissioner of Customs from time to time.
*Not Filed with ONAR.
586
The above documents shall be original copies or certified copies thereof. The original
copies may be required by the Customs Accreditation Secretariat (CAS) for purposes of
comparison in case of doubt as to the authenticity of the certified copies.
3.3 For renewal of accreditation, the application shall be supported by the following docu-
ments:
3.1.1 Affidavit of No Change of Circumstance (in case there are no material
changes in the applicants data and circumstances as appearing in the previous
accreditation)
3.1.2 Previous CAS Accreditation Certificate
3.1.3 Notarized Application Form
3.1.4 Current Mayors Permit and Barangay Clearance
3.1.5 Valid D and CTC of the Applicant
3.1.6 Certificate of Title or proof of lawful possession (i.e. Lease Contract) over
the business premises, as the case may be, unless this has been previously
submitted and there is no change of circumstance.
All the above documents shall be subject to the verification/certification
requirements mentioned under Section 2 hereof.
3.4 n case the applicant is a juridical personality, the application shall be filed by a re-
sponsible officer duly authorized by the corporation, partnership, cooperative or other simi-
lar entities in accordance with their respective governing laws, charter or by-laws, as the
case may be.
3.5 Any material representation in the application form as well as in any of the accompa-
nying documents will be a ground for the disapproval of cancellation of the accreditation as
the case may be.
3.6 Any variance between the facts/information in the required document and the present
circumstances of the applicant as well as any changes in the material information pertain-
ing to the applicant, i.e., business address occurring before the filing of the application
shall be immediately communicated and sufficiently explained to the CAS.
3.7 Failure to make the necessary notification/correction of the variance occurring before
the filing of the application shall be a ground for the disapproval thereof or for its revocation
if discovered thereafter.
3.8 All accreditations issued pursuant to this Order shall be valid for a period of one (1)
year, starting from the date of issuance appearing on the corresponding Certificate of
Accreditation.
3.9 Any importer whose accreditation has expired shall not be allowed to transact busi-
ness with the BOC. Therefore, all importers who intend to continue availing of the accredi-
tation privileges granted hereunder are required to file an application for the renewal of their
accreditations, complete with the documents required under paragraph 3 hereof at least
thirty (30) days prior to the date of expiration, as appearing in their respective Certificates.
3.10 Registration fee amounting to PHp1,000.00 for new applications and Php 500.00 for
renewal shall be paid by the applicant to the BOC prior to the filing thereof with the Cus-
toms Accreditation Secretariat. For these purposes, applications filed after thirty (30) days
from date of expiration shall be considered as new.
4.0 Administrative Provisions
4.1 All importers whose Head/Principal Offices are located in Metro Manila shall file their
notarized application form with the Customs Accreditation Secretariat created under CSO
No. 1-2006 as amended by CSO No. 19-2008.
4.2 All importers whose Head/ Principal Offices are located outside Metro Manila shall file
the application with the CAS Satellite Office, or in case there is no such office in the area,
with the Office of the District Collector Port/Sub-port Collector under whose jurisdiction the
geographical location of the Head/Principal Office of the applicant(s) is/are situated.
4.3 Upon receipt of the application together with all the required documents under para-
graphs 2 and 3 of Section V hereof, the Executive Director, CAS shall immediately
assigned the same to an inspector, who shall within seven (7) days conduct the inspec-
tion of the business premises of the applicant for the purpose of verifying the following:
4.3.1 Existence of the applicant in the indicated place of business
4.3.2 Existence of the applicants office, plant or warehouse, as the case may
be.
4.3.3 Actual business operations of the applicant or the impending
commencement thereof, as the case may be
4.3.4 Genuineness of the documents presented in support of the application.
4.3.5 Other facts material to the application for accreditation.
4.4 n the case of applications filed outside Metro Manila, the inspection shall be con-
ducted by CAS personnel stationed therein. Should there be no CAS Satellite Office in the
area the inspection shall be conducted by BOC personnel duly designated as such by the
concerned Collector of Customs.
4.5 After the inspection, the assigned inspector shall submit a report indicating his recom-
mendations on the application to the Executive Director, who shall immediately assign the
same to an evaluator, who shall in turn determine the following:
4.5.1 Legitimacy of the business operations of the applicant
4.5.2 Completeness of the documents required to be submitted hereunder.
4.5.3 Absence of a variance or misrepresentation of material facts on the part of
the applicant vis-a-vis the documents submitted.
4.5.4 Capability of the applicant to comply with customs rules and regulations
4.5.5 Other risk factors affecting the application.
4.6 The assigned evaluator, shall, within seven (7) days submit a report together with his
recommendations to the Executive Director, who shall in turn determine whether or not to
give due course to the application.
4.7 n the case of the applications filed at the outports, the assigned inspector shall submit
a report with his recommendations to the concerned Collector of Customs, who shall
588
forward the same together with his own findings and recommendations to the Executive
Director, for the latters consideration and approval.
4.8 All verifications/inspections/evaluations to be undertaken in relation to the applications
shall be concluded not later than fifteen (15) days after receipt of the application. The
period of fifteen (15) days will not run if any the documents required herein are lacking.
4.9 However, upon accreditation of an VSP by the BOC, the inspection/verification activi-
ties mentioned in paragraphs 4.3 to 4.5 and 4.7 to 4.8 of this Section shall be performed by
said VSP.
5.0 Supplementary Provisions
5.1 Importers Principal Place of Business - An importer shall at all times keep and
maintain a principal place of business where he shall conduct his business operations.
Said principal place of business shall be duly declared with the CAS and supported with
proper governmental registrations and permits.
n case a building or place of business is being shared by the applicant with another
enterprise, each office space/warehouse, as far as practicable, must be sufficiently delin-
eated by permanent division and markers, so as to make the applicants office readily
identifiable, as determined by the CAS. n any event, the concerned applicants/importers
must justify the sharing and must show proofs that the lessors and/or building administra-
tors concerned are aware of such arrangement and covered by proper contracts.
5.2 Misuse of Accreditation Privileges - An importer shall not use his accreditation
privileges for any unlawful or fraudulent transactions with the BOC. He shall not allow
himself to become a dummy of another importer or person for any unlawful and fraudulent
customs transactions nor permit the use thereof, directly or indirectly, by another importer
or person.
5.3 An accredited importer shall, within ten (10) days from the happening of the event,
inform the CAS of any change in the material information previously declared and filed,
such as, but not limited to the following:
5.3.1 Change of address, i.e. office address and/or warehouse address
5.3.2 Change of facsimile and/or telephone number/s
5.3.3 Change of Corporate Directors and Officers/Partners/Cooperative Directors
and Officers
5.3.4 Amendment/s to Articles of ncorporation/Partnership/Cooperation and
By-Laws, as approved by the appropriate government agencies
5.3.5 Dissolution or closure/stoppage of business
Failure to inform the CAS of the above circumstances shall be ground for the immediate
revocation/cancellation of the erring importers accreditation privileges. Moreover, this shall
give rise to a prima facie presumption that the concerned importer has knowledge and the
intention to use fraudulently his accreditation privileges.
5.4 Any importer who deliberately files an import entry, knowing fully well that the corre-
sponding accreditation has expired shall subject the offending party and/or the imported
articles to the penalties provided for under the TCCP and other relevant customs laws,
rules and regulations, as the case may be.
f found guilty, the importers accreditation privileges shall also be immediately re-
voked/cancelled without prejudice to other legal actions that the BOC may take under the
circumstances. Moreover, he shall no longer be allowed to renew the same, unless other-
wise provided.
5.5 False and/or Misleading Information - An importer or his authorized representative
shall not file or submit any document, affidavit, or other paper-known by him to be false and
fraudulent, nor shall he knowingly give, submit, solicit or procure the giving of, any false or
misleading information relative to his accreditation application. Otherwise, his accredita-
tion shall be disapproved; or, if uncovered thereafter, his accreditation privileges shall be
immediately revoked/cancelled.
6.0 Transitory Provisions
All accreditations issued under CMO 23-99 shall remain to be valid and governed by
the same CMO until the date of expiration thereof as indicated in their respective certifi-
cates.
7.0 Repealing Clause
CMO No. 23-99, including all other orders and issuances, the provisions of which are
inconsistent herewith, are deemed revoked/superseded accordingly.
8.0 Effectivity
This Order shall take effect fifteen (15) days after its publication in two (2) newspapers
of general circulation.
Commissioner
--o0o--
Abolition of the Vehicle Importation Compliance Monitoring Unit
(VICMU) and Creating for the Purpose, the Electronic Certificate of
Payment and Clearance Unit (E-CPCU) Under the Office of the Commissioner
I. OBJECTIVES
1. To effect the electronic transmission of the Electronic Certificate of Payment/Clearance
(e-CPC) to the Land Transportation Office (LTO) through the e-CPC System.
590
2. To establish a databank on all imported motor vehicles.
3. To prevent customs fraud.
4. To carry into effect CMO No. 7-2009 implementing the Memorandum of Agreement
entered into by the LTO and the Bureau of Customs (BOC).
II. SCOPE
This Order shall cover all imported motor vehicles, parts and/or components that are
required to be registered with the LTO under existing laws, rules and regulations.
III. ADMINISTRATIVE PROVISIONS
1. The Vehicle mportation Compliance Monitoring Unit (VCMU) is hereby abolished and
in its stead, an Electronic Certificate of Payment and Clearance Unit (E-CPCU) is hereby
created under the Office of the Commissioner.
2. The E-CPCU shall have the following powers and functions:
2.1 Check and verify the encoded data.
2.2 Electronically transmit the e-CPC to the LTO through the e-CPC System.
2.3 Develop a database of all imported motor vehicles.
2.4 Review amendments to the e-CP for the approval of the Commissioner of
Customs.
2.5 Assign a verifier to conduct random check of the imported motor vehicle/s.
2.6 Submit to the Commissioner periodic reports on all motor vehicle importations
and status of tax liability, if any.
2.7 Provide the Computer-generated e-CPC print out.
2.8 Recommend issuance of orders as may be necessary to effectively perform
its functions.
2.9 Perform such other functions as may be directed by the Commissioner.
IV. OPERATIONAL GUIDELINES
1. All e-CPCs shall be electronically transmitted to the E-CPCU for clearance. f case of
certain errors or problems noted, the E-CPCU may encode the instruction in the remark
box of the E-CPCU and send the data back to the originating Port/Office/Unit by pressing
the RESEND button. f the e-CPC is verified correct, it shall be tagged as APPROVED
and the same shall be electronically transmitted to the LTO T System.
2. n case a discrepancy exists, the E-CPCU may verify the electronic data through its
verifier and take necessary actions which may consist of either requesting the non-regis-
tration, suspension, or non-renewal of the registration of therein covered motor vehicle.
V. REPEALING CLAUSE
All rules, regulations, orders and other issuances inconsistent herewith are hereby
deemed repealed or modified accordingly.
VI. EFFECTIVITY
Commissioner
--o0o--
Revision of the BOC Performance Management
System Under CMOs 13-2008, 6-2008, and 31-2002
--o0o--
Safeguard Investigation No. 01-2007 entitled: In the Matter of the
Second Year Final Extension of the Definitive General Safeguard
Measure Against the Importation of Ceramic Floor and Wall Tiles From
Various Countries (AHTN Code Nos. 6907.1910, 6907.9090, 6908.9011, 6908.9021,
6908.9029, 6908.9090) Ceramic Tile Manufacturers Association, Petitioner
--o0o--
592
Guidelines in the Allocation of Revenue Collection
Target and Submission of Financial Reports
SECTION 1. Objectives -
1.1 To provide a framework for rationally allocating revenue targets at all levels in the
Bureau of Customs;
1.2 To prescribe the duties and responsibilities of units, officials and employees pertaining
to allocation of revenue collection targets
SECTION 2. Allocation of Revenue Collection Targets
2.1 The allocation of revenue collection target shall be based on a system that is rational,
replicable, transparent and fair, and must mitigate any potential perverse incentives against
good performance and integrity among officials and employees. A rational revenue collec-
tion target allocation recognizes the following principles:
a. BOC revenues are determined by exogenous factors as well as efforts;
b. Exogenous factors may not remain constant during the year; and
c. Rational targets require quality verifiable information.
2.2 The allocation of revenue collection target within the Bureau shall be done at three (3)
levels as follows.
2.1.a Across Collection Districts which shall be allocated by the Commissioner
of Customs.
2.1.b Across Divisions, Subports, Sections and other component units under
each of the Collection District which shall be allocated by the concerned District
Collector of Customs.
2.1.c Across individual attritable personnel which shall be allocated by the
concerned Division Chief, Port Collector, Section Chief or Head of component
units.
2.3 The statistical procedure to be used in determining the collection target per district
shall involve the use of verifiable data to determine the relative contribution of these exog-
enous variables to the percentage change in collection per District/Office of the Commis-
sioner. Collection shall include duties, VAT, excise taxes and other revenues. The exog-
enous variables, shall include but may not be limited to the following:
2.3.1 mport Values
2.3.2 mport Volumes
2.3.3 Commodity composition of imports
2.3.4 Number of entries
2.3.5 Exchange rates
2.3.6 Number of personnel
2.3.7 Value of imports selected green, yellow and red
2.3.8 Value of duty-exempt imports (granted under various special laws and
trade agreements, e.g. (AFMA, CEPT-AFTA)
2.3.9 Tax Credits
2.3.10 Deferred payments
2.3.11 Value of containerized/bulk/break-bulk imports by commodity
2.3.12 Non-tax revenues such as fees and charges
2.3.13 Budget (PS, MOOE and CO)
2.3.14 Port infrastructure (buildings, equipment, facilities)
2.4 Data from any of these exogenous variables to be used in the replicable statistical
procedures must be verifiable and statistically significant in explaining collection perfor-
mance. Hence, it is important that these verifiable data are gathered from source in a
timely and accurate manner. For this purpose, all Collection Districts shall be required to
submit collated Reports as prescribed and attached to this Order. These Financial Re-
ports (FS) shall be submitted on a monthly basis to the Financial Service on or before the
5th day of each of the following month.
2.5 As far as practicable and dependent upon the availability of verifiable data, the same
statistical procedures using the same exogenous variables shall be applied to estimate
the revenue collection targets down to the division, subport, section, component unit of a
Collection District or even to the individual attritable personnel.
2.6 However, if the revenue collection target will be very difficult to allocate down to the
individual attritable personnel in the absence of verifiable data, each division/subport/sec-
tion/component unit may agree to share a collective or pooled target. (Example: f the
group that an attritable individual immediately reports to is a Section, Subport, Division,
Component Unit, then the target of that Section, Subport, Division, Component Unit shall
also serve as his or her target). This situation shall be reflected in their respective Perfor-
mance Commitment/Contract as per existing Performance Management System (PMS)
rules, regulations and procedures. Any new/reassigned personnel to the concerned Divi-
sion/Subport/Section/Component Unit shall assume this collective or pooled target.
2.7 The following roles and responsibilities shall be performed by the concerned office
insofar as allocation or revenue collection target is concerned:
2.7.1 Office of the District Collector of Customs - shall assign an individual or
team who shall be responsible in the gathering and timely submission of verifiable
data in accordance with prescribed format, conduct analysis of the districts
collection performance, prepare and submit the regular reportorial requirements
for the district and coordinate with other concerned offices, e.g. Financial Service
in matters relating to revenue collection monitoring.
2.7.2 Financial Service, RCMG - shall devise reporting format for the efficient
and effective collection of verifiable data from all revenue collecting units of the
594
Bureau; ensure completeness and accuracy of records-keeping and integrity
and quality of data gathered; undertake the statistical procedures needed to
implement the revenue collection target setting; and assist the Commissioner
in providing accurate information to the Development Budget Coordination
Committee (DBCC) for the proper allocation of Bureau revenue collection target.
2.7.3 nterim nternal Control Office (CO) - shall gather the revenue collection
target of each District, Subport, Division, Section, Component Unit, ndividual
Employee/Official as reflected in their respective OPES/PES/CESPES as inputs
to the revenue collection performance monitoring system.
2.7.4 MSTG - shall assist the Office of the District Collector, Financial Service
and the CO in the formulation of necessary automated allocation and monitoring
systems.
2.7.5 Lateral mplementation Committee - shall assist the Commissioner in the
discussion and review of the revenue collection target of the year both at the
DBCC level and within the Bureau during target allocation.
SECTION 3. Repealing Clause - All rules, regulations and orders inconsistent with
this Order are hereby repealed, rescinded or modified accordingly.
SECTION 4. Effectivity - This Order shall take effect immediately.
Commissioner
--o0o--
Provisional Safeguard Measures Against the
Importation of Steel Angle Bars from Various Countries
--o0o--
Thereby Amending Customs Memorandum Order No. 15-2009
dated April 13, 2009
1.0 OBJECTIVES
1.1 To ensure the effective and proper enforcement of the Tariff and Customs Code of the
Philippines, as amended (TCCP) and all other relevant laws, rules and regulations by
ensuring that only legitimate entities are accredited as importers;
1.2 To update, amend and or supersede CMO No. 15-2009 including all rules and regula-
tions relating to accreditation of importers issued by the Bureau of Customs (BOC);
1.3 To guard the interest of the government against abuse of accreditation privileges.
2.0 COVERAGE
This Order shall cover all importers except the following importations which are ex-
empt from the accreditation requirements under this Order but shall still be covered by
separate rules and regulations, such as CMO No. 39-2008 on the Client Profile Registra-
tion System (CPRS):
2.1 First and Last mportation for the year;
2.2 mportations by parcel post;
2.3 mportations covered by special laws, to wit:
2.3.1 mportations covered by the Special Economic Zone Act of 1995 (RA
7916);
2.3.2 mportations by enterprises covered by the Bases Conversion Development
Authority (RA 7227);
2.4 mportations of the Philippine Government, its agencies and instrumentalities;
2.5 mportations by foreign embassies, consulates, legations, agencies of other foreign
governments and international organizations with diplomatic status and recognized as
such by the Government of the Philippines, i.e. Asian Development Bank/World Health
Organization.
3.0 GENERAL PROVISIONS
3.1 All importers shall be required to file an application for accreditation in the prescribed
form as in Annex A* hereof, which shall be under oath.
3.2 n the case of first time applicants, the application form shall be supported by the
3.2.1 Mayors Permit and Barangay Clearance
3.2.2 BR TN Card and/or Vat (or Non-Vat) Certificate of Applicant
3.2.3 Valid D and Community Tax Certificate (CTC) of the applicant
3.2.4 For corporations, SEC Certificate of Registration, Articles of ncorporation
and By-laws and General nformation Sheet as may be applicable
3.2.5 For partnerships, SEC Certificate of Registration, Articles of Partnership
and By-laws
596
3.2.6 For cooperatives, Certificate of Cooperation issued by the Cooperative
Development Authority (CDA)
3.2.7 For sole proprietorships, proof of registration with the Department of
Trade and ndustry
3.2.8 2 x 2 pictures of the applicant with specimen signatures at the back
thereof
3.2.9 Audited Financial Statement for the past year, if applicable
3.2.10 BO Certificate of Registration if applicable
3.2.11 ncome Tax of the company, partners, proprietor/owner for the past year,
as may be applicable
3.2.12 Proof of ownership or lawful occupation (i.e. Contract of Lease) of the
business premises, as the case may be.
3.2.13 Proof of utility billing
3.2.14 Other documents or information that may hereafter be required, which
shall be covered by a supplemental CMO, Office Order or Memorandum to be
issued by the Commissioner of Customs from time to time.
The above documents shall be original copies or certified copies thereof. The
original copies may be required by the Customs Accreditation Secretariat (CAS)
for the purposes of comparison in case of doubt as to the authenticity of the
certified copies.
3.3 For renewal of accreditation, the application shall be supported by the following docu-
ments:
3.1.1 Affidavit of No Change of Circumstance (in case there are no material
changes in the applicants data and circumstances as appearing in the previous
accreditation)
3.1.2 Notarized Application Form with BCOR
3.1.3 Current Mayors Permit and Barangay Clearance
All the above documents shall be subject to the verification/certification
requirements mentioned under Section 2 hereof.
n case there are changes in the material information previously declared and
filed (as enumerated under Section 5.3 hereof), the applicant, in addition to the
above requirements except for 3.1.1 herein, shall instead submit an Affidavit of
Change of Circumstance clearly stating the facts constituting the changes,
together with the necessary documents in support thereof.
3.4 n case the applicant is a juridical personality, the application shall be filed by a re-
sponsible officer duly authorized by the corporation, partnership, cooperative or other simi-
lar entities in accordance with their respective governing laws, charter or by-laws, as the
case may be.
3.5 Any material representation in the application form as well as in any of the accompa-
nying documents will be a ground for the disapproval or cancellation of the accreditation as
the case may be.
3.6 Any variance between the facts/information in the required document and the present
circumstances of the applicant as well as any changes in the material information pertain-
ing to the applicant, i.e. business address occurring before the filing of the application
shall be immediately communicated and sufficiently explained to the CAS.
3.7 Failure to make the necessary notification/correction of the variance occurring before
the filing of the application shall be a ground for the disapproval thereof or for its revocation
if discovered thereafter.
3.8 All accreditations issued pursuant to this Order shall be valid for a period of one (1)
year, starting from the date of issuance appearing on the corresponding Certificate of
Accreditation.
3.9 Any importer whose accreditation has expired shall not be allowed to transact busi-
ness with the BOC. Therefore, all importers who intend to continue availing of the accredi-
tation privileges granted hereunder are required to file an application for the renewal of their
accreditations, complete with the documents required under paragraph 3 hereof at least
thirty (30) days prior to the date of expiration, as appearing in their respective Certificates.
3.10 Registration fee amounting to PHp1,000.00 for new applications and Php500.00 for
renewal shall be paid by the applicant to the BOC prior to the filing thereof with the Cus-
toms Accreditation Secretariat. For purposes of this Order, applications filed after thirty
(30) days from date of expiration shall be considered as new.
4.0 ADMINISTRATIVE PROVISIONS
4.1 All importers whose Head/Principal Offices are located in Metro Manila shall file their
notarized application form with the Customs Accreditation Secretariat created under CSO
No. 1-2006 as amended by CSO No. 19-2008.
4.2 All importers whose Head/Principal Offices are located outside Metro Manila shall file
the application with the CAS Satellite Office, or in case there is no such office in the area,
with the Office of the District Collector Port/Sub-port Collector under whose jurisdiction the
geographical location of the Head/Principal Office of the applicant(s) is/are situated.
4.3 Upon receipt of the application together with all the required documents under para-
graphs 2 and 3 of Section V hereof, the Executive Director, CAS shall immediately assign
the same to an inspector, who shall within seven (7) days conduct the inspection of the
business premises of the applicant for the purpose of verifying the following:
4.3.1 Existence of the applicant in the indicated place of business
4.3.2 Existence of the applicants office, plant or warehouse, as the case may
be
4.3.3 Actual business operations of the applicant or the impending
commencement thereof, as the case may be
4.3.4 Genuineness of the documents presented in support of the application
4.3.5 Other facts material to the application for accreditation
4.4 n the case of applications filed outside Metro Manila, the inspection shall be con-
ducted by CAS personnel stationed therein. Should there be no CAS Satellite Office in the
598
area the inspection shall be conducted by BOC personnel duly designated as such by the
concerned Collector of Customs.
4.5 After the inspection, the assigned inspector shall submit a report indicating his recom-
mendations on the application to the Executive Director, who shall immediately assign the
same to an evaluator, who shall in turn determine the following:
4.5.1 Legitimacy of the business operations of the applicant
4.5.2 Completeness of the documents required to be submitted hereunder.
4.5.3 Absence of a variance or misrepresentation of material facts on the part of
the applicant vis-a-vis the documents submitted.
4.5.4 Capability of the applicant to comply with customs rules and regulations
4.5.5 Other risk factors affecting the application.
4.6 The assigned evaluator, shall within seven (7) days submit a report together with his
recommendations to the Executive Director, who shall in turn determine whether or not to
give due course to the application.
4.7 n the case of the applications filed at the outports, the assigned inspector shall submit
a report with his recommendations to the concerned Collector of Customs, who shall
forward the same together with his own findings and recommendations to the Executive
Director, for the latters consideration and approval.
4.8 All verifications/inspections/evaluations to be undertaken in relation to the applications
shall be concluded not later than fifteen (15) days after receipt of the application. The
period of fifteen (15) days will not run if any the documents required herein are lacking. n
case of renewal of accreditation under Section 3.3 hereof, the CAS shall rule on applica-
tions within ten (10) days upon completion of all the documents required. Therefore, upon
the lapse of the ten (10) day period and there is no formal notice of any discrepancy or
insufficiency in the application, the same shall be considered approved without the need
for further action on the part of the concerned applicant.
4.9 However, upon accreditation of an VSP by the BOC, the inspection/verification activi-
ties mentioned in paragraphs 4.3 to 4.5 and 4.7 to 4.8 of this Section shall be performed by
said VSP.
5.0 SUPPLEMENTARY PROVISIONS
5.1 Importers Principal Place of Business - An importer shall at all times keep and main-
tain a principal place of business where he shall conduct his business operations. Said
principal place of business shall be duly declared with the CAS and supported with proper
governmental registrations and permits.
n case a building or place of business is being shared by the applicant with
another enterprise, each office space/warehouse, as far as practicable, must be suffi-
ciently delineated by permanent division and markers, so as to make the applicants office
readily identifiable, as determined by the CAS. n any event, the concerned applicants/
importers must justify the sharing and must show proofs that the lessors and/or building
administrators concerned are aware of such arrangement and covered by proper con-
tracts.
5.2 Misuse of Accreditation Privileges - An importer shall not use his accreditation privi-
leges for any unlawful or fraudulent transactions with the BOC. He shall not allow himself
to become a dummy of another importer or person for any unlawful and fraudulent customs
transactions nor permit the use thereof, directly or indirectly, by another importer or per-
son.
5.3 An accredited importer shall, within ten (10) days from the happening of the event,
inform the CAS of any change in the material information previously declared and filed,
such as, but not limited to the following:
5.3.1 Change of address, i.e. office address and/or warehouse address
5.3.2 Change of facsimile and/or telephone number/s
5.3.3 Change of Corporate Directors and Officers/Partners/Cooperative Directors
and Officers
5.3.4 Amendment/s to Articles of ncorporation/Partnership/Cooperation and
By-Laws, as approved by the appropriate government agencies
5.3.5 Dissolution or closure/stoppage of business
Failure to inform the CAS of the above circumstances shall be ground for the
immediate revocation/cancellation of the erring importers accreditation privileges.
Moreover, this shall give rise to a prima facie presumption that the concerned
importer has knowledge and the intention to use fraudulently his accreditation
privileges.
5.4 Any importer who deliberately files an import entry, knowing fully well that the corre-
sponding accreditation has expired shall subject the offending party and/or the imported
articles to the penalties provided for under the TCCP and other relevant customs laws,
rules and regulations, as the case may be.
f found guilty, the importers accreditation privileges shall also be immediately revoked/
cancelled without prejudice to other legal actions that the BOC may take under the
circumstances. Moreover, he shall no longer be allowed to renew the same, unless otherwise
provided.
5.5 False and/or Misleading Information - An importer or his authorized representative
shall not file or submit any document, affidavit, or other paper-known by him to be false and
fraudulent, nor shall he knowingly give, submit, solicit or procure the giving of, any false or
misleading information relative to his accreditation application. Otherwise, his accredita-
tion application shall be disapproved; or, if uncovered thereafter, his accreditation privileges
shall be immediately revoked/cancelled.
6.0 TRANSITORY PROVISIONS
All accreditations issued under CMO Nos. 23-99 and 15-2009 shall remain to be valid
and governed by the same Orders until the date of expiration thereof as indicated in their
respective certificates.
600
7.0 REPEALING CLAUSE
CMO No. 15-2009, including all other orders and issuances, the provisions of which
are inconsistent herewith, are deemed revoked/superseded accordingly.
8.0 EFFECTIVITY
This Order shall take effect fifteen (15) days after its publication in two (2) newspapers
Adopted: 01 June 2009
Commissioner
--o0o--
Amended Guidelines and Procedures for Implementing BOC-PEZA
Joint Memorandum Order No. 03-2002 dated 27 July 2002
The following amendments to Customs Memorandum Order No. 41-2002 on the
guidelines and procedures for implementing BOC-PEZA Joint Memorandum Order No. 03-
2002 is hereby prescribed for the effective resumption of the implementation of the Automated
Cargo Transfer System (ACTS) at the Mactan-Cebu nternational Airport (MCA) and the
Cebu nternational Port (CP).
1. Scope
1.1 This Order shall have the same scope as CMO 41-2002.
2. General Provisions
2.1 For declaration and cargo transfer purposes, the particulars of import
shipments falling under and within the scope of this Order shall be fully declared
using the ERD-Transit (Mode of Declaration 8 8), which shall be in lieu of the
following documents: CEWE, Transshipment Permit, Transit Cargo Manifest,
Boatnote, Mission Order and telegram. The previously mentioned documents
shall no longer be required.
2.2 Ecozone Enterprises shall lodge the ERD-Transits (henceforth, referred to
as Transit Declarations for simplicity) using the Single Administrative Document
of Phase 1 e2m Customs (PSAD) through BOC-Accredited Value Added Service
Providers (VASP) in compliance with CMO 19-2007, Lodgment of Entries Through
VASPs. Manual submission of Transit Declarations shall no longer be allowed.
2.3 Ecozone Enterprises shall submit, with the Transit Declaration, the following
supporting documents:
2.3.1 Air Waybill/Bill of Lading
2.3.2 Commercial invoice or equivalent verifiable document
2.3.3 Packing List (for multiple package shipments)
2.3.4 Valid PEZA mport Permit with a barcode
2.3.5 mport Clearances/Permits from concerned government regulatory
agencies, if the imported commodity requires one
2.4 The PEZA Section of the CPCO shall scan the barcode of the mport Permit
presented as a supporting document to the transit declaration.
2.4.1 Upon retrieval of the electronic mport Permit from the AP database by
scanning the barcode, the PEZA staff compares the presented mport Permit
with the copy displayed on the screen.
2.4.2 f the details matching, the PEZA staff tags the electronic mport
Permit as USED on-line. The same P cannot be presented as supporting
document for a new Transit Declaration.
2.5 Only Ecozone enterprises and customs brokers with active registration in
ACOS can lodge electronic Transit Declarations.
2.6 Ecozone Enterprises shall post with the Bonds Division or equivalent office
at the Port of Mactan, a Surety Bond issued by a surety company accredited
by the BOC at the port of Mactan, to serve as guarantee of payment of taxes
and duties. Upon acceptance by the Bonds Division or equivalent office, the
acceptance document shall be submitted to CPCO Customs Section, for their
reference during the transit declaration processing.
2.6.1 The value of the Surety Bond shall be equivalent to the average duties
and taxes due on importations of the Ecozone Enterprise for a period of 3 days,
based on the total duties and taxes due on its actual importations during the
three-month period immediately prior to its posting of the surety bond.
2.6.2 The Surety Bond shall be accompanied by a Certification under Oath
of the Ecozone Enterprise/s mport/Export Manager or responsible official
attesting to the accuracy of the computation for the basis of the surety bond.
Likewise, another certification shall be submitted to the CPCO within a week of
the end of a semester.
2.6.3 The BOC may require an Ecozone Enterprise to increase the value of
its Surety Bond at the end of a semester, upon determination of a significant
increase in the level of its actual importations (as against the level of past
importations used in the determination of the amount of its surety bond), in
order to ensure that its surety bond provides adequate coverage of taxes and
duties due on its current importations.
602
2.6.4 The initial Surety Bond to be posted by Ecozone Enterprises shall be
valid until 31 December 2009.
2.6.5 As clarified in the Memorandum of the Commissioner of Customs
dated 16 October 2001, the Surety Bond shall operate as a One-Time Bond,
the filing of which is deemed compliant with the provisions of JMO No. 1-2001
dated 24 August 2001.
2.7 Ecozone enterprises shall pay the BOC Cargo Transfer Fees (composed of
Transit Service Fee and mport Processing Fee) for their transit goods by
automatic debit from Pre-Payment Accounts they have established in the bank/
branch designated by the Collector of the Port of Mactan in accordance with
CMO 8-2005. An ecozone enterprise may open several pre-payment accounts,
nominating any one of these accounts in the transit declaration.
2.8 For tax and duty-exempt import shipments arriving by sea at the CP, the
transit declaration shall be electronically lodged with the Port of Mactan through
the VASP. Processing at the Mactan CPCO for such shipments shall be no
different from processing of shipments discharged at CMA.
2.8.1 The duly authorized representative of the Ecozone Enterprise shall
bring Copy #2 (mporters Copy) and Copy #7 (Delivery Permit) of the ERD
Transit Declaration after completing processing at CPCO Mactan, to the Deputy
Collector for Operations of CP. The Deputy Collector of CP shall check the
authenticity of the documents using Automated Customs Operations System
(ACOS) before giving the approval for release.
2.9 For an import shipment containing goods not covered by the tax and duty-
exemption incentive granted by PEZA to an Ecozone Enterprise, the duly
authorized representative of the Ecozone Enterprise shall file for an amendment
of the manifest at the port of discharge so that separate entries (bills of lading/
AWBs) can be issued to cover goods and materials covered by the tax and
duty-exemption incentives and those that are not covered by the incentive.
3. ADMNSTRATVE PROVSONS
3.1 The CPCO shall be reconstituted and established at the Customs Office in
the Mactan Economic Zone PEZA Office.
3.2 The CPCO shall be constituted solely by Customs and PEZA staff.
3.3 PEZA shall be responsible for maintaining the connectivity of the CPCO to
the Customs ACOS network.
4. REPEALNG CLAUSE
CMO 41-2002 and all other Customs orders, rules and regulations or parts thereof
which are inconsistent with this Order are hereby deemed repealed or modified accordingly.
5. EFFECTVTY
This Order shall take effect fifteen (15) days after publication in a newspaper of general
circulation.
Commissioner
BUREAU OF IMMIGRATION
Memorandum Circular No. MCL-09-001-A
Amending Memorandum Circular No. MCL-09-001 dated 18 February 2009
providing the Implementing Rules and Regulations for Executive Order
No. 758 dated 04 February 2009, entitled Prescribing the Guidelines for
Issuance of Special Visa for Employment Generation to Certain Individuals
and Under Special Circumstance
SECTION 1. Section 2 of Memorandum Circular No. MCL-09-001 is hereby amended
to read as follows:
Section 2. To Whom Issued - (A) Subject to restrictions imposed by the
Constitution and existing laws on control, nationality and/or ownership of working
capital, a SVEG shall be issued to a foreigner or foreigners with interests in an
entity, firm, partnership or corporation that establishes, expands or rehabilitates
a business activity, investment, enterprise or industry for every ten (10) full-
time/regular Filipino workers who are actually employed by such entity, firm,
partnership or corporation on a long-term basis in the Philippines.
(B) Foreigners exercising managerial functions in an entity, firm, partnership or
corporation, that has the power to hire, dismiss and promote employees provided
that they are nominated and their applications for SVEG are endorsed by such
entity, firm, partnership or corporation subject to the employment requirement
in paragraph (A) hereof.
SECTION 2. Section 14 of the same Circular is likewise amended to read as follows:
Section 14. Registration and Documentation. Issuance of ACR I-Card
and Identification Certificate. Multiple Entry Privileges and Conditional
Stay - The Notice of Approval shall direct the alien to report, without need of
prior departure from the Philippines, for registration and documentation at the
BI. An Alien Certificate of Registration (ACR) I-Card and an Identification
Certification (I.D.) shall be issued upon payment of appropriate fees. The A.C.R
I-Card and I.D. shall indicate, among others, as follows:
604
Status Adjusted Without Departure as a Special Non-Immigrant with Multiple
Entry Privileges and Conditional Stay in the Philippines under E.O. No. 758
(Series of 2008 in relation to C.A. No. 613, Section 47 (a) (2) under BI Control
No. ____.
SVEG holders are exempt from securing Special Return Certificates
and Exit Clearance Certificates; Provided, that they are not included in
the BI Blacklist, Watchlist and Hold Departure List; Provided further, that
they are required to pay annual report fees every first sixty (60) of every
year under the Alien Registration Act of 1950, as amended.
SECTION 3. This Memorandum Circular shall become effective immediately upon
its publication in the newspaper of general circulation.
Let copies of this Memorandum Circular be filed with the Office of the National
Administrative Register (ONAR) at the UP Law Center, UP Complex, Diliman, Quezon
City.
(SGD.) MARCELNO C. LBANAN
Commissioner
Approved by:
(SGD.) HON. RAUL M. GONZALEZ
Secretary, Department of Justice
Padre Faura, Manila
BUREAU OF INTERNAL REVENUE
Revenue Regulations No. 5-2009
Reverting the Venue for the Filing of Returns and Payment
of Capital Gains Tax, Creditable Withholding Tax and Documentary
Stamp Tax Due on Sale, Transfer or Exchange of Real Property of
Large Taxpayers to the Place Where the Property is Located
SECTION 1. Scope - Pursuant to Section 244 of the National nternal Revenue Code
of 1997, as amended, in relation to Sections 27(A), 27 (D)(5), 57 (A), 57 (B), 196 and 245
(j) thereof, these Regulations are hereby promulgated in order to revert the venue for the
filing of returns (i.e., capital gains tax returns, creditable withholding tax returns, and docu-
mentary stamp tax returns) and payment of taxes due on onerous transfers of real proper-
ties owned by large taxpayers to the Authorized Agent Banks (AABs) located within the
Revenue District Office (RDO) having jurisdiction over the place where the property being
transferred is located.
SEC. 2. Policy Statement - Pursuant to the provisions of Revenue Regulations No. 8-
98, the venue for the filing of returns and payment of taxes due on onerous transfers of real
properties for all taxpayers, including large taxpayers, is generally determined by the
place where the property being transferred is located.
Sometime last year, Revenue Regulations No. 4-2008, was promulgated effectively
amending Revenue Regulations No. 8-98 but only in respect to the venue for the filing of
returns and payment of taxes of real estate transactions of large taxpayers. This amend-
ment was envisioned to improve the efficiency in servicing the needs of the large taxpayers
by centralizing the processing of their real estate transactions in the concerned Large
Taxpayers Office where they are registered, thereby doing away with the procedure of
having to secure the Certificate Authorizing Registration (CAR)/Tax Clearance Certificate
(TCL) from the various RDOs where the respective real properties are located.
However, during the implementation and with the recent delisting and enlisting of tax-
payers who are to be classified as large taxpayers, it has been recognized that such
differing rule has caused confusion to those who have been de-classified as large taxpay-
ers, as well as those who have be recently enlisted as such.
n order to provide uniformity in the processing of real estate transactions of taxpay-
ers, whether large or non-large taxpayers, and that ocular inspection of the subject real
property can be performed expediently prior to the issuance of the CAR/TCL, the venue for
the filing of tax returns and payment of the taxes due thereon (i.e., CGT/CWT/Regular
ncome Tax/DST) on real properties owned by large taxpayers, including securing of CAR/
TCL, is hereby reverted to the jurisdiction of the concerned RDO where the real property
concerned is located.
SEC. 3. Time and Place of Payment of Capital Gains Tax (CGT) and Documentary
Stamp Tax (DST) on the Sale, Exchange or Disposition of Real Properties Classified as
Capital Assets - Within thirty (30) days following each sale, exchange or disposition of
lands and/or buildings which are not actually used in the business of a corporation and are
treated as capital assets, the Capital Gains Tax Return (BR Form No. 1706) shall be filed
by the seller or the buyer and payment of taxes made to an AAB located within the RDO
having jurisdiction over the place where the property being transferred is located based on
the gross selling price or fair market value as determined in accordance with Section 6 (E)
of the Tax Code, whichever is higher, of such lands and/or buildings.
The corresponding Documentary Stamp Tax Return (BR Form No. 2000-OT) shall be
filed within five (5) days after the close of the month when the taxable document was
made, signed, accepted or transferred, and the tax due thereon shall be paid at the same
time the aforesaid return is filed with the AAB having jurisdiction over the place where the
property being transferred is located based on the consideration contracted to be paid for
such realty or on its fair market value determined in accordance with Section 6 (E) of the
Tax Code, whichever is higher.
The above rules apply whether the seller/transferor thereof is a large taxpayer or a non-
large taxpayer.
These rules on the venue for the filing of the returns and payments of taxes due on real
properties onerously disposed shall likewise apply in cases of taxable foreclosure sales.
606
SEC. 4 Time and Place of Payment of Creditable Withholding Tax (CWT) and Docu-
mentary Stamp Tax (DST) on the Sale, Exchange or Disposition of Real Properties Clas-
sified as Ordinary Assets - Creditable withholding taxes (CWT) deducted and withheld by
the withholding agent/buyer on the sale, transfer or exchange of real property classified as
ordinary asset, shall be paid by the withholding agent/buyer upon filing of the CWT Return
(BR Form No. 1606) with the AAB located within the RDO having jurisdiction over the
place where the property being transferred is located within ten (10) days following the end
of the month in which the transaction occurred subject, however, to the specific rules
prescribed by RR 2-98, as amended, and the rules prescribed under the EFPS regula-
tions, in case the taxpayer is an EFPS taxpayer.
The corresponding Documentary Stamp Tax Return (BR Form No. 2000-OT) shall be
filed within five (5) days after the close of the month when the taxable document was
made, signed, accepted or transferred, and the tax due thereon shall be paid at the same
time the aforesaid return is filed with the AAB having jurisdiction over the place where the
property being transferred is located based on the consideration contracted to be paid for
such realty or on its fair market value determined in accordance with Section 6(E) of the
Tax Code, whichever is higher.
The above rules apply whether the seller/transferor thereof is a large taxpayer or a non-
large taxpayer.
These rules on the venue for the filing of the returns and payments of taxes due on real
properties onerously disposed shall likewise apply in cases of taxable foreclosure sales.
SEC. 5 Issuance of Certificate Authorizing Registration (CAR)/Tax Clearance Certifi-
cate (TCL) - Upon presentation of the Capital Gains Tax Return or Creditable Withholding
Tax Return and Documentary Stamp Tax Return with a bank validation evidencing full
payment of the capital gains tax or the expanded creditable withholding tax and documen-
tary stamp tax due on the sale, transfer, barter, exchange or other disposition of real
property classified as capital or ordinary asset, as the case may be, the RDO of the
revenue district office where the property being transferred is located shall issue the corre-
sponding Certificate Authorizing Registration (CAR) or Tax Clearance Certificate (TCL) for
the registration of the real property in favor of the transferee.
n the case of sale or transfer of ordinary assets, it shall be the responsibility of the
RDO issuing the CAR/TCL to notify the RDO having jurisdiction over the place of business
of the seller to conduct an immediate post-audit of the Quarterly ncome Tax Return and
the Quarterly VAT Return of the seller to ensure that correct taxes (i.e., income tax, value
added tax (if applicable), and documentary stamp tax) have been fully paid on that sale of
real properties considered as ordinary assets of the company.
Furthermore, the Revenue Office in the RDO issuing the CAR/TCL shall indicate on
the reverse side of all the copies of the document of sale or exchange or transfer the
details of information indicated in the CAR, to wit: CAR Number, Date of CAR, Title Num-
ber of the Property, Classification of the Property, Location of the Property, Area of the
Property, Selling Price, Fair Market Value, Type of Taxes Paid (i.e., whether capital gains
tax or expanded withholding tax, documentary stamp tax, Amount of Taxes Paid, the
Official Receipt Number/Validation Number and the Date of the Official Receipt/Date of
Payment/Date of Validation. Thus, before the CAR/TCL is released to the taxpayer, all the
copies of the document of sale/exchange or transfer shall first be presented to the as-
signed revenue officers who shall indicate at the back of said documents the information
contained in the CAR/TCL as herein required.
The CAR/TCL shall be signed by the Revenue District Officer of the district having
jurisdiction over the place where the property is located. The CAR/TCL as issued by the
RDO shall have a validity period of one (1) year for purposes of presenting the same to the
Register of Deeds. n case of failure to present the same to the Register of Deeds within
the one-year validity period, the same may still be revalidated, but the total period of
validity cannot exceed two years counted from the date of issuance of the CAR/TCL.
Revalidation shall be done by stamping the phrase Revalidated on ____, to expire on
____, after validating the authenticity and validity of the old CAR/TCL sought to be revali-
dated. Thus, given the periods set herein, the CAR/TCL, upon issuance, shall have to be
presented to the Register of Deeds within a maximum period of not more than two (2)
years; otherwise, the CAR/TCL shall be deemed permanently expired and therefore of no
effect. New returns and proof of tax payments shall be needed to produce a new CAR/TCL.
n no instance shall the Register of Deeds honor a CAR/TCL with erasures or alter-
ations.
SEC. 6 Validity of Revenue Regulations No. 24-2002 - The provisions of Revenue
Regulations No. 24-2002 prescribing the information to be periodically submitted by the
Land Registration Authority (LRA), the Register of Deeds and the Assessors Office to the
Bureau of nternal Revenue relative to the transfers of real properties; the specific information
that must be annotated, either by the RDO or the Register of Deeds, to certain documents;
and the manner of issuance, recording and monitoring of the Certificate Authorizing
Registration (CAR), in order to ensure that all internal revenue taxes due on transfers of
real property have been paid and remitted to the Government, as well as the responsibility
of the Register of Deeds as provided for in the said Regulations, shall all remain valid and
effective.
SEC. 7 Transitory Provision - The following rules shall apply with respect to real
estate sale transactions of large taxpayers prior to the effectivity of these Regulations:
The following rules shall apply with respect to real estate sale transactions of large
taxpayers prior to the effectivity of these Regulations:
(1) For real estate sale transactions of large taxpayers on cash basis or deferred
payment sale not on installment plan basis (i.e. payments in the year of sale exceed 25%
of the selling price) where the capital gains tax or expanded creditable withholding tax, as
well as documentary stamp tax returns have already been filed with and taxes due thereon,
if any, have already been paid to the concerned LTS Office, the corresponding CAR/TCL
shall remain to be processed and issued by the said LTS Office even upon issuance of
these Regulations;
(2) For real estate sale transactions of large taxpayers on installment basis, (i.e.
payments in the year of sale do not exceed 25% of the selling price):
608
a. Where there is already full payment of the full consideration of the real
property bought under installment basis, and the corresponding returns have
already been filed and taxes due thereon, if any, have already been fully paid to
the concerned LTS Office, the corresponding CAR/TCL shall remain to be
processed and issued by the said LTS Office even upon issuance of these
Regulations;
b. Where there is no full payment yet of the full consideration of the real
property bought under installment basis as of the effectivity of these Regulations,
the remaining installment payment of taxes due as of the effectivity hereof shall
begin to accrue to the RDO where the property is located, which shall be
responsible for processing and issuing the TCL/CAR.
Pertinent documents submitted as well as tax returns relative to prior tax payments
made to the concerned LTS Office shall then be endorsed by said concerned LTS Office to
the RDO where the property is located, which shall consolidate the same with those filed
with and paid to its District Office for purposes of determining whether there has been full
payment of the taxes and due and full compliance with the documentary requirements laid
down by law and regulations prior to the issuance of the CAR/TCL.
SEC. 8. Repealing Clause - All revenue rules and regulations and parts thereof incon-
sistent with the provisions of these Regulations are hereby amended, modified, or revoked
accordingly.
SEC. 9. Effectivity Clause - These Regulations shall take effect fifteen (15) days after
publication in any newspaper of general circulation.
Recommending Approval:
(SGD.) SXTO S. ESQUVAS V
Commissioner of Internal Revenue
--o0o--
Amending the Provisions of Section 24 of Revenue Regulations No. 3-2006
Pertaining to the Incremental Revenue Under Republic Act No. 9334
SECTION 1. Scope - Pursuant to the provisions of Section 244, in relation to Section
245 of the National nternal Revenue Code (NRC) of 1997, as amended, these Regulations
are hereby promulgated to amend certain provisions of Section 24 of Revenue Regulations
No. 3-2006 pertaining to the allocable share of the Philippine Health nsurance Corporation
and the Department of Health in the annual incremental revenue in accordance with the
provisions of Republic Act No. 9334.
SECTION 2. Amending Provisions - Section 24 of RR No. 3-2006 is hereby amended
to read as follows:
SEC. 24. ncremental Revenue Under the Act - For purposes of allocation of
the two and one-half percent (2.5%) of the annual incremental revenue collection
under the Act, each in favor of the Philippine Health nsurance Corporation
(PHC) and the Department of Health (DOH) for the next five (5) years from the
date of effectivity of the Act, the BR and the BOC shall submit to the Department
of Finance (DOF), on or before April 30 of the year immediately following the
year of collection, a sworn report of their respective annual incremental revenue
collected from locally manufactured and imported alcohol and tobacco products,
respectively, that were remitted to the Bureau of Treasury. The said sworn
report shall be submitted by the DOF to the Department of Budget and
Management (DBM), copy furnished the PHC and the DOH, on or before May
31 of each year.
For purposes of these Regulations, the incremental revenue shall be equivalent
to the amount of actual collection of excise taxes from locally manufactured
and imported alcohol and tobacco products for the year under consideration in
excess over that of the immediately preceding year for the next five (5) years
from the date of effectivity of the said Act or starting January 2005 until December
2009.
SECTION 3. Effectivity - These Regulations shall take effect after fifteen (15) days
following publication in leading newspapers of general circulation.
--o0o--
Amending Further Revenue Regulations No. 9-2001, as
Amended by RR No. 2-2002, RR No. 9-2002, RR No. 26-2002, RR No. 5-2004,
and RR No. 10-2007 Expanding the EFPS Coverage to Include the
Top 20,000 Private Corporations Duly Identified Under RR No. 14-2008
SECTION 1. Scope - Pursuant to the provisions of Section 244 of the National nternal
Revenue Code of 1997 (Code), in relation to Section 27 of Republic Act No. 8792, other-
wise known as the Electronic Commerce Act, these Regulations are hereby promulgated
to amend Section 3 of RR No. 9-2001, as last amended by RR No. 10-2007, by further
610
expanding the coverage of taxpayers who shall file and/or pay through the EFPS to include
the top 20,000 private corporations duly identified under RR No. 14-2008.
SEC. 2 Coverage - SEC. 3 of RR No. 9-2001, as last amended by RR No. 10-2007, is
hereby further amended to read as follows:
Section 3. Coverage. ---
xxx xxx xxx
3.2 Non-large taxpayers. - The following Non-Large Taxpayers including their
branches located in the computerized revenue district offices shall file their
returns and pay their taxes thru EFPS, to wit:
3.2.1 The volunteering two hundred (200) or more Non-Large Taxpayers
xxx xxx xxx
3.2.2 Non-Large taxpayers belonging to the top 20,000 private corporations
duly identified under RR No. 14-2008 and notified by the Commissioner as
such shall make use of the EFPS in filing their returns and in paying their taxes
due thereon. Returns of said non-large taxpayers shall include those of their
branches, provided, they are located in the computerized revenue district offices.
The provisions hereof shall apply to returns to be filed starting April 1, 2009.
3.3. Other Taxpayers -
xxx xxx xxx
SEC. 3. Repealing Clause - The provisions of other revenue issuances inconsistent
herewith are hereby repealed, modified or amended accordingly.
SEC. 4. Effectivity Clause - These Regulations shall take effect on April 1, 2009, or
after fifteen (15) days following publication in a newspaper of general circulation, whichever
comes later.
--o0o--
Revenue Memorandum Circular No. 18-2009
Acceptance and Reporting of Tax Returns and Payments
This Circular is being issued to amend Revenue Memorandum Circular No. 67-2008
dated August 14, 2008 in order to clarify the prescribed date of collection of all accepted
tax returns and payments, including payments thru checks received by Authorized Agent
Banks (AABs) after cut-off time/clearing time.
As a general rule, all accepted tax returns and payments received shall be validated
and reported by the AABs on the day of acceptance or transaction. The date of collection
in the Batch Control Sheet (BCS) report should be the actual day when the return was filed
and the payment was made. However, tax returns filed with check payments made by
the taxpayers after the AABs cut-off time/clearing time shall be accepted, stamped
Received After Cut-off Time/Clearing Time and validated on the actual day of
acceptance or transactions. The filing date that should appear in the filed returns should
be the actual day of filing thereof but the amount of taxes collected thru checks after the
cut-off time/clearing time shall be reported in the BCS as collection of the AAB for the
following working day. All BCS, together with the supporting tax returns, shall be
submitted to the concerned BR Offices on time and in accordance with the existing proce-
dures.
All concerned are hereby enjoined to be guided accordingly and to give this Circular as
wide a publicity as possible.
--o0o--
Revenue Memorandum Circular No. 22-2009
Clarifying the Allowable Claims for Personal and Additional
Exemptions and Optional Standard Deduction (OSD) Pursuant to
Revenue Regulations Nos. 10-2008 and 16-2008, Respectively
n the implementation of Republic Act No. 9504, Revenue Regulations Nos. 10-2008
and 16-2008 were issued to determine correctly the amounts of allowable claim for exemp-
tions and optional standard deduction, respectively. nasmuch as the law was approved on
June 17, 2008, the increased personal and additional exemptions for individuals and the
40% OSD for individual and corporate taxpayers cannot be claimed in full for taxable year
2008.
For individuals, the increased personal and additional exemptions shall be appor-
tioned for 2008 in accordance with the rules prescribed under RR No. 10-2008, and the
amounts of transitory personal and additional exemptions which shall be used are those
presented at the back of the new Annual ncome Tax Return for Self-Employed ndividuals,
Estates and Trusts [BR Form 1701-July, 2008 (ENCS)]. For the period from January to
June 2008, the OSD that can be claimed against business income by individuals, shall
only be 10% of gross income (i.e., the amount remaining after deducting cost of sales from
612
gross sales or gross receipts) while for the period covering July 1, 2008 to December 31,
2008, the rate of deduction shall be a maximum of 40% of gross sales or gross receipts,
which are net of returns, discounts and allowances. n case the taxpayers gross sales or
receipts reflect his total income for the whole year of 2008 and such cannot be identified to
a specific month, the total OSD shall be computed based on 10% of 50% of gross income
plus 40% of 50% of gross sales or receipts.
For corporations that opt to use the OSD method of deduction, the 40% OSD based
on gross income shall be applied only for the period beginning July 1, 2008 while the
method of deduction for the prior period of the taxable year shall remain to be under the
itemized deduction.
Taxpayers shall observe the foregoing guidelines in the preparation of their 2008 in-
come tax returns in case no returns have yet been filed. Those who have made an error or
inadvertence on their returns filed have until July 15, 2009 to amend their returns and pay,
without need of demand, the deficiency basic income tax with no penalties, based on the
authority of the Commissioner to abate or cancel a tax liability in accordance with Section
204 (B) of the 1997 Tax Code, as amended.
All concerned are enjoined to be guided accordingly and to give this Circular a wide
publicity as possible.
--o0o--
Revenue Memorandum Order No. 12-2009
Enjoining the Strict Implementation of the Penalty Provisions for the Non-
Submission of Quarterly Summary Lists of Sales and Purchases
I. Background
The Value Added Tax System, as it is being implemented in the Philippine setting,
calls for the submission of Summary Lists of Sales and Purchases, wherein taxpayers
declare their taxable sales and purchases for prescribed periods. Such submission is
mandated under Revenue Regulations (RR) No. 8-2002 (June 13, 2002), and as incorpo-
rated in RR No. 16-2005 (October 19, 2005), as amended.
A review of the degree of taxpayer compliance with these regulations has disclosed,
however, that less than thirty percent (30%) of registered VAT taxpayers who are required
to submit such information have actually complied with this requirement. Further inquiry
into this issue has shown that, in general, these taxpayers prefer to forego the submission
of such data, and instead, simply pay the very modest compromise penalty of One thou-
sand pesos (P1,000.00).
These findings show that violation of RR No. 8-2002 is rapidly becoming rampant, and
as such, the Bureau is effectively rendered unable to verify an increasingly large volume of
taxable sales and purchases. The revenue foregone under such circumstances is virtually
incalculable, and would have served to significantly reduce the Bureaus collection short-
falls in recent years. Moreover, such incidences are a troubling indication of indirect tax
evasion, if not outright tax avoidance, by an increasingly larger proportion of business
taxpayers.
n this regard, the Bureau must take the necessary steps to strongly exhort taxpayers
to increase their voluntary compliance with this basic requirement of the tax system.
II. Objective
This Order is being issued to:
1. Strengthen enforcement activities and operations against non-compliant taxpayers;
2. Strictly implement the penalty provisions for the non-submission of the Summary Lists
of Sales and Purchases; and,
3. ncrease voluntary compliance of taxpayers and enhance revenue collections.
III. Policies
1. Every failure by a taxpayer who, under established revenue rules and regulations, is
required to submit the required Summary List of Sales and/or Summary List of Purchases,
in the prescribed format for a particular period, or submits erroneous/incomplete/falsified
information in a particular Summary List, shall be considered as grounds for the issuance
of a Subpoena Duces Tecum by the Bureau office concerned to the taxpayer, mandating
the immediate submission of the said documents.
2. Upon submission of the required Summary Lists in compliance with the Subpoena
Duces Tecum, the concerned taxpayer shall also be required to pay a compromise pen-
alty in the amount of Ten Thousand pesos (P10,000) for each non-submission of the
required Summary Lists of Sales and Purchases.
3. n the event that a taxpayer should continue to fail to submit the required Summary Lists
in compliance with a duly-issued Subpoena Duces Tecum, such non-submission shall
be tantamount to failure to supply correct and accurate information under Section 255 of
the National nternal Revenue Code. Consequently, the Revenue District Officer concerned
shall initiate the necessary administrative and judicial action with the end in view of impos-
ing the corresponding administrative and criminal penalties in accordance with the said
Section, to wit:
SEC.255 Failure to File Return, Supply Correct and Accurate Information,
Pay Tax, Withhold and Remit Tax and Refund Excess Taxes Withheld
on Compensation - Any person required under this Code or by rules and
regulations promulgated thereunder to pay any tax, make a return, keep any
record, or supply correct and accurate information, who willfully fails to pay
such tax, make such return, keep such record, or supply such correct and
accurate information, or withhold or remit taxes withheld, or refund excess
taxes withheld on compensation, at the time or times required by law or rules
614
and regulations shall, in addition to other penalties provided by law, upon
conviction thereof, be punished by a fine of not less than Ten Thousand pesos
(P10,000) and suffer imprisonment of not less than one (1) year but not more
than ten (10) years.
Any person who attempts to make it appear for any reason that he or another
has in fact filed a return or statement, or actually files a return or statement and
subsequently withdraws the same return or statement after securing the official
receiving seal or stamp of receipt of an internal revenue office wherein the same
was actually filed shall, upon conviction therefor, be punished by a fine of not
less than Ten Thousand pesos (P10,000) but not more than Twenty thousand
pesos (P20,000) and suffer imprisonment of not less than one (1) year but not
more than three (3) years. (talics and underscoring supplied).
4. n the case of corporations that fail to submit their Summary Lists of Sales
and Purchases, the corporate officers and employees of the corporation
concerned shall be held criminally liable for such failure, in accordance with
Section 256 of the Tax Code, as stated hereunder:
SEC. 256. Penal Liability of Corporations - Any corporation, association or
general co-partnership liable for any of the acts or omissions penalized under
this Code, in addition to the penalties imposed herein upon the responsible
corporate officers, partners, or employees shall, upon conviction for each act or
omission, be punished by a fine of not less than Fifty Thousand pesos (P50,000)
but not more than One Hundred Thousand Pesos (P100,000.00). (talics
supplied.)
IV. Repealing Clause
All other issuances and/or portions thereof that are inconsistent herewith are hereby
repealed, modified or amended accordingly.
V. Effectivity
CEBU PORT AUTHORITY
CPA Memorandum Circular No. 07-A
Erratum for Section 2.3 of Memorandum Circular No. 07-2008
(Tariff Increase for Foreign Cargo-Handling)
To correct the error in the schedule of implementation of the third tranche of tariff
increase for foreign cargo-handling services, the following erratum is hereby issued for
CPA Memorandum Circular No. 07-2008 for the guidance of all concerned:
SECTION 1. Erratum for Sec. 2.3 of CPA MC 07-2008 - Subsection 2.3 of Section 2
of CPA MC 07-2008 (Schedule of mplementation) which reads:
2.3 Third Tranche - 5% increase of the base rate effective 01 August 2011.
is hereby corrected to read as follows:
2.3 Third Tranche - 5% increase of the base rate effective 01 January 2011.
SECTION 2. Repealing Clause - All CPA rules and regulations, policies, guidelines,
memoranda or circular inconsistent herewith are hereby repealed accordingly.
SECTION 3. Effectivity - This curative circular takes effect immediately after two (2)
publications in a newspaper of general circulation.
Adopted: 09 Jan. 2009
(SGD.) ANGELO C. VERDAN
General Manager
--o0o--
CPA Memorandum Circular No. 07
Tariff Increase in Foreign Cargo-Handling Services
SECTION 1. Rate of Tariff Increase - Pursuant to CPA Board Resolution No. 356-
2008 adopted during the 39th Special Board Meeting of the Cebu Port Commission dated
10 December 2008, a tariff increase of 21% for the existing foreign cargo handling charges
is hereby approved per Schedule of mplementation attached hereto as Annex A*.
Likewise, in the interest of optimizing berth utilization and minimizing berth conges-
tion, the policy on standby charges is hereby amended and shall be imposed after the first
two (2) hours from the docking of the vessel.
SECTION 2. Schedule of Implementation - The 21% tariff increase in foreign cargo-
handling services shall be implemented on a staggered basis, as follows:
2.1 First Tranche - 10% increase effective 01 January 2009;
2.2. Second Tranche - 6% increase of the base rate effective 01 January 2010;
2.3 Third Tranche - 5% increase of the base rate effective 01 August 2011.
616
SECTION 3. Repealing Clause - All previous issuances inconsistent herewith are
hereby repealed, amended or modified accordingly.
SECTION 4. Effectivity - This circular shall be published twice (once a week) in a
newspaper of general circulation and shall take effect on 01 January 2009.
APPROVED.
Adopted: 10 Dec. 2008
General Manager
--o0o--
CPA Memorandum Circular No. 05, s. 2009
Tariff Increase for Domestic Cargo-Handling Tariff
Pursuant to the pertinent provisions of R.A. 7621 (Charter of the Cebu Port Authority )
and CPA Board Resolution No. 361-2008 dated 19 December 2008, in the interest of
ensuring smooth operation of the domestic cargo handling operations in the Port of Cebu,
the following uniform domestic cargo handling rates and guidelines are hereby prescribed:
SECTION 1. Rate of Increase - There shall be a fifteen percent (15%) across the
board increase in domestic cargo handling tariff in the Port of Cebu as approved by the
Cebu Port Commission as presented during the public hearing held on 04 December 2008.
SECTION 2. Schedule of Implementation - The increase will be implemented on a one
-time basis effective immediately after two (2) publications (once a week) in a newspaper
SECTION 3. Repealing Clause - This Circular amends all previous circulars, orders
and other issuances passed or adopted by CPA in so far as they are inconsistent here-
with.
Adopted: 19 Dec. 2008
APPROVED:
General Manager
COMMISSION ON AUDIT
Circular No. 2009-002
Reinstituting Selective Pre-Audit on Government Transactions
1.0
Rationale
1.1 t is the declared policy of the State that all resources of the government shall be
managed, expended or utilized in accordance with law and regulations and safeguarded
against loss or wastage resulting from illegal or improper disposition, with a view of ensur-
ing efficiency, economy and effectiveness in the operations of government. The primary
responsibility for faithful adherence to this policy rests with the chief or head of the govern-
ment agency concerned (Cf. Sec.2, P.D. No. 1445).
1.2 Consistent with such policy and in pursuance of the constitutional mandate vesting in
the Commission on Audit the exclusive authority to define the scope of its audit and
examination, establish the techniques and methods required therefore, and promulgate
accounting and auditing rules and regulations [Sec. 2 (2), Article X-D, 1987 Constitution],
the Commission, under COA Circular No. 95-006 dated May 18, 1995, lifted all pre-audit
activities that were then performed on financial transactions.
1.3 Recent developments, however, necessitate the revisiting of the present policy of ex-
amining government transactions strictly on a post-audit basis in view of the rising inci-
dents of irregular, illegal, wasteful and anomalous disbursements of huge amounts of pub-
lic funds and disposal of public property. An assessment of the risk-prone areas (using the
risk-based audit approach) in government operations and the marked inadequacy in inter-
nal controls as exemplified by the frequency of anomalies uncovered or reported likewise
point to the need to consider restoring pre-audit as a deterrent against the resurgence of
the observed maladies. Further, adequate safeguards need to be observed by the auditor
to ensure that the agency accepts all responsibility for (i) establishing and monitoring
internal controls, (ii) making all management decisions with respect to the design, imple-
mentation, and maintenance of the internal controls, (iii) evaluating the adequacy and
results of the design, implementation, and maintenance of the internal controls, and (iv)
the data used or generated by the financial reporting process.
1.4 For these reasons and in consonance with the power of the Commission on Audit to
adopt such measures as are necessary and appropriate to correct the deficiencies, this
Commission hereby reinstitutes selective pre-audit, subject to periodic review and as-
sessment of the effectiveness and coverage thereof in accordance with the risk-calibrated
agency audit framework.
2.0
Definition and General Scope of Pre-Audit and Post Audit
2.1 Pre-audit is the examination of documents supporting a transaction or series of trans-
actions before these are paid for and recorded.
Pre-audit operates to:
2.1.1 determine that the proposed expenditure is for a purpose in compliance
with the appropriation law, other specific statutory authority and regulations;
2.1.2 assure that sufficient funds are available to enable payment of the claim;
2.1.3 initially determine that the proposed expenditure is not illegal, irregular,
extravagant, excessive, unconscionable or unnecessary;
618
2.1.4 determine that the transaction is approved by proper authority and duly
supported by authentic underlying evidences.
2.2 Post audit covers the same areas and supplemented by tracing the transaction under
audit to the books of accounts. t also includes a final determination that the transaction is
not illegal, irregular, extravagant, excessive, unconscionable or unnecessary. n general
and wherever practical, the scope of post audit work covers all areas identified in the risk
assessment and embraces financial, compliance, and value-for-money audits. Transac-
tions subject to pre-audit shall be post audited without re-performing the audit procedures
previously undertaken in pre-audit, unless there is compelling reason to re-perform the
same.
3.0
Coverage
3.1 Pre-audit shall be selectively reinstituted in national government agencies, local gov-
ernment units, and government-owned and controlled corporations with original charters,
as indicated in the attached list marked as Annex A* and made integral part hereof, with
any, some or all of the following transactions:
3.1.1 cash advances;
3.1.2 payments of salaries and terminal leave benefits;
3.1.3 payments for infrastructure projects;
3.1.4 payments for road right-of-way;
3.1.5 payments for procurement of capital assets, goods and services;
3.1.6 payments made thru automatic debit advice (ADA);
3.1.7 releases of funds to NGOs/POs;
3.1.8 transfers of funds between government agencies subject to the exceptions
provided in item 4.8;
3.1.9 disbursements from trust funds of local government units, as limited in
item 4.9;
3.1.10 disposal of real property and unserviceable property, subject to the
limitations provided in item 4.10.
3.2 Subsequent identification of the national government agencies, local government units
and government-owned and controlled corporations and their respective transactions that
may be included or excluded in pre-audit shall proceed from the results of an evaluation of
the internal control system put in place and operating in each agency. Such evaluation
shall be undertaken by the Supervising Auditors (SAs) or Audit Team Leaders (ATLs) with
the results thereof reviewed and validated by the Cluster Director or Regional Director
before elevating the same, through the Assistant Commissioner or other authorized official
concerned, to the Oversight Committee created in item 10.0 hereof.
3.3 National high schools, government-owned and controlled corporations audited under
the team approach, and barangays shall be initially exempt from pre-audit.
4.0
Specific Scope of Pre-Audit Activities
4.1 Cash advances
4.1.1 Except for cash advances for payroll, intelligence funds, petty cash funds,
and those granted for local travel expenses of officers and employees, all other
cash advances including those for foreign travels funded out of the local funds
regardless of amount shall pass through pre-audit.
4.1.2 The liquidation of cash advances shall first be audited and the corresponding
Credit Notice issued before the same shall be taken up in the books.
4.1.3 The grant of cash advances and their liquidation shall be governed by the
following guidelines and by the provisions COA Circular No. 97-002 dated
February 10, 1997, which are not inconsistent herewith:
(i) No cash advance shall be given unless for legally authorized specific
purpose.
(ii) No additional cash advance shall be allowed to any official or employee
unless the previous cash advance given to him is first liquidated and accounted
for in the books.
(iii) A cash advance shall be liquidated/reported on as soon as the purpose
for which it was granted has been served.
(iv) Except for cash advances for travel, no officer or employee shall be
granted cash advance unless he is properly bonded in accordance with law or
regulations. The amount of cash advance which may be granted shall not exceed
the maximum cash accountability covered by his bond.
(v) Only permanently appointed and duly designated disbursing officers shall
be granted cash advance. However, these requirements shall not apply to cash
advances for travel.
(vi) Transfer of cash advance from one accountable officer to another shall
not be allowed.
(vii) The cash advance shall be used solely for the specific purpose for which
it was granted. Under no circumstance shall it be used for encashment of
checks or for liquidation of a previous cash advance.
(viii) No cash advance shall be granted for payments on account of
infrastructure projects or other undertaking on a project basis.
(ix) Cash advance for special time-bound undertaking shall be liquidated by
the accountable officer concerned within one month from the date the purpose
of the cash advance was accomplished.
(x) Cash advances which are no longer needed or have not been used for a
period of two months shall be returned to or deposited immediately with the
proper collecting officer or treasurer.
(xi) All cash advances shall be fully liquidated at the end of each year. Except
for petty cash fund, the accountable officer shall refund any unexpended balance
to the cashier/collecting officer who shall issue the necessary official receipt.
4.2 Payment of salaries and terminal leave benefits
4.2.1 Pre-audit of payments of salaries shall apply only to the first payment
after appointment by transfer or reinstatement, and to the last payment prior to
transfer.
620
4.2.2 All payments of terminal leave benefits shall be subject to pre-audit.
4.3 nfrastructure projects
4.3.1 nfrastructure projects include the construction, improvement,
rehabilitation, demolition, repair, restoration or maintenance of roads and bridges,
railways, airports, seaports, communication facilities, civil works components
or information technology projects, irrigation, flood control and drainage, water
supply, sanitation, sewerage and solid waste management systems, shore
protection, energy/power and electrification facilities, national buildings, school
buildings, hospital buildings, and other related construction projects of the
government [Section 5 (n), RR-A of R.A. No. 9184)]
4.3.2 All infrastructure project with contract amounts falling under the
categories outlined below shall be covered by pre-audit.
For national government agencies:
(i) Department/Bureau/Agency Main/Central/Head Offices, General
Headquarters, Project Management Offices - P25 million and above
(ii) Regional Offices/Operating Units/Area Commands/Field Offices or their
equivalents - P10 million and above
(iii) Provincial /District/Division/Satellite Offices - P2 million and above
(iv) Tertiary and/or specialized hospitals - P5 million and above
For local government units:
(i) Cities within Metro Manila, other highly urbanized cities and first class
provinces - P5 million and above
(ii) Provinces/cities below first class - P3 million and above
(iii) Municipalities - P1 million and above
For government-owned and/or controlled corporations/government
financial institutions
(i) Head Offices, Project Management Offices - P25 million and above
(ii) Regional/Provincial Branches/Field Offices - P10 million and above
4.3.3 Only the advance payments granted to contractors as well as the first
and last progress billings of contracts for infrastructure projects the contract
amount of which fall within the threshold as above indicated shall be subject to
pre-audit. First progress billing represents claims made for the first collection
on the work accomplished in a particular project. n the pre-audit of the last
progress billing, all previous payments shall be considered.
4.3.4 All first payments of progress billings under a change order, extra work
order, supplemental agreement, or any other form of variation order related to
contracts subject to pre-audit under item 4.3.2, shall likewise be subject to
pre-audit. However, where the amount of the variation order brings a contract
not previously covered by pre-audit within the threshold established in item
4.3.2, the first payment under the variation order as well as the last progress
billing of the original contract, as modified or amended by the variation order,
shall be subject to pre-audit. All claims of contract price escalations regardless
of the amount shall be subject to pre-audit taking into consideration the guidelines
provided in Government Procurement Policy Board Circular No. 03-2008 dated
August 20, 2008 and such other existing regulations on the matter.
4.3.5 nspections of construction project accomplishments shall be
mandatory on the payment for the first and last progress billings. The Auditor
may, however, conduct random on-the-spot inspection of on-going infrastructure
projects or request inspection of projects at any time he may deem necessary.
4.3.6 The auditor shall review the completeness of the supporting documents,
its terms and conditions, the bidding procedures, necessity and validity of other
alternative modes of procurement and manner of award to the winning bidder/
contractor and such other relevant requirements provided in RA No. 9184 and
its implementing rules and regulations. Whenever practicable, the SA/ATL or
the Technical Audit Specialist (TAS) after due referral, shall evaluate the
reasonableness of the cost of the project or activity immediately upon receipt
of the contract as provided in item 6.6 hereof. Provided that the final determination
of such reasonableness shall in no case extend beyond twenty-one (21) working
days from the time the contract and complete supporting documents are
submitted for technical review.
4.3.7 These pre-audit guidelines shall equally apply to infrastructure projects
undertaken in areas declared as under a state of emergency or calamity.
4.4. Payments for road right-of-way
4.4.1 All claims for road right-of-way shall be subject to pre-audit taking into
consideration the provisions of RA No. 8974 and its implementing rules and
regulations.
4.5 Procurement of capital assets, goods and services
4.5.1 Procurement of capital assets shall include land and building.
4.5.2 Procurement of goods and services includes acquisition of supplies,
materials, general support services, labor, equipment and motor vehicles by
the government, regardless of the source of fund. For this purpose, procurement
of construction materials for projects implemented by administration shall be
treated as procurement of goods and services and shall be subject to the same
rules herein provided taking the total project cost, and not the individual
transactions, as basis of its coverage in or exclusion from pre-audit.
4.5.3 General support services shall include only those which are recurring
and fixed in nature, such as but not limited to rentals, janitorial and security
services, and solid waste management regardless of the amount involved. Only
the first payment for said services shall be subject to pre-audit. First payments
involving extension of contracts shall also be pre-audited.
4.5.4 First and last payments of contracts entered into through any of the
various modes of procurement involving an amount of at least P2 million for
national government agencies, government-owned and/or controlled corporations,
cities within Metro Manila, other highly urbanized cities and first class provinces,
P1 million for provinces/cities below first class, and P500,000.00 for
municipalities, shall be subject to pre-audit. Procurement between government
agencies and instrumentalities shall be exempt from pre-audit.
622
4.5.5 Procurement of goods and services to address natural calamities or
emergencies shall be subject to pre-audit except procurement involving life
saving medicines, food and other similar items which shall be exempt from
pre-audit.
4.6 Payments made thru automatic debit advice (ADA)
4.6.1 For foreign-funded or locally funded infrastructure projects that shall
be paid through ADA, pre-audit shall be performed on the documents to be
submitted as basis for payment, such as but not limited to the approved
disbursement vouchers, if applicable, statement of expenditures, list of due
and demandable accounts payable and their supporting documents.
4.6.2 For procurement paid through ADA, pre-audit shall be performed on
the approved disbursement voucher duly supported by the regular documentary
requirements for the specific transaction.
4.7 Releases to NGOs/POs
4.7.1 All releases of funds to NGOs/POs shall be subject to pre-audit. The
audit shall be carried out taking into consideration the requirements and
guidelines provided in COA Circular No. 2007-001 dated October 25, 2007 and
subsequent amendments thereto.
4.7.2 No subsequent releases shall be made unless the previous release is
liquidated, and the liquidation documents are post-audited and properly taken
up in the books.
4.8 Transfer of funds between and among government agencies
4.8.1 All transfers of funds either thru funding check or bank transfer between
and among bank accounts of government agencies or between different bank
accounts of the same government agency regardless of amount shall be subject
to pre-audit.
4.8.2 Fund transfers within and between government banks, transfers of
funds to address an emergency or calamity, releases of NCAs by the Department
of Budget and Management, and releases of NTAs from department/central
offices to operating units shall be exempt from pre-audit. Fund transfers within
and between government banks shall refer to normal routinary bank transactions
specifically interbranch withdrawals/deposits, deposits to comply with reserve
requirements, telegraphic transfers/quick cash, cash transfers from cash
centers to branch and vice-versa, overseas remittances, payment of interbank
foreign borrowings, swap transactions, payment of foreign exchange cover fees,
guarantee fee, commitment fee to the National Government remittance of
collection pertaining to other government agencies, maturities of clients
placements and other transactions of their respective working funds paid
electronically to meet the real time settlement.
4.9 Disbursements from trust funds of local government units
4.9.1 The pre-audit of trust funds of local government units shall only cover
disbursements of the trust funds received from the national government or from
government-owned and controlled corporations.
4.10 Disposal of real property, unserviceable property and those no longer needed
4.10.1 Pre-audit of disposal of real property shall cover only all those
undertaken through negotiated sales involving an amount of at least P1 million.
4.10.2 Negotiated sale of acquired assets of government financial institutions
amounting to at least P50 million, except those disposed to previous owners in
the exercise of their right of redemption, shall be subject to pre-audit.
4.10.3 For unserviceable property and those no longer needed, only negotiated
sales involving an amount of at least P500,000.00 whether valued individually or
by lot shall be subject to pre-audit.
4.10.4 Negotiated sale of property covered by Section 380 of RA No. 7160
otherwise known as the Local Government Code of 1991 shall be governed by
the following rules:
(i) Unserviceable property and property no longer needed may be disposed
at a private sale at such price as may be determined by the committee on
awards, subject to the approval of the Commission on Audit or its duly authorized
representatives when the acquisition or transfer cost exceeds fifty thousand
(P50,000.00) pesos in the case of provinces and cities, and twenty five thousand
(P25,000.00) pesos in the case of municipalities and barangays. n the case of
real property, the disposal shall be subject to the approval of the Commission
on Audit regardless of the value or costs involved.
(ii) Approval of the disposal of unserviceable property and property no longer
needed in private sale shall be as follows:
Category Approving COA Official
1. Unserviceable property or property COA Chairman
no longer needed with book value/
acquisition cost not exceeding P1,000,000.00
in each case.
2. Unserviceable property or property no Directors/Officers in Charge of COA
longer needed with book value/acquisition cost Central and Regional Offices
not exceeding P150,000.00 in each case
3. Unserviceable property or property Supervising Auditors/
no longer needed with book value/acquisition Heads of Audit Groups
cost not exceeding P100,000.00 in each case
4. Unserviceable property or property no Audit Team Leaders
longer needed with book value/acquisition cost
not exceeding P50,000.00 in each case
5. Real property regardless of the book value/ COA Commission Proper
acquisition cost
624
(iii) The value of the property declared to be unserviceable or no longer needed
should be appraised by a qualified COA Technical Property nspector or by a
committee composed of Technical Property nspectors, as determined by the
TSO Cluster Director, for cases within Metro Manila, or the Regional Director,
for cases in the regions, before approval of the sale.
(iv) Whenever there exists a doubt as to the reasonableness of the price of
the unserviceable property or property no longer needed, the same must be
submitted to the Technical Services Office for review and appropriate action.
5.0
Responsibility to Conduct Pre-Audit
5.1 Pre-audit shall, in addition to the existing duties and functions, be the responsibility
of the head of the auditing unit/audit team. n an auditing unit where a Supervising Auditor
(SA) and Audit Team Leader(s) (ATLs) are assigned, the pre-audit functions shall be dis-
charged by the SA. Pre-audit functions in all other auditing units headed by ATLs whether
or not placed under the supervision of SAs shall be carried out by such ATLs.
5.2 n case of absence of the person duly authorized in item 5.1 to perform pre-audit for
one (1) to five (5) working days, he shall designate an officer-in-charge who shall tempo-
rarily perform the pre-audit functions. A copy of such designation shall be furnished to the
Cluster Director or Regional Director concerned for information and record. Where the SA
or ATL, as the case may be, is absent for more than five (5) working days but not more than
thirty (30) working days, the designation shall be done by the Cluster Director or Regional
Director, and in excess of thirty (30) working days, by the Chairman.
6.0
Duties and Responsibilities of Agency Officials
Agency officials concerned shall:
6.1 Ensure that no transactions covered by this circular are paid out without evidence of
the audit action of the SA/ATL as required herein.
6.2 Submit to the SA/ATL concerned all disbursement vouchers/documents for claims
subject to pre-audit.
6.3 Submit to the SA/ATL the advices/instructions including, among others, MOAs and
MUOs and their supporting documents for transfers of funds subject to pre-audit under
item 4.7 hereof.
6.4 See that cash advances granted are liquidated within the prescribed period and liquida-
tion submitted to the SA/ATL concerned within ten (10) days from the date the liquidation
document is received from the accountable officer.
6.5 Maintain complete and up-to-date subsidiary records of cash advances for each ac-
countable officer to record the cash advances granted and liquidated.
6.6 Submit to the SA/ATL concerned copies of contracts, purchase/letter orders, loan
agreements, bond flotation/certificates of indebtedness, whether domestic or foreign, and
appraisal reports of property for disposal including all supporting documents required in
COA Circular No. 2009-001 dated February 12, 2009 and its annexes, for review, within five
(5) days from their perfection.
6.7 Ensure that the disbursement vouchers are duly supported with the requisite docu-
ments for each specific claim and accompanied by a duly accomplished relevant checklist
for technical review as provided in COA Circular No. 2009-001 dated February 12, 2009 as
well as the requirements enumerated in item 4.4 of COA Circular No. 2007-001 (for re-
leases to NGOs/POs) and its subsequent amendments, if any. f the supporting docu-
ments have been previously furnished to the auditor pursuant to item 6.6, such fact shall
be indicated in the accompanying document checklist. Any deficiency in the supporting
documents shall cause the return of the documents without action, within twenty-four (24)
hours, for completion or rectification of the deficiency.
6.8 See that no splitting of requisitions, purchase orders, vouchers, and the like, is re-
sorted to, in order to circumvent the control measures provided in this circular and other
laws and regulations. For this purpose, a project funded under a single obligating authority
and implemented in several phases whether by the same or different contractors shall be
deemed splitting of contracts.
6.9 Furnish the auditor copies of delivery documents within twenty-four (24) hours after
acceptance of deliveries of goods and services, regardless of whether or not the transac-
tion is subject to pre-audit.
6.10 Ensure that negotiated sale of real property, unserviceable property and those no
longer needed are resorted to only under circumstances authorized by existing laws and
regulations.
6.11 Submit the agencys Annual Procurement Plan and amendments thereto within the
first quarter of each year.
6.12 Maintain a separate record/logbook of all transactions subject to and submitted to
the SA/ATL for pre-audit.
7.0
Duties and Responsibilities of COA Officials and Representatives
7.1 Counted from the time of receipt of the complete transaction documents, act on the
transactions subject to pre-audit within five (5) working days for infrastructure projects,
procurements and disposals requiring technical evaluation, and within two (2) working
days for other transactions subject to pre-audit.
7.2 Conduct periodic evaluation of the accountability of the accountable officer and recom-
mend reduction of the cash advance if found excessive.
7.3 Monitor the grant and liquidation of cash advances subject to pre-audit.
7.4 Without prejudice to the conduct of a surprise cash examination as the SA/ATL may
deem appropriate, issue demand letter upon failure of the accountable officer to liquidate
626
his cash advance within two (2) months for accountable officers holding office within the
station and three (3) months for accountable officers outside the station, from the dates
specified in item 4.1.3 (ix), (x) and (xi).
7.5 Recommend for the withholding of the payment of any money due the accountable
officer if no liquidation or explanation is received or the explanation received is not satisfac-
tory.
7.6 nitiate the filing of a criminal case against the accountable officer for failure to settle
his accounts in the manner outlined below:
7.6.1 Execute an affidavit stating the nature/purpose of the cash advance; the
amount not liquidated/accounted for; the fact that no liquidation or explanation
has been submitted despite demand or if explanation has been submitted, the
same is not satisfactory; the date the letter of demand was served on or received
by the AO; and other information which may be pertinent to the case.
7.6.2 State in the affidavit the violation of the provisions of Section 89 of P.D.
No. 1445 and the penal provisions under Section 128 of the same law, both of
which are herein quoted in full to wit:
Section 89. Limitations on Cash Advance - No cash advance shall be
given unless for a legally authorized specific purpose. A cash advance shall be
reported on and liquidated as soon as the purpose for which it was given has
been served. No additional cash advance shall be allowed to any official or
employee unless the previous cash advance given to him is first settled or a
proper accounting thereof is made.
Sections 128. Penal Provision - Any violation of the provisions of Section
xxx 89, xxx of this code or any regulation issued by the Commission
implementing these sections, shall be punished by a fine not exceeding one
thousand pesos or by imprisonment not exceeding six (6)months, or both such
fine and imprisonment at the discretion of the court.
7.6.3 The affidavit shall be submitted to the COA Director concerned who shall
refer the case to the appropriate Office of the Deputy Ombudsman, if the offense
is committed in the regions or to the COA Legal Services Sector for the filing of
criminal proceedings before the Office of the Ombudsman, if the offense is
committed within Metropolitan Manila area, in accordance with paragraphs 3.1.1
and 3.2, respectively of COA Memorandum No. 95-112 dated December 26,
1995.
7.7 See that all inspection and evaluation of project accomplishment, deliveries of sup-
plies, materials and equipment, evaluation of variation orders, price escalation adjust-
ments and road right-of-way acquisitions, are made in accordance with auditing rules and
regulations on the matter.
7.8 Strictly enforce compliance with the requirement for submission of copies of contracts
and appraisal reports including their supporting documents as provided herein.
7.9 mmediately advice the release and confirm the receipt of funds from the audited agency
to another agency.
7.10 Maintain a separate record/logbook of all transactions received for pre-audit including
the actions taken thereon.
7.11 Conduct post-audit of transactions and accounts in accordance with the risk-based
audit approach taking into consideration the result of pre-audit;
8.0
Evidence of Audit Action
Pre-Audit Stamp
8.1 The pre-audit action shall be evidenced by a pre-audit stamp with the following words
impressed upon the face of the disbursement voucher or disposal contract and their sup-
porting documents: Pre-audited pursuant to COA Circular No. ______dated _______ (See
Annex B*), duly signed and dated by the auditor.
8.2 The pre-audit stamp shall be placed only after the upfront audit procedures are under-
taken, including, among others, the review of the legal aspects of the transaction or con-
tract to determine whether the requirements of applicable laws, rules and regulations were
substantially complied with and initial determination has been made that the transaction
or contract is not illegal, irregular, extravagant, excessive, unconscionable or unneces-
sary, as the case may be. The pre-audited disbursement voucher or disposal contract and
its supporting documents shall be returned to the agency duly stamped in accordance
with item 8.1 on each and every page of the documents submitted. The pre-audit action
shall not be a bar to further determination as to the approval or allowance of the transaction
in post audit.
8.3 n case of deficiencies or defects noted, the disbursement voucher and its supporting
documents shall be returned to the head of the agency concerned within twenty-four (24)
hours from such determination informing him of the action taken and indicating the rea-
sons therein (Annex C*)
8.4 Without waiting for the submission of claims for first payments, the SA or ATL con-
cerned shall immediately refer the infrastructure contract to the technical audit specialists
of the auditing unit/cluster or of the Technical Services Office or Regional Technical Service
Division, as the case may be, for review of the technical aspects including the reasonable-
ness of the price within five (5) days after the review of the legal aspects. Provided that
contracts determined by the Auditor to be legally infirm need not be referred for technical
review and shall be returned to the head of the agency in accordance with item 8.3 above.
8.5 Except as provided in the second sentence of item 8.4, all other contracts requiring
technical evaluation may likewise be referred for review in the same manner provided in the
first sentence thereof, as may be deemed necessary and consistent with the risk-based
audit approach.
628
Credit Notice for Cash Advances, Transfer of Funds Between Government Agen-
cies and Releases to NGOs/POs
8.6 Upon liquidation, the SA or ATL shall, within thirty (30) days from receipt of the liquida-
tion report and supporting documents, complete the audit and issue Credit Notice (Annex
D*) addressed to the accountable officer to inform the latter of the amount allowed in audit.
n case of suspension or disallowance, a notice of suspension or disallowance shall be
issued. The amount allowed in audit as contained in the Credit Notice shall be deemed to
have been settled.
8.7 Subsequent cash advances, transfer of funds between government agencies and re-
leases to NGOs/POs shall be granted only after the issuance of Credit Notice for the
previous cash advance.
9.0
Appeal Procedure
9.1 Any party aggrieved by the decision of the auditor on claims or transactions submitted
for pre-audit may avail of the appeal remedy outlined in the Revised Rules of Procedure of
the Commission on Audit.
10.0
Oversight Committee
10.1 The Assistant Commissioners Group constituted under COA Resolution No. 2008-
012 dated October 10, 2008 is hereby designated to act as Oversight Committee to moni-
tor and periodically evaluate the implementation of the selective reinstitution of pre-audit.
10.2 The Oversight Committee shall have the authority and responsibility to recommend,
for consideration by the Commission Proper, the inclusion of certain kinds of transactions
or the exclusion of those previously included in the coverage of pre-audit. The initiative to
include or exclude certain transactions in pre-audit shall originate from the SAs or ATLs,
duly validated by the Cluster Director or Regional Director concerned. The Oversight Com-
mittee shall evaluate the proposal and if found to be meritorious it shall recommend the
same for consideration by the Commission Proper. Otherwise, the proposal shall be re-
turned to the SA/ATL through the Assistant Commissioner or other authorized official
concerned indicating the reasons therein. The Oversight Committee may, however, motu
proprio initiate and recommend the inclusion or exclusion of transactions subject to pre-
audit.
10.3 t shall also develop a mechanism for evaluating the progress of agencies in enhanc-
ing their internal control structures as well as the process by which said agencies may be
exempted from, or those previously exempted may be placed under the coverage of selec-
tive pre-audit using the risk-calibrated agency audit framework. The mechanism and the
guidelines therefor duly approved by the Commission Proper shall be disseminated to the
Assistant Commissioners, Cluster Directors, Regional Directors, SAs and ATLs for their
guidance in making recommendations for exemptions from or inclusions in the coverage of
pre-audit.
11.0
Penalty Clause
11.1 Any violation of the rules prescribed in item 4.1 shall render the accountable officer
concerned liable under Section 128 in relation to Section 89 of Presidential Decree No.
1445, and/or other applicable laws and administrative regulations.
11.2 Transactions or claims covered by this circular but not submitted for pre-audit, shall
be a ground for initiating administrative disciplinary action in accordance with Section 127
of Presidential Decree No. 1445 and Section 55, Title -B, Book V of the Revised Adminis-
trative Code of 1987, without prejudice to the disallowance of the transactions in post
audit, if warranted.
12.0
Repealing Clause
All COA circulars and memoranda inconsistent herewith are hereby revoked, amended
or modified accordingly.
13.0
Effectivity
This circular shall take on July 1, 2009.
(SGD.) JUANTO G. ESPNO, JR.
Commissioner
(SGD.) REYNALDO A. VLLAR
Chairman
--o0o--
Circular No. 2009-003
Suspension of Item 3.1 of COA Circular No. 2009-002
dated May 18, 2009 and other Provisions Relating to Pre-Audit of
Transactions Referred to and Listed in Annex A
n order to ensure uniformity and consistency in the implementation/audit coverage
of selective pre-audit of transactions in all government agencies, tem 3.1 and other provisions
of COA Circular No. 2009-002 dated May 18, 2009 relating to transactions or activities
referred to and listed in Annex A thereof are hereby suspended until further order.
Accordingly, except as provided in tem 3.3 of COA Circular No. 2009-002, pre-audit
shall be selectively reinstituted in the national government agencies, local government
units, and government-owned and controlled corporations with original charters to all
transactions or activities enumerated under tems 3.1.1 to 3.1.10 of the aforesaid circular
for amounts falling under the categories stated under tem 4.0 - Specific Scope of Pre-audit
Activities.
630
All COA Circulars, Memoranda and other issuances inconsistent herewith are hereby
revoked or modified accordingly.
This Circular shall take effect immediately.
(SGD.) JUANTO G. ESPNO, JR.
Commissioner
(SGD.) REYNALDO A. VLLAR
Chairman
CONSTRUCTION INDUSTRY ARBITRATION COMMISSION
Resolution No. 05-2009
Approving Additional Ranges and Base Amounts for Arbitrators Fees
WHEREAS, the CAC Table of Fees provides, among others, for the following Sum in
Dispute (SD) ranges and base amounts for determining Arbitrators Fees:
SUM N DSPUTE (SD) BASE AMOUNT (for arbitrators fees)
< P 1 Million 2% of SD
over 1M - 5.0 M P20,000.00 +1.00% in excess of 1.0M
over 5M - 10.0M 60,000.00 + 0.75% in excess of 5.0M
over 100M 257,500.00 + 0.05% in excess of 100.0M
WHEREAS, in the 99th CAC Regular Meeting held on 26 July 2007, the Commission
discussed the revisions to the CAC Table of Fees proposed by the Philippine nstitute of
Construction Arbitrators and Mediators, nc. (PCAM) providing for, among others, addi-
tional base amounts for the following ranges of the Sum in Dispute (SD);
Over 100M - 1 Billion 257,500.00 + 0.05% in excess of 100.0M
above 1 Billion 707,500.00 + 0.025% in excess of 1 Billion
WHEREAS, the Commission deferred action on the said proposal and referred the
same back to the PCAM Committee on Fees for a breakdown of the proposed SD range
of over 100M - 1 Billion to provide for SD ranges of over P100M-500M, and over P500M - 1
Billion;
WHEREAS, in compliance with the above directive, the following additions to the base
amounts for arbitrators fees proposed by the PCAM Committee on Fees were presented
to the Commission during its 108th Regular Meeting held on 30 April 2008:
Over 100M - 500.0M 257,500.00 + 0.05% in excess of 100.0M
Over 500M - 1 Billion 457,500.00 + 0.035% in excess of 500M
Above 1 Billion 632,500.00 + 0.025% in excess of 1 Billion;
WHEREAS, in its subsequent meetings, the Commission found that due to the de-
clining incremental percentages proposed, the above additional base amounts for arbitra-
tors fees would not entail any increase in arbitrators fees and thus, would not require prior
clearance from the National Economic Development Authority (NEDA), pursuant to NEDA
Circular No. 01-2007 for new fees and/or increases in government fees/charges;
WHEREAS, during its 120th Regular Meeting held on 19 May 2009, the Commission,
noting that the other PCAM proposals regarding arbitrators fees which were referred back
to PCAM for further study would have no further effect or implications on the abovementioned
additional SD ranges and base amounts, posed no objections to their immediate adoption
and incorporation in the CAC Table of Fees;
NOW, THEREFORE, WE THE UNDERSIGNED COMMISSIONERS, by virtue of the
powers vested in us by law, RESOLVE, AS IT IS THUS RESOLVED, to approve the
following additional SD ranges and corresponding base amounts for Arbitrators Fees for
incorporation in the CAC Table of Fees and immediate implementation upon effectivity of
this Resolution:
Over 100M - 500.0M 257,500.00 + 0.05% in excess of 100.0M
Over 500M - 1 Billion 457,500.00 + 0.035% in excess of 500M
Above 1 Billion 632,500.00 + 0.025% in excess of 1 Billion.
UNANMOUSLY APPROVED.
THE COMMSSON:
(SGD.) SAAC S. DAVD
Acting Chairman
(SGD.) SAMSON C. LAZO
Member
Memorandum Circular No. 2009-01
Guidelines for the Re-Registration of Cooperatives
632
Pursuant to Article 144 of RA 9520, otherwise known as the Philippine
Cooperative Code of 2008, the Cooperative Development Authority hereby adopts and
promulgates the following Guidelines for the RE-REGSTRATON of cooperatives.
SECTION 1. Scope - This Guideline shall cover the RE-REGISTRATION of all regis-
tered and confirmed cooperatives with the Authority regardless of types and categories in
compliance with RA 9520. Cooperatives that have been cancelled or ordered dissolved are
disqualified.
SECTION 2. Period to Re-register - The Re-registration shall start immediately upon
the effectivity of this Guideline and ends on March 23, 2010.
SECTION 3. Definition - The following definitions shall govern in the uniform interpre-
tation of these guidelines:
a. Re-Registration is the operative act of the Authority confirming the juridical personality
of registered and confirmed cooperatives with the Authority through the issuance of new
certificate of registration under its seal and in compliance with Article 144 of RA 9520.
b. Certificate of Registration - A new document evidencing the due execution of re-registra-
tion confirming the juridical personality of an existing cooperative.
c. Deemed Registered a cooperative is registered with the Authority pursuant to Article
144 of RA 9520 after complying with all requirements prescribed under Section 4 hereof.
d. Deemed Cancelled - The legal existence and juridical personality of a cooperative is
automatically terminated and all its powers, functions, rights, privileges granted to such
cooperative are extinguished for failure to re-register.
SECTION 4. Requirements
All qualified registered and confirmed cooperatives shall submit the following docu-
ments to the nearest Extension Office of the Authority, to wit:
1) photocopy of certificate of registration or certificate of confirmation including certificate
of amendment/s if applicable;
2) photocopy of registered articles of cooperation including registered amendment/s;
3) photocopy of registered by-laws including registered amendments; and
4) original copy of latest (2008) audited financial statements
5) Registration Fee of Php200.00
SECTION 5. Venue for Re-Registration - All application for Re-Registration of primary
and secondary cooperatives shall be filed at the concerned CDA Extension Office (EO)
where the cooperative was registered. Tertiary and special types of cooperatives shall file
their application at CDA Central Office.
However, cooperative that has officially transferred its operation and principal office to
another region shall re-register in the EO that has jurisdiction over their present principal
office address.
SECTION 6. Procedure
1. For cooperatives with on-line access:
a. nitially, the applicant cooperative files application for re-registration through on-line.
(nternet) by accessing COOP RE-REGSTRATON BOX at CDA Website, www.cda.gov.ph.
b. The Cooperative dentification Number (CN) issued to cooperative shall serve as username
to access the application form.
c. The cooperative shall fill up the necessary information required in the application form.
d. After completing the application form, click the submit button to print the checklist of
documents to be submitted to the concerned CDA Extension Office. Specific instructions
on what steps to be done are also written in the checklist.
e. Finally, the applicant shall submit the required documents together with the checklist
printed on-line to the concerned CDA Extension Office.
2. For cooperatives without on-line access:
a. Applicant cooperative shall proceed to their affiliated union or federation or nearest
National Electronic Registration Business Action Center (NERB AC), which can be found
in the strategic location in the regions for assistance. Otherwise, applicant cooperative
may proceed to concerned CDA Extension Office for assistance.
b. The assisting officer shall file application for re-registration through on-line (nternet) by
accessing COOP RE-REGSTRATON BOX at CDA Website, www.cda.gov.ph;
c. The Cooperative dentification Number (CN) issued to cooperative shall serve as username
to access the application form.
d. Encode/fill up the necessary information required in the application form.
e. After completing the application form, click the submit button to print the checklist of
documents to be submitted to the concerned CDA Extension Office. Specific instructions
on what steps to be done are also written in the checklist.
f. Finally, the applicant shall submit the required documents together with the checklist
printed on-line to the concerned CDA Extension Office.
SECTION 7. Non-Operating Cooperatives - Cooperatives classified as non-operating
are advised to proceed immediately to the concerned CDA Extension Office for evaluation
of their status.
634
SECTION 8. Issuance of new Certificate of Registration - There shall be an officially
designed Certificate of Registration to be issued to re-registering cooperatives nationwide.
SECTION 9. Cancellation of Certificate of Registration - All registered and confirmed
cooperatives under RA 6938 that have failed to re-register pursuant to this Guideline shall
be deemed cancelled after the expiration of the prescribed period to re-register.
SECTION 10. Information Campaign - All CDA Extension Offices shall utilize the tri-
media communications to ensure that all concerned cooperatives are aware of these re-
registration requirements.
The Cooperative Research nformation and Training Division (CRTD) shall prepare
appropriate information materials to promote the re-registration of cooperatives.
SECTION 11. Effectivity These Guidelines shall take effect fifteen (15) days from
submission of copy hereof to the Office of the National Administrative Register (ONAR).
(SGD.) LECRA V. JUAREZ
Chairperson
--o0o--
Office Order No. 2009-04
Procedural Guidelines in the Re-Registration of Cooperatives
Pursuant to Article 144 of RA 9520, otherwise known as the Philippine Cooperative
Code of 2008, the Cooperative Development Authority hereby issues the following Proce-
dural Guidelines in the RE-REGSTRATON of cooperatives.
SECTION 1. Scope - This procedural guideline shall cover step-by-step procedures
in the RE-REGISTRATION of cooperatives in compliance with RA 9520 and MC issued for
this purpose.
SECTION 2. When to Register - Qualified cooperatives may file application for re-
registration from March 22, 2009 to March 23, 2010.
SECTION 3. Who May Register - All registered and confirmed cooperatives with the
Authority regardless of types and categories in compliance with RA 9520. Cooperatives
that have been cancelled or ordered dissolved are disqualified to re-register.
SECTION 4. Where to Register - All application for Re-Registration of primary and
secondary cooperatives shall be filed at the concerned CDA Extension Office (EO) where
the cooperative was registered. Tertiary and special types of cooperatives shall file their
application at CDA Central office.
However, cooperative that has officially transferred its operation and principal office to
another region shall re-register in the EO that has jurisdiction over their present principal
office address.
SECTION 5. Requirements - All qualified registered and confirmed cooperatives shall
submit the following documents to the nearest Extension Office of the Authority, to wit:
1) photocopy of certificate of registration or certificate of confirmation including certificate
of amendment/s if applicable;
2) photocopy of registered articles of cooperation including registered amendment/s;
3) photocopy of registered by-laws including registered amendments;
4) original copy of latest (2008) audited financial statements; and
5) Registration Fee of Php200.00.
SECTION 6. How to Register - The applicant needs to have on-line/internet access to
fill-up application form and secure notification with checklist of requirements to complete
the re-registration process.
After securing the notification and checklist on-line, all required documents for Re-
registration of cooperatives should be filed at the concerned CDA Office where the coop-
erative was registered.
SECTION 7. On-Line Procedures - To be able to use the web-based Re-Registration
process, a cooperative must have a 10-digit Cooperative dentification Number (CN) is-
sued by the Authority. The following steps shall be followed in accessing the Re-registra-
tion System:
A. For the COOPERATVES
1. Getting Started
Visit www.cda.gov.ph and click the Re-Registration link. The link will take you to the
Re-Registration site.
2. The Cooperative dentification Number (CN) page
Enter the CN on to the CN field and click OK. A cooperative was issued a 10-digit CN
by the Authority that has jurisdiction over it. Make sure that the correct CN is entered.
3. The Application Form page
f you have entered the correct CN, you will be directed to the Application Form page.
However, if the cooperative is tagged as non-operating, a notification can be viewed on-line
directing the applicant to proceed to the concerned CDA Office for further evaluation of its
status. f Form is displayed, enter the following information as discussed below:
636
General nformation Section
Name of Cooperative
Enter your latest amended Name here. Capitalize only the first letters.
BIR TIN
Enter your BR TN if available.
Contact Person
Enter the name of the coops primary contact person. Capitalize only the first
letters of first and family name.
Designation
Enter the designation of the Contact Person. Capitalize the first letter.
Mobile Number
Enter the mobile/cellphone number of the Contact Person.
Telephone Number
Enter the landline number of the coop including the area code.
Street Address
Enter ONLY the street address (number, name of street, barangay)
Region
The region field is locked because it is pre-determined by your CN. For example,
if your CN was issued by Region 1, the default value of the Region field would
be Region 1.
Sub Category/Type
Select the cooperative type from the dropdown list.
Province
Select the province where your coop is located. Once you have selected a
province, the page will refresh automatically which means that the appropriate
Districts have been loaded to the District dropdown list. You will experience a
flicker but this is normal. The flicker also depends on the speed of your internet
connection.
District
Select the district where your coop is located. Once you have selected a district,
the page will refresh automatically which means that the appropriate cities/
municipalities have been loaded to the City/Municipality dropdown list. You will
experience a flicker but this is normal. The flicker also depends on the speed of
your internet connection.
City/Municipality
Select the city or municipality where your coop is located.
Email Address
Enter a valid email address.
Total Assets
Enter your Total Assets as of December 2008.
4. Submission
After completing the Application Form, click the Submit button. A pop-up will then
appear containing the Notification for re-registration and instructions for next actions. Print
the message for reference.
B. For The AUTHORTY
1. For Operating Cooperative
1.1 The CDA Staff shall receive the documents submitted by cooperative applicants.
Sr. CDS
1.2 Sr. CDS will Sign-in to the Re-Registration Page
1.3 Open submitted records and validate the entries using the requirements
submitted by the cooperatives
1.4 f there are no problems, click SUBMT button.
1.5 f there are problems, inform the cooperative immediately. Proceed to the
next record.
1.6 Sign out once finished.
Supvg. CDS
1.7 Supvg. CDS will Sign-in to the Re-Registration Page
1.8 Open submitted records and review the entries using the requirements
submitted by the Sr. CDS
1.9 f application is in order, click SUBMT button. To generate the new registration
number the Supvg CDS shall click GENERATE button.
1.10 f there are problems, inform the Sr. CDS immediately. Proceed to the
next record.
1.11 Sign out once finished.
Sr. CDS
638
1.12 Sr. CDS will Sign-in to the Re-Registration Page
1.13 Check for re-registered cooperatives, print three (3) copies of the New
Certificate of Registration (CoR) by using the MS Word template connected to
the EOs database. CoR copies to be distributed, as follows:
Original - Cooperative
Duplicate - CDA Extension Office
Triplicate - CDA Central Office
1.14 Prepare Order of Payment and attached to the Certificate.
1.15 Affix initial in the Certificate and forward to the Supvg. CDS.
Supvg. CDS
1.16 Affix initial in the Certificate and forwards to the Area Cooperative Director
(ACD).
ACD
1.17 Affix initial in each of the 3 copies of the Certificate of Registration and
return the same to the Registration Unit. f the Area Cooperative Director is out
on official travel/leave the initial of Supervising CDS will suffice.
Registration Releasing Staff
1.18 Direct applicant to pay first to the Cashier.
1.19 Record Official Receipt Number, amount paid, and date paid in the duplicate
certificate.
1.20 Stamp CDA dry seal and release the certificate to applicant after signing
receipt.
2. For Non-Operating Cooperatives
Sr. CDS
2.1 Verify the specific instruction in the submitted on-line printed notice or the
reason for non-operating status.
2.2 Evaluate the reason in determining the non-operating status. Formally advise
the applicant to comply the requirements to justify reclassification into operating
cooperative.
2.3 Applicant must submit proof of operation to the satisfaction of the CDA Unit
concerned which need prior written approval of the Area Cooperative
Director (ACD). The following documents may justify reclassification to operating
cooperative: audited financial statement as of 2008, minutes of the general
assembly meeting, copy of Certificate of Good Standing for 2007 0r 2008.
SECTION 7. Certificate of Registration (CoR) - The Certificate of Registration shall
be printed using the MS Word template connected to the EO database, with the CDA
Chairpersons electronic signature, and printed on the paper to be prescribed by the Cen-
tral Office.
SECTION 8. Establishment of Re-registration Assistance Center (RAC) - All EOs
shall establish Re-registration Assistance Center (RAC) responsible for providing assis-
tance to applicant cooperatives especially in accomplishing re-registration application form.
The Center must be separate from the Registration Section provided with stand-by
personnel and computer unit with on-line accessibility.
Provincial CDS are likewise encouraged to establish RAC in their respective area of
jurisdiction in coordination with the Local Government Unit/ Cooperative Sector to facilitate
all application for re-registration at the provincial level. This will prevent clogging of appli-
cant at the EO level.
SECTION 9. Report Generation - All EO designated Management nformation System
(MS) Staff shall generate from database monthly statistical report and master list of re-
registered cooperatives.
The Central Office MS shall also generate monthly reports from re-registration data-
base containing the said reports above covering nationwide information.
The master list shall contain only the cooperative name, address, re-registration num-
ber, and date of registration. The generated reports shall be submitted to the Chief of
Registration Unit or Chief of Registration Division not later than every 5
th
of the month
starting May 2009. The reports shall be maintained and compiled as back-up hard copy
files of re-registered cooperatives.
SECTION 10. Effectivity - These Guidelines shall take effect immediately.
(SGD.) LECRA V. JUAREZ
Chairperson
DANGEROUS DRUGS BOARD
Board Regulation No. 1, series of 2009
Guidelines for the Rehabilitation of First Time Offenders
Under Section 15 of RA 9165 Who Are Not Drug Dependents
640
WHEREAS, it is a declared policy of the State to provide effective mechanisms or
measures to re-integrate into society individuals who have fallen victims to drug abuse or
dangerous drug dependence through sustainable programs of treatment and rehabilitation;
WHEREAS, under RA 9165, the Dangerous Drugs Board is the policy-making and
strategy-formulating body in the planning and formulation of policies and programs on drug
prevention and control and is empowered, among others, to promulgate such rules and
regulations as may be necessary to carry out the purposes of the said Act;
WHEREAS, the Dangerous Drugs Board is likewise empowered to design and de-
velop, in consultation and coordination with the DOH, DSWD and other agencies involved
in drugs control, treatment and rehabilitation, both public and private, a national treatment
and rehabilitation program for drug dependents including a standard aftercare and commu-
nity service program for recovering drug dependents;
WHEREAS, under Section 76 of the Act, the Department of Health (DOH) is tasked to
oversee and monitor the integration, coordination and supervision of all drug rehabilitation
centers, interventions, aftercare, and follow-up programs, projects and activities;
NOW THEREFORE, be it RESOLVED, as it is hereby RESOLVED, to provide the
following guidelines on the rehabilitation of first time offenders under Section 15 of RA 9165
who are determined to be not drug dependents after a drug dependency examination.
SECTION 1. Scope - This Regulation covers all government drug treatment and
rehabilitation centers.
SECTION 2. Definition of Terms
a) Center any government drug treatment and rehabilitation center;
b) Board refers to the Dangerous Drugs Board;
c) Court refers to the Regional Trial Court of the Province/City;
d) Drug Offender a person convicted under Section 15 of RA 9165 and sentenced
to be rehabilitated in a government center for a period of not less than six (6) months;
e) Community service - is a free public labor or work with therapeutic purpose as a
sanction for an offense committed, performed by an offender for the benefit of the commu-
nity designed as an after-care intervention program for the rehabilitation of a drug offender;
f) Drug Dependence refers to a state of psychic and/or physical dependence on
drugs arising in a person following administration or use of the drug on a periodic and
continuous basis;
g) Drug Dependency Examination a procedure conducted by a DOH-Accredited
Physician to evaluate the extent of drug abuse of a person and to determine whether he/
she is a drug dependent or not, which includes history taking, intake interview, determina-
tion of the criteria for drug dependency, mental and physical status and the detection of
dangerous drugs in body specimens through laboratory procedures;
h) Rehabilitation is a dynamic process directed towards physical, emotional/psy-
chological, vocational, social and spiritual change to prepare a person for the fullest life
compatible with his capabilities and potentials and render him able to become a law abid-
ing and productive member of the community without abusing drugs;
SECTION 3. Rehabilitation Programs for Non-Drug Dependent Drug Offenders -
A. Upon the determination that a drug offender is not a drug dependent, after a drug
dependency examination, and he/she does not pose a serious danger to himself/herself,
his/her family or community, the center shall formulate the appropriate rehabilitation pro-
gram for the drug offender, which does not require confinement, and shall include, but not
limited to, any or a combination of the following therapeutic activities:
1) ndividual therapy involves a one to one relationship between the counselor
and the patient with the primary aim of helping the client to get rid or reduce his
drug abusing behavior so that they may be able to get involved in productive
work and develop insights into his conditions;
- also integrates coping skills-training techniques with abstinence-based
addiction counseling. The primary goals of treatment are to enhance and sustain
patient motivation for change, establish and maintain abstinence from all
psychoactive drugs, and foster development of (non-chemical) coping and
problem solving skills to thwart and ultimately eliminate impulses to self-
medicate with psychoactive drugs. The approach combines cognitive-behavioral,
motivational, and insight oriented techniques according to each clients individual
needs. The therapeutic style is emphatic, client centered, and flexible. Strong
emphasis is placed on developing a good working alliance with the client to
prevent premature dropout and as a vehicle for promoting therapeutic change.
2) Group therapy a form of therapy where the individual is helped through
group process. Each member of the group receives immediate feedback from
the other members regarding his verbal and other forms of behavior. Group
support and encouragement are given to the subject on the premise that these
are effective devices, which can produce positive results toward behavioral
modification;
3) Family therapy a form of intervention based on the recognition that the
family, as a primary social unit, can be source of problem leading to drug use.
Family therapy may include restructuring of the family, environmental
manipulation, strengthening of family communication and discovery of family
members to help facilitate the rehabilitation of the drug dependent;
4) Community service the participation of patients in community projects
can help them integrate into the local society and can also promote community
understanding of their needs and recognize of their remaining potential and
acceptance. Projects include among others, the following:
a. Crime and Drug Abuses Prevention Projects;
b. Citizenship and Civic Participation;
c. Economic and Social Development;
d. Health and Sanitation;
642
e. Public Construction Work;
f. Mentoring and ntergenerational Services;
g. Ecology and Environment Projects;
h. Socio-civic religious projects
i. Energy conservation initiatives;
j. Agriculture and livestock management
5) Sheltered Workshops and Livelihood Trainings provides training for skills
development and employment with appropriate compensation in a controlled
environment to increase self-esteem and chances for outside work placement.
B. A drug offender may be placed under the care of a DOH-Accredited Physician where
there is no Center near or accessible to the residence of the drug dependent.
C. The drug offender shall perform the following acts:
1) He/She must report three (3) times a week to the Center as an out-patient or
thru the trained program givers, or DOH-Accredited Physician, as the case
may be;
2) He/She shall comply with the rules and regulations of the Center and the
applicable regulations of the Board; and
3) He/She shall submit himself/herself to his/her rehabilitation program
formulated by the Center or DOH-Accredited Physician.
D. The Center shall perform the following:
1) The Center or the DOH-Accredited Physician shall apprise the Court and
the Board, at the end of the rehabilitation program, by the Head of the Treatment
and Rehabilitation Center of the status of the drug offender and determine whether
further rehabilitation will be for the welfare of the drug offender and his/her family
or the community;
2) The Center shall every two (2) months submit a report to the Board of the
status of the drug offender.
SECTION 4. Funding The amount of TWO MLLON FVE HUNDRED THOUSAND
PESOS (Php 2,500,000.00) is hereby allocated in the Special Fund of the Board for the
implementation of this Regulation.
SECTION 5. Separability Clause f any part, section or provision of this Regulation
is held invalid or unconstitutional, the other parts, sections or provisions not affected thereby
shall continue in operation.
SECTION 6. Effectivity This Regulation shall take effect after fifteen (15) days after
its publication in two (2) newspapers of general circulation and after its registration with the
Office of the National Administrative Register (ONAR), UP Law Center, Quezon City.
(SGD.) SECRETARY VCENTE C. SOTTO
Chairman, Dangerous Drugs Board
ATTESTED BY:
(SGD.) UNDERSECRETARY EDGAR C. GALVANTE
Secretary of the Board
--o0o--
Board Regulation No. 2, series of 2009
Implementing Guidelines for the Implementation of Board Regulation No. 6,
series of 2007, Entitled Classifying Toluene-Based Contact Cement Products
Without at Least Five Percent (5%) Mustard Oil Content as Dangerous Drugs
WHEREAS, the Board promulgated Board Regulation No. 6, Series of 2007 classifying
as dangerous drugs toluene-based contact cement products without at least five percent
(5%) mustard oil content;
WHEREAS, the Board, under Board Resolution No. 30, Series of 2008, directed the
Legal Affairs Division of the Dangerous Drugs Board Secretariat to draft the implementing
guidelines for the aforementioned Board Regulation No. 6;
WHEREAS, the Legal Affairs Division, in consultation with the Committee on Public
Hearings, Technical Working Group, manufacturers and importers of contact cement
products and other stakeholders, has submitted to the Board the draft of the required
guidelines for the said Board Regulation No. 6;
NOW, THEREFORE, be it RESOLVED, as it is hereby RESOLVED, to promulgate
these mplementing Guidelines:
Article I
Coverage
SECTION 1. Coverage - These mplementing Guidelines shall cover all importers,
exporters, manufacturers, distributors, retailers, end-users and handlers of Toluene-based
contact cement products;
Article II
Definition of Terms
SECTION 1. Definitions The following are the definition of the terms used in these
mplementing Guidelines:
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a. Contact Cement- is a synthetic adhesive that is applied to one or both of the
surfaces to be joined, with the surfaces then being brought into contact;
b. Dangerous Drugs include those listed in the Schedules annexed to the 1961
UN Single Convention on Narcotic Drugs, as amended by the 1972 Protocol, and in the
Schedules annexed to the 1971 UN Convention on Psychotropic Substances, which are
annexed to R.A. 9165, as well as those classified as such by the Dangerous Drugs Board
pursuant to Section 93, Article X of RA 9165;
c. Distribution means the sale of Toluene-based contact cement products on a
wholesale basis;
d. Export means any physical departure of Toluene-based contact cement prod-
ucts from the territory of the country which requires customs declaration;
e. Import means any physical introduction of Toluene-based contact cement prod-
ucts into the territory of the country which requires customs declaration;
f. Industrial Use - is the use of Toluene-based contact cement products in the
normal course of the industry of the end-user;
g. Manufacture means the production, preparation, compounding or processing
of Toluene-based contact cement products, either directly or indirectly or by extraction
from substances of natural origin or independently by means of chemical synthesis, and
shall include any packaging or repackaging of such substances, design or configuration of
its form, or labeling or re-labeling of its container;
h. Mustard Oil is a colorless to pale yellow pungent irritating oil that is obtained
by distillation from the seeds, usually of black mustard, after expression of the fatty oil and
maceration with water, or through chemical synthesis, that consists largely of a chemical
allyl isothiocyanate, a volatile compound with a characteristic of pungent odor capable of
inducing eye tears;
i. PDEA refers to the Philippine Drug Enforcement Agency;
j. Person means any person or entity, natural or juridical, including among oth-
ers, a corporation, partnership, trust or estate, joint stock company, association, syndi-
cate, joint venture or other unincorporated organization or group capable of acquiring rights
or entering into obligations, engaged in the importation, manufacture, distribution and sale
of contact cement products classified as dangerous drugs;
k. Retail means the sale of Toluene-based contact cement products on retail
basis;
l. Toluene- is a colorless, flammable, toxic liquid hydrocarbon aromatic com-
pound with a chemical formula of C
6
H
5
CH
3
which is the methyl derivative of benzene, found
in coal-tar light oil and in petroleum and is obtained chiefly from the processing of petro-
leum fractions. t is included in Table of the 1988 UN Convention against llicit Traffic in
Narcotic Drugs and Psychotropic Substances.
Article III
General Guidelines
SECTION 1. Dangerous Drugs Pursuant to Section 2 of Board Regulation No. 6
Series of 2007, Toluene-based contact cement products without at least five percent (5%)
mustard oil content are classified as Dangerous Drugs. (t shall hereafter be referred to in
these mplementing Guidelines as the dangerous drug);
SECTION 2. Mustard Oil The mustard oil may be natural or synthetic. The required
mustard oil content shall be based on the total weight/volume of the Toluene content of the
contact cement product as stated in the product label, carton or other container;
SECTION 3. Markings of Mustard Oil Content in Product Labels - The product
labels, cartons or other containers of Toluene-based contact cement products with at least
five percent (5%) mustard oil content shall indicate the presence of such additive and the
percentage content thereof relative to the total weight/volume of the Toluene content of the
contact cement product;
SECTION 4. Obnoxious Odor and Volatility - The obnoxious odor of the contact
cement with at least five percent (5%) mustard oil shall be present and maintained from
the time of manufacture or importation of the product until the same is utilized by the end-
user, and/or the volatility of the mustard oil shall be less than that of the toluene content of
the product;
SECTION 5. Effect of Non-Compliance with Sections 3 and 4 hereof The non-
compliance with Sections 3 and 4 of this Article shall make the product a dangerous drug
notwithstanding the presence of at least five percent (5%) of mustard oil thereof.
Article IV
Licensing and Permit Requirements for Transactions
of Contact Cement Products Classified as Dangerous Drugs
SECTION 1. License and Permit Requirements
a. No person shall manufacture, distribute or retail the dangerous drug, except pur-
suant to and in accordance with the terms and conditions of a license granted by the
PDEA.
b. No person shall import, export, bring into the Philippines in transit, or redirect from
the Philippines while in transit, the dangerous drug except pursuant to and in accordance
with any of the terms or conditions of:
1. License issued by the PDEA authorizing the person to carry out such
activities; and
2. Separate import permit, export permit, transit permit or redirection permit,
as the case may be, authorizing the person to carry out the specific
transaction as indicated in the permit application.
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c. Transfer or delivery of the dangerous drug from a license holder to another license
holder, except retail sales, shall be made with the prior approval of the PDEA.
d. Unless specified otherwise, the following groups of activities are deemed to be
independent of each other and shall have separate registration and license:
1. mportation, for wholesale distribution or as industrial end-user
2. Exportation
3. Manufacturing
4. Wholesale distribution
5. Retail
6. Storage of the dangerous drug in separate address or addresses
7. ndustrial use from local source
8. Laboratory analysis or technical or teaching program
e. A person shall secure from the PDEA as many licenses as he has places of
business and/or activities. Any person conducting two or more types of business at the
same location shall secure from PDEA a license for each type of business. For this pur-
pose, the PDEA shall issue a consolidated license detailing the type of activities and
corresponding license.
SECTION 2. Application for Licenses
a. An applicant shall apply in writing to the PDEA for the grant of a license and
specify:
1. Full name, private and business address of the applicant;
2. Each activity to which the application relates;
3. f the applicant is a company, the full name and residential address of each
director and the company secretary;
4. f the applicant proposes to engage in the activity under a business name,
that name;
5. Brand name of the dangerous drug to which the application relates and the
address of each place where the proposed activity would be carried out;
6. Premises where the dangerous drug will be stored;
7. Security arrangements that would be implemented at each address (storage,
access, type of building construction, alarm systems, adequacy of supervision
over employees having access, procedure of handling guest and maintenance
personnel, adequacy of system for monitoring receipt), and the distribution and
disposition of the dangerous drug;
8. Name, residential address and qualification of each person under whose
supervision the activity would be carried out:
9. Whether the person (and if the company, any director or the company
secretary) has ever been convicted in the Philippines or elsewhere for a serious
offense or any offense however described relating to trafficking in dangerous
drugs or their respective preparations;
10.Volume estimate in the forthcoming year and volume statistics for the past
year of dangerous drugs; in the case of manufacture, the extraction,
manufacturing and denaturing procedure to be used, name and quantities of
the substances and raw materials to be used, estimates relating to the dangerous
drug produced;
b. An application for license shall be accompanied by:
1. A plan of each of the relevant premises, indicating where the dangerous
drug would be stored, and the location and nature of any security device(s);
2. Registration with the Philippine Export Zone Authority or Board of
nvestments, as applicable;
3. Business permit or certificate of registration issued by the local government
unit, Department of Trade and ndustry or Securities and Exchange Commission;
4. National Bureau of nvestigation (NB) clearance;
5. The prescribed fee; and
6. Other requirements as the PDEA may prescribe.
SECTION 3. Application for Import, Export or Transit Permits
a. An application for an import, export or transit permit shall be made in writing by a
licensee to the PDEA at least fifteen (15) working days in advance before the transaction
is to take place and specify:
1. The full name and address of the importer, exporter, carrier, consignee and if
known, of any ultimate consignee;
2. n the case of a proposed import, export or transit of the dangerous drug, its
trade name or brand name;
3. The quantity, mass and volume of the dangerous drug;
4. The date or period within which the planned import, export or transit is to
take place;
5. The planned transport route, if known, including the planned point of entry or
exit from the Philippines; and
6. n the case of proposed import of the dangerous drug to a bonded warehouse,
the identity and address of the warehouse.
b. n the case of a proposed export of the dangerous drug, the import permit issued
by the government of the foreign State of intended import shall be attached to the applica-
tion for export permit.
SECTION 4. Contents and Conditions of Licenses
a. A license issued by the PDEA shall specify:
1. The full name and address of the licensee;
2. Each activity to which the license relates;
3. The brand name of the dangerous drug to which the license relates;
4. The address of each place and premises at which:
i. the licensed activity is to be carried out; and
ii. the dangerous drugs is to be stored;
5. Such terms and conditions as are necessary and reasonable for
ensuing the proper:
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i. carrying out and supervision of the licensed activity
ii. establishment, maintenance and preservation of record relating to that
activity;
iii. reporting to the PDEA in relation to the carrying out of that activity;
6. n the case of any license to import, export or bring to the Philippines in
transit the dangerous drug, the condition that a separate import, export or
transit permit be first obtained in relation to any such transaction before it
takes place; and
7. Official receipt number of prescribed fee;
SECTION 5. Duration of Licenses and Permits
a. A license shall remain in force for one year, unless earlier surrendered,
suspended or revoked;
b. A permit shall only remain in force for such period as may be specified in it,
which in the case of an import permit for the dangerous drug shall not exceed
six (6) months, and in the case of export permit or transit permit for the dangerous
shall not exceed three (3) months.
SECTION 6. Fees - Unless specifically exempted under any Board issuance, special
law or charter, the required fees per year for the corresponding licenses are as follows:
Type of License Annual Fee
a. License to mport Toluene-based Contact Cement P 5,000.00
Products Without At Least Five Percent (5%)
Mustard Oil (for wholesale distribution or as
industrial end-user) (LTI)
b. License to Export Toluene-based Contact Cement P 5,000.00
Mustard Oil (LTE)
c. License to Manufacture Toluene-based Contact P 5,000.00
Cement Products Without At Least Five Percent
(5%) Mustard Oil (LTM)
d. License to Distribute Toluene-based Contact P 5,000.00
(5%) Mustard Oil (LTD)
e. License to Retail Toluene-based Contact P 3,000.00
(5%) Mustard Oil (LTR)
f. License to Store Toluene-based Contact Cement P 3,000.00
Mustard Oil (when the address of the facility is
separate and distinct from the office address of
the license holder) (LTS)
g. License to Procure from Local Source Corporation P 3,000.00
Toluene-Based Contact Cement Partnership P 2,000.00
Products Without At Least Five Percent Cooperative P 1,000.00
(5%) Mustard Oil for ndustrial Individual P 500.00
Purposes (LTPI)
h. License to Conduct Laboratory Analysis or Technical P 500.00
Research or nstructional Program Using Toluene-
Based Contact Cement Products Without At Least
Five Percent (5%) Mustard Oil (LTC)
SECTION 7. Licensee to Deal Only with Other Licensee Except in retail sales, a
license holder shall transact the dangerous drug only to another license holder.
Article V
Industrial Use
SECTION 1. Dangerous Drug Control Book A holder of an LT license (as industrial
end-user) or LTP license shall maintain a Dangerous Drug Control Book, computerized or
manual and registered with the PDEA, to record the daily issuances of the dangerous drug
to its workers directly handling the said dangerous drug. t shall be kept and maintained
under a secure place by the authorized custodian of the dangerous drug and subject to
inspection by the PDEA at any reasonable time and day. The book shall, among others,
contain the following information:
a. Date and time of issuance or receipt of the dangerous drug;
b. Full name of the worker receiving or returning the dangerous drug;
c. Quantity of the dangerous drug issued or received;
d. Signature of the worker receiving or returning the dangerous drug; and
e. After the last entry for the day, the days summary of the actual usage
(issued minus returned) of the dangerous drug per worker.
SECTION 2. Submission of Report to the PDEA The aforementioned license hold-
ers shall submit to the PDEA a monthly summary of the actual usage of the dangerous
drug per worker for the month being reported. The summary shall be submitted to the
PDEA within ten (10) days of the succeeding month.
Article VI
Retail Sales
SECTION 1. Sale to Individual An individual who purchases the dangerous drug
from a retailer shall be required to present a valid identification card and submit a barangay
clearance for the particular purchase, duly issued by the Barangay Chairman of the barangay
where the individual presently resides, to the retailer. The barangay clearance shall indi-
cate, among others, the quantity of the dangerous drug to be purchased, the purpose
thereof and the Tax dentification Number (TN) of the individual. t shall be valid only for
three (3) days from date of issuance;
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SECTION 2. Sale to Industrial User A holder of an LTP license may procure the
dangerous drug from a retailer by presenting a copy of the license duly certified to by its
Chief Executive Officer, Managing Partner, Manager or Proprietor, as the case may be, to
the retailer. The original or duplicate copy of the Special Power of Attorney, executed by
the appropriate afore-named officers in favor of the individual who shall personally procure
and receive the dangerous drug, shall also be presented to the retailer together with a valid
identification card of the attorney-in-fact. A clear photocopy of the LTP license and the
Special Power of Attorney shall be submitted to the retailer for each purchase of the
dangerous drug. The retailer shall make a notation on the photocopies that the same are
the true and exact reproduction of the documents presented;
SECTION 3. Prohibited Sale to Minors - No retailer shall sell or deliver, with or without
consideration, to a minor any quantity of the dangerous drug.
Article VII
Record of Dangerous Drug Transactions
SECTION 1. Dangerous Drug Register All persons granted a license under these
mplementing Guidelines shall keep and maintain a dangerous drug register issued by the
PDEA. An individual, who shall make an entry in a drug register, shall write and sign his/
her name legibly, indicating the date and time of the entry. t shall contain, as may be
applicable, the following information:
a. Name, address and license of the foreign supplier, importer, manufacturer,
distributor or retailer from whom the dangerous drug has been imported,
purchased or acquired;
b. Quantity and brand name of the dangerous drug imported, purchased or
acquired;
c. Date of importation, purchase or acquisition;
d. Name, address and license of the distributor, retailer, industrial end-user or
individual purchaser to whom the dangerous drug has been sold or delivered;
e. Quantity and brand name of the dangerous drug sold or delivered;
f. Date of sale or delivery;
g. n case of return, the name of the person to whom the dangerous drug was
returned.
SECTION 2. Submission of Report to the PDEA - A certified true copy or computer
printout of the aforesaid record covering a period of six months, duly signed by a respon-
sible and authorized signatory of the license holder, shall be submitted to the PDEA,
within fifteen (15) days following the last day of June and December of each year.
SECTION 3. Correction of Entry - An individual may, in the presence of a witness,
correct a mistake in an entry, provided that the individual making the correction, writes and
signs his/her name legibly, indicating the date, in the presence of a witness who shall
likewise write and sign his/her name legibly.
SECTION 4. Retention of Register and Documents - Any person required to keep a
dangerous drug register shall, subject to any written Direction to the person by the PDEA,
retain possession of the register, requisitions and commercial documents relating to en-
tries therein for two (2) years after the date of the last entry in the register. Such records
shall be subject anytime to review by the PDEA.
Section 5. Period to Make an Entry - Any person required to keep and maintain a
dangerous drug register shall within twenty four (24) hours of any import, export, manufac-
ture, sale, purchase or disposal by that person of the dangerous drug, enter or cause to be
entered the required information in the register;
Section 6. False or Misleading Entries - Any person required to keep and maintain a
register or other record shall not:
a. make, or cause or permit to be made, an entry in or on it that is, to the knowledge of that
person, false or misleading; or
b. cancel, obliterate or alter any entry, except to correct an error.
Section 7. Duty to Notify Loss, Destruction or Discrepancies - Any person required to
keep and maintain a register shall upon discovery, submit a written report immediately to
the PDEA:
a. the loss or destruction of the register, or of the whole or any part of the
contents of the register; or
b. any discrepancy in the register, other than an erroneous entry.
Article VIII
Safekeeping of Dangerous Drug
Section 1. Responsibility of License Holder All license holders shall keep in a se-
cure and safe storage or depot the dangerous drug under their custody or control. They
shall ensure that the safekeeping and handling of the dangerous drug is in accordance
within the requirements stated in the Material Safety Data Sheet.
Section 2. Limited Access All license holders shall take such measures, as the
PDEA may direct in writing, to ensure that no unauthorized person has access to the
combination, key or other means of access to any secure storage facility or depot contain-
ing the dangerous drug.
Article IX
Loss or Theft of Dangerous Drug
Section 1. Duty to Report Loss or Theft All license holders shall immediately
report to the PDEA, in writing, the loss or theft of any quantity of the dangerous drug
which are under their custody or control and record relevant particulars of the loss or theft
in the appropriate register.
Article X
Inspection of Records and Premises
Section 1. Inspection for Compliance - A license holder shall, when required by a
PDEA regulatory compliance officer, open the dangerous drug register and supporting
652
documents for inspection at any reasonable time and day. During the said inspection, the
PDEA officer may require the authorized custodian for a written accounting of the dangerous
drug under his/her custody and control for a specified period of time. The license holder
shall allow the PDEA officer access to any facility to determine compliance with these
mplementing Guidelines.
Article XI
Applicability of Board Regulation No. 3, Series of 2003
Section 1. Suppletory Application The provisions of Board Regulation No. 3, Series
of 2003 shall apply in a suppletory manner.
Article XII
Penalty
Section 1. Penalty for Violation - Any violation of these mplementing Guidelines shall
be penalized under Section 32 of R.A. 9165, without prejudice to any other criminal liability
arising from the same act punishable under other provisions of R.A. 9165. n case the
violation is committed by a partnership, corporation, association or any juridical entity, the
partner, president, director, manager, trustee, estate administrator, or officer who consents
to or knowingly tolerates its commission, or through negligence failed to avert such viola-
tion, shall be held criminally liable.
Article XIII
Separability Clause
Section 1. Judicial Declaration of Partial Invalidity - f for any reason, any section or
provision is declared invalid or unconstitutional, the remainder of these mplementing
Guidelines shall not be affected by such declaration and shall remain in force and effect.
Article XIV
Effectivity Clause
Section 1. Effectivity - This Regulation shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation and after its registration with the
(SGD.) Secretary VCENTE C. SOTTO
Attested:
(SGD.) UNDERSECRETARY EDGAR C. GALVANTE
--o0o--
Board Regulation No. 3, s. 2009
General Guidelines for the Conduct of Random Drug Testing
for Students of Secondary, Tertiary, Vocational and Technical Schools,
Amending Board Regulation No. 6, series of 2003
WHEREAS, Section 36 (c), Article of Republic Act 9165, mandates that the stu-
dents of secondary and tertiary schools shall undergo drug testing and that all drug testing
expenses whether in public or private schools under this Section will be borne by the
government;
WHEREAS, government already implemented a similar random drug testing activity
in 2005 for secondary level students, and in 2007, for tertiary level students;
WHEREAS, there is a need to amend provisions of the implementing guidelines in
order to adopt new policy directives and remedy perceived ambiguities in the previous
issuance;
WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, to amend Board Regu-
lation No. 6, series of 2003 specifically the following provisions thereof:
SECTION 1. Subject, is hereby amended by including students of
vocational and technical schools, as among those covered by the
guidelines which should now read as follows:
Subject: GENERAL GUIDELINES FOR THE CONDUCT OF RANDOM
DRUG TESTING FOR STUDENTS OF SECONDARY, TERTIARY,
VOCATIONAL AND TECHNICAL SCHOOLS
SECTION 2. Letter A Guiding Principles in the implementation of
Random Drug Testing in Schools and Management of Drug Test Results
is hereby amended by adding another paragraph as paragraph number
12.
12. Random drug testing for students is considered by the
government as entirely a health issue and aims to provide appropriate
interventions, to those who will be tested positive for dangerous drug
use, which will help the student stop further use and/or abuse of the
substance.
SECTION 3. Letter C DEFINITION OF TERMS is hereby amended to
include the terms CHAIN OF CUSTODY, INTERVENTIONS and
LABORATORY, which shall be defined as follows:
CHAIN OF CUSTODY - refers to procedures to account for each
specimen by tracking its handling and storage from point of collection
to final disposal. These procedures require that the applicants identity
is confirmed and that a Custody and Control Form is used from time of
654
collection to receipt by the laboratory. Within the laboratory, appropriate
chain of custody records must account for the samples until disposal.
INTERVENTIONS - are therapeutic programs appropriate for high-risk
individuals/students who are using dangerous drugs and who need
special assistance to recognize the signs and symptoms of initial drug
use and dependency. It may include corrective or rehabilitative actions
that may take the form of crisis intervention, peer counseling, peer
leadership programs, parent/peer groups, or psychological counseling
at the individual or family level and structured rehabilitation programs.
It may also include medical intervention of the afflicted student
whenever necessary.
LABORATORY - refers to a DOH-Accredited private or government facility
that is capable of testing a specimen to determine the presence of
dangerous drugs therein.
SECTION 4. Letter D PROCEDURES IN THE CONDUCT OF RANDOM DRUG
TESTING is hereby amended such that:
Item 2.a should read as: The Supervising Agency shall inform all
schools on their inclusion in the random drug testing program.
Item 4. On Treatment of Random Drug Test Results is hereby amended
in its entirety such that it shall read as follows:
4. TREATMENT OF RANDOM DRUG TEST RESULTS
a. The results of the test shall be strictly confidential. No school shall
publish or post results whether positive or negative.
b. Any person who violates the rules of confidentiality of the results and
selection shall be liable under Section 72 of RA 9165 and such other
appropriate laws.
c. In case the test results are positive at the screening level, the same
specimen shall immediately be submitted for confirmation observing
all strict chain of custody procedures and confidentiality of records.
d. If a student is confirmed to be using a dangerous drug, the following
shall be observed:
i. The Laboratory, places results in a sealed envelop for
transmission to the Central Office of the Supervising Agency
ii. The Supervising Agency shall then transmit the results to the
concerned school/institution by informing the particular school/
institutions random drug testing (RDT) Coordinator previously assigned
by the selection board.
1. The Supervising Agency shall remind the RDT
Coordinator of the confidential nature of the results and strict handling
of the chain of custody of the information should be observed.
iii. The school/institutions RDT Coordinator shall then inform the
parent and the student of the results and how the information is regarded
with utmost secrecy and confidentiality.
1. The Coordinator shall remind the student that divulging
the results with anybody will be at his own risk; and
2. That if possible, the information should remain in the
confines of their house.
iv. The parent, the RDT Coordinator and the student shall then
prepare for a case conference to discuss issues of drug use and possible
dependency.
v. The Drug Testing Coordinator shall refer the student and his/her
parent to a government-owned DOH-accredited facility or DOH-accredited
government physician to determine the students dependency level.
vi. A date and venue shall be selected for the case conference
1. Date should be agreeable to all concerned in the case
conference (Parent, Student, RDT Coordinator and the DOH Accredited
Physician).
2. Venue should have a semblance of privacy (preferably in a
room, with an office table where group discussions and individual
sessions can be done).
3. Whichever is more convenient for the student and parent,
venue could be as follows:
a. Regional Office or hospital of the DOH
b. Regional Office of the Supervising Agency
c. Other designated venue which can assure privacy
vii. The RDT Coordinator shall inform Supervising Agency Central
Office coordinator on the possible dates and venue for further discussions
of options.
viii. Once, finalized, the group shall proceed as planned with the
case conference.
1. Drug dependency level of the student shall be evaluated;
2. Cross reference of information shall be validated from the
parent and RDT Coordinator;
3. Treatment planning for the student shall be discussed and
presented to the student and parent;
656
4. Options for treatment should be presented to the parent and
student;
5. If a student (below 18 years of age) is found to be a drug
dependent, the school authority shall refer him/her to the Department
of Social Welfare and Development (DSWD) or a local social worker for
counseling and other intervention;
6. The parent and the student may choose to enroll the student
in a private rehabilitation center or program or opt to avail of the
rehabilitation services of the government through a DOH-accredited
facility.
a. If child opts for government service, the DOH treatment
and rehabilitation centers nearest to the area can provide
services;
b. If the parent and student would opt for private services,
appropriate referrals will be done, taking note of the
progress of treatment on a regular basis;
7. Trained guidance counselors can also be utilized.
e. If a student is confirmed negative from dangerous drug use, the
following shall be observed;
1. Names per school/institution of all who tested negative will
be summarized in a result form.
2. The Summarized result form shall be transmitted to the
Supervising Agency concerned.
3. Supervising Agency Central Office shall forward the same to
the concerned school/institutions RDT Coordinator.
4. The RDT Coordinator and/or teacher adviser/and/or guidance
counselor shall individually inform each student and parent concerned
regarding the results.
f. Positive confirmatory drug test result under this Regulation shall not
be a ground for expulsion or any disciplinary action against the student
and should not be reflected in any and all academic records. Under no
circumstances shall the results be used to incriminate any student for
further legal action which may result to administrative/civil/criminal
liabilities.
Likewise, consistent with the requirements of confidentiality, the
results of drug tests conducted pursuant to this Board Regulation, shall
not be used as evidence in any court or tribunal, where the subject
student stands to be accused of any crime or felony, and for any other
purpose.
g. The student shall then undergo the prescribed intervention program
under the supervision of the DOH-accredited facility or physician, or
private practitioners, or social worker, in consultation with the parent.
Such process of observation and counseling shall be done in
coordination with the Drug Counselor of the school.
h. If student shows no signs of improvement, recovery or fails the drug
tests the second time, the DOH-accredited facility or physician, may make
a recommendation to the student, parent, and Drug Testing Coordinator
to have the student referred to a DOH-accredited facility suited to the
students level of dependency. If another drug testing is conducted for
another period on the same population, and the student is found positive
the second time, the school shall proceed in accordance with Section
61, RA 9165.
i. If the parents refuse to act, the school shall proceed in accordance to
Sec. 61 of RA 9165 without prejudice to the provision of Section 73, RA
9165.
SECTION 5. Letter F TRAINING OF GUIDANCE COUNSELORS is hereby
amended such that letter F shall read as follows:
F. TRAINING OF GUIDANCE COUNSELORS
The Department of Education (DepEd), Commission on Higher
Education (CHED), Technical Education and Skills Development Authority
(TESDA), the Philippine Drug Enforcement Agency (PDEA) and Dangerous
Drugs Board (DDB) in coordination with each other, shall formulate and
conduct the training program for guidance counselors for the purpose
of enhancing their skills in handling drug abuse prevention programs
and handling drug dependency cases. The school guidance counselors
and other qualified medical personnel shall be encouraged to undergo
DOH accreditation.
SECTION 6. Letter H ENFORCEMENT AND COMPLIANCE is hereby amended
to delete the phrase impose sanction and change it with the phrase implement
interventions and adding as additional sentence Interventions should be con-
sistent with the provisions of this Board Regulation and its guiding principles of
the first paragraph and adding as third paragraph thereof the phrase; Supervis-
ing Agencies should encourage institutionalization of Drug Testing Activities in
schools/institutions concerned over-and-above the random drug testing program
conducted by the government. The Supervising Agencies and the DOH should
help build up capacities of schools/institutions to achieve competencies and self-
reliance on random drug testing. Schools who initiated the conduct of similar
drug testing activities shall submit reports to the Supervising Agencies for proper
accreditation of the Department of Health. So that letter H of the Guidelines
should now read as follows;
H. ENFORCEMENT OF COMPLIANCE
Students who refuse to undergo random drug testing shall be dealt with in
accordance with the rules and regulations of the schools; provided that at no
time refusal to undergo testing shall not give rise to a presumption of drug use
or dependency; provided further that the school may implement interventions
on such refusal other than the offense of drug use or dependency. Interventions
658
should be consistent with the provisions of this Board Regulation and its
guiding principles.
Schools that refuse to implement the random drug testing program shall be
liable under Section 32 of RA 9165 without prejudice to other administrative
sanctions imposed by the Supervising Agencies. The Supervising Agency shall
report the same to the Philippine Drug Enforcement Agency (PDEA) and the
Dangerous Drugs Board (DDB).
Supervising Agencies should encourage institutionalization of Drug
Testing Activities in schools/institutions concerned over-and-above the
random drug testing program conducted by the government. The
Supervising Agencies and the DOH should help build up capacities of
schools/institutions to achieve competencies and self-reliance on random
drug testing. Schools who initiated the conduct of similar drug testing
activities shall submit reports to the Supervising Agencies for proper
accreditation of the Department of Health.
Attached is the flow chart* of activities which shall be an integral part of this
Regulation.
All issuances, including Board Regulation No. 6, s. 2003 or part thereof incon-
sistent herewith, are deemed repealed or modified accordingly.
SECTION 7. Effectivity - This Regulation shall take effect after fifteen (15) days after
its publication in two (2) newspapers of general circulation and after its registration with the
(SGD.) SEC. VCENTE C. SOTTO
Attested by:
(SGD.) Undersecretary EDGAR C. GALVANTE
DEPARTMENT OF AGRICULTURE
Administrative Order No. 07
Code of Conduct for the Officials and
Employees of the Department of Agriculture
Pursuant to the Presidential Anti-Graft Commission (PAGC) Memorandum dated 28
January 2009 on Agency-Specific Code of Conduct.
Pursuant to DA Special Order 458 series of 2008 on the creation of a seven-member
team to implement the PAGC project Promoting the Formulation and Enforcement of the
Code of Conduct of Government Agencies in the Philippines.
NOW THEREFORE, the Department of Agriculture hereby promulgates these:
CODE OF CONDUCT FOR THE OFFCALS AND EMPLOYEES OF THE DEPART-
MENT OF AGRCULTURE
Rule
Scope
The provisions of this Code shall have common applications to all officials and
employees of the offices of the Department of Agriculture.
Rule
Definition of Terms
Terms as used in these guidelines shall have the following definition:
1. DA refers to the office/units of the Department of Agriculture.
2. DA officials and employees are all those employed in the DA central office, RFUs
Bureaus, Attached Agencies, and Attached Corporations.
2.1 RFUs are the DA Regional Field Units, includes:
a. CAR, Region -X, Caraga and ARMM
2.2 Bureaus include:
a. Agricultural Training nstitute (AT)
b. Bureau of Agriculture & Fisheries Product Standards (BAFPS)
c. Bureau of Animal ndustry (BA)
d. Bureau of Agricultural Research (BAR)
e. Bureau of Agricultural Statistics (BAS)
f. Bureau of Plant ndustry (BP)
g. Bureau of Soils and Water Management (BSWM)
2.3 Attached Agencies:
a. Agricultural Credit Policy Council (ACPC)
b. Bureau of Fisheries Aquatic Resources (BFAR)
c. Bureau of Post Harvest Research & Extension (BPHRE)
d. Cotton Development Administration (CODA)
e. Fertilizer Pesticide Authority (FPA)
660
f. Fiber ndustry Development Authority (FDA)
g. Livestock Development Council (LDC)
h. National Agricultural & Fisheries Council (NAFC)
i. National Meat nspection Service (NMS)
j. Philippine Carabao Center (PCC)
2.4 Attached Corporations
a. National Dairy Authority (NDA)
b. National Food Authority (NFA)
c. National rrigation Administration (NA)
d. National Tobacco Administration (NTA)
e. Philippine Coconut Authority (PCA)
f. Philippine Crop nsurance Corporation (PCC)
g. Philippine Rice Research nstitute (PhilRice)
h. Quedan Rural Credit Guarantee Corp. (Quedancor)
i. Philippine Fisheries Devt Authority (PFDA)
j. Sugar Regulatory Authority (SRA)
3. Central Office refers to the DA offices/units located at Elliptical Road Diliman, Quezon
City.
4. Gift is the thing or a right given gratuitously, or an act of liberality in favor of another who
accepts it, and shall include a simulated sale or at ostensibly onerous disposition thereof.
t shall include an unsolicited gift of nominal or insignificant value not given in anticipation
of, or in exchange for, a favor from any DA official or employee.
5. Family of public officials or employees means their spouses and children.
6. Relatives refer to any and all persons related to a DA officials or employee up to the
fourth civil degree of consanguinity or affinity, including bilas, inso, balae.
7. Conflict of interest arises when a DA official or employee is a member of board, an
officer, a substantial stockholder of a private corporation, an owner or one who has sub-
stantial interest in a business such that the interest of a such corporation or business, or
his rights or duties therein may be opposed to or affected by the faithful performance of
official duty. A conflict of interest may also exist when the objectivity of a DA official or
employee in performing official duties is impaired or may reasonably appear to be impaired
by the personal concerns of a DA official and employee which run counter to the objectives
of the agency; or when the official act results in unwarranted personal benefit on his/her
part or of his/her relatives.
8. Post-employment is when a DA official or employee leaves the agency permanently and
obtains employment in the private sector or another government agency.
9. Confidential information means information related to pending cases not yet made a
matter of public record, as well as information not yet made public concerning the work of
any personnel.
Notes, drafts, research papers, internal discussion, internal memoranda, records
of internal deliberations and similar papers that DA officials and employees use in prepar-
ing decisions, resolutions or orders are covered by the definition of the term confidential
information.
Rule
Fidelity to Duty
SECTION 1. DA officials and employees shall, at all times, exhibit utmost respect to
the public and deep sense of commitment to the mandate of the Office.
SECTION 2. DA officials and employees shall not discriminate against or dispense
undue favors to anyone. Neither shall they allow kinship, rank, position, affiliation or favors
to influence the performance of their official acts or duties. They shall endeavor to discour-
age wrong perception of their roles as dispensers or peddlers of undue patronage.
SECTION 3. DA officials and employees shall perform their duties efficiently, promptly,
and without bias or prejudice.
SECTION 4. DA officials and employees shall avoid any impropriety and the appear-
ance of any impropriety in all of their activities.
SECTION 5. DA officials and employees shall not engage in conduct incompatible
with the faithful discharge of their official duties.
SECTION 6. DA officials and employees shall, at all times perform official duties
properly and diligently. They shall fully commit themselves to the duties and responsibili-
ties of their office during working hours.
SECTION 7. DA officials and employees shall not discriminate or manifest, by word or
conduct, bias or prejudice based on race, religion, national or ethnic origin, gender, politi-
cal belief or affiliation.
SECTION 8. DA officials and employees shall use the assets and resources of the
office, including funds, properties, goods and services economically, productively, effec-
tively, only for official activities, and solely for the purpose required by law.
SECTION 9. DA officials and employees shall carry out their duties and responsibili-
ties as public servants with utmost and genuine courtesy, fairness, honesty and compli-
ance with the law.
SECTION 10. DA officials and employees shall submit performance reports and other
documents required by law such as Statement of Assets and Liabilities and Net worth,
ncome Tax Returns and other public documents as may be required by the Agency.
Rule V
Confidentiality
SECTION 1. DA officials and employees shall not disclose to any unauthorized per-
son any confidential information acquired by them while employed in the Department,
whether such information came from authorized or unauthorized sources.
662
SECTION 2. Confidential information available to specific individuals by reason of
statute, rule or administrative policy shall be disclosed only by persons authorized to do
so.
SECTION 3. DA officials and employees leaving the Department for whatever reason,
including resignation, termination of contract, or dismissal, shall bind themselves not to
disclose confidential information acquired by them during their employment in the Depart-
ment otherwise their clearances will not be issued.
Rule V
Transparency
SECTION 1. DA officials and employees shall extend prompt, courteous, adequate
and effective service to the public.
SECTION 2. DA officials and employees shall state their policies and procedures in
clear and understandable language, ensure openness of information, public consultation
whenever appropriate, encourage suggestions, simplify and systematize policy, rules and
procedures.
SECTION 3. DA officials and employees shall, at all times, exercise transparency in
all transactions, contracts relationships and all other matters involving public interest.
SECTION 4. DA officials and employees shall, at all times make accessible all public
documents and transactions for inspection by the public within reasonable working hours
provided:
a. such information, record or document must be kept secret in the interest of national
defense or security or the conduct of foreign affairs;
b. such disclosure would put the life and safety of an individual in imminent danger;
c. the information, record or document sought falls within the concepts of establishing
privilege or recognized exceptions as may be provided by law or settled policy or jurispru-
dence* (e.g. closed door Cabinet sessions, executive sessions of Congress, deliberations
of the Supreme Court, trade secrets and the like);
d. such information, record or document comprises drafts decisions, orders, policy deci-
sions, memoranda, etc.
e. it would disclose information of a personal nature where disclosure would constitute a
clearly unwarranted invasion of personal privacy;
f. it would disclose investigatory records complied for law enforcement purposes or infor-
mation which if written would be contained in such records, but only to the extent that the
production of such records or information would: (i) interfere with enforcement proceed-
ings, (ii) deprive a person of a fair trial or impartial adjudication, (iii) disclose the identity of
a confidential information furnished only by the confidential source or (iv) unjustifiably dis-
close investigative techniques and procedures.
Rule V
Conflict of nterest
DA officials and employees shall always uphold the public interest over personal inter-
est. DA resources and powers must be employed and used efficiently, effectively, honestly
and economically, particularly to avoid wastage in public funds and revenues, thus:
SECTION 1. DA officials and employees shall avoid conflicts of interest in performing
official duties. They are required to exercise utmost diligence in detecting conflicts of
interests, in disclosing them to the designated authority and in terminating them as they
arise.
a. A conflict of interest exists when:
(i) The DA officials and employees objectivity or independence of judgment in
performing official duties is impaired or may reasonably appear to be impaired;
or
(ii) The DA officials and employees, his or her immediate family, common - law
relations or business or other financial interest, would derive pecuniary or material
benefit because of his/her official act.
b. The term immediate family shall include the following: whether related by consanguin-
ity or affinity, (i) spouse, (ii) children, (iii) brother, (iv) sister, (v) parent, (vi) grandparent, (vii)
grandchildren, (viii) and all other relative within the fourth civil degree.
SECTION 2. DA officials and employees shall not:
a. Receive cash, gifts, travel or other forms of material accommodation for assisting or
attending to parties engaged in transactions or involved in actions or proceedings with the
Department. Neither shall he/she accept such cash, gifts and other forms of remuneration
given for the reason of his/her office or functions.
b. Solicit or accept any gifts, loan, gratuity, discount, favor, hospitality, service or benefit
under any circumstances from any person who shall transact, or who has transactions
with the Department, or from any person acting and in behalf of said person.
ncluded in this scope is the acceptance of any cash, gift, travel or other forms of
remunerations from persons, or anyone acting in behalf of them, who does not have pending
applications filed before this Department but within the scope of its jurisdiction.
c. Use their position within the Department for personal gain or for the benefit of others, or
provide assistance or advice to others in order to give them an unfair advantage, whether
for a gain or not, over other people in their dealings with the Department.
d. Participate in any official action involving a party with whom either the said DA officials
and employees or any member of the said personnels immediate family is negotiating for
future employment.
664
e. Knowingly employ or recommend for employment any member of the immediate family
of any other DA officials and employees.
SECTION 3. For purposes of this Code, cash, gifts and other forms of material ac-
commodation shall be presumed to have been given for the reason of his/her office or
functions if they were given by government officials and employees within the jurisdiction of
the Department to investigate.
Cash gifts and other forms of material accommodation shall also be presumed to have
been given for the reason of DA officials and employees office or functions.
SECTION 4. Nothing in Section 2 and 3 above shall prohibit DA officials and employ-
ees from (a) accepting invitations to or attending social functions in relation to the
personnels official duties; (b) accepting a public award presented in recognition of public
services; (c) receiving commercially reasonable loan made as part of the ordinary transac-
tion of the lenders businesses; and (d) donating to the Department, provided, however that
the award, loan or donation does not pertain to a person or entity who has transactions or
involved in actions or proceedings with the Department, or from any person acting for and
in behalf of said person or entity.
SECTION 5. The practice of profession is prohibited except on a limited basis subject
of the express permission and limited scope of authority given by the Secretary and pro-
vided that:
a. The practice of profession does not require or induce the DA officials and employees to
disclose confidential information acquired while performing official duties;
b. The practice of profession shall not be in favor of, or shall not be under an existing
employment with, any other government agency;
c. The practice of profession shall not in any way be contrary to the matters affecting the
operations of DA; neither shall the practice pertain to any matter, proceeding or application
pending with DA;
d. The practice of profession shall in no way use directly or indirectly any resource of the
Department or any Government property;
e. The practice of profession shall not in any way interfere with the responsibilities and
duties of the personnel;
f. The practice of profession shall be subject to the provisions of RA 6713 and such other
relevant Civil Service Rules;
Rule V
Duty to Report
t is the duty of all DA officials and employees who witness or become aware of any
violation of this Code by any DA Personnel, or any attempted or consummated act of graft
and corruption involving any DA Personnel, to report the same at the earliest possible time
to the Legal Division of the Department.
Rule V
Reporting and Protection of the Whistleblower
SECTION 1. A Whistleblower shall report/complain about acts or omissions that are:
a. Contrary to laws, rules or regulations and office policies;
b. Unreasonable, unjust, unfair, oppressive or discriminatory; or
c. Undue or improper exercise of powers and prerogatives.
SECTION 2. Rights of Whistleblowers:
2.1 Protection Against Retaliatory Actions - No administrative action shall be entertained
against a whistleblower involving a protected disclosure.
No retaliatory action shall be against a whistleblower such as, but not limited
to, discriminatory action, including those made under the guise of policy and
procedural determinations designed to avoid claims of victimization; reprimand;
punitive transfer; undue poor performance reviews; obstruction of the investigation;
withdrawal of essential resources; adverse reports; attachment of adverse notes
in the personnel file; ostracism; questions and attacks on motives; accusations
of disloyalty and dysfunction; public humiliation; and the denial of work necessary
for promotion.
Any official or employee who refuses to follow orders to perform an act that
would constitute a violation of this Section shall likewise be protected from
retaliatory actions.
2.2 No Breach of Duty of Confidentiality - A whistleblower that has an obligation by way of
oath, rule or practice to maintain confidentiality of information shall not be deemed to have
committed a breach of such duty if he/she/they make/s a protected disclosure of such
information.
SECTION 3. Conditions for Protected Disclosure - Whistleblowers shall be entitled to
protection on and benefits under these Rules provided that all the following requisites are
fulfilled:
a. The disclosure is made voluntarily, in writing and under oath;
b. The disclosure pertains to a matter not yet the subject of a complaint already filed with,
or investigated by the Department or by any other concerned office; unless, the disclosure
are necessary for the effective and successful prosecutions, of material evidence not yet in
its possession;
c. The whistleblower assists and/or participates in proceedings commenced in connec-
tion with the subject matter of the disclosure;
d. The whistleblower should have personal knowledge of facts and information covered by
the disclosure; and
666
e. The information given by the whistleblower contains sufficient particulars and, as much
as possible, supported by other material evidence.
SECTION 4. Unprotected Disclosures - The following shall not be deemed protected
disclosure under these Rules:
a. Disclosure made by an official or employee in connection with a matter subject of his/
her official investigation;
b. Disclosures which later appear to be absolutely groundless or without basis. An inves-
tigation may be declined or discontinued if it is shown that the disclosure was made
without reasonable grounds;
c. Disclosures concerning merits of Office policy;
d. False and misleading disclosures; and
e. Disclosure that are later retracted by the whistleblower for any reason. Such whistleblower
shall lose the right to claim benefit or protection under these Rules for the same disclosure
and his/her retraction shall be considered in determining whether or not he/she will be
admitted as a whistleblower with respect to future disclosures.
A person who makes a disclosure deemed unprotected shall not enjoy any immu-
nity, or other right or privilege accorded under these Rules.
SECTION 5. Confidentiality - At all times during and after the protected disclosure,
and throughout and after any proceeding taken thereon, the whistleblower, subject to the
condition in Section 6 hereof shall be entitled to confidentiality as to his/her/their identity.
SECTION 6. Necessity for Testimony - Notwithstanding the provisions in the immedi-
ately preceding section, the whistleblower may be compelled to disclose his/her/their
identity and testify if his/her/their testimony is necessary or indispensable to the success-
ful prosecution of any charge arising from the protected disclosure.
SECTION 7. Disclosure made by a Party to a Misconduct - A disclosure made by a
person who is himself/herself a party to be disclosed conduct constituting misconduct or
wrongdoing, whether as principal, accomplice or accessory, is deemed a protected disclo-
sure under these Rules and such person shall be entitled to the benefits of a whistleblower,
provided that:
a. The whistleblower complies with the conditions under Section 3 hereof;
b. The whistleblower should not appear to be the guiltiest;
c. The whistleblower testifies in accordance with his/her disclosures.
d. There is no other direct evidence available for the proper persecution of the misconduct
in relation to Section 3 (b); and
e. The whistleblowers testimony can be substantially corroborated on material points in
conformity to Section 3 (e).
SECTION 8. Procedure for Protected Disclosure - mmediately upon receipt of the
disclosure, the Secretary, or his/her duly authorized representative, or the DA Resident
Ombudsman shall:
a. Evaluate the disclosure if the same qualifies as protected disclosure under Section 1,
Section 3, and as may be applicable Section 7 of these Rules;
b. Should disclosure qualify as such, to certify it as a protected report; and
c. To conduct appropriate actions, provided, further, that the declaration as to whether or
not a report shall be considered as a protected disclosure shall be made within a period
not exceeding three (3) working days from the receipt thereof.
SECTION 9. Protection of Witnesses - Any employee who testifies in any proceed-
ings arising from a protected disclosure shall be accorded in the same protection against
retaliatory actions as provided in Section 2 hereof.
SECTION 10. Incentives for the Whistleblower - The Secretary may elect to accord
the whistleblower an incentive he/she may deem appropriate, subject to existing rules and
regulations governing such incentives, e.g. Civil Service Commission, Commissions on
Audit, Department of Budget and Management, etc.
SECTION 11. Violations of Confidentiality - Any employee who violates the protection
of confidentiality of a protected disclosure and of the confidentiality of proceedings shall be
subject to disciplinary actions as may be provided under relevant Department issuances,
Civil Service Commission issuances, the Administrative Code of 1987, RA 6713, RA 3019,
and other relevant laws, rules and/or regulations.
SECTION 12. Retaliatory Actions - Any employee who does, causes or encourages
retaliatory actions, as defined in these Rules, against a whistleblower and/or employees
supporting him/her, or any of his/her relatives within the fourth civil degree of consanguinity
or affinity shall be immediately subjected to administrative and/or criminal proceedings,
and in appropriate cases, immediately placed under preventive suspension.
SECTION 13. Perjurious Statements - False and misleading disclosures or state-
ments shall be sufficient ground for the termination of benefits of whistleblowers under
these Rules, including his immunity from administrative cases as well as disciplinary
proceedings against the whistleblower(s) as may be appropriate.
Rule X
Nepotism
SECTION 1. Appointment made in favor of a relative of the appointing or recommend-
ing authority, or of the chief of the Division/Service, or of the person exercising immediate
supervision over the appointee, is hereby prohibited.
668
SECTION 2. For purposes of this code, the word relative and members of the family
referred to all those related within the 4th degree either of consanguinity or of affinity.
SECTION 3. Exempted from the operation of the rules on nepotism are persons em-
ployed on a confidential capacity.
SECTION 4. The restriction mentioned in section 1, shall not be applicable to the
case of a member of any family who, after his or her appointment to any position in a
Division/Service, contracts marriage with someone in the same Division/Section in which
event the employment or retention therein of both husband and wife may be allowed.
Rule X
Performance of Duties
SECTION 1. DA officials and employees shall avoid impropriety and the appearance
of impropriety in all of their activities. For purposes of this Code, impropriety is defined as
actions or representations that are unbecoming of public officers and/or employees.
SECTION 2. As a subject of constant public scrutiny, DA officials and employees
must conduct themselves in a way that is consistent with the dignity of the Department so
as to be considered as beyond reproach and should do so freely and willingly.
SECTION 3. DA officials and employees in their personal relations with professionals,
who practice regularly in the Departments hearing or conferences, shall avoid situations
that might reasonably give rise to the suspicion or appearance of favoritism or partiality.
SECTION 4. DA officials and employees shall not participate in the determination of a
case in which any member of their immediate family represents a litigant or is associated
in any manner with the case in which conflict of interest may arise.
SECTION 5. DA officials and employees shall not allow the use of their residence or
any place other than the office of DA to receive formal complaints, motions or manifesta-
tions from complainants, respondents, witnesses, or their lawyers or representatives.
SECTION 6. DA Officials and employees, like any other citizen, are entitled to free-
dom of expression, belief, association and assembly, but in exercising such rights, they
shall always conduct themselves in such manner as to preserve the dignity and impartial-
ity of the Department.
SECTION 7. DA Officials and employees shall carry out their responsibilities as pub-
lic servants as courteously as possible.
SECTION 8. DA officials and employees shall not alter, falsify, destroy or mutilate
willfully any official record within their control, or cause or allow any other person to do so.
This provision does not prohibit the expunging, amendment or correction of records or
documents pursuant to an order by the Department or by an authorized official of the
Department.
SECTION 9. n performing official duties, DA officials and employees shall not dis-
criminate or manifest, by word or conduct, bias or prejudice based on race, religion, na-
tional or ethic origin, perceived economic status, gender, or political affiliation.
SECTION 10. DA officials and employees shall not recommend any particular profes-
sionals to complainants or respondents, witnesses, or to anyone officially dealing with the
Department.
SECTION 11. DA officials and employees shall expeditiously enforce rules and imple-
ment orders of the Department within the limits of their authority.
SECTION 12. The concerned DA officials and employees shall make sure that the
Department acknowledge the receipt of a written request, complaint, or motion immedi-
ately, and in no case beyond fifteen (15) days from receipt of the request, complaint, or
motion by the Department, and shall act on it within reasonable period of time.
Rule X
nternal Conflict and Disputes
SECTION 1. A grievance shall be resolved expeditiously at all times at the lowest level
possible in the agency. However, if not settled at the lowest level possible, an aggrieved
party shall present his or her grievance step by step following the hierarchy of authority.
SECTION 2. All agencies shall establish grievance machinery with the end in view of
finding the best way to address grievance between or among government officials and
employees.
SECTION 3. The aggrieved party shall be assured freedom from coercion, discrimina-
tion, harassment, reprisal and biased action on the grievance.
SECTION 4. Grievance proceedings shall not be bound by the Rules of Court or
technicalities of evidence. Even verbal grievance must be acted upon expeditiously. The
services of a legal counsel shall not be allowed.
SECTION 5. A grievance shall be presented verbally or in writing in the first instance
by the aggrieved party to his or her immediate supervisor. The latter shall, within three (3)
working days from the date of presentation, inform verbally the aggrieved party of the
corresponding action. f the party being complained of is the immediate supervisor, the
grievance shall be presented to the next higher supervisor.
SECTION 6. Grievance refers to work related issues giving rise to employee dissatis-
faction. The following cases shall be acted upon through the grievance machinery:
a. Non-implementation of policies, practices and procedures on economic and financial
issues and other terms and conditions of employment fixed by law including salaries,
incentives, working hours, leave benefits, and other related terms and conditions;
b. Non-implementation of policies, practices and procedures which affect employees from
recruitment to promotion, detail, transfer, retirement, termination, lay off, and other related
issues that affect them;
670
c. Physical working condition;
d. nterpersonal relationships and linkages;
e. Protest on appointments; and
f. All other matters giving rise to employee dissatisfaction and discontentment outside of
those cases enumerated in tem No. 6.
SECTION 7. Only permanent officials, whenever applicable, shall be appointed or
elected as members of the grievance committee.
n the appointment or election of the committee members, their integrity, probity, sin-
cerity and credibility shall be considered.
SECTION 8. Agencies with regional offices shall establish separate grievance com-
mittee in their head and regional offices. The composition is as follows:
a. n the central office, the highest official responsible for Human Resource Management
(HRM) shall act as chairperson. n the regional offices, the chairperson shall be the chief or
Head of Administrative Division.
The committee shall elect among themselves the vice-chairman who will act as the
chairman in case the chair is the object of the grievance.
n addition, if any of the members inhibits him because he is the subject of the com-
plaint, a replacement shall be chosen from among their respective level. Such that, elec-
tion of alternate shall be simultaneously done during election thereof.
b. Two (2) Division Chiefs or their equivalent positions chosen from among themselves;
c. Two (2) representatives from the career rank-and-file employees to be designated by the
accredited employees association/union.
d. The Bilis Aksyon Partner (BAP) duly designated.
SECTION 9. The Agency head shall ensure equal opportunity for men and women to
be represented in the grievance committee.
SECTION 10. The agency grievance committee shall develop and implement pro-
active measures that would prevent grievance, such as employee assembly which shall
be conducted at least once every quarter, talakayan counseling, HRD interventions and
other similar activities.
SECTION 11. The DA Personnel Unit, in collaboration with the agency grievance com-
mittee, shall conduct a continuing information drive on grievance machinery among its
officials and employees.
SECTION 12. The grievance committee shall conduct an investigation and hearing
within ten (10) working days from the receipt of the grievance and render a decision within
five (5) working days after the investigation. Provided, however, that where the object of the
grievance is, the grievance committee, the aggrieved party may submit the grievance to
the top management.
SECTION 13. A grievance may be elevated to the Civil Service Commission Regional
Office concerned only upon submission of a Certificate of the Final Action on the Griev-
ance (CFAG) issued by the grievance committee. The CFAG shall contain, among other
things, the following information: history and final action taken by the agency on the griev-
ance.
Rule X
Discipline
SECTION 1. No DA officials and employees shall be removed or suspended except for
a cause as provided by law.
SECTION 2. Any complaint against any DA officials and employees of the Depart-
ment under this Administrative Order shall be initiated by a verified complaint, or, if not
verified is verifiable and supported by the necessary evidence. This section shall also cover
situations wherein members of DA officials and employees of the Department institute an
administrative action against a co-member or co-worker in the Department
2.1 Complaint whether verified or not shall be referred to the Legal Division, for appropriate
administrative action.
SECTION 3. Any violation of this Code shall be subject of the pertinent provisions of
the Civil Service Rules on administrative due process, actions, penalties, sanctions and
remedies.
Rule X
Effectivity
This Administrative Order shall take effect after fifteen (15) days from the date of pub-
lication in a newspaper of general circulation and filing thereof with the National Adminis-
trative Register of the University of the Philippines Law Center.
All existing administrative orders, rules and regulations that are inconsistent with the
provisions of this Order are hereby revoked or modified accordingly.
Secretary
--o0o--
672
DA Administrative Order No. 08, s. 2009
Rules and Regulations Governing the Importation of Agricultural and Fish
and Fishery/Aquatic Products, Fertilizers, Pesticides and Other Agricultural
Chemicals, Veterinary Drugs and Biological Products into the Philippines
WHEREAS, it is the paramount objective of the government in view of trade liberaliza-
tion to adopt and enforce rules and regulations necessary to protect human, animal or
plant life or health, ensuring that the agricultural and fishery products are safe for consum-
ers and to prevent the introduction, establishment and spread of pests or diseases among
animals or plants.
WHEREAS, smuggled agricultural and fish and fishery/aquatic products, fertilizers,
pesticides and other agricultural chemicals, veterinary drugs and biological products pose
serious threat to human, animal or plant life or health.
WHEREAS, the World Trade Organization (WTO) Agreement on the Application of
Sanitary and Phytosanitary (SPS) Measures recognizes that member-countries have the
right to make SPS measures necessary to protect human, animal or plant life or health.
WHEREAS, the Departments various bureaus and agencies have their own set of
rules and regulations on the importation of various products under their coverage.
WHEREAS, there is a need to streamline, harmonize and strengthen these various
rules and regulations on the importation of various products under their coverage.
WHEREAS, there is a need to streamline, harmonize and strengthen these various
rules and regulations to enhance transparency and in order to facilitate trade without com-
promising safety of human, animal or plant life or health or causing damage to the environ-
ment.
WHEREAS, there is a need to establish and maintain an effective and comprehensive
regulatory system to ensure that the required sanitary and phytosanitary measures are
met.
NOW, THEREFORE, , ARTHUR C. YAP, Secretary of the Department of Agriculture,
in accordance with the powers vested in me by law, do hereby issue this Administrative
Order governing the rules and regulations on the importation of agricultural and fish and
fishery/aquatic products, fertilizers, pesticides and other agricultural chemicals, veterinary
drugs and biological products into the Philippines for the information, guidance and com-
pliance of all concerned.
SECTION 1. Definition of Terms -
A. Definitions. As used in this Order, the following words, terms and phrases shall be
construed to mean as follows:
1. Agricultural products - products enumerated in Annex 1 of the WTO Agreement on
Agriculture. A listing of said products is hereto attached as Annex A*
2. Animal by-products - includes hides, horns, skin, bones, hooves, feathers and other
parts or products animals
3. Animal products - fresh meat, meat products gelatin, eggs, egg products, milk, milk
products and honey when intended for human consumption, meat-meal, liver-meal, bone-
meal, blood-meal, feather-meal, pork fat and milk products when intended for use in ani-
mal feeding, animal organs, tissues and organic fluids to be used in the preparation of
pharmaceutical products or of surgical devices, products of animal origin for agricultural or
industrial use, except those intended for food for human consumption, pharmaceutical or
surgical purposes and animal feeding.
4. Animals as potential agricultural crop pests - certain species of animals that are liable
to become crop pests in all life stages such as insects, monkeys, rodents, bats, birds,
snails and other forms of animal life capable of causing injury to agricultural crops.
5. Bill of Lading - document evidencing receipt of goods for shipment issued by person
engaged in business of transporting or forwarding goods and it includes airway bill. t is
receipt for goods, contract for their carriage and is documentary evidence of title to goods.
6. Biomolecules - organic molecules and their synthetic forms occurring in living organ-
isms.
7. Competent authority - bureau or agency, mandated by law, with having responsibility
and competence for ensuring and supervising the implementation of SPS measures or
other standard codes.
8. Condemnation -declaration after due examination and judgement of the products ac-
cording to the approved protocols by a competent authority as being non-compliant to the
SPS measures including the determination of unsafe or unsuitable products for human
consumption and requiring appropriate disposal thereof.
9. Confiscation - taking into custody of products by the competent authority for the proper
disposal for having been the subject of violation of herein rules and regulations or any
pertinent law or rule or regulation.
10. Consignment - quantity of agricultural or fish, fishery/aquatic products, fertilizers, pes-
ticides, or other agricultural chemicals, veterinary drugs or biological products bound for a
customer into the country and conveyed by one means of transportation.
11. DA Border nspector - includes BFAR Fisheries Quarantine Officer, BA Animal Quar-
antine Officer, NMS Meat Control Officer and Meat nspector and BP Plant Quarantine
Officer stationed in every international seaport and airport and inspection area/facility in
the Philippines who perform quarantine and product safety/quality inspection, documenta-
tion and clearance.
12. Feed - a mixture of feed ingredients by specific formula as food for animals.
13. Feed ingredient - any single article, raw material or feeding stuff which enters into the
composition of a feed or a ration, concentrate, supplement or additive.
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14. Fertilizer - includes any substance, solid or liquid or any nutrient element or elements
organic or inorganic singly or in combination with other materials, applied directly to the
soil or to the plant for the purpose of promoting plant growth, increasing crop yield or
improving their quality.
15. Final border inspection - last form of inspection and clearance of agricultural products,
fish and fishery products including agricultural inputs being undertaken by the Department
of Agriculture Border nspectors (DAB) assigned at the final point of border control to
ensure that such imported products/commodities have finally satisfied the DA safety, qual-
ity and environmental requirements before their distribution for domestic use.
16. Fish and fishery/aquatic products - products enumerated in the World Customs Orga-
nization (WCO) Harmonized Tariff System including finfish, mollusks, crustaceans, echi-
noderms, marine mammals and all other species of aquatic flora and fauna and all other
products of aquatic living resources in any form. A listing of said products is hereto at-
tached as Annex B.*
17. Genetically Modified Organisms (GMO) - living organisms, the genetic material of
which have been altered or modified by any of the varieties of modern molecular biology to
make them capable of producing new substances or perform new functions.
18. mportation - act of bringing into the country by sea, land or air foreign products in-
tended for planting, consumption, manufacturing, trading, distribution, domestication, for-
mulation, repacking or by any other purposes.
19. mporter - owner or consignee or clientele of shippers of merchandise or for whose
account or benefit the consignment is made.
20. mport Permit - written certificate issued by the concerned authority stating the volume
of consignment. This includes the minimum access volume (MAV) import certificate.
21. nternational SPS Certificate - a written guarantee issued by a competent authority
from the country of origin, certifying that the products have been handled, processed and
packed in a hygienic manner and do not contain microorganisms, harmful substances that
may pose food safety hazard and endanger human, animal or plant life or health and
includes international health certificate, international phytosanitary certificate and interna-
tional veterinary health certificate.
22. Meat - fresh, chilled or frozen edible carcass including offal derived from food animals.
23. Meat product - any product capable of use as human food which is made wholly or in
part from any meat or other portion of the carcass of any food animals, except products
which contain meat or other portions of such carcasses only in a relatively small propor-
tion or historically have not been considered by consumers as products of the meat indus-
try and which are exempted from definition as a meat product by the Secretary under such
conditions as he may prescribed to assure that the meat or other portions of such car-
casses contained in such product are not adulterated and that such products are not
represented as meat products.
24. Microorganisms - include but not limited to viruses, bacteria, fungi, parasites and other
similar organisms and their products in any form.
25. Must ship out by date - date appearing in the SPS Clearance, within said period, the
actual product/consignment must have left the country of origin.
26. Other agricultural chemicals - chemicals, chemical inputs and chemical compounds
not covered under the definition of fertilizer and pesticide but utilized by the agricultural
sector.
27. Packaging - procedure of protecting the products by a wrapper, container or any other
suitable device.
28. Packing materials - includes leaves, straw, wood, bark and other plant materials used
as wrapping, packing or covering and are capable of harboring plant pests to pack any
imported products.
29. Person - any natural or juridical person such as corporation, partnership, society,
association, firm, company and other legal entity.
30. Pesticide - any substance or product or mixture thereof, including active ingredients,
adjuvants and pesticide formulations intended to control, prevent, destroy, repel or miti-
gate directly or indirectly any pest. The term shall be understood to include insecticide,
fungicide, bactericide, nematocide, herbicide, molluscicide, avicide, rodenticide, plant regu-
lator, defoliant, dessicant and the like.
31. Plants - living plants and parts thereof including seeds, cuttings, rhizomes, bulbs and
corms, grafts, leaves, roots, scions and other plant parts that are capable of propagation.
32. Plant pest - any form of plant or animal life or any pathogenic agent injurious or poten-
tially injurious to plants or plant products.
33. Plant products - products derived from plants either in their natural state or in manu-
factured or processed form and are capable of harboring plant pests.
34. Preliminary border inspection - initial inspection and examination of agricultural prod-
ucts, fish, and fishery products including agricultural inputs being undertaken by the DA
Border nspectors (DAB) assigned at the ports of entry to ensure that such imported
products/commodities have satisfied the DA quarantine and inspection requirements prior
to their release to the final point of border control.
35. Sanitary and Phytosanitary Measures - measures relating to food safety and quality,
and animal and plant safety and quality standards, rules and regulations including docu-
mentary and certification requirements in the production, handling, transport, importation,
exportation and marketing and distribution of all agricultural and fishery products as well
as the DA quarantine and product safety/quality inspection and clearance.
36. Secretary - means the Secretary of the Department of Agriculture
37. Smuggling - importation of prohibited commodities (outright smuggling) as well as the
misdeclaration/misclassification/undervaluation of imported goods/products in violation of
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the Tariff and Customs Code of the Philippines and related laws. t also refers to the illegal
entry of imported agricultural or fish, fishery/aquatic products, fertilizers, pesticides, or
other agricultural chemicals, veterinary drugs or biological products into Philippine territo-
ries including special economic and free-port zones without the required SPS clearance/
import permit and/or without undergoing the mandatory DA border control measures which
include quarantine and product safety/quality inspection and clearance.
38. SPS Clearance - document issued prior to importation by the concerned bureau or
agency to ensure that the products being imported meet standards to protect human,
animal or plant life or health, ensuring that the agricultural and fishery products are safe for
consumers and to prevent the spread of pests or diseases among animals or plants. Such
documents also prescribes the conditions to be complied with by the importer for the
maintenance of quality and suitability of the product for the intended purpose.
39. Veterinary biological products - viruses, bacteria, live micro-organisms, killed micro-
organisms, component or products of micro-organism, anti-sera sera, antigens, antibod-
ies, toxins, test kits, or analogous products and other homologous substances whether of
natural or synthetic origin, intended for use in the diagnosis, treatment and prophylaxis of
diseases of animals or for the identification of the causative organisms of a disease of
animals and for research purposes.
40. Veterinary drugs and products - any substance, including biological products, applied
or administered to food producing, companion, aquatic, laboratory and exotic animals,
whether used for therapeutic, prophylactic or diagnostic purposes or for modification of
physiological functions or behaviors
B. Acronyms used in this Order shall refer to:
1. BA - Bureau of Animal ndustry
2. BFAR - Bureau of Fisheries and Aquatic Resources
3. BOC - Bureau of Customs
4. BP - Bureau of Plant ndustry
5. DA - Department of Agriculture
6. DAB - DA Border nspector
7. FDA - Fiber ndustry Development Authority
8. FPA - Fertilizer and Pesticide Authority
9. GMO - Genetically Modified Organisms
10. NFA - National Food Authority
11. NMS - National Meat nspection Service
12. NTA - National Tobacco Administration
13. PCA - Philippine Coconut Authority
14. RFU - Regional Field Unit
15. SPS - Sanitary and Phytosanitary Measures
16. SRA - Sugar Regulatory Administration
SECTION II. Coverage
Scope - This Order covers the importation of:
A. Plant, plant products and other related materials capable of harboring plant pests to
include:
1. living plants
2. nursery stocks, including vegetative parts thereof used as propagating
materials.
3. seeds and nuts for planting
4. fresh fruits, vegetables and other plant products which have been declared
as prohibited/restricted import under special quarantine orders because of being
known host of dangerous plant pest or originating from restricted areas.
5. pure culture of fungi, bacteria, virus, nematodes and other phytopathogenic
materials.
6. mushroom cultures including spawn
7. algae cultures, rhizobial cultures as legume inoculants
8. soil and plant materials for isolation or organism
9. other plant cultures
10. wood packaging materials and other packing materials capable of harboring
plant pests
11. frozen/chilled fruits and vegetables including diced vegetables and processed
fruits.
12. grains and cereals
13. other plant products
B. Animals, animal products and by-products
C. Live/fresh/chilled/frozen fish and fishery and aquatic products including microorgan-
isms and biomolecules.
D. Fertilizers, pesticides and other agricultural chemicals
E. Feeds, feed ingredients, and other feed products
F. Meat and meat products
G. Pet Foods
H. Processed agriculture and fishery products not elsewhere specified
J. Veterinary biological products
K. Veterinary drugs and products
SECTION III. Application and Issuance for SPS Clearance -
A. Any person who desires to import any of the products enumerated in Section except
Sec. .A. 10 hereof must secure an Application for SPS Clearance (Annex D* hereof)
from any of the following:
1. ssuing bureau or agency
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a. BA - for animals (including small animals that are plant pests except
insects), animal feeds and feed ingredients, animal products and by-products
including meat and meat products, eggs, milk, dairy, veterinary drugs and
biological products.
b. BFAR - for fish, fishery/aquatic products as enumerated in Section .A.16,
fish intended for feed and products used in fish propagation.
c. BP - for plants and plant products as enumerated in Section .A.
d. FPA - for fertilizers, pesticides and other agricultural chemicals.
2. Concerned bureau or agencys regional or provincial offices
Application forms may also be downloaded from the Department of Agricultures
website.
Securing the application form and filing may be done at the bureau or agencys
regional or provincial offices but the issuance of the SPS Clearance shall be made at the
central office of the concerned bureau or agency.
B. Said application form must be duly accomplished along with the payment of the non-
refundable service fee and submitted to the concerned bureau or agency with the following
documents:
1. Pro-forma invoice
2. Notarized affidavit of undertaking as required by the concerned bureau or
agency
3. Official Receipt
4. Other commodity specific requirements, including permits/clearances from
other concerned agencies
C. Upon receipt of the duly accomplished application form together with the other require-
ments, the concerned bureau or agency shall determine if it is sufficient in form and sub-
stance and inform the applicant accordingly. f the application is incomplete or not in the
proper format, the applicant shall be informed accordingly and the application form and
other requirements returned immediately.
D. The application found sufficient in form and substance shall be officially accepted and
recorded by the central office of the concerned bureau or agency and shall be processed
within five (5) working days. The application shall only be approved and issued a SPS
Clearance by the concerned bureau or agency upon determination of the following:
1. The exporting company or country/zone is registered/accredited by the
concerned DA bureau or agency and is in good standing
2. Latest advisory of the relevant international bodies (OE, PPC, Codex and
other DA recognized bodies) and/or the exporting government on the absence
of relevant disease/pest outbreaks, contaminations and other SPS-related risks
3. The applicant importer is licensed by the concerned DA bureau or agency
and is in good standing, except when the concerned bureau or agency
determines that importer licensing is not required.
4. The product is registered with and/or included in the list of allowable
commodities of the concerned DA bureau or agency, if applicable
5. The applicable risk management protocols that are to be prescribed including
certifications of exporting governments, if applicable; and
6. Other information pertinent to SPS concerns.
E. Upon approval of the application and payment of a SPS Clearance fee and such other
charges for administrative and technical services rendered in connection with the importa-
tion, a SPS Clearance (Annex E* hereof) shall be issued as follows except for FPA
which shall follow its existing procedures:
1. Four (4) copies for consignments by sea. The original shall be retained by
the concerned bureau or agency for release to the applicant only upon
presentation of photocopies of the (a) consignments bill of lading; (b) invoice
and (c) international SPS certificate to the same DA bureau or agency which
shall be presented to the DA Border nspector for cargo inspection and clearance.
The other three copies shall be furnished to (1) applicant to execute importation;
(2) transmitted to the Collector of Customs at the port of entry and (3) retained
by the concerned bureau or agency to be filed with the application.
2. Four (4) copies for consignments by air. The original shall be issued to the
applicant for presentation to the DA Border nspector at the port of entry. One
(1) copy shall be transmitted to the Collector of Customs at the port of entry
and two (2) copies shall be retained by the concerned bureau or agency with
one (1) copy being filed with the application.
F. Close coordination/consultation shall be observed in processing the issuance of SPS
clearances for products involving more than one DA bureau/agency, as follows:
1. BP with BA (unprocessed feeds and feed ingredients of plant origin such as
grains), FDA (for fibers including coir), PCA (for coconuts, coconut products
and by-products, including processed coconut coir, and oil palm and its by-
products), NTA (for tobacco), SRA (for sugar beet and sugar cane), NFA (for
palay and rice), and BFAR (for seaweeds and aquatic plants)
2. BA with NMS (for meat and meat products), BP (for small animals that are
plant pests) and BFAR [for brine shrimp (artemia cyst)]
3. FPA with BFAR (for agro chemicals for fishery and aquatic use) and BP and
BA (for other agricultural chemicals)
G. Must ship out by date - The SPS Clearance shall indicate the period for which the
actual product/consignment should have left the country of origin which period is reckoned
from the date of issuance of the SPS Clearance as follows:
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1. 20 days for fresh and chilled fruits and vegetables;
2. 30 days for eggs, milk and dairy products, animal feeds and feed ingredients
and other products of animal origin i.e. embryos and semen, frozen fruits and
vegetables.
3. 60 days for live animals, fish and fishery/aquatic products, meat and meat
products, fertilizers, pesticides and other agricultural chemicals.
4. 90 days for veterinary biological and drug products
5. 60 days for all other products not specified immediately above.
For clarity and ease of inspection and clearance at the port, the Date of ssuance
and Must ship out by date must be both indicated by the issuing bureau/agency on the
SPS Clearance.
The SPS Clearance shall be valid for a period specified above unless sooner revoked
for any of the reasons set forth in this Section K. An unused SPS clearance shall be
considered automatically cancelled after its must ship out by date.
A particular consignment of a product shall be loaded at the port of the country of
origin on or before the last day of the Must Ship Out by Date of the corresponding SPS
Clearance. Only such a consignment that is shipped not later than this date shall remain
having a valid SPS Clearance once it arrives at any of the Philippine international ports
otherwise it shall be subjected to confiscation procedures as provided for under Section V
hereof.
n no case shall the date of loading at the port of the country of origin as specified in
the bill of lading be earlier than the date of issuance of the SPS Clearance otherwise it
shall be subjected to confiscation procedures as provided for under Section V hereof.
H. However, the fish, fishery/aquatic products must arrive within thirty (30) days from date
of issuance of the SPS Clearance in case of consignment by air and within sixty (60) days
in case of consignment by sea.
. The SPS Clearance shall be good for one shipment and is not transferable to other
persons.
J. f there shall be a required efficacy/expiration date/product shelf life/best before date for
the product, the same shall be indicated in the SPS Clearance.
K. The SPS Clearance may be suspended or revoked at any time for any of the following
grounds;
1. Providing false information in the application form or in any of the
accompanying documents to the application.
2. Misdeclaration of consignment
3. Violation of relevant SPS and biosafety rules and regulations or any conditions
imposed in the SPS Clearance.
4. Refusal to allow the inspection of the physical containment facility or
intermediate destination of the product.
5. Legal authority to commercially distribute the product in the country of origin
has been suspended or revoked; or
6. New technical information becomes available to the concerned bureau or
agency indicating that the product, if allowed for its intended use will result to
risks to human, animal or plant health or life and the environment.
L. Modification, revocation or cancellation of the SPS Clearance shall be without prejudice
to being further subjected to penalties.
SECTION IV. Appeal - Decision of the concerned bureau or agency head may be
appealed to the DA Secretary within ten (10) days from notice of the action.
SECTION V. Fees and Charges - The current amount of fees and charges being
imposed and collected by the concerned bureau or agency shall continue to be observed.
SECTION VI. Inspection at the Port of Entry -
A. Forty-eight (48) hours before the arrival of a consignment at the preliminary border
inspection site (port of entry), the importer or his authorized representative shall notify the
concerned DA Border nspector by completely filling out Section 1 - Application for mport
nspection as contained in DA Border nspectors Report Form (Annex F* hereof) and
submitting the same. After the products have been inspected and before removing them
from the place of landing, the importer shall also indicate in the said form, the type and
route of transport, the complete name and address of the ultimate consignee and the
exact location of the final place of destination.
B. The products and if included, their packing materials shall not be removed or transferred
from the place of landing nor released to the importer without the written approval of the DA
Border nspector. Provided, that official covering document issued by the BOC allowing
transfer of such cargoes to bonded warehouses, container yards and other places outside
the customs zone shall first be coursed to the DA Border nspector for notation and/or
approval before actual transfer commences.
C. A consignment may be in bulk or consist of a number of packages, crates or cartons
containing either uniform or various unit sizes of the product containers, arriving all at one
time in one port of entry or in several portions or batches, all arriving in one port provided
the whole consignment is covered only by one (1) bill of lading/airway bill.
D. Upon arrival, the consignment shall be subjected to the following DA border inspection
requirements;
1. Documentation - Original SPS Clearance, original nternational SPS Certificate
from competent authority of the country of origin, airway bill/bill of lading and
invoice and if applicable, import permit must be presented and surrendered to
the DA Border nspector. n the absence of an nternational SPS Certificate, the
consignment shall be kept in a storage facility for a period not exceeding ten
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(10) days to allow the importer to submit said document, provided the date of
the SPS certificate is not earlier than the date of the SPS Clearance. Failure to
comply with the same within the specified period, the consignment shall be
returned to the country of origin or disposed of with the expenses involving
storage, return to origin or disposition of the consignment being borne by the
importer.
2. Preliminary border inspection - The DA Border nspector, together with the
BOC examiner at the port shall conduct routine inspection of the consignment.
Depending on the result of the routine inspection which essentially involves
sensory-based examination, the DA Border nspector may perform rigid
inspection of the consignment which covers chemical and microbial examination.
Preliminary border inspection shall be conducted by the DA Border nspector in
the presence of the importer or his authorized representative. Thereafter the DA
Border nspector shall place a stamp on the BOC entry permit to indicate
whether the consignment is cleared for final release, on hold, for confiscation
or transfer to an accredited establishment for final border inspection and
clearance.
3. Final border inspection - A final border inspection shall be conducted and/or
consignment integrity is initially checked at the port and a detailed examination,
i.e. sampling and laboratory analysis is further required to ensure compliance
with health and safety requirements.
E. n case inspection of some products/commodities or consignment may involve two or
more bureaus or agencies, the concerned bureaus or agencies shall coordinate/consult
with each other in clearing said products/commodities or consignment.
SECTION VII. Confiscation and Disposal of Refused Entry Products/Commodities -
A. f it appears from the examination of subject product/commodity that (1) the product /
commodity has been manufactured, processed or packed under unsanitary conditions or
(2) product/commodity is forbidden or restricted from sale in the country in which it was
produced or from which it was exported or (3) the product/commodity is adulterated, con-
taminated, dangerous, noxious, misbranded, misdeclared, unregistered or in violation of
the terms and conditions embodied in the SPS Clearance; this Order and sanitary and/or
phytosanitary measures; 4) arriving without the required SPS Clearance and nternational
SPS Certificate; 5) using a fake SPS Clearance then the DA Border nspector shall so
inform the BOC examiner and such product/commodity shall be seized, confiscated or
refused admission, unless such product/commodity is exported under regulations pre-
scribed by the Bureau of Customs within ninety (90) days of the date of notice of such
refusal or within such time as may be permitted pursuant to such regulations. f the prod-
uct/commodity arrives at a port of entry other than Metro Manila, the collection of such
samples shall be the responsibility of the regional office having jurisdiction over the port of
entry.
B. Any product or commodity, at the preliminary border inspection, found to be deficient,
damaged, adulterated, injurious or in violation of this order, shall be confiscated after the
DA Border nspector informs the BOC district collector of his decision for the latters appro-
priate action. The same procedure shall be followed should the product/commodity be in
transit. n case of final border inspection, the DA Border nspector shall be the one to take
appropriate action after his findings and decision to confiscate the consignment. n all
cases, the impounding and disposition shall be at the expense of the importer.
The Secretary or his duly authorized representative may formally investigate the
case and conduct a summary hearing on the proper disposition of the product/commodity.
f the disposition shall have been finally decided, the same shall be at the expense of the
importer.
C. A Notice of Confiscation shall state the reason/s for the confiscation, a copy of said
Notice is hereto attached as Annex G*. Three (3) copies of the same shall be issued as
follows: one (1) copy shall be given to the BOC district collector; one (1) copy to the
importer and one (1) copy shall be retained by the DA Border nspector. Further, the notice
shall indicate the date of condemnation and disposal of the products or commodities.
D. All products or commodities imported or brought into the Philippines unlawfully shall be
disposed of in any of the following manners:
1. Confiscated and destroyed
2. Returned to the country of origin
3. Shipped to a third country
n no case shall a confiscated consignment be auctioned, redeemed, donated or
sold by any government bureau or agency.
E. All expenses (including travel, per diem or subsistence, overtime pay and premium pay)
of officers or employees of the Philippine government in connection with the destruction or
disposition of the seized product/commodity and all expenses in connection with the
storage, cargo or labor with respect to any product/commodity refused admission shall be
paid by the importer.
F. The impounding or seizure shall not be a bar to subsequent prosecution in the court of
the person/s concerned in accordance with law.
SECTION VIII. Penalties - The existing laws and rules and regulations of the con-
cerned bureau or agency prescribing the violations and corresponding penalties shall be
applied and imposed.
SECTION IX. Transitory Provision - All in-transit consignments of the covered prod-
ucts/commodities which are shipped out from the country of origin prior to the effectivity of
this Order shall be subjected to the provisions of the concerned bureau or agencys rules
and regulations.
SECTION X. Non-exclusivity - All existing rules and regulations, policies, procedures
and standards not inconsistent with this Order shall continue to be in full force and effect.
SECTION XI. Repealing Clause - All existing administrative orders, rules and regula-
tions or parts thereof, which are inconsistent with the provisions of this Order are hereby
repealed or modified accordingly.
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SECTION XII. Separability Clause - f any portion of this Order is declared unconstitu-
tional or invalid, the other portions thereof which are not affected thereby shall continue to
be in full force and effect.
SECTION XIII. Effectivity - This Administrative Order shall take effect fifteen (15) days
after publication in two (2) newspapers of general circulation and its filing with the National
Administrative Register, U.P. Law Center.
Adopted: 7 May 2009
Secretary
--o0o--
Guidelines on the Agricultural Competitiveness
Enhancement Fund (ACEF) Scholarship Program
WHEREAS, Congress enacted into law Republic Act No. 9496 (RA No. 9496)
otherwise known as An Act to Extend the Utilization Period of the Agricultural
Competitiveness Enhancement Fund (ACEF), amending Republic Act No. 8178 entitled
An Act Replacing Quantitative mport Restrictions on Agricultural Products, Except Rice,
with Tariffs, Creating the ACEF, and for Other Purposes.
WHEREAS, Section 8. of RA 9496 states that ten percent (10%) of the Fund shall
be set aside and earmarked for funding of a comprehensive scholarship program for
agriculture, forestry, fisheries, and veterinary medicine education.
WHEREAS, there is a need for the issuance of a separate set of guidelines for this
purpose to govern the funding of a comprehensive scholarship program.
NOW, THEREFORE, this administrative order containing the rules and regulations,
that will govern the disposition and utilization of ACEF for Scholarship Program is hereby
issued.
SECTION I. General Framework -
A. DECLARATON OF POLCY
Consistent with the provision of DA Administrative Order No. 19, series of 2009, this
issuance maintains the thrust of being supportive of the goal of the national economy for a
more equitable distribution of opportunities, income and wealth; a sustained increase in
the amount of goods and services produced by the nation for the benefit of the people; and
an expanding productivity as the key in raising the quality of life for all especially the
underprivileged.
B. CLENTELE
ncoming college, post-secondary and returning students in participating State Univer-
sities and Colleges (SUCs) and Technical Education and Skills Development Authority
(TESDA)-managed or supervised education and training institutions offering agriculture,
fishery and forestry and other courses useful to agriculture and fisheries develop-
ment.
C. SOURCE OF FUND/FUND ALLOCATON
Ten percent (10%) of the total available funds in Special Fund 183 upon effectivity of
this AO.
D. MPLEMENTATON SCHEME
Regional Allocation or By Demand/Number of nterested Scholars per Region. The
concerned SUCs/nstitutions will enter into a Memorandum of Agreement with the DA-
ACEF ExeCom. Funds will be downloaded to the SUCs/nstitutions upon effectivity of
MOA and availability of funds as released by the Department of Budget and
Management subject to accounting and audit rules and regulations.
E. PARTCPATNG SCHOOL
Any SUC and TESDA-managed and supervised education and training institutions
offering degree, diploma and certificate courses in agriculture, fishery and forestry and
other courses useful to agriculture and fisheries development.
F. AREAS OF SPECALZATON
1. Bachelor of Science in Agriculture;
2. Bachelor of Science in Agricultural Chemistry;
3. Bachelor of Science in Food Technology under the College of Agriculture
4. Bachelor of Science in Agricultural Economics;
5. Bachelor of Science in Agribusiness Management;
6. Bachelor of Science in Agricultural Engineering;
7. Doctor of Veterinary Medicine;
8. Bachelor of Science in Fisheries;
9. Bachelor of Science in Forestry;
10. Other Agriculture related degree courses;
11. Diploma and certificate courses in agriculture, fishery and forestry and
other courses useful to agriculture and fisheries development; and
12. Biotech and/or other cutting edge technology courses.
G. ELGBLTY REQUREMENTS
1. The student must be a Filipino citizen;
2. ncoming college, post secondary, returning students, and other qualified
and interested applicant;
686
3. He/She intends to enroll at any SUCs and other TESDA-managed and
supervised post-secondary education and training institutions;
4. He/She must be in need of financial assistance;
5. He/She must be physically and mentally fit to undergo education;
6. He/She must be of good moral character; and
7. He/She must not be a recipient of any government scholarship grant of
similar nature.
H. DOCUMENTARY REQUREMENTS
1. Duly accomplished application form;
2. One (1) copy of passport size picture with signature over printed name at the
back;
3. f applicable, income tax returns (including attached BR Form W-2) of parents/
legal guardian. For those who are tax exempt, submit a certificate of exemption
from BR stating the annual gross income. f parents/legal guardian/spouse is
retired submit retirement and/or pension voucher. Certificate of Indigence from
the Department of Social Welfare and Development (DSWD) in lieu of the
ITR.
4. Barangay clearance;
5. Form 137 from 1st year up to 4th year 2nd quarter;
6. Certificate of good moral character as signed by the school principal; and
7. Certificate of good health from a government physician.
SECTION II. Procedures -
A. APPLCATON PROCESS
The selection, approval and endorsement of scholars will be performed by the partner
SUCs.
B. ASSSTANCE NCLUDED N THE PROGRAM
1. School Fees - full amount of tuition and other school fees;
2. Student Stipend - maximum of P4,000.00 per month; and
3. P3,000 for book allowance and other course requirements of diploma and certificate
courses in TESDA-managed and supervised institutions.
C. OBLGATONS OF THE SCHOLARSHP GRANTEE
The grantee must observe the following obligations:
1. Must maintain a GPA of 2.50 every semester;
2. Must not have any conditional or failing grades;
3. Must not drop any subjects;
4. Must take the full semestral load;
5. Must not be subjected to disciplinary action carrying a penalty of one month suspen-
sion or more;
6. Must not be convicted of any administrative and criminal charges.
7. Must participate in agricultural and fishery community service such as service to
farm, livestock and fishery farmers under the SUC agriculture and fishery extension pro-
gram either as part of field research or an Adopt-A-Farm, Adopt-A-Fishfarm, Adopt-A-
Forest Program of the SUC Extension Office; and
8. Must enter into a contract of agreement with the government to render service (for
every year of full scholarship the scholar shall serve two years in the government).
D. MODE OF PAYMENT
The DA-ACEF ExeCom shall directly pay the school (for the tuition and other school
fees) upon receipt of the billing statements, deductible from the total fund transferred to the
SUCs/nstitutions.
The other financial assistance (monthly stipend and book or technical/vocational
course requirement allowance) to grantees shall be given by ACEF on a monthly basis
through payroll or ATM whichever is applicable.
For the thesis grant, it will be given to the grantee upon enrolment of the thesis.
For the non-thesis grant, it will be given upon the start of the on the job training.
E. MPLEMENTATON SCHEDULE FOR THE SCHOLARSHP
1. nformation dissemination
2. Selection of Scholars thru the SUCs.
3. Monitoring and evaluation of scholars performance.
SECTION III. Effectivity - This Administrative Order shall take effect immediately.
Secretary
DEPARTMENT OF ENERGY
Department Circular No. DC 2009-04-0004
Reiterating a Transparent and Competitive System of Awarding
Service/Operating Contracts for Coal, Geothermal and Petroleum
Prospective Areas Repealing for this Purpose Department Circular
No. DC 2006-12-0014
WHEREAS, Section 1 of Presidential Decree No. 1442, otherwise known as An Act
to Promote the Exploration and Development of Geothermal Resources, Section 4 of
Presidential Decree No. 972, as amended, otherwise known as The Coal Development
Act of 1976, and Section 4 of Presidential Decree No. 87, as amended, otherwise known
688
as the Oil Exploration and Development Act of 1972, allow the Philippine Government to
promote and undertake the exploration, development and production of the countrys indig-
enous coal, geothermal and petroleum resources through service/operating contracts with
contractors;
WHEREAS, Republic Act No. 7638, as amended, otherwise known as The Depart-
ment of Energy (DOE) Act of 1992, mandates the DOE to prepare, integrate, coordinate,
supervise and control all plans, programs, projects and activities of the Government rela-
tive to energy exploration, development, utilization, distribution and conservation;
WHEREAS, on 22 December 2006, the DOE issued Department Circular No. DC2006-
12-0014 providing for a transparent and competitive system for investment and public con-
tracting rounds for awarding coal, geothermal and petroleum service/operating contracts;
WHEREAS, the DOE desires to adopt the most effective strategy for promoting and
attracting local and foreign investment to further increase the exploration, development
and production of prospective coal, geothermal and petroleum areas;
WHEREAS, the DOE reiterates and acknowledges the need to continue adopting a
transparent and competitive system for awarding service/operating contracts for explora-
tion, development and production of the countrys coal, geothermal and petroleum re-
sources;
WHEREAS, consistent with national interest, the DOE has, after consultation with
stakeholders, resolved to enhance government participation, through the government cor-
porate sector, in the exploration, development and production of indigenous oil and gas
resources through the grant of option to PNOC to participate in petroleum service con-
tracts;
NOW, THEREFORE, in consideration of the aforementioned premises, the following
procedures shall govern the transparent and competitive system of awarding service/oper-
ating contracts for coal, geothermal and petroleum exploration, development and produc-
tion.
1. Contracting Rounds
1.1 The Energy Resource Development Bureau (ERDB) shall determine
prospective coal, or geothermal, or petroleum areas found in the Philippine
territory; and its maritime zones including the continental shelf for inclusion in
the competitive public contracting rounds. The DOE Secretary, based on reports
submitted by ERDB, and if he deems fit, shall declare such areas open for
competitive public contracting round. The DOE shall not accept any application
or proposals for exploration, development and production service/operating
contract except during the competitive public contracting rounds. No applications
for small-scale mining permit for coal operations shall likewise be entertained
in the offered areas until after service/operating contracts have been awarded.
1.2 The ERDB shall prepare the contracting round documents with a description
of available data and the prospect of geothermal/coal/petroleum resources in
each area. The DOE Contract Negotiating Panel (DOE-CNP per Department
Order No. 2003-05-005) shall then disseminate information of the contracting
round which shall include, among others, the following:
a. Location Map and Technical Descriptions (TDs) of the area/s being offered
during the contracting round;
b. Schedule of activities for the contracting round; and
c. Such other information as the DOE-CNP may deem appropriate.
1.3 nterested parties for the contracting rounds on petroleum may access
data available at DOE after payment of a Data Viewing Fee of Five Hundred
United States Dollars (US$500.00) for a two (2) day-day maximum visit. f the
interested party decides to purchase the DOE data, the Data Viewing Fee will
be credited to the total price of the purchased data.
1.4 nterested parties for the contracting rounds on coal, geothermal and
petroleum areas shall submit complete set of documents for evaluation by the
DOE-CNP. The DOE-CNP may require submission of additional information/
documents, as may be necessary, during evaluation of the proposals for
clarification purposes only. A non-refundable application fee of ONE HUNDRED
THOUSAND PESOS (P100,000.00) per area for petroleum and geothermal,
and FFTY THOUSAND PESOS (P50,000.00) per area for coal shall be paid by
the proponent upon submission of the proposal which shall include the following
documents:
a. Work Program
a.1 Proposed oil/gas service contract, geothermal service contract or
coal operating contract based on existing DOE Model Contracts;
a.2 Proposed work program (discussion on the application of the different
exploration strategies and methodologies to be employed in delineating energy
resources at depth with subsequent manpower complement should be in detailed
narrative format and the Schedule of Activities in Gantt Chart) and minimum
expenditure on annual/sub-phase basis for each proposed activity with respect
to the area or areas specified in the proposal; and
a.3 Narrative presentation of data and information (such as geology,
stratigraphy, geochemistry, geophysics, water or coal quality, resource estimate,
resource indicators, etc.) suggesting presence of energy resources at depth.
b. Financial Proposal and Documentation
b.1 Audited financial statement and annual reports for the last three (3)
years;
b.2 Duly filled-out information sheet;
b.3 Resume/profile of the prospective contractor, its incorporators,
stockholders or officers;
690
b.4 Particulars of the kind of financial resources available to the prospective
contractor including capital, credit facilities and guarantees so available; and
b.5 Certified copy of latest income business tax returns filed with the
Bureau of nternal Revenue, and duly validated with the tax payment made
thereon, if applicable.
c. Legal Documentation
c.1 Certified copy of Articles of ncorporation;
c.2 Certified copy of the by-laws of the prospective contractor;
c.3 SEC Registration Certificate; and
c.4 Certified copy of latest general information sheet submitted to the
Securities and Exchange Commission.
d. Technical Proposal and Documentation
d.1 Particulars of the technical and industrial qualifications, eligibilities
and work related experiences of the interested party and its employees;
d.2 Particulars of the technical and industrial resources available to the
interested party for the exploration, development and production of geothermal,
coal and petroleum resources;
d.3 Particulars on the experiences, achievements and tract records of
the interested party and its employees related to technical and industrial
undertakings; and
d.4 Particulars on organizational and management structures relative to
Administration, Financial and Technical aspect of the interested party.
For financial, legal and technical documentation, if the interested party is a
joint venture, all entities forming part of the joint venture shall comply with the
above requirements. n addition, the interested party shall submit a copy of the
joint venture agreement. Furthermore, any interested party, acting singly or
forming part of a joint venture, that is organized in a foreign country shall submit
documents equivalent to the above, issued by the appropriate governing body
and duly authenticated by the Philippine consulate in the country where it is
registered or where it operates.
1.5 The DOE CNP shall open the submitted proposals relative to the contracting
round during the first working day after the announced deadline for submission
of proposals. No proposals or contracting documents shall be accepted on the
designated day of the opening of proposals.
1.6 The DOE CNP shall then conduct evaluation of the submitted proposals
based on the following criteria:
a. Work program - 30%
b. Financial qualification - 30%
c. Technical qualification - 30%
d. Legal qualification - 10%
1.7 The DOE CNP, for sufficient and valid cause, may at any given time reject
any or all proposals submitted.
The DOE shall discuss with the highest-ranked proponent to finalize the contract
details. No material deviation from the DOE model contract shall be allowed at
any given time. The winning proponent shall be charged a processing fee of
Php1.20/hectare for geothermal, Php 0.48/hectare for petroleum and
Php30,000.00 per block for coal based on DOEs Schedule of Fees and Charges
in compliance with EO 197. The DOE CNP shall then make a recommendation
to the DOE Secretary for any award of service/ operating contracts based on
the discussions. The DOE shall formally inform all the proponents of the results
of the evaluation.
2. Contract Areas - The definition and delineation of prospective coal,
geothermal and petroleum contract areas shall be in accordance with the
provisions of applicable government laws, rules and existing procedures such
as the National ntegrated Protected Areas System (NPAS) Law and the
ndigenous Peoples Right Act (PRA), among others.
3. Frontier Areas - Privately identified coal, geothermal and petroleum frontier
areas with no available technical data may be allowed to be offered through
negotiated contracts.
4. Separability Clause - f for any reason, any section or provisions of this
Circular is declared unconstitutional or invalid, such parts not affected shall
remain in full force and effect.
5. Repealing Clause - The provisions of Department Circular No. DC2006-12-
0014 is hereby repealed. All other department circulars, which are inconsistent
with the provisions of this Circular are hereby repealed, amended or modified
accordingly.
6. Effectivity - This Circular shall take into effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation and shall remain
in effect until otherwise revoked.
(SGD.) ANGELO T. REYES
Secretary
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692
Department Circular No. DC2009-05-0006
Visayas Supply Augmentation Auction (VSAA) Rules
WHEREAS, Section 2 of Republic Act No. 9136, otherwise known as the Electric
Power ndustry Reform Act of 2001 (EPRA), declared as a policy of the State to ensure
the quality, reliability, security and affordability of the supply of electric power, protect the
public interest as it is affected by the rates and services of electric utilities and other
providers of electric power, and encourage the efficient use of energy and other modalities
of demand side management;
WHEREAS, Republic Act No. 7638, or the Department of Energy Act of 1992, as
amended by Section 37 of the EPRA, authorized DOE to exercise supervision and control
over all government activities relative to energy projects and to formulate rules and regula-
tions necessary to implement the objectives of these laws;
WHEREAS, Section 37 (i) of EPRA, specifically mandates the DOE to develop
policies and procedures and, as appropriate, promote a system of energy development
incentives to enable and encourage energy participants to provide adequate capacity to
meet the demand including, among others, the reserve requirements;
WHEREAS, the availability and adequacy of electricity is necessary for the continu-
ous operation of vital industries and thus it is incumbent upon the government to take the
necessary measures to ensure that there will be no power interruptions in any part of the
country;
WHEREAS, the current power situation in the Visayas Grid, as certified by the Sys-
tem Operator (SO) or the National Grid Corporation of the Philippines (NGCP), requires for
additional power capacities to meet the increasing power needs and to maintain the man-
datory energy reserve of the region;
WHEREAS, the new generating plants in the Visayas Grid as reported by the private
proponents to the DOE are expected to come on stream by 2010 and 2011;
WHEREAS, the DOE conducted the Visayas Stakeholders Meetings on January 15-
16, 2009 where it presented and discussed the Visayas Supply Augmentation Auction
Program (VSAAP);
WHEREAS, the DOE issued Circular No. DC2009-01-0001 on January 16, 2009, which
directed DOE-attached agencies (PSALM, NPC, TransCo, and NEA), all power industry
participants, consumers and various stakeholders to adopt and implement contingency
measures to ensure adequate and reliable electric power supply in the Visayas grid par-
ticularly in the islands of Cebu, Negros, Panay and Bohol;
WHEREAS, under the said DOE Circular, the Philippine Electricity Market Corpora-
tion (PEMC), in coordination with the NGCP as the system operator, was directed to draft
the rules, guidelines and procedures for the implementation of the VSAAP, in consultation
with the electric power industry participants;
WHEREAS, on February 4-6, 2009, the VSAAP was officially endorsed by the Visayas
electric power industry participants during a series of public consultations held in Cebu,
Negros and Panay islands;
WHEREAS, the DOE posted the draft VSAA Rules in its website from March 06, 2009
to April 02, 2009 and thereafter conducted a public consultation on the same;
WHEREAS, the DOE conducted the Visayas public consultation in Cebu City on April
03, 2009 wherein the industry participants gave their full agreement to the VSAA Rules as
manifested in the Joint Endorsement signed by the Visayas electric power industry par-
ticipants;
NOW, THEREFORE, pursuant to its mandate under the EPRA, the DOE hereby
issues adopts and promulgates the attached VSAA Rules* which shall take effect fifteen
(15) days following its publication in two (2) newspapers of general circulation.
Adopted: 5 May 2009
(SGD.) ANGELO T. REYES
Secretary
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Department Circular No. DC2009-05-0008
Rules and Regulations Implementing Republic Act No. 9513
DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES
Amendment of Memorandum Circular 2009-03 Supplemental Guidelines
and Procedures in the Implementation of the Upland Development Program
694
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Department Administrative Order No. 2009-05
Prescribing Guidelines for the Systematic Disposition of Alienable and
Disposable Residential Lands Through Miscellaneous Sales Application
Under Republic Act No. 730.
Pursuant to Executive Order No. 192 series of 1987 granting the DENR the au-
thority to formulate policies and regulations for the effective management, conservation
and development of the countrys natural resources and in further implementation of Re-
public Act 730 in relation to Commonwealth Act 141 as amended, which reposes on the
Department of Environment and Natural Resources the primary responsibility to dispose
lands of the public domain primarily used for residential purposes through a private sale
under certain conditions, the following regulations is hereby prescribed:
SECTION 1. OBJECTIVES This Administrative Order is issued to achieve the
following objectives:
1. To simplify systematic disposition of public alienable and disposable residential lands
covered by RA 730;
2. To provide simplified guidelines for the affordable and reasonable appraisal of residential
parcels for all applicants; and
3. To enhance economic growth by improving land tenure security and fostering the devel-
opment of an efficient land market in rural and urban areas by fast tracking the titling and
registration of residential lands covered by RA 730;
SECTION 2. DEFINITION OF TERMS - As used in this Administrative Order,
the following terms and phrases shall be defined and understood as follows:
a. Miscellaneous Sales Sale of alienable and disposable residential, commercial and
industrial lands under Chapter X of the Public Land Act (Commonwealth Act 141).
Disposition under miscellaneous sales is subject to bidding.
b. Miscellaneous Sales Under Republic Act 730 - Sale of alienable and disposable
residential lands not more than 1,000 square meters to qualified occupants as defined in
Section 6 of this Administrative Order.
c. Private Sale or Direct Sale - Sale of public lands to its actual occupants. Disposition
under direct or private sale is not subject to bidding.
d. Appraisal Process of determining the value of alienable and disposable land for sale
or lease under the Public Land Act.
e. Mass Appraisal Process of determining the value of all public land in a given locality
than can be disposed under RA 730.
f. Appraisal Committee A body created pursuant to Section 116 of the Public Land Act
for the purpose of determining the value of public land for sale or lease.
g. Systematic Adjudication or Disposition is a government-initiated process adjudicating
land rights on a locality basis and aiming to register all untitled land in the locality.
SECTION 3. COVERAGE - This Order shall apply to the systematic adjudication
and disposition of public land for residential purposes at a private sale under Republic Act
730.
SECTION 4. PUBLIC NOTICE - A declaration and public notice to inform the
community of the area that will undergo the systematic adjudication shall be made by the
DENR and the Local Government Unit during project preparation and before actual pro-
cessing of miscellaneous sales applications. For this purpose, a notice shall be posted
for a period of thirty (30) days at the Municipal Hall, Barangay Hall and CENRO office of the
area that will undergo systematic adjudication. A certification of posting shall be prepared
by the LGU concerned and the CENRO and the same shall be attached to the area
appraisal report.
SECTION 5. LAND PARCELS THAT MAY BE ACQUIRED AND AREA LIMITATION.
- Land of the public domain of the Republic of the Philippines which are non-timber or non-
mineral suitable for residential purposes and are not needed for public service, the area of
which shall not exceed one thousand square meters may be acquired through private sale.
SECTION 6. PERSONS ENTITLED TO A PRIVATE SALE. - Persons who have the
following qualifications may purchase public lands for residential purposes through private
or direct sale under Republic Act 730;
a) Filipino citizens;
b) Must be of legal age;
c) Do not own a home lot in the city or municipality where the land is located; and
d) Must occupy in good faith the land applied for, have constructed their houses thereon
and reside therein,
SECTION 7. CERTIFICATION FROM THE LOCAL PLANNING AND DEVELOP-
MENT OFFICE The concurrence of the local government units Planning and Develop-
ment Office shall be secured by the DENR before commencement of systematic adjudica-
tion under RA 730. For this purpose, the certification from the Local Government Unit
Planning Officer that the residential lands within the systematic adjudication area are not
needed for any public improvements and that the actual use of the land is residential shall
be secured and the same shall be sufficient compliance with the requirements under
Section 63 of the Public Land Act. The said office shall consider the respective LGUs land
use, zoning and road improvement plans in issuing this certification.
SECTION 8. APPRAISAL AND AUTHORITY TO SELL.
696
a. APPRASAL COMMTTEE Creation and Composition. An Appraisal Committee
charged to appraise public residential lands within an LGU area shall be created by the
Regional Executive Director, and shall be composed of the following:
1. The Community Environment and Natural Resources Officer or the Land
Management Officer when duly authorized by the CENRO; Chairman
2. Local Assessor or his/her duly authorized representatives; Member
3. Local Planning Officer or his/her duly authorized representative; Member
b. AREA APPRASAL - n order to increase efficiency and to provide prospective
applicants with a clear understanding of the cost of titling, the area appraisal of residential
lands in each area is hereby mandated. Area appraisal should be made before or during
community mobilization and prior to systematic adjudication/acceptance of application.
n order to maximize the efficiency of processing of appraisals, area appraisal can be
made on the whole municipality/city, on a whole barangay or group of barangays, sitio
and/or settlement.
c. GUDELNES N APPRASAL n conducting the appraisal under RA 730, due
consideration should be given to the over-all objective of the government of enhancing
economic growth by improving land tenure security and fostering the development of an
efficient land markets in rural and urban areas by fast tracking of titling and registration of
residential lands.
To this end, the following factors should be considered by the appraisal committee:
1. Assessed value of the land from the local assessors office;
2. Cadastral/Survey Costs incurred by the government;
3. Estimated administrative and/or budget cost of titling; and
4. Socio-economic data of the target area as may be provided by the LGU
The capacity to pay of the prospective applicants should be given important consider-
ation in the final determination of the cost of the land in order to make the sale affordable
and to increase participation provided, however, that the appraisal should not be lower than
the cost that will be incurred or may be incurred by the government in connection with the
application.
d. APPRASAL REPORT - After conducting the appraisal, the Committee shall prepare
and submit an Appraisal Report containing its findings and recommendations and the
reasons and/or justification in support thereof to the Regional Executive Director of the
DENR which should include:
1. Estimated cost that the government will incur in processing the MSA
2. Minimum price per parcel
3. The cost/price of the land per square meter.
The report shall likewise contain a request for authority to sell all residential lands in
the area under consideration that qualifies for disposition under RA 730.
e. APPROVAL OF APPRASAL AND AUTHORTY TO SELL. - The approval of the area
appraisal and the issuance of the Authority to Sell under this administrative order is hereby
delegated to the Regional Executive Director.
f. LOT COST - ndividual lots for disposition under RA 730 within the area covered by the
mass or area appraisal shall be appraised by a simple computation of the land area ap-
plied for and the appraised price per square meters provided that the cost shall not be
lower than the minimum price per parcel. Appraisal approval and authorization from the
RED to sell each individual lot is no longer necessary; it is sufficient that the CENRO
approves the computation.
SECTION 8. FILING AND PROCESSING OF APPLICATIONS Filing and process-
ing of Miscellaneous Sales Application in areas covered by systematic adjudication shall
be at the CENRO/PENRO, LGU and/or such other office designated as receiving and/or
processing office.
SECTION 9. NOTICE - Before the sales contract or an order of the awards is issued
to an applicant, a notice of the private sale shall be posted for a period of thirty (30) days
in a conspicuous place in the land itself, on the bulletin board of the Barangay Hall, the
Municipal /City Hall and the CENRO. A certification of posting shall be prepared by the
Local Government Units aforementioned and the CENRO Land nvestigator at the end of
said period attesting to the fact of compliance with this posting requirement.
SECTION 10. PAYMENT OF PURCHASE PRICE AND ISSUANCE OF PATENT a
down payment of ten per centum (10%) of the appraised value of the lot shall be collected
before the Order of Award may be made in favor of the purchaser. The balance of the
purchase price may be paid in full at the time of the award or in not more than ten (10)
equal annual installments from the date of the award. All over due installments shall bear
interest of four (4%) percent per annum. The applicant shall be entitled to the issuance of
patent upon completion of payment.
SECTION 11. AUTHORITY TO ISSUE PATENT The PENRO is authorized to sign
all patents issued pursuant to disposition of residential lands under RA 730.
SECTION 12. RESOLUTION OF CONFLICTS - Claims and conflicts arising from
disposition under this Administrative Order shall be resolved in accordance with existing
rules and procedures.
SECTION 13. REPEALING CLAUSE. - All orders, circulars, memoranda and other
issuances inconsistent herewith are hereby repealed and/or amended accordingly.
SECTION 14. EFFECTIVITY - This Order shall take effect fifteen (15) days after the
publication thereof in a newspaper of general circulation and acknowledgement of receipt
of a copy from the Office of the National Administrative Register (ONAR).
(SGD.) JOSE L. ATENZA, JR.
Secretary
-o0o-
Dated Filed: 29 May 2009
698
Memorandum Order No. 2009-02
Granting Clearance to Assist in the Management of the IPO
Watershed Areas to the Manila Water Company, Inc. (MWCI) and
Maynilad Water Services, Inc. (MWSI)
po Watershed is vital to the sustainability of quality water supply for the survival of
Metro Manila being the transit point of water coming from the Angat Watershed before
reaching the La Mesa Watershed Reservoi. The stability, productivity, and functionality of
the po Watershed is fast deteriorating brought about by the uncontrolled and massive rate
of forest degradation due to illegal settlements, illegal forest products harvesting, frequent
destructive fires encroaching into the natural forests, and conversion of forest lands for
cash crops production, all together acting in unison resulting to massive sand, silt and
rock deposition into the po Dam Reservoir.
To ensure the timely and efficient implementation of the rehabilitation, protection and
management of the po Watershed Area and to arrest its spiraling deterioration, pursuant
to Republic Act No. 7586, otherwise known as the National ntegrated Protected Areas
System (NPAS), the authority to manage the po Watershed Areas (as defined in Procla-
mation No. 391, placing the po Watershed under joint management by the Director of
Forestry, now DENR Secretary and the Administrator of the Metropolitan Waterworks and
Sewerage System), and DENR Administrative Order No. 2005-23 entitled Adoption and
mplementation of Collaborative Approach to Watershed Management, clearance is hereby
granted to the MANLA WATER COMPANY, NC. (MWC) and the MANLA WATER SER-
VCES, NC. (MWS) to assist in the management of the po Watershed areas subject to
the following guidelines:
Section 1. Joint Authority. The MWC and MWS are jointly authorized and directed
to negotiate and enter into agreement with a private entity with proven capabilities and
expertise in the rehabilitation, protection, and management of critical watershed areas.
Section 2. Agreement. The Authority referred to in Section 1 shall refer to the
implementation of the rehabilitation, protection, and development programs solely for the
rehabilitation, protection, and management of the po Watershed consistent with DENR
Section 3. Repealing Clause. Any Memorandum Orders and Circulars inconsistent
herewith are hereby repealed or modified accordingly.
Section 4. Effectivity. This Memorandum Order shall take effect fifteen (15) days after
publication in a newspaper of general circulation and receipt of a copy hereof by the Office
of the National Administrative Register.
Secretary
-o0o-
Date Filed : 06 June 2009
DENR Administrative Order No. 2009-07
Amending Section 4.1 and Section 5 of DAO 2007-20 Entitled
Rules and Regulations Governing the Issuance of Permit Over
Reclamation Projects and Special Patents Over Reclaimed Lands
Pursuant to the provisions of Executive Order No. 672 dated October 19, 2007 and to
clarify the issues on the issuance of permit over reclamation projects, the following provi-
sions of DAO 2007-20 are hereby amended:
Section 4. Definition of Terms
4.1 Area Clearance a document issued by the DENR Secretary providing
authorization or permit to an applicant to undertake reclamation project over an
applied area subject to certain conditions including environmental mitigation
and enhancement measures.
Section 5. Clearance Prior to Conduct of Reclamation Projects. No reclamation
project shall be undertaken, conducted and implemented unless the area
clearance is first secured from the DENR. This clearance shall be valid for one
year and reclamation projects must be implemented or must commence within
that period. Otherwise, the permittee must secure a new area clearance. This
is to ensure that clearance is used for the purpose for which it was issued.
Repealing Clause. All references to reclamation permit shall be interpreted as area
clearance. Other provisions of DAO 2007-20 not consistent in herewith shall remain valid.
Effectivity. This Order shall take effect fifteen (15) days after its complete publication in
a newspaper of general circulation and fifteen (15) days from the date of filing with the
Office of the National Administrative Register (ONAR).
Secretary
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Code of Conduct and Ethical Standards of the
Department of Environment and Natural Resources (DENR)
WHEREAS, Section 1, Article X of the 1987 Philippine Constitution provides that
Public office is a public trust. Public officers and employees must at all times be account-
able to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency,
act with patriotism and justice, and lead modest lives;
700
WHEREAS, Section 7, Chapter , Book V of Executive Order No. 292, otherwise
known as the Administrative Code of 1987 empowers the Secretary to promulgate ad-
ministrative issuances necessary for the efficient administration of the DENR;
WHEREAS, Section 13 of Republic Act No. 6713, otherwise known as the Code of
Conduct and Ethical Standards for Public Officials and Employees provides that nothing
in said Act shall be construed to derogate from any law, or any regulation prescribed by
any body or agency, which provides for more stringent standards for its officials and em-
ployees;
WHEREAS, the Cabinet in coordination with the Presidential Anti-Graft Commission
(PAGC) adopted a national anti-corruption framework known as ntegrity Development Action
Plan (DAP) on 17 December 2004;
WHEREAS, on 15 April 2005, the DENR submitted its agency-specific DAP commit-
ments to the PAGC;
WHEREAS, one of the DENRs DAP commitments is the formulation of the Code of
Conduct and Ethical Standards;
WHEREAS, Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of
2007 provides that the State shall maintain honesty and responsibility among its public
officials and employees. t shall take appropriate measures to promote transparency in
each agency with regard to the manner of transacting with the public, which shall encom-
pass a program for the adoption of simplified procedures that will reduce red tape and
expedite transaction in government; and
NOW, THEREFORE, the DENR hereby promulgates this Code of Conduct and Ethi-
cal Standards, to wit;
GENERAL PROVISIONS
SECTION 1. Title. This Code shall be known as the Code of Conduct and Ethical
Standards of the Department of Environment and Natural Resources.
SECTION 2. Objectives. The following are the objectives of this Code of Conduct and
Ethical Standards:
a. To serve as a tool to attain the DENR vision, mission and the core values;
b. To provide employees with guidance in ethically ambiguous situations in the perfor-
mance of their duties and responsibilities;
c. To sharpen the DENR criteria and standards for public service accountability and good
governance;
d. To serve as guidepost in clarifying desirable and undesirable governance;
e. To provide protection for employees against arbitrary or unethical behavior of superior
officials;
f. To develop and maintain public trust, transparency and integrity in the performance of
official duties and functions;
g. To help promote professionalism and standards of excellence in public service;
h. To impress upon employees the standards of behavior required of them in the perfor-
mance of their duties; and
i. To provide a detailed set of rules and guidelines for all officials and employees to meet
the highest standard of integrity in public service.
SECTION 3. DENR Vision and Mission.
VISION: A nation enjoying and sustaining its natural resources and a clean and
healthy environment.
MISSION: The DENR shall be the driving force in the pursuit of sustainable
development, enabling stakeholders participation in the protection, conservation and man-
agement of the environment and natural resources for the present and future generations.
SECTION 4. Core Values. Towards the attainment of the DENR Vision and Mis-
sion, the following Core Values shall be upheld:
a. The environment and natural resources are critical to the well-being of Filipinos and the
development of the country, and must therefore be governed with a deep sense of respon-
sibility and accountability.
b. As conservator and manager of the environment and natural resources, the DENR shall
fully observe integrity, accountability and transparency in its programs and projects.
c. The DENR shall ensure effective and efficient delivery of its services.
d. DENR officials and employees shall lead simple and modest lives, observe low carbon
lifestyles, and cultivate sincere appreciation for natural ecosystems appropriate for stew-
ards of the countrys environment and natural resources.
e. DENR officials and employees shall observe professionalism and organizational disci-
pline pursuant to laws and regulations and this Code.
f. Due diligence shall be observed in the making of decisions or actions and their
implementation.
g. All officials and employees of the DENR shall always promote nationalism, patriotism
and the sovereignty of the Philippines.
h. mprove the management of environment and natural resources in accordance with the
Constitution in partnership with stakeholders.
SECTION 5. Scope and Applicability. This Code shall apply to all officials and em-
ployees regardless of employment status within the DENR and its attached agencies,
702
including those on leave and those classified as contractual regardless of any stipulation
of the absence of an employer-employee relationship with the DENR (e.g. Job Order or
Contract of Service).
This Code shall complement the provisions of Executive Order No. 292, otherwise
known as the Administrative Code of 1987, Republic Act No. 6713 otherwise known as
the Code of Conduct and Ethical Standards for Public Officials and Employees, its mple-
menting Rules and Regulations, and issuances of the Civil Service Commission and other
relevant and related laws.
Former officials and employees shall within one (1) year from separation be prohibited
from transacting with their former offices and subordinates. Rendition of consultancy ser-
vices to former offices shall not be considered as transacting with said offices. Provided
that those that have compulsorily retired may not be hired as consultants.
Agency-Specific Ethical Obligations and Standards
Rule 1. RESPECT FOR THE CONSTITUTION, LAWS, ORDERS AND PROCE-
DURES.
1.1 Officials and employees shall faithfully implement Environment and Natural Re-
sources (ENR) laws, rules and regulations.
1.2 Officials and employees shall comply with lawful and reasonable directions from
superiors.
1.3 Officials and employees shall exercise their powers and duties lawfully and re-
sponsibly and at all times provide information and assistance to the public in accordance
with law.
1.4 Constructive feedback mechanisms shall be encouraged in carrying out the vision
and mission of the DENR.
1.5 Officials and employees must actively prevent abusive and demeaning conduct,
discrimination (as to gender, ethnicity, age, disability, status and religion) sexual harass-
ment and the like, committed by co-officials and co-employees, otherwise they shall be
punished in accordance with existing and applicable laws, rules and regulations.
1.6 Management shall ensure that all employees have a safe and sanitary work
place with appropriate space, ventilation and lighting, otherwise they shall be subject to
grievance procedure.
1.7 Proper office decorum shall be observed, including proper wearing of uniform and
D, otherwise erring official or employee shall be dealt accordingly.
1.8 Officials and employees shall actively implement the DENR Citizens Charter for
efficient, responsive and satisfactory delivery of frontline services.
Rule 2. INTEGRITY. All DENR officials and employees shall avoid any conduct
that would cause breach of the public trust and confidence. Any conflict that may arise
between personal interest and public interest must be resolved in favor of the latter.
2.1 Officials and supervisors shall treat customers, stakeholders, co-employees and offi-
cials with utmost honesty, impartiality and fairness, and respect their rights and obliga-
tions.
2.2 Officials and supervisors shall be fair and reasonable in making decisions and in giving
directions to subordinates.
2.3 Officials and employees shall notify or disclose to the appropriate authority violations
of law and breaches of ethical standards.
2.4 Officials and employees shall demonstrate good leadership and promote behavior
consistent with this Code.
2.5 Officials and supervisors shall acknowledge the good work of subordinates, delegate
authority with prudence and encourage professional development.
2.6 Employees shall be represented in the selection and recruitment process. The merit
promotion plan of the DENR shall be observed to strengthen professionalism. The ap-
pointing authority shall give regard to the recommendation of the Personnel Selection
Board (PSB).
Rule 3. CONFLICT OF INTEREST. Conflict of interest arises when a public offi-
cial or employee or a relative within the 4
th
civil degree of consanguinity or affinity of the
owner of a business, partner in a firm, member of a board, an officer or a substantial
stockholder of a private corporation who transact business with the DENR or applies for a
license or permit. All DENR officials and employees shall avoid conflict of interest in the
performance of their duties and functions.
3.1 Upon assumption into office or acceptance of employment or engagement in the DENR,
and everytime it becomes necessary, officials and employees shall identify, declare areas
of conflict of interest, and resolve such conflict in favor of the government.
3.2 Officials and employees as defined in Section 5 hereof shall disclose their business
and financial interests in their Annual Statement of Assets, Liabilities and Net worth (SALN)
and everytime it becomes necessary.
3.3 The practice of profession shall not be allowed unless authorized in writing by the
proper authority and shall not be in conflict with ones functions in the DENR.
3.4 Violations of this Rule shall be published in accordance with existing and applicable
laws, rules and regulations.
Rule 4. RECEIVING AND HANDLING OF COMPLAINTS
4.1 Cases originally filed with the DENR
All administrative complaints filed at the DENR Central Office, unless referred to the
Environmental Ombudsman or otherwise directed by the Office of the Secretary, shall be
referred to the appropriate division of the Legal Service and shall be acted upon and dis-
posed in the following manner:
704
A. Disposition of Cases without any nvestigation
1. Complaints filed by anonymous complainants, such as those by concerned citizens,
concerned DENR employees, etc. shall not be acted upon and be dismissed outright
through the issuance of a standard Order to be signed by the Secretary or his/her autho-
rized representative (Format A-1*), unless-
a. there is obvious truth or merit to the allegation, as can be ascertained from
a sufficiently detailed description of the act or omission complained of, and the
logical connections of the circumstances alleged, based on ordinary human
experience (otherwise the case will be dismissed); or
b. there is documentary or direct evidence attached that proves the allegations,
but the allegation/s thus proved must constitute the major element of the act or
omission complained of (otherwise the case will be dismissed).
2. Complaints filed against unnamed respondents such as those against certain officials,
certain employees, etc. shall not be acted upon and be dismissed outright through the
issuance of a standard Order to be signed by the Secretary or his/her authorized repre-
sentative (Format B)*. f the complainant is merely requesting for an investigation and
not for the imposition of administrative penalties, the complaint shall be forwarded to the
concerned office for investigation and action. A report shall be rendered on the sufficiency
and merit of the allegations and be submitted to the Office of the Secretary.
3. Complaints wherein the name of the complainant is indicated but without signature, or
those with signature but not under oath shall be returned to the complainant for his/her
signature and oath. f no address is indicated in the complaint, the same shall be dis-
missed outright pursuant to Section 48, Chapter 6, Subtitle A, Title of Book V of the
Administrative Code of 1987, through the issuance of a standard Order to be signed by the
Secretary or his/her duly authorized representative (Format A-2)*.
4. Complaints that identify both complainant/s and respondent/s but without narration of
relevant and material facts which show act/s or omission/s being complained of, shall be
dismissed outright for utter lack of merit through the issuance of standard Order to be
signed by the Secretary or his/her duly authorized representative (Format C)*.
5. Cases involving tardiness, habitual absenteeism and the like, where the offense is
clearly established by official records of the DENR, the head of office having jurisdiction or
supervision the employee, shall require the respondent to explain in writing within three
(3) days why no administrative sanctions shall be imposed against him/her. Should the
respondent admit the act/s or omission/s complained of, and does not raise any factual
or legal defense, the matter shall be referred to the Director of the Administrative Service
in the case of the Central Office who shall recommend to the Office of the Secretary the
imposition of the appropriate penalty, without the necessity of referring the case to the
appropriate division of the Office of the Legal Services. However, in the case of the
Regions, Bureaus and Attached Agencies, the matter shall be handled by the Legal
Division which shall recommend to the Head of Agency, the imposition of appropriate
penalty.
6. Penalty may be reduced based on mitigating circumstances such as the candor of
respondent in readily admitting the offense.
B. Disposition of Cases through Preliminary nvestigation
1. The following shall be subjected to preliminary investigation provided under Section 12
of the Uniform Rules:
a. Cases falling under the exceptions provided in paragraphs (a and b) of tem
1 above;
b. Cases falling under tem 2 above, when the Secretary/Head of Agency directs
the conduct of preliminary investigation based on the recommendations of the
Administrative Service and Legal Division in the Central Office and the Regional
Offices, Bureaus, and Attached Agencies, respectively, after identity of the
respondent had been established; and
c. Cases falling under tem 3 above, when the complainant affixes his/her
signature or subscribes to the complaint under oath.
2. Preliminary nvestigation Proper
a. Preliminary investigation shall be conducted by requiring respondent to file
Counter-Affidavit or Comment under oath within three (3) days from receipt of
the Complaint and Notice.
b. After receipt of the respondents Counter-Affidavit or Comment, or when the
deadline had lapsed without such Counter-Affidavit or Comment, the case will
be resolved based on the evidence on hand:
1. When there is substantial evidence proving the act or omission complained
of, then an Order will be issued declaring the respondent guilty and imposing
the appropriate penalty;
2. When there is no substantial evidence, but there is prima facie case
then:
2.1 Further preliminary investigation shall be conducted if the act or
omission is a light offense of the first or second incidence. Such investigation
shall be completed within one (1) month as far as practicable, after which the
case shall be resolved through an Order either declaring the respondent guilty
if there is substantial evidence supporting the same, or dismissing the case if
none is presented; and
2.2 f the act or omission is a grave or less grave offense, or light offense
of the third incidence, then a Formal Charge (See Annex Format)* shall be
issued against the respondent, unless the case is referred to the Environmental
Ombudsman for further action.
3. When neither substantial evidence nor prima face case exists, then an Order
will be issued dismissing the case.
706
C. Disposition of Cases Through Formal nvestigation
Formal investigation shall be conducted in accordance with Section 35 of the Uniform
Rules, without prejudice to the resolution of the case at any stage of the proceedings
should substantial evidence emerge to support the allegations in the complaint provided
the respondent was given reasonable opportunity to meet the evidence against him. Oth-
erwise, the case shall be dismissed after the conclusion of the Formal nvestigation.
4.2 Cases Originally Filed with the Office of Ombudsman
Cases that have been previously filed with the Ombudsman involving the same parties
and cause of action as the one filed with the DENR shall be resolved in the following
manner:
A. Where the Ombudsman exercises jurisdiction over the case by requiring the respon-
dent to submit his Answer/Counter-Affidavit or Comment, then the DENR shall dismiss the
case filed with it, without prejudice to any directive of the Office of the Ombudsman pursu-
ant to Republic Act No. 6770, otherwise known as the Ombudsman Act, such as referral
or indorsement.
B. Where the Ombudsman has not yet required the respondent to submit his or her An-
swer/Counter-affidavit or Comment, then the DENR shall hold the case in abeyance, until
the Ombudsman acts on the case, after which the case will be dismissed, unless the
case is immediately dismissible without investigation, in accordance with Rule 4.A.1 above.
4.3 Cases that maybe subjected to Alternative Dispute Resolution
Pursuant to Executive Order No. 523 and Republic Act No. 9285, those cases appro-
priate for Alternative Dispute Resolution shall be subject to such process. Such cases are
the following:
A. Cases arising from a personal transaction between complainant and respondent such
as agreements and contracts where a dispute or disagreement arose; and
B. Those arising from personal quarrels and the like, and there are no allegations involving
graft and corrupt practices, grave misconduct or gross negligence in the performance of
official functions.
4.4 Grievance Machinery. Work related issues or complaints giving rise to em-
ployee dissatisfaction shall be addressed through the grievance machinery. These cases
or issues shall not include the following: disciplinary cases, sexual harassment cases,
union related issues and concern, and complaint relative to the Performance Evaluation
System.
Rule 5. GIVING AND RECEIVING OF GIFTS. The DENR hereby adopts the follow-
ing gifts policy for all officials and employees.
No official or employee shall receive any gift in consideration of improper exercise of
official functions. Provided that any gift received in the amount of more than Php 5,000.00
except for the DENR as an institution shall be presumed to have been given and received
in consideration of improper exercise of official functions. Entertainment, travels whether
local or abroad, hotel accommodation, dinners and the like shall be considered gifts.
However, this rule shall not apply to relatives within the third degree of consanguinity or
affinity. Violation of this Rule shall be punished in accordance with existing and applicable
laws, rules and regulations.
Rule 6. PROHIBITION ON NEPOTISM. The DENR shall strictly prohibit Nepo-
tism which is the appointment made in favor of a relative of the appointing or recommend-
ing authority, or of the Chief of Office, or of the person exercising immediate supervision
over the appointee. The prohibition shall apply to relatives and members of the family
within the 3
rd
civil degree either of consanguinity or affinity, except to persons employed in
a confidential capacity.
The official, who appointed, recommended or the Chief of Office or supervisor of
the appointee shall be liable for nepotism and be punished accordingly. The appointment
issued in violation of this Rule shall accordingly be revoked.
The DENR discourages the employment of the members of the same family within
the 3
rd
civil degree either of consanguinity or affinity in its different offices including at-
tached agencies.
Rule 7. USING AND DISCLOSING OFFICIAL INFORMATION.
1. Officials and Employees shall recognize the Constitutional right of the people to infor-
mation on public concerns, and to have access to official records, documents and papers
pertaining to official acts, transactions or decisions, subject to limitations as may provided
by law and existing rules and regulations on confidentiality of information.
2. All officials and employees must not permit the unauthorized use, dissemination or
disclosure of information and documents that may be used against the interest of the
DENR. Otherwise they shall be liable in accordance with existing laws, rules and regula-
tions.
3. All papers, thesis, dissertation and other output from government sponsored scholar-
ship grants are considered properties of the DENR in accordance with the law on ntellec-
tual Property. Using the same without permission from the DENR shall be punished in
accordance with existing and applicable laws, rules and regulations.
Rule 8. DISCLOSURE OF MALPRACTICES AND CORRUPTION. n the interest of
improving accountability and fostering the fight against corruption the DENR hereby pre-
scribes the following:
1. The DENR shall encourage truthful disclosures of wrongdoing at the same time provide
sanctions for knowingly making-up false and malicious allegations.
2. The DENR shall encourage voluntary disclosure of malpractices and corruption. Such
disclosure shall be in writing, signed and under oath by the informant stating his personal
data, brief statement of facts and evidence in support of the information given.
3. DENR officials and employees shall disclose to the proper authority any evidence of
708
fraud, corruption, maladministration, official misconduct and negligent management re-
sulting in waste of government funds amounting to at least One Million Pesos (Php
1,000,000.00), or when such malpractice result to great risk to the environment.
4. An employee making false accusation knowing it to be false shall be punished in
accordance with existing and applicable laws, rules and regulations depending upon the
gravity or nature of the accusation.
1. n the event that the testimonies of the informant is necessary or indispensable
to the successful litigation of the case arising from the protected disclosure,
the informant maybe compelled to testify.
2. Any DENR official or employee under obligation to report or disclose in
accordance with Rule 8 of this Code who fails to do the same shall be held
liable depending on the circumstances of the case and be punished in accordance
with existing and applicable laws, rules and regulations.
Rule 9. RIGHTS AND PRIVILEGES OF INTERNAL REPORTER
1. Any official or employee disclosing any evidence of fraud, corruption, maladministration,
official misconduct and negligent management resulting in waste of government funds
amounting to at least One Million Pesos (Php 1,000,000.00), or great risk to the environ-
ment shall have the right to demand immediate action by the implementing bodies.
2. The DENR shall ensure that the identity of the informant and the disclosed information
shall be kept confidentially and be protected from any retaliatory actions, such as crimi-
nal, civil and administrative suits, including threat of transfer, unwarranted poor perfor-
mance evaluation, withholding of benefits and denial of work necessary for promotion. Any
official or employee making or causing any retaliatory action shall be held liable depending
on the circumstances of the case and be punished in accordance with existing and appli-
cable laws, rules and regulations.
3. An internal reporter who has an obligation by way of oath, rule or practice to maintain
confidentiality of information shall not be deemed to have committed a breach of such duty
if he makes a protected disclosure of such information.
4. An internal reporter shall be entitled to a commendation, promotion and any other form
of incentive as may be deemed appropriate; provided, that in cases involving graft and
corruption, the internal reporter may be granted a monetary incentive proportionate to the
amount of savings brought to the DENR as a result of the protected disclosure.
Rule 10. IMPLEMENTING BODY. The following are the additional duties and func-
tions of the Administrative Service (Central Office) or the Legal Division of the Regional
Offices, Bureaus and Attached Agencies in relation to the implementation of this Code.
1. Shall be the lead office in the implementation of the anti-corruption programs in their
respective offices.
2. Shall be the hearing office in the event that there is breach of this Code, the Code of
Conduct and Ethical Standards of Public Officials and Employees and other applicable
3. Shall act on complaints in relation to the implementation and enforcement of this Code.
4. Shall coordinate with the Office of the Ombudsman in conducting and monitoring lifestyle
of its employees.
5. The Legal Service shall handle appealed cases of violation of this Code, the Code of
Conduct and Ethical Standards of Public Officials and Employees and other applicable
rules and regulations which were decided or recommended by the Regional Office, Bureau
or Attached agency of the DENR.
Rule 11. PENALTIES AND SANCTION. Any administrative offense arising herein
shall be prosecuted, without prejudice to the filing of appropriate criminal and civil charges,
if warranted. Violation of the Citizens Charter shall be punished in accordance with R.A.
No. 9485.
Rule 12. REPEALING CLAUSE. All DENR orders, rules and regulations which are
inconsistent with the provisions of this Code are hereby repealed, amended or modified
accordingly, unless the same provide for a heavier penalty.
Rule 13. SEPARABILITY CLAUSE. f for any reason or reasons, any portion or
provision of this Code shall be held unconstitutional or invalid, all other parts or provisions
not affected shall continue to remain in full force and effect.
Rule 14. EFFECTIVITY AND DISSEMINATION. This Code shall take effect after 15
days following its publication in a newspaper of general circulation and after registration
with the UP Law Center.
Approved:
Secretary
DEPARTMENT OF FINANCE
Department Order No. 17-09
Clarificatory Guidelines on Duty-Free Importation of Books
These guidelines are being issued pursuant to Section 105 of the Tariff and Customs
Code of the Philippines (TCCP), as amended; Section 3 (3), Book V of the Administrative
Code of 1987; and, the Departments power of control over the Bureau of Customs (BOC)
and the Bureau of nternal Revenue.
710
1.0
Purpose
To clarify the treatment of duty-free importation of books allowed under existing laws
and international agreement/s, and to provide the guidelines for the availment thereof.
2.0
Coverage
This Department Order shall cover all applications for duty-free importation of books
allowed under Section 105 (s) of the TCCP, as amended, including the United Nations
Educational Scientific and Cultural Organization (UNESCO) Florence Agreement on the
mportation of Educational, Scientific and Cultural Materials,
1
and, Section 12 of Republic
Act (RA) No. 8047, or the Book Publishing Industry Development Act.
Section 105(s) speaks of importation of books for economic, technical, vocational,
scientific, philosophical, historical and religious purposes; while the UNESCO Florence
Agreement refers to educational, scientific or cultural materials listed in or covered by the
aforesaid Agreement.
2
Upon the other hand, Section 12 of RA 8047 refers to importation of
books or raw materials to be used in book publishing and its related activities.
The guidelines herein provided do not cover the treatment of imported books for Value-
Added Tax (VAT) purposes as Section 109 (r) of the 1997 Tax Code, as amended, provides
that the importation of books is VAT-exempt
3
, though applicant/importer still needs to
secure DOF confirmatory-exemption clearance for this purpose.
Also, duty-free importation of books by non-stock, non-profit educational institutions
is separately governed by Section 4 (3), Article XV of the 1987 Constitution, as imple-
mented by Department Order No. 137-87.
3.0
Definition
For the purpose of this Department Order, the following terms shall be understood to
mean, as follows
4
:
1
UNESCO Florence Agreement is already incorporated in Section 105(s) of the TCCP, as
amended.
2
The Florence Agreement contains Annexes A to E, Annex A (Books, publications and
documents); Annex B (works of art and collectors pieces of an educational, scientific or cultural
characters); Annex C (Visual and auditory materials of an educational, scientific or cultural
characters); Annex D (Scientific instruments or apparatus); and Annex E (Articles for the
blind)
3
Sale, importation, printing or publication of books and any newspaper, magazine, review or
bulletin which appears at regular intervals with fixed prices for subscription and sale and which
is not devoted principally to the publication of paid advertisements.
4
The definition of educational, technical, scientific, historical and cultural books provided by the
Tariff Commission. Educational, technical, scientific, historical and cultural books fall under the
Asean Harmonized Tariff Nomenclature (AHTN) Heading 4901.99.10, with one percent (1%)
rate of duty.
3.1 Book - it is a printed non-periodical publication of at least forty-eight (48) pages,
exclusive of cover pages, published in the country and made available to the public
5.
3.2 Educational books - consisting essentially of textual matter of any kind, and printed in
any language or characters. This includes textbooks including educational workbooks
sometimes called writing books, with or without narrative texts, which contain questions or
exercises. Such books may be bound (in paper or with soft or stiff covers) in one or more
volumes, or may be in the form of printed sheets comprising the whole or a part of the
complete work and designed for binding. Educational books are instructive and informative
books; it relates to teaching and learning. Examples: Textbooks, workbooks, writing books
for grade school, highschool, and college students and used as a basis for study in the
academe.
3.3 Technical books - these are specialized books, other than textbooks, consisting es-
sentially of textual matter of any kind and printed in any language or characters. This
includes technical publications, with or without narrative texts, which contain questions or
exercises. Such books may be found (in paper or with soft or stiff covers) in one or more
complete work and designed for binding. Examples: these are specialized books on eco-
nomics, accounting, business and marketing, engineering (engines, vehicles, automotives,
aircraft, and other technological books.)
3.4 Scientific Books - these are specialized books, other than textbooks, consisting es-
sentially of textual matter of any kind, and printed in any language or characters. This
includes scientific publications, with or without narrative texts, which contain questions or
complete work and designed for binding. Examples: medical books, agricultural books,
veterinary books and scientific theses.
3.5 Historical books - these are specialized books, other than textbooks, consisting es-
sentially of textual matter of any kind, and printed in any language or characters. This
includes historical publications, with or without narrative texts, which contain questions or
complete work and designed for binding. Examples: texts with history such as with chro-
nological dates and events.
3.6 Cultural books - these are specialized books, other than textbooks, consisting essen-
tially of textual matter of any kind, and printed in any language or characters. This includes
cultural books, with or without narrative texts, which contain questions or exercises. Such
books may be bound (in paper or with soft or stiff covers) in one or more volumes, or may
be in the form of printed sheets comprising the whole or a part of the complete work and
designed for binding. Examples: texts on languages, literature, fine arts and culture.
3.7 Book publishing - the process of choosing and making books dealing with everything
known to the human spirit, philosophy, religious beliefs, intellectual ideas, and physical
word, all the arts and sciences
6
.
5
As defined by UNESCO.
6
As defined in Section 3 (g) of RA 8047.
712
3.8 Related Activities - the domestic manufacturing industries, which have direct bearing
on the long-term viability of the book publishing
7
.
4.0
Guidelines
4.1 Applicant/importer must clearly state, at the outset, the basis under which he is claim-
ing duty-free importation of books/materials, and must clearly indicate the nature or pur-
pose thereof.
4.2 For importation under Section 105(s) of the TCCP, as amended, applicant/importer
must show that:
a. the imported books and/or publications are for economic, technical,
vocational, scientific, philosophical, historical, cultural or religious purposes,
as herein defined; and
b. the imported books and/or publications are not for sale, barter or hire (their
quantities do not exceed ten (10) copies of any work when imported by an
institution and two (2) copies of any one work when imported by an individual).
4.3 For importation under the UNESCO Florence Agreement, applicant importer must
show that:
a. that imported items are educational, scientific or cultural materials, as herein
defined, covered by or listed in the Florence Agreement; and,
b. the imported materials are not for sale, barter or hire (their quantities do not
exceed ten (10) copies of any work when imported by an institution and two (2)
copies of any one work when imported by an individual).
4.4 For importation under RA 8047, applicant/importer must show that:
a. the books or raw materials to be imported shall be used for book publishing
and its related activities as defined in Section 3 (g) (i) of RA 8047;
b. the importer is duly registered with the National Book Development Board
(NBDB);
c. the importer is duly authorized by the NBDB to make the importation; and,
d. the NBDB shall certify as to the quality and volume of the imported books
and raw materials.
4.5 Failure of the applicant/importer to satisfy the foregoing requirements shall subject the
importation to the payment of duties (which is generally 1% rate of duty for educational,
technical, scientific, historical or cultural books/materials or 5% rate of duty for books/
materials other than educational, technical, scientific, historical or cultural and those books
or raw materials not to be used for book publishing and its related activities) and other
charges or forfeiture as the circumstances may warrant.
7
As defined in Section 3 (i) of RA 8047.
5.0
Repealing Clause
All Department Orders or Circulars or parts thereof, which are inconsistent herewith
are hereby repealed or modified accordingly.
6.0
Effectivity
This Department Order shall take effect fifteen (15) days after publication.
Secretary
DEPARTMENT OF HEALTH
Administrative Order No. 2009-0001
Revised Policy and Guidelines on the
Diagnosis and Treatment for Malaria
I. Rationale
Malaria remains an important public health problem in the Philippines. t ranks ninth
among the leading causes of morbidity
i
and is endemic in 59 of the 81 provinces.
ii
n 2007,
the Department of Health-Malaria Control Program (DOH-MCP) reported a total of 36,235
malaria cases, giving an overall incidence of 41 per 100,000 population.
Treatment failure is one of the major problems hampering current efforts in the control
of malaria. n 2002, the DOH issued Administrative Order (AO) No. 129-A s. 2002 changing
the anti-malaria drug policy from the use of Chloroquine (CQ) and Sulfadoxine-Pyrimethamine
(SP) monotherapy to CQ+SP combination as the interim first line treatment. This change
was based on the evidences resulting from therapeutic efficacy studies conducted in sen-
tinel sites nationwide showing high treatment failures of CQ (>60%) and SP (>45%) which
exceeded the 25% 2000 benchmark set by the World Health Organization (WHO) for
clinical failures. n the said AO, the DOH prescribed the use of artemether-lumefantrine
(AL) combination as the second line drug, limiting its use only in the treatment of con-
firmed Plasmodium falciparum, until further study on its efficacy is done before making it
as the first line treatment.
i
Field Health Service Information System, Department of Health, 2006
ii
Program Accomplishment Report, Malaria Control Program, Department of Health, 2008
714
Consequently, the DOH in the past 6 years (2002-2007) adopted the use of artemisinin-
based combination therapy (ACT), particularly AL in the highly endemic areas of the coun-
try and conducted parallel efficacy studies (in the 3 sentinel sites: Kalinga, sabela and
Palawan and in several Mindanao provinces). Studies showed that the AL combination
treatment in these areas is efficacious at 97-100%, consistent with results of studies done
in other countries like Cambodia, Thailand, Tanzania, and Lao Peoples Democratic
Republic.
iii
These results indicate that AL combination which is a fixed dose formulation is a
better choice as the first line treatment of falciparum malaria than CQ+SP combination in
terms of efficacy, safety and tolerance profile, and compliance.
iv
Moreover, there is also an
increasing evidence in the efficacy of other ACTs and artemisinin-based suppositories.
v
The existing health infrastructure in many endemic areas now has better capacity to
confirm diagnosis and to supervise first-line treatment using ACTs. t is expected that with
this, the Millennium Development Goal (MDG) of reversing the trend in malaria incidence in
the Philippines by 2015 will be attained.
. Declaration of Policy
n line with the goal of better health outcomes (AO No. 2005-0023), the Malaria Control
Program aims for the reduction of malaria morbidity by at least 70%, and mortality by 50%
in the 26 category A provinces, declaring more malaria-free provinces, and preventing the
recurrence of malaria in malaria-free provinces towards reversing malaria incidence trend
by 2015. Given the consistent results of efficacy studies undertaken not only worldwide
but also in several parts of the country, the existing policy and guidelines on the diagnosis
and treatment of malaria is revised and updated such that the first-line drug treatment of
falciparum malaria is shifted from CQ + SP combination to AL combination. This issuance
is made in response to the requirement contained in AO No. 129-A s. 2002 for further study
to be undertaken by DOH on the use of AL combination therapy before it can be adopted
nationwide as the first-line treatment.
. Guiding Principles
The implementation of the updated policy and guideline on diagnosis and treatment of
malaria shall be guided by the following principles:
A. Provision of Effective Diagnosis and Treatment - The revised anti-malarial drug policy
and guidelines as prescribed and its implementation shall be subject to continuous review
and evaluation by technical experts. Efficacy studies must be regularly undertaken and
effective diagnosis and treatment approaches in other countries will be reviewed for pos-
sible adoption;
B. Primary Health Care Approach - The diagnosis and treatment of malaria must be imple-
mented within the primary health care perspective. This includes, among others, the recogni-
iii
2006 WHO Guidelines for the Treatment of Malaria.
iv
2006 WHO Guidelines for the Treatment of Malaria.
v
Artemisinin-based suppositories. Report of a WHO Informal Consultation, 27-28 March
2006, Geneva. WHO/HTM/MAL/2006.1118
tion as essential of the participation of the community in all aspects of diagnosis and
treatment, the mobilization of barangay health workers and other community volunteers
and groups for service delivery and other activities, and adapting the diagnostic and treat-
ment approaches according to varying conditions across localities and communities;
C. Universal Access - Malaria diagnostic and treatment services in accordance with the
revised policy and guideline must be made available and accessible to all, especially to
the vulnerable groups like pregnant women, infants, indigenous peoples, soldiers, etc.
D. Integrated Service Delivery - The provision of diagnostic and treatment services based
on the revised policy and guideline shall be integrated with the delivery of other health
services at the different levels of health care. t is important therefore that the revised policy
and guide be made part of the protocols of other relevant programs particularly in malaria-
endemic areas (e.g. prenatal care, integrated management of childhood illnesses, immu-
nization, micronutrient supplementation, etc.) in order to facilitate service delivery integra-
tion at the local level;
E. Health System Support - The implementation of the revised policy and guide to be
effective must be accompanied and supported with appropriate information campaign, ad-
equate and timely arrival of drugs and supplies, training of health providers and establish-
ment of quality assurance.
F. Multi-Sectoral Collaboration - The adoption of the revised diagnostic and treatment
policy and guidelines for malaria requires the full support of the different sectors at all
levels of operations. Efforts of concerned DOH offices and its attached agencies (e.g.
PhilHealth), other national government agencies (e.g. Department of nterior and Local
Government, Department of Education, DepEd, National and Anti-Poverty Commission,
Armed Forces of the Philippines, etc.) and the local government units (LGUs) cannot be
overemphasized. The contributions of the private sector (e.g. NGOs, academe, technical
experts, private practitioners, etc.) including the development partners and the donor com-
munity are equally important. Efforts will be exerted to enjoin the participation and involve-
ment of these different stakeholders.
IV. Objectives
n general, this policy aims to ensure early and correct diagnosis and effective treat-
ment of all malaria cases in the country. Specifically, it aims to:
1) guide health workers and medical practitioners in implementing the updated diagnosis
and treatment of malaria;
2) promote the compliance and adherence of the DOH offices, the LGUs and private sector
to the revised diagnosis and treatment guide;
3) generate the support of other stakeholders in facilitating the implementation of the
revised diagnosis and treatment guidelines in all localities nationwide.
V. Scope of Application
716
This order shall apply to all national, regional and local government offices, public and
private health facilities, NGOs, development partners and other stakeholders whose func-
tions and activities contribute to the prevention and control of malaria nationwide.
VI. Definition of Terms
Combination Therapy: the combination of two schizontocidal drugs with independent
modes of action and unrelated biochemical targets in the parasite (WHO, 2006), i.e.:
a. Artemisinin-based combination therapy (ACT): artemisinin derivatives in
combination with another schizontocidal drug;
b. Quinine + AL or QN +doxycycline/tetracycline/clindamycin
Confirmed Malaria: malaria diagnosis in a patient confirmed by either
a. Microscopy : The gold standard for malaria diagnosis demonstrating the
presence of parasites in a Giemsastained blood film, or
b. Rapid Diagnostic Test (RDT) : rapid dipstick test that has passed quality
control which detects parasite antigens in the human blood, that can be deployed
in remote areas
Direct Observed Therapy (DOT) : daily intake of the prescribed antimalarial drugs super-
vised and observed by health worker or treatment partner for the complete duration of
treatment.
Health Worker/Practitioner: refers to physicians, nurses, midwives, barangay health work-
ers and malaria microscopists trained in the diagnosis and treatment of malaria.
Malaria Microscopists: Medical Technologists or barangay microscopists trained by DOH-
MCP-RTM accredited malaria microscopy training programs or other WHO accredited
centers;
Malaria Treatment Failure : A patient with or without any symptoms of malaria who has
taken the correct dosage of anti-malarial treatment and presents with clinical deterioration
or recurrence of symptoms together with asexual parasitaemia within 28 days post-treat-
ment.
Severe Malaria: This condition is due to the dysfunction of organ systems secondary to
the combined effects of parasitemia (usually very high parasite load) with untreated infec-
tion, sequestration of infected red blood cells and anaemia. The clinical syndromes of
coma (cerebral malaria), respiratory distress, severe anaemia, renal failure, disseminated
intravascular coagulation, hypoglycemia and metabolic acidosis are present, which may
also be observed in other local infectious diseases.
Uncomplicated Malaria : This is a febrile condition with any species of malaria parasites
detected in a peripheral blood film and absence of severe disease and signs of multidrug-
resistant P. falciparum. Uncomplicated malaria may be accompanied by severe head-
aches and chills followed by a drenching sweat.
VII. General Guidelines
1. The diagnosis of malaria will be done as follows:
1.1 Microscopy will continue to be the gold standard for diagnosing malaria.
All areas with a functional laboratory will at all times employ this standard.
Microscopy standards will be maintained by a quality assurance system.
vi
1.2 Diagnosis Through Rapid Diagnostic Test kits that have passed quality
control tests will be used in the following situations: (i) there is no microscopy
center; (ii) requires client more than 2-hours travel to the nearest microscopy
centers as in inaccessible coastal or island areas; (iii) areas where there are
outbreaks; and (iv) selected hospitals without a trained microscopist in
emergency situation;
2. Treatment of malaria shall follow the recommended therapeutic regimen:
2.1 The Artemether- Lumefantrine (AL) combination will be the first line medicine
in the treatment of confirmed uncomplicated and severe Plasmodium falciparum
malaria, replacing CQ + SP combination;
2.2 f AL is not available, whether the patient is conscious or unconscious, and
in case of treatment failure, quinine (QN) in combination with either tetracycline
or doxycycline or clindamycin (QN +T/D/C x 7 days), will be the second-line
treatment.
2.3 n severe malaria cases wherein the patient is unconscious, and the facility
has no capacity to adequately manage the patient (e.g. naso-gastric tube or
intravenous therapy). Artesunate (AS) suppository can be introduced pending
transfer of patient to the next level of care.
vii
2.4 ACT can be used for all Plasmodium species and mixed infections;
2.5 All anti-malarial drugs will be selected based on pre-qualifications by WHO
or Good Manufacturing Procedures (GMP) certifications
3. Direct Observed Treatment (DOT) will be adopted as the mode of treatment of all
patients, with the first 3-day doses of AL treatment supervised by a trained health worker,
BHW or treatment partner;
4. mmediate referral of patients will be done as deemed necessary with pre-referral treat-
ment of appropriate anti-malarials administered by trained health workers especially of
cases with severe malaria and in patients who are pregnant and children below 5 years
old;
vi
Quality Assurance Guide and Standards will be developed as part of the Integrated
Malaria Control Operations Guide.
vii
Clinical Review, Evidence Behind the WHO Guidelines : Hospital Care for Children:
Efficacy and Safety of Artemisinin Derivatives in Children with Malaria, Journal of Tropical
Pediatrics 2006; 52 (2): 78-82
718
5. Competent health care providers will carry out diagnosis and treatment of malaria. Re-
orientation and re-training will be conducted especially in endemic areas;
6. Diagnosis and treatment of malaria will be supported with adequate and quality drugs
and other logistics required. The DOH shall provide for the national requirements of anti-
malarial medicines while the provision of laboratory supplies shall be a shared responsibil-
ity between the DOH-Centers for Health Development (CHDs) and the LGUs. Anti-malarial
drugs will be made available to all public and private health facilities. Upon effectively of
this issuance, remaining unexpired stocks of sulfadoxine-pyrimethamine (SP) must be
used before shifting to AL.
7. Malaria cases must be appropriately recorded and reported using the Philippine Malaria
nformation System (PhilMS). n areas where PhilMS has not been introduced or not yet
functional, the regular Field Health Service nformation System (FHSS) will be used. PHLMS
and FHSS will be mainstreamed under the Philippine ntegrated Disease Surveillance and
Response (PDSR).
8. The compliance and adherence of all concerned entities to the revised policy and guide
will be monitored on a regular basis.
VIII. Roles and Responsibilities
The DOH-National Center for Disease Prevention and Control (NCDPC) with the sup-
port of the other national DOH offices will take the lead in the management and execution
of this revised Policy and Guidelines on the Diagnosis and Treatment of Malaria. The
Centers for Health and Development (CHD) will take on the primary task of cascading and
adapting the policies and the general guidelines in their respective catchment provinces,
cities and municipalities. Support from professional societies, NGOs and other private
sectors will be mobilized and their participation will be institutionalized through the forma-
tion of national, regional and local coalitions with the primary mission of ensuring the
prevention and control of malaria in the country as a whole and specifically in their respec-
tive areas of assignment. The following are the roles and functions of the different entities
in the management and execution of this AO.
A. Department of Health at the National Level
1. National Center for Disease Prevention and Control (NCDPC)
The DOH-NCDPC will be primarily responsible for the overall execution of the revised
policy and guidelines on the diagnosis and treatment of malaria. t will undertake the
following tasks:
1.1 Lead in the dissemination of the revised Policy and Guidelines on the
Diagnosis and Treatment of malaria and advocate for its adoption and
implementation among concerned stakeholders;
1.2 Coordinate the design, implementation and/or advocacy pertinent to the
installation of essential management systems (e.g. staff development program,
logistics management, reporting system, quality assurance, surveillance
system, etc.) to ensure the efficient implementation of this policy;
1.3 Conduct orientation and/or training of concerned CHD officials and staff on
the revised diagnostic and treatment policy and guidelines when necessary;
1.4 Coordinate the timely procurement and distribution of quality anti-malarial
drugs to different regions in the country based on the allocation list prepared by
the Centers for Health Development;
1.5 Ensure quality assurance of diagnosis (microscopy and RDTs) and treatment
in collaboration with the Bureau of Food and Drugs (BFAD), Research nstitute
for Tropical Medicine (RTM) and WHO;
1.6 dentify and select sentinel sites for therapeutic efficacy surveillance, in
collaboration with Centers for Health Development and the LGUs;
1.7 Lobby and advocate for additional resources to strengthen the diagnosis
and treatment of malaria based on the comprehensive financing strategy designed
by the Health Policy Development and Planning Bureau.
1.8 Review the updated diagnostic and treatment guidelines as needed;
1.9 Monitor the performance of the CHDs in ensuring compliance and adherence
of LGU providers (public and private) to the revised diagnosis and treatment
policy and guidelines.
2. Procurement Division/Material Management Division
2.1 Undertake the timely procurement of all anti-malaria commodities;
2.2. Ensure the proper storage, timely distribution and delivery of commodities
to the end-users
3. National Epidemiology Center (NEC)
3.1 Provide accurate, timely and complete data as basis for policy decisions,
strategic actions and prioritization of resources and efforts;
3.2 Enhance/mainstream FHSS and PHLMS as source for tracking malaria
cases into PDSR.
4. PhilHealth
4.1 Review as necessary benefit package for malaria diagnosis and treatment
for both in-patient and out-patient care based on actuarial feasibility.
B. Centers for Health Development (CHD)
1. Ensure the dissemination, orientation and/or training of the CHD staff on the revised
Policy and Guidelines on the Diagnosis and Treatment of Malaria and advocate for its
adoption and implementation in the different localities within their respective regions;
720
2. Maintain quality assurance and internal control teams to ensure compliance to the set
of standards for confirmed malaria diagnosis;
3. Ensure availability of anti-malarial drugs in coordination with the DOH-NCDPC and LGUs
by: (i) facilitating the distribution of commodities according to the allocation list; (ii) aug-
menting laboratory supplies; (iii) quarterly monitoring of drugs and laboratory supplies
utilization; (iv) maintaining stock level of medicines and other commodities for outbreak or
emergency situations; and (v) maintaining the Geimsa-stained preparation/production center
in strategically located areas;
4. Mobilize additional resources to strengthen the implementation of the revised policy and
guidelines.
5. Formulate and implement advocacy plans to generate stakeholders support, particu-
larly the local officials.
6. Ensure timely reporting and surveillance;
7. nvestigate adverse reaction to medicines and prepare/submit appropriate report to the
National Office;
8. Monitor the implementation of the revised policy and guide by both public and private
providers in different localities in their respective regions;
C. Local Government Units
1. Provincial/City Health Office (P/CHO)
1.1 Conduct orientation/training of private and public health workers on the
revised policy and guidelines on diagnosis and treatment of malaria;
1.2 Advocate with municipalities/cities and other concerned agencies and
stakeholders to adopt and implement the revised policy and guidelines;
1.3 Provide counterpart funding for training, medicines and laboratory supplies;
1.4 Allocate anti-malarial drugs and laboratory supplies to service providers
within the province and monitor utilization thereof;
1.5 Ensure proper storage and availability of anti-malarial medicines at
dispensing facilities (i.e. accredited hospital pharmacies open 24/7), and require
regular inventory of stocks;
1.6 Ensure effectiveness of the systems on health human resource development,
logistics management, and reporting and surveillance and other systems towards
the efficient implementation of the policy;
1.7 Ensure that quality assurance and control system are in place for diagnosis
and treatment of malaria;
1.8 Ensure that follow-up smears of positive cases are undertaken weekly in
provincial and district hospitals, and where feasible for one month post-treatment
or for a longer period if necessary;
1.9 Mobilize additional resources for the implementation of the revised diagnostic
and treatment guide;
1.10 Ensure timely reporting and surveillance towards the efficient
implementation of the policy;
1.11 nvestigate adverse reactions to medicines and report the same to CHD
and the regional BFAD;
1.12 Monitor the implementation of the revised diagnostic and treatment policy
and guidelines in the public and private facilities especially hospitals;
2. Rural Health Units
2.1 mplement the revised diagnosis and treatment policy and guide;
2.2 Provide medicines for adverse drug reactions (ADRS) and report said cases
to PHO accordingly;
2.3 Provide laboratory confirmation of diagnosis;
2.4 Do follow-up smears of positive cases weekly for one month post-treatment
2.5 Ensure proper storage of anti-malarial drugs/other commodities, and make
a regular inventory of stocks;
2.6 Conduct training for midwives, BHWs and volunteers on the revised diagnosis
and treatment of malaria and provide counterpart support for trainees;
2.7 Collect, analyze and submit reports (PhilMS in some provinces) as required;
2.8 mplement information and education campaign on the revised diagnostic
and treatment guide;
2.9 Conduct and analyze client compliance survey.
3. Barangay Health Workers (BHWs)/Barangay Microscopists and Other Volunteers
3.1 Conduct case finding and supervise treatment;
3.2 Direct observation of intake of 1st -line anti-malarial medicines of positive
cases;
3.3 Mobilize communities to use personal protection measures and to seek
early diagnosis for provision of effective treatment;
722
3.4 Report/refer adverse reactions immediately;
3.5 Do follow-up smears of positive cases weekly for one month post-treatment
3.6 Submit updated reports regularly;
D. Regional, Provincial and District Hospitals
1. Provide services according to quality assurance protocol and guidelines; and
2. Make available anti-malarial drugs to private practitioners.
E. Philippine Movement Against Malaria (PhilMAM) and other Non-Govern-
ment Organizations collaborating with the Malaria Control Program.
As an implementing partner, may undertake the following responsibilities:
1. Support the implementation of the revised diagnostic and treatment policy and guide for
malaria;
2. Provide support in health service delivery, provided that appropriate training was ob-
tained i.e. Diagnosis and treatment of malaria, in partnership with local government units
or community;
3. Provide relevant experiences in community based malaria control, development of EC
messages and promotion of enabling environment that will link health system with com-
munities and can increase political support;
4. Undertake social marketing strategies to increase participation of communities and
local government units in the prevention and control of malaria;
5. Assist in mobilizing resources for additional medicines and laboratory supplies.
IX. Repealing Clause
Administrative Order 19, s. 1996, AO 129 s. 2002 and all other orders and related
issuances inconsistent with the provisions of this issuance are hereby rescinded.
X. Effectivity
This Order takes effect immediately.
(SGD.) FRANCSCO T. DUQUE , MD, MSc.
Secretary of Health
--o0o--
Implementing Rules and Regulations of Republic Act No. 9420, otherwise
known as An Act Converting Two Hundred (200) Beds of the 2000-Beds
Dr. Jose N. Rodriguez Memorial Hospital and Sanitarium for Tertiary
General Health Care, Appropriating Funds Therefore and for other Purposes
Adopted: 21 Oct. 2008
--o0o-
Addendum to Administrative Order No. 1, s. 2003 Operational
Guidelines in the Conduct of Pre-Employment Medical Examination
of Overseas Workers and Seafarers
Administrative Order No. 1, s. 2003 Section , 2. Specific Guidelines, 2.7, 2.7.1 states:
A full time psychologist registered with the Bureau of Health Facilities and Services
(BHFS) shall take the full responsibility of the psychological screening and evaluation
which includes the following battery of psychological tests: 1) Draw a Person Test (DAPT)
or House Tree Person Test 2) Sacks Sentence Completion Test (SSCT) 3) Bender Gestalt
Motor Visual Test 4) Ravens Progressive Matrices or Purdue Non Language Test.
These tests are still valid for use in the conduct of psychological examination for
overseas work applicants until further notice from the Department of Health. However,
there are some points to consider when using projective tests like DPAT and SSCT. Pro-
jective tests rely so greatly on subjective interpretations by clinicians and are open to a
number of interpretative biases. There is a tendency to over-interpret projective-test data
without sufficient empirical foundation. Furthermore, persons qualified to administer and
interpret DAPT require a masters degree and a course in the psychological assessment
as its minimum qualifications. As a result, psychologists without said qualifications work-
ing in medical facilities for overseas workers and seafarers are advised to use the 16
Personality Factors test, Filipino version, in lieu of the DAPT and the SSCT.
n view of the above, since projective tests require skilled and trained administrators
familiar with both the theory and structure of the tests, only psychologists with appropriate
level of training should score and interpret responses. This qualification is consistent with
the guidelines set forth in Standards for Educational and Psychological Testing.
The BHFS in coordination with the National Center for Mental Health shall regularly
review the minimum requirements in the conduct of psychological tests for overseas work
applicants. Updates and training for psychologists administering tests for overseas work
applicants shall be posted at the DOH website www.doh.gov.ph.
724
(SGD.) FRANCSCO T. DUQUE , M.D., MSc
Secretary of Health
--o0o--
Adoption of the Revised DOH Code of Conduct
. BACKGROUND
The Code of conduct is an essential component in ensuring efficiency, transparency
and accountability in the government service. ts primary objective is to establish the
Agencys own standards of behavior in the exercise of official functions. t also clarifies and
reinforces legal stipulations on unethical behavior and corrupt practices, hence is helpful in
managing the fight against corruption.
The development and implementation of the Code of Conduct is part of the ntegrity
Development Action Plan (DAP) a major initiative of the Presidential Anti-Graft Commis-
sion (PAGC) in partnership with national government agencies (including the Department
of Health), bureaus and regional offices. Formulation and adoption of an Agency-specific
Code of Conduct is part of the ten (10) DAP deliverables.
Although DOH officials and employees abide by the provisions of the Civil Service
Commission (CSC) Law and Rules and other applicable laws on personnel/administrative
issues, it was only in the late 2006 and onwards that the management began drafting the
DOH customized Code of Conduct not only as compliance with PAGC directives but also
to craft a tool or mechanism in fighting corruption and strengthen the culture of integrity
among its workforce.
Several policies were formulated and implemented through the issuance of Adminis-
trative Orders (AOs), Department Orders (DOs), Department Memorandums (DMs), etc. A
Project Team was created to review and consolidate these issuances into one (1) DOH
customized Code of Conduct and to harmonize the provisions in accordance with existing
CSC Law and Rules and other related laws.
. OBJECTVES
1. To set the guidelines and parameters for the DOH officials and employees in the con-
duct of their functions as civil servants.
2. To serve as deterrent against corruption and other malpractices in the government ser-
vice.
3. To specify the applicable administrative penalty for any violation of the DOH Code of
Conduct.
4. To establish a system of incentives and rewards for exemplary conduct and/or prac-
tices.
. APPLCABLTY
The DOH Code of conduct* shall apply to all DOH permanent and contractual officials
and employees in the Central Office, Centers for Health Development, Specialty and Re-
tained Hospitals, attached Offices/Units and Bureaus. t also includes non-plantilla con-
tractual employees and consultants who report within the DOHs regular working hours.
V. POLCES AND GUDELNES
The specific policies and guidelines are contained in the Handbook accompanying
this Administrative Order and is made an integral part hereof.
V. RESPONSBLTY
t is the responsibility of the Head of Agency or his/her authorized official to regularly
review and update the provisions of this Code of Conduct and to ensure compliance of all
officials and employees.
t is the responsibility of the Head of Health Human Resource Development Bureau
particularly the Training Division to orient the workforce especially newly-hired employees.
Each employee shall be furnished a copy of this Code for their guidance.
V. REPEALNG CLAUSE
All DOH issuances relative to the Code of Conduct and other related issuances includ-
ing those herein included/incorporated and not consistent with this Administrative Order
are hereby repealed, amended and modified accordingly.
V. EFFECTVTY
This Administrative Order shall take effect within fifteen (15) days after posting in the
DOH ntranet website.
(SGD.) FRANCSCO T. DUQUE , MD, MSc
Secretary of Health
--o0o--
726
Revised Policies and Guidelines on the Regulations on the
Issuances of a License to Operate (LTO), Certificate of Conformity
and Clearance for Customs Release Prescribed to Manufacturers,
Importers and Distributors of Toys in the Philippines
I. RATIONALE/BACKGROUND
To ensure the safety of Filipino children using locally manufactured or imported toys or
any other plaything intended for children, the Department of Trade and ndustry (DT) es-
tablished the Philippine National Standard for toys.
To implement this Standard, the Department of Health pursuant to Chapter Title
Hazardous Substances of Article 43 of Republic Act 7394, otherwise known as the Con-
sumer Act of the Philippines issued on September 28, 2007 Administrative Order (AO) No.
2007-0032 entitled, Regulations on the ssuance of a License to Operate to Companies
that Manufacture, mport or Distribute Toys for the Philippine Market.
However, there is a need to amend and supplement provisions to effectively implement
the subject matter, the Department of Health through the Bureau of Health Devices and
Technology (BHDT) hereby issues these revised policies and guidelines amending and
supplementing Administrative Order No. 2007-0032.
II. SCOPE
These Regulations shall apply to all local manufacturers, importers, distributors, whole-
salers, and retailers of toys that are sold or given free of charge in the Philippines.
III. OBJECTIVE
This Administrative Order is developed to establish, innovate, improve the procedures
and the health and safety requirements for toys marketed in the Philippines.
IV. DEFINITION OF TERMS
For purposes of this order, the terms below are defined as follows:
ACCREDITED TESTING LABORATORIES - refers to the laboratories accredited by the
Philippine Accreditation Office of the Department of Trade and ndustry or its counterpart
body in other countries that are signatories to the nternational Laboratory Accreditation
Cooperation (LAC)/Asia Pacific Laboratory Accreditation Cooperation (APLAC) Mutual
Recognition Arrangement (MRA).
APPLICANT - refers to a local or foreign establishment that seeks to secure a License to
Operate from the BHDT.
BATCH/LOT - refers to a specific quantity of toys which has uniform character and quality
within specified limits and is produced according to a single manufacturing order during
the same cycle of manufacture.
BHDT - refers to the Bureau of Health Devices and Technology of the Department of
Health.
CHD - refers to the Center for Health Development of the Department of Health.
CERTIFICATE OF CONFORMITY - refers to the certificate issued by the BHDT-DOH upon
compliance of the product with the requirements of the PNS.
CHILDREN - refers to any person whose age is chronologically and/or mentally below
fourteen (14) years old.
CONFORMITY ASSESSMENT - refers to a procedure by which the BHDT-DOH evaluates
a batch of toys and all its pertinent data and information to ensure conformance with the
set of essential health and safety requirements.
CLEARANCE FOR CUSTOMS RELEASE - refers to a document issued by the BHDT
allowing the release by the Bureau of Customs of a batch of toys for which a CONFOR-
MTY ASSESSMENT had been complied and approved by the BHDT.
CLEARANCE FOR CONDITIONAL RELEASE - refers to the document issued to an
importer allowing the temporary release of goods from Customs custody, upon compli-
ance with the BHDTs requirements, while awaiting process completion of its application
for a Certificate of Conformity.
DTI - refers to the Department of Trade and ndustry
DOH - refers to the Department of Health
DISTRIBUTOR - refers to any entity to which the toy product is delivered or sold for
purposes of distribution in commerce, or in such case repackages toys under different
trade name or trademark with permission from the original legal distributor, except that
such term does not include a manufacturer or retailer of such product.
ESTABLISHMENT - refers to an importer, manufacturer, or distributor of toys.
HRDRD - refers to the Health Related Device Regulation Division of the Bureau of Health
Devices and Technology of the Department of Health.
INTENDED USE - use of a product, process or service in accordance with information
provided by the supplier.
LABEL - refers to the display of printed or graphic matter on any consumer product, its
immediate container, tag, literature or other suitable material affixed thereto for the pur-
pose of giving information as to the identity, components, ingredients, attributes, direc-
tions for use, specifications and such other information as may be necessary to protect
health and safety of the consumers.
LICENSE TO OPERATE (LTO) - refers to the license issued by BHDT to manufacturers,
importers and distributors whose toy products conform with the health and safety require-
728
ments of the Department of Health and the Philippine National Standard for Toys and their
future amendments.
MANUFACTURER - refers to any establishment that assembles or processes toy prod-
ucts, except that if the toys are manufactured, assembled or processed for another estab-
lishment that attaches its own brand name to the toy products, the latter shall be deemed
the manufacturer. n case of imported toys, the manufacturers representative or, in his
absence, the importer, shall be deemed the manufacturer.
PACKAGING - refers to the material accompanying the toy when purchased, but having
no intended play function.
PAO - refers to the Philippine Accreditation Office of the Department of Trade and ndustry.
PNS - refers to the Philippine National Standards for Safety of Toys and its future amend-
ment.
RETAILER - refers to a person engaged in the business of selling consumer products
directly to consumers.
TESTING LABORATORY - refers to a facility for measuring, examining, and determining
one or more characteristics or performance of a toy, its material and component parts.
TOY - refers to an object or a number of objects clearly intended as plaything for children
below fourteen (14) years old.
TRADEMARK - refers to a group of words, name, title, symbol, emblem, sign, or device or
any combination thereof used as an advertisement, sign, label, poster or otherwise for the
purpose of enabling the public to distinguish the business of the person who owns and
uses said trade name or trademark.
WHOLESALER - refers to any natural person or juridical entity that sells products in bulk
or in large scale but not to the end user.
V. POLICIES AND GUIDELINES
A. General Guidelines
1. All toys that are imported, distributed and manufactured in the Philippines shall comply
with the Philippine National Standards for Safety of Toys and its subsequent amendments.
2. All local manufacturers, distributors and importers of toys shall apply for a License to
Operate (LTO) at the DOH through the BHDT. Approval of the LTO shall be based on
compliance with the Philippine National Standards (PNS) and on the completeness of
documentary requirements. The License to Operate (LTO) shall be issued and approved by
the BHDT Director, which shall be valid for three (3) years from the date of issuance and
subject to renewal unless sooner suspended or revoked in accordance with the regulations
of the Department of Health. A change of ownership or management shall result in revoca-
tion of the LTO.
3. All local manufacturers, importers and distributors of toys are required to secure a
Certificate of Conformity for every shipment/freight, batch/lot (whichever is applicable) of
toys manufactured, imported or distributed in the Philippines. Upon application, a sample(s)
of the toys in its final packaging for each kind of toy shall be submitted to the BHDT. These
toys shall be kept for a specified period of time. After the specified retention period, the
manufacturers, distributors and importers shall retrieve the toys from the BHDT; otherwise,
the BHDT shall dispose of the toys accordingly. Toys not complying with the requirements
of the specific PNS and/or other rules and regulations of the BHDT shall not be issued a
Certificate of Conformity.
4. All importers of toys shall secure a Clearance for Customs Release from the BHDT prior
to importation.
5. A Clearance for Conditional Release shall be issued by BHDT-DOH to facilitate the
release of goods from the Customs custody pending the issuance of the Certificate of
Conformity. The importer however shall not sell, distribute or transfer in whole or in part, the
toy products to any place other than the address specified in the conditional release. To
ensure that no distribution, sale, use and/or transfer of the toy products to any place other
than the address specified in the conditional release occurs, the importer shall allow au-
thorized personnel of the BHDT-DOH to conduct inspection/inventory of the import ship-
ment anytime within the official working hours.
6. Manufacturers, distributors, private or public organizations, individuals or any entity
intending to distribute brand new, used or second-hand, locally-made or imported donated
toys including toy parts and accessories through charities, donations, or promotional ac-
tivities shall secure a Certificate of Conformity from the DOH. These toys, toy parts and
accessories shall conform with the provisions of these regulations. Non-functional, incom-
plete, worn-out, broken or unsanitary imported donated toys shall be prohibited to enter
the Philippines and shall be reshipped to the country of origin.
7. Retailers/wholesalers selling toys in the Philippine market are required to:
a. buy toys only from manufacturers, importers and distributors with a valid
LTO from the BHDT;
b. sell or offer to sale only toy products that were issued with a Certificate of
Conformity; and
c. post in a conspicuous place the list of their toy suppliers/distributors.
8. f post market surveillance yields toys that are non-complying with the PNS, the imme-
diate recall and disposal of the toys shall be the responsibility of the establishment.
9. All toys recalled by the manufacturer or the DOH for whatever reasons shall be disposed
of in accordance with the submitted disposal plan subject to BHDT approval. The plan
shall comply with existing rules and regulations set by all concerned agencies of the
government and other related laws of the country. The concerned manufacturer, importer or
distributor shall shoulder all expenses regarding the disposal of the re-called toys.
730
10. All expenses incurred for press releases, warnings, notice of recalls, safety alerts
issued in print or broadcasted over radio or TV stations regarding the conduct of prohibited
act/s shall be shouldered by the company concerned.
11. All import shipments denied the requisite Certificate of Conformity shall not be dis-
posed of in the domestic market in any manner. They must be properly disposed of in
accordance with the provisions of the Tariff and Customs Code and other pertinent rules
and regulations.
12. Toys that are not covered within the scope of the PNS are exempted from the scope of
these regulations. A Certificate of Exemption maybe issued by the BHDT for toy products
not covered by these regulations upon request.
13. The existing relevant international standards shall prevail in case there are safety
concerns on toy products that are not covered in the Philippine National Standard.
14. Linkages with other concerned government agencies and NGOs shall be maintained in
the implementation of these Regulations.
B. Requirements for Laboratory Testing of Toys
The laboratory testing of toys shall be in accordance with the requirements in the
Philippine National Standards for the safety of toys.
C. Toy Samples Evaluation
1. Locally Manufactured toys
a. The BHDT technical staff shall evaluate the documents and toy samples
submitted by the applicant.
b. The applicant shall be given the list of accredited laboratories and the
endorsement form for laboratory testing.
c. The accredited laboratory chosen by the applicant shall fill up the endorsement
form and submit the same to the BHDT together with the test reports.
2. Imported Toys
a. The BHDT shall recognize test results done by an accredited laboratory in
another country subject to verification regarding its authenticity and the
applicability and validity of the tests conducted.
b. The counterpart laboratory in the Philippines that is accredited by PAO-DT
may issue the certificate of authenticity for test reports made by their accredited
testing laboratory in another country.
VI. DOCUMENTARY REQUIREMENTS
1. License to Operate (initial application)
a. Duly accomplished application form;
b. Copy of DT Certificate of Registration/SEC Articles of ncorporation;
c. List of toys and their SKUs or model numbers;
d. List of distributors/retailers;
e. Vicinity map;
f. Sworn undertaking;
g. Disposal plan/recall plan that conforms with the rules and regulations set by
all concerned agencies in the Philippines.
2. License to Operate (renewal application)
b. Affidavit of Continuous Compliance.
3. Certificate of Conformity
b. Packaging of the toys;
c. One sample of toy for each kind/model of toys in its final packaging;
d. Laboratory test report written in English for each kind of toy.
4. Clearance for Customs Release
b. Certificate of Conformity;
c. Bill of Lading/Airway bill;
d. nvoice/Packing list.
5. Clearance for Conditional release
b. Bill of lading/airway bill;
c. nvoice/Packing List.
Applicants whose documents have deficiencies shall be notified and be given (30)
thirty calendar days abeyance period to correct the deficiencies; otherwise, the applica-
tion shall be discarded.
6. Schedule of Fees (please see attached Annex A*)
VII. LABELING AND PACKAGING REQUIREMENTS
1. The DOH shall enforce compulsory labeling and fair packaging to enable the user to
obtain accurate information as to the nature, quality and quantity of the contents of toy
products and to facilitate comparison of the value of such toy products;
2. The LTO number issued by the BHDT shall appear in all toy containers or covering
wrappers. This number can be embossed, directly printed, or affixed to the package or
protective covering.
732
3. The packaging and labeling requirements of toys shall comply with the PNS for Safety
of Toys and its future amendments.
4. The cautionary statements (warnings) for toys shall be written in English and/or Filipino
in a visible, easily legible, understandable and indelible form. t shall be placed on the
packaging of the product so the consumer can easily see it.
5. The toys shall be labeled to indicate the minimum age for intended use. The age label
shall be placed on the packaging for easy reference.
6. Toys with magnets should come with a cautionary statement (warning) written in En-
glish and/or Filipino on the packaging of the toy.
VIII. MONITORING AND INSPECTION
1. The BHDT shall cause the inspection, monitoring and surveillance of establishments to
determine compliance with these Regulations.
2. Power of Entry. The BHDT technical staff shall secure the necessary Department Per-
sonnel Order prior to the conduct of the monitoring and inspection activity. Upon presenta-
tion of this Order, the BHDT technical staff member shall have the authority to undertake
the following activities pursuant to these rules and regulations.
a. enter or access premises of manufacturer or distributor
b. request or examine relevant documents and other information related to the
toy being applied for;
c. conduct sampling of toy products, parts and accessories.
IX. ROLES AND FUNCTIONS OF THE CHD
The Centers for Health Development nationwide shall assist the BHDT in the imple-
mentation of these Regulations. The CHDs shall:
1. Disseminate information to the stakeholders regarding the implementation of these
Regulations.
2. Make available application forms and the list of requirements to the clients in remote
areas applying for LTO with the BHDT.
3. Coordinate with the BHDT and the local government units in their area of jurisdiction on
the implementation of these Regulations.
4. The CHD may receive applications for an LTO in remote areas provided that such shall
be forwarded to the BHDT office in Manila for evaluation and issuance.
X. HANDLING OF APPEALS
The BHDT Director shall approve the issuance of LTOs. The BHDT Director shall also
impose sanctions on establishments violating these Regulations. The establishments af-
fected by these decisions may file a motion for reconsideration with the Office of the
Undersecretary for Health Regulations within fifteen (15) days from receipt thereof.
The aggrieved party may appeal the decision within fifteen (15) days from receipt
thereof to the Office of the Undersecretary for Health Regulations. The decision of the
Undersecretary of Health for Health Regulations shall be final and executory.
XI. PENAL PROVISIONS
1. Prohibited Acts
The following are the Acts prohibited under these regulations:
a. Material misrepresentation or concealment of significant data or information
about the product sought for certification;
b. Submission of falsified documents by the applicant;
c. Manufacture, importation, labeling, distribution, operation without registration;
d. Material misrepresentation and/or falsifications in the submission of
registration/renewal requirements;
e. Non-compliance with the standards and requirements on the manufacture,
importation, labeling, distribution, retailing and operation; and
f. Refusal to allow required inspection as determined by the bureau.
2. Administrative Sanctions/Penalties
The following administrative proceedings and sanctions shall be imposed by the De-
partment of Health:
a. Upon verified information of the conduct of prohibited act/s, the bureau shall
conduct an administrative hearing with proper notices to determine conduct of
prohibited actions and the persons liable.
b. n cases where there is finding of prohibited actions and determination of the
persons liable, the bureau is authorized to impose any or all of the following
sanctions;
i. suspension of LTO;
ii. revocation of LTO;
iii. seizure of the unregistered, non-compliant or falsely represented toy
products;
3. Any person or entity that violates any of the provisions of these regulations shall,
upon conviction, be subject to a fine of not less than One Thousand Pesos (Php 1,000) or
an imprisonment of not less than six (6) months but not more than five (5) years or both
upon the discretion of the court and other sanctions and penalties stated in R.A. 7349
otherwise known as the Consumer Act of the Philippines.
XII. SEPARABILITY CLAUSE
734
n the event that any rule, section, paragraph, sentence, clause or words of these
rules and regulations is declared invalid for any reason, the other provisions thereof shall
not be affected.
XIII. REPEALING CLAUSE
All administrative orders, rules and regulations and administrative issuances or parts
thereof inconsistent with the provisions of this guideline including Administrative Order No.
2007-0032 are hereby repealed or amended accordingly.
XIV. EFFECTIVITY
This Order shall take effect fifteen (15) days after its publication in an official gazette or
(SGD.) FRANCSCO T. DUQUE, M.D. MSc.
Secretary of Health
Annex A
Fees
a. License to Operate (LTO)
All fees are payable to the Department of Health in accordance with the following
schedule:
Registration Fee Capitalization
Php 1,000.00 <P500,000
Php 2,000.00 P500,000 - P999,999
Php 3,000.00 > or equal to P1,000,000
b. Certificate of Conformity 50.00 per Certificate issued
c. Certificate of Conditional Release 200.00
d. Clearance for Customs Release 200.00
e. Certificate of Exemption (toy product) P200.00
f. Certificate of Exemption from securing an LTO
Exemption Fee Capitalization
Php 1,000.00 <P500,000
Php 2,000.00 P500,000 - P999,999
Php 3,000.00 > or equal to P1,000,000
Fees and charges are subject to change as may be deemed necessary. Filing of
renewal for LTO shall be made at least two months before the expiration date. A penalty of
fifty (50%) percent of the registration fee shall be paid by the applicant for late filing of
renewal.
The toys applied for a Certificate of Conformity shall be evaluated based on the mini-
mum requirements set by the Bureau of Health Devices and Technology (BHDT).
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Department Order No. 03-A, s. of 2009
Amendment to D.O. No. 3, series of 2009, Reducing the
Minimum Paid-Up Capital Requirements for DPWH Accreditation of
Surety and Insurance Companies from P500M to P100M
n consideration of the appeal of various surety and insurance companies to reduce
the minimum paid-up capital requirement of Five Hundred Million Pesos (P500,000,000.00)
for accreditation of surety and insurance companies and to encourage accreditation of
more companies with less than P500.00 Million paid-up capital but are found refutable
based on their track records, the minimum paid-up capital requirements is hereby reduced
from P500.00 Million to P100.00 Million with the following categories on the limit of partici-
pation depending on the cost of the project/s to be insured:
COST OF PROJECT
PAD-UP BD PERFORMANCE SURETY BOND CAR WARRANTY
CAPTAL SECURTY SECURTY ADVANCED RETENTON BOND
PAYMENT MONEY
100 < 200M No Limit < 100.00 M < 100.00 M < 100.00 M < 100.00 M < 100.00 M
200 < 300M No Limit < 200.00 M < 200.00 M < 200.00 M < 200.00 M < 200.00 M
300 < 400M No Limit < 300.00 M < 300.00 M < 300.00 M < 300.00 M < 300.00 M
400 < 500M No Limit < 400.00 M < 400.00 M < 400.00 M < 400.00 M < 400.00 M
500M & above No Limit No Limit No Limit No Limit No Limit No Limit
(SGD.) HERMOGENES E. EBDANE, JR.
Secretary
736
DEPARTMENT OF SCIENCE AND TECHNOLOGY
DOST Administrative Order No. 002
DOST Merit Selection Plan
All concerned officials of the DOST System are hereby directed to adopt and ensure
the efficient implementation of the attached amended DOST Merit Selection Plan (MSP)*
which was duly approved by the Civil Service Commission (CSC) on January 06, 2009.
This Order supersedes all previous issuances considered inconsistent herewith.
(SGD.) ESTRELLA F. ALABASTRO, PhD.
Secretary
--o0o--
DOST Administrative Order No. 004
Amended Evaluation Guidelines for Eligibility of Non-DOST System S & T
Personnel Under Republic Act No. 8439, Magna Carta for Scientists,
Engineers, Researchers and Other Science and Technology Personnel
in Government
U.P. Law Complex, Diliman Quezon City
Adopted: 17 Apr. 2009
--o0o--
SCC-7 Resolution No. 01, s. 2009
Unanimously Approving the Academic Equivalency of Doctor of
Medicine (MD) for Purposes of Admission to the Scientific Career System
Aware of the provisions of Section 3 of the Merit System for the Scientific Career
System (MSSCS) CY 2006, wherein the Scientific Career System (SCS) is a system of
recruitment, career progression, recognition and reward of scientists in the public service;
Recognizing that there are medical doctors in the government service who demon-
strate exemplary performance in their research undertakings and are scientifically produc-
tive thus, are deserving to enter SCS;
Recognizing the need to set the equivalency of MD to MS and PhD degrees to stan-
dardize the minimum entry requirements for medical doctors who may be deemed quali-
fied for admission to the System;
HEREBY UNANMOUSLY APPROVES that for purposes of admission and upgrading
of scientific ranks in the Scientific Career System, Doctor of Medicine (MD) is equivalent
to Master of Science (MS) degree and that a medical doctor with scientific paper pub-
lished in an S or peer-reviewed journal and have residency and/or fellowship training is
comparable to those with Doctor of Philosophy (PhD) degree. t must be understood,
however, that nominations from the Medical Sciences shall still be subject to existing
policies and procedures of SCS.
(SGD.) RCARDO L. SALUDO (SGD.) ESTRELLA F. ALABASTRO
Ex-Officio Chairman Ex-Officio Co-Chairman
(SGD.) EML Q. JAVER (SGD.) JAME C. MONTOYA
Ex-Officio Member Ex-Officio Member
(SGD.) EMERLNDA R. ROMAN
Ex-Officio Member
Department Administrative Order No. 09-03
Implementing Rules and Regulations on the Tariff Rate Quota
(TRQ) Availment for Philippine Imports of Tinplate (TP), Hot Rolled (HR)
and Cold Rolled (CR) Steel from Japan Under the Japan-Philippines
Economic Partnership Agreement (JPEPA)
WHEREAS, Article 18 of the Japan-Philippines Economic Partnership Agreement
(JPEPA) provides that each party shall eliminate or reduce the customs duties on originat-
ing goods of the other Party designated for such purposes in its schedule in Annex 1, in
accordance with the terms and conditions set out in such Schedule;
WHEREAS, Part 3 Section 1 of the Notes for Schedule of the Philippines provides for
the tariff rate quota (TRQ) and other preferential tariff treatment that shall apply to originat-
ing goods of Japan;
738
WHEREAS, the DT is mandated to implement the TRQ availment rules and regula-
tions;
NOW, THEREFORE, for and in consideration of the foregoing premises, this imple-
menting rules and regulations is hereby promulgated to implement the TRQ availment for
Philippine imports of tinplate, hot rolled and cold rolled steel from Japan under the JPEPA.
SECTION 1. Accreditation of Importer -
A. Eligibility Criteria
1. The applicant shall be an existing manufacturer (herein referred to as importer) for at
least one year that uses TP, HR and/or CR steel, in the form of coil, sheet, or plates, as an
input raw material to produce any but not limited to the following:
a. Electrical appliances/electrical devices/electrical machinery/power equipment;
b. Motor vehicles and parts thereof;
c. Cans for foodstuff and beverages;
d. Ships and parts thereof;
e. Mechanical devices, machinery, and machinery parts; and
f. Downstream steel products, such as cold rolled and coated sheets, welded
pipes, and similar or like products.
2. The term importer shall exclude a mere trader and/or stockist which engage in purely
buying and selling.
3. A service center may be considered a manufacturer if it cuts and shapes steel plates
and sheet (coils) in preparation for processing into a product covered by Section 1.a to 1.e
above.
4. The importer may either be a sole proprietorship, partnership, or corporation established
and duly authorized do business in the Philippines, in an activity indicated in the foregoing.
B. Accreditation Procedure
1. The importer, prior to filing of its first request for an Authority to mport (AT), shall submit
the following documents to the Department of Trade and ndustry - Bureau of mport Ser-
vices (DT-BS):
a. Accomplished and Notarized Application for Accreditation Form, containing
information including, but not limited to:
a.1 Products being manufactured;
a.2 Annual operating data for the past three (3) years immediately preceding
the importers application for accreditation, or for the actual number of years in
case of less than three (3) years of operation, whichever is applicable:
a.2.i. Annual rated capacity and corresponding annual requirement for
TP, HR and/or CR steel.
a.2.ii.Actual Annual Production Volume
a.2.iii Annual Sales Volume and Value
a.2.iv Annual TP, HR and/or CR steel purchases (local and imports, the
latter with breakdown as to country of origin: from Japan; and from other
countries.)
a.2.v Beginning and ending inventory of the following items, as of 31
December for the year prior to application:
-TP
- HR and/or
- CR steel
- Finished products;
b. Certified true copy of the following:
b.1 Valid Department of Trade and ndustry (DT) Certificate of Registration;
or Securities and Exchange Commission (SEC) Certificate of Registration,
whichever applies;
b.2 Articles of ncorporation/Partnership and By-Laws; and,
b.3 Customs Accreditation Service (CAS) Registration;
b.4 n cases where the importer manufactures a finished product covered
by the List of Products Under Mandatory Product Certification, he shall submit
a certified true copy of the Philippine Standard (PS) Quality/Safety Certification
Mark license issued by Bureau of Product Standards (BPS).
c. Certified true copy of importers latest Audited Financial Statements (AFS)
and ncome Tax Return (TR);
d. mporters Notarized Board Secretarys Certificate stating that the importing
companys Board of Directors authorizes its named officer to represent, act,
and to sign on behalf of the importer enterprise;
e. Undertaking to be issued by the importer that it is not in arrears in the
payment of outstanding national tax and duty obligations.
2. Prior to official acceptance, the DT-BS shall check the completeness of documents
submitted. The process shall take no more than two (2) working days. ncomplete applica-
tion documents shall be returned to the importer.
3. An application shall be verified and evaluated within a period of three (3) working days
from official acceptance. Upon approval of an application, DT-BS shall inform the appli-
cant in writing, and issue the necessary accreditation certificate.
4. Disapproved/rejected applicants shall be informed accordingly and provided with the
basis for such action.
740
5. The DT-BS shall reject an application on the following cases:
a. non-qualification under the eligibility criteria;
b. misrepresentation of claims or facts; Only one (1) request for reconsideration
shall be allowed under this circumstance; or
c. such other analogous cases
Minor oversights such as typographical errors or unintentional omissions shall
not constitute misrepresentation with intent to deceive.
SECTION II. Allocation of TRQ -
A. Product Criteria
Only importations of TP, HR and CR steel shall be governed by TRQ scheme as
identified by their tariff headings in Annex A*.
B. TRQ Volumes
1. Total TRQ
The TRQ during the first three (3) years of the implementation of the JPEPA, shall
follow the aggregate volume set in the JPEPA, to wit:
Year 1 - 175,000 metric tons
2. Sectoral TRQ Allocation
a. The aggregate TRQ volume will be allocated to each of the following sectors per quota
term:
a.1 Electrical appliances/electrical devices/electrical machinery/power
equipment;
a.2 Motor vehicles and parts thereof;
a.3 Cans for foodstuff and beverages;
a.4 Ships and parts thereof;
a.5 Mechanical devices, machinery, and machinery parts;
a.6 Downstream steel products, such as cold rolled and coated sheets, welded
pipes, and the like
b. Computation of Allocations
The TRQ volume for a particular sector shall be based on the ratio of the sectors
imports from Japan to the total aggregate import volume from Japan for the year prior to the
allocation:
A
----- X C
B
Where:
A = Sector mportation of TP, HR and CR steel from Japan for the year
immediately preceding the Quota Term
B = Total mportation of TP, HR and CR steel from Japan for the year immediately
preceding the Quota Term; and
C = Aggregate Quota for the applicable Quota Term (i.e., 175,000 MT for the 1st
year, 187,500 MT for the 2nd year, etc.)
c. n the absence of sectoral imports data for the first year, the volume of imports submit-
ted in the accreditation process shall serve as basis for the sectoral importation.
d. The DT shall monitor and review the actual AT issuances and importations for each
quarter. f it appears that there is a significant underutilization of a sectors quota, based on
two successive quarters of data, the DT shall study the reason for the variance and upon
its discretion undertake the necessary reallocation of unused quota in favor of those who
need them more.
e. Any unutilized allocation by the end of the 4th quarter shall be forfeited and in no case
shall carry-over of unutilized allocation be allowed.
3. ndividual TRQ
a. The grant of the TRQ volume through the Authority to mport (AT) issued to individual
importers shall be on first come, first served basis but in accordance with the Sectoral
TRQ allocation provided in the foregoing.
b. The total TRQ volume that may be granted to individual importer per quota term for each
of the following (1) TP, (2) HR, and (3) CR steel shall;
b.1 not exceed the importers total annual requirement for (1) TP; (2) HR, and
(3) CR steel, as the case may be, declared in the importers application for
registration, unless there is prior proof of expanded capacity;
b.2 not exceed the available/remaining TRQ for the applicable year;
c.n case the importer sells the scraps or second-grade (i.e. inferior or unsatisfactory)
imported steel products in the domestic market, the importer shall pay twice the corre-
sponding duties using most-favored-nation applied rate at the time of importation.
The importer shall secure authority from DT-BS prior to any disposal of scraps or
second-grade imported steel products.
d. n case the total TRQ volumes for the year are completely issued, the DT shall auto-
matically disapprove all requests for TRQ adjustments.
742
SECTION III. Availment Procedure
A. Eligibility to Import
Only accredited importers and their import representatives, e.g., indentors, traders
and consolidators, are allowed to apply for AT under the scheme.
B. Authority to Import (ATI)
a. Every shipment shall be covered by an AT.
b. Each AT shall be covered by an individual control number that clearly refers to year and
specific issue number. Partial shipments within the volume covered by the AT may be
allowed subject to the rules and regulations of the BOC.
c. The original AT with security strip shall be issued by the DT to the importer or its import
representative, with one photocopy each for the DT-Records, DT-mplementing Office,
DOF and BOC.
d. The validity of an AT shall be for six (6) months from the date of issuance. Shipment
covered by an AT shall be loaded on board within the validity of such AT.
DT may, upon the request of the importer, extend the validity of an AT that is unutilized
and about to lapse under any circumstances, either force majeure or non force majeure.
Such request for extension must be filed at least 15 days prior to the expiry date of the
ATs validity. Provided, that in cases of force majeure occurring on the last day of the ATs
validity, the request for extension must be filed within 48 hours from cessation of the event
that caused its non-utilization.
Provided further that any extension granted shall in no case exceed thirty (30) days
from the last day of its validity; Provided finally, that any such extension granted shall be
within the same quota term that the AT was issued.
C. ATI Application Procedure
a. The importer or its import representative shall apply for an AT prior to importation or
opening of the letter of credit.
b. When applying for an AT, the importer or its import representative shall submit the
accomplished AT Application Form that contains the following information:
b.1 Complete name and address of the importer
b.2 Complete name and address of the supplier
b.3 Complete warehouse address
b.4 Volume (in MT) of the importation
b.5 Description of TP, HR and/or CR Steel to be imported - complete with exact
quality specifications
b.6 Purchase Price - clearly indicating whether FOB, CNF, CF, or the like
b.7 Period within which the importation is to be made, including latest shipment
date(s).
b.8 Port of origin
c. The Application Form shall be accompanied by the following supporting documents:
c.1 mporters Notarized Affidavit of ntent as final user indicating end-usage
and application, among other things; and
c.2 Photocopy of sales contract, sales/purchase order, pro-forma invoice, or
like documents, covering the importation, issued in the name of the importer or
its import representative as consignee to whom the shipment will be released
by the BOC; provided further that the applicable PNS in the case of the products
being covered by the List of Products Under Mandatory Product Certification to
which the TP, HR and CR steel being imported conform to (as specified by the
importer or its import representative) is indicated in the said sales contract,
sales/purchase order, pro-forma invoice, or like documents, covering the
importation.
c.3 n case the AT application is accomplished by an import representative, a
copy of the contract of agency or the relevant document providing the contractual
relationship between the accredited importer and the applicant import
representative.
d. The DT-BS shall accept an AT application only if documents and information are
complete. Otherwise it shall be returned to the importer or import representative for correc-
tion and/or completion.
SECTION IV. ATI Approval and Disapproval
1. For an AT application to merit approval, the article to be imported shall meet the follow-
ing criteria;
a. The imported TP, HR and CR steel products shall conform to the applicable
Philippine National Standards (PNS).
b. t shall not be for re-sale or trading.
c. t shall be used exclusively as raw material by the importer for the manufacture
of goods as declared in its application for accreditation.
d. t shall comply with the Rules of Origin governing JPEPA.
e. t shall not be locally produced. As reference, Annex B* shall contain the
HS codes and description of not locally produced steel products. Annex B
shall be subjected to review and modification periodically or whenever necessary.
2. AT applications covering products found in Annex B* shall be approved.
3. n the event that the local industry is unable to produce the said item(s) or is unable to
meet the quantity, quality, price and delivery requirements of the user, DT-BS reserves
the right to allow importation of the said items after determination of the said conditions.
744
4. mportation of products that are locally produced may nevertheless be allowed if the
local product in question does not meet (a) the required quantity; (b) the required quality;
(c) reasonable price; and (d) timely delivery.
5. f the application is approved, the AT shall be issued within three (3) working days from
the acceptance of the application. n the case referred to in the preceding paragraph, the
issuance of AT shall be within ten (10) working days.
6. f the application is denied, the DT-BS shall issue within three (3) working days from
the acceptance of the application, a letter stating the reasons for the denial.
SECTION V. Import Procedures - The BOC shall issue a separate Customs Adminis-
trative Order (CAO) to implement the procedure under this RR.
SECTION VI. Monitoring -
1. DT-BS shall conduct ocular inspection of the plants of the importers of TP, HR and/or
CR steel, at least once a year, or whenever necessary, for purposes of obtaining and/or
verifying information previously submitted to the DT-BS.
2. The DT- BS shall prepare and maintain a database of the following:
a. A current roster of accredited importers; and
b. A master list of issued and cancelled ATs
3. The importer or its import representative shall submit to DT-BS orderly and timely
reports.
a. On a per shipment basis, an importer or its import representative should
submit to DT-BS not later than five (5) working days after release of the imported
articles from BOC, an accomplished Shipment Report Form, together with the
a.1 Original AT issued to the applicant.
a.2 Copy of the mport Entry nternal Revenue Declaration (ERD)
a.3 Copy of Bill of Lading
a.4 Copy of Commercial nvoice
a.5 Copy of the Mill Certificate that contains information such as, but not
limited to:chemical composition and physical properties.
a.6 Copy of the Certificate of Origin
a.7 Copy of Conditional Release or mport Commodity Clearance (CC), as
may be applicable.
b. The importer or its import representative should submit to DT-BS within
fifteen (15) days after the end of each year, an accomplished and notarized
Annual Report Form. This Form shall provide information on the following:
b.1 On TP, HR and CR Steel -
b.1.1 Quantity purchased (imported and locally-sourced);
b.1.2 Actual quantity used in the manufacture of products and quantity of
generated scrap and waste materials and inferior goods; and
b.1.3 Quantity on hand, including those in the bonded warehouse (if any),
at the beginning and end of each year.
b.2 On Finished products -
b.2.1 Quantity of finished products manufactured from the imported articles
b.2.2 Quantity of finished products sold from the imported articles
b.3 On scraps and inferior goods
b.3.1 Quantity of scraps and inferior goods sold
b.3.2 Quantity of scraps and inferior goods stored
c. The DT may require more frequent reporting or other additional reports,
whenever necessary.
SECTION VII. Violations and Penalties
1. Grounds for Cancellation. The accreditation may be withdrawn for any of the following
grounds:
a. Diversion of steel materials to entities other than those stated in the application
for accreditation;
b. Re-use of a cancelled AT;
c. Misrepresentation of facts;
d. Falsification of documents;
e. Misclassification of steel products; and
f. Criminal acts and other acts of fraud
2. Grounds for suspension. The AT may be suspended for any of the following grounds:
a. Late or non-submission of reports; and
b. Failure to surrender AT on time
3. The acts constituting violations with their corresponding penalties shall be without preju-
dice to prosecution by the BOC under the Tariff and Customs Code and other penal laws.
4. mported steel products that are used not in accordance with this RR shall be sub-
jected to the payment of twice the taxes and duties that should have been paid on the
importation.
SECTION VIII. Withdrawal from Business; Cessation of Operations
1. An accredited importer who decides to withdraw from business or suspend its opera-
tions for six (6) months or more in the specific activity stated in the application for accredi-
tation shall submit a written notice of such intention to the DT-BS at least one (1) month
before the decision is implemented.
746
2. An importers accreditation shall be cancelled in the event of withdrawal from business
in the specific activity stated in the application for accreditation; or suspended in the event
of suspension of operations.
3. Upon cancellation or suspension of an importers accreditation, DT-BS shall immedi-
ately issue a formal notice to the importer copy furnished the BOC. Subsequently, all
privileges attached to it shall cease to be operative.
4. The importer shall submit to DT-BS within fifteen (15) days from the implementation of
the decision to withdraw from business or suspend its operations, notarized report provid-
ing information including but not limited to the following data for the period up to the date of
withdrawal from business or suspension of operations, from 01 January of the same year.
a. Actual Production Volume
b. Sales Volume and Value
c. TP, HR, and/or CR steel purchases (quantity & value), with breakdown as to
type of raw material (TP, HR and/or CR steel) and source as follows:
c.1 Locally sourced
c.2 mports
c.2.1 From Japan under the JPEPA Scheme
c.2.2 From Japan outside of the JPEPA Scheme
c.2.3 From other countries
d. Actual quantity of TP, HR, and/or CR steel used on the manufacture of products
e. Beginning and ending inventory of TP, HR and/or CR steel (quantity & value),
with breakdown as to type of raw material (TP, HR and/or CR steel) and source
as follows:
e.1 Locally sourced
e.2 mports
e.2.1 From Japan under the JPEPA Scheme
e.2.2 From Japan outside of the JPEPA Scheme
e.2.3 From other countries
f. Beginning and ending nventory of finished products, with breakdown as to
source of raw material as follows:
f.1 Locally sourced
f.2 mports
f.2.1 From Japan under the JPEPA Scheme
f.2.2 From Japan outside of the JPEPA Scheme
f.2.3 From other countries
5. Based on the foregoing information provided by the importer, DT-BS shall
determine inventory of TP, HR and/or CR steel imported under the JPEPA
Scheme, which remain unprocessed upon the implementation of the importers
decision to withdraw from business or suspend its operations. The DT-BS will
thereafter inform/notify BOC of such withdrawal from business or suspension of
operations as well as the inventory of TP, HR and/or CR steel imported under
the JPEPA Scheme so that appropriate import duty and taxes on subject inventory
are collected.
6. Upon receipt of copy of DTs notification of cancellation or suspension of the
importers accreditation, BOC shall take immediate action to ensure that all
items awaiting BOC processing under JPEPA scheme should be declassified
as such, with immediate effect, and that the appropriate import duty and taxes
are collected.
7. The importer may apply for the lifting of the suspension of accreditation,
upon resumption of its operations for at least three (3) months.
8. An importers accreditation shall be cancelled in the event of non-resumption
of operations within one year from date of suspension.
SECTION IX. Cancelled and Expired ATI
A. All cancelled ATs shall be considered null and void.
B. All ATs shall be deemed cancelled after they have been fully utilized. An expired and
unutilized AT will likewise be considered cancelled unless they were properly extended.
C. The importer or the import representative shall immediately surrender all cancelled and
expired ATs to the DT-BS.
D. DT-BS shall issue a formal notice to an importer or its import representative immedi-
ately when cancellation of an AT arises except in the case of full-utilization or expiration,
copy furnished the BOC.
SECTION X. Schedule of Fees
Filing Fee for Application for Accreditation P1,500
Filing Fee for Application for AT 1,500
Amendment/extension of AT 1,500
Certifications 1,500
Request for Reconsideration/Re-filing of Application 1,500
For late filing of reports
Basic Fine Daily Fine
1st violation P1,000 P50
2nd violation 5,000 100
3rd violation onwards 50,000 200
For late submission of cancelled or expired AT
748
Basic Fine Daily Fine
1st violation P1,000 P50
2nd violation 5,000 100
For other later filings or submission of other requirements not mentioned herein, but
otherwise required in connection with the accreditation of an importer or an import repre-
sentative under the Scheme, and for other violations of these rules, a reasonable fine shall
be imposed by the DT-BS.
SECTION XI. Review and Amendments - The DT-BS shall consult the industry and
other interested parties and inform the Government of Japan whenever the procedures for
administration of implementation of the TRQ under this mplementing Rules and Regula-
tions need to be amended.
SECTION XII. Effectivity - These mplementing Rules and Regulations shall take
effect immediately following its publication in a newspaper of general circulation.
(SGD.) PETER B. FAVLA
Secretary
--o0o--
JOINT DTI-DENR-DA-DOF-DOH-DILG-DOLE-DOTC
Administrative Order No. 01, s. 2009
The Adoption and Implementation of the Globally Harmonized
System of Classification and Labeling of Chemicals (GHS)
Whereas, the Philippines is a participating government during the United Nations Con-
ference on Environment and Development (UNCED) held in Rio de Janeiro, Brazil in June
1992;
Whereas, the Philippine Government adheres to the principles embodied in Agenda
21, which were adopted at the UNCED;
Whereas, Chapter 19, Program B of Agenda 21 mandates that a globally harmonized
hazard classification and compatible labeling system, including material data sheets and
easily understandable symbols, should be available, if feasible, by the year 2000;
Whereas, at the World Summit for Sustainable Development (WSSD) held in
Johannesburg, South Africa in September 2002, governments reaffirmed their commit-
ments and agreed on a 2008 implementation target for the GHS;
Whereas, at the 14th Asia-Pacific Economic Corporation (APEC) APEC Ministerial
Meeting held in Los Cabos, Mexico in October 2002 the APEC members where encour-
aged to work towards implementing the Globally Harmonized System on hazard classifi-
cation and labeling of chemicals and safety data sheets by 2006;
Whereas, the first version of the GHS was adopted in December 2002 by the UN Sub-
Committee on the Globally Harmonized System of Classification and Labelling of Chemi-
cals (UN SCEGHS), and endorsed by the UN Committee on the Transport of Dangerous
Goods and the Globally Harmonized System of Classification and Labeling of Chemicals
(UN CTDGGHS);
Whereas, at the 18th APEC Ministerial Meeting held in Hanoi, Vietnam in November
2006, the member economies were encouraged to continue their efforts to implement the
GHS with a view to having it fully implemented by the recommended target date of 2008;
Whereas, the identified sectors of the GHS implementation are: agriculture, industrial
workplace/production, transport and consumer products;
Whereas, based on the Situation and Gap Analysis conducted on the identified sec-
tors, there are already existing laws in the Philippines addressing the management of
chemicals, particularly on labeling;
Whereas, there is a need to revise the mplementing Rules and Regulations (RR) of
the concerned laws to implement the provisions of GHS;
Whereas, to ensure the involvement and commitment of concerned government agen-
cies in addressing these target sectors of the GHS implementation, a Joint Administrative
Order is hereby promulgated.
NOW, THEREFORE, this Order is hereby prescribed by the undersigned Departments
for the information, guidance and compliance of all concerned:
SECTION 1. Objective - The objective of this Joint Administrative Order is the adop-
tion and implementation of classification criteria, labeling and Safety Data Sheet (SDS)
requirements of the GHS.
SECTION 2. Definitions -
a. GHS is an acronym for Globally Harmonized System of Classification and Labeling of
Chemicals. The GHS is a system for standardizing and harmonizing the classification and
labeling of chemicals. t is a logical and comprehensive approach to
- Defining health, physical and environmental hazards of chemicals
- Creating classification processes that use available data on chemicals for
comparison with the defined hazard criteria; and
- Communicating hazard information, as well as protective measures, on labels
and Safety Data Sheets (SDS).
b. Harmonization refers to establishing a common and coherent basis for hazards classi-
fication and communication of chemicals, and the appropriate elements relevant to means
of transport, consumers, workers and environmental protection can be selected/chosen.
750
c. Label refers to an appropriate group of written, printed or graphic information elements
that are affixed to, printed on, or attached to the immediate container of a hazardous
product, or to the outside packaging of a hazardous product.
d. Hazards refer to the inherent characteristics of chemical substances and mixtures that
exist in the workplace and in the environment regardless of quantity that are potentially
dangerous or which have the capacity to harm, i.e., its capacity to interfere with normal
biological processes, and its capacity to burn, explode, corrode, etc.
e. Chemical substance means any organic or inorganic substance of a particular mo-
lecular identity including any element or uncombined chemical and any combination of
such substances, or any mixture of two and excluding radioactive materials.
f. Mixtures refer to combination of two or more chemical substances with no chemical
reaction taking place.
g. Toxic or hazardous substances refer to the chemical substances or mixtures that may
be harmful to the environment and/or to human health in a short-term and long-term basis
if it is inhaled, swallowed, or absorbed through the skin.
h. The Safety Data Sheet (SDS) is a document that provides important physical character-
istics, ecological, health, safety and toxicological information on chemical substances or
mixtures of ingredients used at the workplace, transported and may be utilized by the
consumer.
SECTION 3. Scope - This Joint Administrative Order sets out the duties and respon-
sibilities of the GHS implementing and coordinating government agencies in the adoption
of the classification criteria, labeling, and SDS requirements of the GHS (Please see
Annex A*).
The GHS adoption shall cover chemicals and mixtures. n the case of pesticides for
agriculture and other uses, due consideration shall be given to incorporating the GHS
principles, where appropriate into the FAO/WHO basic principles and guidelines which the
Fertilizer and Pesticide Authority (FPA) uses particularly with regard to toxicity and hazard
classification and other labeling requirements. n the transport sector, the GHS is imple-
mented through the United Nations Recommendations on the Transport of Dangerous
Goods (UNRTDG).
Pharmaceuticals, food additives, cosmetics, and pesticide residues in food shall not
be covered at the point of intentional intake, except at the workplace and during transport.
SECTION 4. Creation of a National GHS Implementing and Coordinating Committee -
A National GHS mplementing and Coordinating Committee shall be created which will be
headed by the Department of Trade and ndustry - Board of nvestments. The following
shall be the GHS implementing and coordinating government agencies:
a. Department of Agriculture (DA);
b. Department of Environment and Natural Resources (DENR);
c. Department of Finance (DOF);
d. Department of Health (DOH);
e. Department of nterior and Local Government (DLG);
f. Department of Labor and Employment (DOLE);
g. Department of Transportation and Communications (DOTC); and
h. Department of Trade and ndustry (DT).
SECTION 5. Duties and Responsibilities of the Implementing and Coordinating Com-
mittee - The National GHS mplementing and Coordinating Commiittee shall have the
following duties and responsibilities:
a. Oversee the development and formulation of the mplementing Rules and Regulations of
concerned agencies in adopting the GHS and its principles of application set out in Part 1
of the GHS Manual, which shows the GHS Pictograms and Hazard Classes (Annex B*)
and Safety Data Sheets Format and Guidelines (Annex C*).
b. Convene and attend inter-agency meetings and other related activities concerning GHS
development;
c. Coordinate, monitor and provide guidance on the implementation of the GHS.
SECTION 6. Repealing Clause - All other issuances inconsistent with this Joint Ad-
ministrative Order and all its annexes are hereby repealed or modified accordingly.
SECTION 7. Effectivity - This Joint Administrative Order shall take effect immediately
after 30 days from completion of publication in the Official Gazette or in a newspaper of
general circulation and registration with the UP Law Center.
(SGD.) PETER B. FAVLA (SGD.) JOSE L. ATENZA, JR.
Secretary Secretary
Department of Trade and Industry Department of Environment and
Natural Resources
(SGD.) ARTHUR C. YAP (SGD.) MARGARTO B. TEVES
Secretary Secretary
Department of Agriculture Department of Finance
(SGD.) FRANCSCO T. DUQUE (SGD.) RONALDO V. PUNO
Secretary Secretary
Department of Health Department of Interior and Local
Government
752
(SGD.) MARANTO D. ROQUE (SGD.) LEANDRO R. MENDOZA
Acting Secretary Secretary
Department of Labor and Employment Department of Transportation and
Communications
DEPARTMENT OF TRANSPORTATION AND COMMUNI-
CATIONS
Department Order No. 2009-11
Guidelines for Strict Adherence to the Rules on Due Process
Upon Failure by a PETC to Comply with the Rules on
Authorization as Laid Down by JAO No. 1 Embodied in
Department Order No. 2004-01, dated 24 November 2003
Rule 1
General Provisions
SECTION 1. Objective - To provide a Summary Procedure, consistent with the
basic principle of substantive due process, in addressing violation/s on Rules of Authorization
incurred by PETC in order to carry out the mandate of the Clean Air Act, Republic Act
8749.
SECTION 2. Coverage - These Rules shall cover violation on the Rules of Authorization
incurred by a PETC as contained in the Regional Monitoring Committee Report.
Rule 2
Procedure
SECTION 1. RMC Report - The Due Process Proper commences when the RMC
directly endorse its monitoring report, which finds a prima facie violation on the Rules of
Authorization by PETC, to the LTO Central Office Assistant Secretary who shall forward
the aforesaid report to the LTO Central Office PETC Monitoring Team.
SECTION 2. Validation by CO PETC Monitoring Team - The CO PETC Monitoring
Team examines the allegation and evidence of the RMC Report and if it finds a clear
showing of non-compliance or violation with the requirements of Authorization, the CO
PETC Monitoring Team shall undertake an ocular inspection where objects or tangible
things, sufficient to establish the alleged act or omission perpetrated by subject PETC,
may be exhibited to, examined or viewed by the Team.
During the ocular inspection, the registered PETC owner/operator or his duly autho-
rized representative shall be given ample opportunity to be heard and present his side to
clarify any material issue insofar as validation of the RCM Report is concerned.
After conducting a summary evaluation thereon without need of a formal hearing as
maybe warranted by factual issues, oral arguments and other evidences presented, the
Team Leader shall ask the PETC owner, operator or his duly authorized representative to
submit a verified explanation, with affidavits of witnesses and documentary evidence; if
necessary, within three (3) calendar days thereof on why no immediate sanction and/or
disciplinary actions be taken against him and that failing which, he shall be deemed to
have waived his right to present his side and the case shall be decided based on the
evidence on hand.
SECTION 3. Rendition of Resolution - A formal resolution of complaint rest upon the
findings of facts and strictly upon the evidence submitted by the parties so that within five
(5) days from receipt of the Aforementioned verified answer, the Chairman of the CO PETC
Monitoring Team shall convene the Team and through a Resolution, stating clearly and
distinctly the reasons therefore, stating the facts relied and signed by majority of the
members, recommend to the Assistant Secretary the imposition of the proper penalty or
liability as provided for by PETC rules and regulations as the situations so warrant.
SECTION 4. Action of the LTO Assistant Secretary - The Assistant Secretary may
adopt, modify or reject the resolution in whole or in part, or recommit it to the Team for
further instruction and for which reason, the Team shall act accordingly.
SECTION 5. Notice to the Parties - The parties shall be notified and be allowed three
(3) calendar days from receipt of the resolution within which to file a motion for reconsid-
eration which is non-extendible. After the expiration of the period therefore, the resolution
becomes final and executory.
SECTION 6. Appeal to the PETC National Executive Committee and DOTC Secretary
- f the Motion for Reconsideration is denied, the aggrieved party shall have three (3) calen-
dar days within which to file an Appeal to the PETC National Executive Committee whose
action thereon shall be appealable with the office of the DOTC Secretary. The decision of
the Secretary shall be final and executory. The grounds for appeal shall be limited to grave
abuse of discretion and serious errors in the finding of fact, which may cause grave or
irreparable injury to the aggrieved applicant.
SECTION 7. Repealing Clause - All orders, memoranda, circulars, rules and regula-
tions or parts thereof inconsistent with the provision of this Department Order are hereby
repealed or modified accordingly.
SECTION 8. Effectivity - This Department Order shall take effect after fifteen (15)
days following its publication in the Official Gazette or in any newspaper of general circu-
lation.
(SGD.) LEANDRO R. MENDOZA
Secretary
--o0o--
754
Department Circular No. 2009-06
Rules and Regulations on the Implementation of the Radio Frequency
Identification Tag for All Motor Vehicles Required to Be Registered Under
the Land Transportation and Traffic Code, as Amended
WHEREAS, the Department of Transportation and Communications (DOTC) and
the Land Transportation Office (LTO), are authorized under Republic Act No. 4136, as
amended, otherwise known as the Land Transportation and Traffic Code (the Code), to
issue rules and regulations governing the registration and re-registration of motor vehicles,
and make arrests for violations of the provisions of the Code, among other powers;
WHEREAS, the exclusive T Provider of the DOTC/LTO under the LTO T Project
BOO Agreement (the Project Proponent), presented to the DOTC/LTO its proposal for the
implementation of the Radio Frequency dentification (RFD) technology as an
enhancement of the LTO T Project and for the improvement of DOTC/LTOs general and
specific services (hereinafter the RFD Project);
WHEREAS, the RFD will further ensure better compliance with Republic Act No.
8749, otherwise known as the Clean Air Act of 1999, by providing a facility to ascertain
the actual physical appearance of every motor vehicle during emission testing;
WHEREAS, DOTC/LTO approves the implementation of the RFD Project as provided
herein;
NOW, THEREFORE, premises considered, this Department Circular (the Circular)
hereby promulgates the rules and regulations for the implementation of the RFD Project
as follows:
1.0 RFD PROJECT SCOPE
The RFD Project covers the following:
1.1. Enhancement of the LTO T Projects systems, particularly its Motor Vehicle
Registration System and Law Enforcement and Traffic Adjudication System, to
include RFD technology and/or the RFD tag.
1.2 ntegration of RFD technology and/or the RFD tag in the PETC System
under D.O. No. 2005-34 and 2005-37.
2.0 RFD TAGGNG OF MOTOR VEHCLES
2.1 All motor vehicles required to be registered under the Code shall have the
duly approved RFD tag attached or mounted to the specified location of its
windshield or body as a pre-requisite to its registration or re-registration.
2.2 The initial or one-time RFD tagging of all covered motor vehicles shall be
based on their existing renewal registration schedules and at the applicable
LTO District Offices, the commencement date of such RFD tagging to begin
on August 1, 2009. All new motor vehicles after said commencement date shall
likewise have an RFD tag attached or mounted to it prior to its registration.
2.3 LTO and the LTO T Project proponent are hereby directed to undertake the
completion of the development, roll-out and testing of the RFD Project, in time
for the said commencement RFD tagging date.
2.4 A one-time fee of Three Hundred Fifty Pesos (PhP350.00) shall be collected
as payment for the RFD tag initially shouldered by the LTO T Project proponent.
n the event that the RFD tag is subsequently damaged or destroyed, a new
RFD tag shall be attached or mounted upon payment for the said fee.
2.5 Any motor vehicle owner or registrant may opt for RFD tagging after August
1, 2009, but before its actual scheduled renewal registration deadline date.
However, after August 1, 2009, no motor vehicle shall be permitted registration
on its renewal registration deadline date without first having been tagged with
an RFD tag.
3.0 NTEGRATON OF THE RFD PROJECT WTH THE PETC SYSTEM
3.1 The PETC System shall also be enhanced to permit it to verify the actual
physical presence of a motor vehicle during emission testing.
3.2 The LTO and the LTO T project proponent, and/or the PETC T Providers or
PETCs, shall ensure the development, roll-out and testing of the integration of
the RFD Project into the PETC System in time for its implementation on January
1, 2010. n this regard, the PETC T Provider and/or the PETCs are directed to
contract or enter into the applicable agreement with the LTO T Project proponent
for the integration of the RFD Project with the PETC system.
3.3 No PETC or PETC T Provider shall be granted authorization or continuance
of its authorization or renewal of its authorization if its facilities and systems
are non-compliant with the requirements and standards of the RFD project.
4.0 MSCELLANEOUS PROVSONS
4.1 A motor vehicle that is deemed not duly registered as provided herein shall
be subject to the provisions of the Code, existing laws, rules and regulations.
4.2 Any related orders, issuances or parts thereof which are inconsistent with
the provisions of this Circular are hereby repealed or amended accordingly.
4.3 This Circular shall take effect fifteen (15) days after receipt of copies thereof
by the Office of the National Administrative Register (ONAR), U.P. Law Center,
Diliman, Quezon City, and publication thereof in two (2) newspapers of general
circulation in the Philippines.
For strict compliance.
756
Adopted: 6 May 2009
(SGD.) LEANDRO R. MENDOZA
Secretary
Resolution No. 08, S. 2009
Resolution Authorizing Commissioner Alejandro Z. Barin to Sign the
Order for and By Authority of the Commission Denying the Requests of
Electric Cooperatives (ECs) for the Exemption from the Payment of
Permit Fees Pursuant to Section 39 (A) of Presidential Decree No. 269
WHEREAS, on various dates, the Commission issued several Decisions approving
the capital expenditures projects of electric cooperatives (ECs);
WHEREAS, in the said Decisions, the ECs were directed, among others, to pay
appropriate permit fees within the period prescribed by the Commission;
WHEREAS, some ECs requested for the exemption from the payment of the
Commissions permit fees invoking to Section 39 (a) of Presidential Decree 269 (P.D. 269),
otherwise known as the National Electrification Decree;
WHEREAS, Section 39 (a) of P.D. 269 provides that:
Section 39. Assistance to Cooperative; Exemption from Taxes, mposts,
Duties, Fees; Assistance from the National Power Corporation. Pursuant to
the national policy declared in Section 2, the Congress hereby finds and declares
that the following assistance to cooperative is necessary and appropriate:
(a) Provided that it operates in conformity with the purposes and provisions
of this Decree, cooperative (1) shall be permanently exempt from paying income
taxes, and (2) for a period ending on December 31; of the thirtieth full
calendar year after the date of a cooperatives organization or conversion
hereunder, or until it shall become completely free of indebtedness
incurred by borrowing, whichever event first occurs, shall be exempt
from the payment (a) of all National Government, local government and
municipal taxes and fees, including franchise, filing, recordation, license
or permit fees or taxes and any fees, charges, or costs involved in any
court or administrative proceeding in which it may be a party, and (b) of
all duties or imposts on foreign goods acquired for its operations, the period of
such exemption for a new cooperative formed by consolidation, as provided for
in Section 29, to begin from as of the date of the beginning of such period for
the constituent consolidating cooperative which was most recently organized
or converted under this Decree: Provided, That the Board of Administrators
shall, after consultation with the Bureau of nternal Revenue, promulgate rules
and regulations for the proper implementation of the tax exemptions provided
for in this Decree.
WHEREAS, Pursuant to the provision afore-cited, the ECs exemption from the
payment of permit fees shall expire after the lapse of the thirty (30) year period or when
such EC shall have become completely free of indebtedness incurred by borrowing,
whichever event first occurs;
NOW, THEREFORE, be it RESOLVED, as the Commission hereby RESOLVES to
authorize Commissioner Alejandro Z. Barin to sign, for and by authority of the Commission,
the Orders denying the requests of electric cooperatives for exemption from the payment
of permit fees when the condition/s prescribed under Section 39 (a) of P.D. 269 so warrant.
This resolution shall take effect immediately.
(SGD.) ZENADA G. CRUZ-DUCUT
Chairperson
(SGD). RAUF A TAN (SGD.) ALEJANDRO Z. BARN
Commissioner Commissioner
(SGD.) MARA TERESA A.R. CASTANEDA (SGD.) JOSE C. REYES
-o0o-
Resolution No. 09, S. 2009
Resolution Adopting the Rules for the Calculation of the
Over or Under Recovery In the Implementation of
Transmission Rates by Distribution Utilities (DUs)
WHEREAS, Section 43(f) of Republic Act No. 9136, otherwise known as the
Electric Power ndustry Reform Act of 2001 (EPRA), and its mplementing Rules and
Regulations (RR), provide that the Energy Regulatory Commission (ERC) shall determine,
fix and approve, among others, the retail rates to be imposed by Distribution Utilities
(DUs) through an established and enforced methodologies;
WHEREAS, to facilitate the evaluation and resolution of all applications for refund
of over recoveries or collection of under recoveries, the Commission formulated a draft
Rules for the Calculation of the Over or Under Recovery in the mplementation of
Transmission Rates by Distribution Utilities (DUs), which was subjected to public
consultations on various dates;
758
WHEREAS, after a thorough evaluation of the comments and views submitted by
the participants, the Commission deems it necessary to formulate and adopt a set of
rules that would govern the calculation of the over or under recovery in the implementation
of transmission rates by DUs;
NOW, THEREFORE, be it RESOLVED, as the Commission hereby RESOLVES
to ADOPT the Rules for the Calculation of the Over or Under Recovery in the
mplementation of Transmission Rates by Distribution Utilities (DUs).
This Resolution shall take effect after fifteen (15) days following the completion of
its publication in a newspaper of general circulation in the Philippines.
Let copies of this Resolution be furnished the University of the Philippines Law
Center-Office of the National Administrative Register (UPLC-ONAR) and all Distribution
Utilities (DUs).
Chairperson
Attachment
Rules for the Calculation of the Over or Under Recovery in the
Implementation of Transmission Rates by Distribution Utilities
Pursuant to Section 43(f) of Republic Act No. 9136, otherwise known as the
Electric Power ndustry Reform Act of 2001 (EPRA), the Energy Regulatory Commission
(ERC) hereby adopts and promulgates these Rules to establish a process for the calculation
of the over or under recovery in the Transmission Rates by Distribution Utilities (DUs).
ARTICLE I
GENERAL PROVISIONS
1.1 Objectives
1.1.1 To ensure transparent and reasonable prices of electric power service in a regime
of free and fair competition and to achieve greater operational and economic
efficiency;
1.1.2 To ensure full recovery of the allowable cost of Transmission;
1.1.3 To protect the public interest as it is affected by the rates and services of DUs;
and
1.1.4 To ensure and maintain the quality, reliability, security and affordability of the
supply of electric power.
1.2 Scope
1.2.1 These Rules shall apply to all DUs that are connected to the Grid.
1.3 Definition of Terms
Act - unless otherwise stated, shall refer to Republic Act No. 9136, otherwise known as
the Electric Power ndustry Reform Act of 2001;
Distribution Utility - shall refer to any electric cooperative (EC), private corporation,
government-owned utility or existing local government unit which has an exclusive fran-
chise to operate a distribution system in accordance with the Act;
Energy Regulatory Commission or ERC - shall refer to the independent, quasi-judicial
regulatory agency created under Section 38 of the Act;
Net Transmission Cost- shall refer to the total charges of National Transmission Corpora-
tion (TRANSCO), or its buyer or concessionaire, including, but not limited to, transmis-
sion and sub-transmission costs, ancilliary service, connection service and power cost
delivery service net of any imbalance charges, cost associated with the availment of the
One-Day Power Sales (ODPS), and value added tax associated with the transmission
service. Net transmission costs shall include only those costs that are prudently incurred,
actually paid for, verifiable, reasonable, and are eligible for recovery in accordance with the
ERCs Rules and Regulations.
Transmission Rates - for the purpose of these Rules, shall refer to the charges associ-
ated with the transmission cost incurred by the DU which have been determined by the
ERC in the DUs Unbundling of Rates Application.
ARTICLE II
CALCULATION OF OVER OR UNDER RECOVERY IN TRANSMISSION
2.1 One-Time Determination
The transmission rates paid by the DUs prior to the effectivity of these Rules
were fixed annually for four (4) years which incorporated the removal of the intra-grid cross
subsidies of TRANSCO as provided in the approved unbundled rates of the DUs. The
Commission shall allow the one-time determination of the over or under recovery on the
DUs transmission charges from the time the DUs implemented their unbundled rates up
to the effectivity of the Guidelines for the Adjustment of the Transmission Rates by
Distribution Utilities (TRAM Guidelines).
2.2 Adjustment Formula
The calculation of the over or under recovery in the implementation of the
transmission rates to effect the refund or collect thereof from the time the DUs first
implemented their unbundled rates up to April 2006 or the month before the DUs were
760
able to implement new transmission rates in accordance with the TRAM Guidelines,
shall be based on the following formula per customer class:
Transmission = Total Over or Under Recovery
N
Over or
Under Recovery
N
YKWh Sales
Ni
(PhP/kWh) i = 1n
where:
Total Over or = Yi [(Allowable Transmission Cost
Ni
-
Under i=1n Transmission Recovery
Ni
)]
Recovery
N
(PhP)
Allowable
Transmission = Allowable Transmission Cost of Sales
Ni
Cost
Ni
Allowable = (Transmission Cost
i
NPFD x 50%)
Transmission
Cost of Sales
Ni
Total Purchased kWh
i
X Total kWh Sales
i
x CP
N
= refers to month 1, month 2 until month n, where month 1 refers
to the month the DU implemented its unbundled rates and
month n refers to the month prior to the implementation of the
TRAM Guidelines
N = refers to a specific customer class (ex. N=1,2,., where
1= Residential, 2= Commercial, etc.)
Transmission = (Transmission Charge in PhP/kWh x kWh Sales
Ni
) +
Recovery
Ni
(Transmission Charge in PhP/KW billing demand
Ni
)
Transmission = the actual net transmission cost in PhP for the month i
Cost
i
NPFD = Where:
Gross Power Factor Discount availed
by the DU from TransCo PhP XXX
Less: (1) Power Factor Discount
Granted by the DU XXX
(2) The amount paid by the DU
under a business agreement with a third
party for the improvement of its power factor* XXX

Net Power Factor Discount (NPFD) XXX
Multiplied by (Percentage share) 50%

NPFD to be passed on by the
DUs to its customers Php XXX

Note:* shall not exceed 50% of Gross PFD
Total Purchased = kWH purchases from all suppliers that correspond
kWh
i
to the kWh sales billed the transmission charge for
the month
i
less ODPS
Total KWh Sales
i
= Total kWh sales of the DU for the month i
CP
N
= Coincident Peak allocation factor for customer class N
as reflected in the last approved unbundled rates of the
DU
Transmission = Transmission charge in PhP/kWh and or PhP/kW as
Charge in applicable to customer class N and provided in the
PhP/kWh and Unbundling Decision of the DU. f the transmission
PhP/kW charge for customer N is expressed in PhP/kWh only,
then the Transmission Charge in PhP/kW in the formula
should be equal to zero (0)
KWh Sales
Ni
= Total kWh sales for customer class N for the month i
KW Sales
Ni
= Total kW billing demand for customer class N for the
month i
The calculation of the over or under recovery in the Transmission Rate per customer
class shall be expressed in PhP/kWh for customer billed on a per kWh basis or a
combination of per kWh and per kW and PhP/kW for customer billed on a per kW basis
in accordance with the formula provided in 2.3 hereof.
2.3 Billing of the Over or Under Recovery in Transmission Rates
Any over or under recovery as may be approved by the ERC shall be implemented
by the DU by incorporating the rate in the existing transmission rates component (in
PhP/kWh) of the DUs customer bills. However, if the existing transmission rate component
of a DU to its specific customer class is in PhP/kW, the calculated PhP/kWh can be
converted to PhP/kW using the following formula:
Calculated PhP/kWh
PhP/kW = ___________________________________________
1/[load factor x {(365 days/yr x 24 hrs/day)/12 mos/yr}]
ARTICLE III
FILING REQUIREMENTS
762
3.1 Filing
The filing for any over or under recovery in the implementation of Transmission Rates
shall be made in accordance with Section 1 of Article 6 of the Rules Governing the Automatic
Cost Adjustment and True-Up Mechanisms for Distribution Utilities.
3.2 Supporting Documents
The application referred to in 3.1 shall be accompanied by the following documents:
3.2.1 nvoices from TRANSCO;
3.2.2 Vouchers and Official receipts of payment of TRANSCOs invoices;
3.2.3 ERC Forms DU-M-01 and DU-M-02;
3.2.4 Monthly Financial and Statistical Report (MFSR) for ECs and M-001 and
M-002 for PUs (Prior to the effectivity of the above forms);
3.2.5 Summary of Monthly Purchased KWh from all suppliers that corresponds
to the monthly kWh sales billed the transmission charge by the DU; and
3.2.6 Other documents deemed relevant by the ERC.
3.3 Provisional Authority
Upon filing of the application, the ERC may, upon motion, issue a Provisional
Authority (PA) based on the allegations in the application, the supporting documents
attached thereto as well as the submission in compliance with the reportorial requirements
and on such comments or pleadings filed by any interested party within thirty (30) days
from receipt of a copy of the application by the local legislative body of the local government
unit where applicant principally operates or from the publication thereof, as the case may
be.
ARTICLE IV
MONITORING OF THE IMPLEMENTATION OF THE OVER OR UNDER RECOVERY
Upon evaluation and approval by the ERC of any over or under recovery in the
implementation of the transmission and corresponding system loss charges filed by the
DUs, the DUs shall be required to submit to the ERC, after six (6) months from their
implementation, and every six (6) months thereafter, a report on the status of their monthly
implementation of the approved rate and the corresponding balance of the over or under
recovery until such time that the total amount of the said over or under recovery shall have
been fully refunded or collected.
ARTICLE V
FINES AND PENALTIES
Violation of any provision of these Rules shall be subject to the imposition of
fines and penalties in accordance with the Guidelines to Govern the mposition of
Administrative Sanctions in the Form of Fines and Penalties Pursuant to Section 46 of
Republic Act No. 9136
ARTICLE VI
EXCEPTION
Where good cause appears, the ERC may allow an exception from any provision
of these Rules, if such exception is found to be in the public interest and is not contrary
to any law, rules and regulations.
ARTICLE VII
SEPARABILITY
f, for any reason, any part or section of these Rules is declared unconstitutional
or invalid, the other parts or sections hereof which are not affected thereby shall continue
to be in full force and effect.
ARTICLE VIII
EFFECTIVITY
These Rules shall take effect fifteen (15) days following its publication in a
newspaper of general circulation.
Chairperson
--o0o--
Resolution No. 10, s. 2009
A Resolution Lifting the Moratorium on the Filing of Rate Adjustment
Petitions/Applications by the Off-Grid Electric Cooperatives
WHEREAS, Section 25 of Republic Act No. 9136, otherwise known as the Electric
Power ndustry Reform Act of 2001 (EPRA) provides that the retail rates charged by
Distribution Utilities (DUs) for the supply of their electricity in their captive market shall be
subject to regulation by the Energy Regulatory Commission (ERC) based on the full
recovery of prudent and reasonable economic costs incurred, or such other principles
that will promote efficiency as may be determined by the ERC;
WHEREAS, Section 43 (f) of the EPRA and Section 4 Rule 3 of its mplementing
Rules and Regulations (RR) empower the ERC to establish and enforce, in the public
764
interest, a methodology for setting retail rates for the captive market of a DU. The ERC
may likewise adopt alternative forms of internationally-accepted rate-setting methodology
as it may deem appropriate;
WHEREAS, on April 21, 2008, the ERC adopted Resolution No. 7, Series of
2008 which imposed a moratorium on the filing of rate adjustment petitions/applications
by the Electric Cooperatives (ECs) in anticipation of the implementation of the new rate-
setting methodology for ECs or the so-called Benchmarking Methodology;
WHEREAS, the moratorium was imposed on all ECs, both on-grid and off-grid,
to prevent duplication of efforts, better manage time and resources and for the smooth
implementation of the said methodology;
WHEREAS, on April 20, 2009, the ERC resolved to subject the Draft Rules for
Setting the Electric Cooperatives Wheeling Rates (Draft Rules), which apply only to
the on-grid ECs, to Rule-Making proceedings under Rule 21 of the Commissions Rules
of Practice and Procedures;
WHEREAS, considering that the Benchmarking Methodology will apply only to
the on-grid ECs, it follows that only their rates will be adjusted using the said methodology
if the same is approved; thus, it becomes necessary to allow the off-grid ECs to file for
rate adjustment petitions/applications since the rationale for the issuance earlier of the
moratorium will not apply to them;
WHEREAS, there are clamors from the off-grid ECs to lift the moratorium on
them since they need an adjustment in their rates to enable them to operate viably and
deliver satisfactory service to their member-consumers;
NOW THEREFORE, the Commission, after thorough and due deliberation,
RESOLVED, as it hereby RESOLVES to LFT the moratorium on the filing of rate
adjustment petitions/applications by the off-grid ECs.
This Resolution shall take effect fifteen (15) days following its publication in a
newspaper of general circulation in the Philippines.
Let copies of this Resolution be furnished the University of the Philippines Law
Center-Office of the National Administrative Register (UPLC-ONAR) and all off-grid ECS.
Chairperson
(SGD.) MARA TERESA A.R. CASTAEDA (SGD.) JOSE C. REYES
-o0o-
A Resolution Adopting the Rules to Govern the Installation and
Relocation of Residential Electric Meters by Distribution Utilities
to Elevated Metering Centers Or Individual Residential Electric
Meter to Other Elevated Service
WHEREAS, Article 11 of the Magna Carta for Residential Electricity Consumers
allows electric meters to be located in other areas based on justifiable reasons;
WHEREAS, on January 21 & 23, 2009 and February 13, 2009, the Commission
conducted expository hearings and a public consultation, respectively for the promulgation
of a set of Rules to Govern the nstallation and Relocation of Residential Electric Meters
by Distribution Utilities to Elevated Metering Centers (EMCs) or ndividual Residential
Electric Meter to Other Elevated Service;
WHEREAS, the EMC Rules provide guidance to Distribution Utilities (DUs) in
the installation and relocation of electric meters to elevated metering centers or to other
elevated service in order to ensure their highest level of compliance with safety standards
and adequate protection of the consumers interests and accordingly reduce their system
losses;
WHEREAS, the said EMC Rules shall apply to all DUs whose metering
installations are over and above the height prescribed in the Magna Carta and the
Distribution Services and Open Access Rules (DSOAR);
NOW THEREFORE, the Commission, after thorough and due deliberation, hereby
APPROVES and ADOPTS the Rules to Govern the nstallation and Relocation of Residential
Electric Meters by Distribution Utilities to Elevated Metering Centers or ndividual Residential
Electric Meter to Other Elevated Service attached as Annex A and made integral part of
this Resolution.
This Resolution shall take effect on the fifteenth (15
th
) day following its publication in
a newspaper of general circulation in the country.
Chairperson
(SGD.) MARA TERESA A.R. CASTAEDA (SGD.) JOSE C. REYES
766
Attachment
Rules to Govern the Installation and Relocation of Residential Electric Meters
By Distribution Utilities to Elevated Metering Centers or Individual Residential
Electric Meter to Other Elevated Service
Pursuant to Article 11 of the Magna Carta for Residential Electricity Consumers
and Article 2.11.1 of the Distribution Services and Open Access Rules (DSOAR), the
Energy Regulatory Commission (ERC) hereby promulgates the following rules, terms and
conditions for the installation and relocation of residential electric meters by Distribution
Utilities to elevated metering centers or individual residential electric meter to other elevated
service.
ARTICLE 1
GENERAL PROVISIONS
1.1 Objective
The objective of these Rules is to provide guidance to Distribution Utilities (DUs)
in the installation and relocation of electric meters to elevated metering centers (EMCs)
or to other elevated service in order to ensure their highest level of compliance with safety
standards and adequate protection of the consumers interest and accordingly reduce
their system losses.
1.2 Guiding Principles
The DU shall ensure that the installation and relocation of residential electric
meters to the EMC or to other elevated service conform with Republic Act No. 9136, other
existing laws, rules, regulations and technical standards set by the ERC.
1.3 Scope
These Rules shall apply to all DUs whose metering installations are over and
above the height prescribed in the Magna Carta and the DSOAR and shall cover the
installation and relocation of residential electric meters to elevated metering centers or
individual residential electric meter to other elevated service as may be specifically provided
herein. Billing disputes resulting from the installation or relocation of the meter to EMC
services shall be governed by the ERC Rules of Practice and Procedure.
1.4 Definition of Terms
a. Act - Republic Act No. 9136, otherwise known as the Electric Power ndustry Reform
Act of 2001.
b. Billing Month - The elapsed time between two (2) succeeding meter readings, at least
twenty eight (28) days apart but not to exceed thirty one (31) days.
c. Distribution Utility (DU) - Any electric cooperative, private corporation, government-owned
utility or existing local government unit which has an exclusive franchise to operate a
distribution system in accordance with its franchise and the Act.
d. DSOAR - Distribution Services and Open Access Rules promulgated by the ERC under
Resolution No. 01, Series of 2006, as may be amended.
e. Elevated Metering Center (EMC) - the structure attached to DU poles or other structures
on which a cluster of meters is installed beyond the mounting height per Magna Carta
and DSOAR provisions.
f. EMC Service Drop - ncludes wires between the EMC installation and the customers
old metering point or to the point where the metering location would have been placed had
the customer not been in an EMC area.
g. Energy Regulatory Commission (ERC) - The independent and quasi-judicial regulatory
agency created under Section 38 of the Act.
h. Line Loss - The component that is inherent in the electrical equipment, devices and
conductors used in the physical delivery of electric energy. The term includes both load
and non-load losses.
i. Magna Carta - Magna Carta for Residential Electricity Consumers including the
Guidelines to mplement the Magna Carta issued by the ERC and any amendments
thereto.
j. Other Elevated Service - The structure other than the EMC attached to DU poles or
other structures on which a meter or cluster of meters are installed beyond the mounting
height per Magna Carta and DSOAR provisions.
k. Service Drop - The overhead service conductors from the last pole or other aerial support
including the splices, if any, connecting to the service entrance conductors at the building
or other structure (Philippine Electrical Code).
ARTICLE II
GENERAL CRITERIA
2.1 Magna Carta Requirement
Under Article 11 of the Magna Carta, meters, as a general rule, shall be located in clean
places free from vibration where they are easily accessible and visible for reading and
testing by both the DU and the consumer. Likewise, meters shall be located on the
outside wall of the building or private pole and shall not be more than three (3) meters nor
less than 1.52 meters mounting height from the surface on which one would stand to
repair, or inspect the meter. However, the Magna Carta also allows meters to be located
in other areas based on justifiable reasons.
2.2 Instances when elevated meters may be allowed
No meter shall be installed or relocated to elevated metering centers or other elevated
service, except under the following circumstances:
2.2.1 Non-availability of right-of-way
768
Right-of-way is required by the DU to enable its personnel to respond to
emergencies and complaints as well as to construct its distribution posts and
other power distribution equipments. The DU shall exert utmost effort in acquiring
such right-of-way. Prior to the elevation of the meters to EMC or other elevated
service, the DU shall write an explanation to the affected consumer as to its
inability to secure the necessary right-of-way.
2.2.2 Areas with informal settlers without title or rights over their occupied lands
resulting to rampant illegal service connection, meter vandalism, and meter
tampering.
2.2.3 Areas with high incidence of illegal service connections, meter vandalism,
and meter tampering
2.2.4 Habitual pilferer
A consumer twice found by the ERC or any other competent court, upon proof
presented by the DU, to have illegally consumed electricity.
2.2.5 Consumer requests
Written requests from legitimate DU consumers or from new electric service
applicants for the elevation of services to metering centers because of frequent
pilferage-related power interruptions, shall also be given due consideration.
Provided, that said consumers represent at least fifty (50) percent or at least
thirty (30) consumers, whichever is higher, of the registered households in the
area whose meters are proposed to be relocated, duly certified by the Barangay
Chairman or by the Office of the City/Municipal Mayor concerned.
2.3 The DU shall prove before the ERC that an area has high incidence of illegal service
connections, meter vandalism, and meter tampering or an area with rampant electricity
theft by submitting a system loss report attributing such condition/s, prior to the relocation
or installation of meter to EMC or other elevated service. The ERC shall act upon such
application for approval, within fifteen (15) days from receipt of the system loss report.
The DUs application shall be deemed approved in case of failure of the ERC to act on
said application after the lapse of the 15- day period. An area is considered a pilferage-
prone area if the difference between the average 3-month kilowatthour registration in the
check meter or other load monitoring device and the average 3-month total registered
kilowatthour consumptions of the consumers in the area exceeds the allowable system
loss cap of a DU.
ARTICLE III
REQUIREMENTS AND PROCEDURES
3.1 Cost of installations or relocations
The cost of installations and relocations shall be borne as follows:
3.1.1 For existing consumers whose meters are to be relocated to EMC
installations or for existing individual consumer whose meter is to be relocated
to other elevated service, the DU shall shoulder the cost of relocation including
the costs of service drop wires and all necessary protective accessories coming
from the EMC frames down to the old metering point or to the point where the
metering location would have been placed had the consumer not been in an
EMC area;
3.1.2 For relocation falling under Article 2.2.5 hereof, the DU and the consumer
shall equitably bear the costs, based on the market value at the time of purchase,
of the service drop wires and all necessary protective accessories coming from
the EMC frames down to the point where the metering location would have
been placed had the consumer not requested for the elevation thereof. However,
the DU may opt to bear all the costs.
The consumer shall have the right to select his/her material and accessory
vendor, provided that such material and accessory adhere to the applicable
minimum technical standards. For purposes of commencing the procurement
of the service drop wires and all necessary protective accessories, the consumer
shall present a procurement invoice to the DU indicating the amount of said
material and accessories. However, the consumer may opt to advance the
costs of the service drop wires and all necessary protective accessories, subject
to immediate refund by the DU of its equitable share thereof upon presentation
of proof of purchase.
3.1.4 For new consumers applying for service connections in areas served
through EMCs, the DU shall shoulder the cost of the service drop wires from
the EMC down to the point where the metering location would have been placed
had the consumer not been in an EMC area. t is understood that these new
consumers have complied with the requirements for new electric service
connection.
3.1.5 For a new consumer whose meter is to be installed in an elevated service,
the DU shall shoulder the cost of the service drop wires and all necessary
protective accessories from the meter down to the point where the metering
location would have been placed had the consumer not fallen in any of the
acceptable circumstances enumerated in Article hereof.
3.1.6 No other charges shall be required by the DU for new consumers applying
for service connections in areas served through EMCs or for a new consumer
whose meter is to be installed to an elevated service, other than those approved
by the ERC.
3.2 Operating procedures
3.2.1 Unless duly approved by the Commission, the length of the service drop
wires shall not be more than one hundred thirty (130) meters from the EMC or
other elevated service to the point where the metering location would have been
placed had the consumer not been in an EMC area or in other elevated service.
3.2.2 The DU shall maintain the usefulness including the replacement of the
service drop wires from the EMC or other elevated service down to the point
770
where the metering location would have been placed had the consumer not
been in an EMC area or in other elevated service.
3.2.3 The DU shall conduct regular inspection of the service drop wires in all
areas served through EMCs or other elevated service. The DU shall immediately
remove any wiring connection found tapped on the service drop wire without the
consent by the consumer concerned. f, by reason of such unauthorized
connection, it resulted to drastic increase in consumers kilowatthour
consumption, the difference in the average kilowatthour consumption of such
consumer for the past six (6) months prior to the discovery shall be borne by
the DU.
3.2.4 The DU shall not install more than thirty (30) electric meters per EMC
frame and not more than ten (10) service drop wires per bundle, if any.
3.2.5 The DU shall, at all times, allow its consumer or authorized representative
to witness meter reading and testing. Metering information should be made
available to the consumer.
3.2.6 Before clustering or actual elevation of the meter/s, the DU must conduct
an information campaign/forum in the affected area, or show proof, in case of
individual consumer, on why there is a need to cluster or elevate the meter/s
and the procedures to be adopted in implementing the same.
3.2.7 The DU shall conduct meter readings once every billing month and shall,
within two (2) days from such reading, report to the consumer and investigate
any abrupt change in kilowatthour consumption by a consumer. For all intents
and purposes, abrupt change in kilowatthour consumption means an increase
by one hundred percent (100%) or decrease by fifty percent (50%) of
consumption based on the average 12-month consumption immediately
preceding the billing month in question.
3.2.8 Consumers in other elevated service shall witness the meter readings, or
in the absence of such consumers, their appointed representatives shall serve
as the default witness to such meter readings.
3.2.9 Consumers in EMC areas shall designate a representative/s, or at least
two (2) common representatives per EMC frame, who shall witness the meter
readings. n the absence of such representative/s, the Barangay Chairman or
his/her appointed constituent shall serve as the default witness to such meter
readings.
3.2.10 The consumer/s representative/s, or the Barangay Chairman or his/
her authorized representative must be duly informed of the conduct of the meter
reading on a designated date and time period at least two (2) days prior to the
scheduled reading date. The consumers representatives or the Barangay
Chairman or his/her authorized representative shall be informed of the scheduled
reading date and time period and any date thereafter, in case of changes in
schedule. The DU may proceed with the conduct of meter reading/s on the
scheduled date and time in the event the consumer, consumers representative/
s, the Barangay Chairman, or his/her appointed constituent fails to appear,
without justifiable reason, at the scheduled reading date and time.
3.2.11 n reading the meters, the DU shall use either basket trucks to hoist
the meter readers and the consumer/s representative or use high-resolution
digital still or video cameras with zoom-in capabilities to capture the images of
the meter/s showing distinctly the registration/s of the said meter/s.
3.2.12 f high resolution cameras are used, pictures of the meter showing
the registration taken shall be kept by the DU for at least three (3) months after
the reading date. n cases where the consumer questions the correctness of
the readings, the DU shall allow the concerned consumer access to the meter-
reading picture in question.
3.2.13 DUs shall issue meter reading cards that will be filled-up monthly
by the meter readers with the previous and present months readings for each
meter located at the affected EMC or other elevated service, except when the
statement of account for that billing period is issued within two (2) days from
such reading date.
3.2.14 For consumers ready reference, the DU shall furnish the Barangay
Chairman concerned, within two (2) days from such reading date, the pictures
of the meters showing distinctly the registration taken during the reading of the
meters on all consumers in EMC area, unless expressly waived by the consumer
concerned.
3.2.15 The DU shall process requests involving relocation or new connection
to an EMC service in a timely manner and shall not give preference or
discriminate existing consumers or connection applicants based on the distance
between the EMC service and the consumers or applicants premises.
ARTICLE IV
TECHNICAL STANDARD
4.1 Minimum technical standards
DUs shall conform with the applicable minimum technical standards set by laws,
rules and regulations including the Philippine Electrical Code.
4.1.1 DUs shall ensure that the consumers utilization voltage is within the variations
set under Chapter 3.2.3.2 and Chapter 3.2.3.3 of the Philippine Distribution Code.
4.1.2 The DU shall ensure that the service drop wires shall have an adequate capacity
for the load contracted by the consumer pursuant to the minimum standard set under
Article 2.30.2.3(b) of the Philippine Electrical Code and are well insulated for wear and
tear endurance.
4.1.3 Sagging of service drop wire/s shall not be greater than that allowed by the DSOAR
and that clearance requirements set by the Philippine Electrical Code shall not be violated
4.1.4 DUs shall bear the cost in correcting errors in connecting the service drop wires
from the meter in the EMC to the premises of another consumer other than the registered
consumer. The DU shall immediately correct the billing statement of the affected consumer
and the same shall be reflected in the next immediate billing statement.
772
4.1.5 The DU shall ensure that the technical capability of the EMC supporting structure
follows good engineering design according to acceptable standards.
ARTICLE V
VIOLATION
Violation of any provision of these Rules shall be subject to penalty which the Commission,
after giving the DU the opportunity to be heard, may impose in accordance with law.
ARTICLE VI
TRANSITORY PROVISION
6.1 Refund. For existing consumers whose meters are already relocated to EMC installa-
tions but who bore the expenses in acquiring service drop wires, including all necessary
protective accessories, said consumers shall file, not later than three (3) months from the
effectivity of these Rules, an application for refund of the costs of such drop wires and all
necessary protective accessories, upon presentation of a valid proof of purchase. The
amount to be refunded shall be based on the actual amount reflected in the Official Re-
ceipt.
6.2 Separability Clause. f, for any reason, any provision of these Rules is declared
unconstitutional or contrary to law, the other parts or provisions hereof which are not af-
fected thereby shall continue to be in full force and effect.
6.3 Repealing Clause. Provisions of the Magna Carta, rules, regulations guidelines and
other issuances not expressly revised by these Rules shall remain in force and effect.
6.4 Effectivity. These Rules shall apply prospectively and shall take effect on the fifteenth
(15
th
) day following its publication in a newspaper of general circulation in the country.
Chairperson
(SGD). RAUF A. TAN (SGD.) ALEJANDRO Z. BARN
--o0o--
A Resolution Amending Resolution No, 16, Series of 2008
WHEREAS, the Commission issued Resolution No. 16, Series of 2008 entitled
A Resolution Adopting Policies to Govern the Transition Supply Contracts Which Have
Been Assigned and Transferred to National Power Corporation Successor Generating
Companies promulgated on 15 January 2009 and became effective on 31 January 2009;
WHEREAS, on 22 January 2009, Masinloc Power Partners Ltd., nc. filed a Petition
to nitiate Rule-making, docketed as ERC Case No, 2009-002RM, praying for the
amendment of Resolution No. 16, Series of 2008, specifically, on the policy on the Mandated
Rate Reduction (MRR) under Section 10 thereof;
WHEREAS, a public consultation attended by concerned stakeholders was conducted
to address such issue on the MRR;
WHEREAS, after considering the arguments and submissions of the parties, the
Commission rendered a Decision in ERC Case No. 2009-002RM partially granting the
Petition;
NOW THEREFORE, the Commission, after thorough and due deliberation,
RESOLVED, as it hereby RESOLVES to AMEND Section 10 of Resolution No. 16, Series
of 2008, to read, as follows:
10. Section 72 of the EPIRA on the Mandated Rate Reduction
(MRR) shall continue to be implemented. The NPC successor
generating companies shall implement the same subject to
the execution of a written instrument between NPC and/or
PSALM and the concerned NPC successor generating
company specifically containing the assumption by the latter
of such obligation. In the absence of such specific written
instrument, the rights of the residential end-users shall not be
impaired and NPC and/or PSALM shall bear the cost of the
rate reductions implemented by the NPC successor generating
company. Thus, residential end-users of the affected DUs
shall continue to enjoy the rate reduction of thirty centavos
per kilowatthour (PhP0.30/KWh) and the implementation of
the same shall terminate upon the expiration of the term of
the assigned and transferred TSCs. If, after the expiration of
the TSCs term, the NPC successor generating company shall
continue to supply the requirements of the affected DU under
an extension as allowed by the ERC, the obligation to provide
the MRR shall cease, unless otherwise stipulated upon by the
NPC successor generating company and the affected DU, in
which case the cost of implementing the MRR shall be borne
by the NPC successor generating company.
This amendment shall take effect immediately.
Let copies of this Resolution be furnished the University of the Philippines Law Center-
Office of the National Administrative Register (UPLC-ONAR) and published in a newspaper
of general circulation in the country.
774
Chairperson
-o0o-
Dated Filed: 26 June 2009
A Resolution Adopting the Rules and Procedures for the Test
and Maintenance of Electric Meters of Distribution Utilities
WHEREAS, Section 16 (d), (e), (f) and (g) of Commonwealth Act No. 146 (CA 146)
gives the Commission the power, upon proper notice and hearing, to fix just and reasonable
standards, classifications, regulations, practices, measurements, or service to be furnished,
imposed, observed and followed by any public service; to establish reasonable rules and
regulations, instructions, specifications, and standards, to secure the accuracy of all meters
and appliances for measurements; and to compel any public service to furnish safe,
adequate, and proper service as regards the manner of furnishing the same as well as the
maintenance of the necessary material and equipment;
WHEREAS, Section 17 (d) of CA 146 empowers the Commission to provide, on
motion by or at the request of any consumer or user of a public service, for the examination
and test of any appliance used for the measuring of any product or service of a public
service;
WHEREAS, Commonwealth Act No. 349 (CA 349) created a meter laboratory that
has the duty of inspecting, examining and approving periodically all meters and appliances
for measurements used by all public services under the jurisdiction of the Commission to
ensure their accuracy;
WHEREAS, the Energy Regulatory Commission (ERC) proposed a set of Rules and
Procedures for the Test and Maintenance of Electric Meters of Distribution Utilities;
WHEREAS, the said Rules and Procedures shall provide guidance to Distribution
Utilities (DUs) in the testing and maintenance of electric meters in order to ensure the
highest level of confidence of the consumers on the accuracy of the DUs billing meters;
WHEREAS, the said Rules and Procedures were posted n the ERC website and
published in a newspaper of general circulation to solicit comments from interested
stakeholders;
WHEREAS, expository hearing were conducted in Cebu City on January 21, 2009
and in Manila on January 23, 2009. A public consultation was also held in Manila on
February 13, 2009;
WHEREAS, the revised Rules and Procedures incorporating the comments of the
stakeholders were again posted on the ERC website on April 20, 2009.
WHEREAS, the Rules and Procedures were again revised to consider the comments
submitted during its second posting;
NOW THEREFORE, after careful deliberation on the issues relative thereto, the ERC
RESOLVED, as it hereby RESOLVES, to APPROVE and ADOPT the Rules and
Procedures for the Test and Maintenance of Electric Meters of Distribution Utilities, herein
attached as Annex A* and made an integral part of this Resolution.
All previous Rules, Regulations and ssuances by the Commission contrary to the
instant Resolution are deemed superseded.
This Resolution shall take effect on the fifteenth (15
th
) day following its publication in
a newspaper of general circulation in the country.
Let copies of this Resolution be furnished the University of the Philippines Law Center-
Office of the National Administrative Register (UPLC-ONAR) and all entities engaged in the
electricity metering.
Chairperson
GOVERNMENT SERVICE INSURANCE SYSTEM
Resolution No. 204
Grant of the 2008 Christmas Cash Gift
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Resolved, to APPROVE and CONFIRM the grant of the 2008 Christmas Cash
Gift, equivalent to one-month current pension, to all Regular Old-Age/Retirement/Disability
Pensioner, subject to the following guidelines:
1. Amount of Cash Gift
- For pensioners whose 2007 Christmas Cash Gift is above P10,000.00, they
shall be granted an amount equivalent to one month current pension up to
maximum of P12,600.00;
- For Pensioners whose 2007 Christmas Cash Gift is P10,000 and below,
they shall be granted an amount equivalent to one-month current pension up to
a maximum of P10,000; and
- For Pensioners who resumed their regular monthly pension after December
15, 2007 (after 5-year guaranteed period), they shall be granted an amount
equivalent to one-month current pension up to maximum of P10,000.00.
2. Entitlement
2.1 Entitled to the Christmas Cash Gift are the following pensioners under R.A. 8291, P.D.
1146 and R.A. 660 who are receiving their regular monthly pensions and are still qualified
to their corresponding pensions and living as of December 15, 2008:
2.1.1 Old-age/Retirement Pensioners, including Joint-Life retirees; and
2.1.2 Disability Pensioners.
2.2 Not entitled are:
2.2.1 Basic Survivorship Pensioners, Dependent Pensioners and Joint Life
Beneficiaries;
2.2.2 Retirees who received in advance their guaranteed pensions in the form
of lump sums, who are still within the guaranteed period and who shall be
resuming their regular monthly pensions after December 15, 2008;
2.2.3 New retirees in 2006 to 2008. They shall only be entitled to the Christmas
Cash Gift after five (5) years from their retirement date;
2.2.4 Separated members who separated from the service in 2006 to 2008
before reaching age 60 and who started their regular monthly pension in 2006,
2007 and 2008. They shall only be entitled to the Christmas Cash Gift if they
have been regular pensioners for at least five (5) years; and
2.2.5 Pensioners under R.A. 7699 (Portability Law) who are receiving their
regular prorata pension, including those who are receiving pro-rata pension as
a result of the Premium Based Policy.
RESOLVED FURTHER, to AUTHORIZE / APPROPRIATE the amount of P1.178
Billion necessary for the purpose, chargeable against proper Funds.
RESOLVED FNALLY, to DIRECT the Executive Vice President (Corporate Support
Sector)/ the Vice President (Public Relations and Communications Office) to conduct an
information dissemination on the Systems grant of the 2008 Christmas Cash Gift to
pensioners and to the general public.
Adopted: 17 Dec. 2008 (Board Meeting No. 23)
-o0o-
Resolution No. 206
Annual Cash Dividend for 2008
RESOLVED, to APPROVE and CONFIRM the recommendation that the amount
of P950 Million be distributed as Annual Cash Dividends for 2008 to the Compulsory Life
nsurance Policyholders, in accordance with the following guidelines:
1. Entitlement
All active members including the members of the Judiciary and Constitutional
Offices whose life insurance coverages have been in force for at least one year as of
December 31, 2007 and are still active as of declaration date shall be entitled to cash
dividends in accordance with the following:
1.1.1 Active members issued with Life Endowment Policy (LEP) or with new or
converted Enhanced Life Policy (ELP) shall be entitled to cash dividends provided
their policies have been in force for at least one (1) year as of December 31,
2007.
1.1.2 Active members whose LEP matured after December 31, 2007 and who
were issued a renewal Policy under the Enhanced Life Policy shall be entitled
to cash dividends based on their LEP.
1.1.3 Active members who opted to convert their LEP into ELP after December
31, 2007 shall also be entitled to cash dividends based on their LEP.
2. Not Entitled
2.1.1 Active members who have defaulted in their consoloan and salary loans
for at least twelve (12) months and/or have unpaid premiums for at least twelve
(12) months, as of declaration date.
2.1.2 Lapsed policies in calendar year 2007 up to the APL run as of declaration
date.
2.1.3 Terminated policies due to retirement, maturity and separation in calendar
year 2007 as of declaration date.
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3. The estimated total cash dividends outlay of P950 Million shall be charged against the
surplus of the Social nsurance Fund.
4. The dividends shall be paid through the GSS E-Card.
5. Operational Guidelines
5.1 The nformation Technology Services Group (TSG) shall:
5.1.1 Undertake the phasing of payments in coordination with the Operations
Sector and the Treasury Office
5.1.2 Generate the listing of policies which are not entitled to the 2008 cash
dividends for the guidance of the operating units categorized as follows:
- Lapsed policies
- Terminated policies in 2007 due to retirement, maturity and separation
- Policies of active members who have defaulted in their consoloan and
salary loans for at least twelve (12) months and/or have unpaid premiums for at
least twelve (12) months
5.1.3 Generate listing of all policies with APL indicating the corresponding
amount of APL
6. For the guidance of the TSG, the formulas to be used in the computation of the 2008
compulsory life insurance cash dividends are presented in Annex 1, which is hereto
attached and made an integral part of this Resolution by reference.
RESOLVED FNALLY, to DIRECT the Executive Vice President (Corporate Support
Sector)/ the Vice President (Public Relations and Communications Office) to conduct an
information dissemination on the Systems grant of the 2008 Cash Dividends to include
the increase in the benefit for 2008 compared to previous years.
Annex 1
Formulas for Cash Dividends Distribution
Let
tVx = t
th
year terminal reserve
Fx = cash dividend factor for age x per P1,000 amount of insurance
q x+ t-1 = mortality rate at age x + t -1
qx+t-1
*(1,000-tV
x
) = cost of insurance for the year
tTVx = t
th
termination value as of Dec. 31, 2007
APL = Total automatic premium loan as of Dec. 31, 2007
1.1 For Pure Endowment
Fx = .0165* tVx -.0165 *APL
1.2 For nsurance Plans Other Than Term and Pure Endowment (including LEP converted
to ELP after December 31, 2007)
Fx = .0165 * tVx + 0.478 * q X + t -2 * (1,000 tVx) .0165 * APL
1.3 For Enhanced Life Policies (including LEP converted to ELP as of December 31,
2007)
Fx = 0.0165 * tTVx .0165 * APL
USNG:
A. For Life nsurance of Justices
Hunters Mortality Table at 4% for Endowment, Limited Payment and Whole Life
nsurance regardless of date of issue and for Double Endowment issued up to April, 1963.
B. For compulsory/membership life insurance of all other members
Issued Prior to June 1, 1977
- same as A above
ssued on or after June 1, 1977
- 1958 CSO at 4% for all plans
Adopted: 17 Dec. 2008 (Board Meeting No. 23)
-o0o-
Resolution No. 55
Policies/Terms and Condition of the GSIS Housing
Loan Restructuring and Condonation Program
RESOLVED, pursuant to the mplementing Rules and Regulations of R.A. 9507
(The Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 2008),
to ADOPT the policies/terms and conditions of the GSS Housing Loan Restructuring and
Condonation Program, as recommended by Management in compliance with the law.
All existing guidelines inconsistent with these policies/terms and conditions are
hereby deemed revoked or amended accordingly.
780
RESOLVED FURTHER, to DIRECT the Corporate Services Officer V (Corporate
Planning Office), in coordination with the Vice President (Marketing and Housing-NCR) to
formulate/ issue the necessary Policy and Procedural Guidelines (PPG) for the aforesaid
policies/terms and conditions of the GSS Housing Loan Restructuring and Condonation
Program, for immediate implementation.
RESOLVED FNALLY, to DIRECT the Vice President (Public Relations and
Communications Office), in coordination with the Vice President (Marketing and Housing-
NCR), to conduct the proper information dissemination regarding the aforesaid policies/
terms and conditions of the GSS Housing Loan Restructuring and Condonation Program.
Adopted: 18 March 2009 (Board Meeting No. 6)
-o0o-
Resolution No. 64
Single Interest Rate for the GSIS New DCS Housing Loan Program
RESOLVED, that by majority vote, to APPROVE the recommendation of the
Senior Vice President (Housing and nsurance Group) to adopt a single interest rate of
EGHT PERCENT (8%) per annum compounded annually, for the GSS New DCS Housing
Loan Program (approved under Board Resolution No. 69 dated April 23, 2008).
This new policy shall take effect upon Board approval.
RESOLVED FNALLY, to DIRECT the Vice President (Public Relations and
Communications Office), in coordination with the Senior Vice President (Housing and
nsurance Group), to conduct the proper information dissemination regarding the aforesaid
adoption of a single rate of eight percent (8%) per annum compounded annually, for the
GSS New DCS Housing Loan Program.
Adopted: 01 April 2009 (Board Meeting No. 7)
HDMF Circular No. 263
Penalty Condonation for Delinquent Employers
To encourage delinquent employers to register with the Fund and/or collect and remit
the mandated membership contribution and employer counterpart, the following guidelines
are hereby issued:
1. Coverage
1.1 These guidelines shall cover the following:
1.1.1 All unregistered employers, provided they register with the Fund on
or before the last working day prior to December 31, 2009;
1.1.2 Employers whose applications for waiver from Fund coverage have
been denied but who have failed or continued to refuse registration with the
Fund; and
1.1.3 Employers duly registered with the Fund but did not collect
contributions from their respective employees and did not remit employer
counterpart.
1.2 Limitation of Coverage
1.2.1 These guidelines shall not include employers who collected
membership contributions and/or STL amortization payments from their
respective employees but failed to remit the same to the Fund.
They shall be required to pay all unremitted membership contributions,
including the employer counterpart, as well as corresponding penalty charges,
from the time the employees should have been covered by the Fund.
Employers shall also pay all STL amortization payments deducted from
their employees but were not remitted. The penalties incurred by the employees
due to non-remittance shall be charged to the employer and shall be credited
to the members TAV thereafter.
1.2.2 f said employers cannot immediately pay the entire amount due,
payments may be made at a plan of payment acceptable to the Fund.
1.2.3 n the event that said employers have coverable employees from
whom they did not collect membership contributions, they may apply for penalty
condonation under these guidelines for those particular employees who are
still under their employ.
1.2.4 n cases where the employer failed or refused to comply within
thirty (30) days from demand, they shall be criminally prosecuted in accordance
with the penal provisions of PD 1752, as amended.
2. Applications for Penalty Condonation
2.1 Eligible employers shall be required to submit a letter signifying their
request for penalty condonation. The following shall be considered as grounds
for granting penalty condonation to delinquent employers:
2.1.1 Financial difficulty to meet his statutory obligation under PD 1752,
as amended. Financial difficulty means that the remittance of the required
contributions shall affect the business operations of the company;
782
2.1.2 Failure of his concerned official to register the covered employees
and/or remit the required contributions pursuant to PD 1752, as amended and
such failure has not been brought to the knowledge of the higher management;
2.1.3 Coverage under PD 1752, as amended has been unsuccessfully
contested in court;
2.1.4 Other grounds/reasons acceptable to the Board of Trustees.
2.2 The deadline of filing application for penalty condonation shall be on the last
working day before December 31, 2009.
3. Penalty Condonation
3.1 Eligible employers shall be required to remit all unremitted employer
contributions from the time their current employees should have been covered
by the Fund up to the point of approval of application. n addition, they shall be
required to collect and remit to the Fund employee and employer contributions
due for the current remittance period.
3.1.1 All penalty charges incurred by the employer from the first month of
delinquency up to point of approval of application shall be condoned, provided
said employer remit his/her total obligations due within thirty (30) days from
approval of application.
3.1.2 n the event that the employer is financially incapable of remitting
the required contributions in full, the employer may submit a plan of payment
subject to the approval of the Fund within seven (7) calendar days from approval
of application, provided that:
3.1.2.1 The period of settlement shall not exceed twenty four (24)
months. The penalties to be condoned shall be proportional to the downpayments
made by the employer pursuant to his/her approved plan of payment. The
remaining balance, composed of the balance arrearages and the uncondoned
penalties, shall earn an interest of one percent (1%) per month.
3.1.2.2 The employer shall issue the corresponding number of PDCs
to cover the approved plan of payment.
3.1.2.3 Payments shall commence exactly one month from date of
approval of application for penalty condonation.
3.1.3 An employer who signified intent to pay in full but failed to do so
within thirty (30) calendar days from approval of application shall be given another
seven (7) calendar days to submit a plan of payment acceptable to the Fund.
3.2 Any violation of the approved plan of payment, either by defaulting or
short-remitting what is required, shall result in the restoration of penalties
previously condoned and filing of appropriate civil and/or criminal actions against
the delinquent employer. n addition, should the employer fail to collect and/or
remit the employee and employer contributions due for the current period, the
same shall be charged a three percent (3%) penalty for every month of delay.
4. Pag-BG Fund operating units shall submit monthly reports on penalties
condoned to the Senior Vice President for Provident Operations. The SVP-
Provident Operations shall endorse the consolidated report to the Board of
Trustees.
5. Due to non-compliance to these guidelines, the following shall continue to
incur penalties on their unremitted contributions and shall be held criminally
liable and prosecuted in accordance with the penal provisions of PD 1752, as
amended:
5.1 Employers who shall fail to register with the Fund before December 31,
2009;
5.2 Employers who shall fail to submit a plan of payment within seven (7)
calendar days from approval of application;
5.3 Employers who signified to pay in full but failed to do so and after which
failed to submit a plan of payment within seven (7) calendar days;
5.4 Employers who shall continue to refuse to collect and/or remit membership
contributions and employer counterpart;
6. The effectivity of the membership of an employee registered by the delinquent
employer shall be based on the date of the said employees initial PFR. However,
for members with previous deductions but were not remitted, their membership
shall commence on the date the actual remittance should have been made.
7. Amendments
These guidelines may be amended, revised or modified by the Pag-BG Fund
Senior Management Committee in furtherance of the objectives of the program,
provided that the amendments, revisions of modifications herein adopted are
consistent with the mandate of the Fund under its charter and existing laws.
8. Repeal
All rules and regulations, policies, orders and issuances contrary to or
inconsistent with these guidelines are hereby repealed or modified accordingly.
9. Effectivity
These guidelines shall take effect immediately.
Please be guided accordingly.
(SGD.) JAME A. FABANA
Officer-in-Charge
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HOME GUARANTY CORPORATION
Implementing Rules and Regulations for the Housing Loan
Restructuring and Condonation of Penalties Under R.A. 9507,
Otherwise known as the Socialized and Low Cost Housing
Loan Restructuring and Condonation Program, Providing the
Mechanism Therefor and for Other Purposes
SECTION 1. Definition of Terms - As used in this RR for the Housing Loan Restruc-
turing and Condonation Program under R.A. 9507, the following terms shall be defined as
follows:
a. Abandoned Unit refers to a housing structure that has not been occupied by the
borrower-owner for more than one (1) year from the date of delinquency.
b. Condonation means the relief given by law in the payment of penalties, surcharges
and a portion of accrued interest, as approved by the HGC Board of Directors.
c. Contract-to-Sell pertains to a bilateral contract whereby HGC as seller expressly
reserve the ownership of the subject property despite delivery thereof to the buyers and
binds itself to deliver the title of the said property to the buyers upon full payment of the
purchase price.
d. Dacion en pago refers to the mode of extinguishing an obligation whereby the debtor
alienates in favor of the creditor property for the satisfaction of monetary debt.
e. Delinquent Accounts/Borrowers refer to accounts/borrowers with accumulated
arrearages equivalent to at least three (3) months of unpaid monthly amortizations/pay-
ments as of March 16, 2009.
f. Fire and Allied Perils Insurance refers to a yearly renewable term insurance on the
housing structure subject of a loan/sale against fire, lightning, earthquake shocks, ty-
phoons and floods.
g. Force Majeure refers to those events which cannot be foreseen or, if foreseeable,
cannot be prevented or avoided by the exercise of due diligence such as strikes or other
labor difficulties, rebellion or insurrection, acts of war, riots or civil commotions, acts of
public enemies, national emergencies, fire, flood, earthquake or other catastrophes or
acts of God.
h. Foreclosed Accounts refer to accounts that have been issued Certificate of Sale
(COS) by virtue of auction sale conducted by the court, sheriff or notary public and with
expired redemption period.
i. Foreclosure refers to the legal procedure either judicially or extra-judicially, as long
as due process is observed, for enforcing claims against a mortgagor in default of payment
of its obligation.
j. Guaranteed Accounts means accounts assigned or conveyed to HGC pursuant to
its guaranty business.
k. IRET means nterest Repricing and Extension of Repayment Term pursuant to HGC
Board Resolution No. 36-2005 dated September 20, 2005, wherein the original interest
rate of qualified delinquent accounts are repriced to 6% to 12% depending on the original
loan value and the repayment term is extended to a maximum of twenty (20) years.
l. Legal Heirs pertain to persons who are called to succeed to the rights and interests of
a deceased person either by provision of a will or by operation of law.
m. Loan Restructuring refers to a process where the principal terms and conditions of
the original loan are modified in accordance with an agreement setting forth a new plan of
payment or a schedule of payment on a periodic basis.
n. Mortgage Redemption Insurance refers to a yearly renewable term insurance
where the borrower is covered for an amount equal to the restructured obligation. This also
refers to Loan/Sales/Housing Redemption nsurance.
o. Outstanding Obligation refers to the sum of the outstanding loan principal, unpaid
principal, accrued interests and penalties, insurance premiums, taxes, foreclosure and
other incidental expenses, if any.
p. Program refers to the Socialized and Low Cost Housing Loan Restructuring and
Condonation Program established under R.A. No. 9507.
q. Redemption means regaining possession of a mortgaged property by paying the
debt or fulfilling other obligations.
r. Restructured Obligation refers to the sum of the interest bearing and non-interest
bearing obligation.
The interest-bearing portion refers to the total outstanding loan principal, unpaid prin-
cipal, unpaid insurance premiums, taxes, foreclosure and other incidental expenses, if
any.
The non-interest bearing portion refers to the remaining accrued interest due net of
condoned portion, if any, to be paid in equal monthly amortization within the term of the
restructured obligation.
s. Socialized and Low-Cost Housing Loans/Obligations refer to housing loans/obli-
gations the original amounts of which are within the housing loan ceilings as determined
by the HUDCC and the original principal obligations of which do not exceed P2.5 million.
These also refer to the obligations of community/group/homeowners associations (HOA)
provided the principal amount of the individual members loan does not exceed P2.5 mil-
lion. These further refer to installment receivables covering the sale of housing units/lots on
installment basis, the selling price of which does not exceed P2.5 million.
t. SRP means Special Repayment Program pursuant to HGC Board Resolution No. 03-
2006 dated May 8, 2006, wherein qualified delinquent borrowers can amortize their obliga-
786
tions categorized as the interest bearing portion and the non-interest bearing portion for a
maximum period of twenty (20) years.
u. Successors-in-interest refer to the assignees, transferees and buyers of rights who
have assumed the original loan as supported by legal documents, including Special Power
of Attorney (SPA), duly approved by HGC.
SECTION 2. Coverage -
a. This program covers all outstanding housing loans granted, acquired and being serviced
by the Home Guaranty Corporation (HGC) as follows:
1. Guaranteed accounts assigned/conveyed to HGC by virtue of call payments;
2. BDC (Bliss) Accounts (exclusive of short term and renewable Contracts of
Lease);
3. Abot-Kaya Pabahay Fund Accounts;
4. Folio (Retail-NHMFC Assigned Accounts);
5. Community Mortgage Program and Cooperative Housing Program accounts;
6. HGC in-house retail accounts; and
7. Trust Accounts (subject to approval of trustor).
b. The borrowers on record, including successors-in-interest/legal heirs, as of March 16,
2009 shall benefit from this program.
c. The program shall be implemented for a period of eighteen (18) months from March 16,
2009.
SECTION 3. Conditions -
a. The housing loan must have accumulated arrearages equivalent to at least three (3)
monthly amortizations/payments as of March 16, 2009.
b. The original principal amount of the housing loan does not exceed Two Million Five
Hundred Thousand Pesos (P2,500,000.00).
c. The member-borrower may apply only once for the restructuring and condonation of
penalties on the entire loan amount, except in case of force majeure affecting the ability of
the borrower to fulfill his/her financial obligations under the contract.
d. Borrowers who have availed themselves of any previous condonation program of HGC or
any government financial institution or housing agency may still avail themselves of the
benefits of this new condonation and loan restructuring program.
e. The program provided for under RA 9507 shall be construed as a separate and distinct
program from the ones being implemented by HGC.
f. Qualified borrowers shall be notified through letter, publication or posting at his/her last
known address, or at the unit subject of the loan on how they can avail themselves of this
program.
SECTION 4. Exclusion from Coverage - The following housing loan accounts shall not
be covered by this Act:
a. Any account without a single payment since take out/effectivity of Contract to Sell;
b. An account which housing unit has been abandoned by the borrower-owner for more
than one (1) year from the date of delinquency;
c. An account which housing unit is assigned/transferred or occupied by a third party other
than the original registered beneficiary or his/her legal heirs/successors-in-interest;
d. An account that has been foreclosed and the redemption period has already lapsed;
e. An account covered by a Contract to Sell that has expired or been cancelled; and
f. An account whose underlying asset has been surrendered to HGC through a dacion en
pago, the title of which has already been consolidated/transferred in the name of HGC.
SECTION 5. Scope and Manner of Condonation -
5. 1 General Guidelines
a. The delinquent borrower/installment buyer, legal heir or successor-in-interest applying
for condonation and loan restructuring shall not be charged a processing fee and no
downpayment shall be required.
b. All accumulated unpaid penalties and surcharges on due and demandable arrearages
shall be condoned upon approval of the restructuring application.
c. All due and demandable arrearages in interest, net of condoned amount, shall be treated
as non-interest bearing principal to be paid in equal monthly amortizations during the term
of the restructured loan.
d. The outstanding principal balance of the housing loan shall be restructured over the
remaining term of the original loan or thirty (30) years, whichever is longer, provided that
the extension of the restructured loan shall not exceed the difference between the borrowers
age at the time of the application and age seventy (70) at an interest rate of not more than
the interest of the original loan or twelve percent (12%), whichever is lower.
e. Penalties that have been fully paid when a borrower/beneficiary updated his/her account
and/or availed himself/herself of this restructuring and condonation program are not within
this scope.
5.2 Specific Guidelines
a. Borrower who has availed himself/herself of the existing restructuring programs of HGC
shall be entitled to the following:
1. Special Repayment Program (SRP):
788
1.1 All accumulated unpaid penalties and surcharges on due and demandable
arrearages of the non-interest bearing portion of the loan and all accumulated
unpaid penalties and surcharges on due and demandable arrearages of the
interest bearing portion of the loan after availing himself/herself of SRP shall be
condoned upon approval of the restructuring application.
1.2 All accrued interest of the non-interest bearing portion of the loan and
the due and demandable arrearages in interest on the interest bearing portion
of the loan after availing himself/herself of SRP, net of the total condoned amount,
shall be treated as non-interest bearing principal payable over the restructured
term of the loan.
1.3 The balance of the interest bearing portion may be payable over the
remaining term of the loan or may be extended to thirty (30) years whichever is
longer, provided that the extension of the restructured loan shall not exceed the
difference between the borrowers age at the time of the application and age
seventy (70) at an interest rate of not more than the interest of the restructured
loan or twelve percent (12%), whichever is lower.
2. Interest Repricing and Extension of Repayment Term (IRET)
2.1 All capitalized penalties and surcharges and due and demandable
penalties and surcharges shall be condoned upon approval of the restructuring
application.
2.2 All capitalized interest before and due and demandable interest, net of
the condoned amount, shall be treated as non-interest bearing principal payable
over the restructured term of the loan.
2.3 The outstanding restructured principal balance may be payable over the
remaining term of the loan or may be extended to thirty (30) years whichever is
longer, provided that the extension of the restructured loan shall not exceed the
difference between the borrowers age at the time of the application and age
seventy (70) at an interest rate of not more than the interest of the restructured
loan or twelve percent (12%), whichever is lower.
b. Borrower whose account has been foreclosed but the redemption period has not yet
expired shall be entitled to the following:
1. All accumulated unpaid penalties and surcharges on total outstanding
obligation shall be condoned upon approval of the restructuring application.
2. The remaining balance of the redemption value inclusive of HGC advances
and foreclosure expenses, such as insurances, filing, publication, posting, out
of pocket, attorneys fees and other incidental expenses, net of the condoned
amount on interest, shall be payable upon approval of the application and before
the expiration of the redemption period.
c. A borrower who is a prompt payor may apply for restructuring of the outstanding princi-
pal balance payable over the remaining term of the loan or may be extended to thirty (30)
years whichever is longer, provided that the extension of the restructured loan shall not
exceed the difference between the borrowers age at the time of the application and age
seventy (70) at an interest rate of not more than the interest of the original loan or twelve
percent (12%), whichever is lower.
SECTION 6. Availment Procedures - Applicants for the program shall follow the follow-
ing procedures:
a. The borrower, his/her legal heir or successor-in-interest shall file the application for the
Program with HGC.
A SPA shall be accepted only in cases when the party is working overseas and the
SPA presented has been executed and duly notarized prior to his/her departure from the
country or duly authenticated by the Philippine consul in the foreign country, or when the
applicant is physically incapacitated as evidenced by a Medical Certificate.
b. HGC shall evaluate the application of the borrower/legal heir/successor-in-interest and if
found qualified, require the latter to accomplish the Financial Restructuring Agreement and
Promissory Note and affix his/her signature on the Restructured Financial Package.
SECTION 7. Accounts of Borrowers Who Become Permanently Physically Incapaci-
tated - n case of permanent physical incapacity of a borrower, his/her legal heirs and
successor-in-interest may assume payment of his/her outstanding housing loan. Such
legal heirs and successors-in-interest must pass the HGCs eligibility requirement before
they are allowed to assume payment of the borrowers loan obligation. n case of death of
the borrower, the proceeds of the Mortgage Redemption nsurance (MR) shall be fully
applied. Any remaining balance shall be amortized by the legal heirs or successor-in-
interest.
SECTION 8. Incentive for Prompt Payment of Monthly Amortization - All accounts,
the monthly amortizations of which are paid on time at all times, shall be entitled to
incentives in the form of a one percent (1%) reduction on the interest.
SECTION 9. Remedies Against Delinquent Accounts -
9.1 The HGC shall continue to exercise its right to foreclose the mortgage, cancel Con-
tracts to Sell or other remedies involving properties covered by the following:
a. Accounts excluded from the coverage of this program as listed in Section 3;
b. Delinquent accounts of borrowers who fail to avail themselves of the benefits
under this condonation and loan restructuring program; and
c. Accounts of borrowers who avail themselves of the benefits of this program
but subsequently defaults in the payment of three (3) consecutive monthly
amortizations of the restructured loan.
9.2 The foreclosure proceedings shall be exempt from publication in newspapers of gen-
eral circulation. n lieu thereof, the following shall be undertaken:
790
a. Posting of the date and place of auction shall be made for not less than
twenty (20) days in at least three (3) conspicuous public places in the city or
municipality, where the property is situated;
b. A written notice of foreclosure shall be sent to the borrower at his/her last
known address.
9.3 The Contracts to Sell shall be considered cancelled after thirty (30) days from receipt
by the buyer of the notice of cancellation or demand for rescission of contract/deed by
notarial act sent to his/her last known address or to the address of the subject property.
SECTION 10. Reporting - HGC shall submit, through the HUDCC, to the Committee
on Urban Planning, Housing and Resettlement of the Senate and the Committee on Hous-
ing and Urban Development of the House of Representatives an annual report on the imple-
mentation of the condonation and loan restructuring program.
(SGD.) GONZALO BENJAMN A. BONGOLAN
President
INSURANCE COMMISSION
Circular Letter No. 9-2009
Examination/Verification Rules and Procedures On
Paid-Up Capital and Networth Compliance
To complement the enforcement of the nsurance Code particularly Section 246,MC
No. 1-2004 items 3, 4 and 5, MC No. 1-2006, for statutory reporting purposes and to
further clarify the audit procedures by the nsurance Commission, the following rules and
procedures shall apply:
1. Financial statements of insurance and reinsurance brokers authorized to transact
business in the Philippines shall be subject to yearly examination/verification. All con-
cerned entities shall submit present all books of accounts, securities, brokers agree-
ment, information on policies, details on cessions or retrocessions, rates of commissions
and premiums as may be required by the examiner.
Such examiner shall also have the power to examine the officers of such company
under oath touching its business and financial condition and the authority to transact
business in the Philippines of any such entity shall be suspended by the Commissioner if
such examination is refused and such entity shall not thereafter be allowed to transact
further business in the Philippines until it has fully complied with all the requirements.
Offsetting of receivables and payables shall be permitted in accordance with the
requirements of Philippine Accounting Standards Principles No. 32 (PAS 32), thus, all
types of trade receivables and payables (direct and reinsurance) shall be taken up at
gross.
2. All monies collected or received as premium payment shall be immediately remitted to
the insurance or reinsurance company concerned, unless a period has been agreed upon
which in no case shall exceed ninety (90) days from inception of the policy. Reinsurance
balances shall also be subjected to confirmation from the concerned principal and any
discrepancy shall immediately be reconciled, otherwise, differences will also be subjected
to the setting up of non-ledger liabilities.
Likewise, premium receivable/recoverable over ninety (90) days shall also be disallowed
unless proof of collection shall be submitted.
3. Proof of investments in bonds, treasury bills, stocks, real estate, loans receivable,
cash on hand and in bank shall also be presented/submitted to the examiner and shall be
subjected to disallowances if supporting documents are inadequate.
4. All other accounts, such as deferred and prepaid taxes, property and equipment, other
assets, other receivables taxes payable, long and short term liabilities shall also be sub-
jected to disallowance as well as setting up of non-ledger liabilities upon proper determina-
tion/examination or verification by the examiner.
5. f upon examination into the financial condition of these entities, it is found that the paid-
up capital stock is impaired and/or the networth is less than that required under MC 1-
2006, the same shall be fully covered up in cash to be contributed proportionately by the
stockholders on record within fifteen (15) days from receipt of the advice from the nsur-
ance Commission.
Any cash infusion by the stockholders shall also be subject to examination and
verification in accordance with the provision of Anti-Money Laundering Act of 2001 (Republic
Act No. 9160, as amended by Republic Act No. 9194) and Circular Letter No. 24-2005B
dated September 2, 2005.
Likewise, when the fund is sourced from a parent company, either locally or abroad,
the concerned entity shall submit a certified true copy of the board resolution authorizing
the cash infusion from the parent company duly authenticated by the Philippine Consul, if
applicable.
All previous rulings and policies inconsistent herewith are hereby revoked.
This Circular shall take effect immediately.
(SGD.) EDUARDO T. MALNS
Insurance Commissioner
-o0o-
792
Foreign Exchange Remittances Abroad Relative
to Reinsurance Transactions
All foreign exchange remittances abroad by way of telegraphic transfer, direct bank
credit/debit memos and/or mode of electronic bank transfers are required to seek prior
approval and obtain certification from the nsurance Commission.
Said request must be supported by the pertinent documents enumerated in Circular
Letter No. 13-2008 dated March 13, 2008.
-o0o-
Rules and Regulations on Reinsurance Transactions
By virtue of the powers vested in the nsurance Commission under the provision of
Section 414 of the nsurance Code, the following revised rules and regulations governing
life reinsurance transactions in the Philippines are hereby promulgated:
1. The retention of a life insurance company on any one standard life insured shall not be
less than the amount equal to one-half (1/2) of one percent of the latest verified stockhold-
ers equity.
2. The minimum retention on substandard lives shall be graded downwards from standard
in accordance with sound underwriting practice. The schedules of retention limits shall be
submitted to the nsurance Commission prior to its adoption in any reinsurance agree-
ment.
3. No reinsurance shall be placed abroad where the amount of risk is Three Million Pesos
(P3.0M or Less), per life standard risk, graded down for substandard lives.
4. No reinsurance shall likewise be placed abroad on accident riders where the accident
risk does not exceed One Million Five Hundred Thousand Pesos (P1.5M) per standard
risk.
5. Reinsurance treaties abroad shall be on the yearly renewable term plan (amount of risk)
only. Renewal of existing treaties shall be on a year to year basis and shall contain a
provision for recapture of previously ceded business. To protect the company against
unusual number of claims as a result of jumbo policies issued, the company may avail
itself of the catastrophe or stop loss cover abroad.
6. Reinsurance abroad on other life insurance riders, group insurance and all other life
insurance business may be made only after it has been shown by ceding company that
such risk cannot be absorbed by the Philippine market.
Likewise, facultative reinsurance placements are subject to prior approval by the
nsurance Commission.
All circulars and orders inconsistent herewith are hereby revoked.
-o0o-
Filing of 2008 Annual Statements
The following guidelines are hereby issued:
. The Annual Statement showing the exact condition of each Associations affairs as of
the preceding thirty-first (31
st)
day of December shall be signed and sworn to by the
president, chief operating officer, general manager, secretary, treasury, actuary and ac-
countant;
. The Annual Statement shall be on legal size bond paper (8 x 14 nches), using either
the Times New Roman font size #12 or Arial font size #10. Attached to each Annual
Statement shall be the documents enumerated in Annex A* hereof;
. The exact formats, columnar headings and footnote instructions found in every page of
the blank forms of the prescribed Annual Statement shall be observed;
V. A soft copy of the Annual Statement and attachments shall also be submitted;
V. Any Annual Statement submitted with incomplete documents shall not be considered
full compliance with the requirement; and
794
V. The filing shall be fifteen Thousand Pesos (P15,000.00) pursuant to nsurance Memo-
randum Circular 3-2006 dated June 28, 2006.
Please file your 2008 Annual Statements on or before April 30, 2009 to avoid penalty.
-o0o-
Quarterly Reports on Selected Financial Statistics
Attached are the revised forms* on the subject. Please note that the values should
be as of the given end of the quarter and hence represent cumulative amounts.
Please submit the reports within fifteen (15) working days after the end of each
quarter to avoid penalty.
LAND TRANSPORTATION FRANCHISING AND REGULA-
TORY BOARD
Granting of Transport Fare Discount to All Senior Citizens
On February 26, 2004, Republic Act No. 9257, known as An Act Granting Additional
Benefits and Privileges to Senior Citizens, Amending for the Purpose Republic Act No.
7432, otherwise known as An Act to Maximize the Contribution of Senior Citizens to
Nation Building, Grant Benefits and Special Privileges and for other Purposes. To imple-
ment said law, the corresponding Rules and Regulations (RR) have been issued by the
Department of Social Welfare and Development, and portion of said RR reads:
RULE V
PRIVILEGES FOR THE SENIOR CITIZENS
Article 7. Privileges for the Senior Citizens. The senior citizens shall be entitled
to the following:
xxx xxx xxx
Section 11. Public Land Transportation Privileges. Twenty percent (20%) discount
in public railways, including LRT, MRT, PNR, Skyways and fares in buses (PUB),
jeepneys (PUJ), taxi and shuttle services (AUV) shall be granted for the exclusive
use and enjoyment of senior citizens.
The Department of Transportation and Communication (DOTC), Light Rail Transit
Authority (LRTA), Philippine National Railways (PNR), Toll Regulatory Board (TRB)
and Land Transportation Franchising and Regulatory Board (LTFRB) shall issue
corresponding circulars or directives to the public land transport sector for the
implementation of these rules to ensure compliance herewith, as well as
requirements to these operators to disseminate information on the benefits of the
senior citizens by posters, handbills or pamphlets on board their vehicles.
xxx xxx xxx
However, it appears that only PUJs and PUBs have been granting fare discounts to
senior citizens pursuant to the fare guidelines approved by the Board.
Hence, in compliance with the above-cited law and consistent with Section 5 (k) and
(l) of Executive Order No. 202, the Board hereby directs all public utility operators and
drivers to grant 20% fare discount to all senior citizens who avail of their services
under the following guidelines:
1. To avail of the fare discount, all senior citizens should present their respective identifi-
cation documents, as such as, but not limited to:
a. dentification Card issued by the City or Municipal Mayor/Office of Senior
Citizens Affairs (OSCA) or of the barangay captain of the place where the senior
citizen or the elderly resides.
b. Passport of the elderly person or senior citizen concerned; or
c. Other documents that establish that the senior citizen or elderly is a Filipino
citizen who is at least sixty (60) years of age.
2. n the case of taxi service, the full 20% discount on the total taxi fare shall be given to
the senior citizen regardless of the number of his/her companions.
796
3. For the other modes of transport (PUB, PUJ, GT Express), the 20% discount shall be
based on the amount of fare corresponding to the senior citizen.
4. Any operator found in violation of this Circular shall be subjected to the following penal-
ties:
First Offense P2,500.00
Second Offense P3,500.00
Third Offense P5,000.00 and/or cancellation of franchise
at the sole discretion of the Board
All other issuances or parts thereof inconsistent herewith are hereby modified,
amended, or superseded accordingly.
This Memorandum Circular shall take effect fifteen (15) days after publication in a
SO ORDERED.
(SGD.) ALBERTO H. SUANSNG
Chairman
(SGD.) GERARDO A. PNL (SGD.) MA. ELLEN DRGE-CABATU
Board Member Board Member
o 0 o
Deferment of Full Implementation of MC 2007-011
School transport operators represented to this board that due to the prevailing eco-
nomic and/or financial conditions, amongst other reasons, they find it hardly possible to
comply with the provisions of MC 2007-011 MANDATORY YELLOW COLOR SCHEME
FOR SCHOOL TRANSPORT SERVCES. n view thereof, this Board resolves to defer the
full implementation of the same for the school year 2009-2010 subject to determination of
road worthiness and the following color and body markings:
1. Alternate Chevron markings at the rear and front of vehicle visible from 50 meter dis-
tance.
2. Dark yellow rectangle on both sides (3m x 1m) and inscribed in black SCHOOL SER-
VCE (40 cm) NAME OF SCHOOL (25 CM).
3. At the rear dark yellow square (1 m) and inscribed in two lines SCHOOL SERVCE
CAUTON: CHLDREN CROSSNG.
4. The name of operator, address, LTFRB case no. and plate no. painted on both sides of
the unit.
5. Hows my Driving? Call or Txt LTFRB Hotline or Operators No. painted on both sides of
the unit.
This MC applies to school transport services with existing franchise. All applicants for
new CPC or extension of validity and those with pending application for the same shall fully
comply with the provisions of MC 2007-011.
All issuances inconsistent herewith are hereby superseded and/or amended accord-
ingly.
Chairman
(SGD.) GERARDO A. PNL
Board Member
o 0 o
Implementing Guidelines in the Authorization of Dealers
and Distributors of Taxi Meter Issuing Receipt
Pursuant to MC 2003-020 as amended by MC-2009-003 dated January 26, 2009, the
Board hereby promulgates policies and guidelines for the authorization of dealers and
distributors of taxi meter issuing receipts.
1. Procedures n applying for authorization, the following are the procedures for applica-
tion for authorization:
a) Filing of the application for authorization at Technical Evaluation Division with the
requirements as provided for in the next succeeding number;
b) Evaluation by the Authorization Team of all the requirements submitted by the
applicant;
c) Approval of the Authorization Team of the Application which complied with all the
requirements prescribed;
d) Confirmation of the Chairman and Board Members of the approval of the application
as recommended by the Authorization Team.
2. Documentary Requirements n applying for the authorization as duly authorized
dealers/distributors, the following documents shall be submitted upon filing of duly accom-
plished and notarized application for authorization:
798
a) Department of Trade and ndustry Business Name Registration, in case of
individuals;
b) n case of corporations or partnerships, Securities and Exchange Commission
Registration and Articles of ncorporation;
c) Certificate of Accreditation from BR
c.a) Machine Accreditation number
c.b) Software accreditation number
d) Location map of shop and parking with complete address which can
accommodate at least 3 units;
e) Picture of the establishment showing permanent signboard, classification
and address;
f) Warranty of Taximeter after installation;
g) Undertaking to be liable for all designated sub dealers and agents;
3. Fees a filing fee in the amount of ONE THOUSAND FIVE HUNDRED PESOS
(P1,500.00) shall be collected upon filing of the application for authorization;
4. Validity of Authorization Permit The Authorization Permit shall be valid for a
period of one (1) year from the approval of application for authorization and shall be
renewed within thirty (30) days before the expiry date of the authorization permit;
5. Reports Authorized dealers/distributors shall update reporting to the Board of all sold
meter to operator, available stocks of meters and no meter will be installed unless a
dealers report and payment of customs dues pursuant to existing laws are submitted to
the Board. The Board shall likewise be provided with a copy of the reportorial requirements
submitted by the suppliers with BR;
6. Penal Provisions An authorized dealers/distributors shall be penalized in the amount
of ONE HUNDRED THOUSAND PESOS (P100,000.00) for the first offense, a fine in the
amount of TWO HUNDRED THOUSAND PESOS (P200,000.00) for the second offense,
and CANCELLATION OF AUTHORITY for the third offense, for any of, but not limited to
the following violations:
a) Non-compliance with the standard requirements herein provided other pertinent
laws, rules and regulations;
b) Submission of spurious documents in relation to the prescribed requirement by
the Board;
c) Misrepresentation in the filing of the application for authorization;
d) nvolvement in illegal operations.
All issuances or parts hereof which are inconsistent herewith are modified and/or
revoked accordingly.
This Memorandum Circular shall take effect immediately.
Chairman
o 0 o
Modification to MC 2004-043
t has been observed by this Board that filing of Applications for Exemption pursuant
to MC 2004-043 has been abused by those registered owners/operators of private vehicles
classified as Truck, Aluminum Van or called by other names or has another configuration,
by applying for an exemption despite operating as for hire and with consideration.
Thus, this Board hereby amends and modifies MC 2004-043 dated December 13,
2004, by excluding therein the filing of Application for Exemption for the Operation of TH
Services.
All issuances inconsistent herewith are hereby superseded and amended accordingly.
This Memorandum Circular shall take effect fifteen (15) days following its publication
in a newspaper of general circulation and filing of three (3) copies hereof with the UP Law
Center pursuant to Presidential Memorandum Circular No. 11 dated 9 October 1992.
Chairman
o 0 o
Amendment to MC 88-017, Re: Requirements for Payment of
Annual and Supervision Fees, and MC 2005-005, Re: Penalty for
Non Compliance with MC No. 88-017
Due to the clamor of public land transport service operators, and to eliminate superflu-
ous transaction, this Board hereby amends Memorandum Circular 88-017, RE: REQURE-
MENTS FOR PAYMENT OF ANNUAL AND SUPERVSON FEES dated July 19, 1988,
AND MC 2005-005, RE: PENALTY FOR NON COMPLANCE WTH MC NO. 88-017 dated
March 1, 2005, by dispensing the submission of fleet inventories/lists of registered units
annually by grantees of Certificates of Public Convenience.
800
All issuances inconsistent herewith are hereby superseded and amended accord-
ingly.
This Memorandum Circular shall take effect fifteen (15) days following its publication
in a newspaper of general circulation and filing of three (3) copies hereof with the UP Law
Center pursuant to Presidential Memorandum Circular No. 11, dated 9 October 1992.
Chairman
LAND TRANSPORTATION OFFICE
Memorandum
Application of Fines and Penalties to Violations Committed Before
the Effectivity of DOTC D.O. No. 2008-39 Dated August 26, 2008
After dialogues held with stakeholders and to clarify the imposition of penalties under
DOTC No. 2008-39, the following rules are hereby promulgated for the observance of all
concerned, effective immediately:
1. The fines/penalties under the revised fees and charges contained in aforecited
department order shall be applied prospectively.
2. Violations committed before the start of implementation of said department order on
March 2, 2009 shall be penalized under D.O. No. 93-693 series of 1993, and shall not
be included as part of the computation of the number of times a violation has been
committed, in order to arrive at the proper fine/penalty to be settled.
Previous orders/memoranda in conflict herewith are hereby modified and/or super-
seded accordingly.
For guidance and strict compliance.
(SGD.) ARTURO C. LOMBAO
Assistant Secretary
o 0 o
Administrative Order No. ACL-2009-017
Amending Administrative Order No. AHS-2008-013, Re: Rules and
Regulations Governing the Use and Issuance of Commemorative Plates
n order to remove the confusion in the use and issuance of commemorative plates,
Administrative Order No. AHS-2008-013 dated 27 March 2008 is hereby amended, to read
as follows:
PLACEMENT AND INSTALLATION. As stated in Administrative Order No. BGC-
AO-99-003 The commemorative plate shall be superimposed over the regular
front plate as illustrated in the attached sketches* A, B, C and D. As such,
the placement of the regular front plate in the motor vehicle shall be maintained in
the space provided for the purpose. Removal thereof shall be deemed to be a
violation of this Order.
All previous orders/memoranda in conflict herewith are deemed superseded.
For compliance.
Assistant Secretary
o0o
Memorandum Circular ACL-2009-1132
Amendments on the Online and Real-Time Registration and
Authentication of Certificates of Cover for Compulsory
Third Party Liability Insurance
Pursuant to the recommendations of the LTO-T Project Management Committee to
enhance and improve the existing system and processes and to eradicate certain mal-
practices by insurance companies, eliminate cut-throat competition, stamp out corrup-
tion, and improve government revenue generation efficiency; Memorandum Circular RB
2007-854 is hereby amended with the following provisions:
1. Establishment of a real-time and online system to verify and confirm tax payments of
Certificates of Cover of Compulsory Third Party Liability insurance coverage issued by
insurance companies.
802
2. Enter into an agreement that will be embodied in a memorandum of understanding with
the concerned government agencies to ensure proper tax collection mechanisms.
3. Strengthen coordination with the nsurance Commission to sanction erring and recalci-
trant insurance companies.
4. Conduct value formation and retraining/retooling for insurance agents and underwriters.
5. Conduct orientation and trainings on the enhanced COCVF system to all concerned
LTO officials and employees.
The Office of the National Administrative Register (ONAR), UP Law Center shall be
furnished copies of this Memorandum Order which will be effective after fifteen (15) days
from the date of publication.
Assistant Secretary
o 0 o
Memorandum Circular No. ACL-2009-1134
Orange Plate for Low Speed Vehicles (LSV) and Light Electric Vehicles (LEV)
All concerned are hereby reminded to strictly observe that Light Electric Vehicles or
(LEVs) such as electric motorcycles and Low Speed Vehicles (LSV) such as electric
jeepneys MUST BE SSUED A COLORED-ORANGE PLATE if classified under private
denomination and a pair of yellow plates for for-hire LSVs.
For guidance on the registration of LSVs and LEVs, refer to Administrative Orders with
numbers AHS-2008-014 and 2006-01 dated March 24, 2008 and March 31, 2006, respec-
tively, and its corresponding implementing rules and regulations.
All green plates that were issued to LEVs or LSVs must be immediately recalled and
replaced with orange plates bearing the same number of the issued green plates. f orange
plate is not yet available, subject LSV or LEV shall be issued an authority to use impro-
vised plates while waiting for the production of the orange plates.
Any person found violating any of the provisions of the aforementioned memorandum
circulars shall be charged for violation of office rules and regulations or insubordination as
the case may be and as provided for under the civil service rules and regulations.
FOR STRCT COMPLANCE.
Assistant Secretary
o 0 o
Revocation of Memorandum Circular No. AHS-2008-1052
As agreed in the Regional Directors Conference held on April 22, 2009, Memorandum
Circular No. AHS-2008-1052 on the issuance of Student Permit in all Drivers License
Renewal Centers (DLRCs) nationwide is hereby revoked.
Assistant Secretary
o 0 o
Addendum to Administrative Order No. RIB-2007-012 Dated 17 May 2007
n accordance with Administrative Order No. RB-2007-012 (Re: Revised Rules and
Regulations Governing the Supervision and Control over Accredited Physicians) and in
compliance to the objective of the office for continuous, effective and efficient public ser-
vice, the following amendments/addenda shall be adopted for clarification in the require-
ments in the evaluation of application of accredited physicians, to wit:
1. The clinic shall have an area of at least 4 meters by 4 meters
2. Documentation that shall be required from the physician-applicant employed by the
owner of a drug testing center/medical clinic:
a. Certified true copy of Mayors permit of the owner of a drug testing Center/
medical clinic
b. Original and photocopy of the latest ncome Tax Return of the employer
clearly showing the income derived from the operation of the medical clinic,
and/or the physicians ncome Tax Return (TR) if gainfully employed on the last
taxable year.
c. Official Receipts of medical clinic duly stamped and recorded by the BR.
All previous circulars/orders inconsistent herewith are hereby deemed revoked, amended
or superseded.
804
Assistant Secretary
o0o
Memorandum
Conduct of Roadworthiness Check of Buses in Garage/Terminals
To address issues on road safety particularly on the buses, you are hereby directed to
conduct roadworthiness check of buses (using the Motor Vehicle nspection Report Form)
in their respective terminals located within your regional jurisdiction, every Friday and
Saturday.
A summary inspection report shall be submitted to the undersigned (refer to the at-
tached monthly report form*), every 7
th
day of the following month.
For information, guidance and strict compliance.
Assistant Secretary
o 0 o
Collection of Computer Fees
Upon the successful completion of the functional and other applicable testing, Certifi-
cates of Acceptance of an T Facility (CAFs) for the modules of the Motor Vehicle Regis-
tration System (MVRS), Drivers License System (DLS) Law Enforcement and Traffic Ad-
judication System (LETAS) and Revenue Collection System (RCS) were issued for the
following LTO offices:
tem Region District/Extension Office Modules
1 R1 Burgos Extension Office MV, DL, LETAS, RCS
2 R2 Cabagan Extension Office MV, DL, LETAS, RCS
3 R11 Compostela Valley EO MV, DL, LETAS, RCS
4 R12 Marawi District Office MV, DL, LETAS, RCS
Accordingly, pursuant to the LTO nformation Technology Project Build-Own-Operate
Agreement and the User Acceptance Test (UAT) Plan, you are hereby directed to com-
mence collection of computer fees for MVRS, DLS and LETAS modules applicable to your
respective sites, as follows:
Computer Fee
1. Motor Vehicle Registration System (MVRS) P169.06
2. Drivers Licensing System (DLS) and Law
Enforcement and Traffic Adjudication System (LETAS) P67.63
All orders/memoranda in conflict herewith are deemed superseded.
This Memorandum Circular shall take effect 15 days after the publication from three
(3) newspapers of general circulation in the Philippines.
Assistant Secretary
o 0 o
Collection of Computer Fees
Upon the successful completion of the functional and other applicable testing, Certifi-
cates of Acceptance of an T Facility (CAFs) for the modules of the Motor Vehicle Regis-
tration System (MVRS), Drivers License System (DLS) Law Enforcement and Traffic Ad-
judication System (LETAS) and Revenue Collection System (RCS) were issued for the
following LTO offices:
tem Region District/Extension Office Modules
1 R2 Cabarroguis District Office MV, DL, LETAS, RCS
2 R4 Calamba Extension Office MV, DL, LETAS
3 R6 Pontevedra Extension Office MV, DL, LETAS, RCS
4 R9 Molave Extension Office MV, DL, LETAS, RCS
5 R9 Buug Extension Office MV, DL, LETAS, RCS
6 R10 Camiguin District Office MV, DL, LETAS, RCS
7 R10 Puerto Extension Office LETAS
8 R10 ligan District Office LETAS
9 R12 Kabacan Extension Office MV, DL, LETAS, RCS
Accordingly, pursuant to the LTO nformation Technology Project Build-Own-Operate
Agreement and the User Acceptance Test (UAT) Plan, you are hereby directed to com-
806
mence collection of computer fees for MVRS, DLS and LETAS modules applicable to your
respective sites, as follows:
Computer Fee
1. Motor Vehicle Registration System (MVRS) P169.06
2. Drivers Licensing System (DLS) and Law
Enforcement and Traffic Adjudication System (LETAS) P67.63
All orders/memoranda in conflict herewith are deemed superseded.
This Memorandum Circular shall take effect 15 days after the publication from three
Assistant Secretary
o 0 o
Printing of Certificate of Stock Reported (CSR)
n view of the problem being encountered by the supplier of the Certificate of Stock
Reported (CSR), and in the exigency of the service, as an interim solution, effective 15
May 2009 and until further notice, CSRs will be printed in the ordinary bond paper until
such time the issue in the printing of the CSR will be resolved.
The LTO Registration Section and the T Proponent in a formal meeting of 15 May
2009 came up with a Central Office Code, date issued and serial numbers. A RSU signed
by the Executive Director beginning 15 May 2009 up to 50,000 number of CSR will be
monitored by the business system.
Furthermore, the CSR shall be accompanied by an original Official Receipt of Pay-
ment issued by this Office. Likewise, holders of these CSRs are advised to keep file for
verification purposes.
For your information and compliance.
Assistant Secretary
o 0 o
Memorandum
Lifting of Moratorium on the Transfer of Offices
and Creation of Extension Offices/DLRCs
n view of the management thrust to bring the LTO service closer to the public, the
Moratorium on the Transfer of Offices and Creation of Extension Offices/DLRCs in the
Memorandum dated 25 March 2008 is hereby lifted.
The Committee on Transfer of Offices and Creation of Extension Offices/DLRCs and
the Regional Directors are hereby directed to strictly observe and adhere to the provisions
of the Department Order No. 2007-33. The LTO Building nfrastructure and Facilities Devel-
opment Program which determines the number of additional offices needed in the respec-
tive provinces/regions, shall likewise be taken into consideration prior to their recommen-
dation of any creation/establishment of LTO offices in their area of jurisdiction.
Further, the Regional Director shall always submit a certification indicating therein the
names of the six (6) personnel to be assigned at the proposed extension offices/DLRCs.
The certification shall state that all other district/extension/licensing offices/DLRCs in the
region will have no shortage in manpower even with the proposed creation of the extension
office/DLRC.
For information and guidance of all concerned.
Assistant Secretary
o 0 o
Memorandum
Guidelines of Central Office Committee on Accreditation of
Physicians in the Resolution of Cases of Accredited Physicians
t has been observed during the recent SO audit findings that there is no coordination
between the Central Office and the Regional Office Committee on Accreditation of Physi-
cians with regard to developments and findings in the whole accreditation scheme.
n this regard, the following guidelines shall be strictly implemented by the Central
Office Committee on Accreditation of Physicians, to wit:
1. nspection report shall be submitted by the inspecting team to the Chairman, Committee
on Accreditation of Physicians within three (3) days after the conduct of the inspection.
808
2. Within three (3) days after the receipt of nspection report, the Committee shall evaluate
and prepare a letter to the concerned Accredited Physicians with offense.
3. The Accredited Physicians shall be given fifteen (15) days to answer the result of
nspection.
4. Committee shall resolve the case upon the receipt of answered letter within seven (7)
days, the resolution to be signed by the Assistant Secretary.
5. t is the responsibility of the Central Office Committee to inform the Regional Committee
of the delisting of the physicians name in case of unfavorable findings/resolution of
his/her case.
6. Accordingly, RCAP shall be furnished an advance copy of the Resolution and updated
list of Accredited Physicians through fax message or through facsimile report in addition
to the official transmittal of the certified true copy through the usual process.
Assistant Secretary
o 0 o
Memorandum
Transmittal of Communication to RCAP to LTO-Accredited Physicians
t has been observed that the delivery of communications to concerned Accredited
Physicians have been much delayed resulting in one of the non-conformities in CP report.
n this regard, so as not to delay the transmittal of communications, the Central Office
Committee on Accreditation of Physicians is directed to transmit facsimile copies of the
communications each to the Regional Committee on Accreditation of Physicians and the
Accredited Physicians. The certified true copy of the communication will be transmitted
through the usual process.
Assistant Secretary
o 0 o
Guidelines and Procedures in the Utilization of the Certificate of
Payment Authentication and Verification System (CPAVS) for Issuance
of Certificate of Stock Reported
Pursuant to the Memorandum of Agreement between LTO and BOC on the
nterconnectivity Project through the Certificate of Payment Authentication and Verification
System (CPAVS) and to ensure the effectiveness of the project (transmission of BOC
electronic Certificate of Payment) and the integrity of the transmitted electronic data, the
following guidelines and procedures must be strictly adhered to.
For brevity, the following acronyms shall mean as follows:
BOC-CP Bureau of Customs Certificate of Payment
BOC/AAB-OR Bureau of Customs/Authorized Agent Bank Official Receipt
CPAVS refers to the information technology system that facilitates the reporting of the
issuance of certificate of payment to all imported motor vehicles and/or components through
electronic transmission
e-CP electronically transmitted BOC-CP
e-OR electronically transmitted BOC/AAB-OR
CP Classification refers to the codes assigned by the Bureau of Customs for each
defined status of imported motor vehicles and/or components to aid LTO to determine what
specific documents to require
STEP BY STEP PROCEDURES ON THE USE OF CPAVS:
Step 1. Searching for an e-CP or e-OR
1. All BOC-CP and/or BOC/AAB-OR transmitted electronically by the Bureau of Customs
can be retrieved and made available for stock reporting only through the Consignee
Data Entry Utility of the CPAVS;
2. To search for BOC-CP, type or key-in the prefix B before the CP number. Example:
BOC-CP No. 123456, key-in B123456;
3. To search for BOC/AAB-OR (for components only), type or key-in the prefix R before
the BOC OR number. Example: BOC/AAB-OR No. 78901, key-in R78901
Step 2. Validation of e-CP and e-OR details
a. Once e-CP or e-OR is retrieved, its details should be validated/verified against the
documents being submitted by the MA operator.
810
b. f there is no discrepancy in the details between the e-CP and the CP document and
all documentary requirements are complied with, the evaluator shall proceed to the
assignment or creation of Customer D.
c. f the number of components appearing on the CP document is less than the number
of components on the e-CP or e-OR, the transaction will still be considered valid for
processing and the evaluator shall proceed to the assignment or creation of Customer
D. MA should, however, be advised to proceed to BOC for the processing of the
components that were not included in the e-CP or e-OR.
d. For cases hereunder specified, the transaction must be rejected by closing the window
without saving the transaction and MA should be advised to have the deficiency corrected
with the authorities concerned:
d.1) lacking in documentary requirements;
d.2) all the details in the e-CP or e-OR do not match with those in the CP or importation
documents;
d.3) the number of components in the CP or importation documents is more than the
number of components appearing in the e-CP;
d.4) the number of motor vehicles and/or its components is already considered a
commercial quantity and the acquisition of which is obviously not for the own
consumption of the importer based on its nature of business;
d.5) the motor vehicles and/or its components, regardless of the quantity, were
imported for trading purposes but the importer thereof is not LTO accredited
importer; or
d.6) the motor vehicles and or its components are in violation of E.O. 156 or any
existing laws, rules, and regulations.
Step 3. Assigning of Customer ID
a. To assign a Customer D once the e-CP or e-OR is retrieved and has passed the
validation/evaluation, select the Customer D corresponding to the Customers Name
and/or Accreditation Number from the drop-down list that matches the documents
being submitted for stock reporting like the copy of the CP, OR, stock report, and
other pertinent documents.
f in case the Consignees Name does not match with any of the Customers Name
and/or Accreditation Number or is not existing in the drop-down list, a Customer D
must be created first by a DOSYS Admin using the Customer Maintenance Facility so
that it can be included in the drop-down list of the CPAVs and only then can the
evaluator proceed with step 3 (assigning of Customer D).
b. Once assigned a Customer D, stock report may now be processed using the MADRS
facility.
BOC-CP or BOC/AAB-OR for encoding by the LTO-CPEU
n cases where the CP was issued prior to the interconnectivity implementation date
and the CP record still does not exist in the MADRS database, the evaluator must advise
the client to proceed to the Certificate of Payment Encoding Unit (CPEU) for the uploading
of CP details.
EFFECTIVITY
This Memorandum shall take effect 15 days after publication. All orders and/or memo-
randa that are inconsistent herewith are deemed superseded.
Assistant Secretary
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Strict Compliance with the Rules on Installation
of Early Warning Device (EWD)
Consistent with the policy of the Office to promote road safety and to mitigate the
ruinous impact of road crashes, and pursuant to the pertinent provisions of LO No. 229,
LO No. 479 and M.C. No. RTL-MC-03434 dated 24 March 2003, the following rules and
regulations are hereby reiterated, for the observance of all concerned.
1. Motor vehicle registration applicants shall be required to present at least one (1) pair of
standard EWD as permanent accessory of said vehicle during registration. No motor ve-
hicle shall be registered or renewed registration without a pair of EWD having been pre-
sented.
The LTO official or employee who effected the registration or renewal registration of a
vehicle not equipped with a pair of EWD shall be held liable under these rules.
2. The EWD must be installed at least four (4) meters away to the front and at the rear of
the motor vehicle which is stalled, disabled or parked as in the following instances:
A. The vehicle is stalled, disabled or parked for thirty (30) minutes or more on
any street or highway, including expressways or limited access roads, where
the yellow EWD must be placed in front and the red, at the rear of the vehicle.
B. The motor vehicle is stationary, for any reason, or it is compelled to stop at
an area where standing or parking is prohibited, EWDs shall be installed.
3. Should the charge sheet of the apprehended driver include non-carrying of EWD, aside
from payment of fine, the license of said driver shall remain confiscated until a pair of EWD
is presented during adjudication.
f a vehicle is impounded and failure to carry a pair of EWD is among the violations
cited, the vehicle shall remain impounded until a pair of EWD is presented.
812
4. Failure to carry a pair of EWD carries a fine of P150.00.
Failure to install EWD 4 meters from the front and rear of the motor vehicle carries a
fine of P500.00 to be imposed on the owner/operator.
5. All previous memoranda, circulars and orders in conflict herewith are deemed super-
seded.
6. These rules and regulations shall take effect immediately.
Assistant Secretary
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Amendment to Memorandum Circular No. 673-2006 on Encoding and
Lifting of Alarm of Carnapped/Recovered Motor Vehicles in the Law
Enforcement and Traffic Adjudication System (LETAS)
Pursuant to the necessity or desirability of amendments as may aid in the simplifica-
tion of subject course of action, the abovementioned Memorandum Circular is hereby
amended to include placing motor vehicle with civil cases on the alarm list in accordance
with the following guidance, to wit:
1. All requests to place on alarm any motor vehicle involved in a civil case shall be
accompanied with attached copies of the Certificate of Registration (CR), a Complaint
filed in Court and a Certification by the Clerk of Court attesting to the existence of an
outstanding Writ of Replevin or Execution, as the case maybe, which shall then be
officially transmitted to the Office of the Assistant Secretary.
2. The Office of the Assistant Secretary shall endorse the aforementioned request to the
ntelligence and nvestigation Division (D) which shall evaluate the same and be
responsible for the preparation of the corresponding indorsement to the Data Control
Section or Custodial Center, as the case maybe, for encoding together with
abovementioned supporting documents.
The remaining guidelines of subject Memorandum Circular shall be taken as mutually
explanatory and be reconciled with the abovementioned amendment and therefore, shall
remain in force and effect.
Any official or employee found violating this circular shall be dealt with in accordance
with existing Civil Service Commission rules and regulations, without prejudice to the filing
of appropriate criminal charges as the situation so warrants.
Assistant Secretary
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Coding Standards for the Engine and Chassis
n line with the database clean-up plan and to ensure effective enforcement of Republic
Act 6539 otherwise known as the Anti-Carnapping Act by discouraging the entry of false
information in the LTO databases and to ensure uniqueness of every motor vehicle compo-
nent, only alpha characters from A to Z and numeric from 0 (zero) to 9 (nine) shall be
inputted in the encoding of the engine and chassis numbers. n other words, all special
character such as asterisk (*), dash (-), space ( ), etc., should not be inputted.
To illustrate, engine number 4K-12345 should be encoded in this manner 4K12345
and chassis number PMSS-12345-C should be encoded as PMSS12345C, note the re-
moval of the dash (-) and the space ( ).
All orders and memoranda that are in conflict herewith are hereby superseded.
Assistant Secretary
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Memorandum of the Bureau of Customs Dated March 3, 2009
Re: CMO 7-2009 Electronic Transmission of the Certificate of
Payment/Clearance (e-CPC) to the Land Transportation Office
Everyone is enjoined to take note of the new policy of the Bureau of Customs provided
in the above-cited BOC Memorandum specifically item number 2 thereof, which says
that:
814
2) n lieu of the Certificate of Payment document, the broker/importer has to
present to LTO the official receipt issued by the Collection Division and the
corresponding mport-Entry and Revenue Declaration (ERD) (among other
documents that may be required by said agency for registration purposes)
n view thereof and in preparation for the full implementation of the LTO-BOC
nterconnectivity Project, stock reports of manufacturers, assemblers, and importers of
motor vehicles and/or its components with its BOC-CP electronically transmitted to LTO
by BOC shall no longer pass through the CPEU and can be processed directly at LTO
regional offices or at the Registration Section, Central Office.
All concerned are likewise advised that all transmitted e-CPs or e-ORs bear a prefix B
or R, respectively. Hence, reporting and/or retrieval of these e-CPs or e-ORs from the
database should follow the same format. For example, CP number 12345 should be input-
ted as B12345.
For compliance.
Assistant Secretary
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Land Registration Authority (LRA) Electronic Registration
of Transactions on Chattel Mortgage
Attached is a letter* from Mr. Benedicto B. Ulep, Administrator, Land Registration
Authority dated May 4, 2009 citing reports that LTO does not recognize the new Official
Receipt and the electronic stamp in the relevant chattel mortgage being issued by LRA to
its clients.
Hence, LRA advises LTO and furnishes this Office copies of the mplementing Guide-
lines on Electronic Registration of Chattel Mortgage and Other Personal Properties offi-
cially published on January 17, 2009 in the Philippine Daily nquirer and LRA Circular No.
04-2009 approved on March 17, 2009, relative to collection of T Service Fees.
n this connection, you are advised to recognize the new Official Receipt being issued
to LRAs clients and the electronic stamp in the relevant Chattel Mortgage documents.
For your information, guidance and compliance.
Assistant Secretary
o 0 o
Office Order No. ACL-2009-148
Authority for LTO San Carlos City Negros Occidental
District Office to Operate Under the LEAP Program
Pursuant to Memorandum Circular No. 2003-481 dated 30 September 2003 relative to
the decentralization of post evaluation of drivers license applications and production of
card type drivers license in some designated LTO Licensing Centers nationwide, the LTO
San Carlos City District Office is hereby authorized to operate under the LTO Enhance-
ment Activity Project (LEAP).
t is hereby emphasized that the following licensing transactions are covered by this
order:
a. All new drivers license/Conductors license applications;
b. Renewal of drivers license subject for re-examination;
c. Application for additional restriction code/s;
d. Application for change status;
e. Application for change name and birth year/date; and
f. ssuance of student driving permit
As stated in the abovementioned Memorandum Circular (attached hereto*), all con-
cerned officials and employees are directed to strictly comply with the licensing rules and
regulations and to discharge their duties in accordance with the highest standards of
public service.
This Order shall take effect on 15 June 2009.
All previous Orders/Memoranda inconsistent herewith are hereby deemed superseded.
Assistant Secretary
o 0 o
816
Memorandum
Implementation of Operational Guidelines and Procedures for
the General Services Section (GSS) Motor Vehicle Custodian
n view of the Audit Observation Memorandum of the Commission on Audit dated 03
March 2009 that there are apprehended motor vehicles being turned over by deputized
agents and other law enforcement units to non MV Custodian of LTO Central Office. More-
over, there are motor vehicles being turned over by law enforcement officer to the security
guard without the necessary impounding receipt of motor vehicle (RMV) and temporary
operators permit (TOP). These motor vehicles are being parked/stored inside the LTO
compound/impounding area and being released without charging the necessary fines/
penalties. This practice deprived the government of revenues and much needed parking
space or impounding slot which could have been used for the legitimate impounded motor
vehicles.
With the recommendation of the COA to transfer the custody of the impounded motor
vehicles of LTO Central Office to the General Service Section (GSS) and in order to strengthen
the control over the custody of impounded motor vehicles, hereunder are the Operational
Guidelines and Procedures for the GSS motor vehicle custodian:
1. RECEIVING OF IMPOUNDED MOTOR VEHICLE
1.1 The apprehending officer (AO) shall accomplish the mpounding Receipt of Motor Vehicle
(RMV) at the impounding area which shall be validated by the Motor Vehicle Custodian
(MVC). The AO shall accomplish the following:
1. owner of the vehicle
2. complete address of the owner
3. complete name of driver
4. complete address of driver
5. telephone number
6. license number
7. DLR number
8. MV plate number
9. make of MV
10. type of body
11. year model
12. date and time
13. print name and signature in AO box
1.2 The MVC shall supervise/order the stenciling of the chassis and motor numbers on
the MVR form thus counter checking with the AO for possible additional violations to
be indicated in the TOP.
1.3 The MVC together with the assigned security guard shall then inspect the motor
vehicle and accomplish the following in the RMV:
1. chassis and motor numbers
2. vehicle checklist
3. accessories inside mv
4. general condition of mv
5. agency/office
6. mv turned over to boxes
1.4 The MVC shall ensure that the RMV is properly filled-out before he/she signs in the
mv turned over to box of the RMV. No motor vehicle shall be accepted in the impounding
area without the accomplished RMV and TOP.
1.5 The MVC shall maintain file copies of the following, for encoding and for his/her
submission to the Chief, LES together with the daily report on impounded motor
vehicles.
1. 3
rd
copy (yellow copy) of RMV
2. chassis and motor numbers on MVR form
3. Xerox copy of TOP
1.6 For security purposes, the security guard will be furnished a copy of the following:
1. RMV
2. TOP
1.7 n cases when MVC is off duty, the security guard may be allowed to receive impounded
vehicles in accordance with procedures 1.2 to 1.3 and shall turn over the same on the
first office hour of the following working day to the MVC.
2. RELEASING OF IMPOUNDED MOTOR VEHICLE
2.1 No impounded motor vehicles will be released without the following documents given
by the registered owner/driver.
1. Official Receipt for fine/penalty (xerox copy) plus presentation of original copy for
counter checking.
2. RMV with TOP (xerox copy)
3. Endorsement signed by the Assecs Office (xerox copy) with original stamped
For Release, signed by the Chief, LES/Chief Custodial Section indicating the
date and time.
4. TAS resolution (xerox copy)
The above documents shall be retained by the MVC for filing.
2.2 No impounded motor vehicles will be released or allowed exit by the security guard
without the duly approved gate pass from the MVC.
2.3 Cut-off time for the release of impounded motor vehicle is 5:00 PM, Monday to Friday
except holidays.
818
3. ACCOUNTABILITY
The motor vehicle custodian and/or the security guard assigned thereat shall be ac-
countable for any lost/missing impounded motor vehicle, and for any item in the impounded
mv when the same has been indicated in the checklist, as circumstances warrant.
Apprehended motor vehicle/s not properly turned-over to the MVC/security guard shall
be the responsibility of the apprehending officer/s.
4. SUBMISSION OF REPORTS
The MVC shall submit the following reports:
4.1 Daily report on impounded motor vehicle (LES Form No. 003) with the 3
rd
copy (yellow
copy) of the RMV to the Chief, LES.
4.2 Daily report on release of impounded motor vehicle (LES Form No. 004) to the Chief,
LES.
4.3 Monthly report on impounded motor vehicles (LES Form No. 005) to the Chief, LES
4.4 Monthly report on impounded motor vehicles not claimed for more than six (6) months
n order to maximize the use of the Central Office compound, impounded motor ve-
hicle/s at the CO compound not claimed within one (1) month from the date of apprehen-
sion shall be transferred to Las Pinas impounding area and/or other designated impound-
ing area of the LTO. The MVC and security guard who will be escorted by a LES law
enforcer are authorized to transfer the impounded motor vehicle.
Assistant Secretary
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Alarm on Drivers Licenses During Renewal
Complaints have reached the Office of the Assistant Secretary that applications for
the renewal of drivers licenses have been denied on the ground that the drivers licenses of
the applicants are on alarm. nquiry revealed that the drivers licenses on alarm only per-
tain to the same first names and surnames but are different from the one issued to the
applicants whose applications were denied.
n view of this, ALL LTO Officials and Personnel concerned are hereby directed to
establish the true identity of each drivers license on alarm vis--vis that of the applicants;
and, if the two (2) differ, the application for renewal should not be denied on the ground of
the alarm.
Assistant Secretary
o 0 o
Interim Procedure for Application of Fines and Penalties
Per Memorandum Dated 31 March 2009
Per Memorandum dated 31 March 2009, re: Application of Fines and Penalties to
Violations Committed Before the Effectivity of DOTC Department Order No. 2008-
39, offenses committed after March 1, 2009 shall be penalized under DO No. 2008-39 and
the counting of offenses shall start from zero (0) while offenses committed before March 2,
2009 shall be penalized under DO No. 93-693.
By the last week of June 2009, the LETAS shall implement the above-mentioned
provisions with limitations on the violations before March 2, 2009. n order to correct the
fines, the following interim procedure is hereby promulgated for implementation:
1. Upon evaluation that the fine/s are incorrect, the evaluator shall cancel the transaction
and advise the applicant to come back after three (3) working days;
2. A Request for System Update (RSU) shall be prepared duly approved by the Approving
Officers;
3. RSU shall contain the following (please see attached sample*)
y Correct fine/s based on DO 93-693
y Screen shot of transaction with wrong fine/s
4. RSU implementation will be forwarded to Customer Care for implementation within
three (3) working days.
5. Once implemented, the Evaluator can process the transaction.
This interim procedure shall be followed until the full delivery of LETAS in System Build
112.
820
Assistant Secretary
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Certificate of Stock Reported (CSR) Forms
This has reference to Memorandum Circular No. ACL-2009-1146 dated 11 May 2009
relative to the printing of CSR in the ordinary bond paper beginning 15 May 2009.
n view hereof, please be informed that the printing of CSR in the prescribed form shall
resume starting 08 June 2009. Furthermore, please take note that CSRs printed in ordi-
nary bond paper after 06 June 2009 presented as a requirement of registration shall be
considered null and void.
For your information and proper guidance.
Assistant Secretary
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Amendment to MC-AHS-2008-1012 on the Issuance of CEC Forms
The following additional guidelines for issuance of CEC forms are hereby adopted, to
wit:
1. The purchase of CEC forms shall be reckoned from the date of last purchase.
To illustrate: f the PETC will buy CEC forms in April 5; it shall be based on March 15
to April 5
2. The use by a PETC of a series number allotted to another shall be penalized with
suspension or cancellation of authorization.
3. No CEC forms shall be issued to PETCs with expired authorization unless they show
the renewal of their authorization or its equivalent receipt.
4. For any cancelled/void and invalid CECs, PETCs shall attach the same before
replenishment.
5. Upon cancellation of Pay Order Slip, PETCs shall immediately submit an explanation
in writing accordingly.
6. The Database Administrator (PETC mage Repository Server) shall be authorized to
allocate the total number of CECs to be given to PETCs and sign the P.O.S.
n the absence of Mr. Rector C. Antiga, Database Administrator, Atty. Benjamin
F. Mora, The Chairman C.O PETC Monitoring Team, Mrs. Anabella A. Cruz,
Chief of Property Section and Mr. Danny J. Encela, Operation Division shall
sign the P.O.S.
The memorandum circular takes effect immediately and modifies/supersedes previ-
ous guidelines inconsistent herewith.
Assistant Secretary
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Supplemental I.T. Guidelines on Emission Testing Requirements
n view of the reported continuous proliferation of Non-Appearance of motor vehicles
in emission testing, a direct violation of Department Orders Nos. 2005-34 and 37 and
Memorandum Circular Nos. RB-2007-883 and Memorandum dated 21 April 2008, Supple-
mental .T. Guidelines on Emission Testing requirement are hereby formulated, as follows:
1. Picture of motor vehicle/s must be saved on the database format rather than directory
base.
2. Only one (1) computer, if test machine is dual-gas & diesel or two (2), if test machine is
being used separately for gas & diesel, per lane shall be allowed for emission tests.
Strictly there shall no back-up computer/s.
3. nterface cable must be one (1) per (test equipment) machine and the Client program of
the .T. Provider must be capable of detecting if the said cable is defective.
4. No Laptop Computer, LCD or extra webcam shall be allowed inside PETCs premises.
Presence of these equipment shall give rise to the presumption of violation of these guide-
lines.
822
5. No pictures (motor vehicle) shall be saved on the PETCs computer/s Harddisk, USB or
any external drive or discs.
6. Only the following Certificate of Emission Compliance supported by the clear picture of
motor vehicle taken during testing with the following details, shall be accepted:
a) visible (rear side of motor vehicle) plate number, if improvised (plate number)
then the owner/technician of motor vehicle must attach a xerox copy of
certification/authorization from LTO to use said plate number before conducting
emission test.
b) test probe (inserted at tailpipe)
c) technician (who conducted the test)
d) LTO logo (upper right side of CEC paper)
e) if the color of motor vehicle (picture) differs from the certificate of registration,
the owner/technician must attach pertinent documents to justify that said motor
vehicle has undergone change color before conducting emission test.
7. No other application program (software) shall be present or installed which is suscep-
tible or contributory to the editing or tampering of processed information, to wit:
a) Bitmap/Vector Editing Software Photoshop (Macromedia or Adobe
versions), Coreldraw, Fireworks and the likes;
b) Virtual Camera Applications Anycam, Vsoft, VirtualCam and the likes;
c) Emission Result Editing Software usually disguised as a game, media
player or mp3. Which are mostly installed in USB or any external drive or
discs.
8. PETCs are allowed to use only the series number of CECs which are officially allocated
or issued to them.
Failure by PETCs and .T. Service Provider/s to comply with the herein Supplementary
.T. Guidelines on Emission Testing Requirements shall be deemed a violation subject to
the penalties as prescribed in Section 10.1 of the Department Order No. 2005-37.
All Orders/Circulars/Memoranda issued in conflict or inconsistent herewith are deemed
superseded and/or modified accordingly.
Assistant Secretary
Flag State Administration Advisory No. 2009-05
Replacement of Certificate of Vessel Registry (CVR)
with Certificate of Philippine Registry (CPR)
Pursuant to the provisions of Regulation XV/3.2 of the PMMRR 97, as amended,
effective 01 April 2009.
All ships to be registered under the Philippine flag shall be issued a Certificate of
Philippine Registry.
Owners/operators of all ships with valid Certificate of Vessel Registry (CVR) are re-
quired to surrender original copy of the CVR for replacement with a Certificate of Philippine
Registry. n case of mortgaged ships, the mortgagee may apply for the replacement.
Owners/operators who will apply for issuance and/or renewal of safety documents
and/or licenses shall be required to submit the original CVR starting 01 April 2009 for
replacement at cost in accordance with MC 2005-001.
Owners/operators of all ships issued a Provisional Certificate of Vessel Registry shall
follow the guidelines provided under MARNA Advisory No. 2009-02 dated 06 February
2009 and this Advisory.
(SGD.) MARA ELENA H. BAUTSTA
Administrator
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MARINA Advisory No. 2009-06
Suspension of the Conduct of MARINA Licensure Examinations
for Harbor Pilot, Major Patron (MAP), Minor Patron (MIP),
Boat Captain (BC), and Marine Diesel Mechanic (MDM)
Please be advised that in view of the fact that the appointments of the Members of the
Panel of Examiners expired on 14 February 2009, the conduct of licensure examinations
for Harbor Pilot, MAP, MP, BC and MDM are hereby TEMPORARILY SUSPENDED.
Please be further informed that announcement of examinations for MAP, MP, BC and
MDM on 19 March 2009, and Harbor Pilot Examinations on 25-27 March 2009 were not
authorized by the Administrator.
824
Announcements as to the resumption of the conduct of examinations will be issued
as soon as all necessary arrangements have been undertaken.
We apologize for the inconvenience these may have caused you.
Administrator
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Measures to Prevent and Suppress the Acts of Piracy and
Armed Robbery Against Ships Off the Coast of Somalia
With alarming increase in the number of acts of piracy in the waters off the coast of
Somalia against ships, the nternational Maritime Organization (MO) has issued several
maritime safety circulars which contain preventive measures and recommendations to
prevent and suppress these nefarious acts.
Taking into account the negative effects of piracy and armed robbery against ships in
human lives, the safety of navigation and the environment, all concerned shipping compa-
nies, ship operators, ship managers, ship masters, charterers, crew and other maritime
entities concerned are required to implement fully the preventive measures as provided in
the MO Circulars, as follows:
1. Maritime Safety Committee (MSC)/Circular 622/Rev. 1 Recommendations to
Governments for preventing and suppressing piracy and armed robbery against ships.
2. MSC/Circular 623/Rev. 3 Guidance to shipowners and ship operators, shipmasters
and crews on preventing and suppressing acts of piracy and armed robbery against
ships; and
3. MSC.1/Circular 1302 Piracy and Armed Robbery Against Ships in Waters Off the
Coast of Somalia.
Further, the concerned parties are required to perform the suggested measures, as
follows:
1. that shipmasters should not, unless unavoidable, plan their passage within 600 nautical
miles of the Somali coast in the Western ndian Ocean;
2. to accept the advice of Maritime Security Centre Horn of Africa (MSCHOA) and the
nternational Chamber of Shipping (CS) as provided in MSC.1/Circular 1302;
3. unless operating under national schemes, register the intended movement of their
ships with MSCHOA via the website www.mschoa.org;
4. unless operating under national schemes, report the navigation route of their ship to
the United Kingdom Maritime Trade Operations (UKMTO) Dubai and the nternational
Maritime Bureau when navigating through the Gulf of Aden and/or the Western ndian
Ocean;
5. take prompt action in response to any alerts or guidance issued by MSCHOA, UKMTO
Dubai, Maritime Liaison Office (MARLO) Bahrain, the nternational Maritime Bureau
Piracy Reporting Centre (MB PRC), ALNDEN (Tel: +33(0) 483161097
alilendien@free.fr) or any coastal State authority in the region so as to minimize the
risk of attack; and
6. report any attacks or suspected pirate activity to UKMTO Dubai (Tel: +97 1504423215
ukmto@eim.ae) or MB PRC (Tel: +60 3203 10014 imbkl@icc-ccs.org/piracy@icc-
ccs.org) immediately, with further reports to MSCHOA (opscentre@mschoa.org) and
the regional Maritime Rescue Coordination Centre as soon as possible; and
7. the crew onboard a ship should be aware of the existing MO circulars/issuances
relative to measures and recommendations to prevent and suppress piracy and armed
robbery against ships.
The aforementioned Circulars can be found in the MO website at http://www.imo.org.
Finally, all concerned parties are required to report case(s) of piratical attacks or
armed robbery against their ship/s to any of the following hotlines of the government agen-
cies concerned which are on a 24/7 operational schedule:
Name of Agencies/Contact Persons Telephone Nos./ Fax Nos.
Hotlines
1. Maritime ndustry Authority (0632) 524-9126 (0632) 523-9078
Hon. Maria Elena H. Bautista (0632) 536-0598 (0632) 524-7718
Administrator
e-mail: ehb769@yahoo.com
2. Philippine Coast Guard (0632) 527-8481 (0632) 527-3868
Hon. Wilfredo D. Tamayo up to 85
Commandant
e-mail: wdtamayo@yahoo.com
3. Philippine Navy (0632) 524-2061 (0632) 523-4801
Hon. Ferdinand S. Golez (0632) 525-4987
Vice Admiral
e-mail: hpn.ofoic@yahoo.com
4. Office for Transportation Security 0915-2603650 (0632) 833-3350
Hon. Cecilio R. Penilla (0632) 833-3350 (0632) 855-2418
Administrator
email: spenilla@pldtdsl.net
826
5. Department of Foreign Affairs (0632) 834-3333 (0632) 831-4767
Hon. Alberto G. Romulo (0632) 834-4000
Secretary loc. 3333
email: osec@dfa.gov.ph
6. Philippine Ports Authority (0632) 527-6436 (0632) 527-4853
Hon. Oscar M. Sevilla (0632) 301-9065
General Manager
email: oms 2123@yahoo.com
7. Philippine National Police (0632) 722-1074 (0632) 722-1074
Maritime Group (0632) 725-3865
Hon. Villamor A. Bumanglag
Police Chief Superintendent
email: ado_mg@yahoo.com
For your guidance and strict compliance.
Administrator
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Implementation of IMO Unique Company and
Registered Owners Identification Number Scheme
Notice is hereby given that the Maritime ndustry Authority (MARNA) is adopting the
nternational Maritime Organization (MO) Maritime Safety Committee Resolution No.
160(78) adopted on 20 May 2004 (copy attached*) on the implementation of the MO
unique company and registered owner identification number scheme.
The MO unique company and registered owner identification number should be in-
serted on the following documents.
1. Document of Compliance; Safety Management Certificate; nterim Document of Compli-
ance; and nterim Safety Management Certificate required by the nternational Safety
Management Code;
2. Continuous Synopsis Record required by the nternational Convention on the Safety of
Life at Sea (SOLAS), 1974, as amended, Chapter X-1, regulation 5; and
3. nterim nternational Ship Security Certificate, required by SOLAS, Chapter X-1, Part
A, Appendices 1 and 2.
All affected parties are hereby advised to secure amended ships document/s from the
MARNA as soon as possible to avoid any delays of the ship by the Port State Control
authorities.
This Advisory shall take effect immediately.
Administrator
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MARINA Circular No. 2009-03
Extension of Filing of Oath of Undertaking to Comply with the Provisions of
MARINA Circular 2009-01, Rules Governing the Mandatory Marine Insurance
to Cover Legal Liabilities Arising Out of Any Maritime Related Accidents
The MARNA Board in its 189th meeting held last February 27, 2009 has adopted a
resolution extending the filing of Oath of Undertaking to comply with the provisions of
MARNA Circular 2009-01 dated 04 February 2009 from noon 20th February 2009 to end of
March 2009.
The Board had also resolved that shipowners/operators who complied with the provi-
sions of the above-mentioned Circular on or before 20 February 2009 shall be awarded an
additional 5% discount on the tonnage fee due for the year computed using the rates for
first quarter payments, in addition to the 5% discount stated in Section V.6 of the said
Circular. Likewise, shipowners/operators who have submitted an Oath of Undertaking to
comply with the said Circular on or before 20 February 2009 shall be awarded a 5%
discount.
By the Authority of the MARNA Board:
Administrator
o 0 o
828
Establishment of MARINA Telephone Hotline 2985 (AZUL)
Pursuant to the relevant provisions of Presidential Decree No. 474, Executive Order
No. 125/125-A, and Republic Act No. 9295, and in accordance with Section 5, Republic
Act No. 9485 or the Anti-Red Tape Act of 2007, the MARNA Telephone Hotline and SMS
are hereby established.
I. OBJECTIVES
1. To facilitate the reporting of maritime-related violations due to non-compliance of interna-
tional conventions, national laws, circulars, rules and regulations, complaints, grievances,
and observed suspicious or illegal / unlawful activity on board Philippine-registered domes-
tic ships.
2. To provide supplemental tools that would further enhance the enforcement functions of
the MARNA in order to achieve a higher rate of compliance with applicable maritime laws,
rules and regulations, policies and other issuance.
3. To provide mechanism by which the clients of MARNA may adequately express their
complaints, comments or suggestions.
II. COVERAGE
This Circular covers all reports of non-compliance, maritime-related violations, com-
plaints, grievances, observed suspicious or illegal / unlawful activity on board Philippine-
registered ships, comments, suggestions and other types of maritime-related issues com-
municated through the MARNA telephone hotline and/or short messaging system (SMS).
III. DEFINITION OF TERMS
1. Complaint / Grievance refers to an expression of discontent/dissatisfaction against
an unjust act.
2. Maritime violation refers to non-conformity or non-compliance to applicable mari-
time laws, rules and regulations, policies, and other issuances.
3. Suspicious Illegal/Unlawful Activity refers to any behavior that is indicative of a
potential security threat to a ship or person.
IV. GENERAL PROVISIONS
1. All concerned individuals are strongly encouraged to report non-compliance, maritime-
related violations, complaints, grievances, observed suspicious or illegal/unlawful activi-
ties on board Philippine-registered ships as well as feedback, comments, suggestions,
recommendations, and requests for assistance, through the MARINA Telephone Hotline
No. 2985 (AZUL). AZUL shall be accessible to all SMART, GLOBE and SUN cellular
subscribers.
2. The MARNA SMS 2985 (AZUL) customer care service can also provide news, updates,
and other information to its partners, suppliers, clients, and the public at large.
3. The MARNA telephone hotline and SMS service shall be available and dedicated to
receive or accommodate calls or reports or feedback 24 hours a day.
4. All domestic ship owners or operators and ship Masters are required to post or display
the MARNA Hotline posters in conspicuous places on board their ships and terminals for
the information of crewmembers and passengers.
5. All port authorities are enjoined to provide billboards of MARNA Hotlines in their com-
pound visible to all domestic ship owners or operators, ship Masters and passengers.
6. nformation provided by the callers, particularly those reports relating to non-compli-
ance, maritime-related violations, complaints and grievances, shall be treated as confiden-
tial.
V. SPECIFIC PROVISIONS
1. When making a report of non-compliance and maritime-related violations either thru call
or text, the caller/texter shall provide, whenever possible, the following information:
a. The nature of non-compliance or violation
b. The company or person(s) involved in the non-compliance or violations
c. The name of the ship
d. Any evidence that is available
e. Date, time, & location the non-compliance or violation was committed
2. The MARNA SMS service 2985 does not need any form of registration for reports of any
maritime violation. Any individual may text through MARINA<space><name/message>
and send to 2985.
Example:
MARNA Juan dela Cruz/MV MARNA overloaded passengers for Manila-Boracay trip,
Jan 25 2009 2pm.
This message will receive an automated reply from MARNA.
3. Any individual may also text MARINA<space>HELP to 2985 to receive instructions in
using the service, and other relevant information.
The HELP keyword will receive the automated reply, as follows:
MARNA: We are glad to be at your service! To send your comments,
suggestions, complaints, and other concerns, just text MARNA<NAME/YOUR
MESSAGE> and send to 2985.
4. Anonymous reports particularly those which are supported by adequate information
and documented evidence shall be acted upon, while those with no pertinent details or
830
which are stated in a very general manner and not directed to a specific person or
action shall be outrightly disregarded.
5. Reports or complaints/grievances that suggest substantial violations of laws, rules
and regulations shall be investigated promptly to determine their veracity.
6. Each report or feedback received shall be properly acknowledged, and shall be assigned
a reference or case number. The MARNA hotline texters/callers may be given another
number to use if they call again to supply additional information or to inquire about the
progress of the investigation. The reporting persons shall be properly advised of the
action taken until the final resolution of the matter.
7. Each valid report shall be forwarded to the MARNA deputized agent designated in the
area for proper action and upon verification of the violation, the MARNA deputized
agent shall text back 2895 (AZUL) to confirm the report.
8. Each individual who sends a complaint or report of maritime violation/s through SMS
2985 (AZUL), duly validated by a MARNA deputized Agent, shall be entitled to a
reward of P50 worth of cellphone load.
VI. SANCTIONS
Domestic shipowners or operators and ship Masters that failed to post or display
MARNA Hotline posters in conspicuous places on board their ships and terminals shall
be subject to the following administrative fines:
First Offense - P10,000.00
Second Offense - P20,000.00
Third Offense - P30,000.00
VII. REPEALING CLAUSE
All MARNA Circulars, rules and regulations and issuances inconsistent herewith are
hereby amended or repealed accordingly.
VIII. EFFECTIVITY
This MARNA Circular shall take effect on 23 March 2009 after its publication once in
a newspaper of general circulation.
By Authority of the Board:
Administrator
o 0 o
Legalization of Unregistered Motor-Bancas
Operating in the Philippine Waters
Pursuant to the pertinent provisions of Presidential Decree (PD) No. 474, Executive
Order (EO) No. 125, as amended, and Republic Act (RA) No. 9295.
I. OBJECTIVE
This Memorandum Circular aims to ensure that all motor-bancas operating in Philip-
pine waters are properly documented.
II. COVERAGE
The provisions in this Memorandum Circular shall apply to all unregistered motor-
bancas operating in Philippine waters regardless of size.
III. DEFINITIONS OF TERMS
1. Administration - refers to the Maritime ndustry Authority.
2. Boat Builder - refers to a person or entity duly licensed by the Administration to construct/
build a motor-bancas.
3. Builders Certificate - refers to a certificate issued by the Boat Builder to the boat-owner/
operator attesting the complete construction/building of motor-banca.
4. Motor-Banca - refers to a traditionally built watercraft, predominantly wooden-hulled
and propelled mechanically with or without an outrigger.
IV. GENERAL PROVISION
All motor-bancas regardless of their size and utilization shall be required to be regis-
tered under this Circular.
V. SPECIFIC GUIDELINES
1. Existing motor-bancas shall comply with the following documentary requirements sub-
ject to evaluation and approval by this Authority:
a. Side view picture with the name of the motor-banca (size: 5"x7");
b. Affidavit of Ownership or Deed of Sale; (see Annex 1*, as attached)
c. Affidavit of Admission; (see Annex 2*, as attached)
d. Post Construction Plans or Sketch, as applicable; and,
e. Stencil of vessels engine and information on the kind of transmission/propeller.
832
2. New building motor-bancas shall initially submit the required Construction Plans or
Sketch, as applicable and acquire the necessary permit from this Authority prior to com-
mencing the boat building.
3. The aforementioned provisions under this Section shall be complied with and subject to
the motor-banca admeasurements/sea-trial testing by this Authority prior to registration.
VI. VALIDITY
The Certificate of Philippine Registry of the motor-bancas shall have a maximum valid-
ity of five (5) years reckoned from the year of registration.
VII. PENALTIES AND SANCTIONS
Any violations of or failure to comply with the provisions of this Circular shall be sub-
ject to the following fines and penalties exclusive of the appropriate filing fee:
1. P 250.00/gt starting from the effectivity of this Circular up to 30 June 2009; and
2. P 500.00/gt starting from 01 July 2009 to 31 December 2009.
VIII. TRANSITORY PROVISION
All issued Certificate of Number (CN) shall be replaced with Certificate of Philippine
Registry (CPR) by 30 June 2009 after payment of the corresponding fees under existing
Circular and its subsequent amendments thereof.
IX. REPEALING CLAUSE
Any MARNA Circulars/issuances or parts thereof which are inconsistent with this
Circular are hereby repealed, modified or amended accordingly.
X. EFFECTIVITY
This Circular shall take effect fifteen (15) days after its publication once in a newspa-
per of general circulation.
Administrator
o 0 o
License Plate Requirement for Shipyards, Boatyards,
and Ship Repair/Shipbreaking Yards/Shops
Pursuant to Section 2 of Presidential Decree No. 474, Executive Order No. 125/ 125-
A, Republic Act. No. 9295 and Presidential Decree No. 666, the following regulations are
hereby adopted.
1. For purposes of more effective identification, monitoring and enforcement, all entities/
establishments registered by the MARNA to engage in shipbuilding/boatbuilding, ship
repair and shipbreaking are hereby required to acquire and display in their premises a
License Plate, as designed and produced by this Authority.
2. A License Plate shall be sold to entities covered by this Circular at reasonable/actual
cost of not more than P500.00.
3. The License Plate shall have a validity of nine (9) years which shall correspond with the
expiry date of the entitys Certificate of Registration. The initial License Plate to be issued
however, will have a validity of less than nine (9) years but not more than six (6) years,
depending on the expiry date of the Certificate of Registration of the concerned entity.
4. Possession and display of the herein required License Plate shall become mandatory
to all covered entities starting 01 June 2009.
5. Subsequent to the issuance of the License Plate to a registered entity, and upon favor-
able result of the annual inspection conducted thereat, a sticker reflecting the year of
inspection shall be affixed by the MARNA inspector(s) to the License Plate of the entity,
also for purposes of easier determination of compliance with the annual inspection require-
ment.
6. Non-possession of the herein required License Plate by a concerned entity after 01
June 2009 shall, after due process, provide the basis for the imposition of a penalty of P
5,000.00 + 30-day suspension of the license for the 1st offense, and penalty of P10,000.00
+ revocation of license for the second offense.
This Circular shall take effect fifteen (15) days after publication once in one (1) news-
paper of national circulation or in the Official Gazette.
Administrator
o 0 o
Omnibus Rules on the Lay-Up of Vessels
834
Pursuant to Presidential Decree No. 474, EO 125/125A and Letter of nstruction No.
341 (LO 341) dated 28 November 1975 mandating the Maritime ndustry Authority (MA-
RNA) to declare vessel lay-up centers, oversee and coordinate with the various activities/
programs of government offices relative to the supervision and regulation of the lay-up
centers in the Philippines, the following rules are hereby adopted:
I. OBJECTIVE
This Circular shall prescribe the general policy, rules and procedures for the following:
1. the declaration of lay-up centers;
2. accreditation of lay-up agents; and
3. issuance of lay-up permit and departure clearance
II. COVERAGE
This Circular shall apply to:
1. all persons, corporations, firms and entities engaged or intending to engage in the
business of vessel lay-up;
2. all foreign vessels due for lay-up; and
3. all possible centers or sites which the MARNA may find suitable for vessel lay-up.
1. Certificate of Accreditation refers to the document issued to a lay-up agent upon
compliance with the requirements under this Circular.
2. Principal Officers are those occupying positions in the company such as general
manager, chief operating officer, marine superintendent or similar positions that require the
daily supervision and management of marine and business activities.
3. Lay-up Center refers to the anchorage areas in Malalag Bay, Pujada Bay Mayo Bay
and Bunawan Bay within Davao Gulf, designated by the Philippine government for use as
lay-up sanctuaries for unemployed foreign vessels, and other areas declared by the MA-
RNA.
4. Vessel Lay-up refers to foreign vessel not actively employed availing the facilities and
sanctuary inside the lay-up center.
5. Vessel Lay-up Agent refers to a person or entity duly accredited under this Circular.
1. Only anchorage areas in Davao Gulf, particularly Malalag Bay, Bunawan Bay, Pujada
Bay, Mayo Bay and other lay-up sites declared by MARNA shall be used as lay-up cen-
ters of foreign vessels.
2. The Accreditation under this Circular shall serve as a pre-requisite to the grant of lay-up
permits and departure clearances to be issued by MARNA.
3. Before a foreign vessel can be laid-up in any of the declared lay-up center, the services
of a lay-up agent must be procured.
4. All foreign vessels due for lay-up shall be represented by a designated accredited lay-
up agent for the duration of the lay-up period.
5. All foreign vessels due for lay-up are required to comply with the procedural guidelines
for the use of lay-up centers in the Philippines as submitted by the concerned accredited
lay-up agent.
6. No foreign vessel shall be laid-up or leave from the vessel lay-up center without prior
permit from the MARNA which will be issued to the lay-up agent.
7. During the duration of the lay-up period, MARNA may at any reasonable time, conduct
on-site survey or inspection for general monitoring purposes in coordination with the
vessel lay-up agents representative.
8. The active participation of the Bureau of mmigration (B), Philippine Ports Authority
(PPA), Bureau of Customs (BUCUS), Philippine Coast Guard (PCG) and Bureau of Quar-
antine (BQ) shall be requested by MARNA through proper coordination more specifically
in the easing up or relaxation of normal administrative requirements relative to the entry,
lay-up and departure of foreign vessels and their crew to and from the lay-up centers
taking into account the interests of national safety and security.
9. The Authority shall coordinate with the Department of Environment and Natural Re-
sources relative to the identification and declaration of lay-up areas in consideration of
the marine environmental protection.
1. DECLARATION OF LAY-UP CENTERS
The declaration of an area by the MARNA as a lay-up center commences upon the
information gathered or received and verified by the MARNA containing the data below:
1.1 The area is out of the typhoon belt or, in the alternative, ships can be sufficiently
protected from storm or typhoon by natural shelter or cove.
1.2 Depth of water is 95 feet or deeper
1.3 Ocean current is minimal
1.4 Rise and fall of tide is approximately 4 feet or, in the alternative with predictable
movement
1.5 Anchorage and approach is free from hazardous underwater obstacles
1.6 The area is clear of shipping lanes and it has an open roadstead anchorages
836
1.7 The area is sheltered from all directions by surrounding hills
1.8 Water is pollution free.
Based on verification made by the MARNA it shall declare the area as lay-up center
and subsequently issue MARNA Advisory, copy furnished the MARNA Board.
2. ACCREDITATION OF LAY-UP AGENTS
2.1 Responsibilities of the Lay-up Agent
2.1.1 The Vessel Lay-up Agent shall coordinate with the MARNA in putting up of
necessary lay-up facilities and logistics, prior to operation.
2.1.2 The Vessel Lay-up Agent shall assume full responsibility in behalf of the foreign
vessel principal in all transactions with government instrumentalities and
consequently coordinate with all concerned government agencies relative to the
request for foreign vessel lay-up.
2.1.3 The Vessel Lay-up Agent shall only use the designated area by MARNA as
specified in the lay-up plan. Additional lay-up areas shall be approved by MARNA.
2.1.4 The Vessel Lay-up Agent shall at all times maintain Vessel Lay-up safety and
security measures to protect the marine environment and ensure the safety of
other vessels navigating within the designated area.
2.1.5 The Vessel Lay-up Agent shall provide full security and deploy security guards
onboard during the duration of the vessel lay-up.
2.2 Filing Of Application
2.2.1 Applications for accreditation shall be filed with the MARNA Central Office or in
the MARNA Regional Office with jurisdiction over the declared lay-up center.
2.3 Qualification Requirements For Accreditation
2.3.1 Nature of Business Undertaking
2.3.1.1 For corporation and partnerships, the laying-up of vessel shall be reflected
in the Articles of ncorporation or Articles of Partnership and duly
registered with the Securities and Exchange Commission (SEC).
2.3.1.2 For single-proprietorships, one of the major activities or concerns shall
be laying-up of foreign vessels and duly registered with the Department
of Trade and ndustry (DT).
2.3.2 Management Competence
2.3.2.1 The vessel lay-up agent shall have its principal officer or officers with at
least one (1) year maritime-related work experience.
2.3.2.2 The vessel lay-up agent must have adequate employed personnel for
coordination with various government offices and local government units
relative to permits or clearances attendant to foreign vessel lay-up, as
well as required arrangement.
2.3.3 Technical Capability
2.3.3.1 The applicant must have at its disposal tugboats, mooring buoys,
communication equipment and safety equipment and facilities capable
of assisting big ships going to and leaving the lay-up area.
2.3.3.2 The applicant must have at its disposal logistics vessel to cater to the
requirements of laid-up vessel and its crew for the duration of the lay-up.
2.3.4 Financial Capability
2.3.4.1 For corporations or partnerships or single-proprietorship and other
entities, a minimum paid-up capitalization of P5M shall be required.
2.4 Documentary Requirements
2.4.1 Letter of intent or application;
2.4.2 For Corporations or Partnerships SEC Registration Certificate including Articles
of ncorporation/partnership and By-Laws.
2.4.3 For Single Proprietorship DT Certificate of Registration including copy of the
original application form filed with DT.
2.4.4 For existing company, Latest Audited Financial Statement. For new company,
audited financial statement is not required.
2.4.5 Company profile indicating list of Principal Officers and their bio-data with
particular emphasis on experience in maritime-related activities.
2.4.6 List of vessel lay-up facilities and equipment in accordance with the MARNA
prescribed checklist of requirements.
2.4.7 Payment of the processing fee.
2.5 Validity Of Certificate Of Accreditation
The Certificate of Accreditation shall be valid for a period of three (3) years from the
date of issuance.
2.6 Reportorial Requirements
All MARNA accredited vessel lay-up agents shall submit the certified true copies of
the following reports or documents within the period herein prescribed:
838
2.6.1 Amendment of Articles of ncorporation (AO) or by-laws within thirty (30) calendar
days from the date of approval of said amendment with the SEC.
2.6.2 Replacement of any principal officers/directors within thirty (30) calendar days
thereafter, together with their BO-DATA.
2.6.3 A MARNA accredited lay-up agent shall submit quarterly report on vessels laid-
up, the status of the vessel lay-up or presently being laid-up.
2.6.4 Accidents or incidents encountered during the vessel lay-up shall be reported
immediately.
2.7 Withdrawal From Business Or Suspension Of Operations
Whenever a MARNA-accredited lay-up agent decides to withdraw from business or
suspends operations, a written notice of at least fifteen (15) days prior to said suspension
or withdrawal shall be submitted to the MARNA whereupon the latter shall suspend the
Accreditation of the lay-up agent. The Lay-up Agent shall automatically surrender to MA-
RNA the original Certificate of Accreditation issued.
3. ISSUANCE OF VESSEL LAY-UP PERMIT AND DEPARTURE CLEARANCE
3.1 Procedure in Securing Lay-up Permit and Departure Clearance
3.1.1 Prior to vessel lay-up, the lay-up agent shall apply to MARNA Central Office or
in the MARNA Regional Office with jurisdiction over the declared lay-up center
the following information of the vessel: ships particulars, country of registry,
owner, tentative schedule of lay-up period and expected time of arrival, crew list.
3.1.2 Upon submission of the required information mentioned above, the MARNA
shall issue the Authority to Accept Payment to the accredited vessel lay-up
agent.
3.1.3 The accredited lay-up agent shall pay the lay-up permit fee and the lay-up fee.
The lay-up fee is payable on every fifth working day of the month, and that the
account of the same shall be cleared prior to departure of the foreign vessel from
the lay-up site.
3.1.4 The MARNA upon receipt of required fees or charges shall issue the lay-up
permit per vessel to the lay-up agent. All concerned government authorities i.e.
BUCUS, B, BoQ and PPA shall be informed of the approval of MARNA requesting
their assistance.
3.1.5 The MARNA shall issue the departure clearance to the vessel lay-up agent only
upon showing that the departure clearance fee and the lay-up fees are paid in full
and shall coordinate with the concerned government agencies of the exact
departure of the foreign vessel.
Application for
Documents Lay-up Permit Departure Clearance
3.2.1 Letter of ntent 9 9
3.2.2 Copy of a Certificate of
Accreditation as lay-up agent 9
3.2.3 Date of arrival of foreign vessel
to be laid-up 9
3.2.4 Date of departure of foreign vessel 9
3.2.5 Foreign vessel information as
enumerated in item 3.1.1 under this
Section 9
VI. FEES AND CHARGES
Accreditation of Lay-up Agents - P 10,000.00 per application
ssuance of Lay-up Permit - 2,500.00 per permit
Departure Clearance - 2,500.00 per clearance
Lay-up Fee (Nominal):
Vessels below 50,000 DWT - US$ 91.00 per day
Vessels of 50,000 DWT - 150,000 DWT- US$ 104.00 per day
Vessels of above 150,000 DWT - US$ 117.00 per day
VII. FINES AND PENALTIES
1. Vessel Lay-up Agent without MARNA Certificate of Accreditation, the following
administrative fines shall be imposed:
First Violation P 5,000.00
Second Violation 10,000.00
Third and Succeeding Violations 25,000.00
2. Vessel Lay-up Agent with expired Certificate of Accreditation, administrative fines
equivalent to fifty percent prescribed under item 1 of this Section shall be imposed:
3. Failure to submit reportorial requirements.
4. Failure to comply with the other provisions of this Circular is subject to payment of the
following:
840
First violation - P 10,000.00
Second Violation - 15,000.00
Third Violation - suspension, cancellation, or revocation of
lay-up permit and Certificate of Accreditation
of Lay-up Agent
5. For late payment of lay-up fees, there shall be assessed a surcharge of 1.5% of the
amount due per month as prescribed under item 3 of this Section.
VIII. REPEALING CLAUSE
Memorandum Circular No. 156 is hereby repealed. Any other MARNA issuances
otherwise inconsistent herewith is modified or amended accordingly.
IX. SEPARABILITY CLAUSE
Should any provision or part of this Circular be declared by competent authority to be
invalid or unconstitutional, the remaining provisions or parts hereof shall remain in full force
and effect and shall continue to be valid and effective.
X. EFFECTIVITY
This Circular shall take effect immediately upon publication once in a newspaper of
general circulation.
Administrator
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Rules Governing the Compliance Monitoring
of Ships by Deputized Maritime Enforcers
Pursuant to the provision of Section 12 (f) of Executive Order No. 125, as amended,
which mandated the MARNA to enforce laws, prescribe and enforce rules and regulations,
including penalties for violations thereof, governing water transportation and the Philippine
merchant marine, and deputize the Philippine Coast Guard and other law enforcement
agencies to effectively discharge these functions, and in accordance with the Memoran-
dum of Agreement (MOA) duly executed and entered into on 16 March 2009 by and be-
tween the MARNA and the Philippine Coast Guard (PCG), Philippine National Police-
Maritime Group (PNP-MG), and Local Government Units (LGUs) through the Union of
Local Authorities of the Philippines (ULAP) and Liga ng mga Barangay (LB), the following
rules are hereby adopted:
I. OBJECTIVES
1. To provide rules in the conduct of compliance monitoring of ships by MARNA- depu-
tized maritime enforcers, in order to ensure uniformity and consistency in the conduct of
the same;
2. To ensure that all Philippine-registered ships and other ships engaged in domestic
operation duly comply with applicable maritime laws, rules and regulations; and
3. To ensure the effective implementation and enforcement of applicable maritime laws,
rules and regulations, policies and other MARNA issuances.
II. COVERAGE
All Philippine-registered ships and other ships engaged in domestic operations shall
be subject to compliance monitoring in accordance with the provisions stated herein.
For purposes of this Circular, the following terms shall mean, as follows:
1. Administration refers to the Maritime ndustry Authority or the MARNA.
2. Cease and Desist Order (CDO) refers to the issuance by the MARNA prohibiting a
person or domestic shipowner/operator from continuing a particular course of conduct or
operations due to serious deficiencies or violations of rules and regulations that would
pose imminent danger to lives, properties and environment.
3. Compliance Monitoring refers to a visit of duly deputized maritime enforcers on
board a ship to examine and check the validity, authenticity and completeness of relevant
ship and crew certificates and other documents, including the compliance with terms and
conditions of Certificate of Public Convenience (CPC).
4. Deficiency refers to a condition where compliance to maritime laws, rules and regu-
lations, policies, and other issuance is found wanting or inadequate.
5. Deputized Agents refers to agencies/organizations which are parties to the MOA.
6. Deputized Maritime Enforcers refers to employees/members of deputized agents
authorized by MARNA to perform compliance monitoring activities.
7. Detention refers to the act of preventing the ships from leaving port due to violations
presenting danger to the ship or persons onboard and harm to the marine environment.
8. MARINA Trainers refers to employees of MARNA who have been designated by the
Administrator and have undergone the necessary training for trainers.
9. Maritime Violation Receipt (MVR) refers to an accountable form issued on-site by
deputized maritime enforcers to the ship owners/operators/masters/crewmembers with
842
respect to any violation/s or deficiency/ies found during the conduct of compliance moni-
toring.
10. Ship refers to any kind, class, or type of craft or artificial contrivance capable of
floating in water, designed to be used, or capable of being used, as a means of water
transport in the domestic trade for the carriage of passengers or cargo, or both, utilizing its
own motive power or that of another.
11. Violation refers to possession/holding of expired/spurious/invalid certificates/docu-
ments of ship/boat and its crew including non-compliance with the terms and conditions of
CPC/SP/EP and such other rules and regulations prescribed by this Authority.
1. The MARNA through its deputized maritime enforcers shall further ensure that all
Philippine-registered ships and other ships engaged in domestic operations comply with
maritime laws, rules, regulations, policies and other issuance.
2. Only designated employees/members of the deputized agents who have met the quali-
fication and training requirement herein specified may be authorized by MARNA to act as
deputized maritime enforcers.
3. The deputized maritime enforcers shall wear the MARNA prescribed uniform and iden-
tity card when boarding a ship to carry out compliance monitoring activities.
4. Compliance monitoring activities shall be limited to areas specified under Annex-A of
the MOA.
5. Compliance monitoring of a ship shall be carried out unannounced during port stays and
shall be conducted in a manner that will not cause undue delay to the ships departure.
6. The conduct of compliance monitoring shall be limited to verifying that the appropriate
certificates and other documents of ship and its crew are valid and complete, and that the
terms and conditions of the Certificate of Public Convenience (CPC)/ Special Permit (SP)/
Exemption Permit (EP), as applicable, are complied with.
7. The deputized maritime enforcers shall be given access on board a ship for the purpose
of conducting compliance monitoring activities. The owner/operator or the master/boat
captain or duty officer of the ship is enjoined to extend assistance and full cooperation to
the deputized maritime enforcers in the conduct of their compliance monitoring functions.
8. The deputized maritime enforcers shall issue Maritime Violation Receipt (MVR), hereto
attached as Annex-1*, for any violation/s or deficiency/ies found during the conduct of
compliance monitoring of ship.
* Not Filed with ONAR.
1. Qualifications and Documentary Requirements of Deputized Maritime Enforc-
ers Duly designated or endorsed employees/members of deputized agents shall meet
the following qualifications criteria and submit the corresponding documentary require-
ments. Their designation/endorsement shall be accompanied by a duly accomplished
Personal Data Sheet (PDS), hereto attached as Annex-2*:
Qualification for PCG/PNP-MG Documentary Requirements
1. Permanent employee/member Appointment/Certificate of
Memberships or valid identity card
Qualification for ULAP/LB Documentary Requirements
1. Secondary Level DECS or School Certification
2. Good Moral Character * Police or Barangay Clearance; and
* Certificate of Good Moral Character
either from Parish Priest, School
Principal, Religious Leaders, or
Barangay Captain
2. Training Requirements:
2.1 The duly qualified employees/members of deputized agents shall undergo training on
the following areas/subjects:
2.1.1 Historical background, organization, and functions of the MARNA;
2.1.2 MARNA policies, rules and regulations;
2.1.3 Ships/motor bancas documents and certificates to include terms and conditions
of CPC;
2.1.4 Ships crew licenses and certificates;
2.1.5 Compliance monitoring procedures; and
2.1.6 Responsibilities and accountabilities of deputized maritime enforcers.
The above training shall be conducted by qualified MARNA trainers and will be
complemented by on-site or on-the-job training to ensure that participants have acquired
adequate knowledge, competence and skills in the conduct of compliance monitoring
of ships.
2.2 After completion of the training, the participants shall be issued a Certificate of
Attendance and an official deputation identity card, hereto attached as Annex-3*, which
shall serve as their authority to conduct compliance monitoring activities in their
respective areas of jurisdiction.
2.3 Deputized maritime enforcers shall undergo refresher trainings to update them of the
recent developments and current MARNA policies, rules and regulations.
844
3. Procedures in the Conduct of Compliance Monitoring:
3.1 Compliance monitoring of ships shall be carried out at least two (2) hours prior to
departure and 30 minutes prior to departure of motor bancas.
3.2 The deputized maritime enforcers shall use the appropriate Compliance Monitoring
Report Form (CMRF), containing the inspection checklists/items, hereto attached as
follows:
3.2.1 Annex 4* and Annex 4A* - For use of deputized maritime enforcers of PCG and
PNP-MG;
3.2.2 Annex 5* - For use of deputized maritime enforcers of ULAP and LB.
3.3 Upon boarding the ship/boat, the deputized maritime enforcers shall introduce
themselves to the ship master / boat captain or duty officer in an orderly manner and
explain the nature, purpose, details and scope of the monitoring to be carried out.
3.4 The deputized maritime enforcers shall then proceed to examine and verify the validity
and completeness of certificates and documents of the ship/boat and its crew including
compliance with the applicable terms and conditions of the CPC/SP/EP.
3.5 A Maritime Violation Receipt (MVR) shall be issued for any violation/s found and reported
in the CMRF. Copies of invalid or spurious certificate or document, and photographs of
violation/s committed shall form part of the CMRF. For violation/s considered serious
in nature so as to pose imminent danger to life, property and marine environment,
detention of the ship shall be recommended in accordance with the Guidelines for the
Detention of Ship set forth in paragraph 7.
3.6 f the relevant certificates and documents are valid and found in order, and in compliance
with the applicable terms and conditions of the CPC/SP/EP, the deputized maritime
enforcers shall accomplish and issue the appropriate CMRF.
3.7 The ship/boat master or duty officer shall be required to sign the CMRF and the MVR,
as applicable, to confirm that he is in agreement with the findings/results of the
compliance monitoring. The deputized maritime enforcers shall ensure that the ship/
boat master or duty officer is provided with copies of the CMRF and MVR, as appropriate.
f the ship/boat master or duty officer refuses to sign and/or receive/accept the CMRF
and the MVR, such refusal shall be reflected in the report.
4. Procedures in the issuance of MVR:
4.1 Each MVR booklet shall contain 50 sets of violation receipt printed in quadruplicate
copies with preprinted numbers. The original copy (white) is for respondent/violator to
be issued after payment of penalties, the duplicate copy (blue) is for the respondent/
violator to be issued upon apprehension, the triplicate copy (pink) is the MARNA copy
to be transmitted together with the original copy (white) five (5) days after issuing the
duplicate copy (blue), and the quadruplicate (yellow) is the Enforcers file copy which
shall remain attached in the MVR booklet.
4.2 The deputized maritime enforcers should instruct the master/captain or the duty officer
or the owner/operator of the ship/boat to present the duplicate (blue) copy of the MVR
issued to them to the nearest MARNA office or at any Land Bank branches and pay
the corresponding fines/penalties and to rectify the violation/s or deficiency/ies within
15 days.
4.3 Within five (5) days from issuance, the original (white) copy and triplicate (pink) copy
of the issued MVR shall be transmitted/delivered or mailed by deputized maritime
enforcers to designated MARNA Office for appropriate disposition/action. An official
Transmittal Form, hereto attached as Annex-6*, is to be attached to copies of MVR for
transmittal/delivery.
4.4 Following the payment of fines/penalties and issuance of corresponding official receipt
(OR), the respondent ship master/boat captain/crewmember/owner/operator shall claim
the original (white) copy of the MVR at the designated MARNA Office.
4.5 mmediately after the 15-day rectification period specified in the MVR, the concerned
deputized maritime enforcers shall conduct a follow-up inspection of the ship to
determine whether the cited violation/s has been rectified.
4.6 n the event of non-compliance with the terms of the MVR after 15 days from the initial
issuance of the MVR, the non-rectified violation/s shall be considered second infraction
and the deputized maritime enforcers shall issue another MVR for the said violation/s.
n case of continued non-rectification of the same noted violation/s after the second
issuance of MVR, such failure to rectify shall be considered as third infraction and the
deputized maritime enforcers shall again issue a corresponding MVR where additional
fines and penalties shall be charged to the ship owner/operator/master.
4.7 After the lapse of the 15-day period from the third issuance of MVR, there being no
answer and/or the noted violation/s and penalties remain uncorrected and unpaid,
respectively, the concerned MARNA Office shall watch list or include the name of the
ship and its owner/operator/master/crewmember in the list of those with pending cases.
Consequently, any issuance or renewal of the ship documents/certificates with the
MARNA shall be held in abeyance until its case has been resolved.
5. Control of MVR and Reportorial Requirements
5.1 To properly control the MVR Booklets, a uniform MVR Booklets Log Book shall be
kept and maintained by the MARNA which should show the whereabouts of the
booklets, the names of deputized maritime enforcers to whom such booklets have
been given/distributed, and the evidence of receipt. The log book shall contain the
following column headings:
846
5.1.1 Booklet number/quantity;
5.1.2 Serial numbers;
5.1.3 Name of deputized maritime enforcers to whom the MVR booklet is issued;
5.1.4 Date received by deputized maritime enforcers; and
5.1.5 Date reported totally used/issued.
5.2 n addition to the responsibilities placed on MARNA for keeping accurate records
specified in the preceding paragraph, each deputized agent is also responsible for
keeping records of all MVR booklets supplied to them and expended/issued by them.
The deputies may develop their own procedures for assigning MVR booklets to their
individual maritime enforcer. Deputized maritime enforcers shall be required to officially
receive the MVR booklet issued to them in the Receipt Form shown in Annex-7.
5.3 Upon receipt of MVR booklet, the deputized maritime enforcers should inspect the
booklet to insure that the pages are in correct numeric sequence and contains 50 sets
of MVR, and are the same as those listed on the Receipt Form signed by them.
5.4 Copies of Receipt forms shall be submitted to the MARNA for record keeping purposes.
5.5. Each deputized agent shall designate an official to be responsible for the daily
supervision of issuance, accountability and reconciliation of MVR, the name of which
shall be submitted to the MARNA for proper recording.
5.6 The MARNA Regional Office Directors shall exercise direct supervision and control
over the deputized maritime enforcers in their respective areas of responsibility or
jurisdiction.
5.7 The deputized maritime enforcers shall be primarily responsible for the proper use and
application of the MVR in their actual possession or custody, and shall be liable /
accountable for the loss, damage or deterioration occasioned by negligence in keeping
or use of the MVR.
5.8 Original copy and triplicate copy of issued MVR shall be transmitted/delivered or mailed
by deputized maritime enforcers or their designated Supervisor/s to MARNA Office
who issued the deputation/MVR Booklet to them, within five (5) days after issuance for
appropriate disposition/action.
5.9 Spoiled/Voided MVR should be immediately returned by deputized maritime enforcers
to their designated Supervisor/s. A word VOD or SPOLED should be written across
the MVR, in bold letters, along with the appropriate reason. The Supervisor/s shall
then transmit/deliver the voided/spoiled MVR including a brief explanation to MARNA
for proper recording.
5.10 Periodic monitoring and reconciliation must be performed for issued, unissued and
spoiled/voided MVR to properly account missing MVR or any gaps in the numbering
sequence. ssued MVR should likewise be reconciled to paid and dismissed MVR.
5.11 The MARNA Regional Offices shall submit to the MARNA Central Office a monthly
summary listing of issued, unissued and spoiled/voided MVR including the revenue
collected from the issuance of the MVR.
5.12 The deputized maritime enforcers shall immediately report any loss of MVR in their
possession or custody to their Supervisor/s who shall immediately inform/notify the
MARNA in writing containing an explanation and indicating therein the quantity, serial
number/s of the lost MVR, the place where, and the approximate date when the same
were lost.
5.13 Subject to paragraph 5.12 above, the MARNA shall issue/publish a notice of such
loss in newspaper of general circulation for information and guidance of all concerned
to prevent the possible fraudulent use of lost MVR. The notice to be issued/published
shall specify the quantity and the inclusive serial numbers of the lost MVR and the
place where, and the approximate date when the same were lost.
5.14 The deputized maritime enforcers shall surrender the MVR booklet to their Supervisor/
s when all its pages have been used up. The quadruplicate (yellow) copy should
remain attached to the expended MVR booklet when surrendered.
5.15 The Deputized maritime enforcers shall be required to account for all the pages of
the MVR booklet before receiving a new one. The Supervisor/s responsible for the
issuance of MVR booklet to their individual maritime enforcers shall review the expended
booklet before it is closed out and before a new booklet is issued to deputized maritime
enforcers to ensure that all MVR are accounted for. Subsequently, the procedures
from paragraph 5.1 through 5.4 above shall apply over again.
5.16 Deputized agents shall submit all expended MVR booklets to the MARNA.
6. Suspension and Revocation of Deputation
6.1 Deputized maritime enforcers who committed any of the following offenses shall be
suspended for a period of six (6) months after due process in performing compliance
monitoring of ships:
6.1.1 Discourteous conducts;
6.1.2 Extortion;
6.1.3 Negligence;
6.1.4 Grave Misconduct;
6.1.5 Abuse of Authority;
6.1.6 ncompetence;
6.1.7 nefficiency;
6.1.8 Graft and Corruption; and
6.1.9 Failure to submit copy of MVR within 5 days from the date of issuance.
6.2 The following grounds shall warrant the revocation of the deputation:
6.2.1 Repetition of any of the offenses enumerated in the above paragraph;
6.2.2 Separation from government service;
6.2.3 Physical disability/impairment; and
848
6.2.4 Death
7. Guidelines for the Detention of Ship
7.1 After determination that the violation/s found in a ship is serious to merit detention, the
deputized maritime enforcers shall recommend the detention of the ship/boat.
7.2 Copy of the CMRF with recommendation for the ship/boat detention along with the
copy of MVR issued and any document or evidence to support the detention of ship/
boat should be immediately transmitted / submitted / delivered to the nearest MARNA
Office for appropriate action.
7.3 Upon receipt of the CMRF and MVR referred to in paragraph 7.2 above, the MARNA
Legal Office/Unit shall immediately issue a Cease and Desist Order (CDO) to the
respondent owner/operator of the ship/boat subject for detention.
7.4 The deputized maritime enforcers shall assist in the serving of the CDO to the ship
owner / operator / master/captain, copy of which shall be furnished to the Philippine
Ports Authority (PPA) and Philippine Coast Guard (PCG) to deny issuance of departure
clearance to the ship subject for detention.
7.5 The CDO/detention order can only be lifted upon rectification of violation/s or deficiency/
ies and full payment of the penalty amount has been made.
7.6 After determination that the cited violation or deficiency has been satisfactorily rectified
and the corresponding fine/penalty has been paid, the deputized maritime enforcers
shall recommend for the lifting of the CDO/detention order.
7.7 The MARNA shall issue an Order for the lifting of the CDO which shall serve as
notification to PPA and/or PCG and issuance of departure clearance to the ship.
VI. DEPUTIZATION OF ENFORCEMENT FUNCTIONS TO THE PCG
The PCG shall continue to discharge its delegated/deputized functions relative to the
following:
1. conduct of pre-departure inspection;
2. receiving of Masters Oath of Safe Departure (MOSD);
3. issuance of Special Permit (SP) to carry dangerous cargoes; and,
4. receiving of Marine Protest.
VII. REPEALING CLAUSE
Any provision of existing MARNA Circulars, Rules and Regulations and other issu-
ances which are inconsistent with this Circular is hereby repealed or modified accordingly.
VIII. SEPARABILITY CLAUSE
Should any provision or part of this Circular be declared by any competent authority to
be invalid or unconstitutional, the remaining provisions or parts hereof shall remain in full
force and effect and shall continue to be valid and effective.
IX. EFFECTIVITY
This MARNA Circular shall take effect fifteen (15) days after its publication once in a
Administrator
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Supplemental Rules and Regulations for the
Registration of Small Boatbuilders
Pursuant to Section 2 of Presidential Decree No. 474, Executive Order No. 125/ 125-
A, Republic Act. 9295 and Presidential Decree No. 666, the following additional rules and
regulations are hereby adopted to supplement MARNA Circular No. 2007-02.
I. OBJECTIVES
1. To regulate the operations of small boatbuilders.
2. To foster a more favorable atmosphere that will encourage and qualify small boatbuilders
to be registered with the MARNA.
3. To help promote the safety of motor bancas to be constructed.
II. COVERAGE
1. Boatbuilders engaged in the construction of wooden hull ships and motor bancas, as
well as other shipbuilders.
2. Domestic shipowners/operators.
III. SUPPLEMENTAL REGULATIONS AND GUIDELINES
1. Small boatbuilders unable to meet the requirements for registration provided in MARNA
Circular No. 2007-02 shall nevertheless be required to apply for registration with the MA-
RNA Central office or Maritime Regional Offices (MROs) where their operation is based,
on or before June 01, 2009.
2. Upon verification by the MARNA of the nature of operation of the boatbuilder, specifi-
cally its being a backyard operator, and only contracted occasionally to do boatbuilding
projects, a provisional Certificate of Registration shall be issued by the MARNA, valid for
one (1) year, upon compliance with the following requirements;
850
2.1 Certification by the applicant that it is a boatbuilder, and providing therein information
on the specific location of its boatbuilding yard, tools, equipment owned/available,
and list of contracted workers/associates, if any.
2.2 Certified list of boatbuilding projects undertaken over the past three(3) years or
more.
2.3 Notarized Affidavit of undertaking to apply with the MARNA for Authority to Construct
a boat/motor banca every time engaged upon to do so, and to secure from the
MARNA a Construction Certificate upon completion thereof. (Annex 1*)
3. For every application with the MARNA for Authority to Construct, upon engagement of
a boatbuilding project, the following requirements shall be submitted;
3.1 Duly signed Boatbuilding Contract.
3.2 Vessel plans (Skeleton Plan) for approval by the MARNA before start of
construction.
3.3 Affidavit on source of woods/logs to be used, inclusive of proof of legal acquisition
as well as needed clearances/permits from the Department of Environment and
Natural Resources (DENR).
3.4 Certification of availability of the area/yard where the boat/banca will be constructed,
inclusive of detailed information such as area, location and ownership (or rental/
permit arrangements in case not owned).
4. A Provisional Certificate of Registration issued is extendible, subject to payment of
required fees/charges, as well as fines/penalties where applicable. n cases where a reg-
istered boatbuilder under this Circular has undertaken at least four (4) boatbuilding projects
during the validity of its registration, compliance with the requirements under MARNA
Circular No. 2007-02 can instead be imposed for purposes of renewal of registration, sub-
ject to MARNAs evaluation and determination.
IV. FEES AND CHARGES
The following fees and charges attendant to this Circular are hereby prescribed and
adopted to be paid:
1. Provisional Certificate of Registration - P 200.00
2. ssuance of Authority to Construct - P 500.00
3. ssuance of Construction Certificate - P 310.00
4. Plans Approval - P 500.00
5. Post-Construction Plans Approval Evaluation - P 5,000.00
6. Post-Construction nspection of boat/banca - P 5,000.00
V. FINES AND PENALTIES
For violations of the herein prescribed rules and regulations, the following fines and
penalties shall be imposed and collected, after due process:
1. Nonregistration by June 01, 2009 and thereafter - P 5,000.00
2. Construction of ships without Authority to Construct and/or Vessel plans approved by
MARNA;
2.1 Motor Bancas - P 5,000.00
2.2 Other ships irrespective of hull materials - P 50,000.00 each for the
Shipbuilder and Shipowner.
VI. REPEALING CLAUSE
The provisions of MARNA Circular No. 2007-02, and other issuances which are incon-
sistent herewith, are hereby repealed, modified or amended accordingly.
VII. EFFECTIVITY CLAUSE
This Circular shall take effect fifteen (15) days after publication once in one (1) news-
paper of national circulation.
Administrator
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Revised Rules on the Issuance of Enhanced
Seafarers Identification and Record Book (SIRB)
Text Available at Office of the National Administrative Register (ONAR), U.P.
Law Complex, Diliman, Quezon City
METROPOLITAN MANILA DEVELOPMENT AUTHORITY
(Pangasiwaan sa Pagpapaunlad ng Kalakhang Maynila)
MMDA Resolution No. 09-02, s. 2009
Prescribing the No Physical Contact Policy of Metropolitan Manila
Development Authority (MMDA) in Apprehending Traffic Violators in
Metro Manila Thru the Use and Recording of Digital Camera and/or
New Technologies Used in Capturing Images on a Trial Basis
for a Period of Ninety Days
852
WHEREAS, the present system of apprehending traffic violators sometimes causes
traffic build up thereby aggravating the traffic problem in Metro Manila;
WHEREAS, to provide better services to the motorists and the riding public, there is a
need to introduce some technologies to further improve and strengthen traffic manage-
ment and operations in Metro Manila;
WHEREAS, Republic Act No. 7924 empowers the MMDA to formulate, coordinate
and monitor policies, standards and programs relating to traffic and transport management
to rationalize the existing transport operations and to administer and implement all traffic
enforcement operations, traffic engineering services, traffic education programs including
the institution of a single ticketing system in Metro Manila;
WHEREAS, Republic Act No. 7160 as amended as well as the City Charters of the
LGUs in Metro Manila empowers the LGUs to regulate traffic and the use of all streets
including the establishment of vehicle stops and terminals as well as the regulations of its
use including garages and operation of conveyances for hire in their jurisdiction;
WHEREAS, the Metro Manila Council (MMC) as the policy making body of the MMDA
recognizes the need to improve the system of apprehending traffic violators by way of
prescribing the No Physical Contact Policy in apprehending traffic violators thru the use
of digital camera and/or new technologies used in capturing images;
WHEREAS, the use of digital camera and/or new technologies in apprehending traffic
violators will ensure efficiency in traffic enforcement and avoid traffic build up in areas
where violations are committed.
NOW THEREFORE, be it resolved as it is hereby resolved, pursuant to Section 6 of
RA 7924, that the Council hereby prescribes the No Physical Contact Policy in appre-
hending traffic violators in Metro Manila thru the use of digital camera and/or new technolo-
gies used in capturing images on a trial basis for a period of ninety (90) days:
Section 1. COVERAGE
This Resolution shall cover the apprehensions or citations made by traffic operatives
deployed by the Metropolitan Manila Development Authority (MMDA) in Metro Manila.
Section 2. REGULATIONS
The following regulations must be observed when implementing the No Physical Con-
tact Policy:
2.1 The image of the vehicle violating traffic laws, rules and regulations shall be recorded
or captured thru the use of digital cameras and/or other technologies. This shall be
applied to all motorists/drivers of vehicles.
2.2 First Notice signed by the TOC Executive Director and the cameraman who took/shot
the pictures thru the use of digital camera and/or new technologies shall be issued to
the Traffic Violator/Owner/Operator of the vehicle.
The first notice shall indicate the date, time, location, traffic violation(s)/infractions
committed, the assessed fines/penalties therefore and a photo-clip of apprehended
vehicle.
The notices shall likewise contain a statement that the traffic violator shall have the
right to file a protest before the Traffic Adjudication Board (TAB) within seven (7) days
from receipt thereof and that failure to file the same within the prescribed period shall
be deemed a waiver of such right and shall be construed as an admission of the traffic
violation(s) cited therein. The TAB shall resolve the case within seven (7) days from
receipt of the contest and its decision shall be deemed final and executory.
2.3 Payment of fines/penalties shall be made within seven (7) days upon receipt of the
first notice, unless a protest was filed by the traffic violator as provided for in the
preceding paragraph.
2.4 Assessed fines/penalties and all charges indicated in the first notice shall be paid at
any branch of METROBANK unless a protest is filed before the MMDA Traffic Adjudication
Board, in which case, the fines as finally adjudicated, shall be paid at the Central
Office, Collection Division of the MMDA located at the MMDA Bldg., EDSA cor. Orense
St., Guadalupe, Makati City.
2.5 After the lapse of the 7-day prescription period, there being no protest filed and the
fines/penalties remain unpaid, a final notice to pay/settle the same shall be issued. f
the traffic violator/owner/operator failed to settle/pay the assessed fines/penalties from
receipt of the final notice, the Drivers license number or vehicle license plate number
shall be included in the Alarm list and be reported to the LTO with the request that the
registration of the same shall not be renewed until the penalties or fines are fully
settled.
2.6 Notices shall be sent thru registered mail or courier service either by government or
private service provider.
2.7 Traffic violators/owners/operators who refuse to receive/accept without any valid reason
the notice issued to them shall be deemed to have received the same, hence, shall
comply with the above provisions of pars. 2.3 and 2.5.
Section 3. SEPARABILITY CLAUSE
f any provision of this Resolution is declared unconstitutional or invalid for any reason,
the same shall not affect the validity of the other provisions.
Section 4. REPEALING CLAUSE
All other issuances contrary or inconsistent hereof are hereby repealed, amended or
modified accordingly.
Section 5. EFFECTIVITY
This Resolution shall take effect fifteen (15) days upon its publication in two (2) news-
papers of general circulation.
854
Approved by the Majority of the Members of the Metro Manila Council
during the Regular Council Meeting held on January 21, 2009.
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MMDA Resolution No. 07-24
Prescribing Guidelines and Standards for the Establishment of
Uniform Newspaper Racks to be Utilized by Newspaper Dealers and
Vendors in Metro Manila, and Regulating its Operations thru the
Coordinative Efforts of MMDA and Respective Local Government Units
WHEREAS, the prevalence of newsstands in various forms and sizes along the side-
walks has greatly contributed to road obstruction, urban eye sores and clutter that con-
tinue to proliferate and impede the movement of pedestrians and motorists and destroy the
aesthetic view of Metro Manilas surroundings;
WHEREAS, the strict implementation of MMDA Resolution No. 02-28, Series of 2002,
popularly known as Sidewalk Clearing, favorably resulted to the removal of all obstruc-
tions along the sidewalks, including improperly placed newsstands thereby affecting the
turnover and circulation of all major dailies in Metro Manila;
WHEREAS, newspapers have become part of everyones lives as these are medium
of information for busy people lacking sufficient time to listen to the radio and/or watch
television for an update on national and international scenes involving social, political and
economic events, among others;
WHEREAS, considering the informative and educational values of newspapers and
related materials, the Metro Manila Council recognizes the socio-economic significance in
allowing newspaper dealers thru their accredited sellers locate its establishments on the
sidewalks of Metro Manila by adopting uniform newspaper racks to be utilized by the
vendors provided that these racks will not obstruct pedestrian walkways.
NOW, THEREFORE, be it resolved as it is hereby resolved, pursuant to Section 6 of
RA 7924, that the Council hereby prescribes the following implementing guidelines and
standards on establishment of uniform newspaper racks to be utilized by newspaper deal-
ers and vendors in the Metro Manila, and providing the following rules and regulations
pertaining to its operations/activities, to wit:
Section 1. Coverage. All newspaper dealers and vendors shall use/adopt uniform news-
paper racks to be utilized in vending newspapers and related materials.
Section 2. Guidelines
2.1 Size. The size of the newspaper rack should be 2,000 mm in length and 500 mm in
width. A four-inch (4") space on the uppermost portion shall contain the Metro GWAPO
logo (extreme left), the words MMDA AUTHORZED (upper middle portion), NEWSPA-
PER RACK (below) and the Association logo (extreme right). The bottom space below
shall indicate the control number, operators name and location.
2.2 Location/Installation. The newspaper rack shall either be placed against the wall or
around existing structures or trees in a manner that it will not block the sidewalk.
2.2.1 For newspaper racks to be placed against a wall, a maximum of 5
panels on line may be allowed per location.
2.2.2 For newspaper racks to be placed or wrapped around existing structures
on sidewalks, the distance of the racks from the structure shall not be more
than 150 mm. Racks wrapped around existing structures shall not be more
than 5 panels.
The minimum distance of panels per location should be thirty (30) meters.
2.3 Requirements/Limitations
No other goods shall be placed on the newspaper racks. Only newspapers, magazines,
pocketbooks and other informative/educational reading materials are allowed.
Display and selling of pornographic materials are strictly prohibited.
2.4 Each newspaper rack shall be registered and be provided with corresponding control
number by the concerned LGU to be indicated in the local permit.
2.5 Newspaper publishers shall be given first priority to make use/utilize the designated
locations for the sale of reading materials following the prescribed guidelines, existing
laws and MMDA Resolutions that may be passed by the Council.
2.6 Respective LGUs shall implement this Resolution and shall issue the corresponding
permits for this kind of establishment. The MMDA and LGU concerned shall remove any
and all obstructions, including newspaper racks that do not conform to the prescribed
guidelines as provided hereto.
Section 3. Monitoring Function: The Sidewalk Clearing Operations Group of MMDA
shall monitor the operational activities of these newspaper racks to ensure that these are
properly installed according to the prescribed guidelines.
Section 4. Penalty. Non-compliance with or any violation of the prescribed guidelines
as provided for in this Resolution and other related laws and ordinances shall be a ground
for the removal and confiscation of the newspaper rack and the printed materials displayed
thereon as well as the automatic revocation of the permit issued therefore by the LGU. n
this instance, the LGU may seek the assistance of the MMDA in the removal of the
structure or non-conforming newspaper racks.
Section 5. Effectivity. This Resolution takes effect fifteen days after its publication in
two (2) newspapers of general circulation.
Adopted: 20 Sept. 2007
856
(SGD.) BAYAN F. FERNANDO
Chairman
(SGD.) VERGEL A. AGULAR (SGD.) FELCANO R. BELMONTE, JR.
Mayor, Las Pinas City Mayor, Quezon City
(SGD.) ROBERT C. EUSEBO (SGD.) MA. LOURDES C. FERNANDO
Mayor, Pasig City Mayor, Marikina City
(SGD.) SHERWN T. GATCHALAN (SGD.) JAME C. MEDNA
Mayor, Valenzuela City Mayor, Municipality of Pateros
(SGD.) CANUTO S. ORETA (SGD.) ALDRN L. SAN PEDRO
Mayor, Malabon City Mayor, Muntinlupa City
(SGD.) WENCESLAO B. TRNDAD (SGD.) HERBERT M. BAUTSTA
Mayor, Pasay City Chairman, Metro Manila Vice Mayors League
(SGD.) SERAFN Y. BERNARDNO
President
Metro Manila Councilors League
NATIONAL ELECTRIFICATION ADMINISTRATION
Memorandum No. 2009-011
Additional Qualification Requirements for Candidates to the
EC Board of Directors (BODs) and Officer/s of the Board
Under RA 9136 or the Electric Power ndustry Reform Act (EPRA), the industry re-
quires that the capabilities of EC Officials should be at par with those of the other players
in the competitive environment.
Policies/guidelines pertaining to EC District Elections for Board of Directors (BODs)
should be accordingly handled beginning with the meticulous screening of candidates to
the EC Board and the accompanying strategy by which to capacitate them, to ensure that
the Board of Directors and its Officers are of better grasp and advanced understanding of
EC operations.
I. ADDITIONAL QUALIFICATION REQUIREMENT FOR EC BODs
The Annual General Membership Assembly (AGMA) is one of the major institutional
activities of the coop which must be strictly observed as provided for in the EC By-Laws.
This is a once-a-year affair where member-consumers are updated with the coops status
of operations and where their views and sentiments are heard.
Thus, attendance to this assembly is one of the duties and responsibilities of a coop
member. Attendance to at least two (2) AGMAs within five (5) years prior to the filing of
ones Certificate of Candidacy is now required for candidates to the Board. This is an
additional requirement to the existing qualifications prescribed under Section 7 (Qualifica-
tions for Board of Directors), Article Eligibility to Run and Certificate of Candidacy of
the Election Guidelines.
Attendance to trainings/seminars on Cooperative Management Courses (CMCs) ,
and , Good Governance and EPRA 101 is a must for the newly-elected Directors to
equip them with the knowledge and skills that will aid them in laying out coop plans, and
formulate policies necessary to govern effectively.
II. FOR QUALIFIED CANDIDATES TO THE EC BOARD
As part of the screening process for candidates, attendance to pre-election briefing/
orientation to be conducted by the nstitutional Services Department (SD) shall be manda-
tory. This is done in order to avert the filing of nuisance election protest and minimize
election-related disputes. Failure to do so shall be a ground for disqualification.
Likewise, the candidates shall commit to comply with the provisions of the Election
Guidelines and shall respect the outcome of the elections which represents the will of the
member-consumers. As such, they shall issue a written commitment to fully support all
rules and regulations of the EC.
The SD shall be responsible for the immediate and orderly implementation of these
requirements.
These Guidelines shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.
The applicability of these Guidelines shall not in any way impair and/or alter the effec-
tivity dates of those ECs which have previously approved and adopted the additional quali-
fication requirements herein.
(SGD.) EDTA S. BUENO
Administrator
o 0o
Memorandum No. 2009-12
Addendum to NEA Memorandum No. 2008-010 on the
Revised Guidelines for EC Officers and Employees Representation
Allowance and an Unnumbered NEA Memorandum on the
Grant of Rice Allowance for EC Officials and Employees
858
Borne out of the imperative to provide guidance to the ECs in setting the proper strate-
gic direction which shall be responsive to what is being required in the present environment
in the industry and shall motivate all officials and employees to perform excellently, neces-
sary adjustments on the present EC set-up, as identified below, are hereby authorized to
ensure nothing less but excellent performance from the ECs:
(1) For Officials and Employees: The increase in rice allowance from the present rate to
an amount ranging from P1,200 to P1,800 a month, subject to the availability of funds of
the ECs and its capability to sustain this benefit is also being authorized to respond to an
immediate and prevailing need among the employees of the ECs.
(2) For General Managers: To be able to build and maintain an effective networking
system with officials of other government and non-governmental organizations, the exist-
ing allowable reimbursable allowance of General Managers, supported with official receipts,
shall be adjusted to an amount not to exceed Seven Thousand Pesos (P7,000.00) per
month.
The General Manager shall be accountable for the proper implementation of these
Guidelines while the Finance Services Manager and the nternal Auditor are to be respon-
sible for monitoring.
Any provision of the NEA Memorandum dated 31 July 1997, specifically on the Repre-
sentation Allowance for EC General Managers and on the unnumbered NEA Memorandum
dated 19 July 2000, which is inconsistent with these new Guidelines, is deemed super-
seded.
These Guidelines shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.
(SGD.) EDTA S. BUENO
Administrator
NATIONAL TELECOMMUNICATIONS COMMISSION
Memorandum Circular No. 02-04-2009
Guidelines for the Recognition of GMDSS Radio Certificates Issued
By or Under the Authority of Another Party in Accordance with
Regulation 1/10 of the STCW Convention
Pursuant to Act 3846, as amended, E.O. 546, Chapter NX Article 55 of the TU Radio
Regulations and Regulation 1/10 of the 1978 STCW Convention, as amended, the National
Telecommunications Commission hereby promulgates the following guidelines for the rec-
ognition of certificates issued by or under the authority of another party.
1. Definitions
1.1. Party means a State for which the STCW Convention has entered into force.
1.2. Administration means the Government of the Party whose flag the ship is
entitled to fly.
1.3. Certificate means a valid document, issued by or under the authority of the
Administration or recognized by the Administration authorizing the holder to
serve as authorized by national regulations.
2. GMDSS Radio Certificates issued by or under the authority of another Party
(Administration) shall be recognized provided that the issuing Party is included in
the list of Parties with whom the Philippines has a Bilateral Agreement pursuant to
Regulation 1/10 of the 1978 STCW Convention, as amended.
2.1. The Commission shall recognize a GMDSS Radio Operator Certificate and allow
its holder to perform the functions applicable to that Certificate while serving on
board Philippine Registered vessel.
2.2. The Commission shall issue a Recognition Certificate equivalent to the Certificate
issued by another Party and shall expire as soon as the certificate recognized
or is withdrawn, suspended or cancelled by the Party which issued it and, in any
case, not more than five (5) years after the date of issue.
2.3. The Commission may, if circumstances require, allow a seafarer to serve the
capacity of GMDSS Radio Operator for a period of not exceeding three (3) months
on board a Philippine Registered Vessel while holding valid GMDSS Radio
Operator Certificate issued and endorsed by another Party for use on board that
Partys ship but which has not yet been recognized by the Commission provided
that the application for recognition has been submitted on or before the date of
embarkation to a Philippine flag vessel.
3. GMDSS Radio Certificates issued by or under the authority of another Party with no
Bilateral Agreement but included in the MO White List shall be recognized and shall
be issued a temporary endorsement or an equivalent certificate not exceeding six (6)
months.
4. GMDSS Radio Certificates issued by or under the authority of a non-Party and with
no Bilateral Agreement with the Philippine Government shall not be recognized.
5. GMDSS Radio Certificates and endorsements issued by an Administration under the
provisions of Regulation 1/10 of 1978 STCW Convention, as amended, in recognition
of, or attesting the recognition of, a certificate issued by another Party, shall not be
used as the basis for further recognition by the Commission.
All applicants shall adhere strictly to the provisions of the herein prescribed guidelines
and any misrepresentation made by any applicant shall be a valid ground for the revocation
and suspension of the certificates issued and/or the imposition of the appropriate penal-
ties in accordance with law.
This Circular takes effect immediately and supersedes any existing NTC order, in-
struction or memorandum or part thereof, which is inconsistent herewith.
860
(SGD.) RUEL V. CANOBAS
Commissioner
(SGD.) JAME M. FORTES, JR. (SGD.) JORGE V. SARMENTO
Deputy Commissioner Deputy Commissioner
--o0o--
Memorandum Order No. 02-04-2009
Implementing Guidelines on Developing Reference Access Offers
PREAMBLE
WHEREAS, a ubiquitous and efficient telecommunications network is vital to nation-
building and economic development;
WHEREAS, under Republic Act 7925, otherwise known the Public Telecommunica-
tions Policy Act of the Philippines (1995), the National Telecommunications Commission
(hereafter the Commission) is mandated to ensure a healthy competitive environment for
telecommunications services;
WHEREAS, effective and efficient interconnection is key to sustainable competition
in the telecommunications industry;
WHEREAS, under Executive Order 59, all public telecommunications entities are
mandated to provide interconnection and the Commission is vested with the power to
ensure that interconnection agreements are fair, reasonable and non-discriminatory;
WHEREAS, in the face of increasing market concentration, deteriorating financial
position of many nondominant service providers, and large differences in negotiating power
between service providers, it is appropriate for the Commission to establish a framework to
ensure that the market functions effectively;
WHEREAS, a regulatory framework to ensure that markets function effectively for
interconnection agreements to be fair, reasonable and non-discriminatory is in the best
interest of consumers;
WHEREAS, technological changes, expansion of market boundaries and emergence
of new services and business practices, underscore the need for new and more substan-
tive regulatory framework for access to and interconnection of networks;
WHEREAS, Memorandum Circular No. 14-7-2000 provides specific guidelines on some
key technical and economic aspects of interconnection, to promote fair, transparent, effi-
cient and non-discriminatory access and interconnection arrangements;
WHEREAS, Memorandum Circular No. 09-07-2002 prescribes wholesale pricing prin-
ciples and guidelines aimed at transforming the structure of interconnection charges to
cost-based;
WHEREAS, Memorandum Circular No. 10-07-2007, issued by the Commission on
July 19, 2007, requires all public telecommunications entities to develop and publish a
Reference Access Offer;
WHEREAS, a Reference Access Offer contains the prices, terms and conditions,
including technical information, ordering and provisioning procedures and service level de-
tails, of the network access that a public telecommunications carrier proposes to provide
to other service providers;
WHEREAS, under the said circular, the Commission commits to issuing more de-
tailed guidelines for developing Reference Access Offer;
WHEREAS, the publication of instruments similar, if not equivalent to Reference Ac-
cess Offers has helped to promote transparency of interconnection agreements, as well
as ensure their fairness, reasonableness and efficiency, in more than 70 countries around
the world;
WHEREAS, greater transparency in access arrangements will reduce access-related
disputes and to protect non-dominant service providers against discrimination and abuse
of market power by dominant providers;
WHEREFORE, the Commission, by virtue of the powers vested upon it by law, does
hereby promulgate the following rules and regulations:
Article I
DEFINITION OF TERMS
For purposes of this Memorandum Order, the following terms and phrases shall have
the assigned meaning unless the context otherwise requires:
a) Access means making available the facilities and/or services of one undertaking to
another, under defined conditions, on either an exclusive or non-exclusive basis, for
the purpose of providing electronic communications services. t covers, among others:
access to network elements and associated facilities (including the local loop and
facilities and services necessary to provide services over the local loop), which may
involve the connection of equipment, by fixed or non-fixed means; access to physical
infrastructure including buildings, ducts and masts; access to relevant software systems
including operational support systems; access to fixed and mobile networks, in particular
for roaming; and access to virtual network services;
b) Access charges pertain to the remuneration paid to an access provider by an access
seeker for the former providing the latter access to its network, systems, facilities, or
customer base;
c) Access deficit charge (ADC) is the difference between the required revenue to recover
the cost of the line service and the total revenue from retail monthly services fees and
the revenue from interconnection;
862
d) Access provider is a public telecommunications entity (PTE) requested to supply
access to its network, system, facilities and/or customer base by another PTE or
value-added service provider (VASP);
e) Access seeker is a PTE or VASP requesting access to the network, system, facilities
or customer base of another PTE;
f) Commission refers to the National Telecommunications Commission;
g) Enhanced services refers to a service which adds a feature or value to basic telephone
service not ordinarily provided by a PTE such as format, media, conversion, encryption,
enhanced security features, paging, internet protocol, computer processing and the
like; provided that in the provision of such service, no law, rule, regulation or international
convention to which the Philippines is a signatory, is circumvented or violated. For
purposes of these rules and regulations, enhanced services shall also mean value-
added services, and vice-versa;
h) Fully Distributed Cost is a costing methodology based on historical accounting costs
which assigns shared and common costs to various services for which those costs
are incurred;
i) Interconnection means the linkage by wire, radio, satellite or other means, of two or
more existing telecommunications carriers or operators with one another for the purpose
of allowing or enabling the subscribers of one carrier or operator to access or reach the
subscribers of the other carriers or operators. nterconnection is a specific type of
access implemented between public network carriers or operators.
j) Local Exchange Carrier is a PTE providing transmission and switching of
telecommunications services, primarily but not limited to voice-to-voice service, in a
geographic area anywhere in the Philippines;
k) Long Run Incremental Cost (LRIC) is a costing methodology based on forward-looking
costs of network infrastructure and facilities which measures the added or extra cost
in providing a service, over a long-term (generally interpreted to mean 10 to 15 years);
l) Point of Interconnection (POI) refers to the point where signals are conveyed from
one telecommunications network to another telecommunications network;
m) Point of Presence (POP) is a specific point as defined on the network where a point
of interconnection shall occur in such a way that interconnection between service
providers can be made efficiently and effectively;
n) Public Switched Telephone Network (PSTN) refers to interconnected, voice-oriented
public telephone networks of PTEs on which calls can be made to all customers of all
PTEs;
o) Public Telecommunications Entity (PTE) refers to a duly enfranchised and
Commission-certified telecommunications carrier and/or any entity duly authorized by
law to provide public telecommunications services;
p) Reference Access Offer is a statement of the conditions, prices and terms a PTE
proposes to provide access to its network, facilities, systems or customer base to
another PTE or VASP;
q) Total Element Long Run Incremental Cost (TELRIC) is a variant of LRC; it measures
the incremental cost of providing a given network element;
r) Total Service Long Run Incremental Cost (TSLRIC) is another variant of LRC; it
measures the incremental cost of providing a given end-user service which may use
several network elements;
s) Value-added Service Provider (VASP) is an entity which, relying on the transmission,
switching and local distribution facilities of a PTE, offers enhanced services beyond
those originally provided for by such carriers. A PTE duly authorized by the Commission
to provide enhanced services shall likewise be deemed a VASP;
Article II
PRINCIPLES, SCOPE AND STRUCTURE OF RAO
Section 1. General Principles of Access
1. A Reference Access Offer (RAO) shall embody the same general principles prescribed
for interconnection, as set out in Section 3, Article of MC No. 14-7-2000, to wit:
(i) Access should enable subscribers or customers of the access provider and access
seeker to communicate with each other (any-to-any);
(ii) Access should be across interfaces of sufficient functionality (end-to-end
interoperability);
(iii) Access should directly follow the principle of fair compensation, compliance on
commercial obligation (timely settlement, including payment) and service specific
usage of access facilities (no irregular and/or traffic access or bypass);
(iv) The access provider and access seeker should have equal responsibility in ensuring
that access is provided in a swift and efficient manner (equal responsibility);
(v) A request for access should be satisfied in a timely fashion (access on request);
(vi) Access should be prompt, efficient and seamless to the subscribers or consumers
of both the access provider and access seeker (prompt, efficient and seamless);
(vii) Access agreements should satisfy the governments telecommunications policies
and its commitments or obligations under international agreements.
2. An Access Provider must treat an Access Seeker on a nondiscriminatory basis in
relation to the supply of an Access Service, including but not limited to, taking all
reasonable steps to ensure that the terms, conditions and prices of access are
equivalent to that which the Access Provider provides to itself, its affiliates, or other
access seekers.
3. Access must be provided: (i) under fair and reasonable terms, conditions and prices;
(ii) in a sufficiently unbundled manner so that the Access Seeker does not pay for
network components or facilities that it does not require; (iii) in a timely fashion; and
(iv) for transparent and cost-based charges.
Section 2. Obligation to Develop a RAO
1. All PTEs are required to submit to the Commission a RAO for each of the access
services applicable to it that have been specified by the Commission in the immediately
following section, within ninety (90) days from the date of effectivity of these Guidelines.
2. The prices, terms and conditions stipulated in the RAO should represent an Access
Providers definite offer, sufficient in substance and form so that an Access Seeker
that accepts the offer may not be refused access.
Section 3. Services That Must be Offered under RAO
1. The Commission shall specify the access services that must be offered under RAO.
Such determination shall be based on the Commissions determination of services
that are vital to promoting competition in the telecommunications market.
864
2. Based on the current state of competition in the telecommunications market, the
Commission has determined that the following access services must be offered under
RAO:
(i) Fixed network origination service for calls between an end-users customer premises
equipment (CPE) on the fixed network and the nearest PO or POP, including the
signaling required to support such a service;
(ii) Fixed network termination service for calls between the nearest PO or POP and
an end-users CPE on the fixed network, including the signaling required to support
such a service;
(iii) Fixed network transit service for calls conveyed between local exchanges of fixed
network call origination and termination, involving at least one tandem exchange;
(iv) Mobile network origination service for calls between an end-users CPE (i.e.,
handset or radio) on the mobile network and nearest PO or POP, including the
(v) Mobile network termination service for calls between the nearest PO or POP and
an end-users CPE (i.e., handset or radio) on the mobile network, including the
(vi) Mobile network transit service for calls conveyed between local exchanges of
mobile network call origination and termination, involving at least one tandem
exchange;
(vii) Fixed internet call origination service for calls between an end-users CPE or
network termination unit (NTU) on the fixed network and the nearest PO or POP,
including a modem or data call over voice bandwidth supporting nternet Protocol,
where these calls can be reliably distinguished from voice calls, and includes
support for dedicated dial prefixes or dial codes to differentiate such calls at the
first switch where required;
(viii) Fixed internet call termination service for calls between the nearest PO or POP
to a customers (usually a VASP) CPE or NTU connected to the fixed network,
including transmission links from PO or POP to the customer premises with data
rate capacity as requested by the access seeker, and supporting nternet Protocol;
(ix) Fixed internet call transit service for calls conveyed between local exchanges of
fixed internet call origination and termination, involving at least one tandem
exchange;
(x) Mobile internet call origination service for calls between an end-users CPE (i.e.,
handset or radio) on the mobile network and the nearest PO or POP, including a
modem or data call over voice bandwidth supporting nternet Protocol, where these
calls can be reliably distinguished from voice calls, and includes support for
dedicated dial prefixes or dial codes to differentiate such calls at the first switch
where required;
(xi) Mobile internet call termination service for calls between the nearest PO or POP
to a customers (usually a VASP) CPE or NTU connected to the mobile network,
including transmission links from PO or POP to the customer premises with data
rate capacity as requested by the access seeker, and supporting nternet Protocol;
(xii) Mobile internet call transit service for calls conveyed between local exchanges of
mobile internet call origination and termination, involving at least one tandem
exchange;
(xiii) Retail narrowband access services provided to VASPs via a dial-up connection
over a PSTN circuit;
(xiv) Broadband access services provided to VASPs over dedicated capacity, xDSL-
upgraded copper lines, upgraded cable networks or other platforms capable of
supporting two-way data transmission at high speeds;
(xv) Mobile data origination for data or equivalent service functionality conveyed between
an end-users mobile handset on a cellular mobile network and the PO or POP to
another mobile network; and
(xvi) Mobile data termination for data or equivalent service functionality conveyed
between the PO or POP to another mobile network and an end-users mobile
handset on a cellular mobile network.
3. The Commission may revise, i.e., modify, expand or shorten, the above list of access
services, when it deems expedient and after due public consultation.
Section 4. General Form of RAO
1. The RAO must:
(i) be written as a draft access agreement;
(ii) be comprehensive and complete with regard to the terms, conditions prices of
access that a carrier is willing to offer any Access Seeker;
(iii) have sufficient details to allow an Access Seeker determine if it would accept the
offer without having to engage in negotiations with the Access Provider; and
(iv) conform with the technical, operational and commercial guidelines set out in this
Memorandum Circular.
2. The RAO shall have two parts: the main clauses or articles and a set of schedules or
annexures. The main clauses must be generic and universal, i.e., they could apply to
any Access Seeker. The schedules must be specific to the requirements of the Access
Seekers.
3. The main clauses or articles of a RAO and the contents of each may include, but are
not limited to the following:
(i) Scope and Definition of Services: purpose of access agreement; type of access
service; definition of key terms in the agreement
(ii) Points of nterconnection (POs) and nterconnection Facilities: interconnection
principles, namely: that parties agree to connect and keep connected their systems
at mutually agreed feasible POs, and that Access Provider commits to supply
requested telecommunication services, facilities and information relating to
interconnection; traffic routing principles; arrangements at the PO; co-location of
apparatus and plant;
(iii) Network and Transmission Requirements: requirement for mutual notification of
network changes and capacity forecasts, e.g., traffic forecasts for each PO, local
number requirements, default and redundant routing arrangements; rights and
obligations of each party with respect to ordering and provisioning of access
facilities; confidentiality requirements and procedures to ensure no anti-competitive
use of order information; points of contact; order format and procedures; procedures
to expedite specific orders; coordination process for migration of customers between
operators; procedures for ordering operator to arrange for all equipment installations
and changes at end-user premises; order confirmation and order rejection
procedures, timely notification, notification of additional charges, etc.; order
completion notification and reporting requirements
866
(iv) Traffic Measurement and Routing: delineation of responsibilities in measuring and
reporting traffic; measurement and reporting procedures; rules for routing of different
types of traffic
(v) nfrastructure Sharing and Collocation: availability of poles, conduits, towers, rights
of way, and other infrastructure that may be shared with Access Seekers;
procedures, if any, for determining available capacity of infrastructure to be shared;
procedures for allocating capacity among requesting operators (e.g., first-come,
first-served); prices and/or costing method for infrastructure sharing; provision and
pricing of supplementary services for shared infrastructure (electrical power, securing
systems, maintenance and repair, etc.); availability of actual and virtual co-location
(e.g., transmission facilities on exchange premises); list of addresses where
collocation is available; procedures for determining available space; reservation of
expansion space; prices and/or costing method for allocated space; provisioning
and pricing of supplementary services for collocated space (e.g., electrical power
and emergency back-up power, lighting, air conditioning, security and alarm
systems, etc.); procedures for ensuring access to and security of collocated
facilities;
(vi) Charging Mechanisms, Billing and Settlements: scope of billing arrangements
and responsibilities; billing procedures; payment terms and conditions; billing
disputes and reconciliation procedures;
(vii) Technical Service Commitments and Fault Repairs: general commitment of Access
Provider to provide services of the quality comparable to what it provides to itself or
its affiliates or subsidiaries or other parties (specific service performance standards
to be specified in appendix); testing and maintenance, i.e., right to make reasonable
tests and to schedule service interruptions; procedures to minimize disruption;
procedure for trouble reports; notice periods; response time standards; duty to
investigate own network before reporting faults to interconnecting operator;
responsibilities of parties to take necessary precautions to prevent interference
with, or interruptions of, other parties networks or customers;
(viii) Data nterchange and Treatment of Customer nformation: method and format of
data interchange between carriers, including data interfaces, software, forms, etc.;
data types and systems for which data is to be interchanged (e.g., new facilities
and service orders, network changes and forecasts, billing, number allocations
and other data required for call routing, customer listings, access to network
databases, etc.); confidentiality procedures for customer information
(ix) Ancillary Services: type of operator assistance services to be provided, including
directory assistance, translation services, fault report routing, etc.; call handling
and operations procedures; fees and billing procedures; subscriber listings; repair
and maintenance services; other services provided by one or other operators to
increase mutual operating efficiencies;
(x) nterconnection Usage Charges: structure of interconnection charges that may
include: one-time set up charges for establishing specific interconnect facilities,
rental charges for use of ports and interconnect links and other facilities, and
usage charges for use of network elements;
(xi) Other Commercial Terms and Conditions: general provisions regarding supply of
services and facilities (e.g., that such facilities shall be used only for agreed purpose,
not to be used for bypass of traffic and not to be resold to other parties unless
agreed otherwise; third party rights; provision on who bears the cost of upgrading
and modifying interconnecting networks to meet service requirements of Access
Seeker; applicable laws, i.e., agreement to be governed by, and interpreted in
accordance with, the laws of the relevant jurisdiction;
(xii) Fundamental Technical Plans: responsibilities and rights of parties with respect
to: network management, maintenance, integrity, safety and protection; traffic
and link measurements; and foreseeable or foreseen degradation in traffic
performance;
(xiii) Confidentiality, Liability and ndemnities: provisions regarding non-disclosure to
third party of information exchanged between contracting parties; liabilities,
indemnification and limitation of liabilities for breach of agreement; force majeure,
i.e., list of conditions for which non-performance of interconnection agreement
obligations will be excused;
(xiv) Contract Termination and Review: grounds for termination (e.g., regulatory or
court orders, bankruptcy, insolvency, receivership, cessation of business, etc.);
termination restrictions; termination procedures, including advanced notice
requirements, payment of non-recoverable interconnection costs incurred by
disconnected operator, dealings with end-users, communication restriction, etc.,
disconnection cutover procedures
(xv) Disputes: procedures for resolution of disputes under agreement, e.g., negotiations,
referral to regulator, arbitrator or court, selection of, and procedures for arbitration;
(xvi) Notices: procedures for notifications, petitions, claims and other communications
related to the agreement.
4. The schedules accompanying the main clauses or articles include, but not limited to:
(i) Specific details on Points of nterconnection: identification of POs (geographical
location, address, present state) indicating type of selector (e.g., local, transition,
international); description of network facilities to be interconnected; capacity and/
or traffic volume requirements; conditions limiting supply; identification of which
party is to provide which facilities; technical specifications, e.g., calling line
identification specifications, advanced digital feature specifications, basic and SDN
call control interface specifications; type of signaling networks; signaling POs
locations (i.e., Signal Transfer Points); point codes; technical interface
specifications; diagram of signaling interconnection architecture;
(ii) nterconnect Usage Charges: specific set-up, rental and usage charges;
(iii) Charges for use of Unbundled Network Elements (where applicable): usage charges
for specific network elements such as: access loop, remote subscriber units (RSUs),
links to RSUs, local exchanges (LEs), links to LEs, LE transmission link, tandem
exchange switch (TAX), TAX to international gateway link, international gateway
element, etc.;
(iv) Charges for Sharing of nfrastructure Elements: specific type of facility, charges
and other pertinent details;
(v) Charges for Miscellaneous Services: specific type of facility, charges and other
pertinent details;
(vi) Schedule of Standards and Specifications: quality of service standards such as:
average time for provisioning interconnection circuits, switching and transmission
quality measures on interconnected circuits (e.g., probability of blockage at peak
hours, transmission delay and loss), percentage of interconnection cutovers on
scheduled dates;
(vii) List of infrastructure and their respective capacity that are available for sharing
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5. A cost model which is the basis of access prices offered by an Access Provider shall
be submitted to the Commission, together with the proposed RAO. On request of the
concerned carrier, the Commission will not publish said cost model to protect the
carriers commercial interest.
6. The terms and conditions in the RAO must conform to the guidelines on the technical,
operational and commercial arrangements set out in Articles V and V of this
Memorandum Circular.
7. The prices, terms and conditions in the RAO are deemed valid offers for a period of 3
years, unless otherwise specified. The Commission may allow a shorter offer period if
it is in the long-term interest of end-users.
Section 5. Approval of RAO
1. An Access Provider shall submit its proposed RAO and supporting cost model to the
Commission within 90 days from the time it is directed to do so.
2. The Commission shall determine if the terms and conditions stipulated in the RAO are
reasonable, fair, consistent and non-discriminatory.
3. n determining whether the RAO proposed by a carrier conforms to the aforementioned
principles, the Commission shall have regard, among others, to the following factors:
(i) the long-term interests of end-users;
(ii) the legitimate business interests of both access provider and seeker;
(iii) the economically efficient use of a telecommunications network or facility; and
(iv) the operational and technical requirements for the integrity and safety of use of a
telecommunications network or facility.
4. Within 90 days from the date the proposed RAO is received, the Commission shall
communicate in writing its decision to the concerned carrier.
Alternatively, the Commission may inform the concerned carrier if it would require
additional time to complete its review. f the Commission fails to communicate with the
concerned carrier either its decision or its need for additional time within 90 days from
the date of receipt, the proposed RAO shall be deemed approved by the Commission
and binding on the access provider.
5. f the Commission disapproves of some provisions in the proposed RAO, it shall inform
the concerned access provider in writing of its disapproval and the modifications required
for the proposed RAO to meet the Commissions standard. The access provider shall
be given 30 days to modify the proposed RAO. Within 30 days from the submission of
the modified RAO, the Commission shall render its final decision on the proposal. f
the Commission takes no action within 30 days, the proposed RAO is deemed approved.
f after submission of the modifications, the concerned access providers submitted
RAO still do not meet the Commissions standard, the Commission may then order or
mandate such specific terms and conditions as will enable the RAO to meet its required
standard, after which such revised RAO shall be deemed approved and binding on the
access provider; Provided however, that nothing in this paragraph shall prevent parties
from negotiating and executing a subsequent access agreement and submitting the
same to the Commission for approval.
Section 6. Modification of terms and conditions in RAO
1. An Access Provider is not allowed to modify or withdraw its RAO after it has been
submitted to the Commission, unless otherwise approved upon petition, by the
Commission.
2. Any access agreement adopted pursuant to an approved RAO may not be terminated
by an access provider prior to the end of the period at which the RAO is valid, without
the approval of the Commission.
3. The terms and conditions of the access agreement that is entered into pursuant to a
RAO may not be modified or amended except by mutual written consent of the parties
concerned and with the approval of the Commission.
4. When deemed necessary to promote the long-term interest of end-users, the
Commission may direct a carrier to modify any provision in its RAO, or approve a
proposed modification thereof, in which case, all access agreements entered into
pursuant to the relevant RAO must be amended accordingly.
Section 7. Publication of RAO
1. The Commission shall publish in its website all approved RAOs. Some portions of the
RAO may however be withheld for publication on motion of the carrier making the offer
and if the Commission determines that the pertinent portions contain proprietary or
commercially sensitive information.
2. All carriers mandated to develop RAO(s) are also obliged to publish the same in their
respective websites.
Article III
ACCESS AGREEMENTS
Section 1. An Access Seeker may seek access with an Access Provider on terms
and conditions specified in an approved RAO or in a negotiated individualized agreement.
Section 2. All access agreements, whether entered into in pursuant to an approved
RAO or individualized agreement, will not become effective until approved by the Commis-
sion.
Section 3. Access Pursuant to an Approved RAO
1. When an access seeker unconditionally accepts a RAO, it shall notify the Access
Provider of its acceptance. The Access Provider shall execute the access agreement
based on the terms and conditions contained in its RAO within 30 days from date of
formal notification by an Access Seeker.
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2. The access agreement entered into by parties based on a RAO shall be submitted to
the Commission for approval within ten (10) days from date of execution. Unless certain
stipulations in the agreement deviate from the provisions in the RAO, the Commissions
approval of the agreement shall be rendered within two (2) days from date of filing. f
the Commission takes no action within 2 days from date of filing, the agreement will
be deemed approved.
3. n case some clauses in the agreement deviate from the terms and conditions stipulated
in the RAO, the agreement shall be considered a negotiated individualized agreement
between the Access Provider and Access Seeker. The agreement must be submitted
to the Commission within ten (10) days from date of execution for approval within thirty
(30) days from date of filing.
Section 4. Access Pursuant to an Individualized Agreement
1. n case the Access Seeker elects to obtain access through an individualized agreement,
it shall notify of its intention to negotiate the same with the Access Provider. Pending
the conclusion of the negotiations for the individualized agreement, it may avail, in the
interim, of the services that it requires at prices and on terms and conditions stipulated
in the RAO of the Access Provider.
2. ndividualized access agreements shall be submitted to the Commission within ten
(10) days from date of execution for approval within thirty (30) days from date of filing.
f the Commission takes no action within 30 days, the agreement is deemed approved.
3. The Commission shall reject an individualized agreement, or order its modification or
amendment, if the terms and conditions of the same discriminate against other Access
Seekers that entered into agreement with the Access Provider under the terms and
conditions of an approved RAO.
4. The NTC shall publish on its website a list of all individualized agreements, specifying
the parties involved and services covered, that have been approved, either directly or
by lapse of the 30-day period. Any interested Access Seeker, whether covered by an
existing RAO or individualized agreement or not, may then request the NTC for an
official copy of any such individualized agreements, and may call for a renegotiation of
its existing agreements with the Access Provider, if it deems necessary in light of the
terms of the approved individualized agreement. The Access Seeker may also petition
the NTC to intervene if renegotiation efforts fail.
Article IV
TECHNICAL SPECIFICATIONS AND OPERATIONAL
REQUIREMENTS OF ACCESS
Section 1. POI and Interconnection Principles
1. An Access Provider shall specify in its RAO technically feasible points at which it
would permit interconnection without additional charge, the means by which access
will be achieved, and the additional charges to the access seeker if the latter requests
POs other than those offered.
2. The terms and conditions pertaining to the establishment of PO must not be less
favorable to the Access Seeker as those provided in Articles V and V of Memorandum
Circular 14-7-2000.
3. Pursuant to Executive Order No. 59, Republic Act No. 7925, the Access Provider is
required to specify as many points of presence (POPs) as necessary to effect an
efficient interconnection.
4. The RAO shall contain information about the type of traffic to be carried across the
offered POs, type of signaling networks or standards, signaling POs locations, point
codes, technical interface specifications and signaling interconnection architecture.
5. The Access Provider shall publish in its website and specify in the RAO the following
information on each of the offered PO:
(i) Geographical location, address and present state, including the type of selector
(e.g., local, transition, international);
(ii) Type of equipment, location of the equipment, capacity of selector, architecture
and other information about the network essential for interconnection;
(iii) Number of groups associated with each PO; and
(iv) Significant factors affecting the availability of POs.
Section 2. Network and Transmission Requirements
1. A RAO shall specify the rights and obligations of each party with respect to ordering
and provisioning of interconnection facilities, procedures and timeframes for ordering
and notification of order confirmation, rejection and completion. Such stipulations must
not be more burdensome or less favorable to any Access Seeker as those provided in
Article X of Memorandum Circular 14-7-2000.
2. The timeframes specified in the RAO for the provision of additional circuits must be
consistent with Section 10.4, Article of Memorandum Circular 9-7-93.
3. The Access Seeker accepting the RAO shall provide information to the access provider
through a formal communication about the location of POs that it is requesting, traffic
forecasts for each PO (in volume or data rate, as appropriate), number of ports/
connection inlets and outlets, other facilities it may require for interconnection and
time schedule.
4. Within ten (10) days from receipt of such formal communication, the access provider
shall respond to the request, either accepting or proposing an alternative, to meet fully
or partially the requirements of the access seeker. f the access provider does not
respond within 10 days, the request is deemed accepted and the obligation of the
access provider to supply the requested facilities within the timeframe specified in the
RAO, and under the supervision of the NTC, shall commence.
5. A RAO shall contain specific timeframes by which an access provider is obliged to
provide advance notice to the access seeker concerning changes in network and
facilities that may affect interconnection arrangements between them.
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6. The access provider shall bear all costs necessary to restore agreed upon access
arrangements that may have been affected by changes in its network and facilities.
Section 3. Traffic Measurement and Routing
1. A RAO shall describe the responsibilities of parties with regard to measurement and
reporting of traffic. Absent specific provisions in a RAO, the provisions of Article V of
Memorandum Circular No. 14-7-2000 are deemed to apply.
2. The Access Provider shall stipulate in its RAO that it commits to nondiscriminatory
routing of traffic.
3. The RAO shall provide for how the costs of restoration shall be shared by the Parties
in cases of major network breakdown.
Section 4. Infrastructure Sharing and Collocation
1. The access provider shall include in its RAO:
(i) A list of infrastructure being offered for sharing with access seekers;
(ii) Addresses where collocation is available and preferred type of collocation;
(iii) Procedures for determining available capacity, requesting reservation of space,
and allocating capacity among requesting operators;
(iv) Prices and/or costing method for sharing of infrastructure and collocated space;
(v) Provision and pricing of supplementary services, e.g. electrical and emergency
back-up power, lighting, air conditioning, security systems, maintenance and
janitorial services, etc.; and
(vi) Procedures for gaining access to and ensuring security of collocated facilities.
2. The standards of physical and virtual collocation stipulated in Article XV of Memorandum
Circular 14-7-2000 shall apply.
3. The Access Provider shall publish in its website or in its RAO an updated list of its
infrastructure, their location and capacity available for sharing.
4. The Commission may require the Access Provider to prove that physical collocation is
not technically feasible if such is not offered, and why the alternative method of
interconnection offered is the most efficient under the circumstances.
5. Shared infrastructure shall be made available to all access seekers on a
nondiscriminatory basis. A first-come, first-served basis for allocating capacity shall
be preferred unless a more efficient procedure is offered.
6. Access seekers that do not use ordered infrastructure capacity within a set timeframe
may be required to return it. The access provider may impose penalty on or seek
indemnification from the Access Seeker for excess orders.
Section 5. Billing and Settlement
1. Both parties are obliged to collect, store and exchange data relating to traffic passing
through their network to facilitate inter-carrier charging and settlement.
2. The Access Provider shall stipulate the billing arrangements such as:
(i) the frequency and period when a bill or invoice is expected to be sent to the other
party;
(ii) due date of payment;
(iii) punitive interest rate to be applied on payments made after due date; and
(iv) legal course of action of the access provider if an invoiced amount remains
outstanding after a specified time period.
Such stipulations should not be more burdensome or less favorable to the Access
Seeker as those provided in Sections 18 and 19, Article V of Memorandum Circular
14-7-2000.
3. The Commission reserves the right to audit the billing system of the Access Provider
when it deems necessary.
4. The Access Provider may invoice the access seeker for charges applicable to prior
billing period, provided that said charges can be reasonably substantiated. The access
provider shall have a six-month timeframe within which it may be allowed to invoice
retrospectively. n the absence of a prior written agreement, the access seeker shall
not be required to pay for omitted charges beyond this six-month period.
5. A RAO shall provide mechanisms to enable parties concerned to settle bilaterally
disputes arising from accuracy of traffic measurement before seeking regulatory
intervention. For example, the parties may jointly select an auditor to assist in the
resolution of a dispute. n which case, all related costs shall be shared by the parties.
Where no resolution is possible and regulatory intervention is sought by either party,
the Commission may require the parties to submit their Call Data Records (CDRs) for
audit.
Section 6. Technical Service Commitments and Fault Repairs
1. An access provider shall commit to provide the quality of service comparable to what
it provides to itself and to its affiliates or subsidiaries or to any other recipient of its
services. Further, it shall maintain and repair faults on interconnection links in the
same manner as it maintains facilities and repair faults within its own network.
2. Quality of service (QoS) commitments shall constitute an integral component of the
RAO. Said commitments must conform to performance standards set out by the
Commission or international bodies such as the nternational Telecommunications
Union (TU). The performance standards shall be specified for all types of interconnection
links between two networks and shall be binding on both parties.
3. A RAO shall contain specific timeframes for fault rectification.
4. The access provider shall stipulate reasonable and fair remedies to the access seeker
in cases of:
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(i) delays in establishing a PO;
(ii) delays in supplying an interconnection service; and
(iii) any interruption in the supply of interconnection service, measured from the time
notice of interruption is served by the access seeker to the access provider, in
excess of a stipulated permissible outage period for that service.
Further, the access provider shall stipulate procedures to enable the access seeker
avail of said remedies.
Section 7. Data Interchange and Treatment of Customer Information
1. The access provider shall stipulate the data to be exchanged with the access seeker
and the method and format of data interchange.
2. The access provider shall stipulate in a RAO that all information generated within its
network as a result of or in connection with the supply of interconnection service to the
access seeker is the confidential information of the access seeker. Thus, provisions in
Section 9 of this Article apply on the use and disclosure of such information.
3. t is generally considered unethical for an access provider or seeker to communicate
with the end-users of the other party, particularly for purposes of soliciting accounts.
The access provider may however stipulate in the RAO the limited circumstances
when communication with the other partys end-users is allowed and the manner of
communication. Under no circumstance, however, will such communication involve
attribution of blame for a fault, suspension of service, or poor quality of service to the
other party.
Section 8. Ancillary Interconnection Services
1. The access provider shall specify the types and prices or individual costs of ancillary
interconnection services that are bundled with the interconnection service it is offering,
e.g., subscriber listings, operator assistance services, etc.
2. Charges for ancillary interconnection services shall be specified separately from charges
for basic interconnection service.
3. The access provider must at least offer to supply directory assistance functions to the
access seeker.
Section 9. Confidentiality, Liability and Indemnities
1. Unless the parties agree to stipulate otherwise, all confidential information of one
party may not be used or copied by the other party, nor disclosed or communicated to
any third person, except for the purposes of implementing the terms and conditions of
the interconnection agreement.
2. The RAO shall contain liability provisions that apply to both parties, i.e., reciprocal.
The designation of the party at fault for purposes of determining liability must be
consistent with the principle that the risk should be placed on the party which has the
greater ability to control it.
3. The access provider shall stipulate the type and amount of indemnity that one party is
entitled when it incurs a loss caused by the negligence, intentional act or omission of
the other party.
Section 10. Contract Termination and Review
1. The access provider shall stipulate specific and valid grounds for suspension and
termination of core services, such as, for example, failure of the access seeker to pay
interconnection fees or breach of material obligation by the access seeker.
2. Reasonable timeframes for prior notice of suspension or termination of interconnection
service must be specified in the RAO.
3. The suspension and termination procedures must be clearly stipulated in the RAO.
These may involve advanced notice, payment of non-recoverable interconnection costs
incurred by the disconnected operator, computation and payment schedule for
disconnection costs, disconnection cutover procedures and dealings with end-users,
etc.
Section 11. Dispute Resolution
1. The RAO shall have clear provisions in managing disputes; procedures for resolution
of disputes; selection of, and procedures for, arbitration; and timeframes for escalation
at management levels and or referral to regulator, arbitrator or court.
2. Alternatively, the parties may agree to form an arbitration committee, composed of
one representative each from the contracting parties and a third party member, whose
decision shall be final and binding on the parties unless there is manifest error in the
decision or the same is contrary to law.
Article V
COMMERCIAL TERMS OF ACCESS
Section 1. Structure of Access Charges
1. Where applicable, the access provider shall clearly distinguish the following types of
access-related charges:
(i) A one-time set-up charge for establishing or augmenting interconnection facilities;
(ii) Structure and prices of basic interconnection/access service;
(iii) Charges for ancillary interconnection services; and
(iv) Access Deficit Contribution (ADC).
2. Where major reconfiguration of the Access Providers network or facilities is required
by interconnection, the one-time set-up charge shall be proportionate to the asset
provided to the Access Seeker.
3. The prices for basic interconnection service must be consistent with the provisions of
Sections 2 and 3 of this Article.
876
4. Charges for ancillary interconnection services must include only costs associated
with the delivery of pertinent services to the Access Seeker and attributable portion of
a reasonable return on efficient level of investment in the assets employed to provide
the ancillary service.
5. Compensation for access deficit shall be guided by the provisions in Section 4 of this
Article.
Section 2. Cost-oriented Access Charges
1. All access-related charges stipulated in the RAO must be reflective of costs underlying
the services offered, including a reasonable return on efficient level of investments.
2. The burden of demonstrating the cost orientation, reasonableness and fairness of the
interconnection charges shall lie with the Access Provider. The cost model accompanying
the proposed RAO shall serve this purpose.
3. The Commission may require an Access Provider to supply full justification for its
offered access charges and direct the same may to adjust said charges, where
appropriate.
Section 4. Cost Methodology
1. The Commission shall designate the three (3) years following the effectivity date of
this Memorandum Circular as a transition period to the next phase when all
interconnection charges will be benchmarked henceforth using the cost principle of
Total Service Long-run ncremental Cost plus mark-up (TSLRC plus). TSLRC is based
on the difference in costs between producing a service and not producing it, with costs
reckoned in terms of current technology. A mark-up, representing a reasonable allocation
of forward-looking joint and common costs, supplements TSLRC to allow recovery of
indirect costs. This cost accounting will not be imposed on Access Providers until
such time that the Commission issues a detailed methodology.
2. During the transition period, the Access Provider must demonstrate that the
interconnection charges stipulated in the RAO do not exceed the costs calculated
based on the principle of Fully Distributed Cost (FDC).
3. Nothing in this Memorandum Circular shall be construed to limit the Access Provider
from offering access charges based on more efficient cost methodologies such as
Long-run ncrement Cost (LRC), TSLRC with or without mark-up and Total Element
Long-run ncremental Cost (TELRC), during and post transition period.
Section 5. Fully Distributed Cost
1. When the Access Provider elects to use fully distributed cost as basis for setting
access charges, it shall observe the cost accounting methods and principles set out
in this section.
2. All costs shall be allocated to services or products on the basis of causation, i.e.,
costs should be attributed to those services or products that cause the cost to be
incurred.
3. An Access Provider may determine its own attribution method, provided it is consistent
with the principle of causation, and subject to the Commissions approval and periodic
review. The bases and assumptions used in the allocation must be documented and
included in the cost model that the Access Provider is required to submit with its
proposed RAO.
4. For consistency, comparability and transparency, the Access Provider should use the
same attribution method in all its RAO and access agreements from year to year,
unless it is able to demonstrate that a different attribution method is more appropriate
because of changing technology.
5. The Access Provider, in its submission of the attribution method, shall clearly indicate
why a particular cost item is associated with a particular access service by classifying
pertinent costs according to the following categories:
(i) Direct cost, i.e., cost which is incurred solely by a particular access service and
is recorded in the accounts against the relevant access service;
(ii) Directly attributable cost, i.e., cost which is incurred solely by a particular access
service but is not recorded in the accounts against the relevant access service;
(iii) ndirectly attributable cost, i.e., cost which is part of common costs but which can
be attributed to a particular access service through a non-arbitrary and verifiable
cause-and-effect relationship; and
(iv) Unattributable cost, i.e., cost which is part of common costs and cannot be
identified to a particular access service through a non-arbitrary and verifiable cause-
and-effect relationship.
Costs should be further classified as fixed, if they do not vary with the volume of
service, or variable, otherwise.
6. The Commission may request an Access Provider to change, revise or modify its cost
methodology, including the attribution method, where it is considered that the
methodology does not meet the objectives of this Memorandum Circular.
Section 6. Removal of ADC
1. n accordance with Section 47, Article X of Memorandum Circular 14-7-2000, ADC
may be applied only if the Access Provider is a LEC but not when the interconnecting
parties are both LECs.
2. Within no less than three years from the effectivity date of this Memorandum Circular,
the Commission will continue to allow the Access Provider to include ADC among the
charges it levies on the Access Seeker. However, the amount representing ADC must
be clearly indicated in the schedule of interconnection charges.
3. The Commission may require the Access Provider imposing ADC to show that said
amount relates only to the gap between actual line costs and line revenue, and to
adjust the same if found excessive.
Article VI
EXERCISE OF REGULATORY FORBEARANCE
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Section 1. A public telecommunications carrier may request to be exempted from the
duty to publish RAO by submitting a written request for regulatory forbearance to the
Commission.
Section 2. The Commission may forbear from applying the provisions of this Memo-
randum Circular, in whole or in part, on an enfranchised carrier if in its determination:
(i) enforcement is not necessary to the attainment of the policy objective, i.e., of ensuring
sustainable competition through effective competition; and
(ii) forbearance will not impede the administration of this Circular.
Section 3. A public hearing may be held to assist the Commission in making a deter-
mination on the request for forbearance.
Section 4. The request for forbearance and the Commissions Exemption Order (EO)
shall be made public.
Section 5. Conditions may be attached to the forbearance if the Commission deems it
appropriate to ensure the long-term interests of end-users.
Article VII
TRANSITORY PROVISIONS
Section 1. Parties with existing interconnection agreements when this Memorandum
Order takes effect shall have a period of one (1) year to renegotiate, amend, revise or
modify the terms and conditions of their agreement to conform to the provisions of this
Memorandum Circular. n case the parties fail to agree on such amendments, revisions or
modifications, such shall be considered an access dispute, and upon petition of either
party to the agreement, the Commission shall intervene in accordance with Section 14 of
Memorandum Circular 14-7-2000.
Section 2. n the event the Commission is delayed in approving the proposed RAO of
the Access Provider, the terms and conditions of existing individualized agreement shall
remain valid until a new agreement pursuant to an approved RAO is forged.
Article VIII
PENALTIES FOR VIOLATION
Section 1. Noncompliance with the provisions of this Order shall be subject to the
same set of penalties applicable to violations of the rules and regulations of Executive
Order 59. To wit, upon due notice and hearing, one or combination of the following penal-
ties shall be imposed on a noncompliant carrier:
(i) Administrative fines, penalties and sanctions as may be allowed or prescribed by
existing laws;
(ii) Suspension of further action on all pending and future applications for permits, licenses
or authorizations of the violating carrier or operator;
(iii) Disqualification of the responsible employees, officers or directors of the violating carrier
or operator from being employed in any enterprise or entity under the supervision of
the Commission;
(iv) Suspension of the authorized rates for any service or services of the violating carrier or
operator without disruption of its services to the public.
Section 2. The Commission may revoke its approval of the access agreement if the
terms and conditions of the same are found noncompliant with the provisions of this Circu-
lar.
Article IX
FINAL PROVISIONS
Section 1. Any portion or section of these rules which may be declared invalid or
unconstitutional shall not affect the validity of the other remaining portions or sections.
Section 2. All existing memoranda, circulars, rules and regulations inconsistent with
the provisions of this memorandum circular are hereby repealed or amended accordingly.
Section 3. This Memorandum Order shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general circulation
in the Philippines; Provided, that at least three (3) certified copies thereof be filed with the
University of the Philippines Law Center.
(SGD.) RUEL V. CANOBAS
Commissioner
(SGD.) JORGE V. SARMENTO (SGD.) JAME M. FORTES, JR.
Deputy Commissioner Deputy Commissioner
Memorandum Circular No. 01, s. 2009
Revised Guidelines Governing Access to SALNs Filed with the Ombudsman
WHEREAS, while the Office of the Ombudsman is willing to furnish copies of the
statements of assets and liabilities of public officials and employees filed before it, including
those of its officials and employees to persons requesting for the same, the reason for the
request must be legitimate. The reasons accepted by this Office as legitimate are a) when
the requested SALN is needed in school for study purposes, b) when the same is to be
disseminated to the general public by news and communication media, or c) upon a court
subpoena duly signed by a Presiding Judge in a pending criminal case or in the case of
another quasi-judicial agency, upon request personally signed by its authorized officer/
representative.
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WHEREAS, this Office is cognizant of the fact that in other times, the request is
made under circumstances which may endanger, diminish or destroy the independence
and objectivity of the Office of the Ombudsman and its officials in the performance of their
quasi-judicial functions or expose them to revenge for adverse decisions, thus the following
revised guidelines are hereby adopted:
1. All SALNs filed with the Office of the Ombudsman, including its area and sectoral
offices, shall be accessible and made available to the public for inspection/reproduction
during reasonable hours of working days and within the view of the custodian officer.
2. The SALNs shall be made available for copying or reproduction after ten (10) working
days from the time they are filed as required by law. However, the statement shall be
available to the public for a period of ten (10) years after receipt of the statement. The
statement may be destroyed after such period unless needed in an ongoing investigation.
3. The requester shall be required to accomplish the attached form* which shall be sub-
scribed and sworn to before any prosecutor in the Office of the Ombudsman.
4. All requests for copies of SALNs shall be filed with the Public Assistance Bureau (PAB)
of the central and area/sectoral offices of the Office of the Ombudsman. The first duty of
the processor shall be to determine if the requested SALN is in the custody of the Office of
the Ombudsman pursuant to Section 1 (c), Rule V, Republic Act No. 6713 and CSC
Memorandum Circular No. 20, s. 1994. f it is not in the custody of the Office of the
Ombudsman, it is the processors duty to promptly inform the requester that it is in the
custody of another office/agency.
5. All requests for copies of SALNs filed with the Office shall be made in the attached form,
clearly and legibly indicating therein the requesters full name, signature, business or
residential address, telephone number or other circumstances which will show that the
requesting party is not fictitious, and that the purpose for the request is legitimate.
i. The requester shall present the original of at least two government issued D
bearing the requesters picture and signature for the processors photocopying.
The following shall be among the accepted Ds:
a. GSS/SSS D
b. TN/Pag-BG/PhilHealth D
c. Passport
d. Drivers license
e. PRC D
f. BP D
g. (f requester is a student) Student D
ii. Where the purpose stated is contrary to morals or public policy, or is
commercial in nature other than by news and communications media for
dissemination to the general public, the request shall be denied outright.
iii. Where the purpose of the inspection/reproduction is for study, the name of
the owner of the SALN shall not be disclosed by the requester. n all cases the
private address of the owner of the SALN shall be blackened.
iv. Where the purpose of the inspection/reproduction is not for study purposes
or dissemination to the general public by news or communication media, or
where the requesting party appears to be fictitious, the PAB shall refer the
partys request to the Office of Legal Affairs (OLA) for final approval/denial. n
granting/disapproving the request OLA shall consider the following:
a. The independence of the Office of the Ombudsman is constitutionally
important as the right to information which is subject to limitations provided by
law. Under specific circumstances, the need for the fair and just investigation,
prosecution and/or adjudication of litigations may require the Office to be wary
of deceptive requests for information which shall otherwise be freely available.
Where the request is directly or indirectly traced to a litigant, lawyer, or interested
party in a case pending before the Office, or where the Office is reasonably
certain that a disputed matter will come before it under circumstances from
which it may, also reasonably be assumed that the request is not made in
good faith and for a legitimate purpose, but to fish for information and, with
implicit threat of its disclosure, to influence an investigation/prosecution or a
decision or to warn the Office or its officials of the unpleasant consequences of
an adverse finding or judgment, or where a decision has just been rendered by
the Office against the person making the request and the request for information
appears to be a fishing expedition intended to harass or get back at the
concerned officials of the Office, the request shall be denied.
b. Where there are reasons to believe that the request for SALNs will
be utilized for extortion purposes or will pose danger to the personal safety of
the official or employee concerned and/or that of his family, the request shall
not only be denied but shall be immediately reported to the proper law
enforcement agency.
v. The reason for the denial of the request for SALN examination, inspection or
reproduction shall be specified in all cases.
6. The request for SALN shall be acted upon within the period provided for under the
Citizens Charter of the Office. The name and signature of the processor shall be clearly
indicated in the request form.
7. n case the requester has reason to believe that an official or employees assets
and properties are unreasonably disproportionate to his/her income, instead of requesting
for the official or employees SALN, the requester may report the matter in writing to the
Office of the Ombudsman including the reason for his/her belief. The matter will be acted
upon by the Field nvestigation Office (FO) which shall request for the official or employees
SALN.
8. To protect the right to privacy of the concerned public official or employee whose
SALN is being sought, the requesting partys written request accomplished in the prescribed
form shall be treated as part of the public record, which shall be readily made available to
the public official or employee who may avail himself of all legal remedies against the
requesting party should said official or employee feel that the requesting party has unlawfully
encroached on the formers right to privacy and violated his/her undertaking. The request
form shall be kept by the custodian officer of the SALN.
882
9. Once the request for a SALN has been approved, the processor shall ensure the
following:
i. That the requesting party pays the cost of reproduction of the requested
SALN;
ii. That the requesting party certifies under oath that he/she will abide by the
undertaking stated in the prescribed form;
iii. That the prescribed form is duly subscribed by an authorized administering
officer; and
iv. That the private address of the owner of the SALN is blackened in the
copy to ensure that his/her privacy is maintained.
All previous issuances inconsistent herewith are hereby revoked and/or modified
accordingly.
This Memorandum Circular shall take effect after fifteen (15) days following the
completion of its publication in a newspaper of general circulation and upon filing with the
University of the Philippines Law Center of three (3) certified copies thereof.
(SGD.) MA. MERCEDTAS NAVARRO-GUTTERREZ
Tanodbayan
OFFICE OF THE PRESIDENT
Executive Order No. 785
Mandating the Presidential Task Force on Climate Change to
Develop the National Climate Change Framework, Directing the Task
Group on Information to Develop and Coordinate a National Information,
Education and Communications Program, and Directing the Presidential
Adviser on Climate Change to Review Government Climate Change
Programs and Official Development Assistance Projects
WHEREAS, Executive Order No. (EO) 774 reorganized the Presidential Task Force
on Climate Change;
WHEREAS, EO 774, Section 19 provides that the Presidential Adviser on Climate
Change shall oversee the execution and implementation of said EO;
NOW, THEREFORE, , GLORA M. ARROYO, President of the Philippines, by the
powers vested in me by law, do hereby order:
SECTION 1. Powers and Functions - The Presidential Task Force on Climate
Change (PTFCC) shall:
a. Formulate and develop a national climate change framework that will integrate, consoli-
date and institutionalize government initiatives to achieve synergy in the implementation of
climate change programs and projects;
b. Coordinate and review government and official development assistance programs and
projects;
c. Monitor the implementation of climate change projects as identified in Executive Order
No. 774 and hereunder;
d. Perform other functions that may be assigned by the President.
SECTION 2. Task Group on Information - The Task Group on nformation shall
develop and coordinate a national nformation, Education and Communication Program on
climate change.
SECTION 3. Presidential Adviser on Climate Change (PACC) - The PACC shall
coordinate and review government projects on adaptation and mitigation as identified in
EO 774 and herein, as well as official development assistance projects on adaptation and
mitigation.
SECTION 4. Repealing Clause - All orders, rules and regulations and issuances or
parts thereof which are inconsistent with this Order are hereby repealed, amended or
(SGD.) GLORA MACAPAGAL-ARROYO
By the President:
(SGD.) EDUARDO R. ERMTA
Executive Secretary
--o0o--
Assigning Number 17 as (PROTOCOL) License Plates to Motor Vehicles
Used By Metropolitan Trial Court (MTC), Metropolitan Trial Court in the
Cities (MTCC), Municipal Trial Court (MTC) and Sharia Court Judges
884
The Number 17 as (Protocol) License Plates is hereby assigned to Motor Vehicles
Used by First Level Court Judges, i.e., Metropolitan Trial Court (MTC), Metropolitan Trial
Court in the Cities (MTCC), Municipal Trial Court (MTC), and Sharia Court.
This Memorandum Order shall take effect immediately after its publication in a
national newspaper of general circulation.
By Authority of the President:
Executive Secretary
--o0o--
Reiterating Government Belt-Tightening
WHEREAS, in challenging economic times, the government must tighten its belt
and live within its means, just like the average Filipino household;
WHEREAS, to that end, the government is taking a series of actions to stop
unnecessary and wasteful spending;
WHEREAS, the taxpayers deserve no less from their government and public servants;
WHEREAS, the government must pour all savings and revenue into programs that
help the poor and the middle class;
WHEREAS, government-wide, a one-and-a-half reduction of Maintenance, Overhead
and Operating Expenses translates to a savings of Seven Billion Pesos (P7,000,000,000.00);
WHEREAS, an ndependence Day Parade costs more or less Thirty Million Pesos
(P30,000,000.00);
WHEREAS, some forty thousand (40,000) Filipino workers, notably in the export
industry, have been displaced by the global economic crisis;
NOW, THEREFORE, GLORA M. ARROYO, President of the Philippines, by the
power vested in me by law, do hereby order:
SECTION 1. As mandated earlier this year through Executive Order No. 782, all
government agencies and instrumentalities, including all departments, bureaus, attached
agencies, government-owned and controlled corporations and government financial
institutions, shall reduce their respective Maintenance, Overhead and Operating Expense
(MOOE) budgets by one and a half percent (1.5%). Savings from MOOE shall be allocated
to emergency employment for the next six (6) months.
SECTION 2. As mandated in early 2008, all government agencies and entities shall
undertake electricity and fuel saving measures, including but not limited to the following:
the consumption of fossil fuels shall be brought down by twenty-five percent (25%); electric
consumption shall be reduced by at least ten percent (10%); air conditioners shall be
turned off at 4:30 p.m. except those with 24-hour work; incandescent bulbs shall be replaced
with Compact Flourescent Lamps; twenty percent (20%) of the vehicles of the national
government, including those of the government-owned and controlled corporations, shall
be converted to the use of natural gas.
SECTION 3. National government vehicles, including those of government owned
and controlled corporations, which are not issued to an official and are not on official trip,
shall be garaged in the agency office, and the keys shall be kept by guards, during weekends
and holidays. All local government units are likewise enjoined to adopt the same policy.
Letter of nstructions No. 991 (s. 1980) and its corresponding Guidelines embodied in
Department Administrative Order No. 82-004 (s. 1982) concerning the issuance of security
plates shall be strictly implemented.
SECTION 4. On ndependence Day, June 12, the annual parade shall be foregone.
nstead a mega-jobs fair shall be organized to enable the forty thousand (40,000) workers
displaced by the global crisis find employment or livelihood.
SECTION 5. This Administrative Order shall take effect immediately.
(SGD., GLORA MACAPAGAL-ARROYO
By the President:
Executive Secretary
--o0o--
Promoting A Youth National Service
WHEREAS, we must tackle many challenges at once to keep our economy and
way of life going strong;
WHEREAS, on the part of government, we must live within our means and run a
lean, efficient government. This includes continued fiscal prudence and efforts to work
towards a balanced budget. All the while, we must also simultaneously invest in key
programs for our people: economy, environment, education;
WHEREAS, On the part of the people, now is the time for pulling together and
focusing on family and the community. We must initiate a new era of volunteerism and
886
community spirit. This should include the government, religious and civic groups and non-
governmental organizations harnessing our people to engage in coordinated volunteer
activities. We should focus on initiatives such as cleaning up our environment, building
parks and planting trees and bringing comfort to the poor through food banks and bringing
the dignity of literacy to adults who cannot read;
WHEREAS, during these trying times, the Philippine spirit and commitment to caring
should prompt each of us to count our blessings and give back to those who are less
fortunate. Our nation needs us all pulling in the same direction. Volunteering time, skill and
resources is a noble undertaking we should all take seriously;
NOW THEREFORE, , GLORA M. ARROYO, President of the Philippines, by the
powers vested in me by law, do hereby order:
SECTION 1. A youth national service targeting 18 to 24 year-olds is hereby promoted.
This national service shall be composed of a National Service Corps and a Youth
Conservation Corps.
SECTION 2. The National Service Corps shall be like a domestic Peace Corps. t
shall be geared to the unemployed or underemployed skilled youth or college graduates. t
shall focus on their contributions to education and community service programs. Such
youth shall be recruited to undertake a two-year national service commitment with a modest
stipend.
SECTION 3. The Youth Conservation Corps (YCC) shall be composed of the unskilled
or less-educated youth. They shall focus on environmental and infrastructure projects.
Such youth shall be recruited to likewise undertake a two-year national service commitment
with a modest stipend. The current program known as Out of School Youth Serving Towards
Economic Resiliency (OYSTER) shall be subsumed into the YCC.
SECTION 4. The funding for the national service shall initially come from the savings
of all the national agencies, including government owned and controlled corporations, of
one and a half percent (1.5%) of their maintenance, operating and overhead expenses and
from the Road Users Tax. Thereafter, it shall be supplemented by specific provisions in the
annual national budget submitted to Congress.
SECTION 5. The national service shall be coordinated by the National Youth
Commission. The National Service Corps shall be implemented by the Department of
Education and the Department of Social Welfare and Development. The YCC shall be
implemented by the Philippine National Police with the support and assistance of the
Department of Environment and Natural Resources and the Department of Public Works
and Highways.
SECTION 6. This Order shall take effect immediately.
By the President:
Executive Secretary
--o0o--
Enhancing the Project Performance Monitoring and Evaluation System
WHEREAS, Executive Order (E.O.) 376 s. 1989 signed by former President Corazon
C. Aquino, as amended by E.O. 93, s. 1993 signed by President Fidel V. Ramos, established
the Regional Project Monitoring and Evaluation System (RPMES) to expedite project
implementation;
WHEREAS, E.O. 564 s. 2006 and 564-A s. 2007 redefined and restructured the
RPMES into the Project Performance Monitoring and Evaluation (Pro-Performance) System
in order to ensure the diligent delivery of government projects within the purview of good
governance and transparency;
WHEREAS, the Pro-Performance System (PPS) was lodged in the Presidential
Management Staff (PMS) as it can, independently of implementing agencies, monitor and
provide timely and proactive information on needed actions to ensure the timely completion
of priority programs and projects;
WHEREAS, implementing agencies have contingency funds which can be used to
conduct appropriate facilitative and advocacy campaigns, and other related activities;
WHEREAS, there is a need to enhance the mechanisms of the PPS to enable it
pursue its objectives more effectively;
NOW, THEREFORE, , GLORA M. ARROYO, President of the Philippines, by virtue
of the powers vested in me by the Constitution, do hereby order:
SECTION 1. Objectives. The PPS is an integrated monitoring system established
to facilitate, evaluate and advocate; and to strategically monitor the implementation of the
Presidents priority programs and projects. As such, this function shall form part of the
mandate of the PMS. Specifically, the PPS shall have the following objectives:
a) To provide independent and up-to-date constructive information on the status of project
implementation based on physical development performance and quality, financial
performance and timeliness, and identify areas, issues and concerns that need to be
addressed by lead implementing agencies and/or project management offices;
b) To reinforce public-private partnership and collaboration in the monitoring of government
programs and projects;
c) To provide information as appropriate to the Presidential Anti-Graft Commission for the
latters action;
888
d) To ensure public awareness and participation through information campaign and advocacy
program.
SECTION 2. Coverage. The PPS shall monitor the priority programs and projects of
the President, such as, but not limited to the projects committed through the State of the
Nation Address, major infrastructure projects, health and education programs, regardless
of fund source.
SECTION 3. Organizational Structure. The PPS shall be implemented by a Steering
Committee (SC) composed of the following:
Chair - private sector representative
Co-Chairman - Secretary, PMS
Members - representative, business sector
representative, civil society sector
representative, academe
representative, youth sector
representative, mass media
representative, religious sector
representative, local government sector
representative, international development organizations
representative, national government (advocacy group)
Provided that: the President may reorganize the PPS-SC and shall designate its
Chair from among the private sector representatives as well as from other members of the
PPS-SC. The President may likewise include in the PPS-SC membership such
representatives from other sectors as may be necessary.
SECTION 4. Meetings. The PPS-SC shall convene every first Wednesday of the
month, while the President shall convene the PPS-SC on a quarterly basis. The PPS-SC
Chair, Co-Chair and members shall be entitled to Ten Thousand Pesos (P10,000.00)
honorarium per meeting.
SECTION 5. Organization Support. The following groups/bodies are directed to provide
the necessary support and assistance to the PPS-SC.
a) Technical and Secretariat Support - The PMS shall provide technical and secretariat
support to the PPS-SC.
b) Advocacy Support - All government television and radio networks shall allot air time for
purposes of communicating the status of all projects, including televised bidding of all
departments.
c) Inter-Agency Support - All departments, agencies and bureaus, offices and
instrumentalities, are likewise enjoined to extend full assistance and cooperation, and
to provide necessary relevant and timely information to the PPS-SC.
SECTION 6. Reports. The PPS-SC shall submit to the President through the PMS
monthly project evaluation reports with photo-documentation.
SECTION 7. Funding. To enable the PPS-SC and its Secretariat to effectively perform
its mandate, an operations budget of Ten Million Pesos (P10,000,000.00) shall be provided
by the Department of Budget and Management from sources as it may identify.
The PPS-SC operations budget, which shall be managed by the PPS-SC Secretariat,
shall cover capital outlay and operational expenses of the PPS, including the provision of
monitoring, evaluation and fact-finding budget.
The PPS-SC shall have the authority to require the implementing agencies to conduct
and fund from their respective contingency funds the appropriate facilitative and advocacy
campaigns and other related activities to promote public awareness and generate stakeholder
support for the Presidents priority programs and projects, subject to pertinent laws,
issuances and accounting and auditing rules and regulations.
SECTION 8. Repealing Clause. All orders, issuances, rules and regulations or parts
thereof inconsistent with this E.O. are hereby revoked or modified accordingly.
SECTION 9. Effectivity. This E.O. shall take effect immediately.
By the President:
Executive Secretary
--o0o--
Reforming the No-Payment, No Periodic Examination Policy in
State Universities and Colleges and Expanding the
Coverage of the Students Assistance Fund for Education
WHEREAS, in todays global economy, knowledge is the greatest creator of wealth;
WHEREAS, the government must pour all savings and revenue into programs that
help the poor and the middle class. This includes more and more investments in education;
WHEREAS, the social safety net programs of the Arroyo Administration have a laser-
like focus on expanding educational opportunities to enable the upward mobility of young
men and women from poor families;
WHEREAS, the Administration readily addresses educational concerns;
890
WHEREAS, two concerns have been brought to the attention of the Administration:
the rigid tuition fee payment rules of state universities and colleges (SUCs) and the clamor
to expand the coverage of the Students Assistance Fund for Education;
WHEREAS, the no-payment, no periodic examination policy is one of the main
reasons young students from poor families drop out from their SUCs. This has to change
to ensure a decent graduation rate form SUC enrollees;
WHEREAS, rigid tuition fee payment rules cannot be allowed to sabotage the great
educational agenda of the Administration;
WHEREAS, the benefits of the Administrations Student Assistance Fund for Education
should receive the fullest of endowments;
WHEREAS, the most inspiring stories of the Filipinos as a people are the great
stories of meritocracy; and driving, fueling and enabling those great success stories is one
constant - education;
WHEREAS, it is the policy of the State to protect, foster and promote the right of all
citizens to affordable quality education at all levels and shall take appropriate steps to
ensure that education shall be accessible to all;
WHEREAS, the Commission on Higher Education is empowered to promulgate such
rules and regulations and exercise such other powers and functions as may be necessary
to effectively implement the aforementioned State policy;
WHEREAS, the Constitution provides that the President shall have control of all the
Executive Departments, Bureaus, and Offices, and shall ensure that the laws be faithfully
executed;
NOW, THEREFORE, , GLORA MACAPAGAL-ARROYO, President of the Philippines,
by the powers vested in me by law, do hereby order:
SECTION 1. The Commission on Higher Education shall instruct all state universities
and colleges (SUCs) to devise a flexible, socially-sensitive tuition fee payment plan and
reform the no-payment, no periodic examination policy that is currently being applied;
SECTION 2. The administrators of the Students Assistance Fund for Education
shall expand the coverage of the program. On top of tuition, beneficiaries of the program
should receive the following additional benefits:
1. Monthly stipend to subsidize the students transport fares, and
2. Laboratory, research and book allowance.
SECTION 3. This Order shall take effect immediately.
By the President:
Executive Secretary
--o0o--
Clarifying the Function of the Presidential Adviser on Revenue
Enhancement to Investigate Cases in the Large Taxpayers
Units of The Bureau of Internal Revenue
WHEREAS, by Administrative Order, the Presidential Adviser on Revenue
Enhancement is authorized to investigate cases in the Large Taxpayers Unit of the Bureau
of nternal Revenue;
WHEREAS, Article V, Section 17 of the Constitution provides that the President
shall have control and supervision of all executive departments, bureaus and offices, and
shall ensure that laws are faithfully executed;
WHEREAS, the Administrative Code of 1987 provides that the President has the
continuing authority to reorganize the Office of the President;
NOW THEREFORE , GLORA M. ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Duties and Responsibilities. As part of the authority of the Presidential
Adviser on Revenue Enhancement to investigate cases in the Large Taxpayers Units of the
Bureau of nternal Revenue, with the concurrence of the Secretary of Finance, he may
initiate the filing of appropriate action, if warranted, against persons liable for the violation
of pertinent laws, rules and regulations in relation to the said Large Taxpayers Units.
SECTION 2. Funding. The Office of the PARE shall be provided with an allocation of
Ten Million Pesos (P10,000,000.00) from the Office of the President to enable him to
exercise said function.
SECTION 3. Repealing Clause - All other orders, issuances, rules and regulations or
parts thereof which are inconsistent with this Administrative Order are hereby repealed or
(SGD.) GLORA M. ARROYO
By the President:
892
Executive Secretary
--o0o--
Providing Free Legal Aid for the Poor
WHEREAS, the Public Attorneys Office (PAO) is the principal law office of the
government that provides free legal aid to the poor;
WHEREAS, the Presidential Commission on the Urban Poor (PCUP) is mandated
to coordinate the speedy implementation of government policies and programs for the
urban poor;
WHEREAS, most of the urban poor in the country is concentrated in Metro Manila;
NOW THEREFORE, , GLORA MACAPAGAL-ARROYO, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. The PAO and the PCUP shall work together on programs of providing
free legal aid to Metro Manila urban poor.
SECTION 2. All Administrative Orders, rules, and regulations and other issuances
or parts thereof, which are inconsistent with this Administrative Order, are hereby revoked,
amended, or modified accordingly.
By the President:
Executive Secretary
--o0o--
Modifying the Nomenclature and Rates of Import Duty on Various
Products Under Section 104 of the Tariff and Customs Code of 1978
(Presidential Decree No. 1464), As Amended
WHEREAS, the modification in the rates of import duty will provide affordable raw
material inputs and consumer products which are not locally available;
WHEREAS, modification of nomenclature will provide transparency in the trade of
biofuels and biofuel blends;
WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree
No. 1464), as amended, empowers the President of the Republic of the Philippines to
increase, reduce, or remove existing rates of import duty, as well as to modify the form of
duty and the tariff nomenclature, under Section 104 of the Code;
NOW, THEREFORE, , GLORA MACAPAGAL-ARROYO, President of the Republic
SECTION 1. The articles specifically listed in the Annex* hereof (composed of 3
pages), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended,
shall be subject to the Most-Favoured Nation (MFN) rate of import duty in accordance with
the schedule indicated opposite each article.
SECTION 2. The nomenclature and the rates of import duty on tariff headings not
enumerated and those listed but represented by the symbol x x x shall remain in force
and in effect.
SECTION 3. Upon the effectivity of this Executive Order, all articles listed in the
Annex which are entered into and withdrawn from warehouse in the Philippines for
consumption shall be levied the MFN rate of duty as indicated in column 4.
SECTION 4. All Presidential issuance, administrative rules and regulations, or parts
thereof, which are contrary to or inconsistent with this Executive Order are hereby revoked
SECTION 5. This Executive Order shall take effect thirty (30) days following its
complete publication in the Official Gazette or in a newspaper of general circulation in the
Philippines.
By the President:
Executive Secretary
--o0o--
894
Making Go Negosyo, Sagot sa Kahirapan and Entrepreneurship
As Banner Programs of the Administration and Expanding the
Composition of the Small and Medium Enterprise Development Council
into the Micro, Small and Medium Enterprise Development Council
WHEREAS, Republic Act No. (RA) 9501, An Act to Promote Entrepreneurship by
Strengthening Development Assistance Programs to Micro, Small and Medium Scale
Enterprises, Amending for the Purpose RA 6977, as Amended, Otherwise Known as the
Magna Carta for Small Enterprises and for Other Purposes, approved on 23 May 2008,
transformed the Small and Medium Enterprise Development Council into the Micro, Small
and Medium Enterprise Development Council (MSMED);
WHEREAS, under RA 9501, the Council shall be headed by the Secretary of Trade
and ndustry as Chairman, and may elect from among themselves a Vice-Chairman to
preside over the Council meetings in the absence of the Chairman. The members shall be
the following:
a) Secretary of Agriculture;
b) Secretary of the nterior and Local Government;
c) Secretary of Science and Technology;
d) Secretary of Tourism;
e) Chairman of Small Business Corporation;
f) Three (3) representatives from the Micro, Small and Medium Enterprise (MSME)
sector to represent Luzon, Visayas and Mindanao;
g) One representative from the Labor sector, to be nominated by accredited labor
groups;
h) A representative from the private banking sector: to serve alternately among the
Chamber of Thrift Banks, the Rural Bankers Association of the Philippines; and the
Bankers Association of the Philippines.
WHEREAS, Section 31, Chapter 10, Title , Book of Executive Order 292, otherwise
known as the Administrative Code of 1987, provides continuing authority to the President
to reorganize the administrative structure of the Office of the President;
WHEREAS, the National Anti-Poverty Act provided for a Peoples Credit and Finance
Corporation (PCFC) to serve micro enterprises under the oversight of the National Anti-
Poverty Commission;
WHEREAS, part of the 10-point program of the Administration is to create 6-10
million jobs and support 3 million entrepreneurs;
WHEREAS, there is a need to integrate government-private sector efforts in developing
MSMEs;
NOW, THEREFORE, , GLORA M. ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Go Negosyo, Sagot sa Kahirapan and Entrepreneurship shall be
made banner programs of the Administration.
SECTION 2. Expansion of Micro, Small and Medium Enterprise Development
(MSMED) Council - The membership of the MSMED shall be expanded to include the
heads of primary agencies involved in micro, small and medium finance activities of the
national government, such as but not limited to the following:
1) Cooperative Development Authority
2) National Livelihood and Development Corporation
3) Peoples Credit and Finance Corporation
4) University of the Philippines nstitute for Small Scale ndustries
SECTION 3. All training and capacity-building programs shall be unified into one
Entrepreneurship Development Framework (EDF). An Entrepreneurship Summit shall be
mounted to present such EDF, with specific roles from government agencies and private
sector groups as identified by the MSMED Council. The EDF shall be cascaded to all local
government units.
SECTION 4. The local officials, i.e. Governors and Mayors, shall be encouraged to
become Negosyo Champions.
SECTION 5. For better communication campaign, the above shall be put under one
banner called Negosyo.
SECTION 6. A holistic approach shall be developed from Entrepreneur Mindset (Go
Negosyo), Market-Orientation and Access, Product nnovations/Technology and Design,
Financing Support, to Fora for Networking and Mentoring (Go Negosyo) that shall be made
available to MSMEs.
SECTION 7. The corresponding executive budget for the above program shall be
consolidated.
SECTION 8. The Press Secretary shall conduct an advocacy and awareness
campaign on the above.
SECTION 9. All executive issuances, rules, regulations or parts thereof which are
inconsistent with any of the provisions hereof are hereby repealed, amended or modified
accordingly.
SECTION 10. This Executive Order shall take effect immediately.
By the President:
Executive Secretary
--o0o--
896
An Order Attaching the National Youth Commission from the Office of the
President to the Department of Social Welfare and Development
WHEREAS, RA 8044 attached the National Youth Commission to the Office of the
President;
WHEREAS, the Department of Social Welfare and Development is the primary
government agency involved in promoting the rights and welfare of individuals, especially
the youth;
WHEREAS, paragraph 2, Section 31, Chapter 10, Title , Book of the Administrative
Code of 1987 grants the President continuing authority to reorganize the administrative
structure of the Office of the President.
SECTION 1. The National Youth Commission is hereby attached to the Department
of Social Welfare and Development.
By the President:
Executive Secretary
--o0o--
Adopting the Coral Triangle Initiative (CTI) National Plan of Action
WHEREAS, Article , Section 16 of the Philippine Constitution mandates the State
to protect and advance the right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature;
WHEREAS, Article X, Section 2 of the Philippine Constitution also provides that the
State shall protect the nations marine wealth in its archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens;
WHEREAS, the Philippine Government is pursuing the Coral Triangle nitiative on
Coral Reefs, Fisheries and Food Security (CT-CFF) along with the Governments of
ndonesia, Malaysia, Papua New Guinea, Solomon slands and Timor Leste;
WHEREAS, among the agreement during the 2nd Senior Officials Meeting (SOM2)
which was held in Manila, Philippines on 23 October 2007 is the adoption of the Manila
Draft of the CT Regional Plan of Action as a framework for the specific actions needed to
conserve and sustainably manage the coastal and marine resources in the Coral Triangle;
WHEREAS, the CT National Plan of Action is complementary to the Philippines
commitments to international conventions such as the Convention of Biological Diversity,
Ramsar Convention on Wetlands, United Nations Convention on the Law of the Sea,
Convention on nternational Trade in Endangered Species of Wild Fauna and Flora; Convention
on the Conservation of Migratory Species of Wildlife Animals, United Nations Framework
Convention on Climate Change, as well as the Millennium Development Goals, among
others;
WHEREAS, national policies and laws support the achievement of the CT goals, as
outlined in the Regional Plan of Action and the National Plan of Action. These national
policies include Republic Act 7586 or the National ntegrated Protected Areas System
(NPAS) Act, Republic Act 8550 or the Fisheries Code of the Philippines, Executive Order
No. 533 adopting the ntegrated Coastal Management (CM) as the National Management
Policy Framework to Promote the Sustainable Development of the Countrys Coastal and
Marine Environments and Resources; Presidential Proclamation No. 1028 Declaring the
Entire Sulu and Celebes Seas as an ntegrated Conservation and Development Zone;
Executive Order No. 578 or the National Policy on Biological Diversity, and Prescribed its
mplementation particularly in the Verde sland Passage Marine Corridor, and in all Philippine
territory within the Sulu Sulawesi Marine Eco-region (SSME), among others;
WHEREAS, the Philippines builds on-going and planned national projects and regional
cooperative programs such as the Memorandum of Understanding Adopting the Sulu
Sulawesi Marine Eco-region Conservation Plan in working towards supporting achievement
of goals and targets laid out in the CT Regional Plan of Action;
WHEREAS, Executive Order No. 192, as amended, mandates the Department of
Environment and Natural Resources (DENR) as the primary government agency responsible
for the sustainable development of the countrys environment and natural resources;
WHEREAS, the Department of Agriculture (DA), by virtue of Republic Act 8550 or the
Philippine Fisheries Code of 1998 is the agency mandated to manage, develop, protect
and conserve the countrys aquatic resources;
WHEREAS, there is a need to rationalize the institutional arrangements, plans and
programs to ensure well-coordinated, consistent decisions and actions concerning the
management of the countrys coastal and marine resources;
of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby
mandate the following:
898
SECTION 1. Adoption of the CTI National Plan of Action (NPOA). The NPOA is
hereby adopted as attached to this Order. The NPOA shall serve as the primary framework
for the development and implementation of all related plans and programs on marine and
coastal resources management in the country.
SECTION 2. Integration of the NPOA Priority Actions in the National Plans and
Programs. All agencies with coastal and marine concerns are hereby instructed to integrate
the NPOA priority actions into their corresponding national plans and budgets and contribute
to the effective implementation of the NPOA.
SECTION 3. Integration of the NPOA Priority Actions into the Local Plans and
Programs. All local government units, especially those within coastal areas, shall take
into consideration the NPOA Priority Actions in the preparation and implementation of
local development plans and budgets and contribute to the effective implementation of the
NPOA.
SECTION 4. Coordination Between the Department of Environment and Natural
Resources and the Department of Agriculture. The Secretary of Environment and Natural
Resources and the Secretary of Agriculture shall coordinate the implementation of the
NPOA. They shall jointly act as the national coordinating body for the NPOA implementation
and focal point of contact for the regional CT processes. They may call upon on other
agencies/organizations/institutions for advice and assistance, as needed.
SECTION 5. Joint Secretariat. The DENR-Protected Areas and Wildlife Bureau and
DA-Bureau of Fisheries and Aquatic Resources shall establish a Joint NCCC Secretariat
with full-time representatives from the Department of Foreign Affairs, Department of Finance,
National Economic and Development Authority, the non-governmental organizations, the
academic institutions and the business sector.
SECTION 6. Financial Appropriation. An initial allocation of FVE MLLON PESOS
(Php 5 MLLON) to support the core operations of the Secretariat to leverage external
funds for the NPOA implementation shall be released by the Secretary of Budget and
Management from the budgets of the DENR and DA. The disbursement of and allocation of
additional funds shall be subject to the submission and approval of the joint annual work
and financial plans of the Secretaries of DENR and DA.
SECTION 7. Repealing Clause. All proclamations or executive orders, rules and
regulations and other issuances or parts thereof, which are inconsistent with this Executive
Order are hereby revoked, amended, or modified accordingly.
SECTION 8. Separability. Any portion or provision of this Executive Order that maybe
declared unconstitutional shall not have the effect of nullifying its other portions or provisions,
as long as such remaining portions call still be given effect.
SECTION 9. Effectivity. This Executive Order shall take effect upon signing hereof.
By the President:
Executive Secretary
--o0o--
Transferring the Philippine Reclamation Authority from the
Department of Public Works and Highways to the
Department of Environment and Natural Resources
WHEREAS, Executive Order No. 380 (s. 2004) mandates the Philippine Reclamation
Authority (PRA) to develop, improve, administer, deal in, subdivide, dispose, lease, and
sell all kinds of lands, buildings, estates and other forms of real property owned, managed,
controlled and/or operated by the government, and thus, hold assets in behalf of the National
Government;
WHEREAS, Executive Order No. 586 (s. 2006) transferred the PRA from the
Department of Finance to the Department of Public Works and Highways;
WHEREAS, under Section 4, Chapter , Title XV of the Revised Administrative Code
of 1987, the Department of Environment and Natural Resources exercises exclusive
jurisdiction on the management and disposition of all lands of the public domain and serve
as the sole agency responsible for classification, sub-classification, surveying and titling
of lands in consultation with appropriate agencies;
WHEREAS, the Revised Administrative Code of 1987 grants the President continuing
authority to reorganize the National Government.
SECTION 1. The Philippine Reclamation Authority is hereby transferred to the
Department of Environment and Natural Resources.
By the President:
Executive Secretary
--o0o--
900
An Order Transferring the Administrative Supervision of the
Securities and Exchange Commission from the Department of
Finance to the Department of Trade and Industry
WHEREAS, Executive Order No. 192, dated 07 January 2000, transferred the
Securities and Exchange Commission (SEC) under the administrative supervision of the
Department of Finance;
WHEREAS, the Department of Trade and ndustry is the primary coordinative,
promotive, facilitative, and regulatory arm of the Executive Branch of government in the
area of trade, industry and investment;
WHEREAS, in order to facilitate coordination of policies and programs in the field of
trade, industry and investment, it is necessary and practical to transfer the administrative
supervision over the Securities and Exchange Commission from the Department of Finance
to the Department of Trade and ndustry;
WHEREAS, the President of the Philippines has the continuing power to reorganize
the National Government as provided by EO No. 292, otherwise known as the Administrative
Code of 1987;
SECTION 1. The Securities and Exchange Commission is hereby placed under the
administrative supervision of the Department of Trade and ndustry.
By the President:
Executive Secretary
--o0o--
Encouraging Local Government Units (LGUs) to Adopt the
Techno Gabay in Their Agricultural Extension Programs
and the Concerned Government Agencies to Provide the Required
Assistance for the Purpose
WHEREAS, the Constitution mandates the State to encourage the widest participation
of local government units, private groups and community-based organizations in the
generation and utilization of science and technology, as well as regulate the transfer and
promote the adaptation of technology from all sources for the national benefit;
WHEREAS, in consonance with the above constitutional mandate, and in adherence
to the Local Government Code of 1991, Local Government Units (LGUs) are now tasked to
provide extension delivery services, particularly in terms of food production extension plans
and budgets;
WHEREAS, the Medium Term Philippine Development Plan (MTPDP) of 2004-2010,
likewise specifically provides that Local Government Units shall exert efforts to strengthen
and maximize the technology extension delivery modalities of the Philippine Council for
Agriculture, Forestry and Natural Resources Research and Development of the Department
of Science and Technology (PCARRD-DOST), with emphasis on the Techno Gabay Program,
and shall consolidate the said program with similar extension models of other agencies
and bureaus;
WHEREAS, the DOST and the Commission on Higher Education (CHED), have
concertedly resolved that the State Universities and Colleges (SUCs) shall further support
the LGUs agricultural development programs anchored on the Techno Gabay Program
modalities;
WHEREAS, the Department of Agriculture (DA), in Department Order No. 03, series
of 2007, designated the Agricultural Training nstitute (DA-AT) as lead agency for e-Extension
services in agriculture, fisheries and natural resources, in collaboration with other government
agencies, SUCs and concerned stakeholders;
WHEREAS, the Techno Gabay Program, now on its tenth year, has established
Farmers nformation Technology Services (FTS) centers nationwide, majority of which are
LGU-based, attesting to the programs growing grassroots presence and undisputedly
seen as an important enhancement of LGUs existing extension delivery services;
WHEREAS, TGPs Performance and mpact Assessment Studies attested to the
outstanding viability of TGP modalities to lead to higher technical efficiency and farm
productivity and profitability;
WHEREAS, TGPs stakeholders have expressed a continuing interest to sustain
TGP operations in the countryside and there is likewise a growing interest among LGUs to
adopt the said program;
of the Philippines, by virtue of the powers vested in me by Law and the Constitution, do
hereby encourage all Local Government Units in the municipal and provincial levels to
adopt the Techno Gabay Program as an extension delivery services modality, and ordering
the Department of nterior and Local Government (DLG), Department of Agriculture (DA),
Department of Science and Technology (DOST), Commission on Higher Education - State
Universities and Colleges (CHED-SUCs) and other concerned agencies, as may be
determined by the Steering Committee and Technical Working Group to be created pursuant
to Section 5 hereof, to provide the required assistance for the purpose.
902
SECTION 1. Scope and Coverage - The Executive Order shall cover all local
government units where there are dominant agricultural areas, inclusive of fishery and
forestry and/or whose constituents derive livelihood from farming activities such as urban
agriculture and agriculture-based pro-poor nutrition/livelihood programs. The Technical
Working Group, created under Section 5, hereof shall provide the criteria for determining
the towns and provinces, which shall be covered by this Executive Order.
SECTION 2. Definition of Terms - For purposes of this Executive Order, the following
terms or words and phrases shall mean or be understood as follows:
a. Techno Gabay Program - a PCARRD-DOST initiative which serves as a platform
for developing, testing, and promoting technology transfer and dissemination modalities
through the networking of R& D institutions in the agriculture, forestry, and natural resources
(AFNR) sectors, namely the Regional R&D consortia and other members of the National
Agriculture and Resources Research and Development Network (NARRDN); LGUs, non-
government organizations, core of Farmer Scientists or Magsasaka Siyentista, and other
extension service providers, thereby enhancing technology utilization, adoption, and
commercialization.
b. Farmers Information and Technology Services (FITS) or Techno Pinoy Center
-Serves as a one-stop service facility nearest to the majority of farmers, entrepreneurs and
other clients in a given area. t provides fast access to information and technologies in
forms appropriate to the clients needs.
c. Magsasaka Siyentista - is an outstanding farmer who is successful in his/her use
of S&T-based and indigenous technologies. The MS is a vital link in technologies developed
in the laboratories and ultimate adoption in farmers fields.
d. National Agriculture and Resources Research and Development Network
(NARRDN) - an aggrupation of government and non-government institutions working on
agriculture and natural resources research and development (R&D).
e. Regional Research and Development Consortia - refers to the PCARRDs
regional consortia for R&D tasked to facilitate coordination, planning, monitoring and
evaluation of R&D activities and technology promotion and dissemination at the regional
level. Each regional consortium has member agencies, composed of state colleges and
universities, government agencies, local government units and non-government institutions
among others.
f. Information Education Communication (IEC) Strategies - nvolves research
and need-based communication process aimed to hasten adoption of technologies by
FTS and MS clients.
g. Information and Communications Technology (ICT) - a diverse set of
technological tools and resources used to create, store, communicate, disseminate and
manage information.
h. e-Extension service - the electronic delivery of extension service thru a network
of institutions that provide a more efficient alternative to a traditional extension system for
agriculture fisheries and natural resources sectors.
i. e-Learning courses - interactive electronic learning modules especially designed
for agricultural extension workers, enterprising farmers and fisherfolks and other
stakeholders.
SECTION 3. Institutional Arrangements - This Executive Order shall be implemented
observing the following operational scheme between and among the concerned agencies:
PCARRD-DOST shall:
1. Provide the overall direction within the framework of the existing Techno Gabay Program,
in coordination with its regional consortia partner member agencies and the DA-AT;
2. Conduct necessary pre-project consultations and planning activities;
3. Provide or facilitate the conduct of training programs for the efficient and effective operation
of the Techno Pinoy centers;
4. Provide technology/information through nformation Education and Communication (EC)
materials for the Techno Pinoy;
5. Link scientific community, the researchers and the agricultural experts from the National
Agriculture and Resources Research and Development Network (NARRDN); and
6. Monitor and evaluate the implementation of the program at the national level.
DA-Agricultural Training Institute (ATI) shall:
1. Link DAs Extension Program to the extension delivery modalities under the Techno
Gabay Program, extension program of SUCs, LGUs and other agencies;
2. Provide access to online data-bases of DA on e-Learning courses and other agricultural
information; and
3. Complement manpower and logistic support in the conduct of trainings and education of
LGU personnel that will be involved in this joint undertaking.
Regional Research and Development Consortia shall:
1. Coordinate with LGUs regarding the implementation of the Techno Gabay Program in
the municipality;
2. Conduct/facilitate trainings in various areas like CT, EC development, skills training
and other related training for the efficient and effective operation of the center;
3. Provide guidance in the implementation of the FTS; and
4. Monitor the implementation of Techno Gabay Program at the regional level.
LGUs are encouraged to:
904
1. Appoint/designate the manpower need by the center;
2. Collaborate with the DA and other concerned agencies in planning technology delivery
activities in line with the agriculture development program of the municipality.
3. Provide seed money for the establishment and maintenance of the FTS center;
4. Provide the site/office for FTS establishment in the area and purchase equipment and
fixtures, supplies necessary to operate the center; and
5. Make available its staff to manage the project.
SECTION 4. Funding - All local government units covered by this Executive Order
are encouraged to allocate funds from their respective budgets to cover the programs
physical, human, and financial requirements.
Supplemental budgets may also be sourced by the concerned LGU from contributions
of public and private institutions involved in the program.
Fund utilization and disbursement shall be subject to the usual government accounting
and auditing rules and regulations.
SECTION 5. Implementing Rules and Regulations - The PCARRD-DOST, with the
active participation of selected CHED-SUCs, DA, DA-AT and LGUs, shall call for the
creation of a Steering Committee and a Technical Working Committee that shall formulate
the mplementing Rules and Regulations (RR) for the effective implementation of this
Executive Order.
SECTION 6. Separability Clause - f any section or provision of this Executive Order
shall be declared unconstitutional or invalid, the other sections or provision not affected
thereby shall remain in full force and effect.
SECTION 7. Repealing Clause - All Executive Orders, Rules and Regulations or
parts thereof contrary to or inconsistent with this Executive Order are hereby repealed or
SECTION 8. Effectivity Clause - The EO shall take effect immediately.
By the President:
Executive Secretary
--o0o--
Strengthening and Recognizing the Philippine Accreditation
Office Attached to the Department of Trade and Industry as the
National Accreditation Body
WHEREAS, Sec. 13 of RA 9236, or The National Metrology Act of 2003, strengthens
and recognizes the laboratory accrediting body attached to the Department of Trade and
ndustry (DT) as the national accrediting body;
WHEREAS, the Bureau of Product Standards of the DT assumed the laboratory
accrediting function, in addition to its standards development and certification functions.
WHEREAS, pursuant to SO/EC 17011:2004 which became effective on 01 January
2006, a centralized accrediting office independent from BPS needs to be created;
WHEREAS, Section 31, Chapter 10, Book of the Administrative Code of 1987
grants the President the continuing power to reorganize the Executive Branch of government;
of the Philippines, by virtue of the powers vested in me, do hereby order:
SECTION 1. Pursuant to Section 13 of RA 9236, the Philippine Accreditation Office
(PAO), which shall be attached to the DT, is hereby strengthened and recognized as the
national accreditation body. t shall be the central body to accredit inspection, testing and
certifying bodies, and other bodies offering conformity assessment services needed by the
country.
SECTION 2. The PAO Council, to be chaired by the Secretary of the Department of
Trade and ndustry, is hereby created to give policy advice and provide guidance to PAO.
The Council shall have ten (10) members, seven (7) from the government sector and three
(3) from the private sector.
The government sector shall be represented by the heads of the following departments
or agencies or their authorized representatives, who must be at least an Undersecretary:
1. Department of Science and Technology
2. Department of Health
3. Department of Agriculture
4. Department of Environment and Natural Resources
5. Department of Public Works and Highways
6. Department of Energy
7. Department of National Defense
The members from the private sector shall be appointed by the President from any of
following: Trade or ndustry Association, Quality and Safety Foundation, Philippine Exporters
Confederation, Professional Association, or the Academe.
906
The Council is authorized to create the necessary Advisory Committees where other
stakeholders are given opportunity to provide inputs in the formulation of accreditation
policies.
SECTION 3. The DT shall act as the PAO Council Secretariat. t shall ensure the
immediate coordination among members of the Council and the implementation of a
centralized facilitation, processing and release of accreditations.
SECTION 4. Funding requirement that will enable PAO to pursue and implement its
mandate shall be included in the annual appropriations of the Department of Trade and
ndustry. Government entities that seek accreditation from PAO for purposes of international
recognition shall provide funds for said purpose.
SECTION 5. Laboratories that have already been accredited by other government
agencies shall be given one year from effective date of this Order within which to seek
accreditation against applicable international standards from PAO.
SECTION 6. All executive orders, rules and regulations and other issuances or parts
thereof which are inconsistent with this Order are hereby revoked, amended, or modified
accordingly.
SECTION 7. This Order shall take effect fifteen (15) days after its publication in a
national newspaper of general circulation.
By the President:
Executive Secretary
--o0o--
Memorandum Circular No. 174
Enjoining All Government Agencies, Including Government Owned and
Controlled Corporations, State Universities and Colleges to Support the
Philippine Government Employees Associations Public Sector Agenda
WHEREAS, the Government recognizes the important role of government employees
in nation building.
WHEREAS, it is necessary that the needs of government employees, especially in
the face of the present global economic crisis, be addressed in a manner that will improve
and promote their social and economic welfare.
n view thereof, all government agencies, including Government Owned and Controlled
Corporations, State Universities and Colleges are hereby enjoined to provide the following
to their employees:
z shuttle service
z financial subsidy and other needed support to make the Botika ng Bayan more
accessible to them
z scholarships programs for their children with siblings
z PX mart that sell affordable commodities and the provision of its seed fund
The DOLE is hereby directed to monitor and to ensure the implementation of this
Circular.
N WTNESS WHEREOF, have hereunto set my hand and caused the seal of the
Republic of the Philippines to be affixed thereto.
By the President:
Executive Secretary
--o0o--
Approving the 2009 Investment Priorities Plan
Pursuant to Article 29 of the Omnibus nvestments Code of 1987, the attached 2009
nvestment Priorities Plan (PP) is hereby APPROVED. Further to the provision of said
Article, upon the effectivity of the PP, all government agencies and entities are enjoined
not to adopt any policy or take any course of action contrary to or inconsistent with the
PP.
This Memorandum Order shall take effect fifteen (15) days after its publication in a
national newspaper of general circulation as required under Article 31 of the Omnibus
nvestments Code of 1987.
By the President:
908
Executive Secretary
--o0o--
Taking Action on Cellular Phone Complaints
WHEREAS, the National Telecommunications Commission (NTC) is the sole body
that exercises jurisdiction over the supervision, adjudication and control over all
telecommunications services throughout the country;
WHEREAS, the Commission on nformation and Communications Technology (CCT)
is the primary policy, planning, coordinating, implementing, regulating and administrative
entity of the Government for the promotion, development and regulation of cost-efficient
communication facilities and services;
SECTION 1. The NTC and CCT are hereby instructed to act on cellular phone
complaints from dropped calls to disappearing loads.
BY THE PRESDENT:
Executive Secretary
Executive Order No. 607-A
Amending Executive Order No. 607 by Transferring Attachment
of the Inter-Agency Task Force for Millennium Challenge Account
from the Department of Finance to the Office of the President
WHEREAS, Executive Order No. 607 (series of 2007) created the inter-agency Task
Force Millennium Challenge Account (MCA) attached to the Department of Finance.
WHEREAS, now more than ever, there is an urgency to demonstrate our countrys
commitment to meeting the MCA eligibility requirements;
WHEREAS, the President has the continuing authority to reorganize the administrative
structure of the Office of the President.
by virtue of the powers vested in me by law, do hereby amend Executive Order No. 607 as
follows:
SECTION 1. Transfer of Task Force MCA to OP - The attachment of Task Force
MCA is hereby transferred from the Department of Finance to the Office of the President.
SECTION 2. Composition - The Task Force MCA shall be composed of the Executive
Secretary as Chairman and the following as Members:
- The Secretary of Finance
- The Secretary of Foreign Affairs
- The Director General, National Economic and Development Authority
SECTION 3. Funding - Funding for the task force may be sourced from available
funds of the Office of the President, subject to existing accounting and auditing laws and
procedures.
SECTION 4. Repealing Clause - All executive issuances or parts thereof inconsistent
herewith are deemed repealed or modified accordingly.
SECTION 5. Effectivity - This Executive Order shall take effect immediately.
BY THE PRESDENT:
Executive Secretary
--o0o--
Establishing the Industry Competitiveness Fund (ICF) to
Support Power-Intensive Industries
WHEREAS, it is a declared national policy to attract foreign investment in the country
to promote economic growth, generate employment, upgrade technology and accelerate
national development;
WHEREAS, the uncertainties in the global economic situation and the volatility in
the prices of electricity brought about by confluence of factors have affected the operation
910
of large industries particularly those who generate substantial foreign exchange earnings,
tax earnings and employment for the country;
WHEREAS, the government recognizes the necessity to intervene in order to maintain
and encourage existing and potential investors with substantial investment, income and
employment provided by these large industries, in a manner that will be beneficial to both
the government and investors;
WHEREAS, the establishment of an ndustry Competitiveness Fund (CF) may not
only keep existing investments but shall make the country more attractive to foreign direct
investments, thereby generating further employment to boost exports, thereby enhancing
the countrys economic growth;
SECTION 1. Establishment of the Industry Competitiveness Fund - An ndustry
Competitiveness Fund (CF) is hereby established to support and incentivize qualified
power-intensive industries which contribute significantly to the economy by granting special
power rates based on the criteria and guidelines that will be developed for this purpose.
The CF will be utilized to recover any financial impact that PSALM/NPC, TRANSCO and
PEZA have incurred in the grant of special power rate through a reimbursement mechanism
that will be developed by an inter-agency committee created herein.
SECTION 2. Coverage of the Industry Competitiveness Fund (ICF) - The CF shall
cover existing and future eligible preferred combined generation, transmission and distribution
rates granted by PSALM/NPC, TRANSCO and PEZA in accordance with their respective
policies, rules and regulations, subject to the CF criteria and guidelines developed for this
purpose.
SECTION 3. Creation of the Inter-Agency Committee on ICF - An nter-Agency
Committee on CF to be chaired by the Department of Finance (DOF) and co-chaired by
the Department of Energy (DOE) is hereby created with the Department of Trade and
ndustry (DT), Department of Budget and Management (DBM), Philippine Economic Zone
Authority (PEZA), Power Sector Assets and Liabilities Management Corporation (PSALM),
National Power Corporation (NPC) and National Transmission Corporation-Government
(TRANSCO) as members.
SECTION 4. Responsibilities of the ICF Inter-Agency Committee - The nter-Agency
Committee shall have the following mandate:
1. Establish the criteria and guidelines for eligibility to the CF including determination of
the CF entitlement
2. dentify responsibilities of each member agencies in the implementation of the CF.
3. Create a Technical Working Group which will evaluate and recommend applications for
CF entitlement for approval of the CF nter-Agency Committee.
4. Develop the approval process for CF applicants and/or potential beneficiaries of the CF
which will be the basis of the TWG for evaluation and recommendation.
SECTION 5. Source of Funds - An initial amount of One Billion Six Hundred Million
Pesos (Php 1,600,000,000.00) from the governments collections of the Value Added Tax
is hereby allocated for the initial beneficiaries of the CF. The nter-Agency Committee
shall identify fund sources to sustain the CF Program.
SECTION 6. Role of the Departments, Bureaus, Offices, Agencies, Instrumentalities
of the Government - All heads of departments, bureaus, offices, agencies and
instrumentalities of the government are hereby directed to give full support and assistance
to PEZA, NPC, and TRANSCO in the implementation of this Executive Order.
SECTION 7. Implementing Guidelines - the nter-Agency Committee on CF shall
promulgate the rules and regulations as may be necessary to ensure the implementation
of this Executive Order.
SECTION 8. Repealing Clause - All issuances, rules and regulations inconsistent
herewith are deemed modified or repealed accordingly.
SECTION 9. Separability Clause - f for any reason, any part or provision of this
Order shall be held unconstitutional or declared contrary to law, other parts or provisions
hereof which are not affected shall continue to be in full force and effect.
SECTION 10. Effectivity - This Executive Order shall take effect fifteen (15) days
after its publication in a national newspaper of general circulation.
BY THE PRESDENT:
Executive Secretary
--o0o--
Creating and Directing the Metro Manila Inter-Agency Committee on
Informal Settlers to Plan, Coordinate and Implement, in Coordination
with Concerned Government Agencies, A Comprehensive Shelter
Program for Informal Settlers Affected by Government Priority
Infrastructure Projects and those Living in Danger Areas
Within Metro Manila
WHEREAS, the State is mandated by the 1987 Constitution in Article X, Section 9,
to undertake, in cooperation with the private sector, a continuing program of urban land
reform and housing which shall make at affordable cost, decent housing and basic services
to underprivileged and homeless citizens in urban and resettlement areas;
912
WHEREAS, Republic Act (RA) No. 7279, otherwise known as the Urban Development
and Housing Act of 1992, declares that the State shall undertake, in cooperation with the
private sector, a comprehensive and continuing Urban Development and Housing Program
and that local government units shall be charged with the implementation of said program
by providing relocation and resettlement sites, among others;
WHEREAS, the Medium-Term Development Plan includes, as a priority development
program, the decongestion of Metro Manila by forming new cores of government and housing
centers in Luzon, Visayas and Mindanao;
WHEREAS, the magnitude of the problem and the governments limited resources
dictate that priority should be given to the great number of informal settlers affected by
government priority infrastructure projects and those living in, near or along danger areas
such as riverbanks, esteros, roadways, sidewalks, aqueducts, bridges, garbage dumps,
shorelines and waterways;
WHEREAS, it is imperative that the nefarious and illegal activities of professional
squatters and squatting syndicates are effectively curtailed to ensure that only qualified
and deserving informal settlers are benefitted by the governments housing programs;
WHEREAS, there is a need to adopt an effective identification and registration process
in determining the rightful and qualified beneficiaries of the governments housing programs
as against professional squatters and squatting syndicates;
WHEREAS, the 1987 Constitution and the Administrative Code of 1987 provide that
the President shall have control over all government departments, bureaus and offices,
and shall ensure that all the laws are faithfully executed.
SECTION 1. The Metro Manila Inter-Agency on Informal Settlers - The Metro Manila
nter-Agency Committee (MMAC) on nformal Settlers is hereby created, composed of the
Metropolitan Manila Development Authority (MMDA) as chair, and the National Housing
Authority (NHA) as vice-chair, with the following members: the Housing and Urban
Development Coordinating Council (HUDCC); the Presidential Commission for the Urban
Poor (PCUP); the National Anti-Poverty Commission (NAPC); the Department of Public
Works and Highways (DPWH); the Department of the nterior and Local Government (DLG);
the Office of the President - External Affairs (OPEA); the Department of Budget and
Management (DBM); and a representative from the urban poor as identified by the MMAC.
The MMAC shall invite the Commission on Human Rights (CHR) and other socio-
civic organizations and associations to become members of the Committee.
The concerned local government unit (LGU) shall be invited and entitled to a vote
whenever the matter is within its jurisdiction.
SECTION 2. Assistance from Government Agencies. All government agencies are
directed to actively cooperate and support the MMAC. n this regard, MMAC may call
upon any agency of the government for assistance and cooperation, including, but not
limited to, seeking the necessary technical services and support to the implementation of
a Comprehensive Shelter Program (CSP), such as the provision of basic community facilities,
including logistics and the conduct of continuing training and development with emphasis
on livelihood and educational programs in collaboration with the private sector, religious
organizations and participating NGOs.
SECTION 3. Lead Agencies. The MMDA and the NHA are the lead agencies in the
implementation of a CSP for informal settlers within Metro Manila, such as those affected
by government infrastructure projects, and those living in,near or along danger areas such
as rivebanks, esteros, roadways, sidewalks, aqueducts, bridges, railroad tracks, garbage
dumps, shoreline and waterways.
SECTION 4. Functions of the MMIAC. The MMAC shall have the following major
functions:
a. Develop a CSP for qualified informal settlers affected by government priority
infrastructure projects and those living in danger areas.
b. Provide policy directions and guidelines for the smooth and effective implementation of
the CSP.
c. Seek funds and logistical support and resources from participating agencies and other
concerned entities and the private sector for the effective and efficient implementation
of the CSP.
d. Enter into a memorandum of agreement or other local institutional arrangement with
and among concerned national and local government agencies, non-government
organizations and private entities for the speedy implementation of the CSP.
e. Exercise oversight functions on the implementation of the specific components of the
CSP.
f. Perform such other functions as may be assigned by the President.
SECTION 5. Implementing Rules and Regulations. The MMAC shall promulgate its
mplementing Rules and Regulations to implement the CSP as well as provisions of this
Executive Order.
SECTION 6. Funding. The MMAC, through MMDA, is hereby directed to set up a
trust fund in accordance with law, wherein funds sourced from the Office of the President,
National Government Agencies, LGUs (counterpart funds), Beneficiary Agencies and other
participating organizations (NGOs and private sector) can be drawn from, subject to
accounting and auditing rules and regulations, to expedite the implementation of the CSP
as well as the other housing strategies and policies developed by the MMAC.
SECTION 7. Repeal. All executive orders, rules and regulations and other issuances
or parts thereof, which are inconsistent with this Executive Order, are hereby revoked,
amended, or modified accordingly.
914
SECTION 8. Separability. Any portion or provision of this Executive Order that
maybe declared unconstitutional shall not have the effect of nullifying its other portions or
provisions, as long as such remaining portions can still be given effect.
SECTION 9. Effectivity. This Executive Order shall take effect immediately following
its publication in a national newspaper of general circulation.
BY THE PRESDENT:
Executive Secretary
--o0o--
Creating Two Separate Offices, the Intelligence Group and the
Enforcement Group, from the Intelligence and Enforcement Group
in the Bureau of Customs
WHEREAS, the ntelligence and Enforcement Group of the Bureau of Customs gathers
intelligence information related to customs and economic activities; conducts internal inquiry
and investigation; and exercise police authority;
WHEREAS, the demands of raising much-needed revenues require new approaches
for customs intelligence and enforcement work; and greater flexibility and effectiveness
can be achieved by having separate intelligence and enforcement groups;
WHEREAS, Article V, Section 17 of the Constitution provides that the President
shall have control and supervision of all executive departments, bureaus, and offices;
WHEREAS, PD 1772, amending PD 1416, expressly grants the President the
continuing authority to reorganize the National Government, including the power to create,
amend, change, or otherwise modify their powers, functions and authorities;
SECTION 1. Creation. Two separate offices from the ntelligence and Enforcement
Group (EG) of the Bureau of Customs (BOC) are hereby created and shall be known as
the ntelligence Group and the Enforcement Group (hereinafter abbreviated G and EG,
respectively, for brevity).
SECTION 2. Composition. The G and EG shall each be headed by a deputy
commissioner, the Deputy Commissioner for ntelligence and nvestigation (DC-) and the
Deputy Commissioner for Enforcement and Security (DC-ES), who shall be both appointed
by the President of the Philippines.
The main services under the G and EG shall be the Customs ntelligence and
nvestigation Service (CS) and Enforcement and Security Service (ESS), respectively.
The technical and support staff shall primarily be drawn from existing personnel of the EG.
SECTION 3. Implementing Authority. Consistent with the principles of economy,
efficiency, and effectiveness, the DC- and DC-ES may recommend to the Commissioner
of Customs organizational enhancements for their respective offices, subject to the evaluation
of the Department of Finance (DOF) and the Department of Budget and Management
(DBM).
SECTION 4. Appropriations. Funding shall come from the available funds of the
Bureau of Customs (BOC) and subsequent appropriations shall be incorporated into the
budget proposals, subject to existing accounting and auditing laws and procedures.
SECTION 5. Effectivity. This Executive Order shall take effect immediately.
BY THE PRESDENT:
Executive Secretary
--o0o--
Revoking Executive Order No. 493 (s. 2006) Creating
Inter-Agency Legal Action Group
WHEREAS, Executive Order No. 493, Series of 2006 provides for the creation of the
nter-Agency Legal Action Group (ALAG) for the coordination of national security cases;
WHEREAS, ALAG has already accomplished its mandate;
WHEREAS, the President has ordinance-power pursuant to the Administrative Code
of 1987;
916
SECTION 1. Executive Order No. 493, (s. 2006) creating the nter-Agency Legal
Action Group (ALAG) is hereby revoked.
SECTION 2. Executive officials and employees can no longer make use of Executive
Order No. 493 (s. 2006) in the investigation, prosecution and monitoring of offenses relating
to national security.
BY THE PRESDENT:
Executive Secretary
--o0o--
Memorandum Circular No. 176
Revoking Executive Order No. 493
SECTION 1. Following the pronouncement of the President, Executive Order No.
493 dated 17 January 2006 creating the nter-Agency Legal Action Group (ALAG) is hereby
revoked;
SECTION 2. Executive official and employee can no longer make use of Executive
Order No. 493 in the investigation, prosecution and monitoring of offenses relating to national
security;
SECTION 3. This Memorandum Circular shall take effect immediately.
BY AUTHORTY OF THE PRESDENT:
Executive Secretary
--o0o--
Affirming the Roles of Early Childhood Care and Development
Council and the Council for the Welfare of Children
WHEREAS, the Council for the Welfare of Children (CWC) was created under
Presidential Decree No. 603, and Executive Order No. 233 (s. 1986) expanded its functions,
as the national policy and program coordinating body for the promotion of the rights and
welfare of children;
WHEREAS, Republic Act (RA) 8980 provides for the establishment of the National
Early Childhood Care and Development Coordinating Council (NECCDCC) which
institutionalized a national system for a comprehensive, integrative and sustainable
collaboration for the promotion of physical, social, emotional, cognitive, psychological and
spiritual growth and development of young children;
WHEREAS, Section 1 of Executive Order No. 778 (s. 2009) provides for the
transformation of the CWC into the Early Childhood Care and Development Council (ECCDC)
attached to the Office of the President to support the implementation of the full range of
health, nutrition, early education and social services programs for the basic needs of
young children from birth to age (6) and to promote their optimum growth and development;
WHEREAS, EO 778 also provides for the transfer to the DSWD of the functions and
staff of the then CWC now ECCD Council which were not part of ECCD;
WHEREAS, there is a need to designate a focal agency separate and distinct from
the DSWD that will formulate, advocate, monitor and evaluate the implementation of national
policies, laws and programs for the development and protection of children (below 18
years) consistent with the countrys international treaty obligations and national frameworks
on children;
WHEREAS, the 1987 Revised Administrative Code of the Philippines vests power in
the President to reorganize the national government.
SECTION 1. Early Childhood Care and Development Council (ECCD Council) - The
ECCD Council shall continue to function as contemplated under EO 778. t shall be the
principal agency to implement the governments early childhood care and development
programs such as health, nutrition and early education for children from birth to age six (0-
6 years).
SECTION 2. Council for the Welfare of Children - The Council for the Welfare of
Children shall continue to function and exercise the same powers pursuant to the provisions
of PD 603 and EO 233 (s. 1986). t shall be composed of the same agencies and
organizations as identified in EO 233 (s. 1986), with the Secretary of Social Welfare and
Development as the Chairperson. t shall be attached to the Department of Social Welfare
and Development.
SECTION 3. Repealing Clause - All executive orders, rules and regulations and other
parts thereof which are inconsistent with this Order are hereby revoked, amended or
918
BY THE PRESDENT:
Executive Secretary
--o0o--
Repealing Letter of Instruction (LOI) No. 58, As Amended, Limiting the
Hectarage for Banana Export Plantation to 26,250 Hectares
WHEREAS, one of the goals of the 2004-2010 Medium-Term Philippine Development
Plan is to develop new land for agribusiness to create more job opportunities and to
strengthen global competitiveness;
WHEREAS, the Philippine export banana industry has gained global market strength
over the years producing one of the countrys major export products and source of jobs;
WHEREAS, LO 58 issued on 22 February 1973, as amended by LO 790 issued on
6 January 1979, limits the hectarage that could be planted to export banana at 26,250
hectares;
WHEREAS, the existing hectarage planted to export banana increased over the
years and has exceeded the limit allowed under said LO due to increasing global market
demand;
WHEREAS, improving the countrys global market position in the export banana
industry necessitates the repeal of LO 58 as amended.
by virtue of the powers vested in me by law, do hereby order and direct:
SECTION 1. Letter of nstruction No. 58 (series of 1973), as amended, is hereby
repealed.
SECTION 2. The Banana ndustry Export Committee is hereby dissolved. nstead,
the Department of Agriculture (DA) shall oversee the export banana industry, as with other
crops, subject to existing land use policies and plans of the national and local governments
and with due consideration to global market demand and conditions as well as social and
environmental impacts of expanding banana plantation areas, among others.
SECTION 3. All presidential issuances, administrative rules and regulations or parts
thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.
SECTION 4. This Executive Order shall take effect immediately upon publication in
a national newspaper of general circulation.
BY THE PRESDENT:
Executive Secretary
--o0o--
Adopting the First Tranche of the Modified Salary Schedule of Civilian
Personnel and Base Pay Schedule of Military and Uniformed Personnel
in the Government, As Well as the Modified Position Classification
System Pursuant to Senate and House of Representatives
Joint Resolution No. 4, s. 2009
WHEREAS, Senate and the House of Representatives Joint Resolution No. 4, s.
2009, authorizes the President of the Philippines to modify the existing Compensation and
Position Classification System of civilian personnel and the Base Pay Schedule of military
and uniformed personnel;
WHEREAS, said authority shall be exercised in accordance with the governing
principles, coverage and particulars of the modified Compensation and Position Classification
System prescribed in the Joint Resolution;
WHEREAS, the amount of P18.4 billion is appropriated under the Miscellaneous
Personnel Benefits Fund in Republic Act No. 9524 or the Fiscal Year 2009 General
Appropriations Act, to cover the compensation adjustments necessary to implement the
first tranche of the modified Salary Schedule for civilian personnel and Base Pay Schedule
for military and uniformed personnel in the national government;
of the Philippines, by virtue of the powers vested in me by the Constitution, Presidential
Decree No. 985, Presidential Decree No. 1597, Republic Act No. 6758, as amended by
the Senate and House of Representatives Joint Resolution No. 01 approved on March 7,
1994, and Senate and House of Representatives Joint Resolution No. 4 approved on June
17, 2009, do hereby order and direct:
920
SECTION 1. Purpose - This Executive Order is issued in accordance with House of
Representatives Joint Resolution No. 4, s. 2009, and shall:
(a) prescribe the first tranche of the modified salary schedule of civilian personnel
and base pay schedule of military and uniformed personnel in the government; and
(b) direct the review and modification of the position classification system.
SECTION 2. Coverage and Exclusion
(a) Civilian Personnel - The modified Compensation and Position Classification System
shall cover all positions for civilian personnel in the Executive, Legislative and Judicial
Branches, the Constitutional Commissions, State Universities and Colleges (SUCs),
Government-Owned or Controlled Corporations (GOCCs), Government Financial nstitutions
(GFs), and Local Government Units (LGUs), whether regular, casual, or contractual in
nature, appointive or elective, on full-time or part time basis, now existing or hereafter
created.
The following shall be excluded from the coverage of the System:
(i) individuals and groups of personnel whose services are engaged through job
orders, contracts of services, or others similarly situated; and
(ii) positions for civilian personnel in government entities which are authorized
by law to adopt, and are actually implementing their own compensation and
position classification systems.
(b)Military and Uniformed Personnel - The modified Base Pay Schedule provided in
item (8) of said Joint Resolution, shall cover the military personnel under the Department of
National Defense (DND) and uniformed personnel under the Department of the nterior and
Local Government (DLG), Philippine Coast Guard (PCG), and National Mapping and
Resource nformation Authority (NAMRA).
SECTION 3. Implementation Period -
(a)For national government agencies (NGAs), the Salary Schedule in item (4) (b) and
the Base Pay Schedule in item (8) of said Joint Resolution, shall be implemented in four
(4) equal yearly tranches, but in no case beyond four (4) years.
(b)For GOCCs, GFs, and LGUs, the implementation period shall be four (4) years or
more depending on their financial capability.
SECTION 4. First Tranche of Implementation -
(a)For Civilian Personnel -
(i) For NGA, GOCC and GF Personnel -
The salary rates shall be in accordance with the First Tranche Monthly
Salary Schedule for Civilian Government Personnel Effective July 1, 2009 attached
as Annex A*.
(ii) For LGU Personnel -
The salary rates for LGU personnel shall be determined by the sanggunian,
on the basis of LGU income class and financial capability: Provided, That such
salary rates shall not exceed the applicable percentages shown in the table
below, pursuant to item 7(a) of the Joint Resolution: Provided, Further That the
resulting personal services (PS) cost shall not exceed the PS limitation in local
government budgets, as provided under Sections 325(a) and 331(b) of Republic
Act No. 7160: Provided, Finally That there shall be no diminution in the basic
salaries of incumbents for purposes of complying with said PS limitation.
____________________________________________________________________________________________
Percentages of Salary Rates Shown in Annex A
___________________________________________________________________________________________
For Provinces/Cities For Municipalities
___________________________________________________________________________________________
Special Cities 100%
______________________________________________________________________________________________
1st Class 100% 90%
2nd Class 95% 85%
3rd Class 90% 80%
4th Class 85% 75%
5th Class 80% 70%
6th Class 75% 65%
_________________________________________________________________________________________________
For this purpose, the DBM shall issue the First Tranche Monthly Salary
Schedule for Local Government Personnel for each LGU income class which
shall take effect January 1, 2010.
(b)For Military and Uniformed Personnel -
The base pay rates shall be in accordance with the First Tranche Monthly
Base Pay Schedule for Military and Uniformed Personnel Effective July 1, 2009,
attached as Annex B*.
SECTION 5. Uniform Implementation in Case of Insufficiency of Funds -
(a)GOCCs and GFs which do not have adequate or sufficient funds shall implement
salary schedules which shall be at uniform percentages of the salary rates in Annex A.
(b)Likewise, LGUs which do not have adequate or sufficient funds to implement the
maximum salaries prescribed for the LGU income class shall implement salary schedules
which shall be at uniform percentages of the salary rates in the First Tranche Monthly
Salary Schedule for Local Government Personnel.
922
SECTION 6. Changes in Position Titles and Salary Grade Assignments of Certain
Positions -
The position titles and salary grade assignments of the entry levels of the following
positions are hereby modified:
Salary Grade
Position Title
From To
Teacher 10 11
Nurse 10 11
Medical Officer 14 16
Accountant 11 12
[Legal Officer ] Attorney [14] 16
The DBM, in coordination with the Civil Service Commission (CSC), shall review the
other levels of the above-listed positions and other classes of positions to determine their
appropriate levels, and to allocate them to their proper salary grades.
Accordingly, the DBM, in coordination with the CSC, shall update the ndex of
Occupational Services, Occupational Groups, Classes, and Salary Grades, in accordance
with organizational, technological, professional and other developments.
SECTION 7. Non-Diminution in the Basic Salaries of Incumbent Employees - n no
case shall there be any diminution in the basic salaries of incumbent employees upon the
implementation of the Joint Resolution and this Executive Order.
SECTION 8. Funding Sources - The funding sources for the amounts necessary to
implement the modified Compensation and Position Classification System shall be as
follows:
(a)For NGAs, the amounts shall be charged against appropriations set aside for the
purpose in the FY 2009 General Appropriations Act (GAA) and from savings generated by
the different departments, bureaus, offices and agencies of the national government.
Thereafter, such amounts as are needed shall be included in the annual GAA.
(b)For GOCCs and GFs, the amounts shall come from their respective corporate
funds in the approved corporate operating budgets.
(c)For LGUs, the amount shall be charged against their respective local government
funds.
SECTION 9. Applicability to Certain Constitutional Officials - Pursuant to Section 6
of Article V and Section 10 of Article V of the Constitution, the salaries prescribed herein
for the President of the Philippines, Vice-President of the Philippines, and Members of
Congress shall take effect only after the expiration of the respective terms of the present
incumbents.
SECTION 10. Subsequent Issuances. The President, upon recommendation by the
DBM, shall issue such other Executive Orders to fully implement the provisions of Senate
and House of Representatives Joint Resolution No. 4, s. 2009.
SECTION 11. Effectivity - This Executive Order shall take effect immediately.
BY THE PRESDENT:
Executive Secretary
--o0o--
Modifying the Rates of Duty on Certain Imported Articles as
Provided for Under the Tariff and Customs Code of 1978, As Amended,
In Order to Implement the Commitment to Reduce the Tariff Rates on
Ninety Percent (90%) of the Products in the Normal Track to Zero
with Flexibility Under the Asean-Korea Free Trade Area (AKFTA)
WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement on Comprehensive
Economic Cooperation (Framework Agreement) Between the Association of South East
Asian Nations (ASEAN) and the Republic of Korea reflects the Parties commitment to
establish the ASEAN - Korean Free Trade covering Trade in Goods;
WHEREAS, Article 3.2(a) of the Trade in Goods (TG) Agreement of the Framework
Agreement provides that tariff lines placed in the Normal Track by each Party shall have
their respective applied MFN tariff rates gradually reduced and eliminated in accordance
with the modalities set out in Annex 1 of the Agreement with the objective of achieving the
targets prescribed in the threshold therein;
WHEREAS, the aforesaid Annex 1 Section 5(b) of the TG Agreement provides that
ASEAN 6 shall implement the following targets and thresholds: (ii) eliminate tariffs for at
least 90% of the tariff lines placed in the Normal Track not later than 1 January 2009; (iii)
eliminate all tariff lines by 2010 with flexibility on 5% of the total lines, or as listed in the
agreed schedule, not later than 1 January 2012;
WHEREAS, the NEDA Board during its meeting on 31 March 2009 approved the
grant of AKFTA rates of 0% on 90% of the products in the Normal Track with flexibility;
WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD 1464), as
amended, empowers the President of the Republic of the Philippines, upon the
924
recommendation of the National Economic and Development Authority, to modify import
duties for the promotion of foreign trade;
of the Philippines, by virtue of the powers vested in me by law, do hereby order;
SECTION 1. The articles specifically listed in the Annex* (Articles Granted Tariff
Concession Under the Normal Track of the ASEAN - Korea Free Trade Area) hereof, as
classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be
subject to the AKFTA rates in accordance with the schedule indicated in Columns 4-6 of
the Annex. The AKFTA rates so indicated shall be accorded to imports coming from the
parties of the Agreement on Trade in Goods of the Framework Agreement applying tariff
concession to the same product pursuant to Article 3 of the Agreement on Trade in Goods
of the Framework Agreement.
SECTION 2. For ASEAN 8 (i.e. Brunei Darussalam, Cambodia, ndonesia, Lao
Peoples Democratic Republic, Malaysia, Myanmar, Singapore and Vietnam) the applicable
rate shall be the AKFTA rate, subject to the submission of the proper Certification of Origin,
Form AK. The Tariff Commission pursuant to Section 1313(a) of the Tariff and Customs
Code of the Philippines, as amended, may, upon request, issue tariff classification rulings
to confirm the applicable rates of duty of particular products subject to this section.
SECTION 3. n the event that any subsequent change is made in the basic (MFN)
Philippine rate of duty on any of the articles listed in the Annex to a rate lower than the rate
prescribed in Columns 4-6 of the Annex, such article shall automatically be accorded the
corresponding reduced duty.
SECTION 4. From the date of effectivity of this Order, all articles listed in the Annex
entered into or withdrawn from warehouses in the Philippines for consumption shall be
imposed the rates of duty therein prescribed subject to compliance with the Rules of
Origin as provided for in Article 5 of the Agreement on Trade in Goods of the Framework
Agreement.
SECTION 5. All presidential issuances, administrative rules and regulations, or parts
thereof, which are contrary to or inconsistent with this Executive Order are hereby revoked
SECTION 6. This Executive Order shall take effect fifteen (15) days following its
complete publication in the official gazette or in a newspaper of general circulation in the
Philippines.
BY THE PRESDENT:
Executive Secretary
OVERSEAS WORKERS WELFARE ADMINISTRATION
Memorandum of Instruction No. 001-A
Amendment to MOI No. 001, Guidelines and Procedures for the
Implementation of the Filipino Expatriate Livelihood Support Fund
(FELSF) for Displaced Overseas Workers due to Global Economic Crisis
n response to the need to improve accessibility of the Filipino Expatriate Livelihood
Support Fund (FELSF) the following sections of MO 001, series of 2009 are hereby
amended:
. FEATURES OF THE PROGRAM, letters D and F
A. t shall support the displaced workers livelihood projects either as an additional
capital to expand an existing business or to start a business.
B. The loan can be availed of after going through the business counselling and
skills training through the accredited co-partners (ACPs) for production based
projects or other institutions such as the Department of Trade and ndustry
(DT), Department of Science and Technology (DOST), as identified by the
Regional Welfare Offices for non-production based projects.
. PROGRAM MPLEMENTATON, A, last paragraph and B, Mode of Fund Releases,
Nos. 1, 2 and 4
An evaluation report shall be submitted to the RWO Director containing findings and
recommendations for final approval.
Mode of Fund Releases
1. The RWOs shall prepare all disbursement vouchers and other documentation
requirements for all approved loans.
2. The release of loan shall be based on business needs as indicated in the
business proposal.
3. Loan proceeds shall be released in full in favor of the project.
. EFFECTVTY
This Memorandum of nstructions shall take effect immediately.
(SGD.) CARMELTA S. DMZON
Administrator
--o0o--
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Memorandum Of Instructions No. 003, S. of 2009
Providing for the Implementing Guidelines of the Comprehensive
Pre-Departure Education Program for Household Service Workers
Pursuant to Department Order No. 95-09. Series of 2009, and to ensure that adequate
information is provided to all departing household service workers, the following guidelines
for the implementation of Comprehensive Pre-Departure Education Program (CPDEP)
are hereby issued:
I. The Program
The Comprehensive Pre-Departure Education Program (CPDEP) consists of a four-
day Seminar to be provided to Household Service Workers (HSWs) by accredited non-
government organizations (NGOs) and OWWA. The NGOs shall administer the seminar
on the first day, while OWWA shall handle the sessions during the succeeding days.
HSWs registered in the Mandarin Language Course will continue to undergo the
usual seminar in addition to the one-day sessions with the NGOs.
II. Coverage
1. All departing HSWs who are leaving for the first time to work overseas as household
service workers.
2. All HSWs who will work in a foreign country from their previous worksite.
III. Content
A. The first day sessions/classes which will be handled by the accredited NGOs shall run
for eight (8) hours. They will include the following topics.
1. Migration Realities
2. Host Country Profile
3. Employment Contract
4. Health and Safety
5. Travel Procedures and Tips
6. Finance Management
The previous modules shall be provided by OWWA to the NGO PDOS-providers.
B. The second, third and fourth day shall include the courses on basic language and
stress management, and other government services, including the reintegration program.
IV. Referral Procedure
1. Recruitment agencies shall refer their HSWs to NGOs-PDOS providers that are ac-
credited by OWWA for CPDEP for the first day session. Simultaneously, they shall refer
the same HSWs to OWWA for the sessions on the succeeding three (3) days.
2. After the completion of the first day seminar, the HSWs shall proceed to OWWA for
attendance to the 3-day sessions to complete the requirement for full attendance to the
PDOS.
3. The NGO-PDOS providers shall provide OWWA the lists of HSWs participants who
have completed the first day sessions.
V. Certificate of Attendance
The OWWA shall issue the Certificate of Attendance to participants who have
completed the seminar. t will provide POEA through the list of attendees for information
and reference for the processing of the workers contract.
VI. Repealing Clause
All issuances inconsistent herewith are deemed repealed.
VII. Effectivity
This Memorandum shall take effect immediately.
(SGD.) CARMELTA S. DMZON, DPA
Administrator
--o0o--
Memorandum Of Instructions No. 005, S. of 2009
Providing for the Implementing Guidelines of the Pre-Departure
Orientation Seminar for Canada-Bound Workers
Pursuant to Department Order No. 96-09, Series of 2009 and in view of the need to
prepare Filipino professionals and skilled workers leaving for Canada on employment visa
for smooth integration into the Canadian society, understand their culture and adjust to the
communities with less difficulty, the following guidelines for the implementation of the Pre-
Departure Orientation Seminar (PDOS) are hereby issued:
I. The Program
The Pre-Departure Orientation Seminar (PDOS) for Filipino professionals and skilled
workers leaving for Canada on employment visa is a one-day Seminar which will be
conducted and managed by the Overseas Workers Welfare Administration (OWWA).
II. Coverage
All Filipino professionals, technical and skilled workers leaving for Canada on
employment visa.
928
III. Content
The PDOS curriculum Seminar shall include the following topics:
1. Migration realities
2. Country/Province Specific Orientation
3. Work contract: terms and conditions
4. Health and Safety
5. Travel Tips and Procedures
6. Finance management
7. Government services
IV. Referral Procedure
1. Recruitment Agencies shall refer their Canada-bound workers to OWWA for PDOS at
least two (2) weeks prior to deployment. OWWA shall provide the Agency the PDOS
schedule for the workers who have been referred within 2 days from receipt of the list.
2. Name hires shall be referred by POEA to OWWA for attendance to PDOS.
V. Certificate of Attendance
The OWWA shall issue the certificate of attendance to participants who have
successfully undergone the seminar. OWWA shall provide POEA through the list of OFWs
who had completed the seminar for information and reference for the processing of the
workers contract.
VI. Repealing Clause
All issuances inconsistent herewith are hereby deemed repealed.
VII. Effectivity
This Memorandum shall take effect immediately.
Administrator
--o0o--
Memorandum of Instructions No. 006, S. of 2009
Establishing an OFWs Medical Rehabilitation Program at the
Secretariat for Mentally Ill and Physically Disabled Workers and
Prescribing Its Implementing Mechanics
n view of the Board of Trustees directive to come-up with a responsive health program
for medically challenged OWWA members, particularly those afflicted with mental illness
and/or suffering from physical impairment, requiring appropriate medical intervention, a
special medical program shall be established within the Secretariat to be known as the
OFWs Medical Rehabilitation Program and prescribing its implementing mechanics.
1.0 NATURE OF THE PROGRAM
The OFWs Medical Rehabilitation Program is designed to extend limited but
sustainable medical rehabilitation services for returning/repatriated OFWs who manifested
either symptom of mental illness or are suffering from any form of physical disability,
resulting from injury or illness contracted at jobsites, to facilitate gradual but resolute
medical progress for regained functional capacity.
2.0 GENERAL OBJECTIVE
The program aims to provide medically challenged OFWs with a support system of
clinical programs to enable them to regain at the very least minimal functional capacity if
not maximum level of functional independence.
2.1 Other Objectives
2.1.1 To provide free access to rehabilitation services and benefit after the PhilHealth
benefits have been exhausted;
2.1.2 To enable families of concerned OFWs cope with costly rehabilitation
expenses;
2.1.3 To facilitate personal and social reintegration of the OFWs.
3.0 PROGRAM COMPONENT
The Program has four (4) program components:
3.1 Pre-Evaluation Examination - to be undertaken by a competent medical practitio-
ner specialized in his field of discipline to determine clients eligibility for rehabilitation and
similar services. The OFW has either to proceed to the next stages of the program or be
declared ineligible to the program because he can not be rehabilitated anymore.
3.2 Rehabilitation Services - this includes necessary confinement (for cases of mental
illness) in identified PhilHealth-accredited medical center/hospital/clinic with the end pur-
pose of undergoing physical and/or mental therapy as required. t shall also cover correc-
tive surgery and giving away appropriate medical appliances/braces/splints/orthopedic shoes/
supplies and counseling services as a follow through therapy of his/her rehabilitation.
3.3 OFW Family Value Reorientation - the focus of intervention shall be on enhancing
the OFW family acceptance and coping to sustain the gains of the rehabililation compo-
nent. The earning potential of the family shall also be harnessed to replace the income
loss of the OFW.
930
3.4 Referral Services - this shall be utilized in case the client manifested intention to be
referred to other institutions for further assistance or is seeking local or overseas employ-
ment.
4.0 MEDICAL COVERAGE
The following mental disorder/illness, disabilities, paralysis, etc. are covered under
the program:
4.1 All forms of mental disorder/illness (e.g. acute reactive psychosis and others), regard-
less of degree of severity requiring medical attention and/or rehabilitation;
4.2 Physical disability - temporary or permanent - requiring therapy/braces, under the
following categories:
4.2.1 Back pain, all forms of fractures
4.2.2 Slip disc and other spinal disorder
4.2.3 Other forms of dislocation of the bones
4.3 All cases of paralysis, numbness, speech disorder and the like, whether as a result of
heart attack or stroke, accidents, and other illnesses and injuries causing temporary physical
incapacity.
4.4 Corrective surgery (with implants) for OFWs with physical disability
5.0 ELIGIBILITY REQUIREMENTS
To be qualified under the program, the OFW applicant:
5.1 must be an active OWWA member at the time of application to the program;
5.2 must be medically repatriated OFW whose mental illness or physical disability was
sustained at the post:
5.3 For those already in the country, OFW must have sustained his/her illness/disability
within six (6) months upon arrival from overseas employment;
5.4 must be medically diagnosed to be needing rehabilitation services and/or has clear
prospect of regaining, at the very least, minimum functional capacity, if not entire recovery,
through regular therapy and rehabilitation as may be determined by competent medical
practitioners (program component 3.1);
5.5 f currently undergoing therapy, must be personally defraying all attendant rehabilita-
tion expenses, and is not a recipient of free medical/financial assistance benefit from his
company, Philippine Health nsurance Corporation (PHC), any medical insurance or from
other sources.
6.0 DOCUMENTARY REQUIREMENTS
6.1 Proof of at least one (1) OWWA contribution;
6.2 Proof that OFW was medically repatriated;
6.3 Copy of Doctors medical conclusion/findings with recommendation that OFW need to
undergo rehabilitation and/or therapy program;
6.4 Copy of passport with stamped arrival date in the country;
6.5 Notarized Affidavit certifying that the OFW has been defraying personal rehab/therapy
expenses (for those currently undergoing medications at own expenses) and not a recipi-
ent of free medical insurance from any sources; and
6.6 Copy of medical/police report from the post (with English translation, in case report is
written in local language).
7.0 IMPLEMENTING STRATEGIES
7.1 Establish tie-up with PhilHealth-accredited medical centers/hospitals/clinics or spe-
cialized medical/rehabilitation institutions with, at least, basic rehabilitation facilities and a
conducive environment for fast recuperation.
7.2 Forge MOUs with identified institutions/centers for clear delineation of responsibilities
and other areas of cooperation.
7.3 Forge MOUs with NGOs, government and private institutions, to include industries,
dealing with incapacitated persons for possible local employment or capacity/skills train-
ing.
7.4 Provision of special medicines and supplies shall only be sustained while the client is
confined or an in-patient such as in the case OFWs with mental illness or those undergo-
ing corrective surgery. No maintenance drugs shall be covered by this program.
7.5 The client shall shoulder medical expenses in excess of maximum allowable amount
under this program.
7.6 The program shall be implemented nationwide after six (6) months of initial implemen-
tation in the National Capital Region (NCR).
8.0 ENTITLEMENT
Each beneficiary of the program is entitled to avail of any of the following medical
expenses (with minimum and maximum allowable expenses):
8.1 Physical Disability/Paralysis Cases
Min. Cost Max. Cost
8.1.1 Check-up Fee Php 500.00
8.1.2 X-ray Fee Php 600.00
932
8.1.3 MR examination Php 8,000.00
8.1.4 Rehab Service Php9,600.00 Php 28,800.00
(@Php400.00/session x 3 sessions
x 2-6 months therapy)
8.1.5 Corrective Surgery Php 40,000.00
8.1.6 Cost of special braces
/splints/Orthopedic shoes Php1,500.00 Php 17,000.00
8.1.7 Provision of wheel chair Php 4,000.00
8.1.8 Provision of crutches Php 700.00
8.2 Mental Illness Cases
8.2.1 nstitutional Care Php10,000.00 Php 40,000.00
(to include professional fees, rehab and other
services, drugs and board and lodging)
8.2.2 Special medicines/supplies
(confinement cases only) Php 10,000.00
8.3 Other Special Diagnostic Procedures - Any qualified worker (under 8.1 and 8.2)
can avail of this special benefit over and above the above stated medical expenses.
8.3.1 CT Scan guided thoracentesis,
angiography, etc. Php 65,000.00
9.0 PROCEDURAL STEPS
9.1 RWO-NCR receives and interviews OFW applicant or next-of-kin (NOK) of client if the
latter is medically incapable for an interview.
9.2 RWO-NCR evaluate eligibility of applicant to the program. f found qualified, requests
applicant/NOK to fill-out application form and submit all documentary requirements under
6.0.
9.3 RWO-NCR registers and refers client to OWWA Medical Retainer (MR) for pre-medical
evaluation.
9.4 MR conducts pre-evaluation of the clients condition. Determines if client need to
undergo basic medical exam/testing such as x-ray, MR, etc. or not to qualify for rehabili-
tation, etc.
9.5 MR recommends whether client is qualified/not qualified for rehabilitation, etc.
- f not qualified, He endorses back to NCR the client with a disapproved
application. f qualified, proceed to 9.6.
- NCR reviews MR recommendation and relay the same to the client.
Disapproved application for rehabilitation and sends client home.
- f client seek reconsideration, NCR may refer client to partner medical institution
(PM). Proceed to next step.
9.6 RWO-NCR prepares Letter of Authorization (LOA) to be sent to partner institution.
Client brings and submit LOA to PM.
9.7 Partner medical institution (PM) conducts basic exam/testing and evaluates results.
- nitially informs client of result of medical examination.
- f result is non-conclusive and there is further need for comprehensive testing,
PM may recommend special diagnostic testing. Otherwise, advise client of
his/her eligibility to the program whether qualified or not to undergo rehabilitation.
- f not qualified, refer back client to NCR with disapproved application. Proceed
to 9.12.
- Sends bill to NCR.
- f qualified, seek approval from NCR for rehabilitation. Proceed to 9.13.
- f needing special diagnostic testing, proceed to the next step.
9.8 PM seeks approval from NCR for special diagnostic examination.
9.9 RWO-NCR evaluates request; confer with MR. Either seek reconsideration to PM or
sends its approval via phone call.
-f disapproved, relay message to PM seeking reconsideration. PM may proceed
to rehabilitation process 9.13
-f approved, proceed to next step
9.10 PM conducts special diagnostic examination and based on result, advise client
whether qualified or not to undergo rehabilitation, etc.
9.11 PM submit findings/recommendation to RWO-NCR.
- f client do not need rehab, PM refer back client to NCR. Proceed to 9.12.
- PM sends bill to NCR.
- f client need rehabilitation, proceed to 9.13.
9.12 RWO-NCR informs client-applicant of PM conclusion. Disapprove application for
rehabilitation and inform client he/she can not be rehabilitated anymore.
9.13 PM admits client and conducts necessary rehabilitation services/program as re-
quired.
9.14 PM, after rehabilitation services, discharges client. Sends bill to RWO-NCR for pay-
ment together with Medical Certificate citing final state of client/patient upon discharge.
9.15 RWO-NCR, upon completing all documentary requirements, pays partner medical
institution.
9.16 RWO-NCR makes house visitation and conducts family value orientation as may be
needed.
9.17 RWO-NCR provides other services such as referral letter to concerned partner institu-
tion per need of the client.
934
10.0 BUDGETARY REQUIREMENTS
nitial program fund requirement of Ten Million Pesos (Php10,000,000) to defray the
following expenses/services:
10.1 Check-up
10-2 X-ray fees
10.3 MR examination
10.4 Rehab services
10.5 Corrective surgery
10.6 Cost of special braces, etc.
10.7 Provision of appliances (wheel chair, crutches, etc.)
10.8 nstitutional care
10.9 Special medicines and supplies
10.10 Special diagnostic procedures
Subsequent budgetary appropriations of the program to be determined by the Board
of Trustees.
11.0 EFFECTIVITY
This MO takes effect immediately.
Administrator
PHILIPPINE HEALTH INSURANCE CORPORATION
PhilHealth Circular No. 09, s. 2009
2009 Revised Inpatient Benefit Schedule
Consistent with PhilHealths mandate to provide a responsive, adequate and more
equitable benefit package, the revised inpatient benefit schedule pursuant to PhilHealth
Board Resolution Number 1212 s-2009 is hereby implemented subject to the following
guidelines:
A. GENERAL RULES
1. Primary (Level 1) hospitals shall be reimbursed for:
a. Cases where the primary illness is classified as case types A and B. Medical conditions
classified as case types C and D in Level 1 hospitals shall only be reimbursed up to the
limit specified in case type B.
b. Procedures with RVU 30 and below:
1) Dialysis, chemotherapy and radiotherapy done in primary hospitals shall not be
compensated.
2) Procedures with RVU above 30 may only be reimbursed if considered as emergency.
i. Payment of hospital charges shall be based on case type A only.
ii. Payment of surgeons fee shall be up to 2,000 pesos only
iii. Payment of operating room fee is fixed at 500 pesos
2. Secondary (Level 2) hospitals shall be reimbursed for clinical conditions classified as
case type A, B and C. Conditions classified as case type D in Level 2 hospitals shall
only be reimbursed up to the amounts specified in case type C.
3. Only Tertiary (Levels 3 & 4) hospitals shall be reimbursed the maximum amount specified
in case type D.
4. All claims with primary conditions classified as case type D shall require submission of
PhilHealth Claim Form 3 or Clinical Abstract for proper evaluation regardless of hospital
category.
5. Benefits for drugs and medicines, supplies and laboratories shall be subject to the
limits covered by the rule on single period of confinement for the same illness. This
means that admissions and re-admissions due to the same illness within a 90-day
period shall only be compensated within one (1) maximum benefit, to wit:
a. Therefore, availment of benefit for the same illness or condition which is not
separated from each other by more than 90 days will not be provided with a new
benefit, until after the 90-day period reckoned from the date of admission.
b. Only the remaining benefits from the previous confinement/s may be availed
for succeeding confinements due to the same illness.
6. All claims for drugs and medicines, supplies and necessary laboratory procedures
supported by official receipts dated 30 days prior to admission may be reimbursed for
the following procedures: peritoneal dialysis, hemodialysis, chemotherapy, and other
elective surgeries.
7. The new inpatient benefit schedule for Level 1; Level 2; and Levels 3 & 4 hospitals are
annexed in this circular. (See attached Benefit Schedule*)
936
B. ROOM AND BOARD
1. Room and board benefit will depend on hospital category, case type of illness and
patients length of stay.
2. A member is entitled to a maximum of 45 days confinement per calendar year. When
the 45-day allowance has been consumed, claims for succeeding confinements shall
no longer be covered including payment for drugs and medicines; x-ray, laboratory, and,
supplies; operating room fee; and professional fee.
C. DRUGS AND MEDICINES
1. Maximum benefit for drugs and medicines benefit will depend on hospital category and
case type of illness.
2. Benefits for drugs and medicines are covered by the rule on single period of confinement.
3. Rules on Phil. National Drug Formulary (PNDF), Antimicrobial Resistance Surveillance
Program (ARSP) and rational drug use shall be observed.
D. SUPPLIES, AND RADIOLOGY, LABORATORY & ANCILLARY PROCEDURES
1. Maximum benefit for supplies and radiology, laboratory and ancillary procedures shall
depend on hospital category and case type of illness.
2. Benefits for x-ray, laboratory and supplies are also covered by the rule on single period
of confinement.
3. As required by the Cheaper Medicines Act, official receipts issued by doctors for devices
(e.g., intraocular lens) shall not be reimbursed by PhilHealth.
E. OPERATING ROOM
1. Payment for operating room (OR) will depend on the hospital category and the RVU of
the procedure.
a. For primary hospitals, payment of OR is fixed at 500 pesos per use of
operating room.
b. For secondary hospitals and ambulatory surgical clinics (ASC), freestanding
dialysis centers (FDC), payment for OR shall be as follows:
RVU of the Procedure Payment for Operating Room
RVU 30 and below 750 pesos per use of operating
room
RVU 31 to 80 1,200 pesos per use of operating
room
RVU multiplied by 15 peso conversion factor
RVU 81 to 600 z Minimum of 2,200 pesos
z Maximum of 7,500 pesos
c. For Tertiary hospitals:
RVU of the Procedure Payment for Operating Room
RVU 30 and below 1,200 pesos per use of operating room
RVU 31 to 80 1,500 pesos per use of operating room
RVU multiplied by 20 peso conversion factor
RVU 81 to 600 z Minimum of 3,500 pesos
Example procedures:
Procedure (RVU) Payment for Operating Room
Primary Secondary Tertiary
1) Excision breast mass (RVU 25) 500 pesos 750 pesos 1,200 pesos
2) Explor lap (RVU 150) 0 2,250 pesos (3,000)
3,500 pesos
3) Cholecystectomy (RVU 180) 0 2,700 pesos 3,600 pesos
4) ntracranial surgery (RVU 600) 0 (9,000) 7,500 12,000 pesos
pesos
d. Payment of operating room fee covers the use of operating room complex -
operating room, delivery room, recovery room, minor operating room, endoscopy
room, hemodialysis room, or radiotherapy room.
1) Payment for operating room complex also covers payment for machines
and equipment used during operation.
2) Drugs (e.g. oxygen, anesthesia) and supplies (e.g., gauze, cotton, suture,
etc.) used inside the operating room shall be charged against the benefit allotted
for drugs and for supplies, not against the budget for the operating room.
3) Claims for operating room fee for bedside procedures and peritoneal dialysis
shall not be reimbursed.
e. For multiple procedures done in separate operative session, payment of OR
fee shall be given per use of operating.
F. PROFESSIONAL FEE
938
Payment for professional fee (PF) depends on service rendered (medical
management or surgery) case type of illness, professional and hospital category and
patients length of stay.
1. Daily visits
a. Payment for daily visit will depend on length of stay, case type of illness and doctor
category. (See Attached Benefit Schedule*).
b. Doctors with Claims Code Group Numbers 2, 3, and 4 (See Annex A* of PhilHealth
Circular No. 11, series of 2005) shall be classified as specialist in the computation of
payment for daily visits.
c. Claims for professional fee for daily visit of doctors with Claims Code Group Numbers 1,
5, and 6 shall be computed using the rate for general practitioners.
d. Payment for multiple doctors is allowed provided that all services claimed are medically-
necessary. Payment shall be based on rate for daily visit but the total payment for all
doctors shall not exceed the maximum limit per confinement.
1. Example: Patient admitted for 4 days in a tertiary hospital for pneumonia high risk
(classified as case type C) and managed by 2 specialists.
Doctors Daily rate PF Payment
Specialist 1 (Group 2) 700 pesos 700 x 4 days = 2,800 pesos
Specialist 2 (Group 2) 700 pesos 700 x 4 days = 2,800 pesos
Total Payment for PF daily visit 5,600 pesos
2. Surgery and Other Services with RVUs
Payment for surgeons and anesthesiologist shall be based on the following tables:
Primary (Level 1) Hospitals
Case Type A and B
Claims Code Group Surgeon Anesthesiologist
Group 1 (GP) RVU x PCF 40 (baseline) 40% of baseline
surgeons fee
Group 5, 6 (With training) RVU x PCF 48 48% of baseline
surgeons fee
Group 2, 3, 4 (fellow) RVU x PCF 56 56% of baseline
surgeons fee
Maximum of 2,000 Maximum fee computed
confinement as percentage (40,
48 or 56) of 2000
Secondary (Level 2) Hospitals
Case Type A, B and C
Group 1 (GP) RVU x PCF 40 (baseline) 40% of baseline surgeons fee
Maximum of 3,200 pesos Maximum of 1,280 pesos
Group 5, 6
(With training) RVU x PCF 48 48% of baseline surgeons fee
Group 2, 3, 4 (fellow) RVU x PCF 56 56% of baseline surgeons fee
Tertiary (Level 3 and 4) Hospitals
Case Type A , B and C
Maximum of 3,200 pesos Maximum of 1,280 pesos
Group 5, 6
Case Type D
Maximum of 3,200 pesos (RVU x PCF 40)
Maximum of 1,280 pesos
Group 5, 6
(RVU x PCF 40)
(for RVU 500 and below) (RVU of PCF 40)
Group 2, 3, 4 (fellow) RVU x PCF 80 40% of specialist surgeons fee
(for RVU 501 and above) (RVU x PCF 80)
940
a. Surgeons Fee
1) Payments of professional fee of surgeons are based on relative value unit
(RVU) multiplied by the peso conversion factor (PCF).
i. PCF depends on doctor category as stated by tiered payment of PF.
ii. Doctors classified as general practitioners (Claims Code Group Number 1)
shall only be compensated up to RVU 80 (3,200 pesos) per procedure. However
this limit shall not be applicable to claims for PF (for pooling) on surgeries
performed by salaried physicians as supervised by specialists in government
hospitals and private training hospitals and shall therefore be compensated
accordingly based on the RVU of the procedure. Likewise, this exemption shall
be applicable to general practitioners practicing in PhilHealth identified shortage
areas.
2) PCF 80 shall only be applicable to specialists performing procedures with
RVU 501 and above in tertiary hospitals. PCF of 40 still apply to Group 1
(general practitioners) and PCF of 48 for Groups 5 and 6 (doctors with training).
Example: tertiary hospital
Payment of Surgeon (rmaximum fee for GP)
Procedure (RVU) Group 1 Groups 5, 6 Groups 2, 3, 4
Surgery intracranial
(RVU 600) RVU x 40 RVU x 48 RVU x 80
=(24,000) =28,800 pesos =48,000 pesos
3,200 pesos
r
3) For multiple procedures wherein 1 procedure performed has an RVU of
501 and above and the other procedure has an RVU below 500, PCF 80 shall
only apply to the procedure with RVU 501 and above. Example:
Payment of Surgeon (rmaximum fee for GP)
Procedure (RVU) Group 1 Groups 5, 6 Groups 2, 3, 4
Cutdown (RVU 10) 10 RVU x 40 10 RVU x 48 10 RVU x 56
= 400 pesos = 480 pesos = 560 pesos
Resection neoplastic
lesion anterior 550 RVU x 40-= 550 RVU x 48 550 RVU x 80
cranial fossa;
extradural (22,000) 3,200 pesos
r
26,400 pesos 44,000 pesos
(RVU 550)
Total Payment 3,600 pesos 26,880 pesos 44,560 pesos
4) Additional payment for daily visits shall only be allowed for procedures
with RVU of 30 and below.
b. Anesthesiologists Fee
1) Two or more procedures done in one sitting, regardless of site,
anesthesiologist shall be compensated using the procedure with the higher/
highest value unit. Example: two surgeries for fracture done in 1 session in a
single confinement
Payment
Procedure (RVU) Surgeon Anesthesiologist
Doctor Group 3 Doctor Group 4
1a. Fracture proximal phalanx,
right hand, thumb, open (90 RVU) 5,040 2,106
1b. Fracture distal phalanx, left hand,
second digit, open (80 RVU) 4,480 1,792
Total 6,400 pesos 2,016 pesos
Pay only the higher procedure in 1 operative session

2) t is reiterated that professional fee for local anesthesia is not covered.
This Circular shall take effect for all claims with admission dates starting April 5,
2009.
All other issuances inconsistent with this circular are hereby modified or repealed
accordingly.
For the information and guidance of all concerned.
(SGD.) DR. REY B. AQUNO
President and CEO
--o0o--
Revised Value Scale for 2009 with Additional Procedures
PhilHealth is mandated by law to adapt to changes in medical technology to meet
the needs of its members. As stated in Section 39 of the mplementing Rules and Regulations
of RA 7875 (as amended by RA 9241) PhilHealth shall introduce additional benefit items
and continuously improve the system for benefits availment.
942
Pursuant to PhilHealth Board Resolution No. 1207 series of 2009, amendments to
the RVS 2001 include:
1. Fifteen additional procedures to wit:
__________________________________________________________________________________________________________
CODE DESCRIPTIVE TERMS RVU
__________________________________________________________________________________________________
31636 Bronchoscopy; diagnostic, (flexible or rigid),
with placement of bronchial stents 100
___________________________________________________________________________________________________
31643 with placement of catheters for intracavitary
radioelement application 100
_____________________________________________________________________________________________________
52649 High intensity focused ultrasound (HFU) of the
prostate including transurethral resection of
the prostate (TURP) 250
________________________________________________________________________________________________________
55101 Drainage and debridement of Fourniers
gangrene of the scrotum 25
__________________________________________________________________________________________________
58750 Tubotubal anastomosis 100
__________________________________________________________________________________________________
59814 Manual vacuum aspiration for
spontaneous abortion 50
______________________________________________________________________________________________
65780 Ocular surface reconstruction; amniotic
membrane transplantation 200
__________________________________________________________________________________________________
65781 limbal stem cell allograft (e.g., cadavaric or
living donor) 200
_________________________________________________________________________________________________
65782 limbal conjunctival autograft
(includes obtaining graft) 200
__________________________________________________________________________________________________
Extracapsular cataract removal with insertion of
intraocular lens prosthesis (one stage procedure),
manual or mechanical technique (e.g., irrigation and
aspiration or phacoemulsification), complex,
requiring devices or techniques 200
66982 not generally used in routine cataract surgery
(e.g., iris expansion device, suture support
for intraocular lens, or primary posterior
capsullorhexis) or performed on patients in the
amblyogenic developmental stage
____________________________________________________________________________________________________
67027 mplantation of intravitreal drug delivery
system (e.g., ganciclovir implant), 170
includes concomitant removal of vitreous
_________________________________________________________________________________________________
68371 Harvesting conjunctival allograft, living donor 120
_____________________________________________________________________________________________________
75757 Angiography, fluorescein (eye) 50
___________________________________________________________________________________________________
92980 Transcatheter placement of an intracoronary stent(s),
percutaneous, with or without other therapeutic 200
interventions, any method; single vessel
_____________________________________________________________________________________________
92981 each additional vessel 200
___________________________________________________________________________________________________
2. Revision of relative value units (RVU) of selected procedures currently found in the RVS
will be revised as listed in the attached Annex* of this Circular.
3. n addition, to properly guide all concerned in the implementation of this circular, the
ground rules for RVS 2001 shall remain in effect until its revision.
This Circular shall take effect for all claims starting April 1, 2009 admissions. All
other issuances inconsistent herewith are hereby modified or repealed accordingly.
President and CEO
--o0o--
MLhuiller Sendout Form as Proof of Premium Payments
n line with the on-going pilot implementation of MLhuillier as PhilHealth collecting
agent within the jurisdiction of PhilHealth Regional Office V (PRO V), please be advised
that the ML KWARTA PADALA (MLKP) Sendout Form must be recognized as proof of
premium payments of NHP members effective February 13, 2009.
MLKP Sendout Form (Annex A*) is an acknowledgement receipt which serves as an
official receipt issued by MLhuillier to paying NHP members. When electronically generated,
said form shall have the twelve (12) digit machine printed transaction code. However, for
off-line transactions, MLKP Sendout Form Remote Transaction (Annex B*) is issued with
the transaction code manually supplied and signed by MLKP cashier/teller. All forms have
the following payment information:
a. Members PN/PEN
b. Member Name
c. Member Type
d. Applicable Period
e. Amount Paid
f. Validation Date
944
g. Remarks
President and CEO
--o0o--
Accreditation of Hospital-based Out-Patient Clinic like Free Standing
Dialysis Clinics (FSDCs) and Ambulatory Surgical Clinics (ASCs)
n line with the issuance of the Department of Healths One Stop Shop License to
Operate (OSS-LTO) for health facilities and pursuant to Section 56 of the mplementing
Rules and Regulations of the National Health nsurance Act (RA 7875) as Amended by RA
9241 which states that, The Corporation shall prescribe the requirements and conditions
for the accreditation of out-patient clinics that will support the provision of services which
these facilities are accredited for, hospital-based out patient clinics like free-standing
dialysis clinics and ambulatory surgical clinics may still apply for accreditation separate
from the hospital it is licensed with.
Apart from all the other requirements and standards of accreditation for the service
provision the clinic is applying for, the Corporation shall honor the DOH OSS-LTO issued to
the hospital where it is based, provided its name is appended with the said license. However,
for clinics with separate LTO, they shall submit the same upon application.
This circular shall amend all previous issuances inconsistent herewith.
This shall be effective 15 days from publication in the official gazette or in a newspaper
President and CEO
--o0o--
Relative Value Scale Codes for Processing of Directly Observed
Treatment Short-course Package Claim
This circular is issued to facilitate proper assignment of codes in the processing of
Directly Observed Treatment Short-course (DOTS) package claims in all PhilHealth
accredited DOTS center.
The Relative Value Scale codes to be assigned in all DOTS claims shall be as
follows:
Code Descriptive Terms RVU
89221 Directly Observed Treatment Short-course; Package
intensive phase
89222 maintenance phase Package
This Circular shall be effective for all TB-DOTS claim reimbursements that will complete
treatment (intensive or maintenance phase) on or after May 1, 2009. All other issuances
not inconsistent with this circular shall remain in full force and effect.
President and CEO
--o0o--
Coding of Claims for Severe Acute Respiratory Syndrome (SARS)
Package and Avian Influenza (Bird Flu) Package
n order to simplify reporting, storage and retrieval of information relating to
reimbursements of Severe Acute Respiratory Syndrome (SARS) Package and Avian
Influenza (Bird Flu) Package, claims for these benefits shall be assigned the following
codes in the Relative Value Scale:
CODE DESCRPTVE TERMS RVU
99501 Severe Acute Respiratory Syndrome
(SARS) Package Package
99502 Avian nfluenza (Bird Flu) Package Package
This Circular shall take effect for all claims with admission dates starting July 1,
2009. All other provisions of previous issuances on SARS Package and Bird Flu Package
946
President and CEO
--o0o--
Revised Case Type Classification for 2009
Pursuant to the approved PhilHealth Board Resolution Number 1208 series of 2009
that aims to update and rationalize the current case type classification to make benefits
more responsive to the members needs, the following clarification and guidelines on the
revised case type classification are hereby issued:
1. Case type is an assessment of complexity of illness assigned to a case after dis-
charge. t is measured on a four (4) scale system, from A to D, with case type A being the
least complex and case type D as the most severe.
Case Type Severity Example
A Simple Upper respiratory tract infection (J06.9)
B Moderate Status asthmaticus (J46)
C Severe End stage renal disease (N18.0)
D Extremely
severe Deep intracerebral haemorrhage (61.0)
2. CD-10 codes considered as case types A, B, C and D are listed in Annex* A, B, C and
D, of this Circular.
3. All CD-10 codes are assigned with corresponding fixed case types. Hence, all claims
submitted to PhilHealth, except those paid through case payment shall be paid based
on the case type of primary illness.
4. Considering the severity of some illnesses/conditions, modifications in case type
assignment may be considered for the following illness/condition:
a. Cases/conditions considered for automatic upgrade of case type
Illness or Condition Upgraded to Case
Type
Conditions requiring transfusion of blood or blood products B
Pneumonia
Community-acquired pneumonia , moderate risk (adult) B
Pediatric community-acquired pneumonia, moderate risk (PCAP C) B
Community-acquired pneumonia V, high risk (adult) C
Pediatric community-acquired pneumonia, high risk (PCAP D) C
Malignant neoplasm
Cancer with metastasis C
Chemotherapy session for neoplasm C
Radiotherapy session C
Dialysis session i.e. peritoneal dialysis and hemodialysis C
n the event of death regardless of illness or condition D
b. For the following illness/condition, the corresponding case type shall be considered
applicable, provided the diagnosis and CD-10 code are clearly stated in the claim form.
Description Case Type
Chronic respiratory insufficiency B
Multiple Drug Resistant Tuberculosis confirmed by culture B
Nosocomial pneumonia B
Multiple organ failure C
GENERAL RULES FOR CASE TYPING
A. Medical
1. For coding and reimbursement of medical claims, case type will be based on the
CD-10 of the primary illness or main condition.The primary illness or main condition
is the condition identified at the time of discharge as being the main reason for the
patients confinement, whether it is for receiving care or for investigation of a current
illness or injury (please see PhilHealth Circular No. 4 s. 2002).
Example 1:
948
Final Diagnosis ICD-10 Code Case Type
Hypertension 10.9 A
Acute pyelonephritis
(Main condition) N10 B
The final case type for this example is B.
Example 2:
Final Diagnosis ICD-10 Code Case Type
End stage renal disease
(ESRD) N18.0 C
Acute pharyngitis
(Main condition) J02.9 A
The final case type for this example is A.
2. n cases wherein the hospital claimed for a lower reimbursement, PhilHealth
shall reimburse to the member within the amount of the remaining benefit,
provided the claim is supported by an Official Receipt (OR) and Statement of
Account (SoA) issued by the hospital.
3. For cases wherein there is a discrepancy between the final diagnosis and
the management based on part three () and four (V) of the Claim Form 2,
PhilHealth may return the claim to the hospital with request for a properly
accomplished PhilHealth Claim Form 3 and other appropriate documents e.g.,
copy of clinical chart, laboratory result, radiology result and other ancillary
procedures, complete clinical abstract deemed necessary for proper evaluation.
4. For claims wherein the member or hospital request for a higher case type
other than those specified in this circular, PRO - Benefit Administrative Sections
may refer such requests to the Quality Assurance Committee (QAC) for their
evaluation and recommendation. For such claims, it is reiterated that the
complete diagnosis and its applicable CD 10 code should be clearly stated in
the PhilHealth Claim Form 2 and a properly accomplished PhilHealth Claim
Form 3 should be submitted.
B. Surgical
1.For claims with surgical procedure/s and other services, the case type shall be based
on the corresponding Relative Value Unit (RVU) assigned to the procedure.
Case Type RVU Example
A 80 and below Simple repair of wound (RVU 10)
B 81 up to 200 Appendectomy (RVU 100)
C 201 up to 500 Whipple-type procedure (RVU 450)
D 501 and above Surgery intracranial aneurysm (RVU
600)
2. For claims with two (2) or more surgical procedure/s (multiple surgeries), the case type
shall be based on the procedure with the highest RVU.
Example 3:
Procedure RVU Case
Type
Excision of breast lesions with frozen section 25 A
Modified radical mastectomy 150 B
Pathology consultation with frozen section, 1 block 20 A
3. n cases where the case type for the medical diagnosis and the surgical procedure are
different, the higher case type shall predominate.
Example 4:
Case Type
Diagnosis: End stage renal disease (ICD 10 code = N18.0) C
Procedure done: Hemodialysis (RVU 10) A
The final case type for this example is C.
Example 5:
Case Type
Diagnosis: Acute appendicitis without perforation (CD 10 code = K35.9) A
Procedure done: Appendectomy (RVU 150) B
950
C. Other Rules
1. For case type D
a. t is reiterated that all claims with primary illness/condition classified as case type D
shall be required submission of PhilHealth Claim Form 3 or Clinical Abstract for proper
evaluation and assessment. f PhilHealth Claim Form 3 or Clinical Abstract is not attached
in the claim, it shall be returned to the hospital for completion.
b. For multiple surgical procedures wherein one procedure has an RVU of 501 and above,
only the procedure above RVU 501 will use the peso conversion factor (PCF) specific for
case type D (PCF of 80). Computation of professional fee for other procedures below 501
will use the baseline PCF of 40 depending on the tier category of the doctor.
Example 6:
Case Type
Diagnosis: Deep intracerebral haemorrhage (I61.0) D
Procedure done: Cutdown (RVU 10) performed by a surgeon A
The final case type for this Example is D, however the computation of PF for
cutdown will be based on baseline PCF of 56 (RVU 10 x PCF 56 = PF of 560).
c. t is reiterated that benefits for case type D can only be paid for patients admitted in
Level 3 and 4 (tertiary) hospitals. Case type D in Level 1 (primary) and 2 (secondary)
hospitals shall be paid as case type B and C, respectively.
d. For medical conditions classified as case type D payment of doctors daily visit will
depend on the rates provided for case type D.
2. For primary hospitals
a. For all cases classified as case type C and D the maximum benefit is still
based on case type B.
b. Claims for Level 1 (primary) hospitals are still required to submit Claim Form 3
or Clinical Abstract except for claims paid thru case payment e.g., NSD, BTL, Vasectomy,
etc.
This Circular shall be applicable to all admissions effective July 1, 2009.
All other provisions and issuances inconsistent with this circular are hereby repealed,
modified and amended accordingly.
President and CEO
--o0o--
PhilHealth Circular No. 19, S. 2009
Amendment to the Transitory Provision of PhilHealth Circular No. 40, s. 2000,
re Implementing Guidelines for Outpatient Consultation and Diagnostic
Package under the Medicare para sa Masa (Sponsored) Program
This policy amendment aims to provide our members increased accessibility and
improved efficiency in the delivery of health care services. This also promotes primary
health care and supports the holistic approach towards attaining and sustaining universal
coverage of membership under the Sponsored Program and benefits delivery.
Chapter , 3.2 Transitory Provisions
n the event that the Rural Health Unit or Health Center where the indigent
members are initially assigned is not accredited to provide the out-patient
consultation and diagnostic package based on the set standards for
accreditation, the following provisions shall be observed until such time the
RHU qualifies for accreditation;
mplementing Unit - PhilHealth accredited city/municipal/district/provincial
hospitals shall be the main implementing units and first line of providers. They
shall be authorized by PhilHealth to provide the services under the program on
a quarterly basis;
shall be amended as follows:
The Corporation shall honor all existing and all other accredited hospitals
which are recommended for authorization to provide the out patient consultation
and diagnostic (OPB) package for enrolled Sponsored Program members without
prejudice to accredited rural health unit/center in the locality. These authorized
hospitals, however, shall provide the OPB package for maximum of two (2)
years only from the effectivity of this circular. Thereafter, the provider for the
OPB package shall only be an accredited rural health unit/center in the
respective city/municipality.
This order shall take effect immediately.
President and CEO
--o0o--
952
PhilHealth Circular No. 20, S. 2009
Coverage for P100 Drugs and Medicines for Eligible Sponsored Members
RATIONALE
PhilHealths mandate is to ensure financial protection in times of sickness especially
for those who belong to the marginalized sector or the poorest of the poor. t is likewise the
policy of the Government to ensure universal access to affordable and quality medicines.
Currently, the Corporation reimburses drug products and services consistent with
rational prescription. Further, in order to influence the delivery of quality services, PhilHealth
recommends the use of Clinical Practice Guidelines in the management of treatment of ill
health.
n line with this commitment, to ensure access to cheaper quality drugs and
medicines for illnesses significantly affecting the health of Filipinos, particularly the poor,
the Corporation shall expand coverage for drugs and medicines to include take home
medications under the P100 Program (Treatment Packs worth Php 100.00) initiated by the
Department of Health (DOH).
LEGAL BASIS
n line with the mplementing Rules and Regulations (RR) of Republic Act (RA) 9502
otherwise known as the Universally Accessible Cheaper Medicines Act of 2008 and
pursuant to PhilHealth Board Resolution 1214 s-2009, approving the PhilHealth coverage
of the P100 drugs for eligible sponsored members, PhilHealth shall cover drugs and
medicines that are listed as P100 drugs beyond the patients confinement period (as take
home medication).
1
GENERAL RULES
A. This benefit shall initially cover all eligible sponsored members and their qualified
dependents.
B. P100 Drugs shall be given/prescribed to sponsored members, as applicable, during
confinement and extra pack(s) needed beyond the confinement period subject to the
following limitations:
a. Full course treatment (maximum of two weeks) for infections covering
antimicrobial drugs.
b. For chronic illnesses, P100 drugs shall be limited to cover two weeks
maintenance dose after discharge.
1
This Circular is the initial Implementing Circular of PBR 1214, s. 2009. Subsequent
Circulars shall be issued pursuant to the provisions of the said PBR and the Implementing
Rules and Regulations (IRR) of the Universally Accessible Cheaper and Quality Medicine
Act of 2008.
c. For other acute illnesses, P100 drugs shall be limited to one extra pack as
take home medications after discharge.
d. Should be within the prescribed in-patient benefit limits for drugs and
medicines.
C. n case the required P100 drugs are unavailable in the accredited hospital/facility where
the member is admitted, the purchase of such drugs from any P100 outlets/sources
authorized by the Department of Health (e.g. DOH and LGU supervised facilities, Botika
ng Bayan outlets, Botika ng Barangay) may be covered provided that corresponding
official receipts are attached to the claim application for direct reimbursement to the
patient/member subject to the in-patient benefit ceiling on drugs and medicines and
filing of claims within the prescribed period of 60 days (after discharge);
D. Administration of P100 drugs and claims thereto should be appropriate, necessary and
consistent with the principles of rational drug use, established Clinical Practice Guidelines
(CPGs) and other acceptable standards of medical practice and ethics. (please see
attached annex A* for list of P100 drugs);
E. n cases where P100 Treatment Pack(s) are not consumed during the period of
confinement, PhilHealth shall reimburse the same per pack basis. Meaning, those left
per treatment pack after confinement will still be reimbursed subject to the benefit
ceilings for drugs and medicines.
Illustration:
Mr. Rey, a sponsored member was confined at East Avenue Medical Center
for diabetes mellitus. He was given P100 Treatment Pack metformin 500 mg
(90 tablets) to be taken three (3) times a day. Mr. Rey was discharged after 5
(five) days thus he consumed only 15 tabs of treatment pack. PhilHealth shall
reimburse the whole pack (90 tabs) subject to the in-patient benefit ceiling
limits for drugs and medicines.
ELIGIBILITY
1. All sponsored members and their qualified dependents with date(s) of confinement within
the validity period of their membership as indicated in the D card/Member Data Record.
CLAIMS AVAILMENT
1. There will be no separate claim application for P100 drugs. Claims for these shall be
incorporated in the Claim Form 2 part for the in-patient services.
To illustrate:
Part III - DRUGS AND MEDICINES
Preparation Benefit Claim
(dose/cap/syrup/injectible/ Actual
Generic Name Brand tab with ml/mg/gm content) Qty Unit Price Charges Hospital Member
P100
Co-Amoxiclav 625 mg/tab 14/pack 500.00 500.00 500.00
954
2. For P100 drugs purchased from any P100 DOH authorized outlets/sources outside the
hospital/facility during confinement, claims for such may be reimbursed accordingly
provided, corresponding official receipts are attached to the claim application.
EFFECTIVITY
This issuance shall take effect for benefit claims of sponsored members with
admission date starting June 1, 2009.
President and CEO
--o0o--
Amendment to PhilHealth Circular 30, s. 2004 on Conditions to
Qualify a Hospital for Initial Accreditation which has not Operated
for at Least Three (3) Years
1. The three (3) year rule requirement is waived for the providers of the following pro-poor
benefits:
a. Out-Patient Benefit Package (OPB)
b. Anti-TB/DOTS Package
c. Maternity Care Package (MCP)
2. For an HCP which failed to comply with the requirement of three (3) years in operations,
any of the following conditions may be used to qualify in lieu of the said requirement as
applicable.
1. For ambulatory surgical clinic (ASC), free-standing dialysis clinic (FSDC),
the managing health care professional namely, the Medical Director, Administrator or
the Chief of Facility shall have at least three (3) years of work experience in a similar or
analogous or at least the same level of institution/facility it is applying for,
For hospitals, the Medical Director, Hospital Administrator or the Chief of Hospital
shall have at least three (3) years of work experience in at least the same level of
hospital it is applying for.
a. The HCP where the experience was incurred has been accredited for at
least three (3) years, and
b. The HCP shall submit any of the following as proof of experience of the
managing health care professional:
1. Service Record if from government facilities
2. Certification from the Board (if corporation) or facility owner (single
proprietorship) if from private facilities
f the managing health care professional leaves the accredited HCP within
the initial year of accreditation, he/she must be replaced immediately by
another professional with same qualifications as mentioned above to ensure
continuity of service. Non-compliance shall lead to termination of accreditation
effective on the date of vacancy.
2. t operates as a tertiary facility;
3. For ASCs and FSDCs, there are no currently accredited similar facility in the
same locality while for hospitals, there are no currently accredited same level/category
facility within the same locality as certified by the concerned PhRO and validated by the
Accreditation Department, Central Office;
4. There are currently accredited HCP of similar or same level facility it is applying
for within the same area but cannot adequately provide health care services as certified
by the Local Chief Executive (LCE), evidenced by the Certificate of Need (CON) issued
by the Department of Health (DOH) and recommended by the respective PhRO.
All previous policies and guidelines and other administrative issuances with provisions
inconsistent herewith are hereby repealed/amended accordingly.
This circular shall take effect after fifteen (15) days from publication in the official
gazette or any newspaper of general circulation.
President and CEO
--o0o--
Guidelines on Downgrading, Closure/Cease and Desist Operation
of Institutional Health Care Providers
n order to facilitate the accreditation of institutional health care providers and to
make the processing of applications for accreditation more efficient, the following are hereby
issued:
A. DOWNGRADNG OF HCPs:
1. A Level 2, Level 3 or Level 4 (L2, L3 or L4) hospital that was given provisional accreditation
due to non-compliance to the requirements or standards of accreditation but failed to
956
comply within the compliance period as prescribed by the Corporation may be downgraded
to a level/category it is compliant with. This however, shall be done only after submission
of a letter of intent (LO) within the compliance period stating therein that they are
amenable to such downgrading. Failure to submit the said document shall result to
termination of its provisional accreditation effective on the date of deliberation of
Accreditation Committee.
2. An HCP applying for accreditation but upon evaluation and/or pre-accreditation inspection
was noted to be incapable of delivering the service required of the level/category it is
applying for, shall follow the guidelines stated hereunder:
a. The HCP shall be informed by the concerned PHRO within five (5) days after
receipt of application of its evaluation results or by the surveyors during the pre-
accreditation inspection exit conference on their findings as to deficiencies. Thereafter,
HCP shall comply within the prescribed compliance period (PC 24 s. 2008).
b. f the HCP cannot comply with the deficiencies, they may opt to be downgraded
to a level/category it is compliant with by submitting a Letter of ntent (LO) within the
reglamentary period of compliance, stating therein that they are amenable to such
downgrading. Otherwise, the said application shall be denied by the Corporation.
B. CLOSURE/CEASE AND DESST OPERATON OF AN HCP
1. Any accredited HCP which plans to close its facility or with a Cease and Desist Operation
Order from DOH shall have its accreditation validity terminated on the same day it shall
close/cease and desist to operate. The HCP shall inform the Corporation five (5) days
prior to the planned closure/cease operation. The concerned PhRO shall validate the
same within three (3) days after receipt of such information and shall immediately inform
the Accreditation Department, Central Office to effect necessary changes in the database.
2. For any HCP with active accreditation which, upon monitoring, was noted to have
closed/ceased operation but failed to give information to the Corporation, the concerned
PhRO/SO personnel shall exhaust all efforts to validate within the same day the actual
date of closure/cease operation. mmediately, thereafter, it shall provide the Accreditation
Department Central Office the same information to effect the necessary changes in the
databases.
3. Claims paid for admissions during the closure/cease operations, if any, due to failure of
the hospital to inform the Corporation as specified, shall be charged to its unpaid claims.
f there are no unpaid claims, the same amount shall be collected from the hospital by
the Corporation as re-payment without prejudice for any legal action the Corporation
may take in the future.
4. Any HCP may apply for re-accreditation with the Corporation once it has resumed its
operations.
All previous policies and guidelines and other administrative issuances with provisions
inconsistent herewith are hereby repealed/amended accordingly.
This circular shall take effect after fifteen (15) days from publication in the official
gazette or any newspaper of general circulation.
President and CEO
--o0o--
Single Employer Registration Process (SERP)
Pursuant to Section 15 of the mplementing Rules and Regulations of the National
Health nsurance Act (RA 7875) as Amended by RA 9241 and the Anti-Red Tape Act of
2007 (RA 9485), a Memorandum of Agreement was signed on February 12, 2009 between
the Social Security System (SSS) and Philippine Health nsurance Corporation (PhilHealth).
The purpose of which is to streamline the employer registration processes through the
adoption of Single Employer Registration Process (SERP) using a common Business
Registration Form or BR-1.
Under the SERP an employer who register with SSS shall be considered registered
with PhilHealth. Hence, the employer shall no longer be required to go personally to
PhilHealth for registration.
All employer data received from SSS shall be processed by PhilHealth. The employer
shall be issued of his/her PhilHealth Employer Number (PEN) which serves as the employer
permanent identification number for all transactions with the Corporation.
After initial registration from SSS, the employer shall be required to submit within
thirty (30) days the following post registration requirements:
PhilHealth SSS
1. Accomplished Report of Employee-Members (Er2); 1. Employment Report (SS Form R-1A);
2. Member Data Record for employed member (M1a) 2. Specimen Signature Card (SS Form L-
supporting documents for declaration of dependents: 501;
3. Sketch of business address; and
- Authenticated copy of marriage contract for spouse 4. Validated Miscellaneous Payment Return
who is not working; Form (SS Form R-6) or Special Bank
- Authenticated copy of birth certificate for children Receipt, showing payment for the
below 21 years old; Employer Registration Plate, if not paid
- Authenticated copy of birth certificate for parents upon initial registration.
60 years old and above.
958
President and CEO
--o0o--
Re-naming the Non-Paying Program as Lifetime Member Program
Pursuant to PhilHealth Board Resolution No. 1145 s. 2008, the Non-Paying Program
(NPP) is being renamed as Lifetime Member Program.
The Non-Paying Program is one of the major membership categories of PhilHealth
dedicated to the provision of lifetime health insurance coverage to retirees and pensioners
who are at least 60 years old and have made 120 monthly contributions to PhilHealth or
Medicare. While the NPP comprises only a small percentage of the entire PhilHealth
membership base, the program illustrates the reverence and gratitude that PhilHealth
bestows to Filipinos who have devotedly contributed to the program during their active
years as part of the Philippine working population.
There is a need to underscore the privileges granted to members under this program
to ensure that their privileges are pronounced under a more appropriate name for the
program, thus the Board resolved to rename the Non-Paying Program as Lifetime Member
Program.
All communication materials pertaining to this particular membership category shall
be revised and updated to reflect the change.
All previous administrative issuances with provisions inconsistent herewith are hereby
amended accordingly.
This circular shall take effect immediately.
President and CEO
--o0o--
Date Filed:10 June 2009
PhilHealth Coverage for Confirmed Cases of
Novel Influenza A (H1N1) in Humans
The Novel nfluenza A (H1N1) outbreak is evolving rapidly and affecting different regions.
ts phases include the mild form of influenza like illness (L) to the more severe and
complicated forms. To mitigate the direct medical cost for the medical treatment of
complicated human cases of novel nfluenza A (H1N1), PhilHealth through Board Resolution
Number 1260, s. 2009 approved a new benefit for PhilHealth members and dependents
infected with the nfluenza A (H1N1) virus with complication or co-morbidities requiring
hospitalization.
Availment of the Influenza A (H1N1) is governed by the following rules:
A. INFLUENZA A (H1N1) BENEFIT
1. The benefit is limited to PhilHealth members and dependents with novel swine-origin
influenza A (H1N1) virus infection confirmed by the Department of Health (DOH).
2. Hospitalization benefit for PhilHealth members and dependents is set at a maximum of
75,000 pesos.
3. The benefit is set at a maximum of 150,000 pesos for qualified health care workers
(HCWs), who:
a. Rendered service in a DOH-designated hospital for nfluenza A (H1N1) and
b. Contracted the disease while performing their duties and or caring for an nfluenza
A (H1N1) patient as certified or attested by DOH
z Qualified dependents of HCWs who also contracted the disease shall be
provided the benefit enumerated in Section A.2 of this Circular.
4. The nfluenza A (H1N1) benefit covers payment for the following:
Members/Dependents HCW
Room and Board 1,500 per day 1,500 per day
Max = 10,000 Max = 20,000
Drugs/Medicines
X-ray, Laboratory and Others
-Supplies including personal protective
Equipments (PPE) 50,000 100,000
- Transfer services (Ambulance)
Operating Room Fee
Professional Fee 1,000 per day 1,000 per day
Max = 15,000 Max=30,000
5. The use of operating room complex and other medically-necessary care may also be
covered provided that the total cost shall not exceed the amount of P75,000.00 and
150,000 for HCW.
960
6. The benefit may be availed by all qualified PhilHealth members and dependents including
cases confined abroad.
7. Except for confinements abroad, this benefit covers only cases admitted in hospitals
designated by DOH as referral centers (national, sub-national and satellite) for nfluenza
A (H1N1) and other emerging and re-emerging diseases.
8. Patients admitted in private hospitals may be covered for nfluenza A (H1N1) provided
that confirmatory tests were coordinated with or confirmed by the Research nstitute for
Tropical Medicine (RTM) or with DOH Center for Health Development (DOH-CHD) or
other DOH certified laboratory.
B. EXCLUSIONS
Excluded from this package are the following:
a. Probable and case under observation of nfluenza A (H1N1)
b. All cases of nfluenza A (H1N1) admitted in hospitals not designated by DOH
c. nfluenza-like illnesses (L) and
d. Other seasonal outbreaks of nfluenza by established flu virus (e.g., H1N2, H5N1)
zThe abovementioned exclusions (2.a-2.d ) are covered by the regular hospitalization
benefit of PhilHealth based on the case type of the illness.
e. Systematic Acute Respiratory Syndrome caused by SARS CoV that is covered by the
SARS package (RVS Code 99501)
f. Avian influenza A virus (H5N1) and other subtypes of avian influenza that are covered by
the avian influenza (bird flu) package (RVS Code 99502)
C. BENEFIT AVAILMENT
1. All claims applications for the nfluenza A (H1N1) are required to indicate CD-10 codes
in Claim Form 2. Claim form with no CD-10 codes will not be processed by PhilHealth.
The following are the CD-10 codes:
CODE DESCRIPTION
nfluenza due to identified influenza virus
J10.0 nfluenza with pneumonia, influenza virus identified
J10.1 nfluenza with other respiratory manifestations, influenza virus identified
J10.8 nfluenza with other manifestations, influenza virus identified
2. To facilitate processing of this benefit, the following Relative Value Scale (RVS) Code for
the availment of nfluenza A (H1N1) shall be as follows:
CODE DESCRIPTIVE TERMS RVU
99504 nfluenza A (H1N1) Package; for members and dependents Package
99505 for qualified health care workers Package
3. The following documents are required for filing:
a. PhilHealth Claim Form 1
b. PhilHealth Claim Form 2
c. Member Data Record (MDR)
d. Statement of Account
e. Certification from DOH/RTM and other DOH certified laboratories that patient
is a confirmed nfluenza A (H1N1) case based on adopted criteria (e.g., positive
confirmatory laboratory test - viral culture or PCR), or DOH list of nfluenza A
(H1N1) patients; for patients confined abroad, they are required to submit copy
of confirmatory test for nfluenza A (H1N1) duly certified by the Ministry of Health
or its equivalent.
f. Certification from DOH that hospital is designated as a referral hospital for
nfluenza A (H1N1)
g. For qualified HCWs, a certification from DOH containing the provisions
enumerated in Section .2 of this Circular
h. Result of culture and sensitivity test for confirmed cases with secondary
infections
i. Other supporting documents as may be required by PhilHealth (e.g., proof of
contribution, PhilHealth membership D)
4. n cases where members are required by hospitals to buy drugs, medicines and supplies
or requested to seek out other necessary services (laboratory procedures) from other
facilities, reimbursement to members is allowed, provided that:
a. The facility cannot provide the necessary items and services covered by the
benefit.
b. These items and services are used during confinement.
c. Official receipts and/or other purchase documents are submitted.
d. The reimbursement to members depends on the actual cost of the receipts
submitted but not more than the difference between the maximum benefit and
the facility reimbursement
e. The facility acknowledges that the cost of benefits and services it provided is
less than the maximum benefit by appropriately filling-up item 12 of Part of
Form 2.
5. Current eligibility rules apply to avail of this benefit (e.g ndividually paying members
(PM) should have at least three months of premium payment within the immediate 6
months prior to the month of admission).
962
6. Availment of the nfluenza A (H1N1) Package shall be charged the total number of days
confinement against the 45 day annual limit.
7. n addition, availment of this package is also covered by the rule on single period of
confinement; meaning, only one (1) nfluenza A (H1N1) Package shall be paid within 90
days.
D. EFFECTIVITY
This Circular shall take effect for all admissions starting May 1, 2009.
All other provisions of previous issuances which are not inconsistent with this Circular
President and CEO
PHILIPPINE NATIONAL POLICE
Letter of Instructions 02/09
Unit Crime Periodic Report (UCPER)
1. REFERENCES
a) E.O. 386 entitled Establishing a National Crime nformation System;
b) NAPOLCOM Resolution No. 92-39 entitled Resolution Adopting a New Crime Reporting
Format for the Law Enforcement Pillar;
c) R.A. 6975 dated December 13, 1990;
d) C, PNP nstructions;
e) Local Government Code of 1991;
f) NAPOLCOM Memorandum Circular 94-017; and
g) PGMA nstructions on March 11, 2009.
2. PURPOSE
To promote consistency in the recording of crime incidence, these guidelines prescribe
a uniform procedure for the Philippine National Police in reporting and collecting crime
data including cases reported to other law enforcement agencies involved in the Criminal
Justice System. Further, these data shall be the working basis for policies and programs
on various anti-criminality measures.
3. SITUATION
For the past years, generating statistical crime data on various crimes committed in
the regions/provinces has been a growing concern of the Philippine National Police (PNP).
To address this issue, two (2) mechanisms were in place, such as: The National Crime
Reporting System (NCRS), which is concerned more with the details of the crime, to wit:
victims data, offenders data, among others, while crime statistics gathered through the
Police Regional Office Periodic Report (PROPER) is mainly concerned simply with WHAT
HAPPENED, WHERE, TO WHOM, WHY and the results of investigation.
Crime Statistics provide a mathematical measure of the level or amount of crime that
is prevalent in societies. t usually refers to figures compiled by the Police and similar law
enforcement agencies. However, it is well known that many, if not most crime incidents are
not recorded and reported accordingly. The study conducted by UNDP, RC of D and the
recent survey made by DDM show that there is a need to undertake measures to address
the gaps in the present crime reporting system. There have been some notable lapses in
the present system and collection of relevant data must correspond to the requirements
for planning and analysis purposes.
The PNP, as the premier law enforcement agency, needs an accurate statistical
crime data for both administrative and operational decisions. The data gathered from the
regions/provinces play an important role to the PNPs overall assessment of crime trends
and for determining the pattern of crime activity in the country. f the problem on gathering/
generating the crime situation is not properly addressed, the PNP cannot present an
accurate crime situation of the country.
4. DEFINITION OF TERMS
For purposes of uniformity, the following terms shall be operationally defined and
used:
a. Crimes - include felonies which are violations of the Revised Penal Code and offenses
which are violations of special laws.
b. Crime Volume - the number of crime incidents committed in a given area over a period
of time which include the index and non-index crimes.
CV = Index Crimes + Non-Index Crimes
c. Population - the number of inhabitants in a given area. The figure to be used is the
medium assumption as per the records from the National Statistics Office (NSO).
d. Crime Rate - is the number of crime incidents in a given period of time for every 100,000
inhabitants of an area.
964
Crime Volume
Crime rate = ----------------------
Population/100,000
e. Index Crimes - are crimes which are serious in nature and which occur with sufficient
frequency and regularity such that they can serve as an index to the crime situation. We
consider only the crimes of murder, homicide, physical injury (serious and less seri-
ous), carnapping, cattle rustling, robbery, theft and rape as index crimes.
f. Solved Cases - NAPOLCOM M.C. No. 94-017 provides that:
1) A case shall be considered solved when the following elements concur: The
offender has been identified; there is sufficient evidence to charge him; the
offender has been taken into custody; and the offender has been charged
before the prosecutors office or court of appropriate jurisdiction.
2) A case shall be considered solved when some elements beyond police control
prevent the arrest of the offender, such as when the victim refuses to prosecute
after the offender is identified or the offender dies or absconds.
3) The arrest of one offender can solve several crimes or several offenders may
be arrested in the process of solving one crime.
g. Crime Solution Efficiency - is the percentage of solved cases out of the total number
of crime incidents handled by law enforcement agencies for a given period of time.
Solved Cases
CSE = ---------------------- x 100%
Crime Volume
h. Cleared Case - A case shall be considered cleared when at least one of the offenders
has been identified; there is sufficient evidence to charge him; and, he has been charged
before the prosecutors office or any other court of appropriate jurisdiction. ncluded in this
category are solved cases.
i. Crime Clearance Efficiency - is the percentage of cleared cases out of the total
number of crime incidents handled by law enforcement agencies for a given period of time.
CC
CCE = ------------ x 100%
CV
Where:
CC = Cleared Cases
CV = Crime Volume
CCE = Case Clearance Efficiency
5. EXECUTION
a. Principles and Policies
The following procedures shall prescribe the guidelines in the conduct of Crime
Reporting for purposes of obtaining an accurate data for interpretation:
1) The adoption of a consistent and accurate crime recording standard shall require
the unconditional commitment of the Chiefs of Police, Provincial/District/City and the
Regional Directors. The DM Officers shall continuously ensure that the crime recording
is clearly articulated throughout the organization, and that the service and personal
implications of such a system are understood.
2) All line units should seek to gather, collate and record all crime-related incidents so
as to establish an accurate and timely picture of what is happening locally.
3) The Police Blotter shall serve as the main source of crime data for submission
and shall be the basis for preparing and accomplishing the Unit Periodic Report and
NCRS Form 1.
4) Crime data from other stakeholders and law enforcement agencies shall also be
recorded into the Police Blotter.
5) t is envisioned that all future incidents and crime recording systems should be
fully integrated or at least linked to facilitate tracking and audit between the systems.
6) The Chief of Police must ensure that crime data are gathered from all sources,
such as: Barangay, NB, PDEA, BFAR, DENR, DSWD, BUCUS, B and other agencies
with law enforcement functions in the locality.
7) Unit Commanders shall appoint a Crime Register who shall be responsible in
consolidating and maintaining crime data files of each unit to ensure consistency and
continuity.
8) The Chief of Police is primarily responsible for the maintenance of accurate crime
data. Accuracy and integrity of crime recording processes must be ensured by the
Chief of nvestigation Section and Crime Registrar.
b. Procedures
1) Recording
a) Incident Reports
As a general rule, all crime incidents, whether reported by the victims, witnesses
or third parties must be recorded in the police blotter, even under the following
circumstances:
a.1) When the offender is ill and is unlikely to recover or is too senile or
too mentally disturbed for proceedings to take place;
966
a.2) When the complainant or an essential witness is dead and the
proceedings cannot be pursued;
a.3) When the victim or an essential witness refuses, or is permanently
unable to stand as a witness; and,
a.4) The victim or complainant or witness are minors.
b) Reporting Jurisdiction
The police unit with territorial jurisdiction where the crime was committed shall
have the primary responsibility to record and report the same. f a continuing
crime is committed in various areas of responsibilities, it should be recorded
and reported as a single crime by the unit taking cognizance of the crime.
2) Counting Mechanism
The following rules shall apply in the counting of crime incidents:
a) Murder cases (Art. 248, RPC) shall include those that were consummated
only. nfanticide (Art 255, RPC) and Parricide (Art 246 RPC) cases shall be
counted as murder cases. Killings perpetrated by insurgents and/or terrorists
must be included. Attempted and Frustrated cases of Murder, nfanticide and
Parricide are counted as physical injury cases if indeed the victim(s) was injured.
Otherwise, these cases shall be counted as non-index crimes.
b) Homicide - (Art. 249, RPC). Similarly, only consummated homicide cases
are to be counted. Attempted and Frustrated homicide cases which result to
injuries to the victim(s) are counted as physical injury cases. Otherwise, these
cases shall be counted as non-index crimes.
c) Serious and Less Serious Physical Injuries - (Arts. 263, 264 and 265, RPC).
n addition to actual physical injury cases, incidents perpetrated by/or involving
insurgents/terrorists which resulted to the wounding of the victim(s) must also
be counted.
d) Robbery - (Art. 293, RPC). Only consummated robbery cases and robbery
in band are to be counted.
e) Carnapping - (RA No. 6539). Only consummated carnapping cases are to
be recorded.
f) Cattle Rustling - (PD No. 533). Only consummated cases shall be recorded.
g) Theft - (Art. 308, RPC). Only consummated theft cases are to be counted.
h) Rape - (Art. 335, RPC and RA 8353). Only consummated and statutory
rapes shall be included.
i) Suicide shall not be counted as a crime.
j) For compound and complex crimes, only the most serious offense should
be counted. (Principal crime rule)
k) The reported incident shall be counted as a crime after validation by the
investigation officer that there is such an incident constituting a crime.
l) nfractions involving violations of provincial/city/municipal and barangay
ordinances shall not be counted.
m) Violations of the Revised Penal Code and Special laws which are to be
settled at the Barangay (Under PD 1508 as amended by Local Government
Code of 1991 and Supreme Court Administrative Circular No. 14-93) shall be
recorded separately.
n) Crime ncident/s under RA 9344 or the Juvenile Justice Act where absolute
confidentiality of the parties and the documents are provided shall be recorded.
Data from local DSWD office shall be collated.
o) For purposes of generating separate statistics of all offenses arising from
violations of traffic rules and regulations, the Traffic nvestigation Section/Division
shall assume responsibility in recording all traffic offenses and submit the same
to the Crime Registrar for data integration in the crime statistics.
3) Crime Registrar (CR)
To ensure that a consistent crime recording standard is maintained within
the PNP, each unit shall appoint a Crime Registrar. The registrar shall ensure
the proper accomplishment of NCRS Form-1 in accordance to NAPOLCOM
Resolution 92-39.
4) What to Report/Submit
All PNP Units must submit their Unit Crime Periodic Report (UCPER) with
corresponding analysis, interpretation and complete attachments as required
in the original PROPER. The said report shall be accomplished by the reporting
unit as stated below to be submitted on the dates indicated in these guidelines:
a) City/Municipal Police Stations
a.1. All City/Municipal Police Stations (CPS/MPS) shall submit the Unit
Crime Periodic Report (UCPER - CPS/MPS) to the PPO/NCR District every
month.
a.2. The Unit shall accomplish the List of Crime ncidents Referred/Processed
by Reporting PNP Unit/Office on a daily basis. (Tab A)
a.3. The said list shall be tabulated/consolidated in order to accomplish
the table on Statistics on Crime ncidents (Tab B) which shall be included in the
monthly Unit Crime Periodic Report.
968
a.4. The records of crime incidents from other agencies, such as: DSWD,
DLG (Brgy Cases), Traffic Office and other law enforcement agencies shall be
collected monthly and incorporated in the summary of incidents and form part
of the Unit Crime Periodic Report.
a.5. The report shall contain a summary and corresponding interpretation
and analysis of all tables included in its annexes.
a.6. The report submitted to the PPO/NCR District must indicate the
signature of Unit Crime Registrar, the Unit nvestigation Chief and Chief of City/
Municipal Police Station.
b) Police Provincial/NCR Districts/City Police Offices
b.1. All Police Provincial Offices/NCR Districts/City Police Offices shall
submit the Unit Crime Periodic Report (UCPER - PPOs/NCR Districts/CPO) to
the Police Regional Office on a monthly basis.
b.2. The Police Provincial Office/NCR District/City Police Officer shall
consolidate Statistics on Crime ncidents from all City/Municipal Police Stations
under his AOR.
b.3. The Police Provincial Office/NCR District/City Police Office shall submit
to the Police Regional Office the consolidated report containing data from all
units under its jurisdiction and crime data gathered from the provincial/district/
city offices with similar jurisdiction of the following agencies: PDEA, NB, LTO,
BFAR, DENR, BOC and other agencies with law enforcement functions in the
locality. (Tab C)
b.4. The report shall contain a summary and corresponding interpretation
and analysis of all tables included in its annexes.
b.5. The report submitted by the Police Provincial Office/NCR District/City
Police Office must indicate the signature of Unit Crime Registrar, the Unit
nvestigation Chief and the Provincial/NCR District/City Director.
c) Police Regional Offices
c.1. All Police Regional Offices (PROs) shall submit the Unit Periodic Report
(UCPER - PRO) to DDM on a monthly basis.
c.2. The report shall be in hard and soft copies containing a summary and
corresponding interpretation and analysis of all tables included in its annexes.
c.3. The report submitted by the PRO must indicate the signature of Unit
Crime Registrar, the Chief, RDMD and the Regional Director.
d. Concerned NSUs
d.1. Concerned National Support Units (NSUs) shall submit the Unit Crime
Periodic Report (UCPER-NSU) to DDM every month.
d.2. The report shall be in hard and soft copies containing a summary and
corresponding interpretation and analysis of all tables included in its annexes.
d.3 The report submitted by the NSUs must indicate the signature of Unit
Crime Registrar, the AD for nvestigation and the Unit Director.
5. When to Report/Submit
a. CPS/MPS to PPO/NCR District = 1
st
day of every month
b. PPO/NCR District/CPO to PRO = 3
rd
day of every month
c. PRO/NSU to DDM = 5
th
day of every month
6. Flow of Reports (Annex A)*
6. TASKS
a. Directorate for Investigation and Detective Management (DIDM)
1. Assume Directorial Staff responsibility for the efficient and effective implementation
of this LO.
2. Evaluate the crime reporting performance of all unit commanders and institute
appropriate measures to ensure religious compliance.
3. Responsible for the collection and interpretation of crime data.
4. Prepare periodic assessment of crimes for the command and other law enforcement
agencies concerned.
b. Directorate for Operations (DO)
1. Responsible in the coordination/liaison with other law enforcement agencies
(NALECC) to make available to Police Units crime incidents that have come to their
attention/initiated operations.
2. Assist in the implementation of this LO.
c. Directorate for Comptrollership (DC)
Provide financial support for the smooth implementation of this LO.
d. Directorate for Police Community Relations (DPCR)
970
1. Responsible in the information dissemination of these policy guidelines to other
stakeholders and agencies with law enforcement functions.
2. Establish rapport with other stakeholders for their cooperation in the submission
of the required crime data.
e. Regional Directors (thru RIDMDs)
1. Compile UCPER of Provincial/NCR District/City Offices and conduct crime trend
analysis at the Regional Level.
2. Liaise with DDM on crime data required at the regional level.
3. Monitor compliance and follow-up lower units.
4. Ensure that the report submitted is reflective of the actual, accurate and true
crime situation in his area of responsibility.
5. Designate a Crime Registrar who shall be responsible for the maintenance and
consolidation of UCPER from lower units and other enforcement agencies operating at
the regional level.
f. Provincial/NCR District/City Directors (Thru PIDMBs/DIDMBs)
1. Collect and compile data from the City/Municipal Stations.
2. Conduct crime trend analysis for use at the provincial/district/city level.
3. Liaise with RDMDs for crime data required at the provincial/district/city level.
4. Ensure that the report submitted is reflective of the actual, accurate and true
crime situation in his area of responsibility.
consolidation of UCPER from the lower units and other enforcement agencies operating
at the provincial/district/city level.
6. Monitor compliance of lower units.
g. Chiefs of Police/NCR Station Commanders
1. Responsible in the accomplishment of the Unit Crime Periodic Report in accordance
to the attached forms to be submitted to the PD/NCR DD (Attn: C, PDMB/C, DDMB).
The data submitted must include in its recapitulation the following: (See attached
format)
a) DSWD (RA 7610 and RA 9144);
b) DENR;
c) DLG (Crimes referred/resolved by the Barangay);
d) BFAR;
e) PDEA;
f) Traffic Section; and
g) Others (NB, B, BUCUS, Coast Guard, OMB etc.)
2. Gather relevant data from other agencies operating in their respective area of
responsibility.
3. Ensure that the Duty Desk Officers shall submit the Daily List of Crime ncidents
Referred/Processed by the Reporting Unit containing all the incidents recorded in the
Police Blotter to be submitted to the Station Crime Registrar. (See attached report for
Tab A)*
consolidation of crime data from the lower units and other enforcement agencies in the
city/municipal level.
5. Certify as to the correctness and accuracy of the Unit Crime Periodic Report and
the data contained therein.
h. Crime Registrar
1. Maintain files of all crime data including data gathered from other agencies
operating in their respective area of responsibility.
2. Exercise confidentiality and integrity in handling and storage of all crime data.
3. Ensure proper turn over of data and documents.
4. Make an accurate periodic statistical and graphical interpretation of crime data.
5. Shall consolidate the accomplished daily List of Crime ncidents Report submitted
by the Duty Desk Officer.
6. Certify as to the correctness and accuracy of the data contained in the Unit Crime
Periodic Report.
7. ADMINISTRATIVE SANCTIONS
a. mmediate Supervisors and/or Heads of Offices who fail or refuse to take action on
the prescribed guidelines shall be liable for NEGLECT OF DUTY in accordance with
NAPOLCOM MEMORANDUM CRCULAR 2007-001.
b. Deliberate or intentional manipulation of data such as: under counting of crime
data, false entry or any other acts which shall not reflect the accurate or true crime
situation shall constitute SEROUS RREGULARTY N THE PERFORMANCE OF DUTY,
in accordance with NAPOLCOM MEMORANDUM CRCULAR 2007-001.
972
8. EFFECTIVITY
These guidelines shall take effect fifteen days upon filing at the UP Law Center.
(SGD.) JESUS A VERZOSA, CEO V
Police Director General
Chief, PNP
--o0o--
Rules and Procedures in the Selection of PNP Personnel for Secondment,
Detail to International Organizations, Peacekeeping Missions, Amending
PNP Memo Circular No. 2007-012, and for Other Purposes
1. REFERENCES:
a. PNP Memorandum Circular No. 2007-012 dated October 10, 2007 entitled Rules and
Procedures in the Selection of PNP Personnel for Secondment and Detail to
International Organization and Peacekeeping Missions;
b. Section 6c Rule , Civil Service Commission Memorandum Circular No. 40 dated
December 14, 1998 re Revised Omnibus Rules on Appointments and Other Personnel
Actions;
c. PNP Circular No. 2008-018 dated December 26, 2008, entitled: Prescribing the
Policies, Guidelines and Procedures on Foreign Travel of PNP Personnel, amending
PNP Memorandum Circular No. 2002-017 dated November 16, 2002, entitled: Foreign
Travel;
d. PNP Circular No. 2007-004 dated May 8, 2007, entitled Revised Guidelines and
Procedures on Personnel Action on Detail of Philippine National Police (PNP) Uniformed
Personnel to other Government Offices/Agencies;
e. PNP Memorandum Circular No. 2002-014 dated October 5, 2002, entitled: Policies,
Guidelines, and Procedures on the Processing of Personnel Applying for Secondment
with other Government Agencies;
f. PNP Memorandum Circular No. 2006-010 dated June 14, 2006, entitled: Assignment
with PNP Training Service and Other Similar Institutions of PNP Personnel Returning
from the United Nations Missions and those who have undergone more than one (1)
month of Foreign Schooling;
g. Executive Order No. 97 dated April 23, 2002, entitled Approving and Adopting a Policy
Framework and Guidelines for Philippine Participation in UN Peacekeeping Operations;
h. Policy Framework and Guidelines for Philippine Participation in UN Peace Keeping
Operations;
i. United Nations Civilian Police Handbook; and
j. United Nations Selection Assistance Team (UNSAT) Guidelines dated January 1, 2005.
2. PURPOSE AND SCOPE:
This Circular prescribes the rules and procedures governing the selection and
deployment/detail of PNP personnel to United Nations and other nternational Peacekeeping
Missions.
3. POLICY:
a. The deployment/detail to the United Nations and other nternational Peacekeeping
Missions/Organizations is not a matter of right but only a privilege bestowed upon qualified
PNP personnel.
b. Only vacancies officially referred by the United Nations and other nternational Organi-
zations shall be processed by the PNP. ndividual PNP personnel are prohibited from
applying directly to any foreign agencies or organization that published such vacancies.
4. OBJECTIVES:
a. To provide a fair and objective procedure that is based on merit and fitness in the
selection of personnel for secondment to international organizations, deployment to UN
peacekeeping missions and for other purposes;
b. To give qualified PNP personnel equal opportunity to be selected or nominated to any
secondment post to international organizations or deployment to UN peacekeeping mis-
sions; and
c. To streamline the deliberation process and ensure that the results of the selection and
screening process are beyond reproach.
5. DEFINITION OF TERMS:
a. Active Police Service - refers to the actual performance of police duties.
b. Personnel - refers to active PNP uniformed personnel.
c. Deferment - refers to the act of postponing the deployment of PNP personnel to the
mission area.
d. Detail - refers to the movement of an employee from one department or agency to
another which is temporary in nature and which does not involve a reduction in rank, status
or salary and does not require the issuance of another appointment.
e. Secondment - refers to the movement of an employee from one department or agency to
another which is temporary in nature and which may or may not require issuance of an
appointment but may either involve reduction or increase in compensation.
974
f. Peacekeeping - refers to the United Nations presence in the field (normally involving
military and civilian personnel), with the consent of the parties, to implement or monitor
the implementation of arrangements relating to the control of conflicts and their resolution
or to ensure the safe delivery of humanitarian relief.
g. United Nations Department of Peacekeeping Operations (UNDPKO) - refers to the
department in the United Nations Headquarters Secretariat directly in charge of United
Nations peacekeeping operations.
h. End of Mission (EOM) - refers to the date the tour of duty of deployed PNP personnel
in any UN Mission ends which is normally one (1) year from the actual arrival in the
mission area.
i. Mission Area - refers to the country and other areas designated by the UN where the
peacekeeping operation is being undertaken.
j. United Nations Standby Arrangement System (UNSAS) - refers to the system of
establishing a pool of personnel in a UN member country for deployment to mission
areas as mandated by UN.
k. United Nations Selection Assistance Team (UNSAT) - refers to the group of personnel
selected by UNDPKO to conduct qualifying examination to police officers being offered
by a member state for deployment to any UN Mission.
l. UNSAT Examination - refers to the examination administered by the UN Selection
Assistance Team to determine competencies of candidates on English communication,
vehicle driving and firearm proficiency.
m. UN Mission Qualifying Examination - refers to the qualifying examination administered
by the PNP as pre-selection screening of PNP personnel for UNSAT examination.
n. UNSAS Eligible - refers to the PNP personnel who passed the UNSAT in the Philippines,
entitling such member eligibility for deployment within a period of eighteen (18) months
commencing from the last day of the test, as certified by members of the UNSAT who
administered the same.
o. Repatriation - refers to the act of sending a PNP personnel back to the Philippines
from a UN mission before his/her scheduled EOM either on the initiative of the UN or
the PNP through the Contingent Commander, for failure to meet the UN standards in
the mission area, disciplinary reason or due to compassionate and medical grounds.
The cost of which if not covered by UN shall be borne by the concerned PNP member.
p. Contingent Commander - refers to a PNP Commissioned Officer designated by the
PNP to exercise command and control and overall responsibility for the conduct,
welfare and well-being of all members of the PNP contingent in the mission area
consistent with UN rules, policies and regulations.
q. Committee - refers to the PNP Selection Committee for UN Missions mandated to
conduct screening, selection and deliberation of PNP personnel for secondment or
detail to international organizations and peacekeeping missions.
r. Deployment Tracking - refers to the order issued by the UN Department of Peacekeeping
Operations authorizing the deployment of police officer/individual to UN mission area indi-
cating the officer/s expected date of arrival and the Tour of Duty (TOD).
s. Extension - refers to the lengthening of the tour of duty beyond the period stipulated in
the original agreement or contract of secondment or deployment.
t. Default - refers to the failure to submit/comply with the documentary requirements and/
or appear by an applicant during the processing for deployment.
6. QUALIFICATIONS FOR DEPLOYMENT TO UN PEACEKEEPING MISSIONS:
Personnel applying for deployment to UN peacekeeping missions shall undergo the
PNP Screening Process to ensure that they satisfy the following minimum standards and
qualifications:
a. Applicant must be an UNSAS eligible;
b. Police Commissioned Officer (PCO) applicant must have a rank of at least Police Se-
nior nspector upon filing of application and Police Non-Commissioned Officer (PNCO)
applicant must have a rank of at least Police Officer 3;
c. Applicant must have attained at least five (5) years of active police service (excluding
cadetship and Field Training Program (FTP) for Lateral Entry Officers and new PO1s), as
of the first day of the UNSAT examination;
d. Applicant must be appointed in permanent status in his/her present rank;
e. Applicant must neither be less than twenty-five (25) years old nor more than fifty-three
(53) years old upon actual deployment;
An applicant shall be considered to be twenty-five (25) years of age on his/her twenty-
fifth (25
th
) birth date and shall be considered more than fifty-three (53) years of age on his
fifty-fourth (54
th
) birth date;
f. Applicant must have at least one (1) year of recent driving experience and must be in
possession of a valid Non-Professional or Professional national or international driving
license for at least one (1) year as of the first day of the UNSAT examination;
g. Applicant must be recommended by his/her Unit Commander (Command Group, D-Staff
Directors, RDs of PROs, NSUs Directors and District Directors);
h. Applicant must have Performance Evaluation Rating (PER) of at least Very Satisfactory
(VS) for two (2) consecutive semestral rating periods immediately preceding the UNSAT
examination;
i. Applicant must not have been ever convicted of criminal or administrative offense; has no
pending case either administrative/criminal in any body/tribunal or court; a witness to any
criminal or administrative case, especially those covered by RA 9165; or a summary hear-
ing officer with unresolved cases;
976
j. Applicant must not have been repatriated from any previous UN Mission for disciplinary
reasons;
k. Applicant must have knowledge on basic computer operations (e.g., Word, Excel,
Powerpoint, e-mail and nternet);
l. Applicant must have passed the latest Physical Fitness Test (PFT) conducted by DHRDD
as well as Medical, Dental and Neuro-Psychiatric Examination; and
m. Applicant must first be cleared by Directorate for Logistics of any firearm accountability
prior to his/her mission area.
7. PRIORITY FOR DEPLOYMENT:
Priority for deployment to mission area is as follows:
a. 1
st
Priority - PNP personnel who passed the UNSAT Examination but without previous
UN Mission deployment. The ranking shall be based on the rating obtained in the UNSAT
examination.
b. 2
nd
Priority - PNP personnel who passed the UNSAT Examination but with previous UN
Mission deployment.
c. The police rank, length of service and educational attainment shall be the criteria to be
considered in breaking equal rating. Those with fewer missions shall have priority over
those with more missions.
8. DEFAULT:
Personnel after having been nominated for deployment shall be considered in default
and will be removed from the priority list under the following circumstances:
a. Non-submission of documentary requirements to the Secretariat on specified date.
b. Failure to report for processing for deployment.
Personnel in default due to justifiable reasons can be re-nominated for deployment to
the same mission area as last priority.
9. DEFERMENT:
a. Deferment shall only be allowed once and due to health reasons duly certified by the
Director, Health Service.
b. Personnel deferred due to justifiable reasons cited above can be renominated for de-
ployment to the same mission area as last priority.
c. Request for deferment shall be officially made in writing to serve as documentary
evidence if any conflict arises.
10. OTHER REQUIREMENTS:
a. Prior to deployment, all personnel shall execute an undertaking stating that he/she:
1) s not a witness to any ongoing criminal or administrative case, especially those
covered by RA 9165; or a summary hearing officer with unresolved cases;
2) Shall observe exemplary behavior and discipline while in the mission area;
3) Shall abide by the PNP Code of Ethics and Professional Conduct;
4) Shall strive to achieve outstanding accomplishment in the performance of assigned
tasks in order to bring honor and prestige to the Philippines;
5) Shall never commit any act/s or omission/s that will cause dishonor or disgrace
to the PNP;
6) Shall strictly follow all the pertinent Rules and Regulations in any Mission Area;
and
7) Shall defray expenses for travel to the Philippines from the area in case of
repatriation due to disciplinary reasons.
b. nfraction of the oath of undertaking shall be a ground for repatriation, without prejudice
to administrative sanctions against erring personnel.
c. An UNSAS eligible who has no mission experience shall undergo a Pre-Departure
Orientation Seminar (PDOS) conducted by the PNP Training Service.
11. SECONDMENT:
a. All applications for secondment to international organization shall be deliberated by the
PNP Selection Committee for UN Mission.
b. Approving Authority:
1) Chief PNP-not more than one (1) year;
2) Chairman, Civil Service Commission - more than one (1) year but not to
exceed the maximum period of three (3) years except as otherwise provided for
by law or as required under bilateral /multilateral agreements; and
c. Personnel shall be allowed one (1) secondment for a maximum period of three (3) years.
12. RESTRICTIONS/OTHER CONSIDERATIONS:
a. Deployment to UN Missions - Personnel shall be allowed a maximum of three (3)
separate UN deployments to an international peacekeeping mission, with a maximum of
one (1) year tour of duty for each deployment or detail.
978
1) Provided further, that for purposes of applying the three-mission limit,
extension of the mission for more than one (1) month shall be considered as
one (1) mission as well as missions which had been considered by the UN as
already completed.
2) Provided furthermore, that the three (3) mission limit shall be reckoned on
the first PNP deployment in UN Mission in Cambodia.
3) n no case shall the tour of duty be extended except for technical reasons or
fortuitous events as provided by UN rules and regulations.
b. Personnel currently deployed to any international peacekeeping mission shall not be
eligible for nomination to any secondment post and vice versa. Likewise, those personnel
who have been nominated for deployment or secondment shall not be eligible for nomina-
tion to another post.
c. Personnel returning from UN peacekeeping mission/secondment shall be required to
render service of at least one (1) year in any PNP unit before he/she can be considered for
next deployment.
d. Personnel appointed into any of the PNP Technical Services shall not be deployed to an
international peacekeeping mission except when their expertise is specifically requested.
e. Third level officers shall not be allowed to be deployed to any UN peacekeeping mission
or to any UNDPKO Secondment Post except, for the positions of Deputy Police Commis-
sioner or higher. Provided, however, that those officers who passed the UNSAT examina-
tion prior to the approval or effectivity of this Circular shall be exempted from this provision.
f. The composition of the PNP contingent for detail to international peacekeeping missions
shall be 40% PCOs and 60% PNCOs, whenever practicable.
g. The total number of personnel deployed to all UN peacekeeping missions shall not
exceed 0.5% of the actual strength of uniformed personnel of the Philippine National Po-
lice as of the end of calendar year immediately preceding the time of deployment.
h. Prior to departure to the mission area, all PNP personnel must have the necessary
travel authority issued by proper authorities.
i. Personnel returning from mission shall be allowed to take the UNSAT examination only
after six (6) months from the date of latest End of Mission.
j. All personnel deployed in UN mission shall undergo Medical and Psychological Evalua-
tions in the mission area one (1) month prior to the end of mission and shall submit the
medical examination result to the PNP Health Service for evaluation.
k. The Chief, PNP may upon the recommendation of the Contingent Commander, cause
the immediate repatriation of any member of a contingent who commits act/s inimical
to the best interest of the PNP and the country in general.
13. THE PNP SELECTION COMMITTEE FOR UN MISSIONS:
a. The PNP Selection Committee for UN Missions shall deliberate, select and recom-
mend on the detail of PNP personnel with the United Nations and other international peace-
keeping missions. t is composed of the following:
1) TDPL - Chairman
2) DDPRM - Vice-Chairman
3) DD - Member
4) DDL - Member
5) DDC - Member
6) DDDM - Member
7) DDO - Member
8) DDHRDD - Member
9) DDPCR - Member
10) DEP LS - Member
11) CESPO - Member
12) C, WCPC - Member
13) D, HS - Member
b. The Committee shall adopt and implement guidelines and other measures for the selec-
tion and detail of personnel to UN Missions.
c. The Chairman, PNP Selection Committee shall designate the PNP Contingent Com-
mander in every mission area.
d. The PNP Selection Committee shall be supported by a Secretariat headed by the Chief,
United Nations Peacekeeping Operations Center (UNPOC), Directorate for Plans.
e. The Secretariat shall have the following responsibilities:
1) To ensure the proper implementation of this circular as well as resolutions of
the Committee
2) To coordinate with other offices, departments and international organizations
matters pertaining to international peacekeeping operations;
3) To maintain and update the PNP UN Stand-by List;
4) To prepare the necessary documents pertaining to secondment and detail
of PNP personnel to international peacekeeping operations;
5) To ensure the timely dissemination of announced vacancies in the seconded
posts of international organizations;
6) To accept and process application of personnel for secondment to the United
Nations and other international bodies; and
980
7) To perform other tasks as may be required by the Committee and this circular.
f. The PNP Selection Committee Secretariat shall assist the UNSAT in the conduct of
examination in the country.
14. FUNDING:
All expenses in connection with the mandate of the Committee shall be considered
as a priority Command Mandatory Activity and shall be immediately supported by the
PNP.
15. PENAL CLAUSE:
Any PNP personnel who violates the provisions of this Circular shall be held
administratively liable for GRAVE MSCONDUCT and shall be penalized accordingly.
16. REPEALING CLAUSE:
All existing policies, rules and regulations inconsistent herewith are hereby modified
or repealed accordingly.
17. EFFECTIVITY:
This Circular shall take effect after fifteen (15) days from the filing of a copy hereof at
the University of the Philippines Law Center in consonance with Sections 3 and 4 of
Chapter 2, Book V of Executive Order No. 292, otherwise known as The Revised
Administrative Code of 1987, as amended.
Chief, PNP
--o0o--
Guidelines on the Processing of Request for Laboratory
Examination on Seized/Confiscated Dangerous Drugs Controlled
Precursors and Essential Chemicals Instruments/Paraphernalia,
Laboratory Equipment and Drug Testing on Arrested Offenders
1. REFERENCES
a. LO Kontra Droga Bravo dtd February 18, 2009;
b. RA 9165 (The Comprehensive Drugs Act of 2002);
c. PNP Anti-Corruption Plan; and
d. LO Patnubay
2. BACKGROUND/RATIONALE
PNP records show an alarming number of unclaimed laboratory reports of drug
cases in different PNP Crime Laboratory Offices for the period CY 2005-2008.
n the investigation of cases involving violation of the anti-drug law, laboratory reports
are substantial documents for the filing of criminal charges in court as these scientifically
prove the presence of dangerous drugs on seized/confiscated items or on the specimen
from the arrested suspects.
Aside from the wasted efforts and resources for laboratory examination, these
unclaimed laboratory reports create a negative impression on the part of the concerned
PNP personnel in pursuing criminal cases against drug suspects, which is contrary to the
internal cleansing effort of the PNP to prevent irregularities and ensure transparent anti-
drug operations.
There is therefore a need to prescribe guidelines in the submission of request for the
conduct of laboratory examination on seized drugs and drug testing on arrested suspects
from the PNPCL to ensure accountability from the requesting party.
a. Dangerous Drugs - ncludes those listed in the Schedules annexed to the Single
Convention of Narcotics drugs, as amended by the 1972 protocol, and in the schedules
annexed to the 1971 Single Convention on Psychotropic Substances as enumerated in
the annex which is an integral part of RA 9165 otherwise known as the Comprehensive
Drugs Act of 2002.
b. Drug-related Arrest - Apprehension made for violation of RA 9165 and other pertinent
drug laws as well as other crimes committed under the influence of dangerous drugs.
c. Clandestine Laboratory - Any facility used for the illegal manufacture of any dangerous
and/or controlled precursors and essential chemicals.
d. Controlled Precursor and Essential Chemicals (CPECs) - ncludes those listed in the
Tables and of the 1988 UN Convention Against llicit Traffic in Narcotic Drugs and
Psychotropic Substances as enumerated in the annex which is an integral part of RA 9165
otherwise known as the Comprehensive Drugs Act of 2002.
e. Drug Abuser - A person who uses or administers to himself or allows others to admin-
ister dangerous drugs to himself without medical approval.
f. Mandatory Drug Test - Compulsory submission of a suspect for drug testing as re-
quired by RA 9165.
g. Screening Test - A rapid drug test performed to establish potential or presumptive
positive result.
h. Confirmatory Test - An analytical test using a device, tool or equipment with a different
chemical or physical principle that is more specific which will validate and confirm the
result of the screening test.
982
i. Specimen - Refers to the sample that is submitted for laboratory examination.
j. Crime Laboratory - Provides scientific investigation services and other technical sup-
port to the PNP offices and other agencies through fieldwork, scene of crime operations,
forensic laboratory service, criminalistics training and research.
k. Laboratory Equipment - The paraphernalia, apparatus, materials or appliances when
used, intended for use or designed for use in the manufacture of any dangerous drug and/
or controlled precursor and essential chemical, such as reaction vessels, preparative/
purifying equipment, fermentors, separatory funnels, flasks, heating mantles, gas genera-
tors, or their substitutes.
l. Laboratory Report - Refers to the result of the test conducted by CL which determines
the presence or absence of dangerous drugs in a specimen.
m. Instrument - Any thing that is used in or intended to be used in any manner in the
commission of illegal drug trafficking or related offenses.
4. PURPOSE AND OBJECTIVE
a. To provide systems and procedures on the following:
1) Submission of request to CL for the conduct of laboratory examination on seized/
confiscated dangerous drugs, controlled precursors and essential chemicals,
instruments/paraphernalia, laboratory equipment and drug testing of arrested suspect;
and
2) ssuance and/or release of results of the laboratory examination to the requesting
party.
b. To promote and ensure full accountability to PNP personnel who shall fail to claim
laboratory reports on a specified period or shall engage in improper and unlawful practices.
5. IMPLEMENTING GUIDELINES & POLICIES
a. When submitting a request to CL for laboratory examination on seized/confiscated
drugs, other substances and related items; and conduct of drug testing on arrested sus-
pect, the following information shall be indicated: (See attached formats as Annexes A &
B*)
1) Name/s and other personal circumstances of the suspect/s;
2) Purpose of examination;
3) Type of operation conducted;
4) Date, time & place of arrest;
5) Name and contact number of the requesting party;
6) Type & quantity of seized evidence; and
7) Other relevant information
b. The requesting party shall claim the certification of laboratory examination results from
CL within the following period reckoned from the time of the submission of request for
examination:
1) Within 24 hours for the seized/confiscated drugs, other substances and related
items. However, if the volume of seized/confiscated drugs does not allow the completion
of laboratory examination within this time frame, a partial laboratory report shall be
provisionally issued stating therein the quantities of the dangerous drugs still to be
examined by the forensic laboratory; provided, however, that a final certification be
issued on the completed laboratory examination on the same within the next 24 hours;
2) Within 24 hours for the result of the screening test on the specimen of apprehended/
arrested offenders;
3) Within 1 week for the result of the confirmatory test on the specimen of apprehended/
arrested offenders upon the issuance of the result of screening test subject to the
availability of equipment, chemical reagents and standards; and
4) Within 30 days in case of unknown chemicals and/or substances.
c. n case of non-retrieval of laboratory results within the prescribed period, the chief of the
concerned CL Office shall immediately notify the following in writing, through telephone
and other practical means of communication, viz:
1) COP/Station Commander and/or next higher level commander in case the
requesting party is/are member/s of a municipal/component city police station;
2) District Director, Provincial Director or City Director in case the requesting party
is/are member/s of NCRPO District, Provincial Police Office or Highly Urbanized City
Police Office.
3) Regional Director in case the requesting party is/are member/s of offices under
the Police Regional Headquarters and NSUs that are under the operational control of
the RD; and
4) Task Force Commander,ADSOTF copy furnished DDM (Attn: PCD) in case the
requesting party is/are members of NHQ-based operating units or task forces.
d. Upon receipt of the report from CL, if it is positive, the respondent personnel must be
required by the unit commander concerned to submit an nquest Recommendation on the
case. n case of non-compliance, the disciplinary authority shall immediately conduct
administrative investigation on the failure of the personnel who requested the laboratory
examination pursuant to NAPOLCOM MC 2007-001, RA 9165 and other existing rules and
regulations.
e. The immediate superior of the respondent personnel shall likewise be subjected to
investigation to determine his liability under the principle of command responsibility; and
f. The conduct of administrative aspect of the case is without prejudice to the filing of
criminal case under RA 9165 and other criminal laws against the respondent personnel
984
and his superior officer if they are found to have been engaged in improper or unlawful
activities (i.e. Bungling of drug cases).
6. SUPERVISION AND REPORTORIAL REQUIREMENTS
a. The Task Force Commander, ADSOTF shall be the overall supervisor in the implemen-
tation of this circular while RDs/Task Group Commander, RADSOTGs shall be the super-
visor in their respective areas.
b. For purposes of validation and monitoring, the NHQCL and RCLOs shall submit to
ADSOTF and RADSOTGs respectively a consolidated monthly report on all unclaimed
laboratory report every 5
th
day of the month starting June 2009.
c. The conduct of pre-charge evaluation or summary dismissal proceedings on cases
regarding failure to claim laboratory reports on a specified period and/or other related
misconduct shall be conducted and supervised by DDM and DPRM respectively and
equivalent offices in the PROs & NSUs.
d. The DDM and DPRM shall submit monthly progress of the resolution of cases to Task
Force Commander, ADSOTF every 5th day of the month starting June 2009 for monitoring,
consolidation and subsequent submission of report to C, PNP.
7. EFFECTIVITY
This circular shall effect upon its approval. All existing circulars, directives, and other
issuances whose provisions are contrary to or inconsistent with this circular are hereby
rescinded or modified accordingly, but all other circulars and directives not in conflict with
this circular are still in effect.
Chief, PNP
PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRA-
TION
Advisory No. 01, s. 2009
Cross Country Employment Among Overseas Filipino
Workers While Still Onsite
The Philippine Overseas Labor Office in Korea has reported a growing trend on cross
country employment among Overseas Filipino workers while still onsite. This is prevalent
among skilled workers whose term of employment in Korea have been completed and who
would like to leave for other destinations preferably Canada and Australia directly from their
current site of employment.
The DOLE Mobile Reintegration Team dispatched to Korea last February to render
assistance that may be needed by the displaced workers also reported similar cases of
skilled workers being affected by the economic slowdown and were officially released by
their employers but would not want to home. However, they have successfully obtained
their labor market opinions (LMOs) from employers in Canada and the subsequent visa
approval by the Canadian Embassy in Korea and would rather opt to proceed to Canada to
serve another contract term with their employers.
As this mode of irregular migration would prevent these workers from being able to
process their employment documents as OFWs and would not entitle them to welfare
benefits enjoyed by regular workers, they should be encouraged to register as OFW and
enjoy the protection and benefits of the government provided to regular OFWs.
Registration may be done by the OFW thru the following:
1. Voluntary registration with the Overseas Workers Welfare Administration; or
2. Notice to the POLO/Embassy/Consulate at the original jobsite of their intention to
leave for another destination for employment purposes; or
3. Notice to the POLO/Embassy/Consulate of their arrival at the new jobsite to inform
them of their entry and employment particulars into the country.
As one of the measure to safeguard the employment opportunities of OFWs and to
ensure their protection and welfare in the light of the global financial crisis, POLO, Korea
and other POLOs are requested to aggressively disseminate the above information in their
respective areas of jurisdiction for the guidance of all concerned.
(SGD.) JENNFER JARDN-MANALL
Administrator
--o0o--
Advisory No. 03, S. of 2009
Precautionary Measures Against Mexican Swine Flu
n view of the reported rapid spread of the deadly Mexican swine flu to the United
States, Canada, New Zealand and other countries, which is being feared to develop into a
global outbreak, this Advisory forewarns all outbound Filipino workers to take precautionary
measures to prevent being contaminated of the virus.
The swine flu virus which was discovered in Mexico is a novel strain having an unusual
combination of genetic material from pigs, birds and humans which have reassorted and
caused the development of the current human H1N1 influenza virus. There is no known
vaccine specific for the said virus.
986
Although the Philippine has remained swine flu virus-free, outbound Filipino workers
are advised to consider the following precautionary measures:
1. bring several facial masks and to religiously use these masks during travel;
2. refrain from any contact with sick or contaminated person;
3. refrain from any body contact such as embracing or check to cheek;
4. regularly wash hands with anti-bacterial soap and water;
5. have alcohol or alcohol-based cleansers handy;
6. immediately report any unusual case of flu or symptoms affecting a colleague/co-
worker at the jobsite to the management or available medical health officer.
Labor and Employment Secretary Marianito D. Roque issued a call for the OFW
community to take precautionary measures after the World Health Organization (WHO)
raised the level of influenza pandemic alert from phase four to phase five because of the
capacity of the virus to spread rapidly.
The Labor Chief said that the Department of Labor and Employment has launched
massive information drive on H1N1 virus with Filipino Workers locally and abroad.
The accredited medical clinics conducting pre-medical examinations for OFWs are
also tasked to aggressively assist in the info campaign.
OFWs are further advised to report any such case to the nearest Philippine Overseas
Labor Offices or Consulate that have been tasked to closely monitor and immediately
report any incident involving OFWs in their respective areas of jurisdiction.
For information and guidance.
Administrator
--o0o--
Requiring All Maning Agencies to Give a Weekly Update
of the Effect of the Global Crisis
Further to POEA Advisory No. 29, series of 2008, requiring all manning agencies to
give a weekly update of the effect of the global crisis on their vessel enrollment and crew
orders, all manning agencies are mandated to submit said report every 10th and 25th of
the month.
Failure of an agency to submit a report on the dates specified above will hold them
liable in accordance with the 2003 POEA Rules and Regulations Governing the Recruitment
and Employment of Seafarers. (Agencies which have not submitted reports since the
earlier POEA Advisory 29 has been issued are required to submit a report on the impact of
the global crisis covering December 2008 to date).
The report form to be accomplished can be downloaded from the POEA website,
http://www.poea.gov.ph, under the section Maritime Employment Watch. The
accompl i shed form must be sent as an attachment to an emai l to:
maritimewatch@ymail.com.
For strict compliance effective immediately and until further notice.
(SGD.) VVECA C. CATALG
Officer-in-Charge and
Deputy Administrator
--o0o--
Additional Guidelines on the Recruitment and
Deployment of Filipino Workers to Canada
Further to POEA Memorandum Circular No. 6, Series of 2008 on Guidelines on the
Recruitment of Filipino Workers to Canada and in order to facilitate the recruitment and
employment of Filipino workers in Canada, the following guidelines are hereby issued:
1. Registration of Canadian Principals based in Manitoba
All recruitment and employment documents shall be submitted to the POEA through
the Philippine recruitment agency. Considering the government-backed recruitment by
Manitoba employers who are registered and pre-qualified by Manitoba authorities, the
documentary requirements for registration such as the Special Power of Attorney/Letter of
Authority, manpower request, copy of pre-approval LMO/ e LMO or Approval of Application
to the Provincial Nominee Program, copy of business license and Master Employment
Contract shall not need verification by the Philippine Overseas Labor Office.
2. Documentation of Name Hires
Non-household service workers (HSWs) name hired for Canada shall not be required
to present individual verified employment contracts for processing of their employment
documents.
For compliance.
988
Administrator
--o0o--
Guidelines for the Recruitment and Deployment of Filipino
Nurses (Kangoshi) and Caregivers (Kaigofukushishi) for
Japan on a Government-to-Government Arrangement
Pursuant to the Memorandum of Understanding (MOU) forged between the Philippine
Overseas Employment Administration (POEA) and the Japan nternational Corporation of
Welfare Services (JCWELS) signed on 12 January 2009, in accordance with the framework
of the Movement of Natural persons under the Economic Partnership Agreement of the
Philippines and Japan (JPEPA), the following guidelines are hereby issued to facilitate the
recruitment and deployment of Filipino nurses (Kangoshi) and caregivers (Kaigofukushishi)
to Japan.
I. SYSTEM OF DEPLOYMENT AND ACCEPTANCE OF CANDIDATES
n close coordination with the JCWELS, the system of deployment and acceptance
of candidates for nurses and caregivers shall be based on the following policies:
1. The number of candidates that can enter Japan under the JPEPA shall be based on the
actual number of vacancies informed by the Government of Japan.
2. Candidate-nurses and candidate-caregivers shall initially complete a six-month lan-
guage and culture training in Japan at a designated training facility of the government
before starting their on-the-job training with the respective hospital or caregiving institution.
3. The candidates shall obtain their qualification as Kangoshi or as Kaigofukushishi by
passing the respective national examination within the period allowable under the laws and
regulations of Japan i.e., three (3) years for nurses and four (4) years for caregivers.
Nurse-candidates shall have three (3) chances to pass the examination while caregiver-
candidates shall need at least three (3) years work experience before they can take the
examination once on the 4
th
year of stay in Japan.
4.The POEA shall shortlist applicants based on the minimum qualifications under the
JPEPA. The POEA shall adopt, as may be necessary, an additional set of criteria to
further shortlist the number of applicants up to the maximum required for endorsement to
JCWELS which is 1.2 times the number that can enter Japan on a particular year. En-
dorsement of applicants to JCWELS shall be on a first-come-first-served basis, subject to
the submission of complete and authentic documentary requirements.
II. QUALIFICATIONS
1. Candidate - Nurses
a. Registered Nurse
b. With three (3) years hospital experience
c. Willingness to undergo a full time Japanese language training for six (6)
months in Japan
d. Willingness to take the Nursing Licensure of Japan within the time allowed
in order to qualify as registered Kangoshi under the laws and regulations of
Japan.
e. No pending criminal or administrative cases or any other restriction which
would prevent travel outside of the Philippines
f. Not restricted from entering Japan.
2. Candidate-Caregivers
a. Graduate of any four year college course and Certified Caregiver by the
Technical Education and Skills Development Academy (TESDA) or Graduate
of Nursing Course.
b. Willingness to undergo a full-time Japanese language training for six (6)
months in Japan
c. Willingness to take the national examination for candidate-caregivers within
the time allowed in order to qualify as a Certified Kaigofukushishi under the
laws and regulations of Japan.
d. No pending criminal or administrative case or any other restriction which
would prevent travel outside of the Philippines
e. Not restricted from entering Japan.
III. REGISTRATION OF APPLICANTS
1. nterested applicants who are qualified may register on-line through any internet facility
at www.poea.gov.ph or at all POEA offices with on-line registration facilities.
2. Registration is free of charge and is governed by the Guidelines on E-registration issued
under Advisory No. 1, Series of 2008 and posted in the POEA website.
IV. PRE-SELECTION OF APPLICANTS
1. Only applicants with active profiles in the POEA Registry shall be considered for pre-
selection and pre-screening.
2. Pre-selected applicants (those identified from the registry for pre-screening/validation of
documents) shall be notified through their registered e-mail accounts or contact numbers.
3. Pre-selected applicants shall be required to present the original and submit photo-
copies of the following documents at Window L, Ground Floor, POEA, BFO Bldg., Ortigas
Avenue corner EDSA, Mandaluyong City or at the nearest POEA office in the regions, as
may be directed in the notification, for validation:
For candidate-nurses:
990
1. Self-made bio-data/resume with detailed job description with one (1) piece
2x2 colored picture
2. Valid Passport
3. Valid NB Clearance (for travel abroad)
4. College Diploma
5. Transcript of Records
6. Valid PRC D
7. PRC Board Certificate
8. PRC Board Rating
9. Employment Certificate/s
10. Training/Skills Certificate/s
11. Japanese language proficiency certificate (optional)
For candidate-caregivers:
1. Self-made bio-data/resume with detailed job description with one (1) piece
2x2 colored picture
2. Valid Passport
3. Valid NB Clearance (for travel abroad)
4. Authenticated College Diploma
5. TESDA Certificate on Caregiving (NC )
6. Transcript of Records
7. Training/Skills Certificate/s
8. Japanese language proficiency certificate (optional)
4. Applicants found to have provided false or incorrect information or documents or who fail
to present and submit documents to support their educational attainment, training, work
experience and personal circumstances shall be disqualified from the registry and from
application under this program.
V. PRE-QUALIFICATION OF APPLICANTS
1. Pre-selected applicants shall be pre-qualified based on the criteria set for candidates
under the JPEPA and completeness and authenticity of documents submitted.
2. Pre-qualified applicants shall be notified, through e-mail or by phone, to appear and
attend a pre-recruitment briefing to be conducted by the POEA on the system of deploy-
ment and acceptance of candidates under the MOU-JPEPA (Economic Partnership Agree-
ment of the Philippines and Japan) and the status of accepted candidates before they
pass the required National Licensure Examination for nurses and national examination for
caregivers.
3. Pre-qualified applicants who have attended the pre-recruitment briefing shall be included
in the List of Candidates for Kangoshi (nurse) and for Kaigofukushishi (caregivers) for
endorsement to JCWELS.
4. nclusion in the list of Candidates does not guaranty employment at a hospital or a
caregiving facility in Japan.
VI. APTITUDE TEST AND INTERVIEW
1. JCWELS, through its authorized representatives,shall conduct an aptitude test and
interview in a joint session of all the applicants included in the List of Candidates. Hospi-
tals/Caregiving institutions who wish to participate in the interview may join the interview.
2. The interview may be recorded as a video clip with the consent of the applicants.
3. An D number shall be issued by JCWELS to a candidate who has passed both the
interview and aptitude test.
VII. MEDICAL EXAMINATION
1. Candidates who have passed the aptitude test and interview shall be required to un-
dergo a medical examination with a DOH-accredited medical clinic of their choice.
2. The medical examination shall be in accordance with the requirements and scope as
agreed upon between the POEA and JCWELS.
3. Candidates shall shoulder the cost of medical examination.
VIII. MATCHING OF CANDIDATES WITH JAPANESE HOSPITALS/CAREGIVING
INSTITUTIONS
1. Candidates who have passed the medical examination shall be matched with Japanese
hospitals/caregiving institutions.
2. Matching of candidates shall be done by JCWELS in accordance with a matching
program designed for this purpose.
3. Each candidate shall have three (3) chances of being matched with a Japanese accept-
ing institution or prospective employer in accordance with the preference order list of ac-
complished by the candidate/s.
IX. DOCUMENTATION OF MATCHED CANDIDATES
1. Signing of an Employment Contract - Candidates who have been successfully matched
shall sign an employment contract (Japanese and English versions) with Japanese ac-
cepting institution or prospective employer.
2. Visa Processing - The Japanese accepting institution or prospective employer, through
JCWELS, shall make arrangements for issuance of visa to successful candidates.
3. Visa ssuance - The POEA, in coordination with the Department of Foreign Affairs,
which shall issue a Note Verbale to the Japanese Embassy in Manila, shall apply for
issuance of visa, in behalf of the successful candidate/s. The candidate shall shoulder the
cost of visa.
4. Pre-departure Orientation Seminar (PDOS) - Prior to deployment selected candidate/s
shall undergo a Pre-departure Orientation Seminar (PDOS) conducted by the POEA. The
992
PDOS shall include, among others, modules on the rights and obligations of worker, cul-
tural orientation, airport procedures and travel tips.
5. Pre-paid Ticket Advice (PTA) - The POEA shall coordinate with JCWELS for issuance of
a pre-paid ticket advice (PTA) for each selected candidate.
6. ssuance of Travel Exit Pass/OEC - The Government Placement Branch (GPB) of the
POEA shall process the documents of selected candidates and issue their travel exit
clearance to facilitate their departure.
X. DEPLOYMENT
1. The POEA shall coordinate with JCWELS and the POLO for the smooth entry of se-
lected candidates.
2. Upon arrival in Japan, the selected candidates shall be assisted at the airport by the
training facility with which they shall undergo the 6-month full time language training, in
coordination with JCWELS.
XI. AREAS OF RESPONSIBILITY
1. The Employment Branch shall handle registration, validation and prequalification of
candidates.
2. The nformation and Communications Technology Branch (CT) shall handle pre-selec-
tion of candidates for validation of documents.
3. The Government Placement Branch (GPB) shall handle documentation, processing and
deployment of candidates in coordination with JCWELS and POLO.
Administrator
--o0o--
Substitution of Employment Contracts
There has been increasing alarm on the plight of hapless OFWs who were forced to
run away from their employers because their contracts have been substituted with new
contracts providing lower salaries and benefits to workers.
All licensed recruitment agencies, as well as their foreign principals, are hereby
reminded to refrain from the practice of substituting /altering to the prejudice of the worker,
employment contracts approved and verified by the DOLE from the time of actual signing
thereof by the parties up to and including the period of the expiration of the same without
the approval of the DOLE.
Substitution of contracts to the prejudice of the worker is punishable by:
1
st
Offense - Suspension of License (2 months to 6 months)
2
nd
Offense- Suspension of License (6 months & 1 day to one year)
3
rd
Offense- Cancellation of License
The above is without prejudice to placing the agency and the principal under Preventive
Suspension pending investigation for possible contract substitution, should the
Administration deem it appropriate.
Finally, recruitment agencies should ensure that they have provided their workers
copies of their employment contracts duly verified by the DOLE/POEA.
For immediate compliance.
Administrator
PHILIPPINE PORTS AUTHORITY
20% Discounts for Senior Citizens and Students on Passenger
Terminal Fees in All PPA Ports
Pursuant to Republic Act No. 9257 or the Expanded Senior Citizens Act of 2003, the
Authority grants 20% discounts for all embarking senior citizen passengers in all PPA
ports.
Likewise, students shall be extended a similar discount on passenger terminal fee.
However, discounts for students are provided only during the school year (June-March).
Only senior citizens and students with valid dentification Card will be given the twenty
(20%) percent discount.
All concerned field offices are enjoined to implement this Circular fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.
994
(SGD.) ATTY. OSCAR M. SEVLLA
General Manager
--o0o--
Tariff Adjustment on Cargo-Related Charges for Foreign Containerized
and Non-Containerized Cargoes at SH and MICT
Pursuant to PPA BoardCom Resolution No. 2009-1176 and confirmed by Board
Resolution No. 2184, both adopted on 27 March 2009, the cargo-related (arrastre) handling
tariff on foreign containerized and non-containerized cargoes at South Harbor (SH) and
Manila nternational Container Terminal (MCT) are hereby adjusted as follows:
1
st
Tranche - 8% increase effective 30 days after publication of
this Memorandum Circular
2
nd
Tranche - 7% increase effective 01 January 2010 (equivalent
to a 15% total increase over the previous cargo
handling tariff and the 2nd tranche shall not be
compounded)
This Memorandum Circular shall take effect thirty (30) days after publication in a
General Manager
--o0o--
Adjusted Rates for Rental/Hiring of Survey Boat, Equipment and Personnel
Due to the effects of inflation, the rental rates for the use of survey boat and equipment,
and hiring rates for personnel services of PPA specified under Memorandum Order No. 26-
05, dated 11 May 2005 as amended under PPA Memorandum Order No. 28-2005, dated
26 May 2005 are hereby adjusted correspondingly as follows:
a) Survey Boat (ncludes crew and fuel costs) - P20,778.00/day or fraction thereof
b) Total Station - P2,196.00/day
c) Theodolite - 1,025.00/day
d) Echo Sounder - 3,660.00/day
e) Sr. Geodetic Engineer - 1,464.00/day
f) nstrumentman - 703.00/day
g) Cartographer/Draftsman - 360.00/day
h) Data Processing and Plotting - 5,000.00/sheet
i) Map Reproduction - 100.00/sheet
The foregoing does not include incidental and out-of-town expenses (local and provincial
transportation, per diems, internet, communication, photocopying, etc.) which shall be to
the account of the client.
This Order takes effect immediately and shall remain in effect unless earlier amended
or otherwise revoked.
General Manager
--o0o--
Finance Memorandum Order No. 02-2009
Amendment to PPA Finance Memorandum Order Number 11-2006
entitled Guidelines in Setting Up Allowance for Doubtful Accounts
. AUTHORTY
1.1 Section 6a (iii) Presidential Decree No. 857
1.2 Philippine Accounting Standards (PAS) No. 37
2. COVERAGE
This guideline covers the setting up of allowance for doubtful accounts of all unpaid
accounts recorded in the PPA Books.
3. MECHANCS
3.1 Rates. The following graduated rates are hereby prescribed to be applied to the
balances of the accounts based on age category, to wit:
Age (Days) of Account Rate of Allowance To be Set Up
Not Yet Due 0%
30 days 5%
31-90 days 10%
996
91-180 days 20%
181-365 days 40%
Over 365 days 60%
Dormant with Nil Chance 100%
3.2 Computation. Annually, the Allowance for Doubtful Accounts shall be recomputed
or updated. The difference between the updated amount and the balance of the Allowance
for Doubtful Accounts provided as of the previous years shall be recognized as expense of
the current year.
3.3 An account is classified as dormant account without chance of being collected
if all of the following conditions are present:
3.3.1 Over 365 days old; and
3.3.2 All collection efforts failed duly supported with the following
documentary evidences, among others:
3.3.2.1 Collection letter/s or Committee Report/s
3.3.2.1.1 Certification from the Securities and Exchange
Commission/Other Regulatory Government Agencies
3.4 All dormant accounts should be immediately requested for write-off in accordance
with existing procedural guidelines, for final approval of the following approving officials,
pursuant to COA Resolution No. 2009-002.
COA Unit Amount
3.4.1 Supervising Auditor or Head of 1) a. Original jurisdiction for losses in
Audit Group amounts not exceeding P50,000.00
3.4.2 Audit Cluster Director or 2) a. Original jurisdiction for losses in amounts
Regional Director exceeding P50,000.00 but not exceeding
P100,000.00.
b. Appellate jurisdiction over the decision of the
Supervising Auditor or Head of Audit Group
c. Appellate jurisdiction over the decision of the
Audit Cluster Director or Regional Director
3.4.3 Commission Proper 3) a. Original jurisdiction for losses in amounts
exceeding P1,000,000.00.
b. Appellate jurisdiction over the decision of the
Adjudication and Settlement Board
3.5 Accounting Entries
Once approved, the corresponding provisions for doubtful accounts shall be adjusted
based on the following accounting entries:
3.5.1 Balance of Allowance for Doubtful Accounts is less than the updated amount.
dr. 0-90-200 Current Operating Expenses - Non Cash Charges
(3-13-300 Bad Debts)
cr. 8-80-716 Allowance for Doubtful Accounts
3.5.2 Balance of Allowance for Doubtful Accounts is more than the updated amount.
dr. 8-80-716 Allowance for Doubtful Accounts
cr. 8-98-100 Retained Earnings/PDO PMO Clearing
4. REPEALNG CLAUSE
This Memorandum Order revokes PPA Finance Memorandum Order No. 11-2006.
5. EFFECTVTY
This Order takes effect immediately.
(SGD.) ATTY. GLORA J. VCTORA-BAAS
Assistant General Manager
Finance and Administration
--o0o--
Amendment to Article III (Guidelines in the Conduct of Public Bidding)
of PPA Administrative Order No. 01-2006
Text Available at Office of the National Administrative Register
--o0o--
Preferential Rental Rate of P35.55/sq. m./mo.
for Slip 0 Areas, PMO North Harbor
998
PPA Board Resolution No. 2184 dated 27 March 2009, approved for implementation
the preferential rental rate of P35.55/sq.m./mo. for Slip 0 areas at PMO North Harbor.
Said preferential rental rate is valid effective November 2005 until September 2009, to
coincide with the expiry date of PMO North Harbor preferential rate approved per PPA
Board Resolution No. 2158.
For your immediate compliance.
(SGD.) LEOPOLDO F. BUNGUBUNG
Officer-In-Charge
--o0o--
Amendment to PPA Memorandum Order No. 03-2009 Entitled
Compromise Rental Rates on Lands at Manila North Harbor
Section 4.4 of PPA Memorandum Order No. 03-2009 is hereby amended to read as
follows:
4.4. Settlement Scheme
4.4.1 PLSA Formula
No interest and penalties shall be charged for the arrearages provided that the
North Harbor tenants/lessees comply or undertake the following:
4.4.4.1 Execute a Compromise Agreement with PPA to avail of PLSA-based
rental rates, as provided in Section 4.1 of PPA Memorandum Order No. 03-
2009, within 60 days from receipt of written notice.
4.4.4.2 All arrears or back accounts must be paid within fifteen (15)
days from date of signing of the Compromise Agreement.
4.4.2. Modified PLSA Formula
For lessees who cannot pay in full within fifteen(15) days, their accounts
may be restructured following the Modified PLSA-Formula to wit:
4.4.2.1 Execute a Compromise Agreement with PPA to avail of PLSA-based
rental rates, as provided in Section 4.1 of PPA Memorandum Order No. 03-
2009, within 60 days from written notice.
4.4.2.2 nterest Charges
4.4.2.2.1 6% per annum simple interest from 1998 to date of
Compromise Agreement added to and forming part of the principal restructured
amount;
4.4.2.2.2 plus built-in interest of 6% per annum during the
restructuring period
4.4.2.3 Penalty Charges
4.4.2.3.1 Waived from1998 to date of Compromise Agreement
4.4.2.3.2 Waived during the restructuring period
4.4.2.4. Payment Term
4.4.2.4.1 nitial Payment of at least 10% of the total amount
4.4.2.4.2 Balance to be restructured within a maximum period of 10
years based on equal or graduated monthly amortization
4.4.2.5 Charges for Defaulted Amortization
4.4.2.5.1 nterest Charges of 6% per annum; and
4.4.2.5.2 Penalty Charges of 6% per annum
4.4.3 Failure to Execute Compromise Agreement
t is hereby reiterated that in case of failure to execute a Compromise
Agreement, within 60 days from notice, Section 4.6.4 of PPA Memorandum
Order No. 03-2009 shall apply.
This Memorandum Order shall take effect immediately.
(SGD.) ATTY. OSCAR M.SEVLLA
General Manager
--o0o--
Adjustment of Conversion Rate Used in the Computation of Vessel
Charges on Foreign Containerized Cargoes at MICT and South Harbor
The existing conversion rate used in the computation of the vessel tariff on foreign
containerized cargoes at MCT and South Harbor is Php43.00 per US Dollar.
1000
n view of the depreciation of the Philippine Peso against the U.S. Dollar and per
agreement between the Manila Port Terminal Operators (CTS and AT) and ASL, the
conversion rate used in the computation of the vessel charges shall be adjusted from
Php43.00 to Php44.50. Henceforth, the vessel charges at South Harbor and MCT shall
continue to be dollar-based but no longer subject to foreign exchange conversion
mechanism. Likewise, all succeeding increase adjustments shall be based on the tariff
increase mechanism and procedures of the Authority.
Conditions nos. 2 to 4 as provided for under PPA Administrative Order No. 02-2006 in
the conversion of rates shall continue to be observed.
This Circular shall take effect 15 days after publication in newspaper of general
circulation or July 1, 2009.
General Manager
--o0o--
Guidelines for Foreign Vessels Intending to Lay-Up
in the Different PPA Administered Ports
I. AUTHORITY
1.1 Sections 6.a(ii) and 20 of P.D. No. 857, as amended.
1.2 PPA Administrative Order No. 07-89, as amended by PPA Administrative Order
No. 08-89.
1.3 PPA BoardCom Resolution No. 2009-1169 confirming the function and responsibility
of PPA in designating lay-up areas for foreign vessels in the different ports under its
jurisdiction.
2. SCOPE
This Memorandum Circular shall apply to all foreign vessels due for lay-up in PPA
Administered lay-up areas and all persons or entities engaged or interested to engage in
the vessel lay-up trade.
3.1 Laid-up vessels - Vessels which have been decommissioned or otherwise
unemployed and idle while waiting for better business prospects for their operations.
3.2 Lay-up areas - The areas designated by PPA for vessels that are laid-up. These
are identified by the corresponding coordinates in latitudes and longitudes.
3.3 Lay-up Agent - Any person or entity which are holders of Permit to Operate as
Lay-up Agent duly authorized by PPA to engage in vessel lay-up trade.
3.4 PMO - Port Management Office
4. GENERAL PROVISIONS
4.1 Designated Lay-up Areas - The lay-up areas duly designated by PPA in the different
ports under its jurisdiction shall be used as lay-up areas for foreign and domestic vessels.
4.2 Authorization as Lay-Up Agent - All foreign vessels intending to lay-up shall be
represented by an agent duly authorized by PPA to engage in vessel lay-up trade.
4.3 Procedures for Laying-up - All laid-up foreign vessels shall follow the guidelines
prescribed in Article , Sections 4, 5 and 6 of PPA Administrative Order No. 07-89
otherwise known as Designation of Lay-Up Areas for PMOs.
5. SPECIFIC GUIDELINES
5.1 Filing of Application
Application for Permit to Operate as lay-up agent shall be filed in the PMO which
has jurisdiction over the designated lay-up area where the foreign vessel shall be laid-
up.
5.2 Management Competence Requirement
Applicants for vessel lay-up agent, including its principal officers, must have a
minimum of one (1) year experience in maritime-related field.
5.3 Technical Capability Requirement
The lay-up agent shall have readily-available equipment and facilities, whether
owned or lease, such as tugboat, communication equipment and such other equipment
and facilities necessary for the effective provision of lay-up services, all in serviceable
and ready-line condition.
The following documentary requirements of the Authority shall be complied by the
applicant:
a. Letter of Application:
b. Certified copy of Registration with SEC together with the Articles of ncorporation
and By-Laws specifically provided therein the laying-up of vessel is one of the entitys
nature of business (for Corporation/Partnership);
1002
c. Certified copy of Registration of Business Name issued by the Department of
Trade and ndustry reflecting therein that the laying-up of vessels is included as one of
his/her business interests (for Single Proprietorship);
d. Certified copy of the latest Audited Financial Statement submitted to BR;
e. Certified list of readily-available equipment and facilities together with supporting
documents as proof of acquisition thereof;
f. Company profile with bio-data/resume of Principal Officers/Name of Proprietor
indicating their maritime-related experiences.
5.5 Approval and Issuance of Permit to Operate (PTO)
The PMO shall approve and issue the Permit to Operate as Lay-Up Agent which
shall be valid for a period of one (1) year. The PTO shall be renewable upon request of
the lay-up agent.
5.6 Performance Bond
To ensure faithful compliance of the authorized lay-up agent with its obligations,
the grantee shall post and submit to the Authority, one (1) month upon execution of the
PTO, a Performance Security Bond in the amount of FVE MLLON PESOS (P5M) in
the form of either cash, managers check, cashiers check, bank guarantee/draft or
surety bond, callable upon demand.
5.7 Payment of Lay-Up Fee
A nominal lay-up fee of US$91.00 (plus VAT) per day per foreign vessel, regardless
of size, shall be charged by the Authority. The authorized lay-up agent shall pay the lay-
up fee on a monthly basis payable on the 5
th
day of the succeeding month. Failure of the
lay-up agent to pay the lay-up fee on time shall be subject to interests and penalties in
accordance with the existing regulations of PPA.
For payment in Philippine Peso denomination, the Foreign Currency Exchange
Rate (FCER) issued by the Commercial Services Department, PPA Head Office (based
on the 15-day average of the prescribed Bangko Sentral ng Pilipinas FCER) prevailing
at the time of the issuance of invoice shall be used in determining the peso-value of
dollar denominated port charges due PPA.
5.8 Other PPA Charges
Aside from the lay-up rate, the following PPA charges shall likewise be collected:
5.8.1 Upon vessels arrival, port dues of US$0.081 per GRT per call shall be
collected. This is the amount assessed against a vessel engaged in foreign trade based
on its total GRT or part thereof, including those engaged in barter trade for each entrance
into and departure from a port of entry in the Philippines.
5.8.2 An anchorage fee of U$0.020 per GRT per calendar day or fraction thereof
shall also be collected upon arrival of the vessel. This is the amount assessed against
a vessel engaged in international or foreign trade, including those engaged in barter
trade, that do not berth but drop anchor at government port while waiting completion of
documents processed for lay-up.
5.8.3 Upon vessels departure, an anchorage fee of US$0.020 per GRT per
calendar day or fraction thereof shall be collected. This is the amount assessed against
a vessel engaged in international or foreign trade, including those engaged in barter
trade, that do not berth but drop anchor at government port while waiting completion of
documents processed for vessels departure at the anchorage area.
6. PENALTIES
Any person or entity violating the provisions of this Circular or the terms and
conditions stipulated in the Accreditation Certificate issued to the lay-up agent shall be
subject to the administrative fines and penalties under Section 43 of P.D. 857 , as
amended by Executive Order No. 513 and its implementing regulations.
7. SEPARABILITY CLAUSE
f for any reason, any sections or part of this Circular is deemed invalid by competent
Authority, the declared invalid section or part thereof shall not affect the other sections
or parts to which such declaration or nullity does not apply or relate.
8. REPEALING CLAUSE
Any provision of existing PPA rules and regulations which are inconsistent herewith
shall be deemed amended or modified accordingly.
9. EFFECTIVITY
This Memorandum Circular shall take effect fifteen (15) days after its publication
General Manager
--o0o--
Guidelines on the Management and Operation of the
PPA-Educational and Sports Complex (PPA-ESC)
Text Available at the Office of the National Administrative Register
--o0o--
1004
Amending Item A, Table 1, Annex E of PPA Memorandum Order
No. 31-2009 Regarding Quotation of Rental Rates and Charges for the
Use of PPA-ESC Recreational Facilities, and Sauna and Salon Services
U.P. Law Complex, Diliman, Quezon City)
--o0o--
Operations Memorandum Circular No. 04-2009
Adjustment of Conversion Rate in the Computation of Vessel
Charges on Foreign Containerized Cargoes at MICT and South Harbor
Pursuant to PPA Memorandum Circular (MC) No. 10-2009, the conversion rate used
in the computation of the vessel tariff on foreign containerized cargoes at MCT and South
Harbor was readjusted from Php43.00 to Php44.50 per U.S. Dollar.
Attached is a schedule of the revised cargo handling tariff* at MCT and South Harbor
incorporating therein the adjusted rates in vessel charges denominated in U.S. Dollar
which shall be effective July 1, 2009.
(SGD.) LEOPOLDO F. BUNGUBUNG
AGM for Operations
PhilPost Circular No. 09-08
Procedures in the Receipt, Processing, Delivery and Collections of EMS
Event Information of Items Sent to the Provincial Post Offices
--o0o--
Regulation in the Acceptance of International Mails
n the exigency of the service, the following regulations in the acceptance of
international mails destined to other countries are hereby prescribed effective immediately:
a. The address of the sender indicated in the mail matter is within the Philippines.
b. Only postage stamp(s) issued by the Philippine Postal Corporation should be affixed in
the mail matter.
c. Only the impression of the postage metered machine owned or duly authorized by the
PhilPost should be in the mail matter.
d. Only the duly authorized indicia of the PhilPost should appear in the mail matter.
e. The maximum quantity of mails one (1) sender can post for a single destination or one
(1) country are as follows:
Frequency No. of Pieces
One (1) day 2,950
Daily for a period of two (2) weeks 995
A period of two (2) weeks 9,950
f. Outbound international mails found that does not comply with items (a) to (d) of this
issuance shall be seized and/or confiscated and turnover to the APMG for Operations,
copy furnished immediate supervisors, for appropriate action.
g. The following actions should be taken by the APMG for Operations upon receipt of the
non-complying mail matters, viz.:
z nform the sender that the mails did not comply with and will be disposed
according to internal regulations of PhilPost.
z Request investigation by concerned offices to determine responsibility in the
incidence - Postal District Manager, Operations Manager and/or nspection
Service.
z Upon completion of investigation, dispose of the mail matters by destruction
or sale, whichever is advantageous of PhilPost.
1006
The Corporation shall reserve the following rights:
z For Post Offices to reject or not accept mail matters that does not comply
with the provisions of this regulation.
z To initiate legal action against the erring postal personnel and/or sender, if
prima facie case exists.
Regional Directors, Operations Directors and Postal District Managers are hereby
directed to monitor the strict compliance of the provisions of this issuance.
Moreover, Post Office personnel are enjoined to inform the postal customers of
the terms of acceptance for international mails.
Previous issuance inconsistent hereof are hereby amended and/or revoked
accordingly.
For strict compliance of all concerned.
(SGD.) HECTOR R. R. VLLANUEVA
Postmaster General & CEO
--o0o--
Operating Procedures of Express Mail Service Office (EMSO-CMEC)
as an Inward Office of Exchange (OE) and Delivery Office for the EMS
Committed Door to Door Delivery Service in view of the Implementation
of the EMS Pay for Performance Plan
A. BACKGROUND
On 01 January 2009, the Philippine Postal Corporation participated in the EMS Pay
for Performance Plan which is a mandatory requirement of the EMS Cooperative - Universal
Postal Union for postal administrations operating EMS. t aims to improve service
performance of EMS to be at par with global standards.
To be able to meet the requirements of the EMS Pay for Performance Plan, the
following Guidelines and Procedures in the Operations of the Express Mail Service Office
(EMSO) - CMEC as the nward Office of Exchange (OE) and Delivery Office (DO) shall be
implemented, effective immediately.
B. GENERAL GUIDELINES OF OPERATIONS
1. Responsibilities of the Express Mail Service Office, (CMEC)
The Express Mail Service Office (EMSO) at the Central Mail Center (CMEC) shall
serve as the nward Office of Exchange (OE) and at the same time, Delivery Office (DO) for
Metro Manila and other areas committed to the door to door express delivery of EMS. As
such, it shall perform the following functions:
Processing Center and nward Office of Exchange (OE) for inbound
international express item (EMS mports)
Outward Office of Exchange (Outward OE) for outbound international Express
Mails (EMS Exports)
Delivery Office (DO) for the committed EMS door to door delivery service in
Metro Manila and adjacent cities and municipalities
Central Repository of all EMS Event nformation both for inbound and outbound
express items.
Operates the Customer Service and Rugby Systems
2. Event Information/Tracking Events to be provided by the Express Mail Service
Office (EMSO) as Office of Exchange and Delivery Office (DO)
The following tracking information shall be generated by the Express Mail Service
Office and sent to Postnet.
2.1 For nbound (mports), as provided for in the Pay for Performance Plan
Events Description Events Description
D Arrival at the nward H Unsuccessful Delivery
Office of Exchange
E Sent to Customs I Successfully Delivery
F Send items from
nward OE
2.2 For Outbound tems (Exports)
Events Description
C Departure from Outward Office of Exchange
C. GUIDELINES AND PROCEDURES AT THE INWARD OFFICE OF EXCHANGE (OE)
1. Operating Guidelines, Receipt of EMS Items from Airline Representatives and
Ground Handlers to
1008
Receiving Clerks shall check all the pertinent documentations (AV-7, Boat Notes,
and shipping manifests) and the condition of bags, actual weight, seals and shipping
tags, delivery bills, (CN-38) to ascertain the condition of dispatches upon receipt.
Actual number of bags shall be counted as against the actual number of bags
indicated in the delivery Bill (CN-38)
For Containerized Loose Mal Container (CTM), integrity of seals of the container
shall be checked before receiving the item. The actual number of items per container shall
be counted as against internal manifest of the CTM Dispatch Bill.
All received mail bags shall be scanned in the computer to record receipt of dis-
patches.
2. Treatment of Mailbags Received Damaged and With Irregularities
Dispatches/mailbags received with damage or in bad/abnormal condition shall be
immediately noted in the dispatch documents, requiring airline representatives to sign/
countersign in the dispatch bills.
n case of serious damage or irregularities noted on the mailbags, all the contents
shall be checked and inventoried by the receiving clerks, airline representatives the guard
on duty, to be supervised by the Section Chiefs or Chief of Division concerned.
A Bulletin (CN-43) shall be immediately prepared and sent to the sending postal
administration in case of items received in damaged or abnormal conditions.
3. Treatment of Missent Mailbags
Mailbags inadvertently missent by airlines shall not be accepted but returned
immediately to airline representatives.
4. Separation of Mail Dispatches, Documents and Merchandise
Mail dispatches marked EM (Merchandise) shall be separated from those marked
ED (Documents).
Mixed Dispatches marked (EN) shall be processed by the Parcel Post Unit, after
which the document items shall be forwarded to the letter post processing unit under
receipt.
Receiving Clerks shall forward all Document dispatches to the Letter Post Pro-
cessing Unit and Merchandise items to the Parcel Post Processing Unit.
5. Opening of Mailbags and Receipt of Individual Items
5.1 Document Items
Condition of security seals of mailbags containing document items shall be checked
for integrity before opening.
n case of irregularity, it shall be noted in the internal manifest requiring the guard
on duty to witness and confirm the discrepancy.
A report shall be prepared addressed to the Manager, EMS for preparation of
necessary Bulletin to sending postal administration.
Upon opening, the individual items shall be individually scanned, (Event D,
Arrival at the Office of Exchange) and account the actual number of pieces indicated in
the computer and that in the nternal Manifest.
tems received in good condition shall be updated in the computer with notation
Normal and those with irregularities to be provided with standard service notations pro-
vided for in the nternational Postal Systems (PS).
5.2 Merchandise Items
Condition of security seals of mailbags containing merchandise items shall be
checked for integrity before opening.
Opening of merchandise bags/dispatches shall be made only when there are
customs examiners present
n case of irregularity, it shall be noted in the internal manifest requiring the guard
on duty to witness and confirm the discrepancy.
A report shall be prepared addressed to the Manager, EMS for preparation of
necessary Bulletin to sending postal administration
Upon opening, the individual items shall be individually scanned, (Event D,
Arrival at the Office of Exchange) and account the actual number of pieces indicated in
the computer and that in the nternal Manifest.
tems received in good condition shall be updated in the computer with notation
Normal and those with irregularities to be provided with standard service notations pro-
vided for in the nternational Postal Systems (PS)
The Rugby Systems shall be updated indicating the actual condition of the item
when received at the nward (OE)
n case of open or unbagged dispatches, the dispatch numbers and the EMS
numbers shall be encoded in the computer
5.3 Treatment of Items Received in Bad Conditions and with Irregularities
Express items received in bad condition shall be properly indicated and in the
computer based on the existing standard service notations provided in the PS Systems.
A Bulletin (CN-43) shall be prepared and send to the origin postal administration.
1010
Damage on the item shall be properly repaired with packaging tapes with the
official markings of EMS or CMEC by the officials duly designated to do so, and if neces-
sary, placed inside plastic envelopes. The damaged portions shall be initialed by the offi-
cials who repaired the items countersigned by the Chief of Section/Division concerned.
tems that are significantly/totally damaged shall be inventoried in the presence of
the Division Chief concerned, witnessed by the Guard on Duty. t shall be placed in plastic
envelopes and a copy of the CN-43 enclosed inside plastic bag/envelopes and counter-
signed by the Officials concerned.
Report on the total of items received in bad order, damaged condition and those
with irregularities shall also be submitted to the Manager, EMS on daily basis, including
the actions taken thereof.
5.4 Presentation to Customs for Inspection
Based on the existing Memorandum of Agreement between the Philippine Postal
Corporation, and the Bureau of Customs, imported parcels/merchandise shall be marked
as follows:
a. Passed - those items that were passed by customs which are not taxable or
tax exempt all items marked passed shall be forwarded to destination office for
delivery.
b. Forward - items intended to mail distribution centers and post offices with
customs offices and customs examiners assigned items marked forward shall
be forwarded to the provincial dispatching section for processing and dispatch.
c. Subject to Customs Examination - items that are intended to the door to
door delivery coverage of EMSO and to post offices without customs offices
tems marked Subject shall be forwarded to EMS Customs Warehouse.
5.5 Sorting and Dispatch Procedures (Documents and Merchandise)
For Merchandize items, The Parcel Post Processing Unit shall observe the
following sorting selections:
For items intended to Committed Zones, (Marked Passed) the list of which
are shown on Annex A*
Those intended to air mail points (Marked Forward) the sorting selections of
which are indicated in Annex B*
Those intended to non-air destination (Marked Forward), the Make-up of
dispatches of which are prescribed in Annex C*
Those for Customs nspection (Marked Subject)
Erratic Consignments (Without names, address, etc which are undeliverable)
Document items shall follow the same dispatch procedures, however without the
required markings of the Bureau of Customs
After sorting of all items documentation, scanning and manifest shall be prepared
intended to each destination and shall be turned-over under receipt, or left to the guard
on duty for turn-over to the next shift.
Dispatches intended to provincial destinations shall be provided with three (3)
copies of internal manifest, the 3rd Copy of which shall be returned to EMS pursuant to
Philpost Circular No. 09-08 dated 05 January 2009.
5.6 Mail Accounting and Management of Inventory
At the end of each day, the Chief, nbound Section shall conduct an inventory and
mail accounting as to the number of pieces received, by the Office vis-a-vis the number of
items forwarded to each destination.
5.7 Procedures in the Processing of Mails Intended for Provincial
Destination
Prior to receipt and processing of the items from nbound Section, the receiving
clerks of provincial dispatching section shall count all items for processing of each unit (Air
and Non-air)
Each item shall be checked, noting the condition of the item prior to sorting
The Air and Non-Air Units of the Provincial Dispatching Section shall observe the
following Sorting Selections indicated in Annex B* and Annex C*.
After sorting all the items shall be encoded in the computer, (Event F*) All the
contents shall be checked and a copy of the nternal Manifest shall be printed in three (3)
copies.
The Unit Chief or his/her designate shall count and check each individual item,
making sure that all the items are listed in the nternal Manifest before closing the bag.
Mail bags shall be sealed, weighed and proper documentation shall be observed.
An airway bill shall be prepared indicating the dispatch number, seal number, bag
number, and weight destination of each dispatch.
All dispatches shall be turned-over to Couriers and Armcot under receipt,
Two copies of the internal manifest shall be inserted on each bag, including the
3rd copy which will be returned to CMEC.
1012
5.8 Forwarding of IEMS to EMS Customs Warehouse
All express items marked Subject by Customs shall be separated from others
marked Passed and Forward.
The items shall be scanned (Event E, Sent to Customs) and provided with sepa-
rate Control Numbers for easy location at the warehouse. A copy of the transfer Manifest
shall be retained at the nbound Section.
D. GUIDELINES AND PROCEDURES AS A COMMITTED DOOR TO DOOR
DELIVERY OFFICE (DO)
1. Turn-over of mails for delivery to Area Dispatchers
Consignments for delivery in the committed Zones shall be turned over to areas
supervisors with internal manifest and under receipt.
Before receiving the items, supervisors shall check the items for damage and
signs of irregularities.
tems discovered with irregularities, shall be reported immediately to the Unit Chief
of merchandize or Letter Post Section and to the Chief, EMS for notation and immediate
preparation of report.
For letter post items, Area Dispatchers shall then sort all the items according to
the delivery areas of letter carriers.
A record on the number of pieces shall be made by dispatchers before turning
them over to letter carriers. Letter Carriers shall be required to receive the number of items
for delivery under receipt, providing each with a Document Releasing Slip, indicating
therein the name of letter carrier and the number of pieces of express items released to
them.
After the turn-over of Area Dispatchers, they shall account the number of consign-
ments they received and the number of items they released to letter carriers under their
jurisdiction.
f after accounting of all items, there is a discrepancy between the received items
and those issued to Letter Carriers, the Area Dispatchers shall immediately inform the
Area Supervisors and hold the departure of all letter carriers under his jurisdiction. All mails
shall be re-accounted and inspected until such time that the missing items are reconciled
or found.
2. Receipt of Mails by Letter Carriers Intended for Delivery and Departure
from Delivery Office
Letter carriers shall check the condition of express items before receiving them. f
irregularities are noted, it shall be reported to his area in-charge immediately. Actual num-
ber shall be verified and checked on the number of items received for his delivery.
Letter carriers shall then sort the items according to their delivery beats. Undeliv-
erable items shall be immediately separated from deliverable items, noted at the Docu-
ment Releasing Slips, and a separate Delivery Notification List shall be prepared.
Delivery Notification Lists of tems to be forwarded to Erratic Unit shall be checked
and initial before turn-over to the Erratic Unit.
After walk sorting, and accounting of mails, the letter carriers shall proceed to
DNL Encoders for encoding and preparation to Delivery Notification List (DNL).
Letter Carriers shall present their Document or Parcel Releasing Slips (EMS Form
01), Annex D* before encoding of mails for delivery shall be made by the assigned encod-
ers.
After printing, letter carriers shall verify the contents of the DNL versus the actual
items for delivery.
Actual number of mails for delivery and the Delivery Notification List shall be checked
before allowing letter carriers to leave the Delivery Office. The items for delivery shall be
checked by the following officials:
The Area Supervisors
Representative for Letter Post Unit
Representative for the Parcel Post Unit
The Guard on Duty
The DNL shall be initialed by all the officers concerned or indicate that said post-
man has already been checked.
Departing letter carriers shall be required to accomplish and sign EMS Form 02
(Annex D*)
3. Door to Door Delivery Procedures
Delivery Supervisors at EMSO shall orient letter carriers assigned in their respec-
tive areas very post offices shall train/orient their letter carriers on the EMS Standard
Service Notations indicated in Annex E* of this EMS Operations Guide
EMS addressed to the residence of the addressee shall be delivered to the ad-
dressee or to the following:
Authorized representative (in writing)
Responsible member of the family, that is spouse, parent, and children who is
at least 18 years of age
For EMS items addressed at an office, school, university, association, hospital,
company, or similar institution or entity, the mail matter may be delivered to the office of
1014
the head entity, or designated central delivery point or the office responsible for the receipt
of inbound communications.
Consignments addressed to the person, firm, corporation, association or institution
without Care of shall be considered addressed to the person or firm and delivered thereto.
Those with senders notation care of shall be delivered to addressee if he so directs, or to
any of the two persons (the addressee or the care of) whoever is present during the time of
delivery, in the absence of senders restrictions or instruction, the item may be delivered to
the person to whom the item is cared of if the addressee is not around during the delivery.
EMS items whether documents or merchandise for delivery at condominiums and
high rise buildings shall be delivered to the addressee within the building premises. However,
if the building administration prohibits entry or delivery within building, it shall be delivered
to addressee or their duly authorized representative at the designated central delivery
point on the first floor. n the absence of designated places or person, only the EMS Notice
card shall be delivered to the person assigned to receive mails at the first floor who shall be
requested to write on the article Received Notice followed by his signature and date of
delivery of the notice to him.
Consignments bearing senders instruction Deliver to Addressee only shall
be delivered to the Addressee only and not to other person, even with written order nor on
the strength of a Special Power of Attorney. The word Personal Confidential and
others of similar instructions by the sender shall not be construed as endorsement re-
stricting delivery to the addressee only.
Consignments addressed to a minor or an insane person living with or under the
control of his/her parents or guardian shall be delivered to the parents or guardians. f the
item bears restriction Deliver to the Addressee Only, it shall be treated as undeliverable
and returned to sender, or request the sending administration to contact the sender for
advice.
EMS consignments addressed to a deceased person shall be returned immedi-
ately to the sender.
EMS items addressed to post office box shall be turned-over to the post office
where the Post Office Box is located. Upon the turnover of the EMS item to the post office,
the event shall be considered Successful Delivery (Event ).
n case nobody can take delivery of an Express Mail matter on the first trip of the
letter carrier, a second trip shall be made to effect delivery thereof, unless the addressee
has permanently left the place or is not expected to return within the required period the
article may be held. f still cannot be delivered, the notice card therefore shall be left the
address.
A recipient of an Express Mail shall be required by the letter carrier to sign his or
her name legibly on the proper space in the EMS Delivery Book and in the Proof of Deliv-
ery, attached to the item. f such signature is not legible, the recipient shall be required to,
or the carrier himself should write in print the recipient full name beneath such signature.
Proper identification shall be required to the addressee, requiring presentation of
the following valid identification:
Postal .D. Voters .D. w/ Voters Affidavit
Latest School .D. P.R.C. . D.
Company .D. SSS .D./GSS E-Card
Drivers License Senior Citizens .D.
Passport
All item should have been provided with service notations, either with attempted
delivery/failed delivery or successful delivery.
4. Event Information Classified as Attempted Delivery (Standard Reasons and
Measures)
All the Reasons and Measures provided in the Standard EMS Service Notations
contained in Annex E* are treated as attempted delivery as if the express commitment
was already provided even when the delivery attempt is not successful
Preparation and delivery of notices for items subjected to customs inspection are
also treated as attempted deliveries as defined by the EMS Cooperative
Delivery notices however shall be delivered under receipt to comply with the
requirements to be treated as such.
As such, at the end of the day upon the arrival of the items, event information
should be provided to comply with the requirements of the Cooperative.
5. Treatment of Undeliverable and Unsuccessful Deliveries at the Erratic Unit
All items considered undeliverable for reasons, without addressees name, incom-
plete address shall be [provided with standard notations/reasons Unsuccessful Delivery
(Event H) with measures Returned to Sender or Addressee Contacted if the tele-
phone number of the addressee is indicated.
tems for Return to Sender (RTS) shall be immediately returned to the sending
administration
The addressee of express tems with indicated telephone numbers shall be con-
tacted and informed to collect the item from the delivery office. n case the addressee
requests for door to door delivery,
After the first delivery attempt, a second attempt shall be made and if still
unsuccessful, a notification shall be left under receipt by any member of the house-
hold.
tems unclaimed after 15 days shall be immediately returned to sender by the
EMS Window Delivery Unit and the Erratic Unit.
1016
6. Delivery of EMS items Subject to Customs Examination
EMS Notices shall be prepared immediately upon marking Subject to Customs
Examination by the Customs Examiners. t shall be turned over to Letter Carriers under
receipt the next working day and recorded manually by letter carriers on their DNL.
Notices shall be delivered to the addressee, or any members of the household
under receipt. Two attempts shall be made by EMS letter Carriers after which, it shall be
left at the letter boxes of the addressee.
When claiming the item, the addressee shall be required to present the EMS
Notice, and his/her identification. Postal employees shall locate the item at the EMS
Customs warehouse and present to the Customs Examiners.
Upon computation and payment of taxes, the item inspected shall be closed with
official packaging tapes with EMS markings.
The addressee shall be required to sign in the EMS notice acknowledging receipt
of the item
Presentation of Customs Charges shall be collected before release of express
items at the EMS Customs Bonded Warehouse.
mmediately after release, the EMS Notice shall be encoded in the computer to
update the Event or Successful Delivery
7. Payment of Presentation to Customs Charges (PTCC)
Presentation to Customs Charges shall be collected on all merchandize items
(pouch or parcel) that had passed through customs inspection, whether Passed or Sub-
jected to Customs Examination.
PTCC however shall not be charged on items intended to P.O. boxes, Embassies,
Government Offices, schools and charitable institutions, and those with franking privi-
leges.
All Presentation to Customs Charge Collections shall be remitted to the cashier/
collecting officer at the end of the day.
8. Return of Letter Carriers from Delivery
The Guard on Duty shall check the number of items returned by letter carriers and
indicate in their blotter the number of returned items, time of return and the condition of the
items when it was returned in the delivery office.
The Chief of the Delivery Section, or Zone Supervisors, whoever is present shall
check the Delivery Notification List (DNL) and account the number of items that were
delivered and undelivered. DNL shall also be checked making sure that proper service
notations are indicated for each undelivered items.
E. COLLECTION, CONSOLIDATION ENCODING OF ALL EVENT INFORMATION AND
SAFEKEEPING OF DELIVERY NOTIFICATION LIST (DNL) AND PROOF OF
DELIVERIES (POD)
The Track and Trace Division shall be responsible for the consolidation, encoding
and safekeeping of all Delivery Notification List (DNL) and all Event nformation coming
from the provinces.
The Chief, Track and Trace Division shall make a check list of all committed
delivery areas and post offices on daily basis, and shall prepare report to the Manager,
EMS as to what areas and which post offices failed to submit the required event informa-
tion and PODs.
Before 11AM, or prior to sending of the ED to the Universal Postal Union EMS
database in Berne, Switzerland, the Chief Track and Trace Division shall make sure that
all the DNLs and PODs are accounted and encoded. n case of non-completion, a report
shall be made immediately addressed to the Manager, EMS identifying areas that were
not encoded and the reason for failure to encode.
1. Operations of the EMS Customer Service
The EMS Customer Service, under the Track and Trace Division, shall be respon-
sible for:
- Answering calls and queries from other postal administrations, and customers
both foreign and local.
- Making queries from other postal administrations and post offices, both local
and international and regarding status of express items.
- Management and Operations of the Rugby System
- Preparation and ssuances of Bulletins (CN 43)
- Prepare replies on formal queries filed by postal administration for signature of
the Division Chief, of the nternational Express Mail Division
- Prepare replies on queries of domestic post offices, MDCs, Regional Offices
2. Processing of items Subjected to Customs Examination Intended to post of-
fices without customs offices
Express items Subjected to Customs Examination that are intended to provincial
post offices without customs offices shall be presented to Customs Examiners by postal
employees assigned in the warehouse for assessment.
The items shall be opened both in the presence of postal employee and the exam-
iners of the Bureau of Customs.
f the item is subject to payment of tax, the Customs Examiners shall prepare an
nformal Entry (E) which will be attached to the item.
1018
The item shall be closed by postal employees concerned using official packaging
tapes of Philpost.
All the items returned by the Bureau of Customs with attached nformal Entries
shall be turned over to the Provincial Dispatching Section for dispatch to the provinces. t
shall be scanned at the computer with notation Released from Customs, Event F.
F. OTHER PROVISIONS
The Performance of the Committed Areas under the EMS Operational Guide shall
be monitored by the nternational Affairs Department (AD) under the Assistant Postmaster
General for Operations and the Management nformation Systems Department (MS) un-
der the Assistant Postmaster General for nformation Technology on daily basis.
MS shall forward all event information from the PS to the Postal Technology
Center in Singapore to monitor service performance, anomalies and items without delivery
information using the Business Process Monitoring System (BPMS) of PTC.
On Quarterly basis, the Express Mail Service Office, (EMS) the Domestic Opera-
tions Services Department (DOSD), nternational Affairs Department (AD) and Manage-
ment nformation Systems Department shall conduct a quarterly review of the EMS Opera-
tional Guide for submission to the Universal Postal Union-EMS Unit, Berne, Switzerland.
Any modifications and Amendments on this Operations Manual shall be subject
to the approval of the Assistant Postmaster General for Operations.
All other orders in conflict herewith is hereby modified and superseded accord-
ingly.
(SGD.) HECTOR RR. VLLANUEVA
--o0o--
PhilPost Executive Order No. 2009-01
Shortening the Validity Period of Postal ID
from Five (5) Years to Three (3) Years
As approved by the Board of Directors in its Board Resolution No. 2008-08, effective
immediately, the validity period of the Postal D is hereby shortened from five (5) years to
three (3) years from date of issuance.
This is in order to maintain the dignity of the Postal D by keeping the information
contained therein updated.
Please give this Order the widest dissemination.
Postmaster General and CEO
--o0o--
Limit of Domestic Money Order Issuance
This refers to Circular No. 95-38 dated 01 September 1995, limiting the issuance of
money orders up to P50,000.00 in a day to one remitter payable to one payee.
The above circular was amended pursuant to PhilPost Administrative Order No. 00-
02 dated 11 April 2000, specifically Chapter , Article , Section 1 - to read as follows:
Postmaster/MO teller may sell money order regardless of amount to one party payable to
one payee in a day.
However, when money orders amounting to P500,001.00 and above shall be issued
to one remitter payable to one payee, the following procedures shall be observed:
1. ssuing postmaster shall require the sender to fill out the attached Customer
nformation Sheet (CS) to be supported by at least two (2) valid identification (D) cards,
likewise, paying postmaster shall require the same to the payee.
2. ssuing/paying postmasters shall submit the Covered Transaction Report (CTR) to
the Executive Director, Anti-Money Laundering Council (AMLC), Room 507, EDPC Building,
Bangko Sentral ng Pilipinas, Manila, copy furnish the Money Order Service, Manila, within
5 days from date of issue/payment of money orders, in compliance with the Anti-Money
Laundering (AML) Act of 2001 - R.A. 9194. The format of the report is shown below:
Covered Transaction Report
Date: __________________
Name of Post Office: _____________________
Date of Name and Address Name and Address Serial Number Total Amount
Transaction of the Remitter of the Payee of Money Orders
Certified Correct:
______________________________________
(Signature over printed name of Postmaster)
1020
All Regional Directors, Operations Directors, Postal District Managers, Postmasters
and postal officials/employees are enjoined to ensure that this memorandum circular is
properly disseminated and complied with by all concerned.
(SGD.) HECTOR RR. VLLANUEVA
--o0o--
Mandatory Use of CN 22 and CN 23
Our attention is being called by foreign postal administration regarding the improper
filling-up or non-attachment of CN-22 on Small Packets and of CN-23 on Parcels. n this
connection, all concerned are directed to implement the mandatory use of CN 22 for Small
Packet and CN 23 for Parcels pending reproduction of CP 72.
Attachment of CN-22 and CN-23 is MANDATORY and it shall be properly attached
on the items.
Postal tellers/receiving clerks of small packets and parcels shall see to it that the
following is observed and complied with:
1. All small packets are attached with CN-22. Each CN-22 shall contain an itemized listing
of the contents of the small packet and its actual acquired/purchased value. Writing
should be clear and legible:
2. All Parcels, air or surface, shall be attached with CN-23. Each CN-23 shall contain all
the information needed as follows:
a. Complete name and address of sender and addressee
b. Weight and amount of postage paid on parcel.
c. temized listing of contents with actual purchased value of each. tems shall
be properly declared and legibly written. f the content of the parcel is valuable,
the original receipt/invoice shall be enclosed.
d. The senders instruction in case of non-delivery of the item at the country of
destination shall be also indicated, i.e. Treat as abandoned in case of non-
delivery; RTS in case of non-delivery, return postage will be paid by upon delivery
of RTS, etc.
e. Signature of sender/mailer.
3. Only English (and French) language shall be used in filling-up CN-22 and CN-23, Taga-
log or other dialect is not allowed.
Postal District Managers and Postmasters shall see to it that this order is disseminated
and all the tellers and receiving clerks are informed/oriented.
Compliance is enjoined.
--o0o--
Treatment and Return of Registry Return Receipts (RRR)
mproperly filled out and non-return of Registry Return Receipts (RRR) are one of the
common complaints and reason for inquiry by regular mailers/customers of Registered
Mails not only in the Central Office but also at post offices. Everyone is reminded that
Registered Mail is considered as the safest and most reliable service that the Corporation
offers. The service is enhanced through the RRR wherein the mailers are made to pay for
additional fee and therefore expect that the same will be returned on time with all the
required information on it.
t has been observed also that mailers go back and inquire about the RRR at the post
office where they mailed. To regain the trust of these mailers on the reliability of Registered
Mails, henceforth, RRR shall be returned immediately after delivery via DEMS as follows:
a. To the Postmaster of the post office of mailing/posting - when sender is a government
agency, law firm/lawyer or company.
The post of mailing/origin shall be responsible for the return/delivery of RRR to the
sender. As such, the mailer shall be informed that the RRRs shall be checked/claimed at
that post office.
A notice to the mailer shall be displayed at the Registry Counter to remind the
mailer as follows:
NOTICE
(For Government agencies, law firms/lawyers, & companies)
Please check for/claim your Registry Return Receipts/Cards at Window No.
________
b. To the Postmaster of the post office of delivery that has delivery jurisdiction at the
senders address - for individuals/personal mailers
For easy distinction, we shall now be using two colors of RRRs:
a. PNK Colored RRR - for business mailers
b. BLUE Colored RRR - for individual mailers
1022
n this connection, the treatment and delivery of RRR is hereby prescribed as follows:
I. At Acceptance Office
The Post Office of Mailing of a Registered Mail with RRR shall maintain a daily
control/record of all Registered Mails posted in its office. Mailers like law firms, lawyers,
government agencies and companies or regular bulk mailers of Registered Mails shall be
informed to claim the RRR at their post office.
Every post office shall endeavor to get the contact number of its regular mailers to be
able to call them up in case of non-pick-up of RRRs. Mailers/senders that requested to
have their RRRs delivered at their address shall be entertained but their RRRs shall still be
monitored. As such, the post office of mailing shall enclose all RRRs of that sender in an
envelope/wrapper and mail them through Registered Mail.
The following shall be observed:
a) Make sure that the Registered Mail contains the complete name and address of both
the sender and addressee. The RRR should contain the return address of sender and the
Registered Number should be written on the space provided for it.
b) The name of the Post Office of Mailing shall be clearly written/rubber stamped on the
upper portion of RRR for immediate distinction by the Office of Destination/Delivery.
c) The Registry Receiving Clerk or the one issuing the Registry Receipt shall make sure
that Registered Mails with RRR are properly noted/marked in the Registration Book.
The Postmaster shall designate an incharge who shall monitor the return of RRR and
deliver/return them to sender/mailer. A Record of all Registered Mail with RRR shall be
maintained (filed in chronological order) as basis for the monitoring and control of the
returned RRRs, which may be as follows:
1. Prepare a separate Sheet/Monitoring List of Returned RRRs with this format:
Date Registered Sender Destination Date of return/ Signature of
No. receipt At PO of Sender
Mailing (A/Receipt)
2. To avoid double recording, the Post Office may use for monitoring the
transmittal slip/mailing list provided by mailer posting bulk registered mails, or
3. Extra copy of the Registration Bill Book nner Bill which clearly marked
Registered Mails with RRR.
Returned RRRs shall be checked/marked in the Monitoring List. When the RRR has
not been returned after 30 days from the date of mailing, the Postmaster or his designate,
shall notify/make a follow-up to the destination post office to know the status of the mail
(for RTS, hold etc.) or return may have just been neglected.
Any post office that failed to return the RRR where sender complained of not receiving
an RTS after being followed up shall be reported to the Office of the Asst. Postmaster for
Operations indicating all the particulars of mailing and disposition of the subject Registered
Mails.
The sender/mailer shall sign in the Acknowledgement Receipt for the returned RRR.
d) n recording Registered Mail with RRR for dispatch, the letters RRR shall be
written immediately after or under the Registered Number in the nner Bill/Registry Book
(ex. 123 RRR or 123/RRR.)
II. At the Mail Processing Office, CMEC and MDC
a. The complete Registered Number, including the letters RRR for those attached with
RRR shall be so captured and indicated in the Record of Dispatches/nner Bill. This is to
serve as guidance and alert the delivery post office of its obligation to return the same to
the post office of mailing (for business/bulk mailers) and to the post office of delivery (for
individuals or personal mails).
III. At the Destination/Delivery Post Office
a. Recorders at the Local Registry Section/Unit (ncoming Mails) of the Delivery Post
Office shall make sure that the Registered Numbers of Registered Mails with RRR are
properly recorded and identified.
b. Releasing Clerks of Registered Mails shall advise the Letter Carriers to return to them
the RRRs immediately after delivery.
RRRs shall be followed up and collected from Letter Carriers when the RRRs have
not been returned after three (3) days from the date of release.
The Chief or ncharge of the Local Registry Section/Unit shall be responsible for
the return/mailing of RRRs to the Postmaster (of the post office of mailing for business
Registered Mails or to the post office of delivery for individual/personal Registered Mails.)
via DEMS. Each envelope/wrapper shall be noted RRR/s.
c. The destination/delivery post office shall be able to reply on the follow-up of the post
office of mailing/origin regarding delivery status of Registered Mails. When the RRR has
been lost or misplaced by the post office, a Delivery Certification shall be immediately
issued without requiring any fee from the sender.
Regional Directors, Operations Directors, Postal District Managers, and Postmasters
are enjoined to effect widest dissemination of this Order and ensure compliance by all
concerned.
The concerned Postmaster and the designated incharge shall be held liable in case
of complaint due to non-compliance of this order.
White RRR may still be attached to Registered Mail of ndividual mailer, until the
stock is consumed, and the old Pink RRR for business mailer.
1024
All previous memoranda/orders issued in conflict herewith are hereby revoked
accordingly.
This Order shall take effect on April 15, 2009.
--o0o--
Stop Payment for Lost Blank Money Order Forms
n the interest of the service and to avoid imminent loss on the Corporation on reported
losses of blank money order forms, effective immediately, the Money Order Service upon
receipt of report regarding the loss of blank money order forms shall instantly make a
request for stop payment with the bank in addition to the issuance of All Office Message to
avoid fraudulent use/encashment of said forms.
The accountable officer having custody of said lost bank money order forms shall
bear the cost of stop payment which is P200.00 per money order. He/she shall be reimbursed
with the stop payment fee once the Commission on Audit has issued relief of accountability.
For your information and compliance.
Memorandum Circular No. 02, S. of 2009
Amended Rules Governing Pre-Emptive and Other Subscription
Rights and Declaration of Stock and Cash Dividends of Corporations
Whose Securities are Registered under the Revised Securities Act
1
or Listed in the Stock Exchange
1
Now Securities Regulation Code (SRC) R.A. 8799
The Commission En Banc, in its meeting on April 2, 2009 approved the amendment
of Section 3 of the subject Rules so that the said Section shall now read as follows:
SECTON 3. All cash dividends declared by corporations shall have a record
date which shall not be less than ten (10) nor more than thirty (30) days from
said declaration. n case no record date is specified, then the same shall ipso
facto be deemed fixed at fifteen (15) days from such declaration.
Provided, however, that companies that are obliged to pay dividends
may have a single declaration for several cash dividends within a year
subject to the condition that their record and payment dates are also
explicitly provided,.(emphasis supplied)
Effectivity
This amendment shall take effect fifteen (15) days after publication in two (2)
newspapers of general circulation in the Philippines.
(SGD.) FE B. BARN
Chairman
--o0o--
SEC Memorandum Circular No. 3, s. of 2009
Submission of Trust Fund Valuation and Compliance
Report of Pre-Need Companies
n line with the monitoring of compliance by pre-need companies on the requirements
covering their trust funds, the Commission hereby issues the following directives to pre-
need companies and trustee banks:
I. Baseline Report
Sec. 1. A one-time independent audit of trust fund accounts of pre-need companies
as of March 31, 2009, shall be conducted to establish baseline information on trust fund
valuation and compliance.
Sec. 2. (a) The Trust Fund Valuation and Compliance (TFVC) Report shall be pre-
pared and submitted directly to the Commission not later than July 15, 2009, by an
independent financial institution or accounting firm with expertise on the requirements on
trust funds, valuation of assets and investment guidelines of the Commission. Such inde-
pendent party shall be engaged by the pre-need company at its own expense.
(b) Subsequent changes in the Report as provided in Part of this Circular,
1026
must be prepared and signed under oath by the Chief Finance Officer and
either by the Compliance Officer or Chief Executive Officer of the pre-need
company.
Sec. 3. The TFVC report shall cover all trust fund accounts of a pre-need company
with all its trustee banks.
Sec. 4. The TFVC report shall contain among others, the following information:
a. Internal Control of Trustee Banks
A discussion on the evaluation of internal control policies and procedures
of the trustee bank/s including findings thereon;
b. Trust Fund Assets
i. A complete description of each trust fund assets including titles/ownership
on each;
ii. A discussion of the procedures conducted to determine the following:
1. Whether or not the trustee has the legal title/interest over each
trust fund asset;
2. Whether or not it has possession/custody or control of the asset;
3. Whether or not the asset is encumbered.
The discussion shall include information on the documents supporting such
title/interest.
iii. A comparison between the valuation for each asset provided by the trustee
and the valuation made by the independent party. t shall include a discussion
on the basis of valuation used by such independent party;
iv. A presentation of the percentage of the amount of each trust fund asset
over total trust fund (i.e., portfolio mix) and investment qualifications (i.e.,
investment grade);
c. Trust Fund Liabilities
i. A complete description of each trust fund liability including the documents
supporting each item;
ii. A discussion on the procedures conducted to determine the validity and
reasonableness of each trust fund liability.
d. Deposits and Withdrawals from the Trust Fund
i. A discussion on the procedures conducted to determine sufficiency of
deposits made to the fund;
ii. A discussion on the procedures conducted to determine any unauthorized
or prohibited withdrawals from the trust fund;
iii. A presentation of the deposits and withdrawals made from the trust fund
for the period ended December 31, 2008 and March 31, 2009;
iv. A discussion on the procedures conducted to determine compliance by
the parties with prescribed trust fees and charges under the Trust Agreement.
e. Divestment Program
f the company has a divestment program to comply with the Guidelines set by
the Commission, a discussion of the said program and the actions taken by
the company based on supporting documents.
f. Findings
The findings may include any or all of the following items:
i. The internal control policies and procedures of the trustee banks are not
sufficient or there are material weaknesses that raise an issue on the reliability
of the monthly reports of the trustee bank;
ii. The deposits made are not in accordance with the prescribed amount;
iii. The asset is not in the name of the trustee;
iv. The asset is not in the possession/custody or control of the trustee;
v. The asset is encumbered or restricted as a collateral under a loan
agreement;
vi. The withdrawals are not for the benefits of planholders;
vii.There are reimbursements by the trustee bank to the pre-need company
for its alleged advances which based on documents were used for the settlement
of benefits of planholders;
viii. The trust fees and charges paid to the trustee bank are not in accordance
with the terms of the Trust Agreement;
ix. The recorded liability is not valid or not supported by documents;
x. The valuation used by the trustee-bank is overstated or understated;
xi. The portfolio mix is not in accordance with the SEC Guidelines;
xii. The asset is not a qualified investment item under the SEC Guidelines;
1028
xii. The company failed to comply with its divestment program.
g. Recommendations.
II. Quarterly Reports
Sec. 1. Subsequent changes in the baseline TFVC report shall be reflected in Quarterly
TFVC reports beginning the quarter ended June 30, 2009 and onwards, and shall be
submitted within forty five (45) days from end of each quarter
Sec. 2. The TFVC report shall be prepared and signed under oath by the Chief
Finance Officer and either by the Compliance Officer or Chief Executive Officer of the pre-
need company.
Sec. 3. The TFVC report shall cover all trust fund accounts of a pre-need company
with all its trustee banks.
Sec. 4. The TFVC report shall contain among others, the following information:
a. Trust Fund Assets
i. A comparison of the trust asset composition and values as of previous and
latest quarters;
ii. A detailed description of the additional asset including titles/ownership
thereof;
iii. A comparison between the valuation for each asset provided by the trustee
and the valuation made by the company. t shall include a discussion on the
basis of valuation used by the trustee bank and the company;
iv. A presentation of the percentage of the amount of each trust fund asset
over total trust fund (i.e., portfolio mix) and investment qualifications (i.e.,
investment grade), as of the reporting quarter end.
b. Trust Fund Liabilities
i. A comparison of the trust fund liabilities of the previous and latest quarter;
ii. A detailed description of the additional liabilities including its supporting
documents;
c. Deposits and Withdrawals from the Trust Fund
i. A comparison of the prescribed deposit for the quarter and the amount
deposits made to the trust fund for the quarter;
ii. A presentation of the withdrawals made from the trust fund for the quarter
including recipients thereof.
d. Divestment Program
f the company has a divestment program to comply with the Guidelines set by
the Commission, a discussion of the said program and the actions taken by the company
based on supporting documents.
e. Requirements Not Complied With
A detailed description of any noted non-compliance with requirements by
the company including its proposed course of actions to address the same.
This Circular shall take effect on June 1, 2009.
FOR THE COMMSSON:
(SGD.) FE B. BARN
Chairman
--o0o--
SEC Memorandum Circular No. 3-A, S. of 2009
Supplement to the Requirements on the Submission of Trust Fund
Valuation and Compliance Report of Pre-need Companies
. To facilitate full compliance with SEC Memorandum Circular No. 3, Series of 2009
(Circular), template forms have been designed and prepared for use in the evaluation
to be conducted by the independent firm (Set 1) and in the updating of the baseline
information by the pre-need companies (Set 2), as follows:
Set 1 - Templates for the Baseline Report
(1) Schedule of Trust Fund Assets: Appendix 1-A*
(2) Schedule of Trust Fund Charges and Liabilities: Appendix 2-A*
(3) Schedule of Required and Actual Deposits: Appendix 3-A*
(4) Schedule of Withdrawals: Appendix 4-A*
(5) Evaluation Sheet on the Divestment Program: Appendix 5-A*
Set 2 - Templates for the Quarterly Reports
(1) Report on Trust Fund Assets: Appendix 1-B*
(2) Report on Trust Fund Charges and Liabilities: Appendix 2-B*
(3) Report on Required and Actual Deposits: Appendix 3-B*
(4) Report on Withdrawals: Appendix 4-B*
(5) Progress Report on the Divestment Program: Appendix 5-B*
(6) Monitoring sheet on Findings of Non-Compliance: Appendix 6*
1030
. The following clarifications are likewise issued relative to the implementation of the
Circular:
(1) The requirements of the Circular, shall cover all trustees, whether banks or non-banks,
which hold trust fund assets of pre-need companies;
(2) An accounting firm that will be engaged for the evaluation shall evaluate whether there
is a possible threat to its independence by reason of its past or present audit or review
engagement with the pre-need company or the trustee of the funds;
(3) Section 4(f)(vii) of the Circular should read as follows: There are reimbursements by
the trustee to the pre-need company for its alleged advances which based on documents
were not used for the settlement of benefits of planholders.
(SGD.) FE B. BARN
Chairperson
--o0o--
Amendment to the Consolidated Scale of Fines
(SEC Memorandum Circular No. 6, Series of 2005)
The Commission En Banc, in its meeting held on May 13, 2009, approved the
amendment of the Consolidated Scale of Fines (SEC Memorandum Circular No. 6, Series
of 2005) by deleting the word Warning as a penalty for the First Offense and including a
sub-group for public companies engaged in the business of providing health and educational
services after paragraph 3 of said Circular as follows:
However, if the violation of the SRC Rule 17.1 and its mplementing Rules and
Regulations is committed more than three (3) times by any of the public companies
enumerated below, the Commission may impose a fine, in lieu of suspension or
revocation, equivalent to the basic penalty plus the daily penalty per current Scale and
increments of P10,000.00 and P100.00 on the basic penalty and the daily penalty,
respectively:
i. Public companies engaged in the business of formal education as defined
under Section 20 of Batas Pambansa Bilang 232 which includes preparatory
grade or the one-year preparatory level prior to Grade , elementary education,
secondary and/or tertiary education; and
ii. Public companies engaged in the business of health care services rendered
by health care institutions as defined under Section 4 (o) (1), Article of Republic
Act 7875, excluding wellness centers and health care institutions engaged
exclusively in out-patient psychotherapy and counseling for mental disorders,
drug and alcohol abuse or dependency treatment, cosmetic surgery, home and
rehabilitation services, optometric services, or normal obstetrical delivery.
Attached as Annex A* is a Table of penalties for public companies engaged in
the business of education and health care services to the public.
The foregoing amendment shall take effect fifteen (15) days from publication in two
(SGD.) FE B. BARN
Chairperson
--o0o--
Penalty for Failure to Comply with the Commissions
Directive to Participate in the Corporate Governance Survey
The Securities and Exchange Commission, under its Memorandum Circular No. 8,
Series of 2008 enjoined all publicly-listed companies to participate as respondents in the
Corporate Governance Survey using the Corporate Governance Scorecard as survey
instrument.
The Commission En Banc in its meeting on May 13, 2009 resolved to adopt the
following administrative penalties for failure to comply with the Commissions directive to
participate in the corporate governance survey:
1
st
Offense Reprimand
2
nd
Offense P25,000.00
3
rd
Offense P50,000.00
This Circular shall take effect fifteen (15) days after publication in two (2) newspapers
of general circulation in the Philippines.
FOR THE COMMSSON:
(SGD.) FE B. BARN
Chairperson
1032
SECURITY AGENCIES AND GUARDS SUPERVISION DIVI-
SION
Policy Guidelines and Procedures for the Conversion of the Current
Two-Year License to Operate (LTO) Renewal Cycle to Five-Year Cycle
with Options
1. REFERENCES:
a. 2003 Revised Rules and Regulations mplementing RA 5487, as amended;
b. SOP No. 05-03, dated 12 March 2003; and
c. RA 6975, as amended.
2. AUTHORITY:
Pronouncement of Director General AVELNO . RAZON, JR. former Chief, PNP, on
August 28, 2008 during the 4th PADPAO Convention and Golden Anniversary in Cebu City,
in accordance with Section 17, RA 5487, as amended.
3. PURPOSE:
This Memorandum Circular prescribes the policy guidelines and procedures in
implementing the conversion of the current Two-Year LTO Renewal Cycle to Five-Year
Renewal Cycle with Options, thru which the regular LTO applicants may choose from
based on their capability to manage, conduct and operate a PSA/PDA, and encompassing
the following major goals:
a. To allow owners/managers/authorized officers or licensees to choose what
options are suitable, feasible and acceptable to their styles of management
and financial capabilities in order to meet the regulatory requirements for the
renewal of regular license and the continued operations of their security services;
b. To identify regulatory measures, ways and means to regulate the operations
of PSAs/PDAs based on the options chosen; and
c. To foster PNP-PADPAO continuing coordination/consultation on matters
pertaining to the well-being of the private security industry.
4. SCOPE/APPLICATION:
The Five-Year LTO Renewal Cycle has to be applied to all PSAs/PDAs with regular
LTOs, particularly in the selection of renewal options. These policy guidelines and procedures
serve as basis for identifying regulatory measures that will review the business operations
of PSAs/PDAs for purposes of issuance of regular license, records keeping and other
regulatory requirements.
5. RATIONALE:
As a regulatory body, the Philippine National Police (PNP), thru the Civil Security
Group-Security Agencies and Guards Supervision Division (CSG-SAGSD) and in
consultation with PADPAO, introduces the applicants for renewal of regular LTOs to available
Options in which they can pursue, in better management, conduct and operations and
with focus, one particular renewal cycle suited to their ability to manage existing and
potential internal/external liabilities. t thus encourages all PSAs/PDAs to strive towards a
more competitive and healthy environment for the private security industry.
6. POLICY GUIDELINES FOR THE 5-YEAR CYCLE WITH OPTIONS:
a. License to Operate has a regulatory dimension and reflects a set of rights
and obligations.
b. All owners/managers/authorized officers/authorized representatives or
licensees of PSAs/PDAs with regular LTOs shall be allowed to choose among
the options available: two-year cycle; three-year cycle; four-year cycle; or five-
year cycle. These options become available to them only upon expiration of
their regular LTOs.
c. Once an option is chosen and applied for, and the corresponding license is
approved/issued, the license cannot be changed during the years it is in effect.
d. Annual, interim and final reports on the management, conduct and operations
of PSAs/PDAs shall be required.
e. The current annual rate of national license and registration fees and penalties
shall apply and the licensee will be charged such fees equivalent to the number
of years the license is in effect.
f. New or Temporary LTO, unless earlier revoked/cancelled/suspended, remains
to have a life of or valid for two (2) years.
7. PROCEDURES FOR RENEWAL OF REGULAR LTO:
Subject to the relevant provisions of the 2003 Revised Rules and Regulations
mplementing RA 5487, as amended, particularly Sec. 8a & c, Sec. 9, Sec 10b, and Sec.
11 of Rule V (License to Operate), the following must comply with the following procedures:
a. The PSA/PDA at the time of filing of application:
a.1. Must write and submit a letter request, dated and signed by the
owner/manager/authorized officer/authorized representative or licensee, and, if
applicable, Secretarys Certificate and Board Resolution confirming/approving
the conversion of the current two (2) Year Regular LTO Renewal Cycle into any
of the available options: three (3) year, four (4) year or five (5) year cycle;
a.2. Must execute and submit an affidavit of undertaking that owner/
manager/authorized officer/authorized representative or licensee shall comply
with the reportorial requirements based on the chose option;
1034
a.3. Should pay the cumulative national license and registration fees and
penalties based on the current annual rate and chosen option; and
Hereunder is the schedule of submission of reportorial requirements:
OPTION DOCUMENTS NEEDED DATE OF SUBMISSION
Option 1
(Two-year cycle) Annual Report Within December of every year.
Two-Year Final Report At the time of filing of
application based on the expiry
date.
Option 2 Annual Report Within December of every year.
(Three-year cycle)
Three-Year Final Report At the time of filing of
application based
on the expiry date.
Option 3 Annual report Within December of every year.
(Four-year cycle)
Two-Year nterim Report After the 2nd year of operation
and within the month after the
anniversary month
of LTO.
Four-Year Final Report At the time of filing of
application based on
the expiry date.
Option 4 Annual Report Within December of every year.
(Five-year cycle)
Three-Year nterim Report After the 3rd year of operation
and within the month after the
anniversary month of LTO.
Five-Year Final Report At the time of filing of
application based on
the expiry date.
9. EFFECTIVITY:
This Memorandum shall take effect fifteen (15) days from the filing of a copy hereof at
the University of the Philippines Law Center in consonance with Sections 3 and 4, Chapter
2 Book V, E.O. 292, otherwise known as Revised Administrative Code of 1987, as
amended.
Chief, PNP
Sugar Order No. 4-A, S. of 2008-2009
Lifting the Suspension of the Verification of A Sugar Quedans
WHEREAS, Sugar Order No. 4, Series of 2008-2009 suspended the verification of
A quedans;
WHEREAS, there is a need to account the whereabouts of outstanding Crop Year
2008-2009 A sugar quedans, and ascertain the available volume of the same for inventory
management;
WHEREAS, requests for verification were received from A sugar quedan holders;
NOW, THEREFORE, under and by virtue of the authority vested in the Sugar
Regulatory Administration (SRA) the following is hereby ordered:
SECTION 1. Verification of A. The suspension of verification of A sugar quedans
declared in Section 1 of Sugar Order No. 4, Series of 2008-2009 is hereby lifted.
SECTION 2. Coverage. This verification shall cover A sugar quedans issued in
Crop Year 2008-2009. All other A sugar quedans declared HOMELESS under Sugar
Order No. 6, Series of 2007-2008 and similar sugar orders are not eligible for verification
under this order.
SECTION 3. This Sugar Order takes effect immediately.
SECTION 4. Provisions of Sugar Orders, Circular Letters, rules and regulations
contrary to or inconsistent with this Sugar Order is hereby revised, modified or revoked.
BY AUTHORTY OF THE SUGAR BOARD
(SGD.) RAFAEL L. COSCOLLUELA
Administrator
--o0o--
Sugar Order No. 10, S. of 2008-2009
Conversion of C Sugar Produced During
Crop Year 2008-2009 to B Sugar
1036
WHEREAS, Section 2 (B) of Executive Order No. 18, Series of 1986 mandates the
SRA to establish and maintain such balanced relation between production and requirement
of sugar and such marketing conditions as will ensure stabilized price levels reasonably
profitable to the producers and fair to consumers;
WHEREAS, Sugar Order No. 1, 1-A, 1-B, 1-C and 1-D, Series of 2008-2009 provided
for C or Reserve Sugar allocation;
WHEREAS, milling operations of sugar mills for Crop 2008-2009 have either been
terminated or already scheduled for termination;
WHEREAS, sugar producers have requested for the timely conversion of C or Reserve
Sugar to help them meet their financial needs for the timely cultivation of their sugarcane
for the next crop year;
NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory
Administration (SRA), the following is hereby ordered:
SECTION 1. Reclassification (Conversion) of C (Reserve) Sugar Produced During
Crop Year 2008-2009 to B (Domestic) Sugar.
All C (Reserve) Sugar produced during Crop Year 2008-2009 shall be converted to
B (Domestic) Sugar according to the following schedule:
C Sugar for Week-ending: Effective Conversion Date:
September 7, 2008 through October 26, 2008 May 17, 2009
November 2, 2008 through November 30, 2008 May 24, 2009
December 7, 2008 through December 28, 2008 May 31, 2009
January 4, 2009 and January 11, 2009 June 7, 2009
January 18, 2009 and January 25, 2009 June 14, 2009
C Sugar for Week-ending: Effective Conversion Date:
February 1, 2009 and February 8, 2009 June 21, 2009
February 15, 2009 and February 22, 2009 June 28, 2009
March 1, 2009 and March 8, 2009 July 5, 2009
March 15, 2009 through March 29, 2009 July 12, 2009
April 5, 2009 through April 26, 2009 July 19, 2009
May 3, 2009 through June 28, 2009 July 26, 2009
All sugar produced after June 28, 2009 shall have no allocation of C or Reserve
Sugar. An appropriate sugar order shall be issued for such purpose.
The C quedan permits covering the sugar subject to conversion, when surrendered
to the issuing mill companies for the purpose of withdrawing the corresponding volume of
sugar therefrom, shall be stamped RECLASSFED AS B OR DOMESTC SUGAR
PURSUANT TO S.O. NO. 10, SERES OF 2008-2009 by the SPROs assigned thereat.
SECTION 2. Consistency. Other provisions of Sugar Orders Nos. 1, 1-A, 1-B, 1-C
and 1-D, Series of 2008-2009 not contrary hereto shall remain in full force and effect.
SECTION 3. Provisions of Sugar Orders, Circular Letters, rules and regulations
contrary to or inconsistent with this Sugar Order is hereby revised, modified or revoked.
Administrator
--o0o--
Sugar Order No. 11, Series of 2008-2009
Moratorium on the Payment of Penalties for
Homeless D, Dx, and De Sugar
WHEREAS, Sugar Order No. 3, Series of 2008-2009, imposes a reinstatement penalty
of P10.00 per Lkg-bag per day on homeless D or World Market sugar, and the same
policy is still in force and effect;
WHEREAS, Sugar Order No. 8, Series of 2008-2009, provided for a moratorium on
the imposition of the above-mentioned reinstatement penalties;
WHEREAS, Sugar Order No. 8-A, Series of 2008-2009, amended the Reinstatement
Fee Table of Sugar Order No. 8, Series of 2008-2009;
WHEREAS, requests have been submitted for the reinstatement of remaining D,
Dx and De quedans that became homeless for various reasons;
WHEREAS, the primary intention of SRA in instituting the moratorium is to flush out
all remaining homeless D quedans and to prevent the leakage of D sugar into the
domestic market;
NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory
Administration (SRA), the following is hereby ordered:
SECTION 1. Moratorium. A moratorium on penalties for reinstatement of D, Dx
and De that became homeless by virtue of Sugar Order Nos. 1, 3, 8 and 8-A, Series of
2008-2009, shall be allowed provided that: (1) a request for reinstatement and payment of
a one-time reinstatement fee of fifty pesos per LKg-bag (P50.00/Lkg-bag) is received/paid
to the SRA on or before June 30, 2009, and (2) a request for verification of such quedans be
applied for by a legitimate sugar trader/exporter/sugar-based food processor for export or
use of a sugar-based food processor.
1038
SECTION 3. All other provisions of Sugar Order Nos. 1, 3, 8 and 8-A, Series of 2008-
2009 remain in full force and effect.
Administrator
BANGKO SENTRAL NG PILIPINAS (BSP)
Circular No. 647, s. 2009 z zz zz 547
Circular Letter No. CL-2009-019 z zz zz 556
BUREAU OF ANIMAL INDUSTRY (BAI)
DA AO No. 06, s. 2009 z zz zz 566
Memorandum Order No. 11, s. 2009 z zz zz 562
BUREAU OF CUSTOMS (BOC)
Customs Adm. Order No. 01-2009 z zz zz 568
Customs Memo Order No. 09-2009 z zz zz 579
BUREAU OF IMMIGRATION (BI)
Memo Circular No. MCL-09-001-A z zz zz 603
BUREAU OF INTERNAL REVENUE (BIR)
Revenue Memo Circular No. 18-2009 z zz zz 610
Revenue Memo Circular No. 22-2009 z zz zz 611
Revenue Memo Order No. 12-2009 z zz zz 612
Revenue Regulations No. 03-2009 z zz zz 609
CEBU PORT AUTHORITY
Memorandum Circular No. 05, s. 2008 z zz zz 616
Memorandum Circular No. 07 z zz zz 615
Memorandum Circular No. 07-A z zz zz 614
COMMISSION ON AUDIT (COA)
Circular No. 2009-002 z zz zz 616
CONSTRUCTION INDUSTRY ARBITRATION
COMMISSION (CIAC)
Resolution No. 05-2009 z zz zz 630
Memorandum Circular No. 2009-01 z zz zz 631
Office Order No. 2009-04 z zz zz 634
DANGEROUS DRUGS BOARD (DDB)
Board Regulation No. 1, s. 2009 z zz zz 639
DEPARTMENT OF AGRICULTURE (DA)
Administrative Order No. 7, s. 2008 z zz zz 658
DEPARTMENT OF ENERGY (DOE)
Dept. Circular No. DC2009-04-0004 z zz zz 687
DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES (DENR)
Administrative Order No. 2009-05 z zz zz 694
Memorandum Order No. 2009-02 z zz zz 698
Code of Conduct and Ethical
Standards of the DENR z zz zz 699
DEPARTMENT OF FINANCE (DOF)
Department Order No. 17-09 z zz zz 709
DEPARTMENT OF HEALTH (DOH)
DEPARTMENT OF PUBLIC WORKS AND
HIGHWAYS (DPWH)
Department Order No. 03-A, s. 2009 z zz zz 735
DEPARTMENT OF SCIENCE AND
TECHNOLOGY (DOST)
Administrative Order No. 002, s. 2009z zz zz 736
Administrative Order No. 004, s. 2009z zz zz 736
SCC-7 Resolution No. 01, s. 2009 z zz zz 736
(DTI)
INDEX VOLUME 20 z zz zz No. 2
1039
Joint DTI-DENR-DA-DOF-
DOH-DILG-DOLE-DOTC
A.O. No. 01, s. 2009 z zz zz 748
DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS (DOTC)
Department Circular No. 2009-06 z zz zz 754
Department Order No. 2009-11 z zz zz 752
(ERC)
Resolution No. 08, s. 2009 z zz zz 756
GOVERNMENT SERVICE INSURANCE
SYSTEM (GSIS)
Resolution No. 204 (17 Dec. 2008) z zz zz 775
Resolution No. 206 (17 Dec. 2008) z zz zz 777
Resolution No. 55 (18 March 2009) z zz zz 779
Resolution No. 64 (01 April 2009) z zz zz 780
(HDMF)
Circular No. 263 z zz zz 780
HOME GUARANTY CORPORATION (HGC)
IRR for the Housing Loans
Restructuring and Condonation
of Penalties Under R.A. 9507 z zz zz 784
INSURANCE COMMISSION (IC)
Circular Letter No. 9-2009 z zz zz 790
LAND TRANSPORTATION FRANCHISING
AND REGULATORY BOARD (LTFRB)
LAND TRANSPORTATION OFFICE (LTO)
Adm. Order No. ACL-2009-017z zz zz 801
Memorandum (31 March 2009) z zz zz 800
Memorandum (27 April 2009) z zz zz 804
Memorandum (04 May 2009) z zz zz 807
Memorandum (05 June 2009) z zz zz 816
Memo Circular No. ACL-2009-1132 z zz zz 801
Office Order No, ACL-2009-148 z zz zz 815
FSA Advisory No. 2009-05 z zz zz 823
Advisory No. 2009-06 z zz zz 823
METRO MANILA DEVELOPMENT
AUTHORITY
NATIONAL ELECTRIFICATION
ADMINISTRATION (NEA)
Memorandum No. 2009-011 z zz zz 856
Memorandum No. 2009-012 z zz zz 857
NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC)
Memo Circular No. 02-04-2009 z zz zz 858
Memo Order No. 02-04-2009 z zz zz 860
1040
Memo Circular No. 01, S. 2009 z zz zz 879
OFFICE OF THE PRESIDENT (OP)
Administrative Order No. 261 z zz zz 884
Executive Order No. 607-Az zz zz 908
Executive Order No. 785 z zz zz 882
Memorandum Order No. 297 z zz zz 883
Memorandum Order No. 299 z zz zz 907
OVERSEAS WORKERS WELFARE
ADMINISTRATION (OWWA)
MOI No. 001-A, s. of 2009 z zz zz 925
MOI No. 003, s. of 2009 z zz zz 926
MOI No. 005, s. of 2009 z zz zz 927
MOI No. 006, s. of 2009 z zz zz 928
PHILIPPINE HEALTH INSURANCE
CORPORATION (PHIC)
PhilHealth Circular No. 09, s. 2009 z zz zz 934
PHILIPPINE NATIONAL POLICE (PNP)
Letter of Instructions 02/09 z zz zz 962
PHILIPPINE OVERSEAS EMPLOYMENT
ADMINISTRATION (POEA)
Advisory No. 01, s. 2009 z zz zz 984
Advisory No. 03, s. 2009 z zz zz 985
Memorandum Circular No. 01, s. 2009z zz zz 986
PHILIPPINE PORTS AUTHORITY (PPA)
Finance Memo Order No. 02-2009 z zz zz 995
Memorandum (08 Dec. 2008) z zz zz 389
Operations Memo Circular No.
04-2009 z zz zz 1004
PhilPost Circular No. 09-08 z 1004
PhilPost Executive Order No. 2009-01 z 1018
PhilPost Memo Circular No. 09-02 z 1019
(SEC)
Memo Circular No. 02, s. 2009 z zz zz 1024
Memo Circular No. 03-A, s. 2009 z zz zz 1029
SECURITY AGENCIES & GUARDS
SUPERVISIONS (PNP)
Memorandum Circular No. 001-09z zz zz 1032
1041
(SRA)
Sugar Order No. 4-A, s. 2008-2009 z zz zz 1035
Sugar Order No. 10, s. 2008-2009 z zz zz 1035
Sugar Order No. 11, s. 2008-2009 z zz zz 1037
1042

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