Volume 11 Number 4 (October to December 2000) - University of the ...

October - December 2000 National Administrative Register 1665 

BANGKO SENTRAL NG PILIPINAS 

Date Filed: 06 October 2000 

Circular No. 259 

Anti-Money Laundering Rules and Regulations for Banks 

Pursuant to Monetary Board Resolution No. 1494 dated 1 September 2000, additional 

anti-money laundering rules and regulations for banks are hereby issued as follows: 

SECTION 1. Issuance of Cashierís, Managerís or Certified Checks. Banks shall not 

issue cashierís, managerís or certified checks or other similar instruments payable to cash, 

bearer, fictitious payee or numbered account. 

When the person purchasing the above-mentioned instruments is not a regular bank 

client, the issuing bank shall require the purchaser to present his/her proof of residence 

together with his/her driverís license, passport, employment I.D. or other photo identification 

card. A register for cashierís managerís or certified checks issued shall be maintained 

by the bank. 

SECTION 2. Sanction - Any violation of the provision of this Circular shall be subject 

to a fine of P30,000 per transaction. 

This Circular shall take effect immediately. 

Adopted: 29 Sept. 2000 


(SGD.) ARMANDO L. SURATOS 

Officer-in-Charge 

óo0oó 


Liquidity Reserves 

The Monetary Board, in its Resolution No. 1716 dated 4 October 2000, (a) increased 

the liquidity reserves against peso demand, savings, time deposit and deposit substitute 

liabilities of universal banks (UBs), commercial banks (KBs) and non-banks with quasi-banking 

functions (NBQBs) and certain types of deposit and deposit substitute liabilities of thrift 

banks (TBs); and (b) maintained the liquidity reserves against demand, savings, and time 

deposits of rural banks (RBs)/cooperative banks (Coop Banks) at zero, as follows: 

A. LIQUIDITY RESERVES AGAINST DEPOSIT/DEPOSIT SUBSTITUTES

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National Administrative Register Volume 1/4 

Category of Banks Liquidity Ratios 

UBs/KBs and NBQBs From 3% to 5% 

TBs From 2% to 4% 

RBs/Coop Banks: To remain at 0% 

1) Demand Deposit To remain at 0% 

2) Savings/Time Deposit To remain at 0% 

The required liquidity reserves may be maintained in the form of short-term marketyielding 

government securities purchased directly from the Bangko Sentral ng Pilipinas 

(BSP)-Treasury Department, pursuant to Circular No. 10 dated 29 December 1993. 

B. REGULAR RESERVES 

The regular reserves on all types of peso deposits and deposit substitute liabilities 

shall be maintained as follows: 

TYPES UBs/KBs TBs RBs/Coop NBQBs 

Banks 

Demand Deposits 9% 8% 7% N.A. 

NOW Accounts 9% 8% 7% N.A. 

Savings Deposits 9% 6% 2% N.A. 

Time Deposits/ 

Negotiable Certificates 

of Time Deposits/Long- 

Term Non-Negotiable Tax- 

Exempt Certificates of 

Time Deposits 9% 6% 2% N.A. 

Deposit substitutes 9% 8% ó 9% 

C. INTEREST ON RESERVE DEPOSITS 

Deposits maintained by all banks and NBQBs with the BSP up to forty percent (40%) 

of the reserve requirement (excluding the liquidity reserve mentioned in Item A of this Circular 

against the combined deposit and deposit substitute liabilities of banks and NBQBs 

allowed to be maintained in the form of short-term market-yielding government securities 

purchased directly from the BSP-Treasury Department) maintained by all banks and NBQBs 

as deposits with the BSP shall continue to be paid interest at four percent (4%) per annum 

based on the average daily balance of said deposits to be credited quarterly. 

This Circular shall take effect on 13 October 2000. The basis for the computation shall 

be the relevant levels of liabilities subject to liquidity reserves, reported starting 6 October 

2000. 

Adopted: 6 October 2000 

FOR THE MONETARY BOARD:





ó o0oó 

Memorandum 

Trust Rules 

Pursuant to Monetary Board Resolution No. 1716 dated 4 October 2000 increasing 

the liquidity reserve requirement for all financial intermediaries, the Rules and Regulations 

on Trust, Other Fiduciary Business and Investment Management Activities (Trust 

Rules) are amended as follows: 

SECTION 1. Reserves Against Peso-Denominated Common Trust Funds - The liquidity 

reserves against peso-denominated common trust funds and such other peso funds which 

partake the nature of collective investment of peso-denominated common trust funds shall 

be increased as follows: 

From To 

a. For universal banks and commercial banks 4% 6% 

b. For thrift banks 4% 6% 

c. For non-bank financial intermediaries with or 

without quasi-banking functions 4% 6% 

The liquidity reserve may be held in the form of short-term market-yielding government 

securities purchased directly from the Bangko Sentral ng Pilipinas (BSP)-Treasury 

Department. 

In addition to the liquidity reserves, the regular reserves against peso-denominated 

common trust funds and such other managed peso funds which partake the nature of collective 

investment of peso-denominated common trust funds of all financial intermediaries 

authorized to engage in trust and other fiduciary business shall be maintained as follows: 

a. For universal banks and commercial banks 6% 

b. For thrift banks 5% 

c. For non-bank financial intermediaries with or without 

quasi-banking functions 6% 

d. For rural banks 4% 

SECTION 2. Reserves Against Trust and Other Fiduciary Accounts (TOFA) - Others 

- In addition to the basic security deposit required under Subsection X405.1 of the Manual of

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Regulations for Banks and Subsection ___405.1 of Book IV of the Manual of Regulations for 

Banks and Other Financial Intermediaries, all financial intermediaries authorized to engaged 

in trust and other fiduciary business shall maintain regular reserves against Trust and 

Other Fiduciary Accounts (TOFA) - Others, except (a) accounts held under administration; 

(b) bond issues under deed of trust or mortgage; (c) custodianship and safekeeping; (d) 

depository/reorganization; (e) employeesí benefit plans under trust; (f) escrow; (g) personal 

trust (testamentary or living trust); (h) executorship; (i) guardianship; (j) life insurance trust; 

and (k) pre-need plans (institutional/individual). 

The regular reserves against TOFA-Others shall be maintained as follows: 






The liquidity reserve, which is in addition to the regular reserve, shall be increased 

from four percent (4%) to six percent (6%). The liquidity reserve may be held in the form 

of short-term market-yielding government securities purchased directly from the BSP-Treasury 

Department. 

Provided, that the reserves on trust and other fiduciary accounts (TOFA) - Others shall 

be provided out of such funds. 

SECTION 3. Form and Composition of Reserves - Deposits maintained by financial 

intermediaries authorized to engage in trust and other fiduciary business with the BSP up to 

forty percent (40%) of the regular reserves against peso-denominated common trust funds 

as well as the regular reserves for TOFA-Others shall continue to be paid interest at 4.0% 

per annum based on the average daily balance of said deposits, to be credited quarterly. 

Deposits maintained by rural banks authorized to engage in trust and other fiduciary 

business with the BSP up to forty percent (40%) of the regular reserves against peso-denominated 

common trust funds as well as the regular reserves for TOFA-Others shall continue 

to be retained at 4.0% per annum based on the average daily balance of said deposits 

to be credited quarterly. 

This Memorandum shall take effect on 13 October 2000. The basis for the computation 

shall be relevant levels of investment and trust accounts subject to liquidity reserves, 

reported starting 6 October 2000. 

Adopted: 6 Oct. 2000 

FOR THE MONETARY BOARD: 



-o0o-




CRPP Facility or Non-Deliverable Forward (NDF) Facility 

The Monetary Board, in its Resolution No. 1716 dated October 4, 2000 approved the 

expansion of the coverage of the Currency Rate Risk Protection Program (the ìCRPP Facilityî) 

otherwise known as the Non-Deliverable Forward (NDF) Facility under Circular No. 

149 dated December 22, 1997, as amended. 

SECTION 1. The CRPP Facility - The CRPP Facility is a non-deliverable forward contract 

(NDF) between the BSP and the universal/commercial bank with the foreign exchange 

obligations of bank clients as the underlying transaction. 

Under the CRPP Facility, a US Dollar-Philippine Peso forward foreign exchange contract 

is entered into whereby the parties agree that instead of the actual delivery of the 

contracted amount, only the net difference between the contracted forward rate and the 

prevailing spot rate shall be settled in pesos at maturity of the contract. Should the eligible 

obligation be denominated in a foreign currency other than the US dollar, the CRPP contract 

shall be denominated in their US dollar equivalent. For the purpose of availing of the CRPP 

Facility, the Bank and its customer shall certify that the availment is being made to hedge a 

foreign exchange requirement under the guidelines set forth in this Circular. 

Universal and commercial banks, including those without derivative license, may 

avail of the CRPP Facility for the specific purpose of hedging the foreign exchange obligations 

of their clients. 

SECTION 2. Coverage - Eligible obligations under the CRPP Facility shall refer to 

Fully Unhedged and without natural hedge foreign exchange (FX) obligations, in amounts 

not less than US$50,000.00, which are current and booked as of September 30, 2000 and 

outstanding as of the date of the application. Past due foreign exchange obligations are not 

eligible. The following are the eligible FX obligations: 

a. Short term FCDU loans (with original maturities of up to one [1] year), that are duly 

registered with BSP-International Operations Department (IOD); 

b. US dollar Trust Receipts; 

c. Foreign Currency Import Bills/Customerís Liabilities Under Acceptances (CLA); and 

d. DA/OA (for oil companies only). 

Foreign exchange obligations of exporters falling under (a) to (c) above shall be eligible 

provided that the exporter shows proof that upon application with the universal/commercial 

bank, he sells foreign exchange for pesos to the bank in an amount at least equal to 

the amount applied for under the facility. The sale of foreign exchange should be supported 

by a bank credit advice, or a document evidencing the sale of foreign exchange duly certified

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by a bank officer with the rank of Senior Vice President or its equivalent and by the bankís 

Compliance Officer. 

For this purpose, unhedged obligations are those without outstanding hedge either 

thru forward contracts, options, or matched foreign currency deposits securing said obligation. 

Obligations with natural hedge, such as those of exporters (except those which qualify 

under the preceding paragraph) and companies with Currency Exchange Rate Adjustments 

(CERA), i.e. public utilities, are not eligible. Partially hedged FX obligations shall be evaluated 

on a case to case basis. 

Foreign exchange obligations incurred after September 30, 2000, including renewed 

obligations, which are eligible under the provisions of this Circular, may be considered on a 

case-to-case basis. In cases wherein the maturity of the foreign exchange obligation is extended, 

a new application is required and the original CRPP availment shall be settled. Only 

one extension of the CRPP contract shall be considered provided the original term plus the 

extended term shall not exceed one year. 

Renewal of obligations eligible for the CRPP Facility shall continue to be so qualified 

provided that the applicant commercial bank shall certify that the obligation applied for is not 

a new one but is the same eligible obligation previously granted access to the CRPP Facility. 

The amount of the renewed obligation may be less but in no case more than the original 

amount. 

SECTION 3. Terms and Conditions - The terms and conditions of the CRPP Facility 

are set forth in the implementing guidelines under Annex I hereto. 

SECTION 4. Reporting Requirements - 

1. A list of eligible foreign exchange obligations outstanding as of September 30, 2000, shall 

be submitted to the BSP-DCB-I/DCB-II in the prescribed format (Annexes 2-A - 2-C); and 

2. Daily reports on executed/preterminated CRPP transactions shall be submitted by the 

bank to the BSP-DCB-I/DCB-II in the prescribed format (Annexes 3 and 3A) not later than 

4:30 P.M. of the following day. 

These reports shall be signed jointly under oath by the bankís authorized signatory 

who shall at least be a Senior Vice President or his equivalent and by the Compliance 

Officer. Said reports shall be considered Category A-1 for purposes of imposing monetary 

penalties on delayed/erroneous reports as prescribed in the Manual of Regulations for Banks. 

SECTION 5. Sanctions - Foreign exchange obligations subject of the CRPP contract 

when found to be ineligible under this Circular shall automatically render the CRPP contract 

cancelled, and the concerned Bank shall be liable to pay monetary penalty of P30,000.00 

per day covering the period from the date the application was filed up to the date the CRPP 

contract was cancelled. In addition, the net differential shall be settled in pesos subject to the 

rules on pretermination under Annex I using the prevailing spot rate on the date of cancellation 

of the CRPP contract. 

SECTION 6. Repealing Clause - This Circular supersedes Circular Nos. 149, 150, 

and 151 and all related Circulars inconsistent herewith.


SECTION 7. Effectivity - This Circular shall take effect immediately. 


MECHANICS: 

(SGD.) RAFAEL B. BUENAVENTURA 

Governor 

Implementing Guidelines for BSP Circular No. 261 the Currency 

Rate Risk Protection Program (The ìCRPP Facilityî) 

Annex 1 

1. Qualified applicants shall file an application in the attached format (Annex 4) with the 

universal/commercial bank certifying that the underlying foreign exchange obligation qualifies 

under this Circular, and that no existing hedge has been put up to cover the said obligation. 

2. The Bank, after reviewing the application and finding the same in order, shall request the 

BSP-Treasury Department to quote the CRPP rate between 1:00 P.M. to 2:30 P.M. Treasury 

will use the AM Philippine Dealing System (PDS) weighted average of the spot transactions 

or the last transacted deal during the morning session, whichever is higher, on deal 

date as the spot rate, or if not available, the previous dayís P.M. PDS weighted average rate 

or the closing rate, whichever is higher. 

3. Details of the deal done between the Bank and the BSP-Treasury shall be transmitted to 

BSP-DCB-I/DCB-II not later than 10:00 A.M. of the following day after deal date. It shall 

include a copy of the Reuters/Telerate conversation document, or if the deal is done thru the 

telephone, a fax copy of the details of the transaction, i.e., name of client, reference number, 

amount of eligible foreign exchange obligation, date contracted and maturity date. 

4. The client, thru the Bank, shall provide the relevant documentary requirements that BSP- 

DCB-I/DCB-II may require. All deals done between the Bank and the BSP-Treasury shall be 

subject to confirmation (approval/disapproval) by the BSP-DCB-I/DCB-II on the basis of the 

results of its evaluation of the documents submitted. 

5. At the end of the day, the universal/commercial bank shall submit a report on all executed/ 

cancelled/preterminated forward contracts to BSP-DCB-I/DCB-II. These transactions shall 

be subject to post-verification by the BSP to ensure compliance with the Circular. 

DOCUMENTARY REQUIREMENTS: 

Unless otherwise indicated, all of the following documents shall be certified as true 

copies by the bankís authorized signatory who shall at least be a Senior Vice-President or its 

equivalent and by the Compliance Officer, and submitted to the BSP-DCB-I/DCB-II together 

with the application to avail of the CRPP Facility: 

1. Short Term FCDU Loans

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- Promissory Note certified by the Head of the Lending Bankís Loans 

Department 

- Certification from lending bank on the date when loan account has been reported 

to BSP-IOD under IOS Form 4. 

2. US Dollar Trust Receipts ($TRs) 

- Letters of Credit, if applicable 

- Commercial Invoice 

- Bill of Lading 

- $ TR draft 

- Trust Receipt Agreement 

3. Foreign Currency Import Bills 



- Letters of Credit 

4. Eligible Foreign Currency Obligations of Exporters 

- In addition to the above listed documentary requirements, a certified Bank Credit 

Advice or Official Receipt evidencing sale of foreign exchange should also be 

submitted. 

5. DA/OA obligations of oil companies 



- Records of Goods Imported (RGI) registered with BSP 

TENORS: 

Tenors will be up to twelve (12) months but the actual tenor of the CRPP contract will 

be co-terminus with the final maturity date or the interest repricing/resetting date of the 

underlying foreign exchange obligation. 

PRICING: 

The BSP-Treasury Department will provide forward rates in tenors of 30, 60, and 90 

days while reserving the right to issue other tenors as it sees fit. Pricing of the non-deliverable 

forward (NDF) contract under the CRPP Facility will be based on this formula: 

NDF Rate = Spot rates (1 + (Peso Interest Rate *) x Tenor/360)) 

óóóóóóóóóóóóóóóóóóóóóóóóóóóóóóóó 

1 + (US Dollar Interest Rate ** x Tenor/360) 

* PHP interest rate will be determined by BSP 

** US Dollar interest rate will be based on SIBOR on Bridge Telerate Page 

7311)


FIXING DATE: 

One business day prior to the maturity date of the CRPP, the fixing rate will be agreed 

upon by the Bank and the BSP, using the AM PDS weighted average rate on page 2920 of 

Bridge Telerate. The net difference between the NDF rate and the fixing rate will be applied 

against the Notional US dollar amount to compute the Peso net settlement amount. If the 

fixing rate is higher/lower than the NDF rate, BSP pays/receives the Peso net settlement 

amount. The Peso settlement amount will then be transferred/delivered at the maturity date 

of the CRPP contract. The applicable formula for computing the net settlement amount will 

be as follows: 

Peso Settlement Amount = (NDF Rate -Fixing Rate) x Notional US Dollar Amount 

PRETERMINATION OF CRPP CONTRACT: 

In case the CRPP contract is preterminated prior to maturity date, settlement of the net 

differential in pesos will be as follows: 

a. If the prevailing spot rate is lower than the NDF contract rate, the client will pay the net 

difference; 

b. If the prevailing spot rate is higher than the NDF contract rate, BSP shall not pay the net 

difference. 

RISK DISCLOSURE STATEMENT FOR BANGKO SENTRAL NG PILIPINAS 

CURRENCY RATE RISK PROTECTION PROGRAM 

(THE ìCRPP FACILITYî) 

To: Name of Client 

We are providing this Risk Disclosure Statement to you in order to draw your attention 

to certain risks associated with your availment of the BSP CRPP Facility (ìTransactionî) and 

to confirm the nature of our relationship with you in the context of the transaction between 

you and us. 

Similar to other financial transactions, the CRPP Facility may provide significant benefits 

and involve a variety of significant risks. 

Before availing of the CRPP Facility, you should ensure that you fully understand the 

nature of the transaction and the terms of the transaction, the relevant risk factors, the 

nature and the extent of your risk of loss and the contractual relationship into which you are 

entering. You should carefully evaluate whether the Transaction is appropriate for you in 

light of your objective, experience, financial and operational resources, and other relevant 

circumstances and whether you have the operational resources in place to monitor the associated 

risks and contractual obligations over the term of the Transaction. 

The CRPP Facility may involve risks, which include, among others, the risk of adverse 

or unanticipated market, financial or political developments, risk of counterparty including 

but not limited to risk of default and settlement risk, other credit and enforcement risks. Risk 

of illiquidity and related risks, and operations risks.

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As in any financial transaction, you should ensure that you understand the requirements 

applicable to you that are established by your regulators or by your board of directors 

or other governing body. You should also consider the legal, tax and accounting implications 

of availing of the CRPP Facility. 

In availing of the CRPP Facility with us, you should also understand that we are acting 

solely in the capacity of an armís length contractual counterparty and not in the capacity of 

your financial adviser or fiduciary unless we have so agreed in writing and then only to the 

extent so provided. Whether or not we have so agreed in writing and then only to the extent 

so provided. Whether or not we have established a written financial advisory or fiduciary 

relationship we may from time to time have substantial long or short positions in, and may 

make a market or otherwise buy or sell instruments identical or economically related to the 

derivative activity into with you. We may have business or other commercial relationship 

with the BSP. 

THIS BRIEF STATEMENT DOES NOT PURPORT TO DISCLOSE ALL OF THE RISKS 

OR OTHER RELEVANT CONSIDERATIONS OF AVAILING OF THE CRPP FACILITY. 

YOU SHOULD REFRAIN FROM AVAILING OF SAID FACILITY UNLESS YOU FULLY 

UNDERSTAND ALL SUCH RISKS AND HAVE INDEPENDENTLY DETERMINED THAT 

THE ACTIVITY IS APPROPRIATE FOR YOU. 

YOU SHOULD NOT CONSTRUE THIS DISCLOSURE STATEMENT AS BUSINESS, 

LEGAL, TAX OR ACCOUNTING ADVICE OR AS MODIFYING APPLICABLE LAW. YOU 

SHOULD CONSULT YOUR OWN BUSINESS, LEGAL, TAX AND ACCOUNTING ADVIS- 

ERS WITH RESPECT TO THE TRANSACTION. 


óo0oó 

Memorandum 

Deferment of the Imposition of Penalties for 

Delayed/Erroneous/Incomplete Reports 

_________________________ 

Banks Authorized Signatory 

In consonance with the approval of the Governor of the request of the Rural Bankers 

Association of the Philippines (RBAP) for deferment of the imposition of penalties for noncompliance 

therewith, the following shall be observed: 

1. The timetable for the submission of the revised periodic reports including the Weekly 

Report on Required and Available Reserves (WRRAR) which report, upon advice, will eventually 

be replaced by the Consolidated Daily Report of Condition (CDRC), as provided under 

BSP Circular No. 249 shall still be followed. 

2. The imposition of penalties for delayed, incomplete or erroneous reports (including the 

use of old report formats), except those concerning the SME and Agri-Agra Credit, shall be 

deferred until March 31, 2001.


Adopted: 11 Oct. 2000 

Date Filed: 10 November 2000 

(SGD.) ALBERTO V. REYES 

Deputy Governor 

óo0oó 


FOREX Corporations 

The Monetary Board, in its Resolution No. 1870 dated 26 October 2000, approved the 

following guidelines on foreign exchange corporations/corporations engaged in foreign exchange 

trading activities that are subsidiaries or affiliates of banks, quasi-banks and nonbank 

financial intermediaries: 

1. For sales of foreign exchange of $10,000 or more to residents for trade and non-trade 

purposes, the Forex corporation shall require a written notarized application and supporting 

documents from the purchaser of the foreign exchange; 

2. The Forex corporation shall see to it that this limit on the sale of foreign exchange for trade 

and non-trade purposes is not breached by the splitting of a foreign exchange purchase into 

smaller amounts so as to make it appear that the purchase does not violate the prescribed 

limit; 

3. There is deemed to be splitting of foreign exchange if the Forex corporation sells foreign 

exchange to any one purchaser, within a fifteen (15) banking day period, in such individual 

amounts which, when combined, amount to $10,000 or more; and 

4. Forex corporations shall be required to increase their paid-up capital to at least P50.0 

million within a period of six (6) months from issuance date of this Circular. 





Governor 

óo0oó 


Pre-Termination of CRPP Contract

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The Monetary Board, in its Resolution No. 1912 dated October 31, 2000, decided to 

amend the provision on the Pre-termination of a CRPP Contract, under Annex 1 of this 

Circular No. 261 dated October 12, 2000, to read as follows: 

Settlement of the CRPP contract between the Bank and the BSP prior to the original 

contract maturity date shall be allowed, subject to the following conditions: 

1. The corresponding foreign exchange (FX) obligation of the borrower with the Bank, subject 

to the CRPP contract, shall be paid in full or in an amount at least equal to the amount of 

the CRPP contract; 

2. Proof of payment of the underlying FX obligation, together with the Bankís request for pretermination, 

certified/signed by a Senior Vice President or his equivalent and by the Compliance 

Officer, shall be submitted to the DCB I/II; 

3. The borrower/client shall not be allowed to avail of the CRPP facility (or a new CRPP 

contract) using the same underlying foreign exchange obligation; 

4. Pre-termination shall be allowed only after post-verification of the documents submitted 

has been completed by the BSP, or not earlier than fifteen (15) calendar days from the date 

of the CRPP contract; and 

5. A new forward contract rate plus a pre-termination fee based on current market rates shall 

be determined by the BSP-Treasury on the date the CRPP contract is pre-terminated. 

However, if post verification shows no actual payment of the FX obligation was made 

and manner of payment was thru renewal of the loan under a new promissory note, or by 

another form of FX obligation, sanctions on the cancellation of a CRPP contract under Circular 

No. 261 shall apply. 




Governor 

óo0oó 


Rules on Settlement of Transactions Involving Interbank 

Loans and Government Securities Under Repurchase Agreements 

with the Bangko Sentral ng Pilipinas (BSP). 

The Monetary Board, in its Resolution No. 1813, dated October 13, 2000, approved 

the following amendments to the rules on settlement of transactions involving interbank 

loans and government securities under repurchase agreements with the Bangko Sentral ng 

Pilipinas (BSP).


Settlement Procedures for Interbank Loan Transactions and Purchase 

and Sale of Government Securities under Repurchase Agreements with 

the Bangko Sentral ng Pilipinas (BSP). Interbank loan transactions (call and 

term) among banks and non-bank financial intermediaries performing quasi-banking 

functions (NBQBs) and purchase and sale of government securities under 

repurchase agreements (GS/RP) between and among banks and NBQBs and 

BSP in connection with the latterís Open Market Operations shall be settled gross, 

on a trade-for-trade basis and with finality subject to the availability of balances in 

the deposit reserves maintained by banks in the BSP in accordance with the 

following procedures: 

1. The lender, in the case of lending/borrowing and purchaser in GS/RP transaction, and the 

borrower, in the case of collection/repayment and repurchaser in a GS/RP transaction, should 

transmit an IBCL-MIPs (System) Fund Transfer Instructions (Instruction) to the Philippine 

Clearing House Corporation (PCHC) which shall forward the transaction electronically to 

BSP. Each transacting party shall use its confidential ID and password to activate the System 

and initiate/authorize its transaction. The electronic debit instruction shall undergo System 

authentication by the PCHC and BSP. Authentication confirms that the Instructions 

contain the proper approvals from authorized officers of the originating institution. 

2. BSP shall settle in the deposit reserves maintained by banks and NBQBs in the BSP the 

individual interbank loan and GS/RP transaction within the following settlement time frame: 

From 9:00 AM to 9:45 AM 

Only lending/borrowing to cover shortfall in deposit reserves with BSP arising 

from the results of the AM Returned Checks and Other Clearing Items (COCI) 

Clearing conducted pursuant to Circular 214, valued on the same date as the 

date of original presentation of the COCI to PCHC and BSP regional clearing 

centers (RCCs). 

From 10:00 AM to 4:00 PM 

All interbank loan transactions and GS/RP transactions to be given value on 

the date of the loan grant/repayment and GS purchase/repurchase. 

From 5:30 to 6:30 PM 

Only lendings/borrowings to cover the shortfall in reserve deposits with BSP 

arising from losses arising from the regular afternoon check clearing to be given 

value on the date of the loan grant/repayment and GS purchase/repurchase. 

3. BSP is not obliged to effect the transfer of funds in the deposit reserves maintained by 

banks and NBQBs in the BSP if there is no sufficient balance in said deposit reserves of the 

transacting party whose account shall be debited in the BSP books. 

This Circular supersedes, amends or modifies provisions of existing circulars, 

regulations and agreements that are inconsistent herewith. 

This Circular shall take effect on December 6, 2000.

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Adopted: 7 Nov. 2000 


FOR THE MONETARY BOARD: 


Governor 

--o0o-- 

Circular Letter 

Deletion of the Socialist Republic of Vietnam 

from the Coverage of Letter of Instructions No. 444 

For your information and guidance, attached is a copy, transmitted to BSP by the 

Kagawaran ng Ugnayang Panlabas, of Executive Order No. 275 dated 30 August 2000 

entitled ìDirecting the Committee on Scientific and Technical Cooperation with Socialist Countries 

to Delete the Socialist Republic of Vietnam from the List of Countries Covered by Letter 

of Instructions No. 444î. Philippine businessmen who engage in export/import transactions 

with Vietnam shall no longer be required to submit export/import clearances issued by the 

Philippine International Trading Corporation (PITC). 

Please inform your exporter-and-importer-clients accordingly. 



(SGD.) AMANDO M. TETANGCO, JR. 


óo0oó 


FOREX Corporationsí Report 

In accordance with Monetary Board Resolution No. 1870 dated 26 October 2000, Circular 

Letter dated March 8, 2000 is re-issued. 

Pursuant to Section 80 of Republic Act No. 7653 (The New Central Bank Act) and 

Monetary Board Resolution No. 1379 dated October 1, 1999, all forex corporations/corporations 

engaged in foreign exchange trading activities that are not subsidiaries/affiliates of 

banks, quasi-banks and/or non-bank financial intermediaries shall submit a monthly report 

of their purchases/sales and daily position of foreign exchange to the Department of Commercial 

Banks II of the Bangko Sentral ng Pilipinas in the prescribed forms hereto attached. 

The Chief Executive Officer (CEO) or President of the Corporation shall certify under 

an oath the accuracy of the data contained in the report.


The report submitted may be subject to inspection, as may be appropriate by authorized 

representatives of the Bangko Sentral ng Pilipinas to verify the accuracy of the reported 

data/information. Accordingly, forex corporations shall make available their books of 

accounts/records and related documents for inspection and cooperate with the inspectors 

as necessary to facilitate the verification of their reports. 

Non-compliance hereof or any false reporting or misrepresentation of reported data/ 

information shall be subject to a monetary fine of P30,000 per day (until complied) and the 

penal provision under Section 36 of Republic Act No. 7653 (The New Central Bank Act). 

This Circular Letter shall take effect 15 days after the date of the Circular Letter. 




Governor 

óo0oó 


Liquidity Reserves of Thrift Banks 

The Monetary Board, in its Resolution No. 1820 dated 20 October 2000, decided to 

exclude thrift banks from the increase in liquidity reserves against peso demand, 

savings, time deposit and deposit substitute liabilities which took effect on 13 and 20 

October 2000. Section A of Circular Nos. 260 and 262 are hereby amended to read as 

follows: 

Amendment to Circular No. 260 

A. LIQUIDITY RESERVES AGAINST DEPOSIT/DEPOSIT SUBSTITUTES 



TBs To remain at 2% 


1) Demand Deposit To remain at 0% 

2) Savings/Time Deposits To remain at 0% 


government securities purchased directly from the Bangko Sentral ng Pilipinas (BSP)- 

Treasury Department, pursuant to Circular No. 10 dated 29 December 1993.

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Amendment to Circular No. 262 

A. LIQUIDITY RESERVES AGAINST DEPOSIT/DEPOSIT SUBSTITUTES 






1. Demand Deposits To remain at 0% 

2. Savings/Time Deposits To remain at 0% 


government securities purchased directly from the Bangko Sentral ng Pilipinas 

(BSP)-Treasury Department, pursuant to Circular No. 10 dated 29 December 1993. 




Governor 

óo0oó 

Memorandum 

Liquidity Reserves; Amendment of Trust Rules 

Pursuant to Monetary Board Resolution No. 1820 dated 20 October 2000 excluding 

thrift banks from the increase in the liquidity reserves which took effect on 13 and 20 

October 2000, Sections 1 and 2 of the Rules and Regulations on Trust, Other Fiduciary 

Business and Investment Management Activities (Trust Rules), as contained in 

the Memorandum to All Banks and Other Financial Intermediaries Performing Trust, 

Other Fiduciary Business and Investment Management Activities dated 6 and 18 October 

2000 are hereby amended as follows: 

Amendment to Memorandum dated 6 October 2000 

SECTION 1. Reserves Against Peso-Denominated Common Trust Funds 

The liquidity reserves against peso-denominated common trust funds and such other 

peso funds which partake the nature of collective investment of peso-denominated common 

trust funds shall be as follows: 


b. For non-bank financial intermediaries with or without 


c. For thrift banks To remain at 4%



securities purchased directly from the Bangko Sentral ng Pilipinas (BSP)-Treasury Department. 



investment of peso-denominated common trust funds of all financial intermediaries authorized 

to engaged in trust and other fiduciary business shall be maintained as follows: 



c. For non-banks financial intermediaries with or without quasi-banking 

functions 6% 


SECTION 2. Reserves Against Trust and Other Fiduciary Accounts (TOFA) - Others 

In addition to the basic security deposit required under Subsection X405.1 of the Manual 

of Regulations for Banks and Subsection 4405Q.1 of the Manual of Regulations for Non- 

Bank Financial Institutions, all financial intermediaries authorized to engage in trust and 

other fiduciary business shall maintain regular reserves against Trust and Other Fiduciary 

Accounts (TOFA) - Others, except (a) accounts held under administration; (b) bond issues 

under deed of trust or mortgage; (c) custodianship and safekeeping; (d) depository/reorganization; 

(e) employeesí benefit plans under trust; (f) escrow; (g) personal trust (testamentary 

or living trust); (h) executorship; (i) guardianship; (j) life insurance trust; and (k) preneed 

plans (institutional/individual). 




c. For non-bank financial intermediaries with or without quasibanking 

functions 6% 


The liquidity reserve, which is in addition to the regular reserve, shall be increased 

from four percent (4%) to six percent (6%), except for thrift banks which shall continue 

to maintain liquidity reserves at 4 percent (4%). The liquidity reserve may be held 

in the form of short term market-yielding government securities purchased directly from the 

BSP-Treasury Department. 

Provided, that the reserves on trust and other fiduciary accounts (TOFA) - Others shall 

be provided out of such funds. 

Amendment to Memorandum dated October 18, 2000 

SECTION 1. Reserves Against Peso-Denominated Common Trust Funds 

The liquidity reserves against peso-denominated common trust funds and such other 

peso funds which partake the nature of collective investment of peso-denominated common 

trust funds shall be as follows:

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b. For thrift banks To remain at 4% 



The liquidity reserve may be held in the form of short-term market yielding government 

securities purchased directly from the Bangko Sentral ng Pilipinas (BSP)-Treasury Department. 



investment of peso-denominated common trust funds of all financial intermediaries authorized 

to engage in trust and other fiduciary business shall be maintained as follows: 






SECTION 2. Reserves Against Trust and Other Fiduciary Accounts (TOFA) -Others 

In addition to the basic security deposit required under Subsection X405.1 of the Manual 

of Regulations for Banks and Subsection 4405Q.1 of the Manual of Regulations for Non- 

Bank Financial Institutions, all financial intermediaries authorized to engaged in trust and 

other fiduciary business shall maintain regular reserves against Trust and Other Fiduciary 

Accounts (TOFA) - Others, except (a) accounts held under administration; (b) bond issues 

under deed of trust or mortgage; (c) custodianship and safekeeping; (d) depository/reorganization; 

(e) employeesí benefit plans under trust; (f) escrow; (g) personal trust (testamentary 

or living trust); (h) executorship; (i) guardianship; (j) life insurance trust; and (k) preneed 

plans (institutional/individual). 







The liquidity reserve, which is in addition to the regular reserve, shall be as follows: 


b. For thrift banks To remain at 4% 




securities purchased directly from the BSP-Treasury Department.


Provided, that the reserves on trust and other fiduciary accounts (TOFA) - Others 

shall be provided out of such funds. 


Date Filed: 08 December 2000 


Governor 

óo0oó 


Computation of Penalties Under P.D. 717 (Agri-Agra Law) 

This is to clarify the provision of Item A.1 of Subsection X341.10 of the Manual of 

Regulations, as amended by Circular 236, which provides that for non-compliance/undercompliance 

with the mandatory credit allocation for agri-agra credit, ìa daily fine in proportion 

to degree of compliance shall be imposed depending on the total assets of the banks as 

of reporting periodî. 

A sample computation of penalties to be imposed on a bank for under-compliance/ 

non-compliance with the requirements of the Agri-Agra Law is illustrated below: 

Illustration A: 

A bank with total assets of P100 million has a degree of compliance with the agri-agra 

credit allocation requirement of 45% i.e. only 45% of the required 25% of its loanable funds 

was allocated for agri-agra purposes. 

Formula: Maximum Daily Fine x Degree of under-compliance x # of days with under 

compliance 

Where: Actual Ratio of Compliance with: 

10% Credit Allocation Requirement 5.00% 

15% Credit Allocation Requirement 6.25% 

25% Total Agri-Agra Credit Requirement 11.25% 

Degree of Compliance 45.00% 

Degree of under-compliance 100% - (11.25%/25%) 55.00% 

Maximum Daily Fine for under-compliance 

(for banks with assets of P100 million and below) P100.00 

Assuming the 55% undercompliance remained 

uncorrected for 15 days from the end of ref. quarter 

Daily Penalty (P100.00 x 55%) P55.00 

Number of days with under-compliance 15.00 

Amount of Penalty P825.00 

Illustration B: 

Bank A with total assets of P100 million has a degree of compliance with the agri- agra 

credit allocation requirement of 50% and with agri-credit of 133% while Bank B with total

1684 


assets of P100 million has a degree of compliance with the agra credit of 120% and with agri 

credit of 86.71%. It is assumed that the rule on offsetting, i.e. excess compliance in the 10% 

agra credit may be used to offset a deficiency, if any, in the 15% agri-credit, but not viceversa, 

was complied. 

Bank A Bank B 

Where: Actual Ratio of Compliance with: 

a. 10% Credit Allocation Requirement 5% 12% * 

b. 15% Credit Allocation Requirement 20% ** 13% 

c. 25% Total Agri-Agra Credit Requirement 25% 25% 

Total degree of compliance: Bank A (5% + 15%) : 25% 80% 

Bank B (12% + 13%) : 25% 100% 

Total degree of under-compliance 20% 0 

Maximum Daily Fine for under-compliance 

(for banks with assets of P100 million and below) P100.00 100.00 

Daily Penalty (P100.00 x total degree of u/compliance) P 20.00 ó 

Number of days with under-compliance 15 ó 

Amount of Penalty P300.00 ó 

* Excess compliance is eligible for offsetting 

** Excess compliance is not eligible for offsetting 

For information/guidance. 





óo0oó 


Outsourcing of Banking Functions 

Pursuant to Monetary Board Resolution No. 2076 dated November 24, 2000, the following 

rules and regulations are hereby issued to implement Section 55.1 (e) of Republic 

Act (R.A.) No. 8791, the General Banking Law of 2000. 

SECTION 1. Duties and Responsibilities of Banks and their Directors/Officers in All 

Cases of Outsourcing of Banking Functions. When outsourcing of banking functions is allowed 

by law and under this circular, all banks concerned shall: 

1. carry out the same in accordance with proper standards, ensuring the integrity of the date, 

systems and controls of the banks and subject to the supervisory, regulatory and adminis-


trative authority of the Bangko Sentral ng Pilipinas (BSP) over the banks and their directors/ 

officers; 

2. be responsible for the performance thereof in the same manner and to the same extent as 

it was before the outsourcing; 

3. comply with all laws and regulations governing the banking activities/services performed 

by the qualified service providers in its behalf such as but not limited to keeping of records 

and preparation of reports, signing authorities, internal control and clearing regulations; and 

4. manage, monitor and review on an ongoing basis the performance by the qualified service 

providers of the outsourced banking activities/services. 

SECTION 2. Prohibition Against Outsourcing Certain Banking Functions. 

SECTION 2.1 No bank or any director, officer, employee or agent thereof shall 

outsource inherent banking functions. For purposes of this circular, outsourcing 

of inherent banking functions shall refer to any contract between the bank and a 

service provider for the latter to supply, or any act whereby the latter supplies, the 

manpower to service the deposit transactions of the former. 

SECTION 2.2 Banks cannot outsource management functions except as may be 

authorized by the Monetary Board when circumstances justify. 

SECTION 3. Outsourcing of Information Technology Systems/Processes. Subject to 

prior approval of the Monetary Board, banks may outsource all information technology systems 

and processes except for functions excluded in Section 3.1 

SECTION 3.1 Certain functions affecting the ability of the bank to ensure the fit of 

technology services deployed to meet its strategic and business objectives and 

to comply with all pertinent banking laws and regulations, such as but not limited 

to strategic planning for the use of information technology; determination of system 

functionalities; change management inclusive of quality assurance and testing; 

service level and contract management; and security policy and administration, 

may not be outsourced. Subject to prior approval of the Monetary Board and 

submission of the same documentary requirements in Section 3.2 hereof, consultants 

and/or service providers may be engaged to provide assistance/support 

to the bank personnel assigned to perform such functions. 

SECTION 3.2 A bank intending to outsource information technology systems 

and processes shall submit the following documents to BSP which shall treat the 

same as strictly confidential: 

1. Proposed contract between the bank and the service provider which should, at 

a minimum, include all the following: 

a. Complete description of the work to be performed or services to be provided; 

b. Fee Structure;

1686 


c. Provisions regarding on-line communication availability, transmission line 

security, and transaction authentication; 

d. Responsibilities regarding hardware, software and infrastructure upgrades; 

e. Provisions governing amendment and pretermination of contract; 

f. Mandatory notification by the service provider of all systems changes that 

will affect the bank; 

g. Details of all security procedures and standards; 

h. Responsibility, fines, penalties and accountability of the service provider for 

errors, omissions and frauds; 

i. Confidentiality clause covering all data and information; solidary liability of 

service provider and bank for any violation of R.A. No. 1405, the Bank Deposits 

Secrecy Law; actions that the bank may take against the service provider for 

breach of confidentiality or any form of disclosure of confidential information; and 

the applicable penalties; 

j. Segregation of the data of the bank from that of the service provider and its 

other clients; 

k. Disaster recovery/business continuity contingency plans and procedures; 

l. Adequate insurance for fidelity and fire liability; 

m. Ownership/maintenance of the computer hardware, software (program 

source code), user and system documentation, master and transaction data files; 

n. Guarantee that the service provider will provide necessary levels of transition 

assistance if the bank decides to convert to other service providers or other 

arrangements; 

o. Access to the financial information of the service provider; 

p. Access of internal and external auditors to information regarding the 

outsourced activities/services which they need to fulfill their respective responsibilities; 

q. Access of BSP to the operations of the service provider in order to review 

the same in relation to the outsourced activities/services; 

r. Provision which requires the service provider to immediately take the necessary 

corrective measures to satisfy the findings and recommendations of BSP 

examiners and those of the internal and/or external auditors of the bank and/or 

the service provider; and


s. Remedies for the bank in the event of change of ownership, assignment, 

attachment of assets, insolvency, or receivership of the service provider. 

2. Minutes of Meetings of the Board of Directors of the bank concerned signed by the majority 

thereof, certified by the Secretary and attested by the President documenting their discussions 

on the following: 

a. The benefits and advantages of outsourcing with respect to, among others, its 

role and contribution to the accomplishment of the strategic and business plans 

of the bank as well as the economy, efficiency and quality of its over-all operations; 

b. The careful and diligent evaluation, prior to selecting the service provider with 

which it is entering into an outsourcing contract, by the bank of various service 

providers and their proposals, including their reputation, financial condition, cost 

for development, maintenance and support, internal controls, recovery processes, 

service level agreements, availability of competent, technically qualified and experienced 

personnel, strategic or convenient location of support services and 

such similar other considerations; 

c. The creation, organization and membership of a senior management oversight 

committee to handle and oversee the efficient implementation and monitoring of 

the applications/operations of the service provider to ensure that the same is in 

accordance with the existing information technology initiatives, policies and guidelines 

of the bank; the list of the members of such committee, its organizational 

chart, and a detailed description of the roles and responsibilities of its members 

must be included in the Minutes of the Meeting or submitted as attachments 

thereto; 

d. The creation, organization and membership of a help desk to resolve all queries, 

problems and other concerns arising from the applications/operations rendered 

by the service provider, and 

e. The systems and user acceptance tests that will be conducted by the service 

provider before full implementation of the outsourced systems/processes and 

the unsatisfactory results of which shall be valid ground to rescind the contract 

with the service provider. 

3. Profile of the selected service provider or the non-bank partner, in case of joint ventures 

and other similar arrangements, which should include: 

a. Most recent and complete financial and operational information; 

b. Track record; 

c. List of clientele, particularly banks and the services provided thereto by the 

service provider; and

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d. At the option of the service provider or non-bank partner, other documents 

demonstrative of its competence and reputation in the field of information 

technology as applied to banking operations. 

SECTION 4. Outsourcing of Other Banking Functions - 

SECTION 4.1 Subject to prior approval of the Monetary Board, banks may outsource 

data imaging, storage, retrieval and other related systems; clearing and processing of checks 

not included in the Philippine Clearing House System; printing of bank deposit statements; 

and such other activities as may be determined by the Monetary Board. The bank concerned 

must submit the same documentary requirements listed in Section 3.2 hereof, except 

where they exclusively pertain to information technology operations. 

SECTION 4.2 Banks may outsource credit card services; printing of bank loan statements 

and other non-deposit records, bank forms and promotional materials, credit investigation 

and collection; processing of export, import and other trading transactions; transfer 

agent services for debt and equity securities; property appraisal; property appraisal; property 

management services; messenger, courier and postal services; security guard services; 

vehicle service contracts; janitorial services; and such other activities as may be 

determined by the Monetary Board. 

SECTION 5. Service Providers - When allowed by law and under this circular, banks 

may enter into outsourcing contracts only with service providers with demonstrable technical 

and financial capability commensurate to the services to be rendered. 

SECTION 6. Review of Subsisting Outsourcing Contracts - Within six (6) months from 

the effectivity of this circular: 

1. all banks should submit a list of all their existing contracts with service providers, 

detailing the: 

a. Services/activities being outsourced; 

b. Terms of the contracts; 

c. Measures, if any, undertaken by the bank and/or service provider to ensure 

the secrecy of bank deposits and confidentiality of all other data and 

information; and 

d. Such other information as may be necessary to show compliance with the 

pertinent provisions of this circular or be required by the Monetary Board; and 

2. for outsourcing contracts not in accordance with this circular, the following alternative 

courses of action are available to the bank concerned: 

a. preterminate said contracts; 

b. renegotiate or remedy the same to comply with this circular and submit the 

amendments thereto or new contracts to the BSP; or 

c. submit a program of compliance to the BSP. 

SECTION 7. Penalties - Violation of this circular shall be subject to Sections 34, 35, 36, 

and 37 of R.A. No. 7653, the New Central Bank Act. If the offender is a director or officer of 

a bank, the Monetary Board may also suspend or remove such director or officer.


SECTION 8. Repeal of Section X169 of the Manual of Regulations for Banks (MORB) 

- This circular supersedes the provisions of Section X169 of the MORB. 

SECTION 9. Effectivity - This circular shall take effect immediately. 

Adopted: 5 Dec. 2000 



Governor 

óo0oó 


New Guidelines Concerning Electronic Banking Activities 

The Monetary Board, in its Resolution No. 2130 dated December 8, 2000, approved 

the following new guidelines concerning electronic banking activities: 

1. Banks wishing to provide and/or enhance existing electronic banking services shall submit 

to the BSP an application describing the services to be offered/enhanced and how it fits 

the bankís overall strategy. This shall be accompanied by a certification signed by its President 

or any officer of equivalent rank and function to the effect that the bank has complied 

with the following minimum pre-conditions: 

a. An adequate risk management process is in place to assess, control, monitor 

and respond to potential risks arising from the proposed electronic banking activities; 

b. A manual on corporate security policy and procedures exists that shall address 

all security issues affecting its electronic banking system, particularly the 

following: 

i. Authentication - establishes the identity of both the sender and the receiver; 

uses trusted third parties that verify identities in cyberspace; 

ii. Non-repudiation - ensures that transactions can not be repudiated or presents 

undeniable proof of participation by both the sender and the receiver in a 

transaction; 

iii. Authorization - establishes and enforces the access rights of entities (both 

persons and/or devices) to specified computing resources and application functions; 

also locks out unauthorized entities from physical and logical access to the 

secured systems; 

iv. Integrity - assures that the data has not been altered; 

v. Confidentiality - ensures that no one except the sender and the receiver of 

the data can actually understand the data.

1690 


c. The system had been tested prior to its implementation and that the test results 

are satisfactory. As a minimum standard, appropriate systems testing and 

user acceptance testing should have been conducted; and 

d. A business continuity process and manual have been adopted which should 

include a section on electronic banking channels and systems. 

2. The BSP, thru the Technical Working Group on Electronic Banking, shall pre-screen the 

overall financial condition as well as the applicant-bankís compliance with the BSP rules and 

regulations based on the latest available Bank Performance Rating (BPR) and Report of 

Examination (ROE) including CAMELS. 

The Working Group shall ensure that the applicant bankís overall financial condition can 

adequately support its electronic banking activities and that it shall have complied with certain 

comprehensive prudential requirements such as, but not limited to, the following: 

a. Minimum capital requirement and net worth to risk assets ratio; 

b. Satisfactory solvency, liquidity and profitability positions; 

c. CAMELS composite rating of at least 3 (this number, however can be flexible 

depending on other circumstances prevailing), and with at least a moderate 

risk assessment system (RAS) based on the latest regular examination; 

d. There are no uncorrected major findings/exceptions noted in the latest BSP 

examination. 

3. Based on the recommendation of the Technical Working Group on Electronic Banking, 

the Deputy Governor, SES, shall approve in principle the application so that banks may 

immediately launch and/or enhance their existing electronic banking services. 

4. Banks shall be informed of the conditional approval of the DG, SES and they shall in turn 

notify the BSP on the actual date of its launching/enhancement. 

5. Within thirty (30) calendar days from such launching/enhancement, banks shall submit to 

the BSP thru the Supervisory Reports and Studies Office (SRSO) for evaluation, the following 

documentary requirements: 

a. A discussion on the banking services to be offered/enhanced, the business 

objectives for such services and the corresponding procedures, both automated 

and manual, offered through the electronic banking channels; 

b. A description or diagram of the configuration of the bankís electronic banking 

system and its capabilities showing (i) how the electronic banking system is linked 

to other host systems or the network infrastructure in the bank; (ii) how transaction 

and data flow through the network; (iii) what types of telecommunications 

channels and remote access capabilities (e.g. direct modem dial-in, internet access, 

or both) exist; and (iv) what security controls/measures are installed; 

c. A list of software and hardware components indicating the purpose of the software 

and hardware in the electronic banking infrastructure;


d. A description of the security policies and procedures manual containing (i) a 

description of the bankís security organization; (ii) definition of responsibilities for 

designing, implementing, monitoring information security measures; and (iii) established 

procedures for evaluating policy compliance, enforcing disciplinary measures 

and reporting security violations; 

e. A brief description of the contingency and disaster recovery plans for electronic 

banking facilities and event scenario/problem management plan/program 

to resolve or address problems, such as complaints, errors and intrusions and 

the availability of back-up facilities; 

f. Copy of contract with the communication carrier; arrangements for any liability 

arising from breaches in the security of the system or from unauthorized/fraudulent 

transactions; 

g. Copy of the maintenance agreements with the software/hardware provider/s; 

and 

h. Latest report on the periodic review of the system, if applicable. 

6. If after the evaluation of the submitted documents, the Working Group has still some 

unresolved issues and grey areas, the bank may be required to make a presentation of its 

electronic banking transactions to BSP; 

7. Upon completion of evaluation, the appropriate recommendation shall be made to the 

Monetary Board. The following shall be the standard conditions for approval: 

a. Existence at all times of appropriate top-level risk management oversight; 

b. Operation of electronic banking system outsourced to a third party service 

provider taking into consideration the existence of adequate security controls 

and the observance of confidentiality as required in Republic Act No. 1405 (Bank 

Secrecy Law) of customer information; 

c. Adoption of measures to properly educate customers on safeguarding of user 

ID, PIN and/or password, use of bankís products/services, actual fees/bank 

charges thereon and problem/error resolution procedures; 

d. Clear communication with its customers in connection with the terms and conditions 

which would highlight how any losses from security breaches, systems 

failure or human error will be settled between the bank and its customers; 

e. Customerís acknowledgment in writing that they have understood the terms 

and conditions and the corresponding risks that entail in availing electronic banking 

services; 

f. The bankís oversight process shall ensure that business expansion shall not 

put undue strains on its systems and risk management capability; 

g. The establishment of procedures for the regular review of the bankís security 

arrangements to ensure that such arrangements remain appropriate, having 

regard to the continuing developments in security technology;

1692 


h. Strict adherence to Bangko Sentral regulations on fund transfers in cases 

where clients use the electronic banking services to transfer funds; 

i. The electronic banking service shall not be used for money laundering or other 

illegal activities that will undermine the confidence of the public; and 

j. The BSP shall be notified in writing thirty (30) days in advance of any enhancements 

that may be made to the online electronic banking service. 

8. The same procedure and requirements stated in the foregoing shall apply to all banks with 

pending applications with the BSP, except on the submission of the documents enumerated 

in item no. 5, i.e., banks which have already submitted all the required information/documents 

need not comply with this requirement. 

9. Banks with existing electronic banking services but do not qualify as a result of the prescreening 

process mentioned in item 2 hereof, shall be given three (3) months within which 

to show proof of improved overall financial condition and/or substantial compliance with 

BSPís prudential requirements, otherwise, their electronic banking activities will be temporarily 

suspended until such time that the same have been complied with. 

10. Sanctions, in the form of monetary penalties and/or suspension of electronic banking 

activities or both, shall be imposed on erring banks and/or its officers for failure to: (a) seek 

BSP approval before launching/enhancing/implementing electronic banking services, and/ 

or (b) submit within the prescribed deadline the required information/documents. 

Monetary penalties proposed to be imposed, in accordance with Sections 36 and 37 of 

R.A. No. 7653 (The New Central Bank Act) are as follows: 

a. For the officer/s and/or director/s responsible for failure to seek prior BSP approval and/or 

for non-submission/delayed submission of required information/documents, a one time penalty 

of P200,000; and 

b. For the banking institution for failure to seek prior BSP approval and/or for non-submission/delayed 

submission of required information/documents, a penalty of P30,000 per day 

starting from the day the offense was committed up to the time the same was corrected. 

This Circular supersedes the provisions of Circular No. 240 dated 5 May 2000 insofar 

as inconsistent herewith. 





Governor 

óo0oó



Reports of Expanded Commercial Banks, Commercial Banks 

and Specialized Government Banks 

Pursuant to the provision of Circular 108 dated May 9, 1996 and amended by Circular 

201 dated May 1, 1999, on the rationalization and simplification of the reports required by 

Bangko Sentral ng Pilipinas, all expanded commercial banks, commercial banks and specialized 

government banks shall submit, effective for reports as of December 31, 2000, the 

General Ledger using the GL Template in lieu of the Main Schedule of the Monthly Consolidated 

Statement of Condition (CSOC) and the Quarterly Consolidated Statement of Income 

and Expenses (CSIE), respectively. However, the usual supporting schedule shall continue 

to be submitted pending future phase in of reports using the Subsidiary Ledger (SL) template. 

All Commercial Banks shall abide by the following guidelines: 

1. The GL report including the schedules attached to the former CSOC and CSIE reports 

shall be directly submitted electronically to the Supervisory Reports and Studies Office (SRSO) 

in accordance with existing deadlines using the following CC-Mail address: 

CC Mail Address : CIR 108 

Subject: (Bank Name) GL File 

Date: As of Reference Date of Report 

2. Upon transmission of the General Ledger Template File of the CSOC and CSIE, the bank 

shall also fax the notarized Control Prooflist on the contents of the data sent via electronic 

mail to BSP-SRSO. A copy of the Control Prooflist of the CSOC and CSIE are attached for 

your ready reference. (Annexes 1 and 2) 

3. Banks shall be responsible for reconciling the GL report against the various supporting 

schedules prior to submission to SRSO in accordance with prescribed validation rules. Banks 

may secure from SRSO a copy of the BSP validation program for this purpose. 

4. SRSO shall run an official validation test on the reports submitted using the same program 

provided to banks. Banks shall be promptly advised on the validation results and 

required to correct reports when necessary. 

5. The additional information required under Circular Letter dated June 10, 1999, as attached, 

particularly the Non-Performing Loans (Circular 202 dated May 27, 1999), which 

under the present set up is integrated as an Additional Information in the main report/ 

schedule of the Consolidated Statement of Condition shall be submitted electronically under 

a separate file pending future integration into the GL/SL Template File reporting. File name 

and structure is attached for your ready reference (Annex 3). 

6. The timetable for implementing the SL Template File reporting system by all commercial 

banks shall be as follows:

1694 


Name of SL File Parallel Testing Live Implementation 

Loan Ledger System Interbank March 2001 Reports June, 2001 Reports 

Loans & Accounts Receivable 

Deposit Liabilities/Due to Local April, 2001 Reports June 2001, Reports 

Banks Ledger 

Investment/Equity Investment May, 2001 Reports June 2001, Reports 

System 

Due from Other Banks/Head 

Office, Branches and Agencies June 2001, Reports September, 2001 Reports 

Bills Payable July, 2001 Reports -do- 

Various Liabilities August, 2001 Reports -do- 

Contingent Accounts September, 2001 Reports October, 2001 Reports 

It is understood that the related schedules attached to the corresponding subsidiary 

ledger system shall be discontinued when the corresponding SL Template reporting is implemented, 

as scheduled above. 

All queries related to this implementation may be addressed to SRSO c/o Ms. Milagros 

F. Ayuyao, at 524-7754 or Mr. Arsenio N. Co at 523-1516. Queries may also be faxed to 

523-34-61. 

For strict compliance. 


BOARD OF INVESTMENTS 




Revised Rules and Regulations of Book V 

(Special Investors Resident Visa) 

of Executive Order No. 226, Otherwise Known as 

Omnibus Investments Code of 1987, as Amended


RULE XX. NATURE OF THE VISA 

Section 1. Nature of Visa - The Special Investorís Resident Visa (SIRV), issued 

pursuant to the provisions of the Omnibus Investments Code of 1987, AS AMENDED AND 

THESE IMPLEMENTING RULES AND REGULATIONS, shall entitle the holder to reside in 

the Philippines for an indefinite period as long as THE REQUIRED QUALIFICATIONS AND 

INVESTMENTS ARE MAINTAINED AS provided for in Article 74 of the Code. 

The visa WHEN ISSUED BY THE PHILIPPINE EMBASSY OR CONSULATE shall be 

issued with the following notation: ìSpecial Investorís Resident Visa under the Omnibus 

Investments Code of 1987,î (Principal or Dependent, as the case may be) and shall appear 

as follows: 

VISA No. __________ 

REPUBLIC OF THE PHILIPPINES 

DEPARTMENT OF FOREIGN AFFAIRS 

FOR JOURNEY TO THE PHILIPPINES 

Visa includes 

DATE OF ISSUE 

Probationary Status Valid for 

Six (6) months from date of issue 

Special Investorís Resident Visa 

Under the Omnibus Investments Code of 1987, AS AMENDED 

WHEN ISSUED BY THE BUREAU OF IMMIGRATION (BI) and stamped on the passport 

of the applicant, the probationary visa shall appear as follows: 

Republic of the Philippines 

Department of Justice 

BUREAU OF IMMIGRATION 

Makati City 

SPECIAL INVESTORíS RESIDENT VISA NO. ____ 

Under the Omnibus Investments Code of 1987, as amended 

_______________SPECIAL INVESTORíS RESIDENT VISA UNDER EXECUTIVE 

ORDER NO. 226 (OMNIBUS INVESTMENTS CODE OF 1987, AS AMENDED) 

UPON RECOMMENDATION OF THE BOARD OF INVESTMENTS WITH 

AUTHORIZED STAY UP TO _________ WITH MULTIPLE ENTRY PRIVILEGE 

O.R. NO. ____________ AMT.______________ DATE OF ISSUE ____________ 

O.R. NO._____________________ DATE OF ISSUE_____________________ 

WHEN THE PROBATIONARY VISA IS CONVERTED INTO INDEFINITE, the same 

shall be issued by the BUREAU OF IMMIGRATION IN A SECURITY STICKER and shall 

appear as follows:

1696 


BI LOGO Republic of the Philippines 

Department of Justice 

BUREAU OF IMMIGRATION 

Makati City 

SPECIAL INVESTORíS RESIDENT VISA (SIRV) 

NO. _________ 

Under the Omnibus Investments Code of 1987 (Executive Order 226), as amended 

Surname Nationality 

Given Name Sex Birthdate 

Entries: Multiple Issue Date: Expiry Date: Indefinite 

_____________________________________ 

Authorized Signatory 

O.R. No. ______________ Amt. ______________ 

O.R. No. ______________ Amt. ______________ 

SIRV 

Control No. SN 0000001 

Section 2. Persons Entitled to the Visa. - Any alien, at least twenty-one (21) years of 

age, who meets the qualifications provided in Article 74 of the Code AND THESE IMPLE- 

MENTING RULES may be issued the Special Investorís Resident Visa, except nationals of 

countries determined by the Department of Foreign Affairs not entitled to the visa. 

The SPOUSE and the UNMARRIED CHILDREN under twenty-one (21) years of age 

of the applicant may also be issued the same visa. 

Section 3. ALLOWABLE FORMS OF INVESTMENT. - For purposes of securing a 

SIRV, only ownership of shares of stocks in the following shall be accepted as eligible forms 

of investment to wit: 

(a) IN EXISTING CORPORATIONS: 

PUBLICLY- LISTED COMPANIES, 

COMPANIES ENGAGED IN INVESTMENT PRIORITIES PLAN (IPP) PROJECTS, OR 

COMPANIES ENGAGED IN THE MANUFACTURING AND SERVICE SECTORS. 

(b) IN NEW CORPORATIONS: 

COMPANIES TO BE ENGAGED IN THE MANUFACTURING AND SERVICE 

SECTORS, OR 

COMPANIES TO BE ENGAGED IN IPP PROJECTS.


RULE XXI. APPLICATION AND ISSUANCE OF VISA 

Section 1. Filing of Applications. - THE APPLICATION FOR A SPECIAL 

INVESTORíS RESIDENT VISA MAY BE FILED WITH: 

a) The Philippine Embassy or Consulate in the applicantís home country or place of residence; 

or 

b) The embassy or consulate nearest thereto in the absence of the foregoing; or 

c) The Board of Investments if the investor is already in the Philippines. 

ALL APPLICATIONS MUST BE ACCOMPANIED BY ALL REQUIRED SUPPORTING 

DOCUMENTS, OTHERWISE THE SAME SHALL NOT BE OFFICIALLY ACCEPTED FOR 

PROCESSING. 

Section 2. DOCUMENTARY REQUIREMENTS. - The following documents shall be 

attached to every application for SIRV: 

a) Application form duly filled up and notarized, with recent photographs; 

b) Clearance from the National Intelligence Coordinating Agency (NICA), together with either 

a clearance from the central government agency of the applicantís country or place 

of residence, competent to give information about any criminal record that applicant may 

have, duly authenticated by the Philippine Embassy, or the Interpol Division of the National 

Bureau of Investigation (NBI) indicating that the applicant has not been convicted 

by final judgment of a crime involving moral turpitude; 

The NICA shall issue an initial clearance within five (5) working days from receipt of the 

BOI endorsement, and a more thorough verification to cover the Armed Forces of the 

Philippines and the Philippine National Police should be within three (3) months after the 

grant of the probationary visa. Any derogatory record may be the basis for revocation of 

the SIRV holderís visa; 

The expiration date of said clearances should not be before six (6) months from date of 

filing of application; 

c) Medical certificate issued by the Department of Health (DOH), any government hospital 

or health facility, or any licensed and accredited hospital, medical center, or laboratory or 

the equivalent thereof in the applicantís home country, certifying that the applicant is 

physically and mentally fit; 

The expiration date of said certification should not be before six (6) months from date of 

filing of application; 

d) Certification under oath from the duly authorized officer(s) of any accredited depository 

bank in the Philippines as to the amount of foreign exchange inwardly remitted by applicant, 

and its conversion to pesos through the said bank, in the prescribed form. Should 

the inward remittance be sent through non-accredited correspondent banks, the total

1698 


amount of remitted money should be immediately transferred to the accredited banks; 

For purposes of Book V and these rules and regulations, only banks accredited by the 

BOI shall serve as the depository banks; 

In all cases, inward remittances shall not be made earlier than one (1) year prior to the 

filing of the application; 

e) Certified true copy of the certificate of peso time deposit with a maturity period of at least 

thirty (30) days; 

The original copy of the certificate of time deposit shall remain with the depository bank 

for safekeeping; 

f) Birth certificate/family registry/household registry duly authenticated by the Philippine 

Consulate/Embassy located in the applicantís home country or the applicantís embassy 

in the Philippines; 

g) If applicable, marriage contract duly authenticated by the Philippine Consulate/ Embassy 

located in the applicantís home country or the applicantís embassy in the Philippines. 

Section 3. ENDORSEMENTS OF APPLICATIONS FILED WITH PHILIPPINE EM- 

BASSY/CONSULATE TO BOI. - An application, and its attachments filed with the Philippine 

Embassy/Consulate shall be endorsed by said Embassy/Consulate to the Board of 

Investments for evaluation. After evaluation, the same shall be re-endorsed to the Philippine 

Embassy/Consulate concerned through the DFA Consular Office for issuance of a probationary 

multiple entry visa. 

Section 4. ENDORSEMENTS OF APPLICATIONS FILED WITH THE BOI TO BI. - 

An application and its attachments filed with the BOI, including the original passport shall be 

endorsed to the BI for the grant of a provisional multiple entry visa. 

Section 5. GRANT OF VISA.- Upon compliance with the requirements of Book V of 

the Code and these rules: 

a) The applicant, who filed an application with the Philippine Embassy/Consulate, and who 

has not made an actual investment at the time his application is re-endorsed by the BOI 

to the concerned Philippine Embassy/Consulate shall be issued a probationary multiple 

entry SIRV valid for a period of six (6) months; 

b) The applicant, who filed an application with the BOI, and who has not made an actual 

investment at the time his application is endorsed by the BOI to the Bureau of Immigration 

shall be granted a probationary multiple entry SIRV valid for six (6) months; 

c) Only upon submission by the applicant of all required documents to prove actual investments 

shall the BOI endorse to the BI his application for issuance of an indefinite multiple 

entry SIRV; 

For investments made in existing corporations, the indefinite multiple entry visa shall be 

granted only after validation of the same by the BI;


d) From receipt of the BOI endorsement, the BI shall issue the probationary visa within a 

period of five (5) working days. For conversion to indefinite visa, the BI shall issue the visa 

within a period of fourteen (14) working days from receipt of the BOI endorsement if 

investment is made in existing corporations; and five (5) working days if in new corporations. 

Section 6. RELEASE OF PASSPORTS. - The Bureau of Immigration shall release 

passports with the SIRV only to an authorized officer or representative of the BOI. 

The applicant shall personally claim his passport from the BOI. He shall then be required 

to undergo a briefing as an SIRV holder. 

Section 7. ISSUANCE OF SIRV ID. - The BOI shall issue SIRV identification cards 

only to applicants with actual investments, valid for a period of one year, renewable yearly. 

Such ID shall exempt the SIRV holder from securing the Special Return Certificate (SRC), 

Alien Certificate of Registration (ACR) and Emigration Clearance Certificate (ECC) from the 

Bureau of Immigration for purposes of travel abroad. 

RULE XXII. CONVERSION OF DEPOSIT TO INVESTMENTS 

Section 1. PRIOR BOARD APPROVAL. - The SIRV holder may not withdraw his 

deposit from the accredited bank unless authorized by the BOI. 

The Board may allow a partial conversion of deposit to investments, provided that the 

total deposit is converted to investments within the one hundred eighty (180) day period 

from date of issuance of probationary SIRV. 

Section 2. APPLICATION FOR CONVERSION OF DEPOSIT TO INVESTMENTS. - 

Before a peso time deposit may be invested, an application in the prescribed form for conversion 

of time deposit to investments shall be filed with the Board of Investments. 

Section 3. EVALUATION AND WITHDRAWAL OF TIME DEPOSIT. - Upon submission 

of all of the foregoing documents and evaluation thereof, the Board shall authorize the 

SIRV applicant to withdraw time deposit from the accredited bank and invest the same. 

After securing prior BOI approval, the depository bank shall issue a check payable to 

the corporation. 

Section 4. SUBMISSION OF PROOF OF INVESTMENT. - At least thirty (30) days 

prior to the expiration of the one hundred eighty (180) day period to make the investment, 

the probationary SIRV holder shall show proof of investment as follows: 

For investment in new corporation - 

a) Duplicate copies of articles of incorporation and by-laws; 

b) Treasurerís affidavit; 

c) Certified true copy of official receipt issued by the treasurer-in-trust; 

d) Certified true copy of Securities and Exchange Commission (SEC) registration; 

e) Certified true copy of stock certificate issued in favor of the applicant.

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For investment in existing corporation not publicly listed - 

a) Certified true copy of business/mayorís permit; 

b) Certified true copies of articles of incorporation, by-laws and SEC registration; 

c) BOI registration, if any; 

d) Latest audited financial statement, list of officers and directors; 

e) Secretaryís certificate; 

f) Waiver of pre-emptive rights of existing stockholders; 

g) Certified true copy of the resolution from SEC authorizing the issuance of shares from the 

unsubscribed portion and exempting said shares from registration; 

h) BIR certificate of registration of official receipts; 

i) Certified true copy of stock certificate issued in favor of applicant; 

j) Certified true copy of SEC certificate of change of stockholders; 

k) Lease contract or proof of ownership of office or factory/plant sites. 

Additional documents for shares purchased from existing stockholders: 

l) Corporate Secretaryís certificate; 

m) Certified true copy of stock certificate issued to selling stockholder; 

n) Deed of assignment between buyer and the seller of the stock; 

For investment in shares in publicly listed corporations 

a) Certified true copy of stock certificate to be submitted within 3 months from date of investments; 

b) Certified true copy of official receipts and buy invoice; 

c) Sworn certification of stock broker. 

The Board from time to time may require submission of other proofs of investment as 

it may deem necessary. 

Section 5. ANNOTATION OF SIRV INVESTMENT BOI APPROVAL. - Stock certificates 

issued to SIRV holders shall bear the annotation that the owner thereof is a holder of 

the special investorís resident visa and that the same shall not be sold, transferred, or conveyed 

without prior BOI approval. 

Section 6. OCULAR INSPECTION OF INVESTMENT. - The BI together with the BOI, 

shall conduct a one-time inspection of the companies of SIRV applicants or SIRV holders 

prior to the grant of indefinite SIRV. The inspection shall be done in accordance with the 

following: 

a) For investments in existing corporations - inspection by BI together with BOI, within six (6) 

working days from submission of proof of investment. The BI shall process the conversion 

of the probationary to indefinite SIRV within fourteen (14) working days; 

b) For investments in new corporations - one year from date of issuance of indefinite visa or 

before expiration of the holderís identification card. 

In case of investments in publicly listed firms ñ verification thereof may be secured 

from the firmís Corporate Secretary.


In case of investment in IPP-listed project and investment is approved by the BOI, no 

inspection shall be necessary. 

The BOI may assess the SIRV holder a nominal fee to cover the cost of inspection. 

Section 7. REGISTRATION OF INVESTMENT WITH BSP. - The SIRV applicant/ 

holder shall register his investments with the Bangko Sentral ng Pilipinas (BSP) only if the 

foreign exchange needed to service the repatriation of capital and the outward remittance of 

dividends, profits and earnings which accrue thereon shall be sourced from the local banking 

system. 

Section 8. REGISTRY OF INVESTMENT. - The BOI shall keep a registry of all SIRV 

investments and shall report any withdrawal or transfer thereof to the BI. The BOI shall 

likewise furnish the BSP a monthly report of SIRV investments registered by the BOI. 

RULE XXIII. MONITORING REQUIREMENTS 

Section 1. PERIOD TO INVEST. - The investor shall have one hundred eighty (180) 

days from date of issuance of probationary visa to make the investment in an eligible domestic 

enterprise and report such investment to the Board of Investments. 

Failure to make investments within the prescribed period shall constitute a ground for 

automatic cancellation of the SIRV and/or inclusion in the blacklist of the Bureau of Immigration. 

Section 2. BOOK OF REGISTRY; TRACKING SYSTEM. - The Board of Investments 

shall maintain a registry of all SIRV deposits/investments. 

Section 3. ANNUAL REPORT. - At least one month before his SIRV identification 

card expires, an SIRV holder shall file a sworn report with the Board, supported by the 

following documents: 

a) Certified true copy of the latest current audited financial statement of the business filed 

with the BIR; 

b) Certification from the Securities and Exchange Commission that the business is existing; 

c) Certification under oath from the Corporate Secretary that the SIRV holder is a stockholder 

of record and is in good standing and the amount of investments has not been 

reduced below the amount provided in the Code; 

d) Business/mayorís permit; 

e) Proof of registration with the BIR; 

f) Copy of corporate income tax return filed with the BIR with official receipt of income tax 

payment, if applicable; 

g) Copy of the individual tax return of the SIRV holder filed with the BIR with official receipt of 

income tax payment, if applicable.

1702 


Failure to timely file the foregoing documents/reports shall subject a SIRV holder to a 

fine/penalty and/or constitute a ground for the cancellation of his visa and/or his inclusion in 

the BIís blacklist. Furthermore, his identification card shall not be renewed. 

Section 4. OUTSOURCE INSPECTION/AUDIT OF INVESTMENTS. - The BOI shall 

accredit firms to conduct annual audit and inspection of the investments of indefinite SIRV 

holders. 

The BOI-accredited firms shall inspect the investment of the SIRV holder at the expense 

of the latter and submit a certificate of inspection on the validity of investments. 

RULE XXIV. VOLUNTARY TERMINATION OF INVESTMENT/TIME DEPOSIT 

Section 1. APPLICATIONS FOR WITHDRAWAL OF INVESTMENT/TIME DEPOSIT. 

- All applications for voluntary withdrawal of investment/time deposit shall be filed with the 

BOT together with the original copy of the passport and SIRV identification card. 

The Board may conduct an exit interview of the applicant-SIRV holder. 

Section 2. ENDORSEMENT TO BI FOR CANCELLATION/DOWNGRADING OF 

VISA. - The BOI shall endorse to the Bureau of Immigration all applications for voluntary 

withdrawal of investment/time deposit for the proper cancellation or downgrading of the visa. 

With respect to voluntary withdrawal of time deposit, the BOI shall endorse the cancellation 

of the time deposit to the depository bank only upon submission of the original passport 

with the cancelled visa, in the proper case. 

RULE XXV. DISAPPROVAL OF APPLICATION 

Section 1. GROUNDS FOR DISAPPROVAL OF APPLICATION - 

a) Failure to meet any of the minimum qualification requirements provided by law and these 

rules. 

b) Fraudulent misrepresentation on the part of the applicant or his authorized agent relative 

to the data submitted in support of his/her application. 

c) Submission of falsified or spurious documents in support of his/her application. 

RULE XXVI. CANCELLATION/REVOCATION OF VISA 

Section 1. GROUNDS FOR CANCELLATION/REVOCATION OF SIRV: 

a) Failure to maintain the qualifications as a holder of the Special Investorís Resident Visa 

as provided in E.O. 226 and these rules. 

b) Violation of any of the provisions of Book V of the Code (Special Investorís Resident Visa) 

and these rules.


c) Violation of existing laws. 

Section 2. CANCELLATION OF DEPENDENT VISA. The visa of a dependent of the 

SIRV holder shall be co-terminus with that of the principal and/or be automatically cancelled 

upon his reaching 21 years of age and/or marriage. 

RULE XXVII. FEES, FINES AND PENALTIES 

Section 1. FEES, FINES AND PENALTIES. -In the implementation of Book V of EO 

226, as amended, and these rules and regulations, the Board may impose the following 

fees, fines and penalties: 

a) Fees: 

i. Application Fee - US$500 or its equivalent in local currency for principal applicant and 

each dependent; 

ii. For conversion of Deposit - P2,000.00; 

iii. For conversion of Probationary to Indefinite Visa - P2,000.00 per person; 

iv. For issuance of SIRV Identification Card - P3,000.00 per person. 

b) Late Submission of Reports and/or Proof of Investment - Basic Fine of one thousand 

pesos (P1,000.00) plus a daily fine of one hundred pesos (P100.00) until compliance. 

c) Inspection Fee pursuant to Rule XXII, Section 6 - Subject to BOI rules/guidelines 

The above fees, fines and penalties are without prejudice to the imposition of other fees, 

fines and penalties the Bureau of Immigration (BI) and the Department of Foreign Affairs 

(DFA) are authorized to charge under their respective mandates, for reasons other than 

those mentioned under paragraphs a, b, and c of this Section. 

RULE XXVIII. TRANSITORY PROVISIONS 

Section 1. All pending SIRV applications received prior to effectivity of these Rules 

and Regulations shall continue to be processed under the existing provisions of Book V of 

EO 226 and its implementing rules and regulations; provided however that investments 

made in partnerships shall no longer be allowed. 

Section 2. The BOI, in consultation with Inter-Agency Committee Members on SIRV, 

is hereby authorized to formulate policy guidelines to facilitate the processing of all pending 

applications. 

Section 3. During the transition period, the following rules shall apply: 

a) FOR APPLICATIONS PENDING WITH THE BOI, ACTUAL INVESTMENTS MUST BE 

VALIDATED;

1704 


b) FOR APPLICATIONS PENDING WITH BI FOR THE ISSUANCE OF PROBATIONARY 

VISA, OR INCLUSION OF DEPENDENTS, THE BI SHALL PROCESS THE SAME UN- 

DER THE RULES AND REGULATIONS EXISTING PRIOR TO THE EFFECTIVITY OF 

THESE REVISED RULES AND REGULATIONS; 

c) FOR CONVERSION OF PROBATIONARY TO INDEFINITE, THE BI SHALL PROCESS 

THE SAME UNDER THE OLD RULES AND REGULATIONS; 

d) IF IN THE COURSE OF EVALUATING APPLICATIONS UNDER PARAGRAPHS A & B 

HEREOF, AND AN OCULAR INSPECTION TO VALIDATE INVESTMENTS IS NECES- 

SARY, THE SAME SHALL BE UNDERTAKEN JOINTLY BY BOI AND BI. 

THE PROCESSING OF ALL PENDING APPLICATIONS SHALL BE COMPLETED 

ON OR BEFORE 15 DECEMBER 2000. 

Section 4. Revalidation of SIRV. - All holders of SIRVs granted under the old rules 

and regulations shall be required to revalidate their visas within the period to be announced 

by the BOI in a newspaper of general circulation. 

Only upon revalidation of his visa shall the holder of a SIRV under the old rules and 

regulations be issued his/her SIRV identification card. 

Failure to revalidate the same shall constitute a ground for automatic revocation of the 

SIRV. 

RULE XXIX. EFFECTIVITY 

THESE RULES SHALL TAKE EFFECT FIFTEEN (15) DAYS FOLLOWING PUBLI- 

CATION IN A NEWSPAPER OF GENERAL CIRCULATION IN THE PHILIPPINES. 

(SGD.) DIRECTOR GENERAL CESAR F. FORTUNO (SGD.) DIRECTOR JESUS E. ABELLA, M.D. 

National Intelligence Coordinating Agency Department of Health 

(SGD.) DIRECTOR GREGORIO R. SUAREZ (SGD.) ASST. SECRETARY BELEN F. ANOTA 

Bangko Sentral ng Pilipinas Department of Foreign Affairs 

(SGD.) GOVERNOR OFELIA V. BULAONG (SGD.) COMMISSIONER RUFUS B. RODRIGUEZ 

Board of Investments Bureau of Immigration 

(SGD.) CHAIRMAN LILIA R. BAUTISTA 

Securities and Exchange Commission 

BUREAU OF ANIMAL INDUSTRY 


Animal Industry Administrative Order No. 37, s. 2000 

Amending the Revised Schedule of Fees and Charges for the Services 

Rendered by the Animal Health Division of the Bureau of Animal Industry


Pursuant to Executive Order No. 197, directing all Departments, Bureaus, Commissions, 

Agencies, Offices and Instrumentalities of the National Government including government-owned 

or controlled corporations to increase rates of fees and charges by not less 

than 20 per cent, the following shall be imposed by the Animal Health Division of the Bureau 

of Animal Industry for services rendered. 

I. Technical Manuals for Disease Investigation and Surveillance 

FEES & CHARGES 

1. Epidemiological Techniques per copy 220.00 

2. Technical Animal Disease Reports per copy 100.00 

3. Annual Publication 100.00 

4. Quarterly Publication 60.00 

II. Issuance of Import/Export Permit Fees for Animals, Meat, Meat Products And By- 

Products (Per permit, unless otherwise indicated) 

1. Carabaos, Cattle, Horses, Buffaloes, Ponies, 

Asses, Mules, Donkeys, Swine and Goats 200.00 

2. Dogs, Cats and Other Domestic Livestock 100.00 

3. Bull semen and other animal semen, embryo 100.00 

4. Adult chicken, geese, turkeys, ducks, pigeons, 

doves, quails, other adult domesticated fowls, 

chicks, poults, ducklings and other young fowls 100.00 

5. Fighting or game bird, per head 100.00 

6. Hatching eggs 100.00 

7. Hatching eggs or game birds, per egg 20.00 

8. Cooked embryonated eggs/slated eggs 100.00 

9. Meat and meat products 200.00 

10. Large size wild animals and birds 100.00 

11. Medium size wild animals and birds 100.00 

12. Small wild animals and birds 100.00 

13. Hides, skins, commercial leather, gluestock, 

animal tallows, wools, hair bones, hooves, 

skin splits, dried ligaments, feathers 200.00 

14. Stuffed animals and birds, mounted skeletons 

of birds and animals 100.00 

15. Cheese curds, skim milk and other dairy products 200.00 

16. Extension of validity of Import/Export permit 100.00 

17. Issuance of Certification 100.00 

III. Veterinary Quarantine Inspection Fees for Domestic Laboratory, Exotic, Zoo and 

Other Animals, their Semen and Eggs in Connection with the Issuance of Landing 

Permits or Veterinary Health Certificates Imported or for Exports to Foreign Countries 

1. Carabao, Cattle, Buffaloes per head 

a. Import ó 100.00 b. Export ó 20.00

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2. Horses per head 

a. Import ó 500.00 b. Export ó 200.00 

3. Ponies, Asses, Mules and Donkeys per head 


4. Swine, Sheep and Goats per head 


5. Dogs and Cats for first two (2) heads 


For every head in excess of two (2) 


6. Other domestic livestock per head 


7. Semen per vial/dose 


8. Embryo per piece 


9. Adult Chicken, Geese, Turkeys, and Ducks per head 


10. Pigeons, Doves, Quails and Other Domesticated Fowls per head 


11. Chicks, Poults, Ducklings and Other Young Fowls from 1 day to 1 week per head 


12. Grandparents or Parent Breeding Stock Day-Old to One Week Old Chicks 

per head 


13. Fighting or Game Birds any age or sex per head 


14. Hatching Eggs of Fighting or Game Birds per piece 


15. Broiler Hatching Eggs per piece 


16. Other Eggs including embryonated/salted eggs per piece 

a. Import ó 1.20 b. Export ó 0.20


17. Elephants, Camels, Hippopotamus, Rhinoceros, Zebra, Giraffe, and Other Animals 

of the same size per head 


18. Lions, Tigers, Leopards, Panthers, Pumas, Cheetahs, Foxed, Wolves, and Other 

members of the Feline and Canine family including those which are domesticated 

per head 


19. Gorillas, Orangutangs, Bear, Pandas, and Other Animals of the same size per head 


20. Monkeys, Chimpanzees, Baboons, Macaques, Gibbons, Marmosets and other small 

non-human primates, per head 


21. Antelopes, Deer (except mouse-deer), Anthers, Armadillos, Sloths, Tapirs, 

Kangaroos, Sallybys and Other Animals of the same size per head 


22. Rabbits, Civets, Skunks, Porcupines, Agoutins, Coatmandis, Opposums, 

Kinkajous, Mouse-deer, Minks, Chinchills, and Other Animals of the same size 

per head 


23. Guinea Pigs, Hamsters, Rats, Gervils, Mice, Shrew, Moles, Squirrels and Other 

Animals of the same size per head 


24. Guinea Pigs, Hamsters, Rats and Mice for experimental purposes per head 


25. Other Mammals per head 


26. Large Size Birds such as Ostriches, Emus, Canaries, Peafowls, Vultures, Eagles, 

Flamingos, Storks, Pelicans, Pheasants and Other Birds of the same size per head 


27. Medium-Sized Birds such as Owls, Hornbills, Herons, Swans, Parrots, Cockatoos, 

Macaws, Gulls, Birds of Paradise and Other Birds of similar size per head 


28. Small Birds such as Love Birds, Kingfishers, Orioles, Finches, Parakeet, Lorikeets, 

Warbles, Jays, Cuckoos, Mynahs, Sparrow, Mayas or Rice Birds, Ayadayats, 

Canaries, Crows, Mocking Birds, Fly Catchers, Blackbirds, Rashers, Magpies and 

other similar size.

1708 


For the first two (2) heads 


For every head in excess of two (2) 


IV.Veterinary Quarantine Inspection Fees for Meat and Meat Products whether fresh, 

Frozen or in Airtight Containers Imported from or for Export to Foreign Countries 

1. Choice Cuts (tenderloin, sirloin, all steak cuts) per kg. 


2. Low Grade Meat Cuts, per kg. 


3. Meat and Meat Products in Airtight Containers, per kg. 


4. Other Meat Products including chicken soup packs, beef noodle packs, pork and 

mushroom soup packs, birdís nest soup packs, per ton or less 


V. Veterinary Quarantine Inspection Fees for Animal Products and By-Products in 

Connection With the Issuance of Landing Permit or VHC Imported from or for Exports 

to Foreign Countries 

1. Hides and Skins of large animals per ton or less 


2. Hides and Skins of small animals per ton or less 


3. Commercial Leather (excluding finished leather) per ton or less 


4. Gluestock, Animal Tallows, Wools, Hair Bones, Hooves Hides, Splits and Skin Splits, 

Dried Ligaments, Feathers, per ton or less 

a. Import ó 50.00 b. Export ó10.00 

5. Serum samples, per vial 


6. Stuffed Animals and Birds, Mounted Skeleton of Birds and Animals per piece 


7. Cheese, Whey, Butter, Milk and Other Dairy Products, per ton or less 


Section IV. Repealing Clause ñ This order supersedes all other Orders and or Circulars 

issued inconsistent herewith.


Section V. Effectivity ñ This revised rates on fees and charges shall take effect fifteen 

(15) days after publication in a newspaper of general circulation or upon publication in 

the Official Gazette. 


BUREAU OF CUSTOMS 


(SGD.) EDGARDO J. ANGARA 

Secretary 

Recommending Approval: 

(SGD.) TEODORO A. ABILAY, PH.D. 

Director IV 

Customs Memorandum Circular No. 410-2000 

Products Found by the U.S. Government to be Hazardous 

Attached is the letter dated September 15, 2000 of Atty. Alexander B. Arcilla, Director, 

BIS, DTI furnishing this Bureau a list of almost all hazardous products particularly toys, with 

brand name, description and serial numbers, which they received from the Philippine Trade 

and Investment Center in Washington D.C. 

These toys are now being recalled from the store shelves by the US Consumer Products 

Safety Commission. The Commission also asked to get the recalled toys out of their 

homes before the new ones arrive for the holidays. 

For your information and guidance. 


Attachment: 

(SGD.) JULITA S. MANAHAN 

Deputy Commissioner, Internal Administration Group 

CPSC Announces Holiday Toy Safety Round-Up 

Washington, D.C. ñ The U.S. Consumer Product Safety Commission (CPSC) is conducting 

a holiday toy safety round-up to get hazardous toys out of peopleís homes before 

the holidays. Despite recall notices and public warnings, CPSC has found that many products 

with the potential to seriously injure or kill are still being used by consumers.

1710 


CPSC has some of the most stringent toy safety standards in the world, and toys on 

store shelves are safe because of the day-to-day enforcement work by CPSC. ìWe do a 

good job getting recalled toys off store shelves,î said CPSC Chairman Ann Brown. ìThe real 

challenge is to get recalled toys out of peopleís homes.î 

Today, CPSC will launch the holiday toy safety round-up by issuing a list of recalled 

toys. This list identifies recalled toys that are off store shelves, but may still be in peopleís 

homes. Some examples of recalled toys that might be in consumersí homes include: 

ìSoft Walkiní Wheelsî toy vehicle with serial numbers lower than 9528 or no serial number 

at all (1,000,000) toys by Tonka with a small wheel hub that can be a choking hazard. 

ìBig Storage Chestî toy chest (350,000 chests) by Step 2 Company with a lid that can fall, 

causing strangulation or suffocation. 

Flying Dollsî spinning toy (670,000 dolls) by Tara Toy with plastic wings that can fly off and 

cause eye injury. 

ìPower Wheelsî battery-powered ride-on vehicles sold before October 22, 1998 (10,000,000 

cars) by Fisher-Price with electrical wiring, connectors, and fuses that can cause a fire. 

ìWe urge people to get this list, and get the recalled toys out of your home before the 

new ones arrive for the holidays,î said Brown. 

CPSCís toll-free telephone hotline and web site provide information about recalled 

products and information on what to look for when buying products. Consumers can reach 

the hotline at 800-638-2772 or visit the web site at http://www.cpsc.gov. 

Consumers can get a list of toy recalls here, or can have a copy mailed to them by 

sending a postcard to ìToy Safety Round-Up List,î CPSC, Washington, D.C. 20207. 

x x x x x x x x x x x x 


óo0oó 


Implementing Rules and Regulations Governing the Imposition of Safeguard 

Measures under Republic Act No. 8800 - The Safeguard Measures Act 

Attached is a letter dated 02 October 2000 of Atty. Alexander B. Arcilla, Director, Bureau 

of Import Services, DTI endorsing the copy of Joint Administrative Order No. 03, series 

of 2000, otherwise known as the Implementing Rules and Regulations Governing the Imposition 

of Safeguard Measures under Republic Act No. 8800 - The Safeguard Measures Act, 

duly signed by the concerned Secretaries/Agency Heads. 

Joint Administrative Order No. 03 was published at the Manila Standard last October 

4, 2000.






Joint Administrative Order No. 03, Series of 2000 

Implementing Rules and Regulations Pursuant to Republic Act No. 8800: ìAn Act 

Protecting Local Industries by Providing Safeguard Measures to be Undertaken in 

Response to Increased Imports and Providing Penalties for Violation Thereofî, 

Otherwise Known as ìThe Safeguard Measures Actî 

(Text available at Office of the National Administrative Register, 

U.P. Law Center, Diliman, Quezon City) 

(SGD.) MANUEL A. ROXAS II (SGD.) EDGARDO J. ANGARA 

Secretary, Department of Trade and Industry Secretary, Department of Agriculture 

(SGD.) JOSE TRINIDAD PARDO (SGD.) EMMANUEL T. VELASCO 

Secretary, Department of Finance Chairman, Tariff Commission 


(SGD.) RENATO A. AMPIL 

Commissioner, Bureau of Customs 

óo0oó 


Three Percent (3%) Duty on Cold Rolled Steel Products 

Attached is the letter dated September 28, 2000 of Director Carl John G. Matriano, 

Board of Investments referring the letter of Filipino Galvanizers Institute (FGI), Tower Steel 

Corporation and Van Leer Philippines, Inc. requesting for certification from BOI as required 

by this Bureau under E.O. 276 that domestic producers of cold rolled steel products cannot 

supply at least 50% of the market requirement. 

It has been noted that E.O. 276 specifically imposes a 3% duty on cold rolled products 

among others for items falling under Heading Nos. 72.09 and 72.11 as shown in the attached 

Annex ìAî (Text available at Office of the National Administrative Register, U.P. Law 

Center). A 7% duty is imposed when the CRC producers are able to supply at least 50% of 

the market requirement based on 1997 Philippine Iron and Steel Institute (PISI) data as 

certified by BOI. 

To date, CRC producers are not yet in a position to supply at least 50% of the market 

requirement. Hence, the 3% duty should be the prevailing rate until such time that the 50% 

hurdle has already been achieved by the BOI.

1712 







óo0oó 

Customs Memorandum Order No. 17-2000 

Guidelines on the Transfer of Overstaying Cargoes from the South Harbor 

to ATI-ICD Calamba Implementing the Memorandum of Agreement 

Between the Bureau of Customs and Asian Terminals, Inc. 

I. OBJECTIVES 

1.1 To decongest the port so as to provide for more cargo space and enhance the 

revenue generating capability of the Port of Manila; 

1.2 To accelerate cargo movement and improve productivity at the South Harbor; 

1.3 To optimize the utilization of the Vehicle Tracking System (VTS). 

2. SCOPE ñ This Order shall apply to overstaying cargoes, particularly to all dry containerized 

cargoes which have stayed in the port for sixty (60) days or more. 

3. GENERAL PROVISIONS 

3.1 Only trucks equipped with a Vehicle Tracking System (VTS) shall be utilized in the 

transfer of overstaying cargoes from South Harbor to ATI-ICD Calamba. 

3.2 Computer systems must be installed and provided by ATI to the Bureau to handle 

the documentation, inventory, records keeping and audit trail of all transfers to and releases 

from the ICD, without prejudice to the established procedures on the On-Line Release 

System (OLRS). 

3.3 Containers to be transferred shall be covered by the necessary insurance policy, to 

be procured by ATI, against possible loss or damage of the cargoes while in transit to or 

storage at the ICD. Said insurance shall answer for the value of the shipment plus the 

duties and taxes that may be due thereon. In the absence of definitive documentary 

basis such as entry or invoice for determining the amount, ATI shall be liable for the value 

of the cargo plus the duties and taxes, and the duties and taxes payable to the Bureau 

shall be not lower than PHP200,000/TEU. 

3.4 ATI-ICD Calamba shall allocate a designated area for the containers subject of this 

Order to prevent them from being co-mingled with other ICD cargoes.


3.5 As a general policy, no inspection/spot-checking of containers shall be conducted 

prior to transfer unless a particular container is subject of a derogatory information. 

3.6 A complete listing of all overstaying cargoes shall be prepared by ATI on a weekly 

basis, containing pertinent data such as name of importer, description of articles, vessel, 

Registry No., B/L No., and other shipment details, and shall be furnished to the District 

Collector, Deputy Collector for Operations, Directors, Port Operations Service, ESS and 

CIIS. 

3.7 The Customs Intelligence and Investigation Service (CIIS) shall form a special CIIS- 

VTS Unit to monitor the transfer operations. 

3.8 No transfer shall be allowed without the approval of the Deputy Collector for Operations. 

4. OPERATIONAL PROVISIONS 

4.1 Processing and Approval of Request 

4.1.1 ATI shall file with the Office of the Deputy Collector for Operations (DCO) an 

ATI-Request to Transfer Overstaying Cargoes (ATI-RTOC), sample form attached as 

Annex ìAî. The ATI-RTOC shall contain the list of shipments to be transferred including 

the particulars thereof. 

4.1.2 Immediately upon receipt of the ATI-RTOC, the DCO shall simultaneously 

provide copies of the same to the Directors, CIIS and ESS for the necessary risk assessment 

and evaluation of the cargoes to be transferred based on intelligence data. The CIIS 

and ESS shall indicate their concurrence or objection, if any, to the proposed transfer of a 

particular container/s nor more than forty-eight (48) hours from the time the transfer request 

was received by their respective offices. Failure to respond within the said period 

shall be construed as ìno objectionî to the request. 

4.1.3 The DCO approves request, if in order, by affixing his signature on the space 

provided for in the form. 

4.1.4 Upon approval by the DCO, the OLRS operator lifts the Duty Stop and prints in 

the REMARKS portion: ìTransfer to ATI-ICD Calambaî. He then distributes the approved 

ATI-RTOC, as follows: 

Sheet # 1 ñ Piers and Inspection Division (PID) 

Sheet # 2 ñ ATI 

Sheet # 3 ñ DCO 

Sheet # 4 ñ CIIS-VTS Unit 

4.1.5 The Chief, PID, upon receipt of his copy (Sheet # 1) shall transmit the same to 

the Customs Gatekeeper. 

4.2 Transfer Procedure

1714 


4.2.1 ATI prepares the Transferred Containers Monitoring Report (TCMR) in two 

(2) copies and mounts cargoes onto the CVTS-equipped trucks (TCMR sample form 

attached as Annex ìBî). Before mounting, ATI shall seal the containers in the presence of 

the CIIS, ESS and PID personnel. 

4.2.2 ATI signs TCMR upon dispatch of trucks and presents the same to Customs 

Gatekeeper. 

4.2.3 The Customs Gatekeeper compares his copy of the ATI-RTOC and TCMR 

against cargoes to be transferred. If in order, he fills up all applicable boxes in the TCMR. 

He then submits to the DCO his copy of the ATI-RTOC and TCMR, for reference purposes. 

The truck driver will also be provided a copy of the TCMR. 

4.2.4 Upon release at the gate, the VTS technology will be utilized in lieu of 

underguarding. 

4.2.5 To ensure the VTS is working, it shall be the duty of the ATI to inform the CIIS- 

VTS Unit by radio/telephone that the trucks carrying the shipment are about to depart so 

that the necessary systems checks can be undertaken. It shall be the responsibility of ATI 

to see to it that all transfers to the ICD are tracked through CTS. To this effect, ATI shall 

assign its liaison officer in the VTS room to receive messages from ATI monitoring office 

that shipments are already on their way out of the port so that the VTS computer tracking 

system is activated. 

4.2.6 The Customs Gatekeeper at the ICD shall match the information on the TCMR 

presented by the truck driver as against cargoes delivered. If in order, he completely fillsup 

all applicable boxes in the TCMR. Within fifteen (15) minutes thereafter, he shall call 

(by radio or by phone) the CIIS VTS Unit to report the completion of the delivery. He then 

sends through fax a copy of the TCMR to the DCO within two (2) hours from completion. 

4.2.7 The CIIS-VTS Unit updates the computer system to reflect completion delivery 

and generates a computer print out which it shall send to the DCO. If the Customs 

Gatekeeper at the receiving ICD fails to report delivery completion by radio/phone within 

fifteen (15) minutes, said unit shall verify with the ICD Customs Gatekeeper on delivery 

status. 

4.2.8 The DCO reconciles, on a daily basis, the approved ATI-RTOC with the accomplished 

TCMR and the report of the CIIS-VTS Unit to confirm delivery and receipt of 

cargoes at the ICD. 

5. REPORT AND REPORTING SYSTEM 

5.1 The following reports must be submitted by ATI to the Deputy Collector for Operations: 

5.1.1 List of containers received at the ICD indicating the container number, condition 

of the containers and seals, date and time received. This list shall be submitted 

immediately upon arrival of cargoes at the ICD.


5.1.2 Monthly list of overstaying containers received at, and released from ICD with 

the following structure: container number, vessel, registry no., importer, ATI-RTOC No., 

date/time received at the ICD. 

5.1.3 Monthly list of containers applied for transfer but not actually transferred containing 

same information as above except for receipt data but indicating reasons for nontransfer 

and present location in the port. 

5.1.4 Unusual Incident Report to be submitted within twenty-four (24) hours from 

the discovery of the incident reporting on such matters as containers transferred but not 

received, diversion, pilferages and unauthorized withdrawal from ICD. 

5.2 The DCO shall be responsible for the preparation and maintenance of an ICD logbook 

of all transfers to and disposition from the ICD of overstaying containers subject 

hereof. 

5.3 Vehicle Tracking Printout ñ The DCO shall be responsible for ensuring that all transfers 

for the day have reached their destination as evidenced by the Vehicle Tracking 

System report. He shall cause the printing of the tracking report for attachment to the ATI- 

RTOC file of all transfers. Any transfer which shows non-arrival at the ICD must be immediately 

reported to the Directors, CIIS and ESS and personally to the Commissioner/ 

Collector of Customs. 

5.4 Monthly Audit ñ It shall be the responsibility of the District Collector of Customs to 

conduct monthly audit of the operations of the ICD with the end in view of immediately 

detecting illegal activities and taking necessary measures to protect the interest of government. 

A copy of the Monthly Audit Report must be submitted to the Commissioner of 

Customs. 

6. REPEALING CLAUSE ñ All rules and regulations inconsistent with this Order are hereby 

deemed repealed, superseded or modified accordingly. 

7. EFFECTIVITY CLAUSE ñ This Order shall take effect immediately. 


Date Filed: 11 December 2000 


Commissioner 

óo0oó 


BPI Letter Dated November 23, 2000 re Merger Between FEBTC and BPI 

Attached is the letter dated November 23, 2000 of Mrs. Corazon S. Tumbocon, VP, 

Bank of Philippine Islands, informing the Bureau of Customs that due to the merger between

1716 


the Far East Bank and Trust Company and BPI, the subject FEBTC branches are no longer 

authorized to collect payments of customs duties and taxes. Also, the FEBTC officers mentioned 

therein are no longer authorized to validate/sign Import Entry Declaration (IED) and 

Import Entry & Internal Revenue Declaration (IEIRD) for the collection of customs duties and 

taxes. 




1. OBJECTIVES 

(SGD.) MAGDALENA R. SORIANO 

OIC, Internal Administration Group 

óo0oó 

Customs Memorandum Order No. 20-2000 

Implementation of an Electronic Support Procedure in the 

Processing and Monitoring of Advance Payment Utilization 

1.1 To install a preventive measure against erroneous utilization in the processing of 

advanced duty payments. 

1.2 To provide an on-line/electronic facility in the verification and updating of advanced 

duty payments and balances. 

2. SCOPE ó This procedure shall be implemented by the Collections Division of the Port of 

Manila, Manila International Container Port and NAIA Customhouse, and Revenue Accounting 

Division (RAD) of the Financial Service ñ Office of the Commissioner in processing payments 

under Import Entry Declaration (IED)/Advanced Duty Payment. 

3. GENERAL PROVISIONS 

3.1 The Management Information System Technology Group (MISTG) shall set up a 

secured channel within the BOC E-Mail Exchange Facility that will enable the Collection 

Divisions and RAD to view, post and update advanced duty payment information electronically. 

This facility shall be termed ìIED/Advance Payment Support Systemî or ìI/ 

APSS.î The MISTG shall conduct training for the duly designated personnel of RAD and 

the Collection Divisions who shall be the operators of the I/APSS system in their respective 

offices. 

3.2 The Revenue Accounting Division shall be responsible for the following: 

3.2.1 Creation/Maintenance/Update of the Advance Duty File in the I/APSS system; 

3.2.2 Up-to-date posting of utilized IED in the I/APSS;


3.2.3 Maintenance of a master file of all IEDs received from POM, MICP and NAIA; 

3.2.4 Up-to-date monitoring of refunded unutilized IEDs; and, 

3.2.5 Weekly reporting of all utilized IEDs. 

3.3 The concerned Collection Division shall be responsible for the following actions 

related to IED utilization: 

3.3.1 Up-to-date posting of matched IED in the I/APSS; 

3.3.2 Verification of the IED with multiple utilization using the I/APSS; 

3.3.3 Generation of end-of-day utilized IED (matched and tagged) in the Payment 

Abstract Secure System (PAS); 

3.3.4 Archiving of more than 12-month old IED records in the PAS system; 

3.3.5 Maintenance of the IED filed download from AABís thru the PAS system. 

3.4 The concerned District Collector and the Director ñ Financial Service, respectively, 

shall designate personnel who will perform the respective functions described in the Operational 

Provisions. 

4. OPERATIONAL PROVISIONS ó Nothwithstanding the following provisions, the existing 

memorandum orders pertaining to processing of advanced duty payment shall remain in 

force. 

4.1 Creation of Advance Duty Payment File in the I/APSS system ó The Revenue 

Accounting Division shall create the Advance File in the I/APSS immediately upon receipt 

of the advanced duty payment information transmitted by AAB to the Bureau through the 

PAS system. The Advance File shall be posted to the Advance Payment Verification 

(APV) Folder wherein the following naming convention will be generated by the system, 

i.e. ìImddhhmmî: 

Legend: I - prefix 

m - month (ì1î for January, ì2î for February, ì3î for March, ì4î for April, ì5î 

for May, ì6î for June, ì7î for July, ì8î for August, ì9î for September, 

ìAî for October, ìBî for November, and ìCî for December) 

dd - day 

hh - hour 

mm - minute 

4.2 Verification of Advance Duty Payment Balance ó Prior to issuance of release 

instruction in the On Line Release System (OLRS), the Collection Division shall verify 

sufficiency of the amount of the remaining balance of the corresponding IED by viewing 

the Advance Payment Verification Folder thru the I/APSS system. 

4.3 Advance Payment Utilization Data Entry ó Upon verification of the sufficiency of 

the amount of balance of IED in 4.2 above, the Collection Division shall create an advance 

payment utilization record by encoding the details of the payment in the Utilization 

Data Entry Screen. The created advance payment utilization record shall be transmitted 

to RAD, copy furnished the other Metro Manila ports, thru the I/APSS system. 

4.4 Updating/Printing of Certificate of Balance ó In case of partial utilization, the concerned 

APV Clerk of the Collection Division shall encode/update and print the Certificate

1718 


of Balance as required under CMO 33-96. The printed Certificate of Balance shall be 

signed by the Chief, Collection Division and attached to the corresponding entry declaration. 

4.5 Updating the Payment Verification System (PVS) ó The APV clerk in 4.4 above 

shall likewise tag the particular IED in the PVS system. 

4.6 Updating the IED-RAD Folder ó Upon receipt of the advance payment record 

transmitted in 4.3 above, RAD shall immediately update the Advance Payment Master 

File folder and the IED-RAD Folder by posting the amount utilized thru the I/APSS system. 

4.7 Claims for Refund ó The Collection Division shall process the claims for refund of 

unutilized IED (duly approved by the Deputy Collector for Assessment). Upon completion 

of the claims process at the Collection Division, the APV clerk shall encode the details of 

the transaction in the I/APSS Utilization Data Entry Screen and transmit same to the IED- 

RAD Folder. Once received, RAD shall immediately update the Advance Payment Master 

File Folder. 

4.8 Report Generation ó On a weekly basis, RAD shall generate a list of all fully 

utilized IEDs and refunded unutilized IEDs which shall be distributed accordingly: 

Directors ñ Financial Service and Collection Service 

District Collectors ñ POM, MICP and NAIA 

Chiefs, Collection Division ñ POM, MICP and NAIA 

5. EFFECTIVITY ó This Order shall take effect immediately and shall last until revoked, 

modified, or superseded. 




Commissioner 

óo0oó 

Memorandum 

Importation of Hubless Pipes and Fittings 

For your information and guidance, the decision of the Court of Appeals in CA-G.R. SP 

No. 48143 entitled Total 2000 Corporation vs. Office of the Executive Secretary and Filipino 

Pipe and Foundry Corporation is at present subject of a Petition for Review on Certiorari 

before the Supreme Court docketed under G.R. No. 141465. 

In view thereof, pending resolution on the said Petition and the issue of whether the 

importation, use, sale and disposition of hubless pipes and fittings is still sub-judice, importation 

thereof is in the meantime disallowed.


Kindly be guided accordingly. 

Adopted: 28 July 2000. 


Commissioner 

BUREAU OF INTERNAL REVENUE 


Revenue Regulations No. 4-2000 

Prescribing the Posting of Notice for the Issuance of 

Sales/Commercial Invoice and/or Official Receipt by Persons 

Required by Law to Issue Sales/Commercial Invoices 

and/or Official Receipts and Providing the Penalties 

for Non-Compliance Thereof 

SECTION 1. Scope - Pursuant to the provisions of Section 244, in relation to Sections 

237, 238, 264 and 275 of the Tax Code of 1997, these Regulations are hereby promulgated 

to prescribe the posting of a notice on the requirement for the issuance of sales/commercial 

invoices and/or official receipts by persons engaged in trade or business, including the exercise 

of profession, who are required by law or regulations to issue sales/commercial invoices 

and/or official receipts, define violations thereof and provide the penalties for non-compliance 

therewith. 

SEC. 2. Policy - These Regulations are intended to improve revenue collection through 

the enforcement of the legal provision on the issuance of sales/commercial invoice and/or 

official receipt by persons required by law or regulations to issue sales/commercial invoices 

and/or official receipts and to inculcate upon the minds of the taxpaying public that the issuance 

of sales invoice/official receipt is mandated by law such that every seller is obligated to issue 

sales/commercial invoice and/or official receipt on sales transactions with or without demand 

from the buyer of goods and services. 

SEC. 3. Exhibition of Notice at Place of Business - Persons required to issue sales/ 

commercial invoices and official receipts under existing rules shall cause to be posted in 

their places of business, including branches and mobile stores, in such area conspicuous to 

the public, a notice containing and showing in bold letters the following: 

NOTICE TO THE PUBLIC: 

THIS BUSINESS ESTABLISHMENT IS REQUIRED BY LAW TO ISSUE 

SALES/COMMERCIAL INVOICE/OFFICIAL RECEIPT. VIOLATION HEREOF IS 

PUNISHABLE BY FINE AND/OR IMPRISONMENT. PLEASE REPORT ANY 

VIOLATION TO THE BUREAU OF INTERNAL REVENUE.

1720 


(Issuance of sales/commercial invoice and/or official receipt is not required for every 

sale valued at P25 or below by a Non-VAT taxpayer) 

Commissioner of Internal Revenue 

At no time shall the above notice be detached, removed or covered from public view. 

For uniformity, the size specification of the notice shall be twelve (12) inches in width and 

eight (8) inches in length. 

SEC. 4. Violations and Penalties - The following acts or omissions shall constitute 

violation of these Regulations: 

a) Failure and neglect to post the notice required herein; and/or 

b) Deliberate removal of the notice. 

Any person who commits any of the above acts or omissions shall, upon conviction, be 

punished by a fine of not more than One Thousand Pesos (P1,000) or suffer imprisonment 

of not more than six (6) months, or both, pursuant to the provisions of Section 275 of the 

National Internal Revenue Code (NIRC) of 1997. 

SEC. 5. General Provisions - In case of corporations, partnerships or associations, the 

penalty shall be imposed on the president, partner, general manager, branch manager, 

officer-in-charge and/or employees responsible for the violation. 

SEC. 6. Repealing Clause - All rules and regulations and other revenue issuances or 

parts thereof inconsistent with the provisions of these regulations are hereby amended 

accordingly. 

SEC. 7. Effectivity - These Regulations shall take effect after fifteen (15) days from 

publication in any newspaper of general circulation. 

Adopted: 18 July 2000 


(SGD.) JOSE T. PARDO 

Secretary of Finance 

RECOMMENDING APPROVAL: 

(SGD.) DAKILA B. FONACIER 


óo0oó 


Prescribing the Regulations Governing the Manner of the 

Issuance of Tax Credit Certificates, and the Conditions 

for Their Use, Revalidation and Transfer


Pursuant to Section 244 in relation to Sections 76, 112, 130, 135, 204 and 230 all of the 

Tax Code of 1997, these regulations are hereby promulgated to prescribe the rules governing 

the issuance of BIR-issued Tax Credit Certificates (TCCs), and the conditions for their use, 

conversion, revalidation and transfer. 

SECTION 1. Definition of Terms - 

A. Tax Credit - For purposes of these Regulations, the term ìtax creditî shall refer to the 

amount due to a taxpayer resulting from an overpayment of a tax liability or erroneous payment 

of a tax due. 

B. Tax Credit Certificate - means a certification, duly issued to the taxpayer named therein, 

by the Commissioner or his duly authorized representative, reduced in a BIR Accountable 

Form in accordance with the prescribed formalities, acknowledging that the grantee-taxpayer 

named therein is legally entitled a tax credit, the money value of which may be used in 

payment or in satisfaction of any of his internal revenue tax liability (except those excluded), 

or may be converted as a cash refund, or may otherwise be disposed of in the manner and 

in accordance with the limitations, if any, as may be prescribed by the provisions of these 

Regulations. 

C. Tax Debit Memo - means a certification, duly issued by the Commissioner or his duly 

authorized representative, reduced in a BIR Accountable Form in accordance with the provisions 

of these Regulations. The Tax Debit Memo shall serve as the official receipt from the 

BIR evidencing a taxpayerís payment or satisfaction of his tax obligation. The amount shown 

therein shall be charged against and deducted from the credit balance of the aforesaid Tax 

Credit Certificate. 

D. Direct Internal Revenue Tax Liability - shall refer to taxes for which the taxpayer is made 

statutory liable. In essence, ìdirect internal revenue tax liabilityî pertains to the liability of a 

person mandated by law to file the tax return and pay the tax due thereon. 

SEC. 2. Sources of Tax Credit - A tax credit is being granted for the following: 

(a) At the option of the taxpayer, excess quarterly income taxes paid reflected in the 

final adjustment return. 

(b) At the option of the taxpayer, overwithholding at source of income taxes to the 

extent that the amount of such overpayment was not deducted or applied against income 

tax due. 

(c) Input taxes as follows: 

i. Attributed to zero-rated sales made by VAT-registered taxpayer including 

export sales by a VAT-registered exporter; 

ii. Attributed to effectively zero-rated sales made by VAT-registered taxpayer; 

and 

iii. On capital goods imported or locally-purchased by a VAT-registered taxable 

person.

1722 


(d) Unused input taxes resulting from cancellation of VAT registration due to retirement 

from or cessation of business, or due to changes in or cessation of status as a VAT taxable 

taxpayer under Section 106(C) of the Tax Code. 

(e) Excise taxes paid on: 

i. Petroleum products sold to tax-exempt entities and international carriers; 

ii. Goods locally produced or manufactured and actually exported without 

returning to the Philippines; 

(f) Taxes erroneously or illegally paid or penalties imposed without authority. 

Any taxpayer who is erroneously registered as a VAT person will not be covered by 

paragraphs (c) and (d) of this Section. 

In no case shall a tax refund or tax credit certificate be given resulting from availment 

of incentives granted pursuant to special laws for which no actual tax payment was made. 

SEC. 3. Uses of Tax Credit Certificate - Whenever a Tax Credit Certificate (TCC) is 

issued to a taxpayer to acknowledge the existence of a valid tax credit, such Tax Credit 

Certificate may be used by the grantee or his assignee in the payment of his direct internal 

revenue tax liability, such as income tax, documentary stamp tax, excise tax, value added 

tax, percentage tax and other internal revenue taxes. However, in no case shall the TCC be 

used in payment of the following: 

(a) Payment or remittance for any kind of withholding tax. 

(b) Payment arising from the availment of tax amnesty declared under a legislative 

enactment. 

(c) Payment of deposits on withdrawal of exciseable articles. 

(d) Payment of taxes not administered or collected by the Bureau of Internal Revenue. 

(e) Payment of compromise penalty. 

SEC. 4. Assignment or Transfer - 

a) Transferability of TCC - Taxpayers with TCCs issued by the BIR in their name hold 

the same in the concept of an owner. Consequently, BIR-issued TCCs may be transferred in 

favor of an assignee subject only to the following conditions: 

(i) The transfer must be with prior approval of the Commissioner or his duly 

authorized representative who shall verify whether or not the TCC sought to 

be transferred is still valid in the hands of the original holder; 

(ii) The transfer should be limited to one transfer only. 

(ii) The transferee shall use the TCC assigned to him strictly in payment of his 

direct internal revenue tax liability and in no case shall the same be available 

for conversion to cash in his hands.


b) Assignment Procedures - The transfer or assignment of a TCC from the original 

holder to his or its assignee shall be subject to the following procedures: 

(i) The TCC sought to be assigned or transferred shall be presented before the 

Commissioner or his duly authorized representative for verification. If found to be 

valid and still with creditable balance, the TCC shall be marked ìValid for Transferî, 

countersigned by the said officer. 

(ii) Upon execution of the Deed of Assignment, the transferor shall present the 

same, together with the original copy of the TCC. 

(iii) The original copy of the TCC shall still be cancelled even if only a portion of its 

face value is transferred or assigned, in which case, new TCC(s) shall be issued 

representing the respective portions pertaining to the transferee(s) and/or the 

balance remaining for the account of the transferor. 

(iv) Any TCC issued in favor of the transferee or assignee shall be valid for five 

(5) years, but subject to the following conditions which must be annotated therein, 

as follows: 

1. Not valid for further transfer; 

2. Not valid for cash conversion. 

SECTION 5. Period of Validity, Conversion and Revalidation. 

a) Validity Period - Any Tax Credit Certificate (TCC) issued in accordance with the 

pertinent provisions of the Tax Code of 1997 which remains unutilized after five (5) years 

from date of issue shall, unless revalidated before the end of the fifth year, be considered 

invalid and shall not be allowed for use in payment of any of the taxpayerís internal revenue 

tax liability nor allowed to be transferred and the unutilized amount thereof shall revert to the 

General Fund of the National Government. 

The revalidated TCC shall be valid for a period of five years from the date of issue. 

b) Conversion Period - Any request for conversion into cash refund of unutilized tax 

credits may be allowed during the validity period of the TCC. Provided, however, that the 

original copy of the Tax Credit Certificate showing a creditable balance is surrendered to the 

Asst. Commissioner, Collection Service or other duly authorized Revenue Officer for 

verification and cancellation. Provided, further, that a refund check or treasury warrant issued 

in accordance with the pertinent provisions of the Tax Code of 1997, which shall remain 

uncashed or unclaimed within five (5) years from the date of issue, mailing or delivery, 

whichever comes later, shall be forfeited in favor of the Government and the amount thereof 

shall revert to the general fund. 

c) Revalidation Period - In general, a TCC may be revalidated prior to the expiration of 

its validity period. Provided, however, that any TCC issued prior to January 1, 1998 in which 

the granteeís holding period therefor as of said date is less than five (5) years counted from 

date of issue, may be submitted for revalidation by the holder within six (6) months prior to 

the end of the fifth (5th) year. For example, a TCC issued on December 31 1997, shall be

1724 


presented for revalidation within the six-month period prior to expiration, i.e., from July 1 to 

December 31, 2002. 

d) Procedure for Revalidation - The revalidation of any TCC validly issued and subsisting 

in accordance with the provisions of law and Regulations shall be initiated by the filing of an 

application therefor with the Collection Service or other duly authorized Office of the Bureau 

of Internal Revenue. 

The revalidation shall be accomplished through the issuance of a new TCC, reflecting 

its unutilized amount or creditable balance. Provided, however, that no revalidated TCC 

shall be issued unless the Commissionerís duly authorized representative has certified that 

the applicant taxpayer has no outstanding tax liability. If the holder has any outstanding tax 

liability, said liability shall be applied first against the TCC sought to be revalidated through 

the issuance of a Tax Debit Memo (TDM). 

For this purpose, the term ìoutstanding tax liabilityî shall refer to an assessment that 

is already final and executory. 

SEC. 6. Repealing Clause - Revenue Regulations No. 7-98 and any other revenue 

issuance inconsistent with these Regulations are hereby repealed, amended or modified 

accordingly. 

SEC. 7. Effectivity - These Regulations shall take effect fifteen (15) days from publication 

in any newspaper of general circulation. 







óo0oó 


Implementing Sections 7(c), 204(A) and 290 of the Tax Code of 1997 

on Compromise Settlement of Internal Revenue Tax Liabilities 

SECTION 1. Scope and Objectives - Pursuant to Section 244 of the Tax Code of 

1997, these Regulations are hereby promulgated for the purpose of implementing Sections 

7(c), 204(A) and 290 of the same Code, thereby giving an authority to the Commissioner of 

Internal Revenue to compromise the payment of internal revenue tax liabilities of certain 

taxpayers with outstanding receivable accounts and disputed assessments with the Bureau. 

SEC. 2. Cases Which May Be Compromised.


The following cases may, upon taxpayerís compliance with the basis set forth under 

Section 3 of these Regulations, be the subject matter of compromise settlement, viz: 

1. Delinquent accounts; 

2. Cases under administrative protest pending in the Regional Offices, Revenue District 

Offices, Legal Service, Large Taxpayer Service (LTS), Enforcement Service (ES), Excise 

Taxpayer Service (ETS) and Collection Service; 

3. Civil tax cases being disputed before the courts, e.g., CTA, CA, SC; 

4. Collection cases filed in courts; and 

5. Criminal violations, other than those already filed in court, or those involving criminal tax 

fraud. 

EXCEPTIONS: 

1. Withholding tax cases; 

2. Criminal tax fraud cases; 

3. Criminal violations already filed in court; and 

4. Delinquent accounts with duly approved schedule of installment payments. 

SEC. 3. Basis for Acceptance of Compromise Settlement 

The Commissioner may compromise the payment of any internal revenue tax on the 

following grounds: 

1. Doubtful validity of the assessment - The offer to compromise a delinquent account 

or disputed assessment under these Regulations on the ground of reasonable doubt as to 

the validity of the assessment may be accepted when it is shown that: 

(a) The delinquent account or disputed assessment is one resulting from a jeopardy 

assessment (For this purpose, ìjeopardy assessmentî shall refer to a delinquency 

tax assessment which was assessed without the benefit of complete or 

partial audit by an authorized revenue officer, who has reason to believe that the 

assessment and collection of a deficiency tax will be jeopardized by delay because 

of the taxpayerís failure to comply with the audit and investigation requirements 

to present his books of accounts and/or pertinent records, or to substantiate 

all or any of the deductions, exemptions, or credits claimed in his return); or 

(b) The assessment seems to be arbitrary in nature, appearing to be based on 

presumptions and there is reason to believe that it is lacking in legal and/or factual 

basis; or 

(c) The taxpayer failed to file an administrative protest on account of the alleged 

failure to receive notice of assessment or preliminary assessment and there is no 

reason to believe that the assessment is lacking in legal and/or factual basis; or 

(d) The taxpayer failed to file a request for reinvestigation/reconsideration within 

30 days from receipt of final assessment notice and there is reason to believe 

that the assessment is lacking in legal and/or factual basis; or

1726 


(e) The taxpayer failed to elevate to the Court of Tax Appeals (CTA) an adverse 

decision of the Commissioner, or his authorized representative, in some cases, 

within 30 days from receipt thereof and there is reason to believe that the assessment 

is lacking in legal and/or factual basis; or 

(f) The assessments were issued on or after January 1, 1998, where the demand 

notice allegedly failed to comply with the formalities prescribed under Sec. 228 of 

the Tax Code. 

2. Financial incapacity - The offer to compromise based on financial incapacity may be 

accepted upon showing that: 

(a)The inability to pay is evident as when the audited Balance Sheet for the taxable 

year preceding the year when the offer is made shows a capital deficit of at 

least 5% or the Balance Sheet reflects a negative networth of at least 5%; or 

(b)The taxpayer is declared by competent court to be bankrupt or insolvent; or 

(c) The taxpayer has already been dissolved; or 

(d) The taxpayer is a compensation income earner with no other source of income 

and the familyís gross annual income does not exceed P250,000, it appearing 

that the taxpayer possesses no other leviable/distrainable assets. 

Circumstances that would place the taxpayer-applicantís inability to pay in serious 

doubt can be a ground to refuse the offer of compromise based on financial incapacity to 

pay. Furthermore, application for compromise settlement by reason of financial incapacity 

shall not be considered unless and until the taxpayer waives in writing his privilege of the 

secrecy of bank deposits under Republic Act No. 1405 or under other general or special 

laws, and such waiver shall constitute the authority of the Commissioner to inquire into the 

bank deposits of the taxpayer. 

SEC. 4. Prescribed Minimum Percentages of Compromise Settlement - The 

compromise settlement of the subject internal revenue tax liabilities of taxpayers, reckoned 

on a per tax type assessment basis, shall be subject to the following minimum rates: 

1. For cases of financial incapacity - a minimum compromise rate equivalent to 

ten percent (10%) of the basic assessed tax; 

2. For doubtful validity - a minimum compromise rate equivalent to forty percent 

(40%) of the basic assessed tax. 

Delinquent accounts and disputed assessment of taxpayers registered under the Large 

Taxpayers Service (LTS) and the Excise Taxpayers Service (ETS) shall not be compromised 

for less than fifty percent (50%) of the basic assessed tax. Any offer of compromise lower 

than fifty percent (50%) by said taxpayers shall be subject to the approval of the NEB. 

The herein prescribed minimum percentages shall likewise apply in compromise 

settlement of assessments consisting solely of increments, i.e., surcharge, interest, etc., 

based on the total amount assessed. 

SEC. 5. Creation of the National Evaluation Board and Regional Evaluation Board - A 

National Evaluation Board in the National Office and a Regional Evaluation Board in each


Revenue Region all over the country are hereby created to evaluate and approve/disapprove 

the applications for settlement of each delinquent account/disputed assessment, the 

composition of such Boards and the cases under their respective jurisdictions are as follows: 

A. National Evaluation Board (NEB) 

Commissioner of Internal Revenue - Chairman 

Four (4) Deputy Commissioners - Members 

Where the basic assessed tax involved exceeds One million pesos 

(P1,000,000.00) or where the settlement offered is less than the prescribed minimum 

rates of 40% (in cases of doubtful validity), 10% (in cases of financial incapacity), 

and 50% (in cases of taxpayers registered under LTTS and ETS) of the 

basic tax, the compromise shall be subject to the approval by the NEB. 

For compromise offers on delinquent accounts and disputed assessments 

where the assessment notices were issued by the Regional Offices and the basic 

assessed tax exceeds Five hundred thousand pesos (P500,000.00) but not 

over One million (P1,000,000.00), or for assessments issued by the National 

Office where the basic assessed tax does not exceed One million pesos 

(P1,000,000.00), the compromise offer, after evaluation by the Technical Working 

Group (TWG), shall be approved by the Commissioner. 

B. Regional Evaluation Board (REB) 

Regional Director - Chairman 

Members: 

l Assistant Regional Director 

l Chief, Legal Division 

l Chief, Assessment Division 

l Chief, Collection Division 

l Revenue District Officer having jurisdiction over the taxpayer-applicant 

The REB may compromise assessments issued by the regional offices involving 

basic assessed taxes of Five hundred thousand pesos (P500,000.00) or 

less and minor criminal violations discovered by the Regional and District Officials. 

The evaluation of offers of compromise shall, in all cases, be conducted by a 

Technical Working Group (TWG), in the National and Regional levels, respectively, 

to be constituted for the purpose through the issuance of a Revenue Special 

Order (RSO). 

The NEB and the REBs of the Revenue Regions shall each create a SECRE- 

TARIAT to handle the administrative functions of their respective TWGs. 

SEC. 6. Report of the Commissioner on the Exercise of his Authority to Compromise to 

the Congressional Oversight Committee - The Commissioner shall submit to the

1728 


Congressional Oversight Committee through the Chairmen of the Committee on Ways and 

Means of both the Senate and House of Representatives, every six (6) months of each 

calendar year, a report on the exercise of his powers to compromise the tax liabilities of 

taxpayers. 

SEC. 7. Repealing Clause - All existing rules and regulations or parts thereof which are 

contrary to or inconsistent with the provisions of these Regulations are hereby amended, 

modified or repealed accordingly. 

SEC. 8. Effectivity - The provisions of these Regulations shall take effect fifteen (15) 

days after publication in any newspaper of general circulation. 



I. Objectives 






óo0oó 

Revenue Memorandum Order No. 37-2000 

Guidelines/Procedures in the Computation of the Share of 

Local Government Units in the 2% Special Privilege Taxes 

Collected by the BIR from Mini-Hydroelectric Power Developers 

Pursuant to Republic Act No. 7156, An Act Granting Incentives to 

Mini-Hydroelectric Power Developers and for Other Purposes 

This Order is issued to: 

A. Facilitate the claims of Local Government Units (LGUs) of their share in the 2% 

Special Privilege Tax collections by the Bureau pursuant to the provisions of R.A. No. 7156, 

otherwise known as the ìMini-Hydroelectric Power Incentives Actî. 

B. Enhance the 2% Special Privilege Tax collections in coordination with the LGUs. 

II. Coverage 

The 2% Special Privilege Tax shall refer to the tax payable by any person, natural or 

juridical, authorized by the Office of Energy Affairs (OEA), now Department of Energy (DOE), 

to engage in mini-hydroelectric power development with the right to generate, transmit and 

sell electric power. For internal revenue tax purposes, this 2% Special Privilege Tax shall be


based on the gross receipts derived by the mini-hydroelectric power developer from the sale 

of electric power and from transactions incident to the generation, transmission and sale of 

electric power payable to the Commissioner of Internal Revenue or his duly authorized 

representative on or before the 20th day of the month following the end of each calendar or 

fiscal quarter. 

III. Duties and Responsibilities of the LGU Treasurer: 

A. The Treasurer of the LGU concerned, where the mini-hydroelectric power plant is 

located, shall be responsible in informing the Chief, Revenue Accounting Division (RAD) 

(NO) of the actual Special Privilege Tax collections paid to the Bureau based on the 

certifications of the Revenue Collection Officers (RCOs) of the Revenue District Office 

concerned; 

B. Evidence of tax payments secured by the LGU Treasurer on the actual Special 

Privilege Tax paid by the mini-hydroelectric power developer should be submitted to the 

Chief, RAD (NO), together with the certification/s from the Revenue District Officer (RDO) 

and Chief, Finance Division (RO) and the mini-hydroelectric power company; 

C. The LGU Treasurer shall inform the BIR thru the RCO of the Revenue District Office 

concerned of any taxpayer who fails to pay the 2% Special Privilege Tax. All RCOs receiving 

such information from LGUs shall coordinate with the Chief, Finance Division (RO) and the 

Chief, RAD (NO) in enforcing the collection of said tax. 

IV. Guidelines and Procedures to be Followed: 

A. By the Treasurer, Local Government Unit (LGU) 

1. Secure from the mini-hydro-electric companies a certification of 2% Special Privilege 

Tax Payments indicating therein the exact location of the mini-hydro-electric power plant, 

the gross receipts from the sale of electric power and from transactions incident to the 

generation, transmission and sale of electric power, amount of tax paid, mode of payment, 

etc. 

2. Secure from the taxpayers photocopies of Revenue Official Receipts (RORs), 

Authority to Accept Payments (ATAPs), validated returns and Tax Debit Memos (TDNs) 

evidencing payments; 

3. Submit the above documents and secure certification of tax payments from the 

RCO concerned where the 2% Special Privilege Taxes were paid, if payments are made 

thru RORs. Secure certification as to the type of tax paid from the Revenue District Office 

concerned, if paid thru banks; 

4. Submit photocopy/ies of the ATAPs, validated returns, and RDMs, to the Chief, RAD 

(NO) for verification of paymens, if made thru banks; and 

5. Transmit original certification/s duly certified by the RDO/Chief Finance Division 

(RO) to the Chief, RAD (NO).

1730 


B. By the Revenue Collection Officer (RCO) 

1. Receive and verify the RORs/ATAPs validated returns against all the Monthly Report 

of Collections for certification of tax payments and original returns/ATAPs on file with the 

Collection Division for certification of type of tax paid. 

2. Prepare in three (3) copies the certification of tax payments, if payments made thru 

RORs and certification of type of tax paid for payments made thru banks, the distribution of 

which shall be as follows: 

Original - Chief, Revenue Accounting Division (NO) 

Duplicate - Treasurer of LGU concerned 

Triplicate - Retain file copy 

3. Forward certification of payments to the Chief, Finance Division (RO) for confirmation 

of tax remittance to the Treasurer, Bureau of Treasury. 

C. By the Chief, Finance Division (RO) 

1. Verify if the amount is actually remitted to the Bureau of Treasury; 

2. Issue certification; and 

3. Release the original copy to the LGU concerned for submission to the Chief, RAD 

(NO). 

D. By the Chief, Revenue Accounting Division (RAD) (NO) 

1. Receive from LGU concerned certification/s of tax payments and photocopy/ies of 

ATAPs/validated returns/TDMs for verification of payments; 

2. Issue a certification of payments verified to have been made thru banks. 

3. Compute the share of the LGU concerned in accordance with Section 11 of R.A. No. 

7156 and issue a certification for the allocation of shares for each LGU concerned. 

4. Transmit to the Secretary, Department of Budget and Management (DBM) said 

computation/allocation of share of each LGU. 

V. Effectivity 

This Order shall take effect immediately. 



Commissioner of Internal Revenue


BUREAU OF TREASURY 


Treasury Order No. 01-95 

Revised Regulations Governing the Fidelity 

Bonding of Government Officials and Employees 

I 

Purpose 

This Treasury Order amends Treasury Memorandum Circular No. 1-71 pertaining to 

regulations promulgated for the effective bonding of accountable government officials and 

employees pursuant to the provisions of Section 50, Chapter IX of Book V of the Administrative 

Code of 1987. 

II 

Coverage 

2.1 Except as otherwise herein provided, all officials and employees of National Government 

Agencies (NGAs), Government Owned- and/or Controlled Corporations (GOCCs), 

Local Government Units (LGUs), Self Governing Boards and Commissions and all others 

concerned shall, whenever the duties performed permit or require the custody of funds/ 

property/accountable forms, be covered by a fidelity bond. 

2.2 Accountable officials and employees discharging their duties in a foreign country. 

2.3 Officials and employees accountable to others who are primarily accountable. 

III 

Bondable Risks 

3.1 When a bonded official or employee or applicant for bonding is not, in the judgment of the 

BTr Regional Director (RD), a safe and conservative risk, owing to character, associations, 

or habits, the fact shall be reported to the respective head of departments, bureaus, offices, 

local government units, self governing boards and commissions who shall cause the removal 

or relief of the official or employee of such duties requiring a bond. The decision of the 

RD may be appealed to the Treasurer of the Philippines whose decision shall be final. 

3.2 Officials having direct or general supervision over accountable officials shall take steps 

to safeguard the interest of the government. 

3.3 Upon discovery of a shortage or total loss, proper steps shall be taken to proceed against 

the accountable official or employee and his property, real or personal, on which attachment 

and execution shall be levied as provided by law. 

3.4 The office which uncovers a malversation or shortage shall notify promptly the BTr FE IV 

by telegram, and keep BTr FE IV advised on the status of the case.

1732 


4.0 

Procedure for Bonding 

4.1 Appointment or lawful accession by any person to a bonded or bondable position or 

office, shall be notified immediately to the Bureau of the Treasury Fiscal Examiner IV (BTr 

FE IV) of the province or region where the appointee is assigned. 

4.2 Four copies of General Form No. 57(A), shall be used in the notification, request for 

application, increase, reduce, cancel or transfer of a bond, duly signed by the head of agency 

concerned. 

4.3 Every applicant for bond shall accomplish General Form No. 58 (A) in four (4) copies, 

which shall be subscribed and sworn to before any officer duly authorized by law. 

4.4 The duly accomplished General Form 58 (A) with three (3) photographs in 3î x 4î shall 

be endorsed by the head of agency, or office concerned to BTr FE IV in the province or 

region together with the request for bonding, General Form No. 57(A), for approval. 

4.5 All applications for bonding shall be accompanied by the following: 

4.5.1 Sworn Statement of Assets and Liabilities as of the date of assumption of 

accountable duties. 

4.5.2 Latest approved appointment to bondable position. 

4.5.3 If the position of the applicant is not bondable but applicant is given bondable 

duties, Office Order or Designation. 

4.5.4 Proof of payment of bond premium deposited with an Authorized Government 

Depository Bank (AGDB). 

5.0 

Procedure for Bond Cancellation 

5.1 Accountable officials/employees who are no longer accountable by reason of retirement, 

separation from the service, promotion, transfer to another position or agency, suspension 

from office or for any other cause, shall submit immediately a request for bond cancellation 

using General Form No. 57(A), items 14 to 18 only, to the BTr Fiscal Examiner IV in the 

province or region of said accountable official/employee. 

5.2 No bonded official/employee shall be given clearance by the agency from money and 

property accountability without proof of bond cancellation as required in paragraph 5.1 

6.0 

Amount of Bond 

6.1 The BTr FE IV in the province and/or district in the National Capital Region shall fix and 

approve the bonds in their respective jurisdiction in accordance with the Schedule attached, 

and marked Annex A and made an integral part hereof.


6.2 An official/employee who has both money and property accountability, shall be bonded 

only once to cover both accountabilities, but the amount of the bond shall be in accordance 

with the Schedule, provided however, that the amount of bond shall not exceed 

P6,000,000.00. 

6.3 When the maximum amount of the bond is exceeded, the accountable officer and his 

immediate Supervisor shall take immediate steps to have the excess accountability transferred 

to another official/employee who shall then be covered by another bond. 

7.0 

Bond Premium 

7.1 Effective January 1, 1996, all applications for bonding shall be immediately issued a bill 

by the BTr FE IV for the payment of the bond premium. 

7.2 The premium of a fidelity bond shall be one percentum (1%) of the amount of bond. 

7.3 The premium shall be paid for one full year equivalent to twelve months. 

7.4 Cancellation of a bond during its validity shall not make the premium refundable to the 

agency. 

7.5 Bond premium shall be deposited by applicant agency with an Authorized Government 

Depository Bank (AGDB). The deposit slip shall be accompanied by a list of bondable officials/employees 

accomplished in accordance with the form herein prescribed, marked Annex 

B and made an integral part of this Order. 

7.6 Proof of deposit of premium shall be presented to the FE IV of the province or NCR 

district where the bond applicant is assigned. Proof of deposit is the AGDB validated deposit 

slip and list of bondable officials/employees. Only upon presentation of proof of deposit of 

premium shall the bond application be processed. 

7.7 Approved fidelity bonds are valid for one (1) year. Premium of expired bonds whose 

bondable official/employee continues to be accountable, if not paid on or before expiry date, 

the corresponding bond shall automatically be cancelled. The bond shall be renewed only 

upon filling of the General Form 57 (A) and 58(A) and the attachments. 

7.8 Payment of premium which is centralized in the agencyís Head Office shall be notified by 

said H.O. to the BTr FE IV of the province or NCR district where the bonded official/employee 

is assigned. 

7.9 A bond is personal and therefore not transferrable. 

7.10 Any increase in the amount of accountability which increases the amount of the bond 

shall be subject to increased premium which shall be payable for one year, therefore the 

appropriate application forms shall be filed. 

7.11 Overpayment of bond premium shall be credited to subsequent premium payments 

due.

1734 


8.0 

The Fidelity Fund 

8.1 All bond premia collected by the Bureau of Treasury shall constitute the Fidelity Fund. 

8.2 The Fidelity Fund shall answer for defalcations, shortages and unrelieved accountability 

after all possible means of recovery of the amount from the accountable official/employee 

has been exhausted or her/his insolvency declared by a competent court. 

8.3 The Fidelity Fund shall be available for the payment of court fees incident to civil proceedings 

to recover sum lost. 

8.4 The Fidelity Fund shall not be used in the following: 

a. To replace fines imposed on a bonded officials/employees as a result of criminal 

conviction for violation of the Revised Penal Code or any penal law; (b) To 

answer for liability of a bonded official/employee convicted of Estafa through 

falsification of public documents in the capacity as a private individual; (c) To 

refund the accountability of a bonded official/employee found short in his accountability 

but was not removed or relieved of the duties. 

9.0 

Adjudication of Claim Against the Fidelity Fund 

9.1 Any and all claims against the Fidelity Fund together with all the evidences relating 

thereto shall be filed with the Bureau of Treasury Regional Director who shall recommend 

appropriate action to the Treasurer of the Philippines. Approval of a claim shall constitute a 

legal claim against the Fidelity Fund. 

9.2 Only approved claims shall be paid from the Fidelity Fund. 

10.0 

Repealing/Saving Clause 

All Circulars, Orders and/or Memoranda, issued by this Office which are inconsistent 

with this Order are hereby repealed and/or modified accordingly. 

Situations not covered by the Order shall be referred to the Bureau of Treasury Regional 

Director for appropriate resolution. 

11.0 

Sanctions 

Failure to comply with the requirements and provisions of this Order shall subject the 

responsible official/employee to criminal and/or administrative action. 

12.0 

Effectivity


This Treasury Order shall take effect on 1 January 1996. 

Adopted: 5 Dec. 1995 


(SGD.) CARIDAD VALDEHUESA 

Treasurer of the Philippines 

óo0oó 

Department Order No. 36-95 

Implementing Guidelines on Collection and Remittance 

of Alien Social Integration Fee Under R.A. No. 7919 (ASIA) 

Further to Department Order No. 14-94 dated 24 March 1994, the following guidelines 

are hereby issued: 

1. The Treasurer of the Philippines or his duly authorized representative under DOF Order 

No. 14-94 shall accredit the commercial/universal bank (accredited by the BIR to receive 

income tax payments) authorized to accept Alien Integration Fee payments. Said payments 

to the BANK shall be credited to the Savings Account of the Treasurer of the Philippines 

value date on actual deposit date. 

2. Bureau of Immigration, Manila, shall issue a pre-numbered and pre-coded Order of Payment 

Slip (OPS) in six copies (see prescribed format, Annex A) authorizing the accredited 

BANK to accept payment of integration fees from the applicant under the Alien Social Integration 

Act, RA 7919. 

3. The BANK shall machine-validate all copies covering payments received in cash and/or 

cashierís/managerís checks. It shall retain two (2) copies, one for its files and the duplicate 

copy to be furnished the BTr/Regional Fiscal Examiners together with BANK NOTICE OF 

DEPOSITED COLLECTIONS (see prescribed format, Annex B). The original shall be retained 

by the applicant after submission to BI (for validation by BI with its 3 copies). 

4. The BANK shall issue and deliver a credit advice to the National Cash Accounting Division, 

Bureau of Treasury, not later than day 2 from value date. The BANK shall attach to the 

credit advice a summary of duly numbered BANK Notice of Deposited Collections, corresponding 

to the amount of the credit advice. 

5. BI disbursements representing publication costs for each alien applicant shall be covered 

by a Notice of Cash Allocation (NCA) from DBM, except when BI is authorized by the Permanent 

Committee to set up a trust fund as an exception to PC Circular No. 1-93 on the use 

of fees collected by national government agencies. 

6. BTr/Regional Fiscal Examiners shall prepare a consolidated report of deposited payments 

on the basis of reconciled Notice of Deposited Collections as against the validated 

duplicate copy of OPS. These copies shall be picked-up by BTr/Regional Fiscal Examiners 

every Monday and Wednesday from the BANK, as per DOF Order No. 14-94.

1736 


7. The Treasurer of the Philippines and the Bank shall enter into a Memorandum of Agreement 

to implement this Order. 

This Order shall take effect on 01 June 1995. 


(SGD.) ROMEO L. BERNARDO 

Acting Secretary 

óo0oó 

Memorandum Circular No. 2-96 

Procedure for Purchasing Treasury Bills and 

Bonds Over-the-Counter of the Bureau of Treasury 

1.0 

Background 

1.1 In pursuance to the mandate of Section 129 of R.A. No. 7653 to phase out the fiscal 

agency functions of Bangko Sentral ng Pilipinas (BSP), and transfer the same to the Department 

of Finance (DOF), the latter designated the Bureau of Treasury (BTr) to be the 

Fiscal Agent of the National Government. Consequently, the conduct of Auction of Government 

Securities was transferred to BTr via a Memorandum of Agreement, dated 31 October 

1995 by and between BSP and DOF. 

1.2 Other fiscal agency functions such as Over-the-Counter (OTC) sale of government securities 

and book-entry of the same were also transferred to BTr. 

1.3 Henceforth the GOCC, TEI and LGU investments in government securities shall be 

transacted with BTr. 

2.0 

Procedures 

2.1 GOCC/TEIs/LGUs may phone in their investment or via fax to BTr on or before 11 

oíclock a.m., Monday through Friday, subject to settlement on the day of placement. Two (2) 

copies of written confirmation of placement must be received by BTr before 4:00 p.m. 

2.2. Attached is a pro-forma ìConfirmation of Placementî for use by GOCCs/TEIs/LGUs. 

The lower portion of the placement instruction shall be accomplished by BTr to acknowledge 

placements by GOCCs/TEIs/LGUs. A copy of which shall then be returned to investing 

GOCCs/TEIs/LGUs as confirmation of government securities issued. 

2.3 Upon placement/maturity of the government securities, BTr shall credit/debit GOCCs/ 

TEIs/LGUs Securities Account in the BTr-Book Entry System (BTr-BES), simultaneously, 

the settlement bank shall correspondingly debit/credit GOCCs/TEIs/LGUs Cash Accounts 

and credit/debit TOP Account.


2.4 GOCCs may sell their government securities prior to maturity only to other GOCCs 

which are members of BTr-BES. 

2.5 TEIs may sell their government securities only to other TEIs which are members of BTr- 

BES. 

2.6 A copy of their confirmation of sale/purchase shall be submitted to BTr as basis for 

effecting the transfer in the BTr-BES. 

2.7 A pledge of Government Securities may be effected by sending BTr the pledge document 

with the request to earmark or set aside the securities which are the subject of pledge. 

2.8 The following BTr personnel are authorized to accept placements of GOCCs/TEIs/LGUs 

effective 03 June 1996: 

JOVITA J. AGUADO 

MELODY A. PLANILLO 

Tel. No. 527-3117/527-2827/527-3132 

Fax No. 527-3132 

2.9 Written confirmation of placement should be addressed to: 


Attn: Division Chief, Securities Operations Group 

Bureau of Treasury 

2/F, Palacio del Gobernador 

Intramuros, Manila 

3.0 

Transitory Provision 

3.1 OTC placements prior to 3 June 1996 shall continue to be governed by the BSP rules. 

BSP shall continue to service i.e., redemption and coupon payments, the said placements. 

3.2 To shift from BSP-BES to BTr - BES, all rollovers of GOCCs/TEIs/LGUs placements 

after 03 June 1996 shall be instructed to BSP-GSD to credit the proceeds to the Account of 

the Treasurer of the Philippines. Thereafter the rollover of said placement under BTr-BES 

shall be settled using the Autocharge Authority of GOCCs/TEIs/LGUs on their account with 

LBP. 

4.0 

Effectivity 

This Memo shall take effect immediately. 

Adopted: 31 May 1996 



óo0oó

1738 



Department Order No. 52-96 

To Further Simplify the System of Deposit of National Collections 

to the Treasurer of the Philippines Account with Authorized 

Government Depository Banks 

I 

General Provisions 

1. National Collecting Officer (NCO)/Local Treasurer (LT) shall deposit daily their collections 

for the day into the interest earning Savings Account of the Treasurer of the Philippines 

(TOP) with Authorized Government Depository Banks (AGDBs) to which they are accredited 

by the Treasury Fiscal Examiner (TFE) of the Bureau of the Treasury (BTr). 

2. NCO/LT shall accomplish the AGDB deposit slip in triplicate. The deposit slip shall pertain 

to collections of one date. Any collection after a deposit had been made, shall be deposited 

on the next banking day. A List of Collections (LC) (sample form attached as Annex A) shall 

be attached to the deposit slip copy for the TFE. 

3. The deposit shall be maintained in the Savings Account of the TOP for a maximum of five 

(5) days counted from value date (deposit date). Failure of an AGDB to value the deposit on 

deposit date shall subject that AGDB to a penalty rate equivalent to one (1) percent of the 

amount of deposit for everyday of delay in value dating the deposit on deposit day. 

4. The BTr-CO, based on AGDB branch validated deposit slip, shall notify the AGDB Head 

Office (HO) of total deposits in TOP account in that Bank for a given day. 

5. AGDBs shall validate the BTr-CO notice not later than day two (2) of deposit value date 

for collections deposited with AGDB branches in Metro Manila, and not later than day three 

(3) of deposit value date for collections deposited with AGDB branches outside Metro Manila. 

II 

Definition of Terms 

ìAuthorized Government Depository Banksî refer to a bank the majority capital stock of 

which is owned by the Government, its instrumentalities and/or government owned or 

controlled corporation. 

ìNational Collectionsî refer to all fees, charges, assessments, and revenues collected by 

departments, bureaus, offices or agencies in the exercise of their functions, at such rates as 

are now or as may be approved by the Secretary concerned, for remittance to the National 

Treasury for credit to the General Fund pursuant to Section 44 of Book VI, E.O. No. 292 and 

Section 3 of B.P. Blg. 325. 

ìTreasury Fiscal Examinerî refer to the Fiscal Examiner of the Bureau of Treasury assigned 

in every province/city, charged with the primary function of (1) reporting national collections


deposited with AGDBs by NCOs and LTs; (2) ascertaining the correct and full amount of 

national revenues collected; (3) and ensuring the deposit on the day of collection or on the 

next banking day with AGDB. 

1. NCO/LT 

III 

Responsibilities Of: 

a. Prepare LC for the day. Each LC shall be prepared in triplicate and shall be 

numbered. The date of the LC shall be the date of collection regardless of the 

date of deposit. The LC for collections received and deposited on the same day 

shall be labeled A. (See sample form attached as Annex A). The LC for collections 

received on the same day but deposited the next banking day shall be 

labeled B. (See sample form attached as Annex B). Collections pertaining to 

previously dishonored check shall be footnoted making reference to date subject 

check was deposited. (See sample forms attached as Annexes A and B). 

b. Deposit all National Collections to the Savings Account of the TOP in AGDB 

Branch to which they are accredited by the TFE. 

c. Collections received after banking hours or after deposit had been made, shall 

be deposited the next banking day. 

d. Fill up AGDBís deposit slip in triplicate, indicate the LC number on deposit slip. 

Attach LC to the validated deposit slip copy for TFE. 

2. AGDB BRANCH AND H.O. 

a. Receiving teller shall validate 3 copies of deposit slip, stamp tellerís name and 

sign. 

b. Distribute copies of validated deposit slip as follows: 

original - AGDB branch 

second copy - NCO/LT 

third copy (with attached list of collections) - TFE 

c. Notify the NCO/LT of dishonored check, copy furnish the TFE. 

d. Prepare Daily Summary of deposits of National Collections and submit 

together with the third copy of validated deposit slip to the TFE. 

e. The AGDB HO, based on the reports of its branches, shall issue/deliver a 

credit advice to the TOP. Attach to the credit advice a daily summary of 

deposits by branches arranged as to Regional Offices. 

f. For reports of AGDB branches in Metro Manila, AGDB-HO shall deliver the 

credit advice to TOP not later than Day 2 from deposit value date. 

g. For reports of AGDB branches outside Metro Manila, AGDB-HO shall deliver 

the credit advice to TOP not later than Day 3 from deposit value date.

1740 

3. TFE: 


a. Pick up daily validated deposit slip with attached _______ Daily Summary of 

Deposits from AGDB. 

b. Match/Reconcile the amounts of validated slips with AGDB ______Daily Summary 

of Deposits. 

c. Require NCO/LT concerned to demand the refund of dishonored check and 

deposit the refund upon receipt. 

d. Prepare daily report (See sample form attached as Annex C.) 

e. Send daily report to Regional Office daily. 

4. TREASURY REGIONAL OFFICE: 

a. Sum up and consolidate all daily reports of provincial fiscal examiners in the 

Region on a per day basis. 

b. Submit immediately to BTr-CO: TARD the Daily Consolidated Summary of 

Deposited Collections-A (DCSDC-A) through fax using the prescribed format (See 

sample form attached as Annex D). Submit whatever report is available daily 

without waiting for the other reports. Late reports of TFE shall be dated by the 

Region as of the date of deposit (date of provincial report). 

c. Mail the original copy of the DCSDC-A faxed to Central Office and the DCSDC- 

B. (See sample form attached as Annexes D and E). 

IV 

Repealing Clause 

Provisions of DOF Order No. 14-94 inconsistent herewith are hereby repealed. 

V 

Sanctions 

Failure to comply with the requirements of this Order, shall subject the responsible 

officer and employee to appropriate criminal and/or administrative action. 

VI 

Effectivity 

This Department of Finance Order shall take effect on June 1, 1996. 

Adopted: 22 May 1996 

(SGD.) ROBERTO F. DE OCAMPO 

Secretary 

óo0oó



Treasury Circular No. 3-98 

Simplifying Compliance with Unclaimed Balances Law 

Act No. 3936, as amended by Presidential Decree No. 679, otherwise known as the 

ìUnclaimed Balances (UB) Lawî, mandates that banks, building and loan associations and 

trust corporations shall report, under oath, to the Treasurer of the Philippines (TOP) all their 

deposit balances which remain unclaimed for ten (10) years or more. 

The report is required within the month of January of every odd year, i.e., after the 

bank, building and loan association and trust corporation has communicated with the person 

in whose favor the UB stand at their last known place of residence or post office addresses. 

Moreover, that a copy of the report shall be posted in a conspicuous place in the premises of 

the bank, building and loan association and trust corporation for at least sixty days from the 

date of filing. 

Attached is a copy of Act No. 3936, as amended, for easy reference. 

Our experience shows that branches of banks, building and loan associations and 

trust corporations report to the TOP separately, making it cumbersome for the Government 

to file escheat proceedings in the Courts where the branches are located. 

On the principle that branches are treated as one unit with their Head Office, the statutory 

requirement for banks, building and loan associations and trust corporations to submit 

reports on Unclaimed Balances are hereby simplified as follows: 

1. Effective odd year 1999 and henceforth, the Head Office of banks, building and loan 

associations and trust corporations shall forward to the TOP, in compliance with Act No. 

3936, as amended, a consolidated report, under oath and in triplicate copies, of all deposits 

held by them and their branches in favor of persons known to be dead, or who have not 

made further deposits or withdrawals, during the preceding ten years or more, indicating 

therein: 

1.1 The names and last known place of residence or post office addresses of the 

persons in whose favor such UB stands, by branches and arranged in alphabetical 

order; 

1.2 The amount and date of the outstanding UB, and the nature thereof; 

1.3 The date when the person in whose favor the UB stands died, if known, or the 

date when his/her last deposit or withdrawal is made; 

1.4 The interest due on such UB, if any, and the amount thereof; and 

1.5 Compliance with the requirements of Section 2 of Act No. 3936, as amended, 

that is:

1742 


1.5.1 Notice to the persons in whose favor the UB stand at their last known 

place of residence or post office addresses. 

1.5.2 Posting of the above-mentioned sworn report in conspicuous place in 

the premises of the bank, building, and loan association and trust corporation, 

and 

2. Failure, neglect, and/or refusal of any Head Office of any bank, building and 

loan association and trust corporation to make and file sworn report as required 

above shall subject the same to a penalty prescribed under Section 4 of Act No. 

3936, as amended. 

All circulars, memoranda or orders inconsistent herewith are hereby deemed revoked 

or modified accordingly. 

Adopted: 22 June 1998 




óo0oó 

Department of Finance Circular No. 3-98 

Procedure for the Retail of Small Denominated Treasury Bills 

1.0 

Background 

1.1 Pursuant to the mandate of Sec. 129 of R.A. No. 7653 to phase out the fiscal agency 

functions of Bangko Sentral ng Pilipinas (BSP) and transfer the same to the Department of 

Finance (DOF), the latter designated the Bureau of Treasury (BTr) to be the Fiscal Agent of 

the National Government. 

1.2 Further, pursuant to DOF Circular No. 141-95, the issuance and servicing of government 

securities was also transferred to BTr. 

1.3 Henceforth, the investments/placements of investors in Small Denominated Government 

Securities (SDGS) shall be transacted with BTr. 

2.0 

Participants and Their ROLES, DUTIES and OBLIGATIONS 

2.1 BUREAU of TREASURY (BTr) 

A. The BTr shall issue the SDGS on a TAP basis, price based on the Weighted Average 

Yield Rate of the last weekly auction.


B. The BTr shall be responsible in maintaining a fully scripless registry for government securities 

under the Small Investorís Program. 

C. The BTr shall implement a fully economic environment to cover the entire range of activities 

related to the issue, sale, service, retirement and redemption of government securities. 

D. The BTr shall secure the necessary budgetary support for the implementation of Small 

Investorís Program. 

E. The BTr agrees to provide the backroom support for the SDGS. Backroom shall cover: (a) 

recording the purchase or sale transaction; (b) the transfer of ownership of such securities; 

(c) servicing of interest payments, amortization and redemption of principal; and (d) maintenance 

of securities accounts ledgers denoted by numbered accounts to ensure examination 

investors confidentiality. 

F. The BTr shall authorize the necessary interfaces to its RoSS to enable the SIP Retailing 

Platform Services to function effectively and efficiently. 

G. The BTr shall be responsible for accrediting the agents and appointing settlement bank/ 

s for the SIP. The BTr shall, in accordance with existing rules and regulations, adopt procedures 

for such accreditation and appointment. 

H. The BTr shall issue SDGS corresponding to the amount stated on the individual purchase 

orders and credit the investorís RoSS account upon receipt of confirmed purchase orders. 

I. The BTr shall issue a confirmation of the transfer of government securities. 

2.2 SETTLEMENT BANKS (SB/s) 

A. The SB/s shall open a settlement account for the investor who deposits funds with them 

for the SIP. 

B. The SB/s shall log on to BTr to create a RoSS account number for the investor. 

C. The SB/s shall provide BTr with the necessary information to facilitate the development of 

the settlement bank-related function within the SIP Retailing Platform for account opening 

and maintenance. 

D. The SB/s shall process instructions from BTr based on the orders submitted by Licensed 

and Accredited Agents. It shall only process those investor accounts with sufficient funds for 

the amount corresponding to the purchase order and credit BTrs settlement account. 

E. The SB/s shall accept or deny the instruction of BTr to debit the account of the investor 

and credit the account of BTr for investment in SGDS. 

2.3 E-COMMERCE SERVICE PROVIDER (ECSP) 

A. The ECSP shall provide the Secure Trading Platform (STP) that will link the agents in the 

field, the settlement bank and the Bureau of Treasury.

1744 


B. The ECSP shall maintain a secure and confidential platform that will deliver the following: 

1. Settlement account facility; 

2. Acquisition of purchase order. 

3. Submission of queued purchase orders to the settlement bank for authorization. 

4. Submission of authenticated and authorized issuance instructions to BTr. 

5. Trade confirmation messages for agents for their clients. 

6. Account balance inquiry. 

7. Market information. 

2.4 AGENTS 

A. Agents shall use the STP Platform to submit purchase orders for authentication and 

authorization. 

B. Agents shall take purchase orders from investors. 

C. Agents shall allow the investors to use the STP Platform to query the following, using a 

PIN: 

1. Trade confirmation 

2. RoSS account balance 

3. Market information (i.e. current prices, closing prices, yield curve) 

D. Promotion of SGDS under the SIP; 

E. Solicit orders from clients for which the agent shall be entitled to distribution fee of not 

more than 0.50% of investorís yield. 

3.0 

Procedures 

Any investor who desires to purchase SDGS shall subscribe to the following 

procedure: 

3.1 The investor deposits money/funds with the settlement bank. 

3.2 Settlement bank opens a settlement account and then logs on to create a RoSS 

account number which shall confidentially be provided to the investor. 

3.3 The investor keys in his PIN number. 

3.4 The investor goes to an authorized agent to execute a purchase. 

3.5 The authorized agent submits the purchase order to the BTr-RoSS. 

3.6 The BTr queries the settlement bank (SB) for sufficiency of funds as basis to accept or 

deny the purchase order (PO). 

3.7 If the account of the investor is sufficient, SB electronically confirms the sufficiency of 

funds. 

3.8 BTr instructs SB to debit the account of the investor and credit the account of TOP. 

3.9 BTr issues the securities and confirms the transfer. 

4.0 

Manner of Settlement


Clearing and settlement will be on a delivery-versus-payment basis which will be 

achieved through the use of an electronic platform provided by an E-Commerce Service 

Provider. 


Adopted: 4 Nov. 1998 


(SGD.) EDGARDO B. ESPIRITU 


óo0oó 

Treasury Office Order No. 64-98 

Rules on the Grant of Relief to Owners, Holders or Assignees of Lost, Stolen, 

Destroyed, Mutilated or Defaced Certificated Government Securities (GS) 

1.0 

Coverage 

This Treasury Office Order shall apply to all certificated securities issued by the Republic 

of the Philippines, which have been lost, stolen, completely or partially destroyed, 

defaced or mutilated, without bad faith or gross negligence on the part of the owners thereof. 

2.0 

Report of Loss, Theft, Destruction, Defacement or Mutilation 

Report of the loss, theft, destruction, defacement or mutilation of certificated Government 

Securities (GS) shall be made to the Director, Liability Management Service, Bureau 

of Treasury, under oath and in the prescribed form (Annex ìAî), indicating therein: 

a. Name and present address of the owner; 

b. Complete and full description of the GS, specifying the date of issue, denomination, serial 

number, interest rate and face value; 

c. Circumstances surrounding the loss, theft, destruction, defacement, or mutilation with a 

request that a caveat be entered on the records of the BTr against the transfer, payment 

or exchange thereof. 

3.0 

Application for Relief 

The application for relief may be filed together with the Report of the loss, theft, destruction, 

defacement or mutilation of the certificated GS in the form herein prescribed (Annex 

Bî) with the following supporting documents: 

a. Affidavit of the claimant and other persons having knowledge of the facts establishing to 

the satisfaction of the BTr.

1746 


a.1 the complete identification of the certificated GS by date of issue, serial number, 

denomination, face value, coupon/s, if any, attached; 

a.2 his ownership; 

a.3 the loss, theft, destruction, defacement or mutilation of the GS; and 

a.4 that such loss, theft, destruction, defacement or mutilation of GS was without 

bad faith or gross negligence on his part. 

b. In case of partial destruction, defacement or mutilation, remaining portion of the certificated 

GS, subject of the claim. BTr through Liability Management Service (LMS) shall have 

the right to determine the condition of a defaced/mutilated security to be able to grant the 

relief sought by claimant. 

4.0 

Notice of Loss, Theft, Destruction, Defacement or Mutilation 

If upon receipt and examination of the application for relief together with the supporting 

documents, BTr is satisfied and convinced that there is valid basis for the claim, and relief 

may be granted, the claimant shall be required to immediately cause the publication of a 

Notice of Loss, Theft, Destruction, Defacement or Mutilation in accordance with Section 

5.0, as hereunder provided, and to file an indemnity bond as provided in Section 6.0 hereof. 

5.0 

Publication of Notice of Loss, Theft, Destruction, Defacement or Mutilation 

Notice of Loss, Theft, Destruction, Defacement or Mutilation of Certificated GS shall 

be published in a newspaper of general circulation once a week for four (4) consecutive 

weeks at the expense of the owner, holder or assignee of the lost, stolen, destroyed, defaced 

or mutilated certificated GS. 

Should no adverse claim(s) to the lost security be filed with BTr within one (1) month 

from the date of the fourth and last publication of the Notice of Loss, Theft, Destruction, 

Defacement or Mutilation of the Security, claimant shall submit the four (4) tearsheets (full 

pages wherein publications were made) together with the publisherís affidavit as additional 

supporting documents, and BTr shall proceed to grant the relief sought in accordance with 

Section 8.0, as hereunder provided. 

If at that time, however, a third party claim has been filed on the subject security, the 

granting of the relief shall be held pending final determination of the controversy, either by 

BTr or by the courts, allowing the conflicting claimants to interplead, if necessary. 

The granting of relief after one (1) month from the date of the fourth and last publicartion 

of the Notice shall be without prejudice to the right of third parties to present claims on the 

securities within two (2) years from the date of the fourth and last publication after which 

period, the right to present any and all third party claims on said securities shall be barred 

forever.


6.0 

Bond of Indemnity 

The owner of lost, stolen, destroyed, defaced or mutilated certificated GS, applying for 

relief, shall file with the BTr a bond to be executed by a corporated surety qualified under the 

laws of the Republic of the Philippines in a penal sum equivalent to the amount of the lost, 

stolen, destroyed, defaced or mutilated GS, the interest which would accrue thereon until 

the principal becomes due and payable and a reasonable amount to answer for court expenses 

or costs of litigation. 

The Bond of Indemnity shall not be required in the following instances; 

a. If the BTr is fully satisfied that the destruction, defacement or loss, as the case may be, 

occurred without fault of the owner and while the security was in the custody or control of the 

Republic of the Philippines or of a person thereunto duly authorized as its lawful agent, 

excluding the Postal Service when acting solely in its capacity as public carrier of mails. 

b. If the entire security is substantially presented or surrendered by the owner, and BTr is 

satisfied as to identity of the security presented and the missing portions are not sufficient to 

form the basis of a valid claim(s) against the Republic of the Philippines. 

7.0 

Grant of Relief 

If upon examination of the proofs submitted, it is clearly shown to the satisfaction of 

BTr that the certificated GS has, without bad faith or gross negligence on the part of the 

owner, holder or assignee, been lost or stolen, so that it is not held by any person as his own 

property, or has been totally or partially destroyed, mutilated or defaced as to impair its value 

to the owner, relief may be granted, under the following rules: 

a. If the security is not payble to bearer and has not been so assigned as to become in effect, 

payable to bearer, BTr shall: 

a.1 In case the security has not matured or become redeemable pursuant to a 

call for redemption, BTr shall proceed to register the security in the Registry of 

Scripless Securities ROSS); or, 

a.2 In case the security has matured or become redeemable pursuant to a call for 

redemption, make payment thereof to the owner with such interest only as would 

have been paid and the security been presented when it became due and payable. 

b. If the security has been lost, stolen, mutilated or defaced while the security was in the 

custody or control of the Republic of the Philippines (excluding the Postal Service when 

acting solely as public carrier of mails) or of a person thereunto authorized as lawful agent of 

the National Government, BTr shall register the security in the ROSS or make payment 

thereof in line with subparagraphs (a.1) and (a.2) of paragraph (a) above. 

c. If the security is payable to bearer, or so assigned as to become, in effect, payable to 

bearer, and has been lost, stolen, destroyed, or mutilated under circumstances not falling

1748 


under paragraph b above, relief may be granted if the attendant circumstances, in the judgment 

of BTr, indicate that the security has been destroyed or irretrievably lost and will never 

become the basis of a valid claim against the issuing government entity, and a sufficient 

period of time has elapsed after the security has matured or become redeemable pursuant 

to a call for redemption. Relief shall be in the form of payment of the face value of the 

security together with interest only as would have been paid had the security been presented 

when it became due and demandable. 

In case of death of the original claimant/holder/assignee of lost, stolen, defaced and 

mutilated GS, BTr shall grant the relief sought to the claimantís successor/s in interest if, 

upon examination of the following proofs submitted and such other proofs as it may deem 

necessary to protect the interest of the National Government, it is clearly shown to its 

satisfaction that the successor/s in interest is/are entitled to relief, to wit: 

a. Original Claimantís Death Certificate; 

b. Marriage Certificate, if applicable; 

c. Birth Certificate/s of Successor/s in interest; 

d. Affidavit/s of Successor/s in interest; 

e. Waiver from other Successor/s in interest, if applicable. 

9.0 

Periof to Claim Relief 

Claim for payment of lost, stolen, defaced and mutilated GS which has matured but 

remain unredeemed shall be brought within ten (10) years from the time of the maturity of 

the GS. 

10.0 

Reservation of Rights 

BTr reserves the right to modify, amend, supplement, revise, rescribe or withdraw all 

or any of the provisions of this Order at any time, or from time to time. 

11.0 

Effectivity 

This Office Order shall take effect immediately. 

Adopted: 7 Sept. 1998 

(SGD.) PROF. LEONOR MAGTOLIS BRIONES 


óo0oó



DOF Order No. 74-98 

Further Amending Department of Finance Order No. 141-95, 

As Amended, Entitled ìRevised Rules and Regulations for the Issuance, 

Placement, Sale, Service, and Redemption of Treasury Bills 

and Bonds Under R.A. No. 245, As Amended 

Pursuant to Republic Act No. 7653, otherwise known as ìThe New Central Bank Actî 

and in accordance with Republic Act No. 245, as amended, the pertinent provisions of DOF 

Order No. 141-95, as amended by DOF Order No. 81-96 dated June 10, 1996, DOF Order 

No. 32-98 dated March 13, 1998 and DOF Order No. 2-98 are hereby amended/modified as 

follows: 

Sec. 1 Part A (Auction Method), Chapter III (Method of Origination) is hereby amended 

as follows: 

1.1 Sections 9 and 10 shall read as follows: 

ìSection 9. Public Notice of Offering - The Secretary of Finance may, from 

time to time, by public notice offer Treasury Bills and Bonds for sale and invite 

tenders, therefore, through the Bureau of Treasury. The Treasury Bills and Bonds 

so offered, and tenders received shall be subject to the terms and conditions 

imposed under these rules and regulations, except as they may be modified by 

the Secretary of Finance, in consultation with the Monetary Board, which shall be 

made part of the public notice of offering. The Public Notice of Offering shall be 

transmitted through the Bureau of Treasuryís Automated Debt Auction Processing 

System (ADAPS) and/or by any other method as may be prescribed by 

the Bureau of the Treasury and shall indicate such information as may be 

deemed appropriate by the Secretary of Finance.î 

ìSection 10. Submission of Tenders -Tenders in response to a public notice 

shall be transmitted to the Bureau of Treasury (BTr) thru ADAPS, which is capable 

of electronically managing the tender of Treasury Bills and Bonds, in the 

case of GSEDs and in official tender forms required by the BTR before the prescribed 

cut-off-time for receiving tenders for manual entry to BTrís ADAPS, in 

the case of NON-GSEDs. 

In case of system failure, power outages or as may be authorized by the Secretary 

of Finance, tenders shall be submitted in official tender forms required by 

the Bureau of Treasury before the prescribed cut-off time for receiving tenders 

for manual entry to the Bureau of Treasuryís ADAPS. 

Each tender shall be unconditional and shall be for an amount of not less than 

P10.00 Million (maturity value) for dealers and 1.0 Million (maturity value) for 

non-dealers. In case of Treasury Bills, bids shall be stated in three (3) decimal 

places e.g. 13.000%. Bids for Treasury Bonds shall be in multiples of 1/8 of 1% 

e.g. 13.125%. Non-competitive tenders shall be accepted at the weighted average 

yield of the accepted competitive tenders.î

1750 


1.2 Sections 11, 12, and second paragraph of Section 14 shall read as follows: 

ìSection 11. Receipt and Processing of Tenders by the Bureau of Treasury - 

Tenders transmitted through the Bureau of Treasury, prior to the cut-off time 

fixed under Section 10 hereof, for the receipt of tenders shall automatically be 

acknowleged by the ADAPs or stamped with the time dated check by the 

Securities Origination Division-Bureau of Treaury (SOD-BTr), as the case 

may be. Neither the Department of Finance nor the Bureau of Treasury shall 

bear any liability whatsoever for any errors in tenders received or for delays in the 

transmission of tenders.î 

ìAll tenders received on time shall be deliberated upon immediately after the 

cut-off time set by the Auction Committee composed of the Secretary of Finance 

or any Undersecretary designated by him, as Chairperson, the Treasurer of the 

Philippines, as Vice-Chairperson; the Chairperson of the Securities and Exhange 

Commission or his authorized representative as Member; the Assistant Secretary 

for Domestic Finance Group of the Department of Finance, as Member; the Deputy 

Treasurer for Operations and the Deputy Treasurer for Planning and Policy, as 

Members; and the Managing Director for Research of Bangko Sentral ng 

Pilipinas, as Member. The Deputy Treasurer for Operations shall also act as the 

Executive Officer. The Auction Committee staff support shall be provided by the 

appropriate division of the Bureau of Treasury. The Secretary of Finance may 

designate an additional member(s) in the Auction Committee as he may deem 

appropriate.î 

ìSection 12. Award by the Auction Committee - The Auction Committee shall 

make a decision as to the amount and rate of the awards. Such decision shall be 

transmitted to the winning GSEDs/Non-GSEDs through the Bureau of Treasuryís 

ADAPS/BTrís SOD immediately after the Committee decision is confirmed. A 

member of the Auction Committee shall be assigned to confirm the transmitted 

decision. The Auction Committee shall then download the awarded securities to 

the winning bidderís Principal Securities Account in the ROSS. A member of the 

Auction Committee shall likewise be designated to confirm the downloaded information. 

Thereafter, the Auction Committee shall sign a print-out of the auction 

results summary.î 

ìSection 14. Payments of Awards. - xxx . . . 

On the settlement date the concerned GSED/Non-GSED shall instruct Bangko 

Sentral ng Pilipinas (BSP) to debit their Demand Deposit Account of the Treasurer 

of the Philippines maintained with the Bangko Sentral ng Pilipinas, which in 

turn, shall send a credit advice to the Bureau of Treasury.î 

Sec. 2. Part B (Over-the-Counter), Chapter III (Method of Origination) is hereby amended/ 

modified as follows: 

2.1 Items (b) and (c), Section 19 shall read as follows: 

ìSection 19. GOCCs Placement -


(b) The applicable yields rates for Treasury Bills issued to GOCCs shall be at 

a uniform rate equivalent to the lowest acceptable yield rate of the immediately 

preceding Treasury Bills auction, subject to the confirmation by the Secretary of 

Finance that the rate is acceptable to him. 

(c) Treasury Bonds issued to GOCCs shall be priced based on the current 

market yield. The applicable coupon rate shall be based on the rate 

corresponding to the auctioned Treasury Bonds, subject to the confirmation 

by the Secretary of Finance.î 

2.2 Item (b), Section 21 shall read as follows: 

ìSection 21.LGUs Placement - 

(b) Treasury Bonds issued to LGUs shall be priced based on the current 

market yield. The applicable coupon rate shall be based on the rate corresponding 

to the auctioned Treasury Bonds, subject to the confirmation by 

the Secretary of Finance.î 

Sec.3. Part C (Tap Method), Chapter III (Method of Origination) is hereby amended/modified 

as follows: 

3.1 Section 26 shall read as follows: 

ìSection 26. Definition - A manner of sale or offering of Government Securities 

opened exclusively to Government Securities Eligible Dealers (GSEDs) and 

Financial Institutions in the event of an acute and protracted shortage of 

government securities. 

However, the newly established SMALL INVESTORíS PROGRAM (SIP) 

shall be open to SEC licenses and accredited agents of the BTr, not necessarily 

GSEDs. 

3.2 Item (a), Section 27 shall read as follows: 

ìSection 27. Authority to Sell other than through Auction and through Negotiation 

- 

(a) The tap window may be accessed by GSEDs/FIs from Monday through 

Thursday (with settlement and issue dates on Wednesdays, for T-Bills and on 

Thursdays, for T-bonds) on a first-come-first-served basis. However, in the 

case of the Small Investorís Program (SIP), the window may be accessed 

from Monday through Friday subject to settlement on the day of placement.î 

SEC. 4. All Circulars, Memoranda, or Orders inconsistent herewith are hereby revoked 

or modified accordingly. 

SEC 5. This Order shall take effect immediately.

1752 



(SGD.) EDGARDO B. ESPIRITU 

Secretary 

Department of Finance 

óo0oó 

Treasury Order No. 1-99 

Amendment of Sections 6.2 and 7.0 of Treasury Order No. 01-95 

dated 05 December 1995, Regarding Revised Regulations 

Governing the Fidelity Bonding of Government Officials and Employees 

Sections 6.2 and 7.0 of T.O No. 01-95 which took effect on January 01, 1996 are 

hereby amended as follows: 

6.0 AMOUNT OF BOND 

ìSection 6.2 An official/employee who has both money and property accountability, 

shall be bonded only once to cover both accountabilities, but the amount 

of the bond shall be in accordance with the REVISED SCHEDULE Annex A, 

provided, however, that the amount of bond shall not exceed Five Million 

(P5,000,000.00) Pesos. 

7.0 BOND PREMIUM 

ìSection 7.2 The premium of a fidelity bond shall be one and one half 

percentum (1.5%) of the amount of bond but not less than P150.00. 

ìSection 7.7 Approved fidelity bonds are valid for one year. 

7.7.1 The bonds shall be renewed by the Agency by submitting to the Bureau 

of Treasury, a list of bonded officials and employees, subject to renewal and 

other attachments such as: 

a. Copy of latest BTr transmittal letter approving original/renewed application; 

b. Latest copy of Statement of Assets and Liabilities; 

c. Agency certification that applicant has no pending administrative and/or 

criminal case. 

7.7.2 Expired bond which is not renewed, shall be automatically cancelled. 

This Treasury Order shall take effect on January 01, 1999. 

(SGD.) PROF. LEONOR MAGTOLIS BRIONES 

Treasurer of the Philippines


CIVIL SERVICE COMMISSION 

Datte Filed: 17 November 2000 

Memorandum Circular No. 19, s. 2000 

Revised Dress Code Prescribed for All Government 

Officials and Employees in the Workplace 

The Civil Service Commission, as mandated by law, issued CSC Memorandum Circular 

No. 14, s. 1991, prescribing the Dress Code for All Government Officials and Employees, 

and later clarifying it through CSC Memorandum Circular No. 25, s. 1991. 

However, certain provisions thereof need to be further clarified in order to conform to 

the changes brought about by the Philippine Centennial in 1998, which paved the way for 

the institutionalization of the wearing of Filipiniana attire during Mondays, and to the Gender 

Advocacy Program of the Civil Service Commission. 

In response to the foregoing demands of the times, and in accordance with the 

Commissionís mandate to improve personnel administration, the Commission hereby adopts 

the attached Revised Dress Code Prescribed for All Government Officials and Employees in 

the Workplace. 

All other existing Civil Service Commission issuances which are inconsistent herewith 

are deemed repealed or amended. 

This Memorandum Circular shall take efffect fifteen (15) days after the date of its 

publication in a newspaper of general circulation. 


(SGD.) CORAZON ALMA G. DE LEON 

Chairman 

RESOLUTION NO. 002515 

WHEREAS, Section 3, Article IX-B of the 1987 Constitution provides that the Civil 

Service Commission, as the central personnel agency of the Government, shall adopt 

measures to promote morale, efficiency, integrity, responsiveness, progressiveness, and 

courtesy in the civil service, and shall likewise institutionalize a management climate conducive 

to public accountability. 

WHEREAS, Section 12 (3), Chapter 3, Title I (A), Book V of the Administrative Code of 

1987 (Executive Order No. 292) empowers the Civil Service Commission to promulgate 

and adopt plans and programs to promote economical, efficient and effective personnel 

administration in the Government; 

WHEREAS, Section 12 (19), Chapter 3, Title I (A), Book V of the Administrative Code 

of 1987 provides that the Commission shall perform all functions properly belonging to a 

central personnel agency and such other functions as may be provided by law;

1754 


WHEREAS, the Code of Conduct and Ethical Standards for Public Officials and 

Employees (Republic Act No. 6713) mandates that public officials and employees shall 

perform and discharge their duties with professionalism and shall lead modest lives 

appropriate to their positions and income. Likewise, they shall not indulge in extravagant or 

ostentatious display of wealth in any form; 

WHEREAS, the existing rules and regulations in the Commission on appropriate attire 

(Dress Code) when performing official functions inside the workplace, need to be updated 

and revised in order to conform with the Gender Mainstreaming and Institutionalization of 

Gender and Development in the bureaucracy. 

NOW, THEREFORE, the Commission hereby resolves to promulgate the Revised 

Dress Code Prescribed for All Government Officials and Employees in the Workplace. 

1. Coverage. This Dress Code shall apply to all officials and employees of the government, 

both male and female, except to those regularly performing their duties and functions in 

the field, or those temporarily assigned in actual field operations. 

2. Official Attire. The ìFilipinianaî and the respective office uniforms as prescribed by the 

different government agencies/offices shall be the official attire of all government officials 

and employees, which shall be worn in accordance with their assigned schedule, as 

herein below stated: 

Monday ìFilipinianaî Attire 

Tuesday Office Uniform for Tuesday 

Wednesday Office Uniform for Wednesday 

Thursday Office Uniform for Thursday 

Friday Office Uniform for Friday, if any; 

If there is none, Appropriate Business Attire 

3. Appropriate Attire. On those days when there is no prescribed office uniform for the day, 

employees shall be dressed in appropriate business attire. 

The wearing of ìmaongî pants, although generally prohibited, may be considered as 

appropriate attire when paired with a collared polo/shirt (for male employees), or any 

appropriate blouse or shirt (for female employees). 

4. Prohibited Attire. The following attire shall be prohibited for all government employees 

when performing official functions inside the workplace: 

4.1 Gauzy, transparent or net-like shirt or blouse; 

4.2 Sando, strapless or spaghetti-strap blouse (unless worn as an undershirt), 

tank-tops, blouse with over-plunging necklines; 

4.3 Micro-mini skirt, walking shorts, cycling shorts, leggings, tights, jogging pants; 

4.4 Rubber sandals, rubber slippers, ìbakyaî. 

5. Other Prohibitions. The following shall also be prohibited during office hours and within 

office premises:


5.1 Ostentatious display of jewelry, except for special occasions and during 

official celebrations; 

5.2 Wearing of heavy or theatrical make-up. 

6. Exemptions That May Be Allowed. In the implementation of this Dress Code, certain 

exemptions may be allowed, on the following grounds: 

6.1 When the nature of work of the official or employee demands that he/she 

wears clothing other than those prescribed above; 

6.2 When religious affiliation or creed or any legitimate practice by the 

employee in relation thereto, requires him/her to wear a particular clothing; 

6.3 Physical disabilities, and other legitimate health reasons; 

6.4 Pregnant female employees are allowed to wear maternity dress during the 

period of their pregnancy; 

6.5 Employees who lost a loved one can wear mourning clothes during the 

period of mourning; 

6.6 Other circumstances analogous to the foregoing. 

7. Other Matters. Other matters, such as those involving hair style or growing of beard or 

moustache, shall be governed by the internal rules and regulations promulgated by the 

respective agencies/offices. 

8. Penalty In Case of Violation. Any violation of the provisions of this Dress Code shall be 

considered as ground for disciplinary action, for Violation of Reasonable Office Rules and 

Regulations, under Section 22 (c), Rule XIV, Revised Omnibus Rules Implementing Book 

V of the Administrative Code of 1987 (Executive Order No. 292). 

9. Effectivity. This Dress Code shall take effect fifteen (15) days after the date of its publication 

in a newspaper of general circulation. 

10. Repealing Clause. CSC Memorandum Circular Nos. 14 and 25, s. 1991, and all other 

office memoranda, memorandum circulars, resolutions, rules or regulations inconsistent 

herewith, are hereby repealed or modified accordingly. 

(SGD.) CORAZON G. ALMA DE LEON 

Chairman 

(SGD.) JOSE F. ERESTAIN, JR. (SGD.) J. WALDEMAR V. VALMORES 

Commissioner Commissioner 

ATTESTED BY: 

(SGD.) ARIEL G. RONQUILLO 

Director III

1756 


CONSTRUCTION INDUSTRY AUTHORITY OF THE 

PHILIPPINES ( Philippine Domestic Construction Board) 


CIAP Board Resolution No. 5, s. 2000 

Approving the Revised Uniform Guidelines for 

Blacklisting Constructors Involved in Public Construction 

On motion duly seconded. 

WHEREAS, the Construction Industry Authority of the Philippines (CIAP), under Section 

2 of PD 1746, is tasked to promote, accelerate and regulate the growth of the construction 

industry in conformity with the national goals; 

WHEREAS, Section IB 10.5.2 of the Implementing Rules and Regulations (IRR) of PD 

1594 as amended 12 July 1995, provides for the formulation of the uniform guidelines for 

blacklisting constructors involved in public construction and revision of the same whenever 

necessary by a committee composed of representatives from government tendering agencies 

and constructors associations created by the CIAP; 

WHEREAS, the CIAP created the Inter-Agency Committee (IAC) on Blacklisting composed 

of representatives from the Department of Public Works and Highways (DPWH), 

Transportation and Communications (DOTC), Labor and Employment (DOLE), Energy (DOE), 

National Defense (DND), National Power Corporation (NPC), National Irrigation Administration 

(NIA), National Economic and Development Authority (NEDA), Philippine Constructors 

Association, Inc. (PCA), and National Association of Constructors Association of the Philippines 

(NACAP) which formulated the Uniform Guidelines for Blacklisting Constructors Involved 

in Public Construction approved by the National Economic and Development Authority 

(NEDA) Committee on Infrastructure (INFRACOM) on 14 August 1996. 

WHEREAS, the CIAP IAC on Blacklisting reviewed and revised the Guidelines and 

submitted the final revised version to the CIAP Board; 

WHEREAS, Section V-2 of the IRR of PD 1594, as amended 24 May 2000, provides 

that the amendments/revisions to the Guidelines shall be approved by the CIAP Board and 

become effective fifteen (15) days after filing of the same with the Office of the National 

Administrative Register pursuant to Administrative Code of 1987. 

NOW, THEREFORE, in consideration of the foregoing premises, BE IT RESOLVED, 

as it is hereby RESOLVED, to approve the following Revised Uniform Guidelines for Blacklisting 

Constructors Involved in Public Construction based on the recommendations of the 

CIAP IAC on Blacklisting and the agreements of the CIAP Board in its 31st Regular Meeting 

held on 18 July 2000: 

I 

General


The Implementing Rules and Regulations (IRR) of P.D. No. 1594 as amended last 12 

July 1995 provide under Section IB 10.5-2 the formulation of uniform guidelines for blacklisting 

constructors involved in public construction and revision of the same whenever necessary 

by a committee composed of representatives from government tendering agencies and 

constructors associations created by the Construction Industry Authority of the Philippines 

(CIAP). The guidelines shall stipulate, among others, the administrative sanctions to be 

imposed for offenses/violations committed by constructors during the contract implementation 

phase. 

These guidelines were developed to address the following issues: differing sanctions 

imposed by agencies concerned on erring constructors; absence of administrative procedures 

or due process for blacklisting constructors by some concerned agencies; and, lack of 

information networking within and among agencies on offenses committed by constructors. 

II 

Scope 

These guidelines shall cover the blacklisting of constructors involved in government 

infrastructure projects who committed offenses/violations during prequalification, bidding, 

award, and contract implementation. 

The prequalification, bidding and award phases are included in these guidelines to 

harmonize the blacklisting and delisting procedures and to expand coverage of the blacklisting 

reports. 

Joint ventures and consortia are likewise covered by these guidelines but the number 

of times sanctioned and corresponding sanctions imposed shall be accrued by the joint 

ventures and/or consortia concerned and their individual member-constructors. 

III 

Constructors Not Allowed to Participate in the 

Pre-Qualification and Bidding of Government Projects 

A CONSTRUCTOR WHO WAS SUSPENDED OR DISQUALIFIED BY A GOVERN- 

MENT TENDERING AGENCY AND/OR INCLUDED IN THE CIAP CONSOLIDATED GOV- 

ERNMENT-LEVEL BLACKLISTED CONSTRUCTORS SHALL NOT BE ALLOWED TO 

PARTICIPATE IN THE PREQUALIFICATION AND BIDDING OF ALL GOVERNMENT 

TENDERING AGENCIES DURING THE PERIOD OF SUSPENSION/DISQUALIFICATION 

UNLESS A CERTIFICATE FROM CIAP CONFIRMING A DELISTING ORDER FROM THE 

BLACKLISTING AGENCY HAS BEEN SUBMITTED TO THE TENDERING AGENCY 

CONCERNED. 

A JOINT VENTURE OR CONSORTIUM WITH BLACKLISTED MEMBER/S AND/ 

OR AN INDIVIDUAL CONSTRUCTOR WHO IS A MEMBER OF A BLACKLISTED JOINT 

VENTURE OR CONSORTIUM IS LIKEWISE NOT ALLOWED TO PARTICIPATE IN THE 

PREQUALIFICATION AND BIDDING OF ALL GOVERNMENT TENDERING AGENCIES 

DURING THE PERIOD OF SUSPENSION. 

IV 

Definition of Terms

1758 


4.1 APPELLATE AUTHORITY - REFERS TO THE AGENCY/OFFICE EXERCISING GEN- 

ERAL AND/OR ADMINISTRATIVE SUPERVISION/CONTROL OVER THE BLACKLIST- 

ING AGENCY, I.E., IN CASE OF AGENCIES LIKE THE NATIONAL IRRIGATION ADMIN- 

ISTRATION, PHILIPPINE PORTS AUTHORITY, AND PHILIPPINE TOURISM AUTHOR- 

ITY, THE APPELLATE AUTHORITY SHALL BE DEPARTMENT OF AGRICULTURE, 

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS, AND DEPARTMENT 

OF TOURISM, RESPECTIVELY; FOR ALL DEPARTMENT LEVEL AGENCIES SUCH AS 

THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, DEPARTMENT OF TRANS- 

PORTATION AND COMMUNICATIONS, DEPARTMENT OF AGRICULTURE, THE AP- 

PELLATE AUTHORITY SHALL BE THE OFFICE OF THE PRESIDENT. 

4.2 AWARD - A WRITTEN NOTICE FROM THE AGENCY ACCEPTING A BID OR NEGO- 

TIATED PROPOSAL. 

4.3. BID - AN OFFER TO PERFORM THE WORK UNDER THE TERMS AND CONDI- 

TIONS SPECIFIED IN THE INFORMATION TO BIDDERS. 

4.4 BLACKLISTING - AN AGENCY DECISION TO SUSPEND/DISQUALIFY A CON- 

STRUCTOR FROM PARTICIPATING IN ALL GOVERNMENT CONSTRUCTION 

PROJECTS EITHER PERPETUALLY OR FOR A GIVEN PERIOD. 

4.5 BLACKLISTING WITH CONDITIONS - AN AGENCY DECISION TO SUSPEND/DIS- 

QUALIFY CONSTRUCTOR FROM PARTICIPATING IN ALL GOVERNMENT CONSTRUC- 

TION PROJECTS FOR A GIVEN PERIOD WHICH IS DEEMED TO CONTINUE EVEN 

AFTER THE LAPSE OF THE PERIOD UNTIL ALL OUTSTANDING LIABILITIES/OBLI- 

GATIONS WITH THE AGENCY HAVE BEEN SETTLED BY THE SAID CONSTRUCTOR. 

4.6 CONSOLIDATED BLACKLISTING REPORT - A REPORT PREPARED BY THE CIAP 

CONTAINING THE LIST OF CONSTRUCTORS BLACKLISTED BY GOVERNMENT TEN- 

DERING AGENCIES AND THE PHILIPPINE CONTRACTORS ACCREDITATION BOARD 

(PCAB). 

4.7 CONSORTIUM - A COOPERATIVE ARRANGEMENT BETWEEN LICENSED CON- 

STRUCTORS AND NON-CONSTRUCTOR/S TO JOINTLY PERFORM A SINGLE SPE- 

CIFIC UNDERTAKING/PROJECT WITH THE LICENSED CONSTRUCTOR/S AS MAN- 

AGING AND OPERATING PARTNER/S AND OTHERS AS FINANCIER/S OR ANY OTHER 

SUPPORTIVE ROLE. 

4.8 CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES (CIAP) - A GOV- 

ERNMENT AGENCY ATTACHED TO THE DEPARTMENT OF TRADE AND INDUSTRY 

(DTI) CREATED UNDER PRESIDENTIAL DECREE NO. 1746 (AS AMENDED BY EX- 

ECUTIVE ORDER NOS. 679 AND 768). 

4.9 Constructor - deemed synonymous with the term builder and hence, any person or entity 

including joint venture and consortium licensed by the Philippine Contractors Accreditation 

Board (PCAB) who undertakes or offers to undertake or purports to have the capacity to 

undertake or submit a bid for infrastructure projects. 

4.10 CONTRACT IMPLEMENTATION - A PROCESS OF UNDERTAKING A CERTAIN 

PROJECT IN ACCORDANCE WITH THE CONTRACT DOCUMENTS.


4.11 DELIST - TO REMOVE A CONSTRUCTOR FROM THE CONSOLIDATED BLACK- 

LISTING REPORT. 

4.12 Government-Level Blacklisted Constructor - a constructor who was suspended or disqualified 

by a government tendering agency and/or is included in the CIAP-Consolidated 

Government-Level Blacklisted Constructors. 

4.13 HEARING OFFICER/COMMITTEE - AN OFFICER OR BODY DESIGNATED BY THE 

AGENCY TO CONDUCT INVESTIGATION/HEARING OF BLACKLISTING CASES. 

4.14. Infrastructure Projects - refers to construction, improvement or rehabilitation of roads 

and highways, airports and air navigation facilities, railways, ports, flood control and drainage, 

water supply and sewerage, irrigation systems, dams, buildings, communication facilities, 

dredging and reclamation, power generating plants, power transmission and distribution 

facilities and other related construction projects. 

4.15 JOINT VENTURE - A COOPERATIVE ARRANGEMENT OF LICENSED CONSTRUC- 

TORS TO JOINTLY PERFORM A SINGLE SPECIFIC UNDERTAKING/PROJECT WITH 

EACH OF THE PARTNERS CONTRIBUTING TO THE PERFORMANCE. 

4.16 PREQUALIFICATION - THE PROCESS OF EVALUATING THE QUALIFICATIONS 

OF PROSPECTIVE BIDDERS ON THE BASIS OF THEIR COMPETENCE, INTEGRITY, 

AND RESPONSIBILITY RELATIVE TO THE CONTEMPLATED PROJECT. 

4.17 PREQUALIFICATION, BID AND AWARD COMMITTEE (PBAC) - A COMMITTEE 

RESPONSIBLE FOR THE CONDUCT OF PREQUALIFICATION, BIDDING AND EVALU- 

ATION OF BIDS AND RECOMMENDING AWARD OF CONTRACT. 

4.18 PROJECT MANAGEMENT OFFICE - A DEPARTMENT/DIVISION IN AN AGENCY 

ASSIGNED TO SUPERVISE/MONITOR THE IMPLEMENTATION OF PROJECTS. 

V 

SANCTIONS AND GROUNDS FOR BLACKLISTING 

5.1 Prequalification, Bidding and Award STAGE 

The following administrative sanctions as provided for IN THE IRR of P.D. 1594 

shall be imposed for offenses/violations committed by constructors during 

prequalification, bidding and award: 

a. Suspension for one (1) year for first offense, disqualification for two (2) years for the 

second offense, and perpetual disqualification for succeeding offense on any of the 

following: 

a.1 Misrepresentation or concealment of any material fact or information in the 

sworn prequalification statements and/or bids, including but not limited to: 

i. falsification of public documents 

ii. submission of borrowed license (license lending).

1760 


a.2 Submission of bids and/or detailed estimates that are identical to each other 

or to the Approved Agency Estimate (AAE) which manifestly indicate rigging or 

collusion. 

a.3. PARTICIPATING IN PBAC ACTIVITIES AS A CONSTRUCTORS ASSO- 

CIATION (CA) REPRESENTATIVE WHERE HE/SHE HAS ANY PECUNIARY 

INTEREST. 

a.4 Other acts of constructors which directly or indirectly tend to defeat the purpose 

of public bidding. 

b. Suspension for six (6) months for first offense, disqualification for one (1) year for second 

offense, disqualification for two (2) years for third offense, and perpetual disqualification for 

succeeding offense; 

b.1 Non-submission OR LATE SUBMISSION of bids by prequalified constructors 

WITHOUT JUSTIFIABLE REASON AND WRITTEN NOTICE OF WITH- 

DRAWAL OF INTENT TO PARTICIPATE IN THE BIDDING FIVE (5) WORK- 

ING DAYS BEFORE THE DEADLINE OF SUBMISSION OF BIDS. 

c. Forfeiture of bid security for first offense, FORFEITURE OF BID SECURITY and suspension 

of one (1) year for second offense, and FORFEITURE OF BID SECURITY AND perpetual 

disqualification for succeeding offense on any of the following: 

c.1 Unjustified failure or unreasonable refusal of the winning bidder to accept or 

signify conforme to the Notice of Award (NOA). 

c.2 Non-submission by the proposed awardee within the AGENCY prescribed 

time of the performance security and other requirements necessary for contract 

preparation, i.e., Contractorís All Risk (CAR) Insurance, Affidavit of No Pending 

Case for Non-Payment of Tax, Construction Schedule, Cash Flow and other requirements 

necessary for the formalization of the contract. 

c.3 Unjustified refusal or failure of the proposed awardee to enter or sign the 

prepared contract within the agency prescribed time. 

d. SUSPENSION FOR FIVE (5) YEARS FOR FIRST OFFENSE AND PERPETUAL DIS- 

QUALIFICATION FOR SUCCEEDING OFFENSE: 

d.1 RECEIVING A FEE, GIFT, OR OTHER VALUABLE THING IN RELATION 

TO, OR IN CONNECTION WITH, PBAC ACTIVITIES FROM ANY PERSON/ 

ENTITY IN THE HOPE OR EXPECTATION OF RECEIVING FAVOR OR OTHER 

TREATMENT THAN THAT ACCORDED OTHER PERSONS; 

d.2 COMMITTING ACTS PUNISHABLE UNDER THE ANTI-GRAFT LAWS. 

5.2 Contract Implementation STAGE 

The following administrative sanctions shall be imposed for offenses/violations committed 

by constructors during contract implementation:


a. Forfeiture of performance security and disqualification for six (6) months for first offense, 

FORFEITURE OF PERFORMANCE SECURITY and disqualification for one (1) year for 

second offense, FORFEITURE OF PERFORMANCE SECURITY and disqualification for 

two (2) years for third offense, and FORFEITURE OF PERFORMANCE SECURITY and 

perpetual disqualification for succeeding offense on any of the following: 

a.1 Failure of the constructor due solely to his fault or negligence to mobilize and 

start work within the agency specified period in the Notice to Proceed (NTP). 

a.2 Failure by the constructor to fully and faithfully comply with its contractual 

obligations without valid cause or failure by the constructor to comply with any 

lawful instruction of the contracting officer or its representative/s pursuant to the 

implementation of the contract in any or combination of the following: 

i. Employment of competent engineers and/or work supervisors. 

ii. Provision of warning signs and barricades in accordance with approved 

plans and specifications and contract provisions. 

iii. Stockpiling in proper places of all materials including broken pavement and 

excavated debris in accordance with approved plans and specifications 

and contract provisions. 

iv. Deployment of committed equipment and manpower. 

v. Failure to renew the effectivity dates of the performance security after its 

expiration during the course of the execution of the works. 

b. Forfeiture of performance security and disqualification for one (1) year for first offense, 

FORFEITURE OF PERFORMANCE SECURITY and disqualification for two (2) years for 

second offense, and FORFEITURE OF PERFORMANCE SECURITY AND perpetual disqualification 

for succeeding offense on any of the following: 

b.1 Assignment and subcontracting of the construction works or any part without 

written approval by the agency Head concerned. 

b.2 Poor performance by the constructor or unsatisfactory quality of work or 

progress of work arising from his fault or negligence as reflected in his 

Constructorís Performance Evaluation System (CPES) rating sheet. In the absence 

of the CPES rating sheet, the existing performance monitoring system of 

the agency concerned shall be applied. Any of the following acts by the constructor 

shall be construed to mean as poor performance: 

i. Negative slippage of 15% and above due entirely to the fault or negligence 

of the constructor. 

ii. Quality of materials and workmanship not complying with the approved 

specifications arising from constructorís fault or negligence. 

b.3 FAILURE OF THE CONSTRUCTOR TO COMPLY WITH THE OCCUPA- 

TIONAL SAFETY AND HEALTH STANDARDS, AS AMENDED, PARTICULARLY 

THOSE THAT ARE PROVIDED FOR UNDER THE DOLE DEPARTMENT OR- 

DER NO. 13, SERIES OF 1998 ON GUIDELINES GOVERNING OCCUPA- 

TIONAL SAFETY AND HEALTH IN THE CONSTRUCTION INDUSTRY AND 

SUBSEQUENT RELATED ISSUANCES; PROVIDED, HOWEVER, THAT IN

1762 


ORDER TO GIVE ENOUGH TIME FOR CONSTRUCTORS TO COMPLY WITH 

THE PROVISIONS OF DOLE D.O. NO. 13, SERIES OF 1998, THIS SHALL 

NOT BE A GROUND FOR BLACKLISTING UNTIL AFTER A GRACE PERIOD 

TO BE DETERMINED BY CIAP OR UNTIL SUCH TIME THAT THE TOTAL 

COST OF IMPLEMENTING A CONSTRUCTION SAFETY AND HEALTH PRO- 

GRAM IS MADE AN INTEGRAL PART OF A PROJECTíS CONSTRUCTION 

COST AS SEPARATE PAY ITEM, AS REFLECTED IN THE PROJECTíS TEN- 

DER DOCUMENTS AND IN THE PROJECTíS CONSTRUCTION CONTRACT 

DOCUMENTS, WHICHEVER COMES FIRST. 

b.4 WILLFUL NEGLIGENCE TO CORRECT OR RECTIFY IMMINENT DAN- 

GER CONDITIONS IN CLEAR VIOLATION OF THE STOPPAGE OF WORK 

ORDER BY THE SECRETARY OF THE DEPARTMENT OF LABOR AND EM- 

PLOYMENT (DOLE) OR HIS/HER AUTHORIZED REPRESENTATIVE. 

b.5 FAILURE TO REGISTER AS CONTRACTOR WITH THE DOLE REGIONAL 

OFFICES OR WITH THE BUREAU OF LOCAL EMPLOYMENT PURSUANT 

TO DOLE ORDER NO. 10, S. 1997 AND SUBSEQUENT RELATED ISSU- 

ANCES. 

c. Forfeiture of performance security and disqualification for two (2) years for first offense, 

and FORFEITURE OF PERFORMANCE SECURITY AND perpetual disqualification for succeeding 

offense on: 

c.1 Willful or deliberate abandonment of the project by the constructor without 

lawful and/or just excuse. 

In any of the abovementioned offenses/violations, the agency concerned may 

undertake by administration the whole or a portion of the unfinished work, or 

award the same to another qualified constructor pursuant to existing laws. 

6. DUE PROCESS OR PROCEDURE FOR BLACKLISTING CONSTRUCTORS 

6.1 Verification 

a. Verification of A REPORT OR FINDINGS OF ACTS OR CAUSES WHICH 

MAY CONSTITUTE AN offense during prequalification, bidding and award shall 

be made by the Prequalification, Bid and Award Committee (PBAC) within fifteen 

(15) calendar days from the discovery of the ACTS OR CAUSES WHICH MAY 

CONSTITUTE AN OFFENSE OR FROM THE SUBMISSION OF A REPORT 

TO THE PBAC ON THE EXISTENCE OF GROUNDS FOR BLACKLISTING. 

THE PBAC SHALL SUBMIT ALL VERIFIED REPORTS ACCOMPANIED BY 

SUPPORTING AFFIDAVITS OR MATERIAL EVIDENCES TO THE LEGAL 

OFFICE OF THE AGENCY CONCERNED. 

b. VERIFICATION OF A REPORT OR FINDING OF ACTS OR CAUSES WHICH 

MAY CONSTITUTE AN OFFENSE ARISING FROM CONTRACT IMPLEMEN- 

TATION SHALL BE MADE BY THE PROJECT MANAGEMENT OFFICE (PMO) 

OR ITS EQUIVALENT. THE PMO OR ITS EQUIVALENT SHALL SUBMIT ALL


REPORTS ACCOMPANIED BY SUPPORTING AFFIDAVITS OR MATERIAL 

EVIDENCES TO THE LEGAL OFFICE OF THE AGENCY CONCERNED. 

6.2 Notification and Hearings 

The Legal Office of the agency concerned shall notify the constructor concerned requiring 

him to answer the charges within fifteen (15) calendar days from receipt of notice. 

Based on the merits of the case, a Hearing Officer shall be assigned who shall schedule 

hearings with notices to both parties and invite a representative from a constructor association, 

preferably one that is accredited by the CIAP, as an observer for each hearing. THE 

HEARING OFFICER SHALL MAKE HIS RECOMMENDATION NOT LATER THAN THIRTY 

(30) CALENDAR DAYS FROM THE DATE OF THE LAST HEARING OR LAST PLEAD- 

ING SUBMITTED. 

6.3 Decision 

The agency shall deliberate and decide based on the merits of the case presented. 

Based on the offense committed by the constructor, the corresponding sanction shall be 

imposed. The date of effectivity of serving the given penalty, i.e., date of start and completion, 

FACTS, FINDINGS, EVIDENCE PRESENTED, REASONS FOR DECISION AND 

BASIS FOR IMPOSING THE PENALTY, shall be stated clearly in the decision. 

In case a constructor commits more than one offense or a combination of offenses for 

the same period in a particular agency, each violation shall be meted the corresponding 

penalty. 

6.4 Notification on Decision 

The agency concerned shall notify the government-level blacklisted constructor and 

CIAP for information purposes within seven (7) calendar days after the decision IS made. 

6.5 MOTION FOR RECONSIDERATION 

A MOTION FOR RECONSIDERATION MAY BE FILED BY THE GOVERNMENT- 

LEVEL BLACKLISTED CONSTRUCTOR WITHIN FIFTEEN (15) CALENDAR DAYS FROM 

RECEIPT OF THE NOTICE OF DECISION ON THE CASE AND SHALL BE FOR EITHER 

OR BOTH OF THE FOLLOWING CAUSES, PROVIDED THAT ONLY ONE (1) MOTION 

FOR RECONSIDERATION SHALL BE FILED WITH THE AGENCY: 

a. THE DECISION IS NOT IN CONFORMITY WITH THE EVIDENCE AND/OR 

FACTS PRESENTED; AND 

b. NEWLY DISCOVERED EVIDENCE OR FACTS WHICH COULD NOT BE 

DISCOVERED AND PRODUCED AT THE INVESTIGATION AND WHICH 

WHEN PRESENTED WOULD PROBABLY ALTER THE RESULT OF THE IN- 

VESTIGATION. 

THE AGENCY SHALL DECIDE ON THE MOTION FOR RECONSIDERATION WITHIN 

FIFTEEN (15) CALENDAR DAYS FROM RECEIPT THEREOF. THE CIAP SHALL BE

1764 


FURNISHED WITH A COPY OF THE MOTION FOR RECONSIDERATION AND THE 

RESOLUTION OF DENIAL/REVERSAL FOR INFORMATION PURPOSES. 

6.6 APPEAL FROM DECISION 

AN APPEAL MAY BE FILED BY THE BLACKLISTED CONSTRUCTOR WITH THE 

APPELLATE AUTHORITY WITHIN FIFTEEN (15) CALENDAR DAYS FROM RECEIPT 

OF THE DECISION. THE APPELLATE AUTHORITY SHALL DECIDE ON THE APPEAL 

WITHIN FIFTEEN (15) CALENDAR DAYS FROM RECEIPT THEREOF. THE CIAP AND 

THE AGENCY CONCERNED SHALL BE FURNISHED WITH A COPY OF THE APPEAL 

AND DECISION FOR INFORMATION PURPOSES. 

6.7 STATUS OF BLACKLISTED CONSTRUCTOR WITH PENDING MOTION FOR RE- 

CONSIDERATION/APPEAL. 

BEFORE ANY DECISION ON THE MOTION FOR RECONSIDERATION/APPEAL 

IS MADE, THE PROSPECTIVE GOVERNMENT-LEVEL BLACKLISTED CONSTRUCTOR 

MAY PARTICIPATE IN THE PREQUALIFICATION AND BIDDING OF ANY GOVERN- 

MENT PROJECT. BUT IF THE DECISION ON THE MOTION FOR RECONSIDERATION/ 

APPEAL HAS BEEN DENIED AND WAS ISSUED PRIOR TO THE DATE OF THE NO- 

TICE OF AWARD (NOA), THE GOVERNMENT-LEVEL BLACKLISTED CONSTRUCTOR 

SHALL NOT BE ELIGIBLE FOR AWARD AND SUCH PROJECT SHALL BE AWARDED 

TO ANOTHER CONSTRUCTOR PURSUANT TO EXISTING LAWS. 

IF THE DECISION ON THE MOTION FOR RECONSIDERATION/APPEAL HAS BEEN 

ISSUED AFTER THE AWARD, THE AWARDED PROJECT SHALL NOT BE AFFECTED 

BY THE DECISION TO BLACKLIST THE SAID CONSTRUCTOR AS LONG AS THE 

OFFENSE/S COMMITTED IS NOT CONNECTED WITH THE AWARDED PROJECT. 

6.8 Effectivity of Sanctions 

THE DECISION OF THE AGENCY SHALL BE IMMEDIATELY EXECUTORY AF- 

TER THE LAPSE OF FIFTEEN CALENDAR DAYS FROM THE RECEIPT OF THE NO- 

TICE OF THE DECISION. IF A MOTION FOR RECONSIDERATION/APPEAL IS FILED, 

THE CONFIRMED DECISION OR, IN CASE OF REVERSAL OR MODIFICATION, THE 

RESOLUTION SHALL TAKE EFFECT AFTER THE RECEIPT OF THE NOTICE OF THE 

AGENCYíS RESOLUTION ON THE MOTION FOR RECONSIDERATION APPEAL. 

THE CIAP SHALL BE FURNISHED WITH A COPY OF THE AGENCYíS/APPEL- 

LATE AUTHORITYíS DECISION AND RESOLUTION ON THE MOTION FOR RECON- 

SIDERATION/APPEAL FOR REFERENCE/GUIDANCE IN ITS PUBLICATION OF THE 

CIAP CONSOLIDATED LIST OF GOVERNMENT-LEVEL BLACKLISTED CONSTRUC- 

TORS. 

7. DELISTING 

7.1 Blacklisting - A BLACKLISTED CONSTRUCTOR SHALL BE automaticALLY DELISTED 

after the penalty PERIOD HAS LAPSED UNLESS THE BLACKLISTING IS WITH CONDI- 

TION AND THE CONDITION HAS NOT BEEN SATISFIED OR THE AGENCY REQUESTS 

CIAP TO MAINTAIN THE BLACKLISTED CONSTRUCTOR IN THE CONSOLIDATED 

REPORT DUE TO JUSTIFIABLE REASONS.


7.2 Blacklisting with Conditions - at the end of the period of blacklisting, a request shall be 

made by the government-level blacklisted constructor to the agency concerned to issue a 

Delisting Order. Such Delisting Order shall be issued only when all liabilities/obligations 

have been settled by said constructor. 

7.3 Perpetual Disqualification - no corrective action for delisting. 

8. METHODOLOGY FOR INFORMATION SHARING/NETWORKING 

8.1 The agency concerned shall submit to CIAP within seven (7) calendar days after the 

blacklisting/delisting decisions are made by the agency any of the following documents: 

a. Blacklisting Order duly signed by the agency containing, among others, Department/Office 

Order or Board Resolution number, name and address of the 

constructor, license number, Authorized Managing Officer (AMO), name of project/ 

contract and location/amount, specific ground(s)/offense(s) committed as enumerated 

in Sections 5.1 and 5.2 hereof, sanction imposed and its date of start 

and completion, date of approval of blacklisting, and other conditions which can 

extend effectivity of sanctions in Sections 5.1 and 5.2 hereof. 

b. Delisting Order duly signed by the agency containing, among others, Department/Office 

Order or Board Resolution number, name and address of constructor, 

name of project/contract and location, specific sanction being lifted and the 

number of previously issued blacklisting Department/Office Order or Board Resolution, 

effectivity date of delisting, and date of delisting approval. 

8.2 Should an agency decide to REFER the case of its government-level blacklisted constructor 

to PCAB for proper action, such agency should submit to PCAB A copY of THE 

DECISION accompanied with supporting DOCUMENTS. 

8.3 The CIAP shall prepare every quarter the CIAP-Consolidated Government-Level Blacklisted 

Constructors based on the submitted Blacklisting Order as provided for in Section 8.1a 

hereof and disseminate the same to tendering agencies as stated in Section 8 hereof and 

the Commission on Audit (COA), indicate in such quarterly report the number of times a 

constructor has been blacklisted by type of offense/violation and by agency, delist from such 

report those whose sanctions are lifted automatically after serving the given penalty as provided 

for in Section 7.1 hereof and those whose sanctions are lifted through the issuance of 

Delisting Order as provided for in Section 7.2 hereof and upon receipt thereof by the CIAP, 

and release upon request by any agency updates on blacklisting. To be integrated in the 

aforementioned report is CIAP-Consolidated List of Constructors with Revoked/Suspended 

PCAB Licenses. 

9. APPLICABILITY 

These guidelines shall apply to all contracts for infrastructure projects of all national 

government agencies and instrumentalities, including government-owned and controlled corporations 

(GOCCs). 

10. EFFECTIVITY

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These guidelines shall be approved by the CONSTRUCTION INDUSTRY AUTHOR- 

ITY OF THE PHILIPPINES (CIAP) BOARD and become effective fifteen (15) days after the 

filing of the same with the Office of the National Administrative Register pursuant to the 

Administrative Code of 1987. 

UNANIMOUSLY APPROVED. 


(SGD.) MANUEL A. ROXAS, II 

Chairman 

(Represented by Undersecretary Ernesto M. OrdoÒez) 

(SGD.) GREGORIO R. VIGILAR (SGD.) VICENTE C. RIVERA, JR. 

Member Member 

(Represented by DPWH PBAC Head, (Represented by DOTC Director, 

Antonio v. Molano) Samuel C. Custodio) 

(SGD.) BIENVENIDO E. LAGUESMA (SGD.) DAVID M. CONSUNJI 

Member Member 

(Represented by DOLE Director, (Represented by POCB Board Member, 

Danilo S. Lorredo) Rogelio S. Lombos) 

(SGD.) GERONIMO V. MANAHAN (SGD.) LORETO C. AQUINO 

Member Member 

(SGD.) ISIDRO A. CONSUNJI (SGD.) ROGELIO M. MURGA 

Member Member 

(Represented by PCA Exec. Director, 

Manolito P. Madrasto) 

Note: THE REVISIONS CHANGES TO THE OLD GUIDELINES ARE INDICATED BY CAPITAL- 

IZED AND HIGHLIGHTED WORDS, PHRASES, SENTENCES AND PARAGRAPHS. 

COOPERATIVE DEVELOPMENT AUTHORITY 


Revised Rules of Procedure of the Cooperative Development 

Authority in the Exercise of its Quasi-Judicial Functions 

Pursuant to the provisions of Section 3 of Republic Act No. 6939 and the powers 

vested in it by existing laws, the Cooperative Development Authority hereby promulgates 

the following rules governing the pleading, practice and procedure before it or any its officers: 

Rule 1 

Title and Construction


SECTION 1. Title of the Rules - These Rules shall be known and cited as the Rules of 

Procedure of the CDA in the exercise of its quasi-judicial functions. 

SECTION 2. Applicability of the Rules - These Rules shall be applicable to all petitions 

and/or complaints brought before the Authority. 

SECTION 3. Construction - These rules shall be liberally construed in order to promote 

the growth and viability of cooperatives, preserve harmony and instill the cooperative way of 

life within and among cooperatives and to achieve a just and expeditious resolution of every 

action brought before the Authority. 

SECTION 4. Definition of Terms - The following words or terms shall mean: 

a. Authority - refers to the Cooperative Development Authority and its Extension Offices. 

b. Code - shall refer to Republic Act No. 6938, otherwise known as the Cooperative Code of 

the Philippines. 

c. Cooperative Laws - shall refer to the Code, Republic Act No. 6939, the Rules and Regulation 

Implementing the Cooperative Code and other issuances of the Authority. 

d. Cooperatives - shall refer to the duly registered primary, secondary and tertiary cooperatives. 

e. Hearing Officers - The Legal Officers and other qualified employees of the Authority as 

are authorized to conduct hearings and investigations of cases and/or complaints brought 

before the Authority. 

Rule 2 

Powers and Jurisdiction of the Authority 

SECTION 1. Express Powers - The Authority may exercise such powers as are provided 

under Republic Act No. 6939 and such other powers as expressly stated in the Code. 

SECTION 2. Inherent Powers - When performing its statutory functions, the Authority 

and its Hearing Officers shall have the inherent power to: 

a. Preserve and enforce order during the hearing of a case; 

b. Enforce order in all proceedings brought before it or any of its offices or hearing officers 

under its Authority; 

c. Compel compliance with its orders and processes; 

d. Compel the attendance of persons to testify in any petition or complaint pending before it 

and compel the production of documents relevant to such cases; and 

e. Administer or cause to be administered oaths in a petition or complaint pending before it.

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SECTION 3. Exclusive Jurisdiction - The Authority shall have the exclusive jurisdiction 

over the following petitions and cases brought before it: 

a. Petitions for the approval of amendments to the articles of cooperation and/or by-laws of 

a cooperative; 

b. Petitions for the division, merger or consolidation of cooperatives; 

c. Petitions concerning the exercise of the rights of the members of a cooperative including 

the conduct of a financial audit; 

d. Petitions to hold a regular or special general assembly meeting and/or elections of directors, 

officers of committee members of a cooperative; 

e. Petitions for the removal of a director, officer or committee member of a cooperative; 

f. Petitions for the voluntary dissolution of a cooperative; 

g. Petitions for the suspension, revocation or cancellation of a certificate of registration of a 

cooperative for grounds stated in Articles 68 and 69 of the Code; 

h. Petitions for the liquidation of a cooperative; 

i. Petitions to compel the filing of the annual report and audited financial statements of a 

cooperative; and 

j. Disputes concerning the internal affairs of cooperatives, such as but not limited to the 

rights and privileges of its members; the rules and procedures of meetings of the general 

assembly, board of directors and committees; the election and qualifications of officers, 

directors and committee members; the allocation and distribution of surpluses and all other 

matters, subject to Art. 121 of the Code and the applicable provisions of the cooperative bylaws. 

Provided, however, all petitions under subsections (f), (g), and (h) shall be governed 

by the Manual on Dissolution, Liquidation and Cancellation of Cooperatives. 

SECTION 4. Referral to Other Government Agencies - Complaints which call for 

reliefs that can be fully acted/granted by other government agencies or which fall within their 

exclusive jurisdiction shall be referred to the appropriate agency. 

Rule 3 

Disqualification of Administrators, Directors and Hearing Officers 

SECTION 1. Disqualifications of Administrators and Hearing Officers - (a) No Administrator 

or Hearing Officer shall take part in any proceeding wherein he, his spouse or child is 

related to any party, or counsel, if any, within the fourth civil degree of consanguinity or 

affinity, or in which he has publicly expressed prejudgment of the case as may be shown by 

clear and convincing proof.


(b) No Administrator or Hearing Officer shall take part in any proceeding in the case if he 

was formerly a member of the cooperative involved in such case, or its federation or union. 

(c) An Administrator or Hearing Officer may, in the exercise of his own discretion, inhibit 

himself from taking part in any proceeding in the case for just or valid reasons other than 

those mentioned above. 

SECTION 2. Lack of Hearing Officer - IN CASE a Hearing Officer be disqualified from 

the proceedings or inhibits himself from acting on a case, the Authority shall appoint another 

to act as Hearing Officer for the case, upon recommendation of the Director of the Legal and 

Registration Department. 

Rule 4 

Venue 

All complaints and petitions shall be filed before the Regional Office of the Authority 

which has jurisdiction over the cooperative. 

Rule 5 

Parties 

SECTION 1. Who May Be Parties - Any member of a duly registered cooperatives, 

their federations or unions may be a party to a complaint. 

SECTION 2. Parties in Interest - All actions filed with the Authority must be prosecuted 

and defended in the name of the real parties in interest. 

SECTION 3. Designation of Parties - A party requesting relief shall be referred to as 

the Petitioner or Complainant. Any party being complained of or against whom a claim or 

interest is directed shall be referred to as the Respondent. 

Rule 6 

Commencement of Proceedings 

SECTION 1. Commencement of Proceedings by a Party - (a) Any natural person or 

cooperative may initiate a proceeding before the Authority, by filing a verified complaint 

containing his personal circumstances as well as those of the respondent, the jurisdictional 

facts and a concise statement of the ultimate facts constituting the causes of action and the 

relief sought. 

(b) The complaint must likewise show that it has undergone the grievance mechanisms 

outlined in the cooperativeís by-laws or with the federation or union to which the cooperative 

belongs, except when the dispute is between a primary and a secondary or tertiary cooperative. 

SECTION 2. Any complaint filed with the Authority not containing the requirements as 

stated in Section 1 of this Rule shall be dismissed. 

SECTION 3. Commencement of Action by the Authority - In cases where the Authority 

is authorized to initiate proceedings, the Authority shall issue an order for a hearing reciting 

therein the purpose for which the hearing is called for and concise statement of the facts

1770 


giving rise thereto. Copies of such order shall be served upon persons or cooperatives 

having interest in the matter or who may be affected thereby. 

Rule 7 

Pleadings 

SECTION 1. Form of Pleadings - All pleadings filed before the Authority may be handwritten 

or typewritten on bond paper and shall be written in either English or Filipino. 

Every complaint, motion or other pleading must be filed in [at least] two (2) copies with 

the Authority. However, where there are more than one respondent, there shall be filed as 

many additional signed copies of the said pleadings as there are additional respondents. 

SECTION 2. How Filed - The documents referred to in the preceding Section SHALL 

be filed with the Legal Officer of CDA Regional Office or the Legal Division of the CDA 

Central Office, whichever has jurisdiction over the case personally or by registered mail. In 

case of the latter, the date of mailing shall be considered the date of filing, and the envelope 

thereof shall be attached to the records of the case. 

SECTION 3. Verification - The complaint and the answer shall be verified. Such verification 

shall be in the form of an affidavit that the petitioner/complainant or respondent had 

read the pleading and the allegations therein are true and correct of his own knowledge and 

belief. 

SECTION 4. Certification - The complainant/petitioner or principal party shall certify 

under oath in the complaint or other initiatory pleading asserting a claim for relief, or in a 

sworn certification annexed thereto and simultaneously filed therewith: (i) That he has not 

thereto commenced any action or filed any claim involving the same issues in any court, 

tribunal or agency and, to the best of his knowledge, no such other action or claim is pending 

therein; (ii) If there is such other pending action or claim, a complete statement of the present 

status thereof; and (iii) if he should thereafter learn that the same or similar action or claim 

has been filed or is pending, he shall report the fact within five (5) days therefrom to the 

Authority. 

Failure to comply with the foregoing requirements shall not be curable by mere amendment 

of the complaint or other initiatory pleading but shall cause the dismissal of the petition 

without prejudice. The submission of a false certification or non-compliance with any of the 

undertaking therein shall constitute indirect contempt of court, without prejudice to the corresponding 

administrative and criminal actions. If the acts of the party or his counsel clearly 

constitute willfull and deliberate forum shopping, the same shall be ground for summary 

dismissal with prejudice and shall constitute direct contempt, as well as cause for administrative 

sanctions. 

SECTION 5. Docket Fees - A complaint or petition shall be deemed filed only after 

payment of docket fees in accordance with the Revised Schedule of Fees hereto attached. 

SECTION 6. Docket, Assignment of Numbers and Case Name - (a) Upon the filing of 

a complaint, the Legal Office or the Legal Division shall docket the same and assign a 

number. The numbering must be consecutive according to the date it was filed, must bear 

the year, and prefixed as follows:


a. CO - Legal Division, Central Office 

b. DAG - Dagupan Extension Office 

c. TUG - Tuguegarao Extension Office 

d. BAD - Baguio Extension Office 

e. SFR - San Fernando (Pampanga) Extension Office 

f. NCR - Manila Extension Office 

g. CAL - Calamba Extension Office 

h. NAG - Naga Extension Office 

i. ILO - Iloilo Extension Office 

j. CBU - Cebu Extension Office 

k. TAC - Tacloban Extension Office 

l. CDO - Cagayan De Oro Extension Office 

m.PAG - Pagadian Extension Office 

n. DVO - Davao Extension Office 

o. KID - Kidapawan Extension Office 

p. CAR - CARAGA Extension Office 

b. Should the case be on appeal to the Board of Administrators, the letter ìAî shall be 

appended to the docket number of the Central Office. 

c. The petition or complaint shall include the name of the cooperative, and the names 

of the petitioner/complainants and the respondents. 

Rule 8 

Intervention 

SECTION 1. When Proper and Who May be Permitted to Intervene - Any person or 

cooperative allowed to initiate a proceeding may, before the rendition of the resolution, be 

permitted by the Authority, in its discretion, to intervene in such proceeding, if he has a legal 

interest in the matter under litigation, or in the success of either of the parties, or an interest 

against both or when he is so situated as to be adversely affected by such proceeding. 

SECTION 2. Motion for Intervention - A person desiring to intervene shall file motion 

for leave of the Authority with notice upon all the parties to the action. 

SECTION 3. Discretion of the Authority - In acting on a motion for intervention, the 

Authority, in the exercise of its discretion, shall consider whether or not the intervention will 

unduly delay or prejudice the adjudication of the rights of the original parties and whether or 

not the intervenorís rights may be fully protected in a separate action of proceeding. 

Rule 9 

Amended or Supplemental Pleadings 

SECTION 1. When Amendments Allowed as a Matter or Right - A party may amend 

his pleading once as a matter of course at any time before a responsive pleading is served, 

or, if the pleading as one to which no responsive pleading is permitted and the action has not 

been placed on the calendar, he may so amend it at any time after it has been served. 

SECTION 2. Amendments Only by Leave - After the case is set for hearing, substantial 

amendments may be made by only leave of the Authority. Such leave may be refused if

1772 


it appears that the motion was meant to delay the action or that the cause of action is 

substantially altered. Orders of the Authority upon the matters provided in this Section shall 

be made upon motion duly filed and after the adverse party has been notified and afforded 

an opportunity to be heard. 

SECTION 3. Matters of Supplemental Pleadings - Upon motion of a party, the Authority 

may, upon notice and upon such terms as are just, permit him to serve a supplemental 

pleading setting forth transactions, occurrences or events which have happened since the 

date of the pleading sought to be supplemented. 

Rule 10 

Period for Pleading 

SECTION 1. Time to Answer - Unless otherwise provided in these Rules, the answer 

to a petition, complaint, amended complaint or counter-complaint must be filed with the 

Authority within fifteen (15) days from receipt of a copy of the summons. 

SECTION 2. Period to Intervene - When intervention is allowed, the same must be 

filed within five (5) days from receipt of the order allowing the intervention, unless a different 

period has been fixed by the Authority. 

SECTION 3. Reply - Unless otherwise provided, a reply may be filed within five (5) 

days from receipt of a copy of the answer. 

Rule 11 

Motions 

SECTION 1. Motions Defined - Every application for an order not included in a resolution 

of the Authority may be called a motion. 

SECTION 2. Motions in Writing - All motions shall be made in writing, except motions 

for continuance made in the presence of the adverse party, or those made in the course of 

a hearing. 

SECTION 3. Contents of a Motion - A motion shall state the order sought to be obtained 

and the grounds upon which it is based. 

SECTION 4. No Oral Arguments for Motions - No oral argument shall be heard in 

support of motions, unless the Authority deems otherwise. 

SECTION 5. Omnibus Motions - A motion assailing a pleading or a proceeding shall 

include all objections then available, and all objections not so included shall be deemed 

waived. 

Rule 12 

Service and Filing of Pleadings and Other Papers 

SECTION 1. Mode, Completion and Proof of Service - Service of pleadings, motions, 

notices, orders or resolutions and other papers, the completeness thereof, and proof of such 

service shall be made in the manner prescribed by these rules and suppletorily, by the 

Rules of Court.


Rule 13 

Prohibited Pleadings 

SECTION 1. Pleadings Not Allowed - The following pleadings shall not be allowed: 

a. motion to dismiss; 

b. motion for a bill of particulars; 

c. motion for extension of time to file memorandum; 

d. motion for re-opening or re-hearing of case; and 

e. motion to declare a party in default. 

SECTION 2. Motion to Dismiss, If Filed - Should the respondent file a motion to dismiss, 

such shall constitute an answer and the proceeding may continue on the merits. 

Rule 14 

Summons 

SECTION 1. Summons - Upon the filing of the complaint or petition, the corresponding 

summons shall forthwith be issued within five (5) days from date of filing of the complaint. 

SECTION 2. Contents - a) Summons shall be directed to the respondent, signed by 

the Extension Director or the Director of the Legal and Registration Department, as the case 

may be, and shall contain: (1) the names of parties; (2) a direction that the respondent shall 

answer the complaint within the time fixed by these Rules; and (3) a notice that unless the 

respondent so answers, complainant will take judgment by default and may be granted the 

relief applied for. The Hearing Officer shall, motu propio, proceed to render judgment on the 

complaint such relief as his pleading may warrant. 

A copy of the complaint and its annexes, if any, shall be attached to each copy of 

the summons. 

b) In petitions for the division, merger or consolidation of cooperatives, and for the 

suspension, revocation, cancellation or liquidation of cooperatives, notice of the pending 

case may be sent to government agencies and institutions which may be affected by the 

resolution of such issues. 

SECTION 3. Alias Summons - If summons is returned without being served on any or 

all the respondents, or if it has been lost, the Hearing Officer, on demand of the petitioner 

or complainant, may issue alias summons as the case may require, in the same 

form as the original. 

SECTION 4. By Whom Summons May Be Served - The summons may be served by 

the process server of the Authority, or for special reasons by any person specially authorized 

by the Hearing Officer. 

SECTION 5. Return of Summons - When the service has been completed, the process 

server shall return the summons to the Authority together with the proof of service. 

SECTION 6. Personal Service of Summons - The Summons shall be served by 

handing a copy thereof to the respondent in person or if he refuses to receive it, by 

tendering it to him.

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SECTION 7. Substituted Service - If, for justifiable causes, the respondent cannot be 

served personally with the summons as provided in the preceding section, service may be 

effected, (a) by leaving copies of the summons at the respondentís dwelling house or residence 

with some person of suitable age and discretion then residing therein, or (b) by leaving 

the copies at the respondentís principal office or regular place of business with some 

competent person in charge thereof. 

(Editorís Note: No Sections 8 -10, per document submitted/filed). 

SECTION 11. Proof of Service - The proof of service of a summons should be made in 

writing by the server setting forth the manner, the place and the date of service; it shall 

specify any papers which have been served with the process and the name of the person 

who received the same; and shall be sworn to when made by a person other than the server 

of the Authority. 

The respondentís voluntary appearance before the Authority shall be equivalent to 

service for purpose of acquiring jurisdiction over his person, unless he makes an explicit 

reservation thereto. 

Rule 15 

Conciliation and Mediation Conference 

SECTION 1. Conference Proper - (a) Immediately after the issues have been joined in 

controversies that can legally be subject to an amicable settlement, the Authority shall send 

notice to the parties to attend a mediation and conciliation conference in order to determine 

whether any settlement or agreement can be reached by the parties after a thorough determination 

of the issues. The conference shall also consider the simplification of issues, schedule 

of hearing which must be undertaken continuously as scheduled until completed and terminated, 

and such other matters as may aid in the just and speedy disposition of the case. 

(b) Notice shall be given to all the parties concerned at least seven (7) days prior to the 

date scheduled for the conference. Such notice shall contain the date, time and place of the 

conference which shall be convenient for all concerned. 

SECTION 2. Conduct of Conference - (a) The conduct of the conference shall proceed 

with the end-in-view of settling any dispute between the parties. All parties involved or interested 

in the dispute shall be afforded the opportunity to ventilate their views concerning the disputes. 

(b) It is not required that the penalties be represented by legal counsels for the purpose 

of mediation and conciliation. However, they may be at or near the conference area in order 

to provide whatever legal advice their clients may require. 

(c) Notes of the proceedings of the case conference shall be made by the Hearing 

Officer and shall form part of the records of the case. At the request of either or both parties, 

stenographic notes or tape recordings of the meetings may be taken and transcripts be 

made available at cost of the party requesting the same. 

SECTION 3. Settlement or Agreement - (a) Once all the issues have been ventilated 

and disposed of and the parties have reached an agreement, it shall be reduced into writing 

and signed by the parties thereto and/or representatives and the Hearing Officer.


(b) The agreement shall be clear and concise and must contain all the points of the 

partiesí understanding. 

(c) A resolution of the case shall be made by the Hearing Officer in accordance with 

these Rules, based on such agreements, and shall be furnished the parties. 

Rule 16 

Subpoena 

SECTION 1. Subpoena Ad Testificandum or Subpoena Duces Tecum - Subpoena ad 

testificandum or subpoena duces tecum may be issued by the Authority or any of its Hearing 

Officers motu propio, or upon request of the parties in any proceeding. 

SECTION 2. Form and Contents - A subpoena shall be signed by the Extension Director 

or the Director of the Legal and Registration Department concerned. It shall state the title 

of the action and shall be directed to the person whose attendance is required, and in 

the case of a subpoena duces tecum, it shall also contain a reasonable description of 

the books, documents or things demanded which may be prima facie relevant to the petition 

or the complaint. 

Rule 17 

Hearings 

SECTION 1. Notice of Hearing - After the issues have been joined, the case shall be 

set for hearing and the parties, through counsel, if any, shall be served personally or by 

registered mail, giving sufficient time for the notices to be received by the parties not less 

than two (2) days before the date set. Whenever necessary, telegraphic notice may also be 

sent with the formal notice of hearing. 

SECTION 2. Order of Hearing - Unless the Authority, for special reasons, declares 

otherwise, the order of the hearing shall be as follows: 

a. The complainant shall present his evidence; 

b. The complainant-in-intervention, if any, shall present evidence; 

c. The respondent shall then offer evidence in support of his defense, if any; 

d. The parties shall then respectively offer rebutting evidence only, unless the Authority, for 

good reasons, permits them to offer evidence upon their original case. 

e. When the hearing is concluded, unless the parties agree to submit the case without arguments, 

the parties or their counsels may be allowed to argue, subject to the limitation of 

time as the Authority may prescribe. 

f. In lieu of oral arguments, the parties may be allowed to submit their respective memoranda 

within a period of fifteen (15) days from the date of the last hearing. 

Rule 18 

Resolutions

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SECTION 1. Resolutions - All resolutions reached by the Authority shall be in writing 

stating the facts clearly and distinctly and the law upon which it is based. The resolution shall 

also state the agreements reached by the parties during the conciliation and mediation conference, 

if any. Such resolution shall be issued under the seal of the Authority. 

SECTION 2. Minute Resolution - No minute resolution resolving a complaint shall be 

rendered if evidence has been adduced and received. 

SECTION 3. Period to Decide a Complaint - Any matter submitted to the Authority 

shall be decided within thirty (30) days from the date it is submitted for resolution. 

SECTION 4. Service of Resolution - The resolution shall be served upon all parties of 

record and their counsel, if any. However, service shall also be made upon such parties and 

regulatory government agencies that have an interest in the success or failure of any cooperative, 

such as but not limited to the Land Bank of the Philippines, the Development Bank of 

the Philippines, the Central Bank, etc. 

SECTION 5. Finality of Resolution - (a) Any resolution shall become final and executory 

within fifteen (15) days from the receipt of a copy of the resolution and no appeal or 

motion for reconsideration has been filed within the said period. 

(b) A resolution which has become final and executory may be enforced through a 

writ or order of execution issued by the Authority. 

SECTION 6. General Assembly Meeting - The Authority may order the holding of, or 

convene, motu propio a general assembly, whether regular or special, in order to report the 

resolution of a petition or controversy to the members and to undertake procedures embodied 

in the resolution. 

Rule 18A 

Contempt 

SECTION 1. Direct Contempt - A person guilty of misbehavior in the presence of or so 

near the Hearing Officer or Administrator as to obstruct or interrupt the proceedings before 

him, including disrespect towards the Hearing Officer, offensive personalities towards others, 

or refusal to be sworn to or answer as a witness, or to subscribe an affidavit or deposition 

when lawfully required to do so, may be summarily adjudged in contempt by the Hearing 

Officer and punished by a fine of not more than Five Hundred Pesos (PhP500.00) or imprisonment 

not exceeding ten (10) days, or both such fine and imprisonment. 

SECTION 2. Indirect Contempt - Any person who shall fail or refuse to comply with the 

promulgated decision, order or writ of the Hearing Officer without justifiable cause after 

being required to do so, shall be punished for contempt pursuant to the provisions of the 

Rules of Court. 

Rule 19 

Appeals 

SECTION 1. Appeal from Resolution of Extension Officer Director and Director, LRD - 

(a) Any appeal from the resolution as signed by the Extension Officer Director or Director of

October - December 2000 National Administrative Register 1 7 

the Legal and Registration Department may be filed with the Board of Administrators within 

fifteen (15) days from the receipt of a copy of such resolution by filing a notice of appeal and 

appeal brief and payment of the corresponding docket fee with the office issuing such resolution. 

(b) Failure to comply with the above requirements within the reglementary period shall 

be construed as failure to perfect an appeal and shall cause its dismissal. 

(c) Such appeal shall be decided by the Board of Administrators within thirty (30) days 

from its filing, unless otherwise extended for by the Board of Administrators. 

SECTION 2. Appeal from Decision of the Board of Administrators - An appeal from the 

resolution of the Board of Administrators shall be made to the Office of the President within 

fifteen (15) days from the receipt of such resolution by the appealing party by filing a notice 

of appeal and an appeal brief with the Authority. 

SECTION 3. Transmittal of Records - Within fifteen (15) days from the receipt of the 

notice of appeal and the appeal brief and proof of payment of the corresponding fee, the 

Extension Office or the Board of Administrators shall forward the entire records of the proceeding 

or certified photocopies thereof to the Board of Administrators or the Office of the 

President, as the case may be. 

SECTION 4. Resolution Based in Settlement - No appeal from a resolution which is 

based on mutual agreements reached by the parties during the mediation and conciliation 

conference shall be entertained by the Authority. Provided, however, that non-compliance of 

the agreements shall mean the immediate execution of such resolution. 

Rule 20 


SECTION 1. Support Staff - The Hearing Officers may require other employees of the 

Authority to assist them during their sessions or hearings or in the performance of their 

duties. 

SECTION 2. Stenographers - (a) Stenographers may also be present at every session 

or hearing to take the stenographic notes of the proceedings. 

(b) Any party or their counsel may request for a copy of the transcript of stenographic 

notes of the hearing. The costs for such transcript shall be borne by the party requesting the 

transcript. 

(c) The fees for such transcript shall be at Six Pesos (P6.00) per page of not less than 

two hundred and fifty (250) words before any appeal is filed, and Three Pesos and Sixty 

centavos (P3.60) after the appeal is filed. 

Rule 21 

Supplementary Rules 

SECTION 1. Rules of Court - In the absence of any applicable provision in these 

Rules, the pertinent provisions of the Rules of Court of the Philippines shall be applicable by 

analogy or in suppletory character and effect.

1778 


SECTION 2. Evidence - The parties and the Authority shall not strictly bound by the 

technical rules on evidence and may resort to such evidence that a common prudent man 

may require. 

Rule 22 

Final Provisions 

SECTION 1. Repealing Clause - All resolutions, rules and regulations of the Authority 

or parts thereof which are inconsistent with any provision of these Rules are hereby deemed 

repealed or modified accordingly. 

SECTION 2. Separability Clause - If any part of these Rules is declared unconstitutional, 

the remaining part not affected thereby shall remain valid and effective. 

SECTION 3. Effectivity - These Rules of Procedure shall take effect upon the approval 

of the Board of Administrators. 



(SGD.) JOSE C. MEDINA, JR. 

Chairman 

óo0oó 

Revised Procedures for Mediation and Conciliation Cases in the CDA 

Pursuant to the provisions of Section 8, Republic Act No. 6938, authorizing the Cooperative 

Development Authority to mediate and conciliate disputes within a cooperative or 

between cooperatives, the Authority hereby promulgates the following procedures for the 

request/petition for mediation and conciliation, under the said section, to wit: 

Sec. 8. Mediation and Conciliation - Upon request of either or both parties, the 

Authority shall mediate and conciliate disputes within a cooperative or between 

cooperatives; Provided, That if no mediation or conciliation succeeds within three 

(3) months from request thereof, a certificate of non-resolution shall be issued by 

the commission prior to the filing of the appropriate action before the proper courts.î 

SECTION 1. Title - The following shall be known as the Procedures for Mediation and 

Conciliation Cases Before the Cooperative Development Authority. 

SECTION 2. Definition of Terms - As used in these procedures, the term: 

a. Conciliation shall refer to a process whereby a conciliator designated by the Authority 

calls together the parties involved in a dispute, encourages them to discuss their differences, 

and assists them in developing their own proposed solutions to the disputes. 

b. Mediation shall refer to a process whereby a conciliator designated by the Authority as 

mediator takes a more active part in assisting the parties reach an amicable solution to the


problem/s and helps the conflicting parties develop or come out with an acceptable solution 

to their problem. 

The mediator may submit his own proposal/s for the settlement of the disputes. 

c. Mediator/Conciliator shall refer to an employee of the Authority designated to act as such 

in relation to such requests for mediation and conciliation. As far as practicable, the Legal 

Officer assigned to each Extension Office shall act as mediator/conciliator. The Extension 

Director shall have the authority to appoint other CDA Regional employees to act as mediator/conciliator 

in the absence of such Legal Officer. 

SECTION 3. Complaint - A letter/request/complaint for mediation/conciliation may be 

filed with the nearest Extension Office having jurisdiction over the cooperative. It may be in 

the form provided herein as Annex ìAî. It shall contain the following: 

a. The name/s and address/es of the complainant/s; 

b. The name/s and address/es of the persons being complained of; 

c. The issues and subject matter of the controversy; 

d. A certification that the complaint has undergone the grievance mechanisms outlined in 

the cooperativeís by-laws, except when the dispute to be mediated or conciliated is 

between a primary cooperative and a federation or union; and 

e. The definite prayer of the complainant for the resolution of the complaint. 

SECTION 4. Grounds for Complaint for Mediation and/or Conciliation - a) Matters involving 

the internal affairs of the cooperative, such as but not limited to the rights and privileges 

of members, the rules and procedures for meetings of the General Assembly, Board 

of Directors, or the different cooperative committees, the rules and procedures for the election 

and qualifications for officers, directors or committee members; the allocation and distribution 

of surpluses and reserves and all other matters involving the internal affairs of the 

cooperative that the Authority may deem vital to the operations of the cooperative. 

b) For disputes between cooperatives, such matters may involve the area of operations of 

the cooperatives and other such matters involving disputes between cooperatives. 

SECTION 5. Matters Not Cognizable Under These Procedures - The following are not 

cognizable for mediation and conciliation conferences and hence cannot be the subject of 

any amicable settlement: 

a. Violation of Article 48, R.A. No. 6938; 

b. Violation of Article 49, R.A. No. 6938; 

c. Violation of Article 50, R.A. No. 6938; 

d. Violation of Article 84, R.A. No. 6938; 

e. Matters involving the grant and exercise of a franchise, a license or certificate of public 

convenience or necessity as stated in Article 98, paragraph (2) of R.A. 6938; 

f. Violation of Article 114, R.A. No. 6938; 

g. Non-Compliance with other laws as stated in Article 119, R.A. 6938; 

h. Violation of Article 124, R.A. 6938; 

i. Violation of Section 3 (o), R.A. 6938; and 

j. Criminal cases cognizable by the regular and/or special courts

1780 


SECTION 6. Comments - Upon receipt of such complaint, an order shall be issued BY 

the Extension Office requiring the persons being complained of to file their comments/answers 

thereto within fifteen (15) days from the receipt of the order. 

SECTION 7. Prohibited Motions - The following motions shall not be allowed under 

these mediation/conciliation procedures. 

a. Motion to Dismiss; 

b. Motion for a Bill of Particulars; 

c. Motion for Extension of Time to File Pleadings, Affidavits or any other paper; 

d. Motion to declare Petitioner/Respondent in Default; and 

e. Motion for Intervention. 

SECTION 8. Conference - Upon receipt of the comments from the person being complained 

of, the Extension Office shall issue a notice of conference to all parties concerned 

stating the date, time and venue of the conference. 

SECTION 9. General Preparations - (a) The mediator/conciliator shall have the following 

documents at his disposal during the said conference: 

a. A copy of the 1987 Constitution; 

b. A copy of the R.A. No. 6938, R.A. 6939, and the Implementing Rules; 

c. A copy of these Procedures and other pertinent issuances of the Authority; 

d. A copy of the cooperativeís articles of cooperation and by-laws; 

e. A copy of the Complaint and the Comments thereto; and 

f. Other documents that may be deemed necessary for the conference. 

(b) As far as practicable, the mediator/conciliator shall be dressed in semi-formal office 

attire if the conference shall be held within the Extension Office. If the conference is held in 

the field, he may opt to wear casual attire. 

(c) The room where the conference is to be held must be comfortable to all so that its 

atmosphere shall be conducive to the settlement of disputes. 

SECTION 10. Purpose of Conference - At the start of the conference, it shall be made 

clear that the purpose of the conference is to see whether any settlement or agreement may 

be reached between the parties after a thorough discussion of the issues. The conference 

shall also define the issues clearly before any discussion. 

SECTION 11. Conduct of Conference - (a) It is not required that the parties are 

represented by legal counsels for the purpose of mediation and conciliation. However, 

they may be at or near the conference in order to provide whatever legal advice their 

clients may require. 

(b) A mediation/conciliation conference is not judicial proceeding per se. Hence, the technical 

rules and procedures shall not be applicable in such cases. 

(c) The conduct of the conference shall be non-adversarial in nature and shall proceed with 

the end in view of settling any internal dispute within the cooperative.


(d) All parties involved or interested in the dispute shall be afforded the opportunity to 

ventilate their views concerning the dispute. 

SECTION 12. Notes - Notes of the proceedings of the conference shall be made by 

mediator/conciliator and shall form part of the records of the case. 

SECTION 13. Recess and Suspension - The conference may be recessed from 

time to time in order for the parties to consult with one another. It may also be suspended 

from day to day until the positions of both parties on all issues are properly 

ventilated and exhausted. 

SECTION 14. Motion for Postponement - No motion for postponement of a scheduled 

conference shall be entertained by the Authority. 

SECTION 15. Settlement or Agreement - (a) Once all the issues have been ventilated 

and disposed of and parties have reached an agreement, it shall be reduced into writing and 

attested by the mediator/conciliator. 

(b) The agreement shall be clear and concise and must contain all points of the partiesí 

understanding. Extra care must be taken in drafting the Agreement in order to minimize 

doubtful or vague interpretations that might result to further disagreement or worsening of 

the problem. 

(c) Copies of the Agreement shall be furnished to the parties at the soonest possible time for 

their own records. 

SECTION 16. Responsibility of Mediator/Conciliator - The conclusion of an agreement 

does not per se terminate the responsibility of mediator/conciliator over the case. He must 

monitor the implementation and compliance therewith to ensure that the parties have indeed 

normalized their relationship. 

SECTION 17. Certificate of Non-Resolution - (a) In the event that after the holding of 

the conferences and the issues have not been resolved to the full satisfaction of all the 

parties concerned, a certificate of non-resolution shall be issued to both parties, stating 

the reasons for non-resolution. Such certificate may be the basis for the filing of any 

action in the courts. 

(b) If no mediation or conciliation conference succeeds within three (3) months from the 

filing of the petition or letter/request, a certificate of non-resolution shall be issued by the 

Authority prior to the filing of appropriate action before the proper courts. 

(c) If no conference succeeds due to the non-attendance of either or both parties within the 

three month period, a certificate of non-resolution may be issued stating the non-attendance 

of the parties and other pertinent information. 

SECTION 18. Repealing Clause - Any rules, regulations, issuances and the likes 

which are contrary or inconsistent with any of the provisions of these procedures are 

hereby repealed. 

SECTION 19. Effectivity - These procedures shall take effect upon their approval by 

the Board of Administrators of the Authority.

1782 



(SGD.) JOSE C.MEDINA, JR. 

Chairman 

DEPARTMENT OF AGRICULTURE 


Memorandum Order No. 17, s. 2000 

Lifting the Temporary Ban on the Importation of FMD Susceptible 

Animals, Their Meat, Meat Products and By-Products Originating from Japan 

The Office International des Epizooties (OIE) recognizes the Foot and Mouth Disease 

(FMD) free status of Japan. Based on the decision of the FMD Commission dated 26 September 

2000, Japan has been reinserted on the list of FMD free countries in accordance 

with Resolution No. XVII of the 65 th General Session of the OIE International Committee. 

With the declaration of the OIE, the temporary ban on the importation of FMD susceptible 

animals, their meat, meat products and by-products originating from Japan is hereby 

lifted. 




(SGD.) DOMINGO F. PANGANIBAN 

OIC, Office of the Secretary 


(SGD.) TEODORO A. ABILAY, PH.D. 


óo0oó 

Administrative Order No. 42, s. 2000 

Accreditation of Three (3) Meat Processing Plants and Two (2) 

Poultry Processing Plants from the Peoples Republic of China (PROC) 

WHEREAS, the Philippine Department of Agriculture Mission in the Peoples Republic 

of China (PROC) after a thorough investigation and evaluation of the disease situation, 

quarantine procedures meat inspection system, manufacturing practices and procedures in


the country found favorable conditions that merit allowing the importation of the herein described 

products. 

NOW, THEREFORE, I, EDGARDO J. ANGARA, Secretary of the Department of Agriculture, 

do hereby issue this accreditation of meat processing and poultry dressing plants, 

and guidelines governing the importation of meat processed and poultry products from the 

Peoples Republic of China (PROC), to wit: 

That, Meat Processing Plants, described below, are accredited to export cooked/sterilized, 

processed meat, and traditional Chinese meat products: 

1. HENAN LUOHE SHUANGHUI INDUSTRY GROUP CO., LTD. 

Louhe City, Henan Province 

2. DACHANG HUA AN MEAT CO., LTD. 

Heibei Province 

3. ZHANHUA HUAN AN MEAT CO., LTD. 

Shandong Province 

That, Poultry Processing Plants, described below, are accredited to export fresh frozen 

chicken and further processed chicken meat: 

1. BEIJING HUADO BROILER PRODUCTION CO. 

Chang Ping, Beijing 

2. SHANDONG FENGXIANG GROUP GENERAL CO. 

Yanggu, Shandong Province 

That, all import transactions of the above mentioned products shall be in accordance 

with the existing rules and regulations of the Department of Agriculture, National Meat Inspection 

Commission and Bureau of Animal Industry (DA-NMIC-BAI). 

That, all imported products shall follow the existing standards/regulations of DA-NMIC- 

BAI on labeling. 

All orders, rules and regulations or parts thereof which are inconsistent with the provisions 

of this Order are hereby repealed or amended accordingly. 

This ORDER shall take effect immediately. 

Adopted: 11 Sept. 2000 


Secretary 


(SGD.) EFREN C. NUESTRO (SGD.) TEODORO A. ABILAY 

Executive Director, NMIC Director, BAI 

óo0oó

1784 




Usage of Seedling Containers or Receptacles 

Made From Indigenous Organic Materials 

Consistent with the policy of the Department to improve and modernize the production 

and dispersal of planting materials to individual farmers or their duly accredited or recognized 

groups or associations, the Department shall, henceforth, encourage the use of containers 

or receptacles for plantable seedlings made from indigenous organic materials like 

coconut husk, coconut coir, coco peat, or other plant fibers. 

Aside from the natural nutrients found in organic containers and their ability to absorb 

moisture and facilitate the growth of the plantís root system, the seedlings contained in these 

organic containers can be planted without removing the organic container, thus, reducing 

stress on the planting material or seedling. 

Using organic container or receptacle for planting materials, avoid the use of seedling 

bags like plastic bags or ìpolybagsî which are non-biodegradable materials that can harm 

the environment. 

Therefore, in order to promote the use of indigenous organic materials as containers or 

receptacles for planting materials and thereby protect our environment, all agencies and 

offices of the Department, including its attached agencies involved in seedling acquisition 

and distribution shall encourage the use of biodegradable organic seedling containers or 

receptacles. 

Accordingly, the Department shall give priority or preference to plantable seedlings 

and other planting materials contained in biodegradable organic receptacles or containers 

being offered to the Department, its offices and attached agencies for sale by accredited 

nurseries. 





Secretary 

óo0oó 


General Guidelines for Certification 

of Fruit and Plantation Seeds 

Pursuant to the provisions of the Implementing Rules and Regulations of R.A. No. 

7308, otherwise known as the Seed Industry Development Act of 1992, Article II, Section


3C, the following general guidelines are to be followed to ensure reasonable standard of 

quality of fruit and plantation seeds for propagation and distribution. 

General Guidelines for Certification of Fruit and Plantation Seeds 

1. Application of the General Guidelines ñ These general certification guidelines as adopted 

by the National Seed Industry Council shall constitute procedures for certification of fruit 

and plantation seeds. The word seed or seeds as used in these certification guidelines 

shall mean to include all propagating materials such as seed, seedling, tuber, slip, suckers, 

crown, scion, corms, rootstock, micropropagated plantlet and certified stock of registered 

veriety as parent tree. 

2. Purpose of Certification ñ To maintain and make available high quality seeds of superior 

crop varieties of known genetic and varietal purity including reasonable standards of quality 

considered for crop propagated/distributed. 

3. Requirement for Certification ñ Varieties for certification must be duly registered and 

released by Philippine Seed Board/National Seed Industry Council. 

4. Sources of Seed/Plant Material Recognized for Certification 

4.1 Parent Tree (PT) ñ are trees that have been surveyed, evaluated, indexed, registered, 

and approved in accordance with the parameters approved by the National Seed 

Industry Council to serve as source of plant propagules. 

4.2 Foundation Grove ñ an area where not more than four (4) registered PT are planted 

in government institutions as sources of planting materials for scion groves or plant 

propagules. 

4.3 Scion Grove ñ an orchard of different registered cultivars from foundation grove 

where accredited nursery operator shall be required to obtain their plant propagules for 

the production of certifiable plant materials. 

4.4 Seed Garden ñ is an orchard which will be the source of seeds for the production of 

sexually propagative plant material. 

4.5 In-Vitro Laboratories ñ place where mass production and multiplication of diseasedfree 

propagules is undertaken. 

5. Institution/Agencies/Firms Qualified to Produced Seed/Plant Material ñ The DA RFUs 

Experiment Stations and Seed Farms, BPI Centers and other government agencies involved 

in the development of fruit and plantation, crops and private group accredited are 

qualified to produce certified seed/plant materials in accordance with the rules and regulations 

promulgated by the NSIC. 

6. Seed/Plant Material Production and Maintenance System 

6.1 Production and Maintenance System

1786 


6.1.1 Seed ñ The seed shall be produced from registered parent trees of seed garden. 

Seed production shall be the responsibility of any institution/individual who is maintaining 

seed gardens/parent trees in accordance with the program guidelines. 

6.1.2 Bud Stick/Scion ñ This shall be taken from a registered parent tree, and foundation/scion 

grove. Maintenance of the registered tree shall be the responsibility of the 

owner whether private or government agency. 

6.1.3 Slip. Runners, Others ñ Slip should be of uniform size and type. Production 

and maintenance shall also be the responsibility of the agency concerned whether private 

or government. 

6.1.4 Micropropagules ñ Production and maintenance shall be the responsibility of 

the in-vitro laboratory. Seed banks, which are sources of x-plant, shall be properly inspected 

by NSQCS for visual symptoms of systemic diseases. 

6.2 Production of Certified Seed/Plant Material 

6.2.1 Plant nursery operators who have registered parent trees are eligible to produce 

certified plant materials in accordance with prescribed procedures for certification. 

6.2.2 The production of seed/plant materials shall be done by the accredited nursery 

operators. 

7. Registration and Accreditation System 

7.1 Registration of Parent Trees 

7.1.1 The parent tree as source of plant propagules must have passed the prescriptive 

selection and evaluation of the concerned Technical Working Group. 

7.1.2 Evaluated parent trees shall be submitted by the Technical Working Group. 

7.1.3 NSQCS shall tag registered parent trees after approval as source of plant 

propagules. 

7.2 Accreditation of Scion Groves, Seed Garden and In-Vitro-Lab 

7.3 Nursery Accreditation 

7.3.1 Nursery operator must have undergone training in nursery establishment and 

management principles on plant propagation and scion grove management. 

7.3.2 Regional Seed Coordinators, Provincial Seed Coordinators and NSQCS staff 

shall evaluate applicants in the region for nursery accreditation in the region. 

7.3.3 The Regional Director shall recommend application for nursery accreditation 

to the Director of Bureau of Plant Industry for approval.


8. Field Inspection 

All plants in the foundation and scion groves, seed gardens, nursery, in-vitro laboratory 

as well as parent tree shall be subjected to periodic ocular inspection, evaluation, 

and indexing to determine the possibility of disease infection and pest infestation. 

Seed Inspectors shall examine carefully all existing plants in the nursery and evaluate 

carefully the factors affecting eligibility for certification. 

A plant propagule automatically becomes ineligible for certification if found infected/or 

showing symptoms of any transmissible disease. 

Planting materials produced commercially are not eligible for certification if the source 

comes from unknown or unregistered parent trees. 

The parent trees at ownerís orchard, foundation or scion groves must be tagged. 

9. Evidence of Eligibility for Certification 

9.1 Documents 

Receipt of purchase of seed indicating the number of propagules. 

Registration number of parent tree. 

9.1.1 Plant Propagules (Asexually and Sexually Propagated) 

Plants propagules (asexually and/or sexually) for commercial planting by nursery operator 

must carry official document/information before they could be finally recognized for 

certification. The official document includes the following information: 

a. crop 

b. variety 

c. code and accession numbers 

d. method of propagation of propagule, e.g. grafted, seed, etc. 

e. source of propagule, e.g. seed garden, tissue culture 

f. age of propagule at time of inspection 

g. name and address of nursery operator 

h. date of last inspection/evaluation of seed inspector 

9.2 Labelling 

9.2.1 Each label must be properly attached to each plant with the following necessary 

information: 

a. crop/variety 

b. PT No. (as source) 

c. Code and accession numbers 

9.3 Materials for Labelling

1788 


9.3.1 Preferred materials should be water and heat resistant. 

10. Minimum Standards 

10.1 Asexually Propagated Planting Materials 

Before any plant is recognized for certification, it must be in conformity with the following 

characteristics: 

10.1.1 Trunk and Branches 

a) Well formed and sturdy 

b) Minimum scion and stock (caliper measured 2.5 cms above the bud union) 

c) Straight trunk with 20 0 of vertical curve, no intermediate curves to exceed 20 0 of the 

curve. 

d) Good branching, uniformly distributed to form a well-balanced tree. 

f) Scars shall be free of rot. 

g) Pruning scar shall be clean cut leaving little or no protrusion from the trunk or branch. 

h) Bud or scion-stock must be completely healed. 

10.1.2 Foliage 

a) Healthy and vigorous leaves of normal size, shape, color, and texture. 

b) Insect/disease and other mechanical damage shall not exceed. 

10.1.3 Root System 

a) Shall be firmly established in the containers. 

b) Shall not be excessively rootbound except plants deliberately grown rootbound to 

produce a dwarf plant. 

c) No large roots growing out of the containers. 

10.2 Sexually Propagated Planting Materials 

10.2.1 Trunk and Branches 

a) Well formed and sturdy 

b) Minimum base caliper of 0.5 cms. (measures 5 cms. above the soil line) 

c) Straight trunk with 20 o of vertical, no intermediate curves to exceed 20 o of curve. 

d) Good growth habit. 

10.2.2 Foliage 

a) Healthy and vigorous leaves of normal size, shape, color, and texture. 

b) Insect/disease and other mechanical damage shall not exceed approximately º of 

individual leaves or affect more than º of the total foliage. 

10.2.3 Root System


a) Shall be firmly established 

b) Shall not be excessively root bound except plants deliberately grown root bound to 

produce a dwarf plant. 

c) No large roots growing out of the container. 

For your guidance and strict compliance. 



Approved: 


Secretary 

óo0oó 

Memorandum Order No. 18, s. 2000 

Lifting the Temporary Ban on the Importation of Pork, Pork Products 

and Pork By-Products from the United Kingdom, Except East Anglia 

The Commission of the European Communities adopted the decision stipulated in the 

provisions of Council Directive 80/217/EEC of 22 January 1980 introducing community measures 

for the control of Classical Swine Fever as last amended by the Accession of Austria, 

Finland and Sweden, and in particular thereof: 

1. Article 9, paragraph 1 protection and surveillance zones were immediately established 

around outbreak sites in Suffolk, Norfolk and Essex. The movement of live pigs and untreated 

pig meat is restricted. 

2. European Union ban has been reduced to the countries of East Anglia wherein Classical 

Swine Fever has been confirmed. 

Based on the above declaration of the European Communities, I hereby approve the 

importation of pork, pork products and pork by-products from the United Kingdom, except 

from East Anglia. 




Secretary 


(SGD.) TEODOR A. ABILAY, PH.D. 


óo0oó

1790 




Amended Rules and Regulations Governing the Importation 

of Meat and Meat Products Into the Philippines 

WHEREAS, disease outbreaks (e.g., Foot and Mouth Disease, Mad Cow Disease, 

Avian Influenza, among others), and chemical and microbial contamination (e.g. dioxin, etc.) 

have occurred in a number of meat exporting countries; 

WHEREAS, there is a need to prevent the entry of disease-carrying, contaminated, 

and/or adulterated meat and/or meat products, which endanger the lives and safety/health 

of the consuming public and which could lead to potentially serious economic consequences 

to the livestock, poultry and related industries; 

WHEREAS, there is a need to consolidate and strengthen existing rules and regulations 

governing meat importation to make them comprehensive, clear/transparent and ensure 

the safety and quality of imported meat and/or meat products; and 

WHEREAS, the World Trade Organization (WTO) Agreement on the Application of 

Sanitary and Phytosanitary Measures (SPS) reaffirms the right of a country to institute appropriate 

measures it deems necessary. 

NOW, THEREFORE, I, EDGARDO J. ANGARA, Secretary of the Department of Agriculture, 

in accordance with Chapter 7 of the Agriculture and Fisheries Modernization Act of 

1999 (Product Standardization and Consumer Safety); Republic Act No. 7394 (Consumer 

Act of the Philippines 1992); and Section 18, Chapter 4, Title IV, Book IV of Executive Order 

No. 292 (Administrative Code of 1987), do hereby issue this Order governing the importation 

of meat and meat products: 

Section I 

Definition of Terms 

As contemplated in this Order, the following terms, words and phrases herein used 

shall be construed to mean as follows: 

A. Codex Alimentarius Commission (CODEX) ñ refers to the international organization 

recognized by the WTO as the responsible body for establishing food standards, codes of 

practice, guidelines and recommendations aimed at protecting consumer health and ensuring 

fair food trade practices. CODEX also refers to food standards and related texts elaborated 

and adopted by the Commission, which is recognized by the WTO as benchmark 

standards in relation to food quality and safety. 

B. Country of Origin ñ refers to the country source of meat and/or meat products being 

exported. When a product undergoes processing in another country which changes its nature, 

the country in which processing is performed shall be considered to be the country of 

origin for purposes of labeling. Conversely, when such product undergoes only minimal 

processing/physical change (i.e., re-packing, re-branding) in another country, the country of 

origin refers to the source of the original product.


C. Claim ñ refers to any representation, which states, suggests or implies that a product 

has particular qualities relating to its origin, nutritional properties, nature, processing, composition 

or any other quality. 

D. Date of Expiration ñ refers to the earliest date at which safety and/or acceptability of a 

product can no longer be assured, based on CODEX or other internationally accepted standards, 

or as determined by the manufacturer or the appropriate government authority. 

E. Date of Minimum Durability (ìbest beforeî) ñ refers to the earliest date (under specified 

conditions) beyond which a product is no longer fully marketable and cannot meet the 

quality required by the importer or government authorities in the importing country as determined 

from CODEX or other internationally accepted standards, or for which claims have 

been made by the manufacturer or the government authority of the exporting country. 

F. Foreign Meat Establishment (FME) ñ refers to an establishment, company or juridical/ 

legal entity engaged in slaughtering/dressing of food animals, meat processing/packing/ 

manufacturing, and/or meat trading/exporting, among others. 

G. Imported Meat Inspection Clearance (IMIC) ñ refers to the clearance issued by the 

National Meat Inspection Commission (NMIC) to an importer/consignee providing the basis 

for the latterís utilization or disposition of the imported meat and/or meat products. 

H. International Veterinary Certificate (IVC) ñ refers to the certificate issued by the Veterinary 

Administration at the country of origin attesting that, among others, the goods conform 

to the veterinary/SPS requirements of the Philippines as prescribed in the Veterinary 

Quarantine Clearance issued by the Department of Agriculture (DA). 

I. Lot Identification ñ refers to the name and identity number of the plant/factory and the 

serial identity number of the specified quantity of commodity produced from this plant/factory 

essentially subjected to the same production conditions. 

J. Meat ñ refers to the fresh, chilled or frozen edible part of carcass, including offal derived 

from but not limited to cattle, buffalo, pig, poultry, goat, sheep, and horse but excluding 

marine animals and prohibited animals under the Convention on International Trade in Endangered 

Species of Wild Fauna and Flora (CITES). 

K. Meat Products ñ refers to meat, which has been subjected to physical change and/or 

treatment by cooking, drying, salting, brining or smoking. 

L. Office Internationale des Epizootics (OIE) ñ refers to the international organization 

recognized by the WTO as the responsible body for establishing the animal veterinary health 

standards, guidelines and recommendations. 

M. Qualified Importer ñ refers to a person, company or juridical/legal entity accredited by 

the DA as meat processor/manufacture/re-packer, meat trader and other meat establishments. 

N. Qualified Exporter ñ refers to a FME recognized by the Veterinary Administration of 

country source as exporting entity and accredited by the DA. Only those ìmeat-tradingî 

firms sourcing from DA accredited FMEs are considered qualified exporters.

1792 


O. Veterinary Administration ñ refers to the National Veterinary Service having authority 

over the whole country for implementing the animal health measures and international veterinary 

certification process (based on OIE Animal Health Code). 

P. Veterinary Quarantine Clearance (VQC)/SPS Import Permit ñ refers to the clearance 

issued by the Bureau of Animal Industry (BAI) to the importer/consignee, setting the Philippine 

SPS/quarantine requirements that imported meat and/or meat products should be subject 

to. 

Q. Veterinary Quarantine Inspection Certificate (VQIC) ñ refers to the certificate issued 

by the DA Veterinary Quarantine Office (DAVQO) to the importer/consignee, which certifies 

that the goods have been subjected to quarantine inspection and clearance. The VQIC 

provides the basis for the NMIC to initiate its inspection and laboratory analysis upon the 

release of the goods by the Bureau of Customs (BOC). 

SECTION II 

SCOPE 

Only meat and meat products referred to in ANNEX ìAî as defined in Section 1 (J) and 

(K) are covered by this Order. 

SECTION III 

APPLICATION FOR VQC/SPS IMPORT PERMIT 

A. A qualified importer as defined in Section I (M) who intends to import meat and/or meat 

products must first secure a VQC/SPS Import Permit from the DA prior to the shipment of 

goods from the country of origin. The importer shall: 

1. submit a duly accomplished Application Form to Import (ANNEX ìBî) together with the 

pro-forma invoice; and 

2. pay the necessary fee to the Bureau of Animal Industry (BAI). 

B. The BAI, in consultation with the NMIC, as needed, shall evaluate the VQC application 

and shall approve/disapprove the same within 7 working days from receipt of complete 

application documents. The approved VQC shall contain the BAI seal and the signature of 

the Secretary or the BAI Director (upon the Secretaryís designation). 

C. The BAI shall issue a VQC per shipment of meat and/or meat products. 

D. The VQCís validity shall be based on the following geographical locations (countries/ 

regions) where the meat and/or meat products shall be sourced: 

Source VQCís Validity 

1. Asia, Australia, and New Zealand 30-60 days 

2. North and South America, Europe and Africa 60-90 days 

E. The importer can request for a 15 to 30-day extension for its VQC from the BAI provided 

the shipment is in transit during the VQCís validity period. The BAI shall issue such extension 

within 24 hours upon:


1. receipt from the importer (applicant) of a formal request with the original VQC previously 

issued; and 

2. payment of the necessary extension fee. 

SECTION IV 

EXPORTING COUNTRY REQUIREMENTS 

A. Only DA accredited FMEs recognized as an exporting entity by the Veterinary Administration 

of the exporting country are allowed to export into the Philippines. 

B. A qualified exporter must first secure a copy of the approved VQC/SPS Import Permit 

from the importer/consignee prior to the shipment of meat and/or meat products into the 

Philippines. 

C. The exporter shall comply with the following packing and labeling requirements: 

1. All packing materials and containers in direct contact with the meat and/or meat products 

must be of food grade quality. 

2. The packaging must meet the minimum relevant labeling requirement as defined in 

Article 77, Chapter IV of the Consumer Act of the Philippines and the Bureau of Food and 

Drugs (BFAD) AO No. 88-B, Series of 1984 (Rules and Regulations Governing the Labeling 

of Pre-Packaged Food Products). The label on each box of the shipment of imported 

meat and/or meat products shall contain the following, as appropriate, which must be 

written in English of Filipino [each character of the text should not be less than 2.5 mm (for 

pre-printed or stamped) and 5 mm (for stenciled or hand painted)]: 

a) Correct and registered trade name or brand name; 

b) Business name and address of the exporter; 

c) Country of origin; 

d) Lot identification; 

e) Product description and list of ingredients; 

f) Net quantity of contents, in terms of weight, measure or numerical count rounded to 

the nearest tenths (expressed in METRIC SYSTEM); 

g) Date of manufacture and packaging; 

h) Date of minimum durability (ìbest beforeî) or expiration date; 

i) Handling and storage instructions; and 

j) Business name and address of the importer. 

D. The Veterinary Administration of the exporting country shall issue an IVC for a specific 

shipment of meat and/or meat products. The IVC shall contain the minimum information 

stipulated in the OIE model health certificate and shall bear/contain, among others, the seal 

of the issuing agency. 

E. A qualified exporter shall only ship into the Philippines: 

1. Fresh/chilled or frozen meat or meat products at the earliest date prior to its ìdate of 

minimum durabilityî/expiration date; and

1794 


2. Canned meat products not later than one (1) year prior to its ìdate of minimum durabilityî/expiration. 

F. The exporter shall ensure that the date of shipment of goods (as reflected in the bill of 

lading/airway bill) is not earlier than the date of the issuance of VQC. 

SECTION V 

RELEASE PROCEDURES 

A. At least three (3) days prior to the expected arrival of the shipment, the importer shall 

inform the DAVQO at the port of entry by submitting the accomplished Notice of Arrival Form 

attached to the VQC. 

B. The shipment shall be accompanied by an IVC (written/translated in English) issued by 

the Veterinary Administration at the country of origin. 

C. The shipment shall only be released by the Bureau of Customs (BOC) upon accomplishment 

of the following: 

1. Presentation of the importer of the VQC (original), Bill of Lading/Airway Bill, and 

Packing List to the DAVQO for verification and evaluation; 

2. Initiation and completion of the mandatory veterinary quarantine inspection done by 

random sampling and/or documentation and clearance; 

3. Payment of veterinary quarantine inspection fee; 

4. Resealing (BAI seal) of the container van/s with the goods inspected; and 

5. Issuance of a VQIC and stamped ìInspected and Passedî mark on the original 

copies of the BOC import documents/entries from the initiation of the quarantine inspection. 

D. The DAVQO shall provide the NMIC of the copy of the VQIC within 24 hours from the 

time the goods are cleared. The consignee shall notify the NMIC (by submitting the accomplished 

Request for Meat Inspection and Laboratory Analysis attached to the VQC) upon 

release of the goods by the BOC and delivery of the same to the importerís cold storage/ 

warehouse/processing plant. 

E. The NMIC shall: 

1. Initiate meat inspection by random sampling within 48 hours. In no case shall the 

importer break the BAI seal and/or unload the goods from the container van/s in the 

absence of a NMIC inspector. 

2. Subject the goods to microbial and chemical analyses to determine whether these 

conform to Philippine requirements. 

3. Issue an Imported Meat Inspection Clearance (IMIC) to the consignee (within 3 

working days from the date of initiation of meat inspection) upon payment of the NMIC


inspection fee. If laboratory result is not yet available within 3 days, an IMIC will still be 

issued to state that the subject goods will be subject to surveillance and mandatory recall 

should the result proves that the goods are unfit/unsafe for human consumption. 

SECTION VI 

CONFISCATION AND DISPOSITION 

A. Imported meat and meat products shall be confiscated if any of the following exists: 

1. The goods lack authentic VQC/SPS Import Permit and/or IVC; 

2. The information on the IVC does not match/address the requirements/information stipulated 

in the VQC e.g., SPS conditions, among other irregularities; 

3. The volume/quantity of goods imported exceeds the volume indicated in the approved 

VQC and IVC; 

4. The goods lack appropriate labeling and packing requirements referred to in Section 

IV; and 

5. Part of or the entire shipment is unloaded from the container van/s in the absence of a 

NMIC inspector, as evidenced by a tampered BAI seal, and/or evidence of alteration, 

usage, or distribution. 

B. Imported meat and/or meat products confiscated in view of Section VI (A) above shall be 

subject to BOCís rules and regulations on disposition of confiscated products and to DA 

quarantine and quality inspection system. 

C. Imported goods found to pose a risk to consumer safety or animal health/life shall be 

disposed of in accordance with Section VI (D) and (E) below. 

D. Imported meat and meat products shall be confiscated under any of the following circumstances 

and shall either be destroyed or returned/re-exported: 

1. Goods are sourced from a country/zone from which importation is banned in view of 

disease outbreak or contamination; 

2. The goods are found to be infected by any OIE lists A and B disease and/or carrying 

any disease-causing organism. 

3. The goods contain any toxic or deleterious substance, which may render them injurious 

to health; 

4. The goods contain any added toxic or deleterious substance other than (a) allowed 

pesticides, (b) food additives, and (c) color additives (d) contaminants at levels beyond 

the prescribed/established tolerances; 

5. The goods have been prepared, packed or held under unsanitary conditions in which 

they may have been contaminated with filth or rendered injurious to health;

1796 


6. The goods consist, in whole or part, of any filthy, putrid, rotten, decomposed substance 

or foreign matter, or otherwise unfit for human consumption; 

7. The container or packaging materials in direct contact with the goods are found to be 

composed of, in whole or part, of any poisonous or deleterious substance, which render 

the contents injurious to health; and 

8. The goods imported have arrived beyond the ìdate of minimum durabilityî/expiration 

date prescribed in Section IV (E). 

E. The importer/consignee shall bear the expenses to be incurred in the confiscation and 

disposition of the goods in view of Section VI (C & D) above. These expenses include among 

others destruction, storage, cartage, and labor. Failure of the consignee to pay the said 

expenses shall constitute a lien against any future importation. 

SECTION VII 

PENALTY PROVISIONS 

Violators of the provisions of this Order shall be penalized in accordance with Article 

19 (Penalty), Chapter I, Title II, of Republic Act No. 7394 otherwise known as the Consumer 

Act of the Philippines issued dated 13 April 1992. 

SECTION VIII 

TRANSITORY PROVISIONS 

A. All existing commercial importers and exporters shall be considered accredited for a year 

from the effectivity of this AO. 

B. Within the abovementioned period, all existing importers and exporters shall be subject 

to review and assessment. 

SECTION IX 

REPEALING CLAUSE 

All existing rules and regulations, which are inconsistent with this Order are hereby 

modified, revoked or repealed. This AO repeals DA Administrative Order No. 16, issued on 

27 April 2000. 

SECTION X 

SEPARABILITY CLAUSE 

The provisions of this Order are hereby declared to be separable, and in the event one 

or more of such provisions are held unconstitutional, the validity of the other provisions shall 

not be affected thereby. 

SECTION XI 

EFFECTIVITY 

This Order shall take effect thirty (30) days after its publication in two (2) national 

newspapers of general circulation. This Order shall be subject to an annual review as may 

be necessary.




Secretary 

Annex ìAî 

List of Meat and Meat Products Referred to In Section II of 

DA AO No. 39, Series of 2000 

HDG Number* Description 

02.01 Meat of bovine animals, fresh or chilled 

02.02 Meat or bovine animals, frozen 

02.03 Meat of swine, fresh, chilled or frozen 

02.04 Meat of sheep or goats, fresh, chilled or frozen 

02.05 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen 

02.06 Edible offal of bovine animals, swine, sheep, goats, horses, asses, 

mules or hinnies, fresh, chilled or frozen 

02.07 Meat and edible offal, of poultry of heading no. 01.05, fresh, chilled or 

frozen 

02.08 Other meat and edible meat offal, fresh, chilled or frozen 

02.09 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise 

extracted, fresh, chilled or frozen 

02.10 Meat and edible meat offal, salted in brine, dried or smoked, edible 

flours and meals of meat or meat offal 

15.02 Fat of bovine animals, sheep and goats other those of heading no. 

15.03 (not processed) 

16.01 Sausages and similar products; of meat, meat offal or blood; food 

preparations based on these 

16.02 Other prepared or preserved meat, meat offal or blood 

______________ 

*Based on the Harmonized Commodity Description and Coding System, Tariff and Customs Code of the 

Philippines (TCCP) issued in April 1999. 

DEPARTMENT OF AGRARIAN REFORM 


DAR Administrative Order No. 07, s. 2000 

Revising the Organizational Structure of the Department Agrarian Reform 

Pursuant to Executive Order No. 290 (September 22, 2000) entitled ìStreamlining the 

Structure and Functions of the Department of Agrarian Reform and for other purposesî and 

Sections 7, 9, 10 and 34 of Executive Order (EO) No. 129-A (July 26, 1987), otherwise

1798 


known as the ìReorganization Act of the Department of Agrarian Reformî, the organizational 

structure of the Department of Agrarian Reform (DAR) is hereby revised as follows: 

ARTICLE I. PRELIMINARY PROVISIONS 

SECTION 1. Rationale for Reorganization ñ The Department of Agrarian Reform is 

the principal agency responsible for implementing the Comprehensive Agrarian Reform Program 

(CARP). Revision of its organizational structure at this time becomes necessary to 

enable the Department to respond to new global and national challenges; address urgent 

concerns on sustainable rural development; and streamline organizational gaps, overlaps 

and other structural deficiencies so as to improve coordination, accountability, and effectiveness 

in delivering services to the public. 

SEC. 2. Statement of Objectives ñ The rationalization of the Departmentís organizational 

design is intended to: 

a) Align the Department to its new strategic thrusts and directions and respond to developments 

in the national and global scenes; 

b) Address the gaps, overlaps and limitations in the current set-up which impinge on the 

ability of the organization to deliver effective services; 

c) Promote total human resource development in the organization geared towards strengthening 

capabilities and potentials of its personnel; and 

d) Streamline its systems and procedures to facilitate and improve the relevance and quality 

of frontline services, improve policy formulation, planning, performance and evaluation, 

and assessment. 

SEC. 3. Governing Principles & Policies ñ The reorganization shall be carried out in 

accordance with the following principles and policies: 

a) The organizational structure shall be designed in accordance with the constitutional and 

statutory mandate of the Department taking into consideration the socio- economic objectives 

of CARP; 

b) The reorganization shall be undertaken within the existing budgetary limitations of the 

DAR in particular and the government in general; 

c) Employeesí rights and interests shall be protected. No involuntary separation of personnel 

shall be made. Appropriate funding shall be requested from the Department of Budget 

and Management (DBM) for those who will opt for separation from the service. No personnel 

movement which will result in diminution of salary shall be undertaken; 

d) A retooling program shall be developed and implemented to strengthen the capabilities 

and potentials of the existing human resources of the Department in line with its new 

strategic thrusts and directions; 

e) The reorganization shall be a developmental process where suggestions will be encouraged 

to fine-tune the structural design down to the lowest levels; and


f) Organizational safety nets shall be instituted throughout the process to ensure that the 

needs and concerns of the organization and its personnel are duly considered. These 

shall include, among others, the creation of appropriate venues that will address the complaints 

of employees on the organizational development process. 

A. CENTRAL OFFICE 

ARTICLE II. REVISED ORGANIZATIONAL STRUCTURE 

SEC. 4. Composition of Central Office ñ The DAR Central Office shall be composed 

of the Office of the Secretary, the Office for Legal, Policy & Public Affairs, the Office for 

Operations, and the Office for Management Services, inclusive of the offices or units under 

them. (The revised core organizational structure for the Central Office is presented in Annex 

ìAî which forms an integral hereof. 

SEC. 5. Office of the Secretary ñ The Office of the Secretary shall provide the general 

and strategic thrusts and directions of the Department. It shall initiate programs, coordinate, 

orchestrate, and integrate the work of the major offices of the Department, It shall 

establish and maintain effective relations with other government agencies and publics. The 

Secretary shall perform such powers and functions as provided for under EO 129-A and 

other existing laws and regulations. 

The Office of the Secretary shall directly supervise the following: 

a) Presidential Agrarian Reform Council (PARC) Secretariat. The PARC Secretariat 

shall perform the duties and responsibilities assigned to it pursuant to Sec. 43 of RA 

6657. It shall review, prioritize and consolidate the plans, programs and budgetary requirements 

of the various CARP implementing agencies (CIAs), as well as allocate funds 

to the CIAs and ensure their proper utilization. It shall facilitate inter-agency linkages and 

coordination, and monitor CIA performance against plans and targets. In addition, it shall 

review and recommend policies, rules and regulations toward more effective CARP implementation. 

b) DAR Adjudication Board (DARAB). The DARAB shall perform such powers and functions 

assigned to it under Sec. 13 of EO 129-A, which primarily pertains to the resolution 

of agrarian disputes, as enumerated in Sec. 1, Rule 11 of the DARAB Revised Rules and 

Procedures. It shall supervise and provide overall direction to agrarian reform adjudicators 

at the regional and provincial levels. 

c) Internal Audit Staff (AIS). The IAS shall formulate the Departmentís audit agenda and 

conduct actual audits of its operations and programs. It shall call the attention of the DAR 

management on deficiencies in program implementation and recommend corrective measures. 

It shall monitor compliance by concerned offices with the decisions or recommendations 

resulting from such audits. 

d) Center for Sustainable Rural Development (CSRD). As directed by the Secretary, the 

CSRD shall initiate strategic programs to address global and national issues and challenges 

in agrarian reform and rural development. It shall undertake research on the new 

dimensions in rural development work, as well as initiate the testing of new models and 

strategic approaches and programs in line with the focus towards sustainable rural devel-

1800 


opment. It shall facilitate coordination and mainstreaming of these models and programs 

among the various DAR offices. The CSRD shall also ensure the pioneering of new paradigms 

on sustainable rural development and spearhead the reorientation of DAR and its 

stakeholders to such models. 

SEC. 6. Office for Legal, Policy & Public Affairs ñ The Office for Legal, Policy & 

Public Affairs shall formulate policies, plans and programs, coordinate, orchestrate, and 

integrate the work of the bureaus and offices under it. It shall direct and supervise such 

offices, and develop appropriate systems and procedures for their efficient and effective 

operations. 

It shall be headed by an Undersecretary who shall directly supervise the following 

offices: 

a) Policy and Strategic Research Service (PBRB). The PSRS shall initiate, conduct, review 

and commission researches and other studies for CARP policy formulation. It shall 

formulate, advocate, review, monitor and coordinate the implementation of the DAR policy 

agenda. It shall provide technical support to the Guidelines Drafting Committee and its 

Technical Working Group in the policy formulation process, and assist in the formulation 

and development of policy proposals. It shall draft position papers and clarifications on 

CARP- related policies in response to queries from the public. 

b) Public Relations Service (PRS). The PRS shall generate public support for agrarian 

reform and sustainable rural development. It shall conduct research and analysis of the 

public information needs of DAR and other program stakeholders. It shall design, develop, 

produce and publish information and communication materials and other tools in 

support of DARís agenda and programs. It shall also develop media linkages to enhance 

media support and public awareness of CARP, as well as monitor and coordinate special 

events to promote CARP. It shall ensure consistency of messages and a more synchronized 

handling of events and resources on public issues for greater impact. The PRS 

shall also be responsible for legislative liaison work such as establishing alliances with 

the legislature and other sectors, attending hearings on bills, resolutions or other legislative 

measures that affect CARP, and lobbying for the passage of CARP-supportive legislation. 

The functions of Public Affairs Staff and the Legislative Liaison Office under the existing 

structure are hereby integrated with PRS. 

The Office for Legal, Policy & Public Affairs shall have a Legal Services Office, to be 

headed by an Assistant Secretary, that will focus on the provision of enhanced legal services 

to the Department, the beneficiaries, and other stakeholders of the Program. It shall be 

responsible for the review of contracts and other legal matters, the rendition of legal assistance 

to those who will be affected by the agrarian reform program. It shall represent DAR 

before judicial, quasi-judicial, and administrative bodies in cases arising from the implementation 

of agrarian reform. It shall formulate policies, develop plans and programs, initiate 

new programs, coordinate, orchestrate and integrate the work of the following offices: 

a) Bureau of Agrarian Legal Assistance (BALA). The BALA shall primarily perform the 

powers and functions assigned to it pursuant to Sec. 21 of EO 129-A. It shall represent 

the agrarian reform beneficiaries in cases or disputes arising from, or connected with


agrarian reform implementation before judicial, quasi-judicial, and administrative bodies. 

It shall also provide assistance in the conduct of alternative dispute resolution services 

such as conciliation or mediation. It shall undertake case review, conduct ocular inspection 

and investigation, and prepare orders, resolutions or decisions of agrarian law implementation 

cases referred to it pursuant to existing rules and regulations. It shall render 

legal opinions, as requested, on issues arising from the implementation of agrarian reform. 

It shall develop plans and programs, formulate guidelines and procedures and provide 

such assistance as may be necessary to expedite the resolution of agrarian cases. 

b) Special Concerns Staff (SCS). The SCS shall be responsible for handling priority areas/ 

subjects identified by the Secretary that necessitate special and immediate attention. It 

shall assist in the resolution of urgent and flashpoint cases and shall implement a system 

for quick response operations (QRO) to ensure prompt actions and referral of these cases 

to concerned units. It shall also conduct dialogues and establish and maintain a network 

with the basic sectors, civil society, and government agencies to mobilize support for the 

resolution of flashpoint cases. 

The Center for Land Use, Policy, Planning and Implementation (CLUPPI), created 

pursuant to DAR Administrative Order (AO) No. 14, Series of 1994, shall be under the direct 

supervision of the Assistant Secretary for Legal Services. The CLUPPI shall continue to 

exercise the functions assigned to it under AO 14 (1994) and other existing rules and regulations 

relative, among others, to the formulation of policies on land use conversion, review, 

processing and verification or conversion applications, and coordination with other concerned 

government agencies on land use matters. The CLUPPI-2, which was created pursuant to 

DAR Memorandum Circular No. 9, Series of 1997, is hereby merged with the CLUPPI. 

SEC. 7. Office for Operations ñ The Office for Operations shall formulate programs, 

coordinate, orchestrate and integrate the work of the bureaus and offices under it. It shall 

develop systems and procedures, provide overall direction and supervision to field operations, 

and monitor the performance of field offices. 

It shall be headed by an Undersecretary who shall directly supervise the regional, 

provincial and field offices. 

The Office for Operations shall have an Operations Support Office, to be headed by an 

Assistant Secretary, which shall provide focused, integrated, coherent and unified support 

to field operations. 

It shall formulate programs, coordinate, orchestrate and integrate the work of the following 

bureaus and offices: 

a) Bureau of Land Tenure Improvement (BLTI). The BLTI shall absorb the relevant functions 

of the Bureau of Land Acquisition and Distribution (BLAD) and the Bureau of Land 

Development (BLD), as provided for in Sec. 19 and 20 of E.O. 129-A. It shall formulate 

policies, plans and programs on land tenure improvement and land productivity. It shall 

provide technical assistance and services on land identification, land surveys and analysis 

of land resource features, physical infrastructure design planning, land valuation and 

documentation, land distribution, leasehold arrangements and other tenurial improvement 

schemes. It shall also review, analyze and verify land tenure documents and spear-

1802 


head functional competency development of concerned of DAR personnel on land tenure 

improvement and land productivity. 

The functions of the Bureau of Land Acquisition and Development (BLAD) and the Bureau 

of Land Development (BLD) under the existing structure are hereby integrated with 

BLTI. 

b) Bureau of Agrarian Reform Beneficiaries Development (BARBD). The BARBD shall 

formulate policies, plans, programs and models, and provide technical assistance for the 

development of agrarian reform beneficiaries and their communities. It shall institutionalize 

the development processes for agrarian reform beneficiaries and communities through 

the establishment of model programs and pilot projects, manualization and development 

of information, education and communication (IEC) materials, administrative issuances 

and policy papers. It shall also spearhead functional competency development on program 

beneficiaries development. It shall continue to perform the duties and responsibilities 

assigned to it under Sec. 23 of EO 129-A and such other pertinent laws and regulations. 

c) National and Global Development Cooperation Staff (NGDCS). The NGDCS shall 

formulate policies, guidelines and systems, and provide technical assistance on project 

development and management and resource mobilization. It shall prepare program/project 

proposals in accordance with the standards of concerned government entities and donor 

institutions, and ensure acceptability of such proposals by NEDA and other approving 

authorities. It shall determine funding requirements and generate foreign and local funds/ 

resources for programs and projects through the establishment and maintenance of linkages 

with foreign funding institutions, other donors, government agencies, private sector 

and local government units. It shall supervise, monitor and evaluate the implementation 

of projects to ensure that targets and commitments are duly accomplished. It shall spearhead 

functional competency development of concerned DAR personnel on project development 

and management and resource mobilization. 

The Project Development Management Staff (PDMS) and the Foreign-Assisted Projects 

Office (FAPSO) under the existing structure are hereby integrated with NGDCS. 

There shall be an Investment Promotions Unit (IPU) under the Office of the Assistant 

Secretary for Operations Support. The IPU shall operationalize and monitor the various 

projects under the civic entrepreneurship programs of the Department, i.e., MAGKASAKA 

Program, Farmersí Trust, etc. and develop production system models for adoption at the 

field level. It shall conduct industry and commodity studies and analyses toward identifying 

investment opportunities in the agrarian/agri-sector. It shall determine market trends, and 

review and evaluate feasibility studies on joint venture projects. It shall also link up with other 

agencies on agri-business concerns. 

SEC. 8. Office for Management Services ñ The Office for Management Services 

shall supervise all units that provide services to the organization towards the achievement of 

an effective and efficient bureaucracy. It shall formulate policies, plans and programs, coordinate, 

orchestrate, and integrate the work of the bureaus and offices under it. 

It shall be headed by an Undersecretary who shall directly supervise the following 

offices:


a) Corporate Planning Service (CPS). The CPS shall monitor plan implementation, process 

macro-economic indicators, and anticipate strategic issues affecting program directions 

and annual plan implementation in order to sharpen assumptions and identify trends. 

It shall orchestrate the strategic planning process by providing the planning framework, 

guidelines, timetable and technical assistance. It shall also conduct a regular assessment 

of the Departmentís performance against targets, and provide management with timely 

reports on program/plan accomplishment, progress and results. In addition, it shall initiate, 

orchestrate and consolidate the DAR strategic and medium-term development plans 

and ensure their operationalization across DAR offices. It shall spearhead functional competency 

development in planning across offices and units. 

b) Information Management Service (IMS). The IMS shall formulate information management 

policies, guidelines and a cost-effective and appropriate information systems architectural 

plan. It shall provide solutions to assessed needs and requirements related to 

information technology of DAR units, and design, develop, install and maintain information 

systems and a communications network for optimum utilization. It shall also provide 

timely information retrieval and delivery service through the management of critical databases. 

In addition, it shall spearhead the development of an information technology (IT)empowered 

DAR personnel. 

The Office for Management Services shall have a Resource Management Office, to be 

headed by an Assistant Secretary, which shall provide focus and strengthen accountability 

for the management of the Departmentís financial, manpower and physical resources. It 

shall formulate programs, coordinate, orchestrate and integrate the work of the following 

offices. 

a) Finance Service. The Finance Service shall direct and strengthen the financial management 

capability of DAR to support the strategic thrusts. It shall formulate financial policies, 

systems and guidelines, and ensure the proper allocation, accounting and control of funds 

to support approved programs/projects in accordance with government regulations. It 

shall orchestrate the budget development, execution and monitoring process, as well as 

consolidate, package and justify the DAR budget for legislative hearings and other presentations. 

In addition, it shall provide management with timely and reliable financial reports, 

and spearhead functional competency development on finance management. 

b) Administration Service. The Administration Service shall formulate policies, processes, 

guidelines and procedures on administrative concerns. It shall procure supplies, materials 

and equipment for the Department, and ensure their timely issuance and proper disposal. 

It shall also maintain records and handle the releasing and proper disposal of 

administrative orders, issuances and other circulars. It shall provide transport and logistical 

support and maintenance, cashiering and messengerial services, as well us security 

and safety measures and control. It shall handle building maintenance and housekeeping, 

and spearhead functional competency development in administration. 

c) Human Resource Development and Management Service (HRDMS). The HRDMS 

shall formulate human resource policies, processes, systems, plans and programs, and 

orchestrate the performance management process. It shall conduct organizational diagnosis, 

value formation, team strengthening, change management programs in order to 

align the organization with new agrarian reform and rural development approaches and

1804 


strategies. It shall provide technical assistance and oversee competency development 

related to maintenance functions through training administration and other interventions. 

It shall formulate position standards and undertake recruitment and selection of personnel. 

It shall provide accurate and timely information on the organizationís human resources, 

and manage personnel files, and internal communication materials and programs. It shall 

oversee the employee relations program, administer employee benefits, conduct investigations, 

and provide assistance in the resolution of employee discipline cases. 

The relevant functions of Bureau of Agrarian Reform Information and Education (BARIE) 

under Section 22 of EO 129-A, Personnel Division of the Administrative Service and 

Legal Service under the existing structure are hereby integrated with HRDMS. 

B. FIELD OFFICES 

SEC. 8. Composition of Field Offices ñ The Field Offices of the Department shall 

consist of the Regional Agrarian Reform & Rural Development Offices, the Provincial Agrarian 

Reform & Rural Development Offices, and the Field Agrarian Reform & Rural Development 

Offices. (The revised organizational structure for the Field Offices is presented in Annex 

ìBî which forms an integral part hereof). 

SEC. 9. Regional Agrarian Reform & Rural Development Offices ñ The Department 

shall have 14 Regional Offices to be known as ìRegional Agrarian Reform & Rural 

Development Officesî. Each Regional Office shall be headed by a Regional Director, assisted 

by two (2) Assistant Regional Directors, who shall report directly to the Undersecretary 

for Operations. The Regional Agrarian Reform & Rural Development Offices shall provide 

overall direction and supervision, set performance parameters and standards, and monitor 

program implementation in the region. They shall coordinate, orchestrate, integrate and 

monitor the work of the provincial and field offices. 

Each Regional Office shall have a Regional Management Service, to be headed by an 

Assistant Regional Director, which shall supervise all units providing services to the regional 

organization towards the achievement of an efficient and effective bureaucracy. It shall coordinate, 

orchestrate, and integrate the work on resource management of provincial and 

field offices. It shall undertake systems development across divisions under it, as follows: 

a) Finance and Administration Division which shall be responsible for budgeting and 

accounting and for consolidating provincial financial reports. It shall administer procurement, 

records management, and auxiliary services at the regional level. 

b) Planning Division which shall be responsible for regional development planning as well 

as work and financial planning. It shall monitor and evaluate program plan implementation 

and regional performance against targets. 

c) Human Resource Development and Management Division which shall be responsible 

for personnel administration, conduct training and development, and internal communication 

activities at the regional level. 

The functions of Information and Education Division geared towards DAR personnel are 

hereby absorbed by the HRDM division.


There shall also be, for each Regional Office, a Regional Operations Support Office, 

to be headed by an Assistant Regional Director, which shall provide administrative 

supervision to all units providing services to provincial operations. It shall coordinate, orchestrate, 

and integrate the work of the divisions concerned with operations. It shall undertake 

systems development across such divisions, as follows: 

a) Rural Development Coordination Division which shall be responsible for sectoral planning, 

project development and management, and resource mobilization at the regional 

level. It shall coordinate and monitor sustainable rural development plans and programs 

on land tenure improvement and program beneficiaries development. It shall also provide 

technical assistance to the provincial offices on operations support, promotion of civic 

entrepreneurship and implementation of programs and projects on sustainable rural development. 

The functions of the Support Services Division/Project Development and Implementation 

Division and the Operations Division under the existing structure are hereby integrated 

with the Rural Development Coordination Division. 

b) Legal Assistance Division which shall be responsible for case identification and documentation, 

representation in cases involving DAR personnel and agrarian reform beneficiaries 

and the expeditious resolution of cases at the regional level. It shall also handle 

special concerns and flashpoint cases. 

c) Public Relations Division which shall be responsible for tri-media campaigns at the 

regional level and for the production of communication materials aimed at the different 

publics. It shall also be responsible for networking and advocacy activities geared towards 

gaining greater public awareness and support for DAR programs and projects. 

SEC. 10. Provincial Agrarian Reform & Rural Development Offices ñ In lieu of the 

Provincial Agrarian Reform Offices, there shall be Provincial Agrarian Reform & Rural Development 

Offices, each to be headed by a Provincial Director, assisted by an Assistant 

Provincial Director, as the Secretary may determine. The Provincial Agrarian Reform & Rural 

Development Offices shall provide overall direction and supervision of the frontline operations 

of the Department. They shall facilitate land surveys and the approval of survey 

results, land valuation and compensation at the provincial level. They shall administer the 

registration, signing and sealing of Emancipation Patents (EPs) and Certificate of Land 

Ownership Awards (CLOAs). They shall also conduct progress monitoring and assessment, 

and provide technical support to field operations. 

The Provincial Director shall directly supervise the following offices: 

a) Rural Development Division, which shall be organized in lieu of the Beneficiaries Development 

Coordination Division. It shall be responsible for sustainable ARB and ARC development 

planning activities, project development, and resource mobilization at the provincial 

level. It shall also provide technical support to field operations on beneficiaries 

development, promotion of civic entrepreneurship and implementation of programs and 

projects on sustainable rural development. 

b) Land Tenure Improvement Division which shall be organized in lieu of the Operations 

Division. It shall be responsible for the award and management of land surveys at the

1806 


provincial level. It shall process case folders, generate and register EPs and CLOAs, and 

coordinate the installation of farmer beneficiaries in distributed lands. It shall also provide 

technical support to field operations on land tenure improvement. 

c) Legal Assistance Division which shall provide legal support to field operations. It shall 

handle mediation, conciliation and legal representations and special concerns at the provincial 

level. 

Each Provincial Office shall have a Provincial Management Service, to be headed 

by the Assistant Provincial Director, which shall supervise all units providing services to the 

field organization. They shall coordinate, orchestrate and integrate the work of the following 

offices: 

a) Finance and Administration Division which shall be responsible for funds allocation, 

accounting, procurement, and records management, and provide finance, administration 

and auxiliary support to field operations. 

b) Planning Division which shall be responsible for integrated provincial development planning, 

as well as work and financial planning. It shall monitor and evaluate program plan 

implementation and regional performance against targets. In addition, it shall perform 

information management functions in support to operations. 

c) Human Resource Development and Management Division which shall be responsible 

for personnel administration, training and development and internal communication activities 

at the provincial level. 

The public relations function which includes tri-media campaigns, conduct of networking 

and advocacy activities at the provincial office shall be lodged directly under the Provincial 

Director. 

SEC. 11. Field Agrarian Reform & Rural Development Offices ñ There shall be as 

many Field Agrarian Reform & Rural Development Offices, as may be necessary, in promoting 

efficiency and effectiveness in the delivery of services, instead of the present Municipal 

Agrarian Reform Offices. The Field Agrarian Reform & Rural Development Offices may be 

established in each municipality or in cluster of municipalities by the Secretary, upon recommendation 

of the Undersecretary for Operations and the Regional Director concerned. 

The Field Agrarian Reform and Rural Development Office shall identify farmer beneficiaries, 

leaseholders and landowners, as well as document case folders, distribute EPs and 

CLOAs, improve leasehold arrangements, and install farmer beneficiaries in awarded lands. 

It shall undertake beneficiaries development services at the field level, including area 

development planning, micro-projects identification and development, resource mobilization, 

as well as conduct community/enterprise organizing and development activities such 

as training, networking, and information campaigns. 

It shall identify and investigate agrarian cases, conduct mediation and conciliation, and 

handle special concerns at the field level.


The Field Agrarian Reform & Rural Development Office shall be headed by a Field 

Officer who will supervise first-level field operations. He shall be assisted by Statisticians, 

Agrarian Reform & Rural Development Technologists, Administrative Clerks, and such other 

officials and personnel as may be assigned by competent authorities. 

ARTICLE III. TRANSITORY PROVISIONS 

Sec. 12. Implementation of New Organizational Structure ñ In accordance with 

Section 7 of Executive Order No. 290 (2000), which authorizes the Secretary to adopt interim 

structures and mechanisms pending approval of a Rationalization and Streamlining 

Plan for the Department, the revised organizational structure as provided herein shall be 

initially implemented through such orders, designations, directives or instructions, as the 

Secretary or his duly authorized representatives may issue from time to time, consistent 

with existing laws and regulations, to operationalize the same, with minimum of disruption of 

operations, and without sacrificing the efficient and effective delivery of services to the public. 

Full implementation of the reorganization shall be undertaken upon approval of a Rationalization 

and Streamlining Plan by competent authorities. 

SEC. 13. Preparation of Rationalization and Streamlining Plan ñ To fully implement 

the reorganization envisioned herein, the Task Force on Organizational Development 

created pursuant to DAR Special Order No. 930, Series of 2000, shall prepare a Rationalization 

and Streamlining Plan (RSP), in coordination with the Office for Management Services, 

consistent with Executive Order No. 290 (2000). 

ARTICLE IV. FINAL PROVISIONS 

SEC. 14. Repealing Clause ñ This Order modifies or repeals all orders, circulars, 

instructions or issuances inconsistent herewith. 

SEC. 15. Separability Clause ñ In the event any of the provisions of this Order is 

declared unconstitutional, the validity of the other provisions shall not be affected by said 

declaration. 

SEC. 16. Effectivity ñ This Order shall take effect immediately. 


(SGD.) HORACIO R. MORALES, JR. 

Secretary 

DEPARTMENT OF BUDGET AND MANAGEMENT 


Circular Letter No. 2000-17 

Reimbursement of Basic Light and Water Bills of Certain Hospital Officials

1808 


1.0 Under existing policy, free quarters is provided for the Chief of Hospital, Chief of Clinics, 

Hospital Administrative Officer and Chief Nurse as the nature of their functions involves 

round-the clock supervision of the different activities of the hospital. 

2.0 In case the above-mentioned hospital officials own a house within the locality or in close 

proximity to the hospital, said free quarters privilege shall be forfeited and concerned officials 

shall be instead allowed reimbursement of light and water bills at rates not exceeding 

the minimum charges for water and electricity prevailing in the locality for residential users, 

as certified by the local electric and water utilities offices/providers in the concerned areas. 

2.1 Minimum charge refers to the nominal rate charged by water and electric companies/ 

cooperatives to residential users which is the fixed rate for the first block of c.u. meter 

consumption for water and first block of kwh for electricity. 

3.0 The reimbursable light and water bills pertain to the personal basic consumption of the 

official concerned and not his entire household. 

4.0 If the present rates for reimbursement of light and water bills granted to entitled hospital 

officials are higher than the minimum rates prevailing in the locality, the same should be 

corrected immediately. 

5.0 Payment of herein benefit shall be subject to the available agency, corporate or local 

funds, as the case maybe. 

6.0 Please be guided accordingly. 



(SGD.) BENJAMIN E. DIOKNO 

Secretary 

óo0oó 


Establishment of DBM Public Assistance Unit (DBM-PAU) 

1.0 To respond more promptly and effectively to follow-ups and queries, as well as promote 

transparency in the handling and processing of transactions, a Public Assistance Unit has 

been created in the Department of Budget and Management. 

2.0 Accordingly, the following transactions shall be undertaken with the DBM-PAU: 

2.1 All inquiries regarding status of requests and DBM actions thereon; 

2.2 Follow-ups for rush or urgent transactions;


2.3 Queries or requests for clarifications regarding DBM matters, procedures and positions 

on budgetary issues, based on official issuances and communications made by the 

DBM, which are not otherwise forwarded to the DBM informal written queries; 

2.4 Comments, suggestions and complaints on any DBM procedure, position or action or 

the conduct of DBM officials and employees, which are not otherwise forwarded to the 

DBM in formal correspondence; and 

2.5 Telephone inquiries on the foregoing matters; 

3.0 In this regard, all DBM Bureaus and Offices shall refer all persons dealing on any of the 

above-transactions for assistance by the DBM-PAU. On the other hand, only duly authorized 

Liaison Officers of all departments, bureaus, offices and other agencies, SUCs, GOCCs 

and LGUs shall be entertained and dealt with by any DBM Bureau or Office. 

4.0 The DBM-PAU is located at Mezzanine Floor, DBM Arcache Building, MalacaÒang, 

Manila, with Telephone No. 736-27-71. 

5.0 Guidelines and Standard Operating Procedure are set for the operation of the DBM- 

PAU for strict implementation and observance. 





Secretary 

óo0oó 


Prohibition on the Grant of Amelioration Assistance 

or Any Other Similar Benefit for FY 2000 

1.0 Inasmuch as there is no appropriation covering the payment of Amelioration Assistance 

under Republic Act No. 8760, the FY 2000 General Appropriations Act, the grant of the 

same or other similar benefits is strictly prescribed in FY 2000. 

2.0 Anyone found violating the provisions of this Circular shall be severely dealt with in 

accordance with the applicable provisions of existing administrative and penal laws. 




Secretary 

óo0oó

1810 



Local Budget Circular No. 71 

Adoption of Higher Salary Schedule by Local Government Units 

1. This Circular is issued to clarify Item 11.0 of Local Budget Circular No. 56 dated January 

25, 1995 on the adoption of higher Salary Schedule by Local Government Units (LGUs) 

pursuant to second paragraph Item 5 of Joint Resolution No. 1, s. 1994 of the Senate and 

the House of Representatives. 

2. As contemplated therein, the adoption of a higher salary schedule by LGU is only an 

option that can be exercised when the legally mandated requirements of, among others, the 

Salary Standardization Law, Part II (SSL II) have already been provided for. 

3. Hence, LGUs must first implement fully the prescribed salary schedule for its income 

class and assure its sustainability before it can exercise the option to adopt a higher salary 

schedule subject to the budgetary and general limitations on Personal Services (PS) expenditures 

under Sections 325 and 326 of RA 7160 or the Local Government Code. 

4. The continued implementation of the SSL II for which the PS limitations under Sections 

325 (c) and 331 (b) of RA 7160 may be waived refers to the full implementation of the Salary 

Schedule corresponding to the income classification of a particular LGU. Adoption of higher 

salary schedule is not considered continued implementation of the SSL for purposes of 

exemption from the above-cited PS limitations. 

5. For the guidance of all concerned. 



1.0 Purpose 


Secretary 

óo0oó 

Local Budget Circular No. 72 

Compensation of the Members of the 

Provincial/City Mining Regulatory Board 

This Circular is issued to prescribe rules and regulations on the payment of compensation 

to the members of the Provincial/City Mining Regulatory Board as provided under Section 

25 of DENR Administrative Order No. 34, s. 1992 on the Rules and Regulations to Implement 

Republic Act No. 7076 otherwise known as the Peopleís Small Scale Mining Act of 1992.

October - December 2000 National Administrative Register 1811 

2.0 Coverage 

All members of the Provincial/City Mining Regulatory Board, hereinafter referred to as 

the Board, which was created pursuant to Section 24 of Republic Act No. 7076. 

3.0 Rules and Regulations 

3.1 All members of the Board may be entitled to per diem not exceeding P1,000 per 

session attended but not to exceed four (4) paid sessions or P4,000 per month. 

3.2 The support staff of the Board may be granted honoraria not exceeding P200 per 

session attended but not to exceed four (4) paid sessions or P800 per month. 

3.3 The members and support staff of the Board may collect per diems/honoraria from 

more than one source, provided however, that the aggregate compensation received 

shall not exceed their monthly basic salaries. 

3.4 Payment of honoraria authorized herein shall be subject to the 45%/55% limitation 

on personal services. 

4.0 Funding Source 

Funds necessary for the implementation hereof shall be sourced from the taxes, fees 

and charges collected from mining contractors, consistent with Sections 26 and 27, Chapter 

VI of the above-cited DENR Administrative Order. 

5.0 Effectivity 

This Circular takes effect immediately. 



1.0 Purpose 


Secretary 

óo0oó 

DBM-DECS Joint Circular No. 3, s. 2000 

Pay of Elementary and Secondary School Principals 

Pursuant to Section 17 of the Special Provisions of DECS under Republic Act No. 

8760, the General Appropriations Act for CY 2000, the following rules and regulations 

are hereby promulgated to implement the equalization in pay of elementary and 

secondary school principals.

1812 

2.0 Coverage 


All incumbents of itemized positions of Elementary School Principal under DECS, 

including those in ARMM-DECS 

3.0 Definition of Terms 

3.1 The herein pay equalization shall involve the upgrading of the salary grade allocation of 

Elementary School Principal items by two (2) grades to be at par with Secondary School 

Principal positions. 

3.2 The present salary of an incumbent for purposes of this Circular shall mean the actual 

salary rate received as of October 31, 2000 for purposes of the adjustment effective 

November 1, 2000, and as of December 31, 2000 for purposes of the adjustment effective 

January 1, 2001, exclusive of Personnel Economic Relief Allowance (PERA), Additional 

Compensation (ADCOM), year-end bonus and cash gift and any form of compensation 

outside of basic salary but inclusive of transition allowance. 

3.3 Transition allowance shall mean the excess of the actual salary over the eight step of the 

present salary grade allocation of the incumbent. 

4.0 Pay Equalization (Attachment A) 

The salary grade allocation of Elementary School Principal positions is hereby modified 

to bring them at par with Secondary School Principal positions. The implementation of the 

herein upgrading shall be done in two phases, as follows: 

4.1 Effective November 1, 2000 - Initial one (1) salary grade increase, adopting the Salary 

Schedule prescribed under National Budget Circular (NBC) No. 468 (Attachment B*) 

4.2 Effective January 1, 2001 - A further one (1) salary grade increase. 

5.0 Compensation Rules 

5.1 For purposes of the salary increases herein authorized, the basic salary shall be adjusted 

as follows: 

5.1.1 Effective November 1, 2000 - at the same salary step of his assigned salary grade 

as of October 31, 2000 (Illustrative Example A); 

5.1.2 Effective January 1, 2001 - at the same salary step of his assigned salary grade as 

of December 31, 2000 (Illustrative Example A). 

5.2 The herein salary increases shall be effected through the issuance of a Notice of Salary 

Adjustment (NOSA) by the duly authorized official (Attachment C). 

*See NAR Volume 11/1, page 20.


6.0 Funding Source 

Funding requirement for initial implementation shall be sourced from the pooled savings 

of all DECS Regional Offices/Schools Divisions. In case of insufficiency of funds, the salary 

increases prescribed herein shall be partially implemented, provided that any partial 

implementation shall be uniform and proportionate for all positions concerned departmentwide. 

In the case of ARMM-DECS, the accruing costs shall be sourced from their own savings. 

Beginning FY 2001 and thereafter, funds shall be provided to ensure full implementation 

of the herein adjustments. 

7.0 Contributions 

The salary adjustments herein authorized are subject to the mandatory requirements 

of GSIS life and retirement insurance premiums, and Home Development Mutual Fund 

(HDMF) contribution, if the recipient is a member of the GSIS and HDMF, pursuant to RA 

660 and CA 186 with respect to retirement and life insurance premiums. 

8.0 Saving Clause 

Conflicts arising from the implementation of this Circular shall be resolved by DECS, 

upon prior consultation with DBM. 

9.0 This Circular shall take effect immediately. 


ATTACHMENT ìAî 

(SGD.) ANDREW B. GONZALES, FSC 

Secretary 

Department of Education, Culture and Sports 


Secretary 

Department of Budget and Management 

Schedule of Salary Upgrading Implementing the Pay Equalization of Elementary 

and Secondary School Principal 

A. Effective November 1, 2000 

Salary Grade 

From To 

Elementary School Principal I 16 17 

Elementary School Principal II 17 18 

Elementary School Principal III 18 19 

Elementary School Principal IV 19 20

1814 


B. Effective January 1, 2001 

From To 

Elementary School Principal I 17 18 

Elementary School Principal II 18 19 

Elementary School Principal III 19 20 

Elementary School Principal IV 20 21 

ILLUSTRATIVE EXAMPLE ìAî 

Employee : Jose Joshua Trinidad 

Position : Elementary School Principal II 

Salary Grade : SG-17 

Designated 

Salary Step : 4th step 

(As of October 31, 2000) 

For November 1, 2000 implementation 

1. SG-17, 4th step, Salary Schedule under NBC No. 468 15,326 

2. SG-18, 4th step, Salary Schedule under NBC No. 468 16,247 

3. Salary increase [per month (2-1) 921 

For January 1, 2001 implementation 

1. SG-18, 4th step, NBC No. 468 16,247 


3. Salary increase per month (2-1) 975 

ILLUSTRATIVE EXAMPLE ìA-1î 

Where the total of Basic Salary and Transition Allowance is WITHIN the adjusted Salary 

Grade allocation of the position 




Actual Salary : P17,518 

(As of October 31, 2000)




Add: Transition Allowance (TA) 600 

Total 17,518 

2. SG-18, 8th step, Annex B of NBC No. 468 17,933 

3. Salary increase per month (2 - 1) 415 

Remaining balance of Transition Allowance to be deducted from 

the succeeding one salary grade upgrading (1 - 2) none 

For January 1, 2001 implementation 


2. SG-19, 8th step, NBC 468 19,009 

3. Salary increase per month (2 - 1) 1,076 

ILLUSTRATIVE EXAMPLE ìA-2î 

Where the total of basic Salary and Transition Allowance in in EXCESS of the Adjusted 

Salary Grade allocation of the position 




Actual Salary : P18,341 

(As of October 31, 2000) 



Add: Transition Allowance (TA) 1,423 

Total 18,341 


3. Salary increase per month (2 - 1) none 

Remaining Balance of Transition Allowance to be deducted from the 

succeeding one salary grade upgrading (1 - 2) 408 

For January 1, 2001 implementation

1816 



Add: Remaining balance of TA 408 

Total 18,341 

2. SG-19, 8th step NBC No. 468 19,009 

3. Salary increase per month (2 - 1) 668 

ATTACHMENT ìCî 

Mr/Ms ___________ 

_________________ 

_________________ 

Sir/Madam: 

Notice of Salary Adjustment 

Date _________ 

Pursuant to DECS Special Provision No. 17 under Republic Act No. 8760, the General 

Appropriations Act for FY 2000, providing for the equalization of pay of elementary and 

secondary school principals, your salary grade assignment and salary are hereby adjusted 

effective November 1, 2000 (January 1, 2001), as follows: 

SG-_______, _______ step P __________ 

(Salary Schedule under NBC No. 468) 

The herein adjustments are subject to review and post-audit by the concerned Regional 

Office of the Department of Budget and Management,and to appropriate re-adjustments 

and refund if not found in order. 

Position Title: ___________________ 

Present Salary Grade: _____________ 

Item No. (FY 2000 PSI/POP): ________ 

DEPARTMENT OF EDUCATION, CULTURE AND SPORTS 


DECS ORDER NO. 40, s. 2000 

Implementing Guidelines for Educational Service Contracting 

(ESC) and Tuition Fee Supplement (TFS) for SY 2000-2001


1. The State Assistance Council in its last meeting held on February 7, 2000, agreed on 

certain revisions of some provisions of DECS Order No. 75, s. 1997. These revisions have 

been incorporated in the implementing guidelines found in the Enclosure. 

2. The revised guidelines include, in brief, the following: 

- acceptance of new participating schools shall depend on the availability of funds; 

- dropouts may be replaced for SY 2000-2001 provided that the number of slots 

for ESC participating schools in SY 1999-2000 is maintained; 

- increase of subsidy for ESC grantees from P1,700 to P2,500; 

- increase of subsidy for TFS grantees from P290 to P500, and raising of tuition 

fee ceiling for schools participating in the TFS program from P2,500 to P3,500 

inclusive of the subsidy for SY 1999-2000; 

- designation of a signing officer in cases where the Regional Directors are not 

able to sign documents pertaining to the program; 

- holding in escrow a schoolís entitlements to the program for the current school 

year and suspension of the schoolís participation in the program until dispute is 

settled in cases of dispute over ownership of a participating school; 

- deadline on the submission of application and MOAs to DECS regional offices 

is due on August 31, 2000; and 

- monitoring of the ESC/TFS programs sponsored by PAFE at least twice a year 

to determine the efficiency of program implementation. 

3. All previous DECS rules and regulations and other issuances or parts thereof, which are 

inconsistent with this Order are hereby repealed or modified accordingly. 

Adopted: 13 June 2000 

(SGD.) ANDREW GONZALEZ, FSC 

Secretary 

ESC IMPLEMENTING GUIDELINES FOR SY 2000-2001 

Inclosure to DECS Order No. 40, s. 2000 

1. R.A. 8545 (amending R.A. 6728) otherwise known as the ìExpanded Government Assistance 

to Students and Teachers in Private Education, stipulates that it is the declared policy 

of the State, in conformity with the mandate of the Constitution, to promote and make quality 

education accessible to all Filipino citizens. The State also hereby recognizes the complementary 

roles of public and private schools in the educational system especially the latterís 

invaluable contribution to education. 

2. The Education Service Contracting (ESC) scheme which was formerly managed by the 

Department of Education, Culture and Sports (DECS) through the Bureau of Secondary

1818 


Education shall be administered by the Fund for Assistance to Private Education (FAPE) 

this SY 2000-2001. 

FEATURES OF THE PROGRAM 

3. Pursuant to DECS Order No. 22, s. 1992, in Educational Service Contracting (ESC), the 

Government and a private school may enter into a contract for the purpose of accommodating 

student-grantees in the said private school. The government pays the tuition and other 

school fees of the grantees. The scheme may also be applicable in communities where only 

a private school is available to deliver education service; however, this shall be subject to 

the school meeting the prescribed requirements, the approval of the Regional Director and 

the availability of funds. 

4. As agreed upon in the State Assistance Council (SAC) meeting held on March 7, 2000, 

ESC payment per student grantee shall be at the rate prescribed by the school for other 

students but not to exceed P2,500. 

5. These guidelines on the management and implementation of the Educational Service 

Contracting (ESC) program for high school students are hereby promulgated for SY 2000- 

2001 and shall be enforceable and in effect unless otherwise changed, modified or repealed. 

5a. Project Management 

1) The State Assistance Council (SAC) shall be responsible for policy, guidance 

and direction, monitoring, evaluation and the promulgation of rules and regulations 

of GASTPE programs. 

2) Implementation of these policies, rules and regulations as promulgated by 

the State Assistance Council (SAC) shall be the responsibility of FAPE. 

The ESC Unit of FAPE shall (1) supervise, monitor and oversee the implementation 

of the ESC program in all participating private schools; (2) send written 

communication to Regional Project Committees (RSPs) on DECS guidelines and 

policies, through channels; (3) collect, collate and interpret pertinent data on ESC 

from the RPCs reports whenever needed; and (4) evaluate the ESC program 

implementation. 

3) The ESC National Executive Committee is composed of the Secretary of 

Education, as Chair, an Undersecretary for Programs/Projects and Regional 

Operations, the Director of the Bureau of Secondary Education (DECS) and the 

President of the Fund for Assistance to Private Education (FAPE) as members. 

4. The ESC National Secretariat is composed of the FAPE Director for Externally 

Funded Programs as Project Director, and Project Staff members designated by 

the President of FAPE. 

5. The Regional Project Committee is composed of the DECS Regional Director 

as Chair, the Regional Chief of Secondary Education Division and the Regional 

COCOPEA Representative as co-chairs and a private school representative, as 

member.


The Unit (1) sets up the Division Project Committee (DPC) which shall handle 

ESC at the Division level; (2) supervises, monitors and oversees the implementation 

of ESC program at the regional level; (3) provides FAPE-GASTPE Implementing 

Unit with needed ESC data/reports; (4) disseminates relevant information 

on ESC implementing rules; (5) resolves issues/problems on ESC Program 

in the Region; and (6) submits duly certified periodic updated report to the ESC 

National Secretariat using the prescribed ESC Forms. 

6. The Division Project Committee is composed of the Division Superintendent 

as Chair, a duly appointed Division ESC Coordinator and a COCOPEA as 

co-chairs. 

The Unit (1) checks, reviews and processes ESC required documents presented 

by participating private schools; (2) monitors and confirms enrolment 

data; (3) prepares and submits to the RPC needed statistical data on ESC program; 

and (4) endorses to the RPC a duly certified list of ESC participating 

school indicating the number of grantees by year level and the total amount claimed 

(actual tuition and fees charged). This list should be duly certified by the Division 

Finance Office and Schools Division Superintendent. 

5.b. Procedural Management 

1. Selection of Schools - Any duly recognized private high school in the studentís 

area of residence may participate in ESC. A school may be excluded from the 

ESC program when it does not comply with the ESC guidelines, has a high dropout 

rate and has congested classrooms and inadequate support facilities. When 

a school is excluded from further participation, the RPC shall make a report to the 

ESC National Secretariat at FAPE. 

2. Selection of 1st Year ESC Grantees and Enrolment Procedure - The student 

applicant enrolls in the ESC participating private school of his/her choice in the 

area of his/her Region/Division on condition that the government shall pay the 

annual tuition and other school fees actually charged by the school up to maximum 

of P2500. 

The student applicant presents his/her elementary report card to the private high 

school participating in the ESC program. He/she undergoes the normal admission 

procedure. Among ESC grantees, preference is given to applicants whose 

family income falls below poverty line as defined by NEDA (1997: P72,000 per 

annum). 

3. Memorandum of Agreement - The private high school principal prepares the 

Memorandum of Agreement (MOA) and its supporting documents for review and 

processing by the Division Project Committee. The supporting documents to be 

submitted are as follows: (1) ESC Form 3 or the List of Selected Student Participants 

(LSSP); (2) Form 4 or List of Continuing Contract Students by Year Level 

(LCCSYL); (3) ESC Form 5 or Year-End Status Report (Submitted on the 15th of 

the following month after school closes); and (4) ESC Form 6 or Certification of 

Tuition Fees and Other Fees Charged, duly signed by the Regional Director.

1820 


The School must submit its MOA and complete supporting documents to the 

Division Project Committee on or before June 30, 2000, and every 30th day of 

June thereafter. 

4. Conditions and Limitations of Student Participation - For SY 2000-2001, 

the DECS is adopting the quota system of allocating new ESC entrants to the 

existing participating schools which will be determined by the Regional Director 

based on the capability of the school in terms of physical facilities, number of 

teachers, etc. 

Drop outs may be replaced for SY 2000-2001 provided that the number of 

slots for ESC participating schools in SY 1999-2000 is maintained. First year 

ESC applicants will enroll on a first-come-first-accepted basis upon presentation 

of their elementary report card to the high school principal. 

Once the student is enrolled as an ESC grantee in a participating private school, 

he/she shall be considered as a bonafide student of said school and shall be 

subject to its rules and regulations. 

ESC grantees must pass the minimum requirements that will qualify them for 

promotion to the next year level under DECS rules, otherwise, their privileges 

under ESC shall terminate. 

In the event that the tuition and other school fees of a private school exceed 

the set ceiling of P2500, it may collect the balance from the ESC grantee provided 

that the student is notified of said arrangement and the consent of his/her 

parents is obtained. 

In a municipality where there is no public school and the only educational 

service available is in private school, ESC may be extended to all students of 

said school subject to the availability of funds. However, priority shall be given to 

students who are residents of the community and who come from families whose 

income falls below the poverty line as defined by NEDA. For SY 2000-2001, 

acceptance of new participating schools shall depend on the availability of funds 

and subject to the approval of the National Executive Committee. 

5. Policy on Drop-outs, Transferees and Refunds. In schools where an ESC 

grantee drops out or transfers within the year, the government through FAPE 

shall pay to the schools: 

a. 10% of the subsidy if the ESC grantee drops out or transfers within the first 

week after the start of classes; 

b. 20% of the subsidy if the ESC grantee drops out or transfers after the first 

week or within the second week after the start of classes, regardless of whether 

or not the student has actually attended classes (Section 66: Tuition Charges of 

the Manual of Regulations for Private Schools, 8th Edition, 1992); 

c. 50% of the subsidy if the ESC grantee drops out or transfers after the second 

week or within the third week after the start of classes; and


d. 100% of subsidy if the ESC grantee drops out or transfers anytime after the 

third week of the start of classes. 

The Directors/Administrators of ESC participating schools shall refund to the 

ESC National Secretariat at FAPE payments for grantees that drop out or transfer. 

The ESC participating schools should furnish the ESC National Secretariat, 

the official drop-out or transfer form of students duly certified under oath. 

6. Processing of ESC Application and MOAs. 

a. Regional Project Committee (RPC): 

The participating schools submit the Memorandum of Agreement (MOA) together 

with the necessary forms and supporting documents to the Division Project 

Committee for review and verification. Thereafter, a summary report on the number 

of ESC grantees, by year level and the total amount claimed by each school, 

duly certified by the Division Finance Office and School Division Superintendent 

is submitted to the ESC/TFS National Secretariat, copy furnished the Regional 

Secondary Education Division. 

The MOAs and application forms are forwarded to the RPC-FAPE Regional 

Coordinator for review and endorsement to the RPC DECS through the Chief of 

the Secondary Education Division (SED). The deadline for submission of applications 

and MOAs to DECS Regional Offices is August 31, 2000. The SED Chief 

makes sure that the DECS Regional Director signs the MOA and endorses the 

application to the ESC National Secretariat at FAPE in Makati City. 

In case the DECS Regional Director is unavailable to sign the MOA, a designated 

DECS Officer (preferably the SED Chief) may sign on his/her behalf to 

facilitate the forwarding of the documents to the ESC/TFS National Secretariat 

for final review and processing. 

In the processing of the applications and MOAs, the supporting documents 

must be reviewed, evaluated and checked as follows: 

1. The first year student grantees are listed in ESC Form 3 (LSSP); 

2. The continuing grantees are listed by year level on the ESC Form 4 (LCSYL). 

3. Compare the current ESC grantee enrolment with that of the list in the ESC 

Form 5 or the year-end report. It must be ensured that the student is a continuing 

participant and no dropouts are included. 

4. The tuition fees and other fees charged by the school indicated in the ESC 

Form 6 conform to that approved officially by DECS and is duly noted by the 

DECS Regional Director. 

5. Verify the accuracy of computation in the billing section of the MOA to ascertain 

correctness of the contract amount.

1822 


b. ESC National Secretariat: 

The ESC National Secretariat receives the MOAs from the RPC counterpart 

under a covering transmittal slip in duplicate, and acknowledges receipt. 

The ESC National Secretariat records the MOAs by school within a division 

and region in a register with the following suggested column headings: 

a. date 

b. school name 

c. school address 

d. number of students 

e. contract amount 

f. date of 1st payment 

g. check number and amount 

h. date of 2nd payment 

i. check number and amount 

The ESC National Secretariat verifies the accuracy of computations in the 

billing section of the MOA to ascertain correctness of the contract amount; checks 

that the first year enrolment in the division/region is within the authorized slot 

allocated for the school year; reports to RPS any excess enrolment detected; 

and finally, arranges for the signing of the MOA by FAPE President and thereafter, 

for its notarization and distribution as follows: 

Original and duplicate - FAPE (ESC National Secretariat with the attached List 

of Selected Student Participants (LSSP) and List of Contract Students by Year 

Level (LCSYL); 3rd copy - Private High School Principal; 4th copy RPC Secretariat; 

5th copy - ESC National Secretariat/FAPE); and 6th copy - Notary Publicís 

Office. 

All requests for payment are processed by the ESC National Secretariat at 

FAPE. 

5c. Payment of ESC Subsidy claim 

Based on aforesaid register of MOAs, the ESC National Secretariat, issues 

payment requests to FAPEís Accounting Department for the first fifty percent 

(50%) of the contract amount, payable within 45 days after the receipt of the 

MOA, provided however, that the funds are released by DECS to FAPE. 

Upon release of the check for payment to schools, the National Secretariat informs 

the DECSROs by post on the date of the release of payment amounts and 

check number. Upon the receipt of the full amount from DECS, the National Secretariat 

arranges for the payment of the balance of the contract amount due to 

schools in accordance with the MOA stipulations. 

The check payment is issued in the name of the ESC participant school to be 

released to the official school representative as stipulated in the ESC MOA or its 

designated representative on ESC matters.


In cases of dispute over ownership of a participant school, the Regional Project 

Committee may recommend to the National Executive Committee through the 

ESC National Secretariat the holding in escrow of the ESC/TFS grant for the 

current year and the suspension of the schoolís participation in the program in 

the succeeding school year(s) until dispute is settled. 

5d. Penalties 

In case of any violation(s) of these guidelines such as 1) discrimination against 

the poor/disadvantaged ESC enrollees; 2) padding of enrolment register; and 3) 

adjustment in tuition fees charged to accommodate the tuition fee ceiling under 

ESC. DECS, upon recommendation of SAC, may ban the institution/s from participating 

in or benefitting from GASTPE programs and in other programs of the 

Department, without prejudice to administrative and criminal charges which may 

be filed against it and/or its responsible officers under existing laws. 

OTHER RESPONSIBILITIES OF THE ESC NATIONAL SECRETARIAT 

1. For each of the payments made to participating schools, take steps to obtain their official 

receipts (ORs) if the ORs are not received 30 days after the release of the check payments. 

2. Perform random checks at the division level with the DPCs to verify the validity of the ESC 

grantees enrolled in the private schools. 

3. Sample-test the ESC enrolment in schools located within reasonable distance from where 

the said random-checking is being done, by tracing the ESC students in class registers or 

other school documents related to student enrolment. 

4. Report to the National Advisory Committee (NAC) significant findings based on preceding 

steps 2 and 3 not later than the close of the current school year. 

5. About the 15th of the month following the close of the school year, follow up through the 

Regional Coordinator the list of schools which have not submitted the ESC Form 5 in their 

respective regions requesting them to expedite compliance with this requirement. 

TFS IMPLEMENTING GUIDELINES FOR SY 2000-2001 

1. As in ESC, the legal basis for the provisions and implementation of the TFS programs is 

R.A. 8545. 

2. The Tuition Fee Supplement (TFS) for high school students which was formerly managed 

by the Bureau of Secondary Education, DECS through the DECROs, shall be administered 

by the Fund for Assistance to Private Education (FAPE) this SY 2000-2001. 

FEATURES OF THE PROGRAM: 

3. The Tuition Fee Supplement (TFS) is a subsidy given by the government in the amount of 

Five Hundred Pesos (P500) per student enrolled in a qualified private secondary school. 

This private school must have charged tuition and other school fees not higher than the 

ceiling (P3500) inclusive of the subsidy for SY 1999-2000. A student can be recipient of 

either one of the two Programs, ESC or TFS.

1824 


4. These guidelines on the management and implementation of the Tuition Fee Supplement 

program for high school students (TFS) are hereby promulgated for school year 2000-2001 

and shall be enforced and in effect until otherwise changed, modified or repealed. 

4a. Project Management 

1. The State Assistance Council (SAC) shall be responsible for policy guidance 

and direction, monitoring, evaluation and the promulgation of rules and regulations 

of this GASTPE program (TFS). 

2. Implementation of these policies, rules and regulations as promulgated by the 

State Assistance Council (SAC) shall be the responsibility of the FAPE. The ESC/ 

TFS Unit of FPE (1) supervises, monitors, and oversees the implementation of 

the TFS Program in all participating private schools; (2) sends to the Regional 

Project Committee (RPC), through channels, written communications on DECS 

guidelines and policies; (3) collects, collates and interprets pertinent data on 

TFS from the RPSs and makes periodic reports whenever needed; and (4) evaluates 

the TFS program implementation. 

3. The TFS National Executive Committee is composed of the Secretary of 

Education as Chair, and Undersecretary for Programs/Projects and Regional Operations, 

the Director of the Bureau of Secondary Education (DECS) and the 

President of the Fund for Assistance to Private Education (FAPE) as members. 

4. The TFS National Secretariat is composed of FAPE Director for Externally 

Funded Programs as Project Director and Project Staff members designated by 

the President of FAPE. 

5. The Regional Project Committee is composed of the DECS Regional Director 

as chair, the Regional Chief of Secondary Education Division and the Regional 

COCOPEA representative as co-chairs and a private school representative 

as member. 

The Unit (1) sets up Division Project Committee (DPCs) which shall handle 

TFS at the Division level; (2) supervises, monitors and oversees the implementation 

of the ESC/TFS National Secretariat at FAPE with needed TFS data/reports; 

(4) disseminates relevant information on TFS implementing rules; (5) submits 

duly certified periodic update to the TFS National Secretariat using the 

prescribed TFS forms. 

6. The Division Project Committee is composed of the Division Superintendent 

as chair, a duly appointed Division TFS Coordinator and a COCOPEA representative 

as co-chairs. 

4b. Procedural Management 

1. Private High Schools which charge tuition and other fees not higher than the 

ceiling of P3500 including subsidy for SY 1999-2000, shall register and apply for 

subsidy with the DPC on or before June 30, 2000 and every year thereafter. 

Once the school qualifies, it submits 5 sets of TFS Form 1 or the Tuition and


Other Fees Supplement Voucher and 5 sets of TFS for 1-A or Schedule of Tuition 

and Other Fees together with the Memorandum of Agreement with FAPE. 

2. The DPC evaluates and reviews the MOA and supporting documents of the 

school and endorses the private school for TFS to the RPC-FAPE. The DPC 

includes the school in its Summary Report of TFS Participating Schools. The 

DPC endorses to the RPC-FAPE TFS Form 2, a duly certified list of TFS participating 

schools by Division, by school, indicating the number of grantees by year 

level and the total amount claimed. The Division Finance Officer and Schools 

Division Superintendent should duly certify this Report. The DPC submits the 

report to the RPC copy furnish the TFS National Secretariat not later than July 

25, 2000 and every year thereafter. 

3. Allocation of Proceeds - Pursuant to No. 2 of Section 5, R.A. 6728: assistance, 

under paragraph (1) sub-paragraph (a) shall be granted, and tuition fees under 

sub-paragraph (b) may be increased, on the condition, that seventy percent (70%) 

of the amount subsidized allotted to tuition fee or of the tuition fee increases shall 

go to the payment of salaries, wages, allowances and other benefits of teaching 

and non-teaching personnel except administrators who are principal stockholders 

of the school, and may be used to cover increases as provided for in the 

collective bargaining agreement existing or in force at the time when this Act was 

approved and made effective, provided, that government subsidies are not used 

directly for salaries of teachers of non-secular subjects. At least twenty percent 

(20%) shall go to improvement or modernization of buildings, equipment, libraries, 

laboratories, gymnasium and similar facilities and to the payment of other 

costs of operation. For this purpose, schools shall maintain a separate record of 

accounts for all assistance received from the government, any tuition fee increase, 

and the detailed disposition and use thereof, which records shall be made available 

for the periodic inspection as may be determined by the State Assistance 

Council (SAC), during business hours, by the faculty, the non-teaching personnel, 

students of the schools concerned, the Department of Education, Culture 

and Sports and other concerned government agencies. 

A certification on the above allocation of proceeds shall be attached to the final 

report on GASTPE at the end of the school year. 

4. The RPC-FAPE Regional Coordinator evaluates the application and reviews 

the MOA and supporting documents of the school. The deadline for submission 

of MOA to DECS Regional Offices is August 31, 2000. The Regional Coordinator 

forwards the MOA and its supporting documents to the RPC-DECS through the 

Chief of Secondary Education Division for review and signature of the Regional 

Director or his/her designated signing officer (preferably the SED Chiefs). The 

FAPE-Regional Coordinator then endorses the MOA to the TFS National Secretariat 

at FAPE in Makati City. 

The RC FAPE-Regional Coordinator prepares and submits to the ESC/TFS National 

Secretariat not later than August 30, 2000 a summary report on tuition fee 

supplement claims for SY 2000-2001 using TFS Form 2.

1826 


5. The TFS National Secretariat makes a final evaluation of the MOAs and the 

supporting documents submitted by the private schools. It verifies the accuracy 

of the computations in the billing section of the MOA to ascertain the correctness 

of the contract amount. 

The TFS National Secretariat arranges for the signing of the MOAs by the FAPE 

President and thereafter, for its notarization and distribution as follows: 

Original and duplicate - FAPE/TFS National Secretariat; 

3rd copy - Private High School Principal; 

4th copy - RPC Secretariat; 

5th copy - Bureau of Secondary Education; and 

6th copy - Notary Publicís Office 

Based on the MOA, the TFS National Secretariat issues payment requests to 

FAPEís Accounting Department for the full payment of the TFS claims. 

4c. Limitation of Student Participation - An awardee is disqualified from TFS benefits if (a) 

he/she fails in the majority (5 or more) academic subjects in which he/she is enrolled during 

the course of his/her study unless such failure is due to some valid cause; and (b) he/she 

transfers residence outside the region. 

4d. Payment of TFS Subsidy Claim - The government will reimburse the vouchers from the 

schools concerned within one hundred twenty (120) days from the close of the registration 

period; provided, however, that all documents of the participant school have been processed 

by the ESC/TFS National Secretariat and provided, further, that the funds have been released 

by DECS to FAPE. All TFS subsidy payment requests are processed by the ESC/ 

TFS National Secretariat. 

Upon release of the checks for payment to schools, the National Secretariat informs 

the DECSROs by post on the date of the release of payments, amounts and 

check numbers. 

The check payment is issued in the name of the TFS school to be released to the 

official school representative as stipulated in the TFS MOA or its designated representative 

on TFS matters. In the case of students who were collected the full tuition fee in advance, 

the school shall refund to the students the Five Hundred Pesos (P500) tuition fee subsidy. 

In cases of dispute over ownership of a participant school the Regional Project Committee 

may recommend to the National Executive Committee through the ESC National 

Secretariat the holding in escrow of the ESC/TFS grant for the current year and the suspension 

of the schoolís participation in the program in the succeeding school year(s) until dispute 

is settled. 

4e. Penalties In case of any violation of these guidelines and the provisions of R.A. 8545, 

the DECS upon recommendation of SAC, may ban the institution/s from participating in or 

benefitting from the GASTPE programs and in other programs of the Department, without 

prejudice to administrative and criminal charges which may be filed against it and/or its 

responsible officers under existing laws.


Any school that shall refuse to furnish copies of their audited financial statements to 

concerned sectors with whom they are having consultation prior to tuition fee increases, 

shall forfeit the right to increase their tuition fees, in addition to other penalties or sanctions 

as may be imposed under the preceding paragraph or by existing laws. 

4f. Other responsibilities of the RPC-FAPE 

a. TFS Regional Coordinator (TFS-RC) prepares the consolidated report, also using TFS 

Form 2, and submits it to the TFS National Secretariat not later than August 30, 2000. A 

copy of the TFS Form 1 should be submitted also to the Bureau of Secondary Education not 

later than August 30, 2000 and every year thereafter. MOA is processed at the TFS National 

Secretariat, which issues checks directly to the schools corresponding to the aggregate 

amount indicated in the MOA. 

OTHER RESPONSIBILITIES OF TFS NATIONAL SECRETARIAT 

a. For each of the payments made to participating schools, take steps to obtain their official 

receipts (ORs) if the ORs are not received 30 days after the release of the check payments. 

b. Perform random checks at the division level with the DPCs to verify the validity of the TFS 

grantees enrolled in the private schools. 

c. Sample-test the TFS enrolment in schools located within reasonable distance from where 

the said random-checking is being done, by tracing the TFS students in class registers or 

other school documents related to student enrolment. 

d. Report significant findings based on preceding steps b and c to the National Advisory 

Committee (NAC) not later than the close of the current school year. 


óo0oó 

DECS Order No. 48, s. 2000 

Supplemental Guidelines on the Demolition of School Buildings 

1. In order to clarify procedures on the condemnation and demolition of school buildings 

which are perceived to be hazardous, these guidelines are hereby formulated, amending 

DECS Memorandum No. 162, s. 2000 dated April 3, 2000 entitled ìRequests for Demolition 

of School Buildingsî. 

2. As a matter of policy, demolition should be resorted to only when: 

a. the physical structure is beyond reasonable repair; 

b. it poses danger to the safety of school children; and 

c. the school administration can assure continuity of school operations even when 

the structure is demolished.

1828 


3. The following shall constitute the revised guidelines: 

a. The school head, through the schools superintendent, requests for an ocular 

inspection/assessment of the school building/structure to be condemned/demolished 

from the Building Official (Municipal/City Engineerís Office, whoever is available); 

b. The Building Official conducts an inspection/assessment of the building and 

submits a report/recommendation thereof to the school officials concerned; 

c. The school head requests from the schools superintendent for authority to 

demolish the condemned building based on the reports, findings and recommendation 

of the Building Official. If the building is insured, the school head should 

inform the insurance firm of the plan to demolish the structure; 

d. Upon approval, the schools superintendent, through the Regional Director, 

forwards the request to the Central Office for further evaluation. The documents 

shall include, among others, the following: 

1. report/recommendation of the Building Official; 

2. photographs of the building to be demolished showing damaged sections; 

3. certification issued by the school head that, if the building is demolished, 

classes need not be disrupted due to lack of classrooms; 

4. PTCA or Alumni Associationís clearance in case of school buildings with 

historical value e.g. Gabaldon type school buildings, those which are 

at least 50 years old, etc.; and 

5. Indication of probable funding for replacement. 

e. The Central Office evaluates requests, conducts inspections, if necessary makes 

recommendations and issues clearance for demolition; 

f. The school head applies for Demolition Permit from the Building Official; 

g. The school head informs the Office of the Commission on Audit/Resident Auditor 

and requests clearance/relief from responsibility so that the structure will be 

dropped from the account of the school once demolished; 

h. As the Building Official issues the necessary permit, demolition work is conducted; 

and 

i. upon the completion of the demolition, the Building Official issues a certification 

that the building has been dropped from the account of the school. 

4. Priority should be given to structures already provided with funds for replacement from 

various sources and should be ready for immediate occupancy during the school year. 

5. Immediate dissemination of this Order is directed. 

Adopted: 24 July 2000


DEPARTMENT OF ENERGY 


(SGD.) ANDREW GONZALEZ, FSC 

Secretary 

Department Circular No. 2000-10-011 

Providing Revised Rules and Procedures to Implement 

Electrification Program Funded Through Energy Regulations 

No. 1-94, Implementing Section 5 (i) of Republic Act No. 7638, 

Otherwise Known as the Department of Energy Act 

WHEREAS, Energy Regulations (E.R.) No. 1-94, promulgated by the Department on 

24 May 1994, prescribed the provision of direct benefits to pertinent Local Government 

Units (LGUs) hosting energy generating facilities and/or energy resource development projects 

within their jurisdiction pursuant to Section 5(i) of Republic Act (R.A.) No. 7638; 

WHEREAS, Department Circular (D.C.) No. 95-11-009 and D.C. No. 96-08-009, issued 

by the Department on 08 November 1995 and 09 August 1996, respectively, prescribed 

the guidelines and procedures for granting of financial benefits required under E.R. 

1-94; 

WHEREAS, D.C. No. 2000-03-003 issued on 17 March 2000, amended certain provisions 

of E.R. 1-94 and its attendant rules and procedures; 

WHEREAS, pursuant to the policy of the state to ensure total electrification of the 

country, the Department seeks to achieve full electrification of all barangays by year 2004 

as embodied in its Rural Electrification Program (REP); 

WHEREAS, in the interest of exigency of public service and to further accelerate the 

implementation of the REP to ensure the implementation and completion of the project on 

time, there is an urgent need to institute summary procedures in the approval and subsequent 

release of the electrification fund to the franchised distribution utility or project 

implementor, as the case may be; 

WHEREFORE, premises considered, the Department hereby adopts and promulgates 

the following summary procedures in the utilization and implementation of electrification 

projects funded under E.R. 1-94: 

SECTION 1. Evaluation and Approval of Electrification Projects -

1830 


a. Priority shall be given to unenergized areas of the following: 

i. Official Resettlement Areas; 

ii. Host Barangays; and 

iii. Host Municipalities/Host Cities. 

b. After electrification has reached the municipal or city level, the electrification fund of each 

energy generating facility in the same province or region, as the case may be, shall be 

combined to finance unenergized areas in the host province or host region, as the case may 

be; 

c. The National Electrification Administration (NEA) shall provide support to the Department 

in the identification of electrification projects including submission by the concerned franchised 

distribution utility of the staking sheets or single line diagram, and cost estimates; 

d. All concerned franchised distribution utilities shall submit to the Department the corresponding 

staking sheets or single line diagram detailing the design of the project including 

the estimated cost estimates and completion date of the project; and 

e. The Department, with the assistance of the (NEA), shall evaluate initial documents submitted 

by the franchised distribution utilities and the reasonableness of the cost estimates. 

SECTION 2. Release of Funds and Project Implementation 

a. A Memorandum of Agreement (MOA) shall be forged among the Department, relevant 

franchised distribution utility or project implementor, power producer and/or energy resource 

developer, NEA and the concerned LGU/s to effect the implementation of the project/s. In 

cases where the electrification project lacks necessary information and documentation, the 

MOA shall stipulate specific time frame or date for the franchised electric distribution utility to 

comply with the submission, among others, cost estimates, proposed work program, target 

date of project completion; 

b. The Department shall make the necessary fund allocation and forthwith release the funds 

to the franchised distribution utility or project implementor within fifteen (15) days upon accomplishment 

of the MOA; 

c. For projects to be undertaken by contract, initial release of fund shall be equivalent to 

fifteen percent (15%) of the total project cost. Subsequent release of fund balance shall be 

based on the result of the qualified lowest bid cost; 

d. For projects to be undertaken by administration, total project cost shall be released upon 

accomplishment of the MOA; 

e. The NEA or other government agencies shall ensure compliance by the franchised distribution 

utility or project implementor to the provisions of the MOA to facilitate post-audit by 

the Department upon completion of the projects; 

f. All electrification projects shall be completed or energized consistent on the time or date 

specified in the MOA; 

g. All electrification projects shall be undertaken in at least-cost manner. The concerned 

franchised distribution utility or project implementor may either adopt the conventional line 

design or utilize indigenous and renewable energy sources to energize the area; and


h. In cases where the electrification project is implemented by entity other than the relevant 

franchised distribution utility, the project implementor shall turn-over said project to the relevant 

franchised distribution utility for operation and maintenance. 

SECTION 3. Post Project Implementation 

a. The franchised distribution utility or project implementor shall, in writing, inform the Department 

of the project completion along with the submission of the pertinent documents, 

such as but not limited to, as-built staking sheets, documents detailing costs incurred and 

the number of potential households connected or to be connected, and completion date of 

the project; 

b. In the event that the franchised distribution utility or project implementor incurred additional 

cost in implementing the project, recovery shall be allowed subject to the following: 

i.The additional or extra works and/or change order are necessary to complete 

the project; 

ii. Submission of Certificate of Completion and Certificate of Acceptance from the 

franchised distribution utility if the project shall be undertaken by contract. If the 

project shall be undertaken by the administration of franchised distribution utility, 

a Certificate of Completion is sufficient; 

iii. Audit report detailing the additional or extra works done; 

iv. All provisions in the MOA have been strictly complied with, in accordance with 

the commitment of the franchised distribution utility; 

v. Electrification project is completed within the specified time frame or date specified 

in the MOA; and 

vi. Availability of electrification fund from the relevant energy generating facility. 

Provided, however, that the amount to be recovered shall not exceed 20 percent (20%) 

of the total estimated project cost as specified in the MOA. 

c. The Department shall conduct audit of the expenses incurred as well as technical inspection 

of the facilities installed. Accordingly, the financial and technical teams of the Department 

shall prepare their respective reports detailing their respective findings of the project 

completed. The as-built staking sheets and documents submitted by the franchised distribution 

utility shall serve as reference or initial basis for audit. 

SECTION 4. Other Provisions - 

a. This Circular shall be amended, replaced or repealed in due time as may be deemed 

necessary by the Department to rationalize the implementation of the REP of the Department. 

b. This Circular shall only apply to barangay electrification projects of the Department, utilizing 

electrification fund and interest earnings under E.R. 1-94.

1832 


c. All previous pertinent orders, resolutions or memorandum circulars inconsistent herewith 

are hereby superseded, modified or amended accordingly. 

d. This Circular shall take effect immediately. 



(SGD.) MARIO V. TIAOQUI 

Secretary 

óo0oó 

Department of Energy 

Schedule of Fees and Charges 

In compliance with Executive Order No. 197 dated 13 January 2000, directing all departments, 

bureaus, commissions, agencies, offices and instrumentalities of the National 

Government, including Government-Owned or Controlled Corporations, to increase their 

rates of fees and charges by not less than 20 percent (20%), following are the revised fees 

and charges to be collected by the Department of Energy effective fifteen (15) days after the 

last publication thereof in two newspapers of general circulation once a week for two consecutive 

weeks: 

AMOUNT 

Name of Fee Local Foreign 

Fees Collected by the Energy Resource 

Development Bureau 

Oil and Gas 

1. Declassified Paper Prints of Seismic Lines 

of Relinquished Areas P12/km/print 

2. BED (now DOE) Generated Reports of Basin 

Evaluation Geological and/or Geophysical 

Approach P60,000-120,000 

3. Application Fees for Exploration Permits 

a. Non-Exclusive geophysical permits P36,000.00 

b. Geophysical Survey and 

Exploration Contract P.48/hectare 

c. Service Contract P.48/hectare 

d. Gratuitous Permit P100.00 

4. Reports and Other Petroleum Data


a. Aeromagnetic Maps 

AMOUNT 

Local Foreign 

1. Application Colour (to be sold per 

set only - 37 sheets/set US$720.00 

2. Datachrome Maps (to be sold by sets 

only - 37 sheets/set US$720.00 

3. Isogram Maps (black and white) 

a. Maybe sold per set (37 sheets) US$360.00 

b. Maybe sold per sheet US$12.00 

b. Assessment of Philippine Energy 

Potential Using Radar Imagery P18,000 

c. Declassified Well Completion Reports P12,000-P240,000 

1. Completion Reports Only P60,000.00 

2. Other Reports for the Well P24,000.00 

3. Maps and other attachments P360/set 

d. Department of Energy (DOE-Generated 

Reports of Basin Evaluation Geological 

and/or Geophysical Approach) 

1. Generated through in-house 

projects P6,000-18,000 

2. Generated through technical 

cooperation projects P60,000-P120,000 

e. Land Sat Study US$1,200.00 

f. Oil and Gas Annual Report P400.00 

g. Seismic Data Fee when reproduced P12/line-km 

h. Service Contract Kit P500.00 

i. World Bank Report US$30,000 (cost 

of succeeding 

cost is reduced 

to $18,000)

1834 


5. Computer Generated Data, Maps and Services 

A. Maps (paper print, scale 1:2,000,000, colored, 

excluding handling cost) 

1. Service Contract Map P1,500.00 

2. Well Location Map P1,500.00í 

3. Seismic Coverage Map P1,250.00 

4. Aeromagnetic Survery Coverage Map P1,250.00 

5. Sedimentary Thickness Map P1,250.00 

6. Hydrocarbon Potential Map P1,250.00 

B. Digital Data (storing medium and handling cost excluded) 

1. Seismic Navigation Data (UKOAA) P5,000.00/3.5î disk 

2. Seismic Line Intersection file (ASCII) P800.00/3.5î disk 

3. Cultural Data (Petroseis or Autocad Format) P5,000.00/3.5î disk 

4. Well log (LAS format) P2.00/foot/log 

C. Services 

1. Labor Cost & Computer Time P300.00/hour/person 

2. Printing Cost 

a. HP Special Paper (AO size) P1,000.00 - 1,200.00 

a. HP Special Paper (A1 size) P500.00 - 600.00 



b. Reproducible film (AO size) P1,250.00 - 1,400.00 

Geothermal Division 

1. Registration/Renewal of Safety Engineer P240.00 

2. Non-Exclusive Geothermal Exploration Permit P300.00 

3. Blasting Foremanís License P240.00 

4. Explosives License/Amendments to License P240.00 

5. Purchase/Transfer Explosives P120.00 

6. Sale of: 

Geothermal Kit P120.00 

Declassified Geothermal Scientific Report P120.00 

Primer on Geothermal P 60.00 

DOE Sticker for TEC P 66.00 

7. Processing of Service Contract P1.20/hectare 

Coal and Nuclear Minerals Division 

1. Application to Purchase and Move Explosive Fee P120.00 

2. Safety Engineerís and/or Temporary Safety 

Engineer Registration Fee P180.00 

3. Renewal of Temporary Safety Engineerís 

Registration Fees P180.00


4. Registration and Annual Fee of Safety Inspectors P180.00 

5. Application to Possess Explosive Fees P240.00 

6. Application for Blaster Foremanís License P240.00 

7. Amendments to Purchaserís License P240.00 

8. Processing Fee for COC Application (minimum of 

3 blocks per application at P24,000.00/block) P72,000 for 3 blocks 

9. Processing Fee for Reconnaissance Permit 

Application (1 coal block) P2,400/block 

10. Processing Fee for Small-Scale Permit Application P540/application 

11. TEC Stickers (big & small labels) P65.00/sticker 

Contract Negotiations Division 

a. Tax-Exempt Importation Certificate 

Petroleum P240/application 

Coal P240/application 

Geothermal P240/application 

Mini-Hydro P240/application 

b. TEC Exportation Application Fee P240/application 

c. TEC Sale/Disposition Application Fee P240/application 

d. TEC Transfer Application Fee P240/application 

Compliance Division 

Charges/Income collected by the compliance 

Division are based on the provisions of the 

pertinent Presidential Decrees and/or Service 

Contract 

1. Government Share 

a. Coal PD 972 30% of net proceeds 

b. Petroleum PD 87 60% of net proceeds 

c. Geothermal Service Contract 60% of net proceeds 

Mini-Hydro Division 

Applications for Mini-Hydro Power 

Development Operating Contract (MHPDOC) P2.50/kw 

Applications for Mini-Hydro Non-Exclusive 

Reconnaisance Permit (MHNERP) P600.00 for the capacity 

up to 1000 kw and plus 

P0.60/kw in excess thereof

1836 


Application for extension of each MHNERP P600.00 

TEC Stickers 

Small size P60.00 

Big size P120.00 

Fees Collected by the Energy Utilization Management Bureau 

A. Energy Efficiency Division 

1. Boiler Efficiency Testing 

(Thermal Efficiency Testing) 

Measuring SOX, NOX, 0 2 , CO and 

CO 2 Emissions P8,370.00/boiler 

Measuring 0 2 , CO and CO 2 emissions P4,830.00/boiler 

2. Detailed Energy Audit P21,500.00 

3. Detailed Energy Audit with Thermal 

Efficiency Testing P25,000.00 

4. Electrical System Audit 

Without infrared (thermal) scanning P19,000.00 

With infrared (thermal) scanning P24,000.00 

5. Preliminary Energy Audit P11,000.00 

6. Equipment Rental 

Energy Analyzer P7,755.00/day 

Thermal Scanner ìTherma Snapî P10,195.00/day 

Flow Meter P2,262.00/day 

Flue Gas Analyzer P6,575.00/day 

Lux Meter P1,181.00/day 

Multimeter ìExtechî P1,299.00/day 

B. Conventional Energy Division 

1. Processing Fee for the application of 

a license to purchase/possess explosive 

compounds for the manufacturer of coal 

briquette P216.00 

FEES COLLECTED BY THE ENERGY INDUSTRY ADMINISTRATION BUREAU 

1. EIAB Fees and Charges for Coal and 

Coal Derivatives 

Application Fee for authority to import 

coal and its derivatives, per shipment, 

per application P300.00


Permit Fee (COC) to import coal and its 

derivatives P150.00 

2. Combined Application and Documentation Fee 

For Certification on Availment of Export 

Incentives P200.00 

3. Certification as Oil Industry Participant P300.00 

4. Endorsement of New Investments in the 

Downstream Oil Industry to the Board 

of Investments (BOI) P200.00 

5. Registration of Fuel Additives P500.00 

6. Application for Accreditation of Private 

Sector Generators P2,400.00 

7. Gas Pipeline 

Application/License Fee to operate pipeline 

for gas distribution in the domestic market P2,500.00 

Registration Fee for gas pipeline facility P1,000.00 

8. Data dissemination and servicing P1.50 per page 

9. Testing and Evaluation Activities of the National 

Petroleum Testing Laboratory (NPTL) 

A. Fuel Oil/Emulsified Fuel Oil 

B. Gasoline 

a. Ash, % mass P875.00 

b. API Gravity at 60%F P220.00 

c. Kinematic Viscosity at 50% C,cSt P530.00 

d. Sediment by Extraction, % mass P840.00 

e. Conradson Carbon Residue, % mass P560.00 

f. Flash Point, Pensky Martens, 0 C P325.00 

g. Gross Heating Value, kcal/kg P950.00 

h. Pour Point, 0 C P500.00 

i. Sulfur Content, % mass P1,535.00 

j. Elemental Analysis (ICP) P2,190.00/element 

k. Water, % P275.00 

l. B S & W, % volume P680.00 

a. Distillation Characteristics, 0 C P485.00 

b. Existent Gum, mg/100 P695.00 

c. Hydrocarbons: P2,050.00

1838 


Alcohols, % volume 

Aromatics, % volume 

Benzene, % volume 

Ethers, % volume 

d. Lead Content, g/li P1,535.00 

e. Anti-knock Index 

Confirmatory (engine): 

RON P8,135.00 

MON P8,135.00 

Indicative (portable): 

RON P450.00 

f. Copper Corrosion, 3 hrs. at 50% C P325.00 

g. Appearance P 50.00 

h. Sulfur, % mass P1,535.00 

i. Vapor Pressure @ 37.8 0 C, kPa P 415.00 

j. Specific Gravity at 15 0 C, kPa P 220.00 

C. Diesel Oil/Gasoil 

a. Calculated Cetane Index P590.00 

b. CCR on 10% Residue, % mass P880.00 

c. Density at 15 0 C, kg/li P220.00 

d. Flash Point, Pensky Martens, 0 C P325.00 

e. Sulfur, % mass P1,535.00 

f. Kinematic Viscosity at 40 0 C, cSt P530.00 

g. Distillation Characteristics, 0 C P485.00 

h. B S & W, % volume P680.00 

i. Color, ASTM P180.00 

j. Cloud Point, 0 C P500.00 

k. CCR, %mass P560.00 

D. Kerosene 

a. Color, Saybolt P295.00 

b. Sulfur, %mass P1,535.00 

c. Distillation Characteristics, 0 C P485.00 

d. Flash Point (Tag-closed), 0 C P445.00 

e. Smoke Point, mm. P360.00 

E. Used Oil 

a. Color, ASTM P180.00 

b. Insolubles, % mass 

Pentane P1,060.00 

Toluene P1,110.00 

c. Total Acid Number, mg KOH/g P1,040.00 

d. Ash Content, mass % P875.00 

e. Flash Point (COC), 0 C P410.00


f. Fire Point (COC), 0 C P410.00 

g. Kinematic Viscosity at 40 0 C, cSt P530.00 

h. Wear Metals: Al, Cr, Cu, Fe, Pb P2,190.00/element 

F. Jet Fuel (Jet A-1) 

a. Acidity, mg KOH/g P1,040.00 

b. Aromatics, % volume P2,050.00 

c. Sulfur, mass % P1,535.00 

d. Distillation Characteristics, O C P485.00 

e. Flash Point (Tag), O C P445.00 

f. Density at 15 O C, kg/m3 P220.00 

g. Vapor Pressure, 38 O C, kPa P415.00 

h. Smoke Point, mm P360.00 

i. Naphthalene, % volume P2,050.00 

k. Net Heat of Combustion, MJ/kg P2,275.00 

l. Thermal Stability 

Filter pressure drop, mm Hg. P1,800.00 

Tube deposit less than 

m. Existent Gum, mg/100 ml. P695.00 

n. Water Reaction: Interface Rating P275.00 

o. Electrical Conductivity, pS/m P320.00 

p. Aniline Point, O C P540.00 

q. Freezing Point, O C P500.00 

G. Lubes/Re-refined Oils 

a. Viscosity Index P770.00 

b. Flash Point (COC), O C P410.00 

c. Total Base Number, mg KOH/g P1,040.00 

d. Color, ASTM P180.00 

e. Ash (Sulfated), % mass P960.00 

f. Foaming Characteristics, ml Foam P565.00 

H. Liquified Petroleum Gas 

a. Sulfur, mass ppm P920.00 

b. Vapor pressure at 37.8 O C, kPa P330.00 

I. Cutback - Asphalt 

a. Flash Point (Tag Open Cup), O C P245.00 

b. Penetration, mm. P400.00 

c. Ductility, cm. P1,035.00 

d. Water content, %mass P275.00 

Fees Collected by the Technical Services 

A. Energy Research Laboratory

1840 


1. Coal Research 

a. sample penetration P100.00 

b. proximate analysis P430.00 

H 2 0 P100.00 

Ash P230.00 

VCM P100.00 

c. calorific value and sulfur P840.00 

d. ultimate analysis P1,800.00 

total sulfur P420.00 

carbon and hydrogen P900.00 

e. nitrogen P480.00 

f. coal washability test P1,350.00 

(per medium density) 

g. Sieve analysis (per size) P 40.00 

h. Hardgrove grindability Index (HGI) P300.00 

i. Forms of Sulfur (Pyritic, Organic, Sulfate) P840.00 

j. Ash Fusibility 

Oxidizing Atmosphere P1,700.00 

Reducing Atmosphere P2,100.00 

Mineral Analysis of Coal Ash P1,500.00 

Special discounts for batch samples: 

20-50 samples 10% 

50-100 samples 15% 

above 100 samples 20% 

2. Paleontology/Petrology/Palynology Research 

A. Type of Preparation 

Washed residue 

ditch cuttings P140.00 

consolidated rock samples P140.00 

Normal thin section P300.00 

Impregnated thin section or thin section of 

poorly consolidated materials (rock chips, 

sand, Foraminefera, etc.) P360.00 

Normal polished section P400.00


Impregnated thin section or thin section of 

poorly consolidated/unconsolidated materials 

(rock chips, sand, Foraminifera, etc.) P460.00 

Slabbing/plain cutting P130.00 

Palynological preparation P360.00 

Calcereous Nannoplankton Slide P120.00 

B. Type of analysis 

Micropaleontology (small, large foraminifera) P400.00 

Fossiliperous 

Non-fossiliperous P360.00 

Palynology P360.00 

Petrography (coal,rock) P380.00 

Rock Identification of hand specimen 

or ditch cuttings P100.00 

Ore Microscopy P380.00 

Mineral Analysis using X-ray Flourescence 

method (XRF) P1,800.00/sample 

Manual on the ìQuality Database and 

Washability Potential of Philippine 

Coalsî P600.00/copy 

3. Oil and Gas Research 

A. Petroleum Liquid Analysis 

Separation of petroleum from water 

& sediment P180.00 

Degrees API gravity 

Clean Crude Oil P220.00 

Oil mixed with Water/sediments P410.00 

Liquid chromatographics separation of 

petroleum sample into saturate, 

aromatic and NSO fractions P1,800.00 

Capillary column gas chromtography of 

C12 + components of saturate fraction P1,700.00 

Fractional distillation P460.00

1842 


B. Source Rock Analysis 

1. Screening tests 

a. sample preparation 

preparation of core 

sidewall and dry cuttings P120.00 

preparation of wet cuttings P140.00 

b. Total organic carbon 

first sample P760.00 

per additional sample in a 

batch of 20 samples P190.00 

c. Pyrolysis by Rock-Eval 5/Oil Show 

Analyzer P620.00 

2. Detailed Tests 

Detailed analysis of the gasoline range 

hydrocarbons (C 4 to C 7 ) in cuttings by 

capillary column gas chromatography P840.00 

Solvent extraction and desulpurization to 

obtain extractable organic matter and 

solvent extracted sediment P1,800.00 

Liquid chromatographic separation of 

EOM into saturate, aromatic and 

NSO fractions P1,800.00 

Capillary column gas chromatography 

of C 12 + components of saturate 

fraction P1,700.00 

Gas Chromatography Mass* 

Spectrometry of the Saturate Fraction 

using Benchtop Quadruple GCMS P1,920.00 

C. Natural gas analysis 

1. Analysis of N 2 , H 2 , Ar, O 2 , C 1 to C 4 

by gas chromatography P1,510.00 

2. Analysis of C 1 to C 4 by 

gas chromatography P1,580.00


3. Gas Condensates, CO 2 and H 2 S Refer to Geothermal Sec. 

D. Analysis of Natural Gas-Related Waters Refer to Geothermal Sec. 

E. Interpretation of Results 20% of Analytical Costs 

4. Geothermal Research 

A. Geothermal water analysis 

Calcium (Ca) P120.00 

Magnesium (Mg) P120.00 

Cadmium P120.00 

Sodium (Na) P120.00 

Lithium (Li) P120.00 

Chloride (Cl) > 1,000 ppm ) P140.00 

Chloride (Cl) < 1,000 ppm ) 

pH P100.00 

Boron (B) P180.00 

Iron (Fe) P120.00 

Potassium (K) P120.00 

Specific Conductivity P 60.00 

Total dissolved solids P110.00 

Alkalinity P190.00 

Sulfate (SO 4 ) P220.00 

Silica (SiO 2 ) P160.00 

Iodide (I) P750.00 

Bromide (Br) P990.00 

Manganese (Mn) P120.00 

Nickel (ni) P120.00 

Cesium (Cs) P120.00 

Lead (Pb) P120.00 

Rubidium (Rb) P120.00 

Arsenic (As) P420.00 

Silver P120.00 

Total Suspended Solids P110.00 

Zinc (Zn) P120.00 

Chromium (Hexavalent) P140.00 

Copper P120.00 

Chemical Oxygen Demand P260.00 

B. Gas condensate analysis 

Sample Preparation P110.00 

Carbon Dioxide (CO 2 ) P230.00 

Hydrogen Sulfide (H 2 S) P310.00

1844 


C. Petrochemical analysis 

Sample Preparation 

air drying P10.00 

crushing P40.00 

pulverising P50.00 

Sieving P40.00 

*Calcium (Ca) } (140.00) # P350.00 

*Magnesium (Mg) 

>1% (140) # P420.00 


Oxygen - 18 in water 

Local P1,600.00 

International US$40.00 

G. Routine Core Analysis 

A. Sample Preparation 

1. Drill Core Plug with Mineral Oil 

or Brine US$30.00 

2. Mount Sample in Hysol or Wax US$30.00 

3. Re-seal core US$8.00 -US$12.00 

4. Solvent Extraction US$25.00 - US$60.00 

B. Complete Consolidated Core Analysis 

-Includes drilling*, solvent extraction*, drying*, 

horizontal Klinkenberg permeability (Koo) 

and helium porosity at one over-burden 

pressure, grain density and brief lithologic 

description. Computerized final report presents 

results in colour, in both tabular and graphical form US$170.00 

- With residual saturations - Retort Method US$200.00 

- With residual saturations - Dean-Stark Method US$120.00 

*Special procedures which incur extra cost are listed in Sample Preparation section 

above. 

Separate or Additional Services US$20.00 - US$65.00 

C. Complete Full Diameter Analysis 

- Includes sample preparation *, solvent extraction*, 

drying*, horizontal permeabilities (maximum [Ka ma] 

and 90o to maximum [Ka 90], vertical permeability, 

helium proposity and grain density. Computerized final 

report presents results in both tabular and colour graphical 

form US$220.00 

*Special procedures which incur extra cost are listed in Sample Preparation section 

above. 

D. Sponge Core Analysis US$10 - US $30 

E. Sidewall Core Analysis 

1. Residual Fluid Content and Porosity by Summation 

of Fluids Method US$50.00 

2. Helium Porosity US$50.00 

3. Air Permeability (Ka) US$50.00

1846 


4. Grain Density - Measure in conjunction with Helium Porosity US$25.00 

5. Brief Lithological Description (no charge in conjunction with 

above services) US$15.00 

F. Gamma Log 

1. Routine Gamma Log - per foot US$15.00 

2. Spectral Core Gamma, per foot US$20.00 

G. Core Photography US$25.00 - US$35.00 

H. Core Slabbing US$12.00 - US$30.00 

I. Resin Mounting 

1. Mounting in Clear Resin, per foot 

(excluding slabbing and trays) US$35.00 

J. Core Handling US$3.00 - US$7.00 

Fuels and Appliance Testing Laboratory 

1. Pilot Scale Boiler 

A. If the base fuel (fuel oil) is provided by DOE: 

Testing fee for first day P6,700.00/day 

For succeeding days P4,100.00/day 

B. If the base fuel (fuel oil) is provided by client: 

Testing fee for first day P6,000.00/day 

For succeeding days P2,000.00/day 

2. Appliance and Equipment 

A. Appliance Testing Per Sample 

1. Electric Fans P1,800.00 

2. Refrigerators P14,800.00 

3. Electric Stoves P3,100.00 

4. Room airconditioners 

Energy efficiency and other data P7,300.00 

5. Eletric Motors P2,200.00 

B. Lighting Components 

1. Compact Flourescent Lamps P270.00/pc. 

per batch of 20 samples P5,400.00 

2. A.C. Ballast P420.00/pc 

per batch of 5 samples P2,100.00 

C. Energy-Saving Gadget for appliance and 

lighting systems Use testing fee for appliance to 

which it is attached


D. Solar Home System 

1. DC Ballast and Flourescent Lamps P1,800.00 

2. Battery Control Unit (BCU) 

Functional Test P810.00 

E. Room Air Conditioners 

Test Fees for International Clients P30,250.00/unit 

excluding freight 

and customs charges 

3. Instrument Calibration-Basic Charges 

A. Temperature 

PRT/RTD P3,380.00 

Liquid in glass thermometer P1,150.00 

Calibration at each additional 

temperature P380.00 

Additional charge, if any of test temp. 

below 30C P220.00 

Platinum Resistance Thermometers 



Additional charge, for temp above 

300C or below 30C P440.00 

Digital temperature indicator P1,280.00 

Digital Thermometers 



Additional charge, for temp above 300C 

or below 30C P200.00 

Calibration for an additional probe, for 

each temp. P130.00 

Temperature recorders P1,100.00 

Temperature Loggers/Recorders 

Calibration at each additional temp on 

same channel as above P180.00 

Verification of up to 20 channels at one 

temp P510.00 

Additional charge, for temp above 300C 

or below 30 C P150.00 

Calibration for an additional probe for 

each temperature P260.00

1848 


Bimetal/Dial Thermometers 




300C or below 30C P285.00 

Thermostat P1,180.00 

Temperature calibrator P1,500.00 

Dial type thermometer P1,520.00 

Thermocouples P3,210.00 




300C or below 30C P410.00 

Laboratory furnace over P1,610.00 

B. Pressure 

Pressure transducer P680.00 

Pressure gauges 


Power, AC P1,230.00 

Standard Resistor P1,760.00 

Voltage, AC P4,200.00 

Voltage, DC P4,770.00 

DC Voltage Reference Standard 

Additional measurement 

of emg-DCF Std. P2,010.00 

Current Shunts 

Measurement of resistance, at one 

test current P2,470.00 

Measurement of resistance, at each 

additional test current P550.00 

DC Voltage Dividers 

Measurement of each additional ratio 

on the same box P670.00 

DC Voltage Dividers 

Measurement at full range for each 

additional range P310.00 

Each additional linearity check P730.00 

DC Voltmeters 

Calibration of a multirange VM with not 

more than 5 ranges P1,580.00 

Calibration at full range for each 


Each additional linearity check P680.00 

DC Ammeters 

Calibration at full range for each 



test point of same range P260.00 

DC Current Calibrators 

Measurement at full range for each 


Measurement for each addl. current 

setting of same range P175.00 

Digital Multimeters 

Each addl. measurement function up 

to 7 -1/2 digit P295.00 

Ohmmeter calibration P410.00 

AC-DC Transfer Instruments 

AC-DC difference measurement at one 

frequency/voltage combi. P5,925.00

1850 


Measurement at each addl. frequency/ 

voltage combination P410.00 

AC-Voltage Standards (Fixed Outputs) 

Each addl. voltage and 

frequency output P595.00 

AC-Voltage Calibrators 

Voltage measurement at each addíl. 

frequency/voltage combination P415.00 

Frequency accuracy check at 5 different 

settings at 1 volt level P620.00 

AC Voltmeters 

Calibration at each addíl. range at full scale, 

at one frequency P285.00 

Additional linearity check at 1 frequency, 

per range P380.00 

Calibration at each addíl. frequency P285.00 

Calibration of precision SCVM at 1 freq/ 

voltage by AC-DC transfer P3,440.00 

Each addl. freq/volt combi. by AC-DC P765.00 

AC Ammeters 

Each addl. range at full range at one fequency P285.00 

Additional linearity check at 1 frequency, 

per range P380.00 

Each additional frequency P190.00 

AC Current Calibrators 

Calibration for the first current value at 

one frequency P2,770.00 

For each additional current value, at 

one frequency P200.00 

Wattmeters 

For each addl. voltage/current combination 

(same freq. & pf) P190.00 

Additional service as in item 1 but different 

frequency or pf P260.00 

Additional service as in item 2 but same 

frequency/pf as in item 3 P190.00 

Power Factor Meters 

Each addl. combination of freq., 

voltage, current P295.00 

Withstand Voltage Testers 

Measurement of output voltages P1,580.00 

Leak current detection accuracy test for 

the same inst. P430.00


C. Geodata and Information Services Division 

Energy Data Center of the Philippines 

A. Data Fees 

1. Seismic sections P10.00/line km - Vintage 

(pre 1990) seismic lines 

P20.00/line km - 2D, 1990 

and above seismic lines 

P4,000.00/sq.m. km- 3D 

seismic lines 

2. Well logs P1.00/ft. of log depth - 

Vintage (pre 1987) well logs 

P2.00/ft. of log depth - 1987 

& above well logs 

3. Well reports P10,000-200,000 

4. Well cores and samples 

a. Unwashed samples P8.00/gm. 

b. Washed samples P15.00/gm. 

c. Washed residues P20.00/gm. 

d. Cores P30.00/gm. 

5. General Reports P1,000 - 100,000 

6. Field samples P5.00/gm. 

7. Maps, charts and drawings P50.00/sheet 

B. Retrieval/Perusal Fees 

1. Seismic Sections P15.00-60.00 

2. Seismic digital tapes P6.00/item 

3. Seismic support documents P5.00/item 

4. Well logs P10.00 - 500.00 

5. Well reports 

well completion P100.00 - 2,000.00 

Other Well report P100.00 - 2,000.00 

6. Well cores and samples P25.00 - 500.00 

a. Washed residue P1.00/vial

1852 


b. Washed and unwashed 

well samples P2.00/bag 

c. Well cores P25.00/box 

7. Well tapes P6.00/item 

8. General reports P5.00/item 

P60,000 - 1,000.00/report 

9. Field samples P7.00/item 

P2.00/bag 

10. Maps, charts and drawings P6.00/item 

11. Consolidation listings P6.00/page 

C. Transcription Services 

1. Magnetic Tape Copying 

a. Tape input 1, 200 ft. P750/tape 

b. Tape input 2, 400 ft. P1,000/tape 

2. Compact Discs (CDs) P200.00/input CD 

3. Exabyte Tapes (160 mxl) P300.00/input Exabyte 

D. Seismic Digital Tape Rental P100.00/tape/week 

E. 1983 Questor Aeromagnetic Survey 

1. Aeromagnetic Tapes US$2,500.00/set 

US$100.00/tape 

2. Report P30,000.00/set 

F. Data intake 

1. Cataloging P6.00/item 

2. Data Entry P6.00/item 

G. Storage 

1. Boxes 

a. 2.0 cu. ft. boxes P17.00/month 

b. 2.5 cu. ft boxes P21.00/month 

2. Lateral file shelving (36î length) P25.00/shelf/month 

3. Magnetic tape P3.50/reel/month 

4. Cores and samples 

a. Cabinet P14.50/cu.ft./month 

b. Shelves P8.50/cu.ft./month


DOE Library 

A. Photocopying 

1. Letter size (8.5î x 11î); Legal size 

(8.5î x 14î) P2.00/page 

2. 11î x 17î P3.00/page 

B. Microfiche/Microfilm Printing P7.00/page 

Carthographic Engineering Section 

A. Reprographic Services 

1. Engineering Copies 

a. White Bond P120.00/sq.m. 

b. .004 Double Matte Film P250.00/sq.m. 

2. OCE 214 Printing Machine 

Diazo Paper P120.00/sq.m. 

Diazo Film P500.00/sq.m. 

B. Maps/Graphics Printing/Plotting 

1. Letter size (8.5î x 11î) P60.00/sheet 

2. Legal size (8.5î x 14î) P65.00/sheet 

3. Large Format (36î x 44î) P750.00/sheet 

C. Digitizing P60.00/sheet 

D. Scanning P30.00/data item 

E. Scanning and Printing/Plotting 

1. Letter size (8.5î x 11) P90.00/sheet 

2. Legal size (8.5 x 14î P100.00/sheet 

3. Large Format (36î x 44î) P800.00/sheet 

Geodetic Engineering Section 

A. Boundary survey of coal contract area P150.00/hectare 

B. Field verification survey P1,000.00/man/day 

C. Verification of survey returns 

1. Tracing Cloth/Mylar Film Plan P300.00/plan 

2. Fieldnotes, Computations, etc. P5.00/sheet 

D. Horizontal Control Survey/Vertical 

Control Survey P25,000.00/km. 

Administrative Services 

A. General Services Division 

Reproduction Charges P1.50/copy

1854 


Energy Planning and Monitoring Bureau 

A. Policy and Program Coordination Division (PPCD) 

Philippine Energy Plan 1996-2025 Update P895.00 

Philippine Energy Plan 1999-2008 P1,070.00 

B. Demand Analysis and Planning Division 

Household Energy Consumption Survey 

(HECS) Report P542.00 

APPROVED BY: 

(SGD.) MARIO V. TIAOQUI 

Secretary 

DEPARTMENT OF ENVIRONMENT AND NATURAL RE- 

SOURCES 


Administrative Order No. 2000-67 

Prescribing New Guidelines, Application Form and Standards 

for Public Land Applications and Records Management 

Pursuant to Executive Order No. 192 and consistent with the present thrust of the 

Department to accelerate land disposition activities in a coherent and uniform manner, improve 

the present system of administrative titling procedures, preserve the integrity of public 

land records and promote the stability of tenurial rights to complement the food security 

program of the government, the following guidelines are hereby prescribed for the guidance 

and compliance of all concerned: 

A. Survey Examination 

1. Re-examine all approved cadastral maps and ascertain whether all Land Classification 

(LC) maps and or reservations were properly projected therein to ascertain that lots for 

disposition fall specifically within the alienable and disposable (A and D) areas. 

2. Cadastral lots and other legally approved surveys, if any, found within timberlands shall 

be treated separately for issuance of appropriate tenurial instruments while those found 

within protected areas shall be treated in accordance with the NIPAS Act. 

3. The CENR Officer shall review all pertinent documents prior to the issuance of Survey 

Authority for the subdivision of any cadastral lot.


4. The Regional Surveys Division shall regularly update the cadastral maps to reflect subsequent 

surveys, All PENROs and CENROs shall be regularly furnished copies of approved 

cadastral maps and isolated survey plans. The same shall be reflected in the 

Unified Projection Maps and Base/Control maps at the CENRO/PENRO levels, respectively. 

B. Filing of Applications 

1. All applications to be filed after the effectivity of this Order shall use the new Public Land 

Application Form in Annex A of this Order for all patent applications. 

2. The application shall be filed personally by the applicant or by his duly authorized representative 

before the CENR Office concerned. 

3. Determine whether the applicant is the survey claimant as listed in the alphabetical or 

numerical list of survey claimants and by verifying the same in the sketch and survey 

record card and lot allocation book. If the applicant is not the survey claimant, the applicant 

must show proof how that land has been acquired from the said survey claimant. 

4. Prior to receipt of application, the Records Officer of the CENR Office shall ascertain 

compliance with all requirements for the application. Applications with incomplete requirements 

shall not be accepted. 

5. The accepted application, which has complied in form and substance, shall then be forwarded 

by the Records Officer to the CENR Officer who shall assign the said application 

to the Land Management Officer who in turn shall immediately refer or assign the same to 

the land inspector for appropriate field inspection and shall conduct the field inspection/ 

verification within fifteen (15) days upon receipt of the referral and who shall submit the 

corresponding report five (5) days after the field inspection. 

C. Application Processing 

1. The land inspectors/land investigators, within thirty (30) days from the last day of posting 

of notice of homestead patent or any public land application shall conduct the necessary 

field inspection. Thereafter, the land inspectors/land investigators shall prepare and submit 

within five (5) days the inspection report under oath to the CENRO or the action taken 

by them on the application and the status thereof. Consequently, the Land Management 

Officer shall monitor these applications and submit monthly reports for this purpose. 

2. The application shall be given due course if found in order. However, upon discovery of 

any false, fraudulent, inaccurate, and falsified material information in the preliminary 

examination, the application shall be rejected immediately, based on the following grounds: 

1) the land is not alienable and disposable land of the public domain; 2) the land is covered 

by a proclamation or reservation or by NIPAS Law; 3) the land overlaps with any other lot 

with an approved survey plan; 4) the application lacks the required supporting documents. 

The application, must be accompanied by a certification of the CENR Officer concerned 

duly annotated on the isolated survey plan itself or on the BL Form V-37 for approved 

cadastral lots and under oath that the land is within alienable and disposable land. However, 

in the NCR and regions of similar situation where the CENR Offices functions have been 

absorbed by the RED, the required Certification shall be issued by the ARED for Operations.

1856 


3 No transfer of rights during its pendency shall be allowed except for homestead applications 

and in cases of hereditary succession with prior approval of the office concerned. 

4. No application shall be given due course unless all existing rules and regulations are fully 

complied with, including but not limited to the publication requirements and submission of 

required certifications from concerned government agencies. 

5. Within ten (10) days upon receipt of the report as submitted by land inspectors/land 

investigators on the applications, the CENR Officer shall prepare and issue orders approving, 

cancelling and/or rejecting the application stating the reasons or grounds thereof, 

unless it is protested, in which case procedures should be followed for the issuance of an 

investigation order. All public land applications shall be acted with dispatch. 

D. Land Records Management 

1. All records shall at all times be filed in the Records Room and shall only be accessed 

upon request and prior approval by the CENR Officer. The control and management of 

DENR land records shall be strictly in accordance with the Operation Manual on the New 

DENR Records Management System pursuant to DENR Administrative Order No. 36, 

Series of 1993. 

2. The Records Officer shall submit a report in tabulated form to the DENR Officer through 

the CENR Officer twice a month on the applications received and the actions taken thereon. 

3. The PENR Officer shall likewise submit a similar consolidated monthly report to the Regional 

Executive Director (RED). 

4. The RED shall submit the region-wide report to the Secretary on a quarterly basis. 

5. The Records Officer shall immediately report to the CENR Officer any missing record, 

copy furnished the PENR Officer, the RED, and the Secretary. 

6. There shall be continuous training of personnel on records management to upgrade their 

knowledge and skills on the latest development trends on records and information management 

to include the latest digital technology. 

E. Penal Provision ó Administrative and criminal sanctions shall be imposed on personnel 

and officials, after due process, who have participated in the commission of misrepresentation 

and other infractions relative to this Order. 

F. Repealing Clause ó All orders, rules and regulations or any part thereof which are 

inconsistent herewith are hereby repealed or amended accordingly. 

G. Effectivity ó This Order shall take effect upon acknowledgment from the U.P. Law 

Center and after fifteen (15) days from the date of publication in at least two (2) newspapers 

general circulation. 

Adopted: 01 Sept. 2000



(SGD.) ANTONIO H. CERILLES 

Secretary 

óo0oó 

Joint DENR-DA-DILG-DND Memorandum Order No. 2000-01, s. 2000 

Guidelines on the Establishment, Management and 

Utilization of Artificial Reefs in Municipal Waters 

Pursuant to Section 2, Article XII of the Philippine Constitution mandating the State to 

protect the nationís marine wealth, the Philippine Fisheries Code of I998, the Local Government 

Code of 1991, Executive Order No. 192 series of 1987, DENR Administrative Order 

No. 19, series of 1993 and the Joint DENR-DA- DILG-DND Administrative Order No. 97-01, 

series of 1997, the following policy guidelines on the establishment, utilization and management 

of Artificial Reefs (ARs) in municipal waters are hereby promulgated: 

SECTION 1. Rationale - Statistics show that the contribution of coral reef fishes to the 

total fisheries production of the country ranges from 8% to 20% (White, A.T. 1990). It further 

shows that of the total 27,000 square kilometers of coral reefs in the country, only 5% are in 

excellent condition, 25% in good condition, and 70% are in fair or poor condition (Gomez, 

E.D. 1994). This poor condition of our coral reefs is attributed to a myriad of factors due to 

manís insensitivity to his marine environment and greed for short-term economic benefits 

(AIcala, A.C. 1987). As a result, the unabated degradation of coral reefs is one of the causes 

of the decline in municipal fisheries production. To address this problem, an artificial reef 

development program was launched by BFAR between 1985 to 1987 covering all regions 

with the objective of enhancing the fisheries production (Miclat, R. 1988). At the same time, 

however, there was a proliferation and indiscriminate installation of ARs that spawned socioeconomic, 

environmental, management and technical problems exacerbated in the absence 

of policies on the establishment of ARs as a fisheries management tool. 

SECTION 2. Basic Policy - It is the policy of the government to initiate the rational and 

sustainable development of the environment and natural resources and institute management 

measures designed to rehabilitate and enhance productivity of degraded coastal reefs 

and its environment for the benefit of stakeholders dependent upon it for their livelihood and 

job opportunities. 

SECTION 3. Scope and Objectives - This Order shall cover the establishment, management 

and utilization of ARs in municipal waters including bays and gulfs with the following 

objectives: 

a. To ensure the sustainable development of the countryís fishery and aquatic resources. 

b. To address the concern for food security. 

c. To allow the natural regeneration and recolonization of degraded coral reefs and its environment. 

d. To provide habitat enhancement and the recruitment of important species of fish. 

e. To improve the quality in terms of diversity and sizes of fish caught.

1858 


f. To alleviate poverty among fisherfolks in coastal communities. 

g. To develop community-based initiatives on coastal resource management. 

SECTION 4. Definition of Terms - The terms and phrases used herein shall be construed 

as follows: 

a. Artificial Reef - any structure of natural or man-made materials and placed on the sea 

bed to serve as shelter and habitat, source of food, breeding areas for fishery species 

and other marine organisms. 

b. Bay - refers to an inlet of the sea or a body of water forming an indention of the shoreline 

usually smaller than a gulf. 

c. Commercial Fishing - refers to the taking of fish and fishery/aquatic products by any 

person utilizing fishing vessels more than three (3) gross tons and using either active or 

passive gear for trade, business and profit beyond sustenance or sports fishing. 

d. Coral - the hard calcareous substance made up of the skeleton of marine coelenterate 

polyps, which include reefs, shelves and atolls or any of the marine coelenterate animals 

living in colonies where their skeletons form a stony mass. They include: (a) skeletons of 

anthozoan coelenterates characterized as having a rigid axis of compact calcareous or 

horny spicules, belonging to the genus corallium as represented by the red, pink, and 

white which are considered precious corals; (b) skeletons of anthozoan coelenterates 

characterized by thorny, horny axis such as the antipatherians represented by the black 

corals which are considered semi-precious corals; and (c) ordinary corals which are any 

kind of corals that are not precious nor semi-precious. 

e. Coral Red ñ a natural aggregation of coral skeleton, with or without living coral polyps, 

occurring in inter-tidal and sub-tidal marine waters. 

f. Fisherfolk - refers to people directly or personally and physically engaged in taking and/ 

or culturing and processing fishes and/or aquatic resources. 

g. Fisherfolk Cooperative ñ a duly registered association of fisherfolk pursuant to the Fisheries 

Code with a common bond of interest, who have voluntarily joined together to achieve 

a lawful common social or economic end, making equitable contributions to the capital 

requirement and accepting a fair share of the risks and benefits of the undertakings in 

accordance with universally accepted cooperative principle. 

h. Fisherfolk Organization ñ an organized group, association, federation, alliance or an 

institution of fisherfolk duly registered with the Securities and Exchange Commission (SEC) 

or Cooperative Development Authority (CDA) which has at least fifteen (I5) members, a 

set of officers, a constitution and by-laws, an organizational structure and a program of 

action. 

i. Food Security ñ refers to any plan, policy or strategy aimed at ensuring adequate supplies 

of appropriate food at affordable prices. Food security may be achieved through 

self-sufficiency (i.e. ensuring adequate food supplies from domestic production), through 

self-reliance (i.e. ensuring adequate food supplies through a combination of domestic 

production and importation), or through pure importation.


j. Gratuitous Permit ñ refers to the authority issued by the Municipal/City Mayor concerned, 

free of charge, in favor of accredited private research institutions, LGUs and 

national government agencies for educational, research and scientific purposes. 

k. Gulf ñ refers to a portion of the ocean or sea partly enclosed by land and usually larger 

than a bay. 

l. Habitat Enhancement ñ refers to the process of improving the condition of the water 

environment to produce more of its resources. 

m. Municipal Waters ñ include not only streams, lakes, inland bodies of water and tidal 

waters within the municipality which are not included within the protected areas as defined 

under Republic Act No. 7586 (The NIPAS Law), public forest, timber lands, forest 

reserves or fishery reserves, but also marine waters included between two (2) lines drawn 

perpendicular to the general coastline from points where the boundary lines of the municipality 

touch the sea at low tide and a third line parallel with the general coastline including 

offshore islands and fifteen (15) kilometers from such coastline. Where two (2) municipalities 

are so situated on opposite shores that there is less than thirty (30) kilometers of 

marine waters between them, the third line shall be equally distant from opposite shore of 

the respective municipalities (R.A. 8550). 

n. Peoples Organization ñ a bonafide association of citizens with demonstrated capacity 

to promote the public interest and with identifiable leadership, membership and structure. 

Its members belong to the fisheries sector who voluntarily band themselves together to 

work for and by themselves for their own upliftment, development and greater good. 

o. Stock Assessment ñ an evaluation of the effects of fishing on the status of a fishery. It is 

primarily concerned with the estimates of the catches that can be taken from fish stocks 

by fishery. 

p. Subsistence Fishing - refers to the taking of fish through hook and line by municipal 

fisherfolks, using fishing vessels less than three (3) gross tons, or fishing not requiring the 

use of fishing vessels. 

SECTION 5. Authority to Issue Permits - Municipal/City Mayors shall issue permits 

to establish and operate ARs pursuant to an approved Special Municipal/City Fishery Ordinance. 

The Ordinance shall provide, among others, sanctions for violations of the terms on 

conditions of the permit, collection of reasonable permit and annual rental fees, the rates of 

which shall be determined by the Sangguniang Bayan concerned. A pro-formatted ordinance 

shall be prepared by the Department of Agriculture-Bureau of Fisheries and Aquatic 

Resources (DA-BFAR) in coordination with the Department of Environment and Natural 

Resources (DENR). 

SECTION 6. Priority in the Grant of AR Permit ñ The priority in the grant of an AR 

permit shall be given the following order: 

a. Resident municipal/city fisherfolk cooperative/organization. 

b. Resident municipal fisherfolk/POs. 

c. Provincial fishery associations/federations.

1860 


SECTION 7. Gratuitous Permit - A gratuitous permit for the establishment of ARs that 

adhere to this guidelines shall be granted to the following: 

a. Accredited academic and research institutions. 

b. Local Government Units (LGUs) 

c. National government agencies. 

However, in case of conflict over the area applied for under this Section with those 

provided in Section 6 of this Order, the order of priority stated in the latter shall prevail. 

SECTION 8. Application Procedures ñ The following steps shall be followed in the 

processing of an application for an AR permit: 

a. Prior to the filing of an application for an AR permit, the proponent shall formally seek the 

technical assistance of the DA-BFAR in collaboration with the DENR to determine the 

suitability and feasibility of the proposed site for AR deployment. 

b. If found suitable, the DA-BFAR shall require the proponent to submit a proposed management 

and operation plan of the area applied for. (A pro- formatted outline shall be 

prepared by the DA-BFAR). 

c. The proponent shall be advised to file his application with the Municipal/City Mayor together 

with the following documents: 

1. A photocopy of the SEC or CDA registration, Constitution and By-laws of the fisherfolk 

cooperative/organization/association duly approved by the Securities and Exchange Commission 

(SEC) and/or by the government agency mandated to certify or register the same. 

2. An updated list of members and their respective addresses. 

3. A proposed management and operation plan indicating the name, technical description 

and sketch plan of the proposed site, deployment scheme and materials to be 

used in the construction of ARs. 

4. Certificates of suitability of the site and feasibility of the proposed management and 

operation plan duly issued by the Regional DA-BFAR and DENR 

SECTION 9. Criteria for Site Selection of ARs ñ The criteria for site selection of ARs 

are as follows: 

a. The site where ARs are to be installed should not be less than one (1) kilometer away 

from existing natural reefs, if any and five hundred (500) meters away from existing ARs. 

b. It should be near an alternative food sources (i.e. seagrass beds); constructed on a flat, 

barren area of relatively good visibility and at depth protected from wave action but still 

accessible to members of the Association (i.e. 15-25 m.). 

c. It should be deployed outside designated navigational sea lanes and does not obstruct 

traditional navigational route of local fishermen going to and from the fishing ground or 

pose as a navigational hazard to ships and other sea crafts.


SECTION 10. Materials for the Construction of ARs ñ The materials for the construction 

of ARs shall include, but not limited to the following: 

a. Concrete blocks or culverts 

b. Limestone or rocks 

A moratorium on the use of scrap tires and junk vehicles or sea crafts for ARs shall be 

observed pending completion of further studies by the DENR on their environmental impact. 

Other materials not included above are subject to prior approval by the DENR and DA- 

BFAR. 

SECTION 11. Management and Operation of ARs ñ The management and operation 

of the ARs shall be the primary responsibility of the cooperative/organization/association 

(permittee) who shall abide by all the terms and conditions of the permit including effective 

compliance to the following measures: 

a. Commercial fishing is prohibited within the area technically described in the AR and 200 

meters away from the boundary lines of the said permit. 

b. Subsistence fishing with the use of hook and line shall be allowed for members of the 

cooperative/organization/association who shall be bound by time and catch limitations 

and other restrictions that may be prescribed by the Association in coordination with the 

DENR and DA-BFAR. 

c. Subsistence fishing with the use of hook and line shall be allowed for members of the 

Association and resident fisherfolk non-members provided that certain restrictions shall 

be imposed by the Association. 

d. Sustenance fishing shall be allowed one (1) year after the establishment of the AR and 

only after a coordinated stock assessment finding conducted by the DA-BFAR in coordination 

with the DENR. 

e. The permittee shall submit a quarterly report to the Office of the Municipal/City Mayor, 

copy furnished the DA-BFAR and DENR, on the status of the AR, including volume of 

catch by species, composition and sizes and estimated market value thereof. 

f. The permittee shall assist the national and local government agencies concerned in the 

conservation, management and protection of both municipal and offshore fishery and 

aquatic resources. 

g. ARs shall be firmly anchored/secured for safety reasons. 

h. The ìcore zoneî covered by the AR permit shall be properly demarcated by buoys or other 

suitable materials. 

SECTION 12. Monitoring and Evaluation of ARs ñ The DA-BFAR and DENR Regional 

Offices, in close coordination with DILG and the Department of National Defense 

Regional Offices, shall:

1862 


a. Conduct an inventory of existing ARs in terms of number, location and status, including 

volume, catch statistics, species/composition/sizes and catch per unit effort (CPUE). 

b. Gather baseline data on initial recruitment, standing stock and other relevant scientific 

information and observations six (6) months after the installation of ARs. 

c. Evaluate annually the socio-economic benefits derived from and the ecological impact of 

ARs. 

d. Investigate recruitment movements from natural reefs to ARs or vice-versa and study 

trophic relationships in refuges or in feeding and breeding areas. 

SECTION 13. Transitory Provision ñ Persons, partnerships, associations or corporations 

are hereby given a grace period of ninety days (90) upon the effectivity of this Order 

to comply with the requirements hereof, otherwise, existing ARs shall be removed/demolished 

by the LGU concerned at the expense of the operator. 

SECTION 14. Amendment to these Guidelines ñ Amendments to these guidelines 

may be proposed by any of the agencies signatory to this Order. 

SECTION I 5. Repealing Clause - All Administrative Orders, Circulars, Memoranda 

and other Issuances inconsistent herewith are repealed accordingly. 

SECTION 16. Effectivity ñ This Order shall take effect fifteen (15) days after its publication 



(SGD.) EDGARDO J. ANGARA (SGD.) ANTONIO H. CERILLES 

Secretary, Department of Agriculture (DA) Secretary, DENR 

(SGD.) ALFREDO S. LIM (SGD.) ORLANDO S. MERCADO 

Secretary, Department of Interior and Secretary, Department of National 

Local Government (DILG) Defense (DND) 


óo0oó 

DENR Administrative Order No. 2000-82 

Integrated Air Quality Improvement Framework 

ñ Air Quality Control Action Plan 

Pursuant to Section s 7 and 8 of Republic Act No. 8749, otherwise known as the 

Philippine Clean Air Act of 1999, the attached Integrated Air Quality Improvement Framework 

ñ Air Quality Control Action Plan (Text available at ONAR, U.P. Law Center, Diliman, 

Quezon City) is hereby adopted. The same shall serve as the official blueprint with which all 

agencies must comply with to attain and maintain clean and healthy air.





Secretary 

Prepared and Recommended for Approval by: 

The Environmental Management Bureau and 

The Inter-Agency Technical Committee for the IRR of the Clean Air Act of 1999 


(SGD.) PETER ANTHONY A. ABAYA 

Director, EMB 

Chairman, Inter-Agency Technical Committee 

óo0oó 


Standard Costs and Fees for Various Services 

of the Mines and Geosciences Bureau 

Pursuant to Executive Order No. 197 dated 13 January 2000, the following fees and 

charges for services rendered by the Mines and Geosciences Bureau (MGB) are hereby 

revised and/or updated: 

FEES AND CHARGES 

(in Philippine Pesos, unless 

otherwise provided) 

1.0 MINING RIGHTS 

1.1 Application for/Approved Exploration Permit (EP), 

Mineral Agreement (MA), Financial or Technical 

Assistance Agreement (FTAA), Temporary Exploration 

Permit (TEP) and Special Mines Permit (SMP), 

including Mining Lease Contract (MLC): 

1.1.1 Filing Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00/Hectare but not 

less than 3,000.00/ 

Application 

1.1.2 Clearance Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00/Application 

1.1.3 Registration Fee for EP, MA, FTAA, TEP or SMP.. 1,000.00/Permit/Contract 

1.1.4 Occupation Fee (for EP, MA, FTAA, TEP or SMP 

including MLC) 

a. For areas within Mineral Reservation . . . . . 100.00/Hectare 

b. For Non-Mineral Reservation areas . . . . . . 50.00/Hectare

1864 


1.1.5 Conversion Fee 

a. Approved Contract/Permit (from MA to FTAA/ 

vice versa or EP to MA/FTAA) . . . . . . . . . . 100.00/Hectare 

b. Mining Application (from one form of mining 

right application to another, e.g., application 

for EP to MA) . . . . . . . . . . . . . . . . . . . . . . 5,000.00/conversion 

1.1.6 Transfer/Assignment Fee 

a. Approved Contract/Permit . . . . . . . . . . . . . 10.00/Hectare 

b. Application for EP, MA or FTAA . . . . . . . . . 5.00/Hectare 

1.1.7 Evaluation of Feasibility Study Report . . . . . . . . 10,000.00/Study Report 

1.1.8 Amendment of EP, MA or FTAA Application 

(except reduction in applied area) . . . . . . . . . . . 10,000.00/Application 

1.1.9 Request for Evaluation of EPEP . . . . . . . . . . . . . 5,000.00/EPEP 

1.1.10 Request for Certificate of Environmental Management 

and Community Relations Track Record . . . . . . 1,000.00/Certificate 

1.1.11 Application for Amendment of Contract (MA/FTAA)..10,000.00/Contract 

NOTE: Each of the above charges shall be subject to PD 1856, as amended ñ 20.00 

1.2 Application for/Approved Industrial Sand and Gravel and 

Other Mining Permits Under MGB Jurisdiction 

1.2.1 Filing Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000.00/Application 

1.2.2 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00/Permit 

1.2.3 Request for Evaluation of EPEP . . . . . . . . . . . . . 5,000.00/EPEP 

1.2.4 Clearance Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00/Application 

1.2.5 Renewal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00/Permit 


1.3 Application for Small-Scale Mining Permit 


PD 1856, as amended ñ 20.00 

1.4 Application for Mineral Processing Permit 

1.4.1 Filing Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000.00/Application 

1.4.2 Renewal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000.00/Permit 


1.5 Application for Ore Transport Permit 

1.5.1 Application Fee . . . . . . . . . . . . . . . . . . . . . . . . . 100.00/Application 

1.5.2 Verification Fee . . . . . . . . . . . . . . . . . . . . . . . . . 5,000.00/Verification 


1.6 Application for Accreditation of Traders, Dealers and 

Retailers in the Trading of Mineral Products/By-Products 


1.6.2 Renewal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500.00/Renewal



1.7 Registration of Miscellaneous Documents and Related Services 

1.7.1 Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . 200.00/Power of Attorney 

1.7.2 Other Forms of Assignment/Transfer . . . . . . . . . 1,000.00/Assignment or 

Transfer 

1.7.3 All Other Instruments Affecting Mining Rights .. . 1,000.00/Instrument 

1.7.4 Letter-Request for Certification . . . . . . . . . . . . . . 50.00/Certification 

1.7.5 Request for Certified True/Xerox Copy . . . . . . . . 40.00/Document plus 

5.00/Page 


1.8 Docketing Charges with the Panel of Arbitrators/Mines Adjudication Board 

1.8.1 For Filing Ordinary Protest, Adverse Claim, 

Opposition or any other Petitions . . . . . . . . . . . . 2,000.00/Protest, etc. 

1.8.2 For Filing Protest Coupled with Damages . . . . . . 10% of the total damage 

claimed shall be the 

basis for the docket fee 

1.8.3 For Filing Counter-Claim, Counter-Protest 

or Counter-Opposition . . . . . . . . . . . . . . . . . . . . . 2,000.00/Counter-claim, 

Counter-Protest, etc. 

1.8.4 For Filing Counter-Claim, Counter-Protest or 

Counter-Opposition coupled with Damages . . . .. 10% of the total damage 

claimed shall be the 

basis for the docket fee 

1.8.5 Intervenorís Fee . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000.00/Intervenor 

1.8.6 Appeal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000.00/Appeal 


1.9 Docketing Charges with MGB 

1.9.1 For Filing an Action with MGB Regional Office . . . 5,000.00/Application 

1.9.2 For Filing an Appeal . . . . . . . . . . . . . . . . . . . . . . .. 2,000.00/Appeal 


1.10 Application for Survey Order, Verification of Survey Returns 

and Field Verification Survey of Approved/Proposed Mining/ 

Contract/Permit Areas 

1.10.1 Application for Survey Order 

a. Processing Fee . . . . . . . . . . . . . . . . . . . . . . . 60.00/block or 81 

hectares plus 25.00 for 

the succeeding blocks or 

a fraction thereof 

P.D. 1856 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

1866 


b. Projection Fee . . . . . . . . . . . . . . . . . . . . . . . 120.00 for the first 100 

hectares, plus 25.00 for 

the succeeding 100 

hectares or a fraction 

thereof 

c. Filing Fee . . . . . . . . . . . . . . . . . . . . . . . . . . 120.00/Application 

P.D. 1856 . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00 

d. Surety Bond . . . . . . . . . . . . . . . . . . . . . . . . 10.00/hectare but not 

less than 500.00 

1.10.2 Verification of Survey Returns 

a. Application Fee . . . . . . . . . . . . . . . . . . . . . 300.00/Application 

b. Processing of prescribed original and 

duplicate Computation Sheets of not 

more than 15 stations per sheet . . . . . . . . 6.00/Set 

c. Processing of resubmitted (new set) 

original and duplicate Computation Sheets 

(with correction) of not more than 15 stations 

per sheet, and/or additional survey returns 

with fieldnotes and/or computation . . . . . . 6.00 New Set provided 

that the minimum charge 

shall be 350.00 for the 

first resubmittal, plus 

400.00 for every subsequent 

resubmittal. 

1.10.3 Perimeter Boundary Survey 

a. Application for/Approved MA/FTAA . . . . . . 30,000.00/Line Km. 

b. Application for/Approved Small Scale 

Mining Permit/Contract . . . . . . . . . . . . . . . 3,000.00/Hectare for the 

first 5 hectares, plus 

1,000.00 for the 

succeeding hectares or 

fraction thereof 

c. Application for/Approved Other Mining 

Permits (e.g. Sand and Gravel Permits) . . 3,000.00/Hectare 

1.10.4 Tie Line Survey . . . . . . . . . . . . . . . . . . . . . . . . . 15,000.00/Kilometer 

In addition to the above charges, the applicant or interested party shall pay for the 

transportation of MGB personnel from official station to the area and return and other 

incidental expenses incurred. The precision of survey control shall be in accordance with 

the Land Surveys Manual of the Philippines. 

1.11 Evaluation of Mining Projects of Companies Applying 

for Registration/Licensing of Securities as referred by 

the Securities and Exchange Commission . . . . . . . . . . . . 2,000.00/Application 

1.12 Application for Explosives and Other Permits 

1.12.1 License to Possess Explosives ñ Purchaserís. . . 300.00/Application 

1.12.2 Amendment to License to Possess Explosives . . 300.00/Application 

1.12.3 Purchase/Transfer/Import Explosives . . . . . . . . . 125.00/Application


1.12.4 License to Possess Explosives ñ Foremanís . . . . 300.00/Application 

1.12.5 Temporary Safety Inspectorís Permit 

(including renewal) . . . . . . . . . . . . . . . . . . . . . . . . 300.00/Application 

1.12.6 Temporary Safety Engineerís Permit 

(including renewal) . . . . . . . . . . . . . . . . . . . . . . . 300.00/Application 

1.12.7 Permanent Safety Inspectorís Permit 

(including renewal) . . . . . . . . . . . . . . . . . . . . . . . 300.00/Application 

1.12.8 Permanent Safety Engineerís Permit 

(including renewal) . . . . . . . . . . . . . . . . . . . . . .. . 300.00/Application 

1.12.9 Alienís Local Employment . . . . . . . . . . . . . . . . . . 2,500.00/Application 

1.12.10 Electrical Wiring Installation . . . . . . . . . . . . . . . . 150.00/Application 

1.12.11 Machinery Installation . . . . . . . . . . . . . . . . . . . . . 150.00/Application 

1.12.12 Mine, Quarry and Mill Permits . . . . . . . . . . . . . . . 180.00/Application 

2.0. GEOLOGICAL/MINING INVESTIGATION AND VERIFICATION AND OTHER RE- 

LATED SERVICES 

2.1 Geological, Geochemical or Geophysical Investigation ... 2,000.00/man/day 

provided that the minimum 

charge is 6,000.00 

2.2 Verification/Evaluation of Applied or Mining Contract/ 

Permit Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00/man/day 



2.3 Verification/Field Investigation of Mining Conflicts or 

Other Boundary Survey . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00/man/day 



2.4 Verification of Ore Stockpile and Umpiring of Ore 

Shipment . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00/man/day 



2.5 Verification/Field Investigation of Mineral Processing 

Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00/man/day 



2.6 Verification of Explosives Magazines and Blasting 

Schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00/man/day 



In addition to the above charges, the applicant or interested party shall pay for the 

transportation of bureau personnel from official station to the area and return and other 

incidental expenses incurred therein.

1868 


2.7 Rock Mechanics Laboratory Services (subject to availability of equipment) 

2.7.1 Unconfined Compressive (rock ore) Test 

a. Without Strain Measurements . . . . . . . . . . . . 200.00 

b. With Strain Measurements . . . . . . . . . . . . . . 400.00 

2.7.2 Discontinuity Shear Strength Test (Rock Cores 

or Chunks of Size NX or 6 cm. X 6 cm.) . . . . . . . . 1,000.00 

2.7.3 Triaxial Test 

a. NX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 

b. AX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 

2.7.4 Tensile (Brazilian) Test . . . . . . . . . . . . . . . . . . . . 200.00 

2.7.5 Cutting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00/sq. diameter 

3.0 LEASE OF DRILLING EQUIPMENT 

3.1 Monthly Rental Fee 

3.1.1 Drilling Machine 

a. X-Ray Drill . . . . . . . . . . . . . . . . . . . . . . . . . . 5,040.00 

b. Longyear Model ì24î Wireline Drill . . . . . . . 10,800.00 

c. Longyear Model ì24î Conventional Drill . . . 8,640.00 

d. Longyear Model ì34î Wireline Drill . . . . . . . 13,680.00 

e. Longyear Model ì34î Conventional Drill . . . 11,520.00 

f. Longyear Model ì38î Wireline Drill with 

Automatic Chuck . . . . . . . . . . . . . . . . . . . . 15,120.00 

g. Longyear Model ì44î Wireline Drill with 

Automatic Chuck . . . . . . . . . . . . . . . . . . . . 17,280.00 

3.1.2 Drill Pumps 

a. Longyear Model 315 Pump . . . . . . . . . . . . 1,560.00 

b. Longyear Model 535 Pump . . . . . . . . . . . . 4,800.00 

c. Longyear Model 520 Pump . . . . . . . . . . . . 4,200.00 

3.1.3 Drill Rods 

a. One (1) pc. AQ Rod, 10 ft. . . . . . . . . . . . . . 120.00 

b. One (1) pc. BQ Rod, 10 ft. . . . . . . . . . . . . . 156.00 

c. One (1) pc. NQ Rod, 10 ft. . . . . . . . . . . . . . 180.00 

d. One (1) pc. HQ Rod, 10 ft. . . . . . . . . . . . . . 240.00 

e. One (1) pc. AW Rod, 10 ft. . . . . . . . . . . . . . 120.00 

f. One (1) pc. BW Rod, 10 ft. . . . . . . . . . . . . . 156.00 

g. One (1) pc. NW Rod, 10 ft. . . . . . . . . . . . . . 180.00 

h. One (1) pc. HW Rod, 10 ft. . . . . . . . . . . . . . 240.00 

i. One (1) pc. EWL Rod, 10 ft. 

( smaller than AQ) . . . . . . . . . . . . . . . . . . . 96.00 

j. One (1) pc. XRT Rod, 10 ft. 

(smaller than EWL) . . . . . . . . . . . . . . . . . . 72.00 

3.1.4 Casings 

a. One (1) pc. AW Casing, 10 ft. . . . . . . . . . . 120.00 

b. One (1) pc. BW Casing, 10 ft. . . . . . . . . . . 156.00


3.2 Bond 

c. One (1) pc. NW Casing, 10 ft. . . . . . . . . . . 180.00 

d. One (1) pc. HW Casing, 10 ft. . . . . . . . . . . 240.00 

e. One (1) pc. EWL Casing, 10 ft. . . . . . . . . . 96.00 

f. One (1) pc. RW Casing, 10 ft. . . . . . . . . . . 72.00 

3.1.5 Core Barrels 

a. One (1) pc. AQ Core Barrel, 10 ft. . . . . . . . 1,000.00 

b. One (1) pc. 5BQ Core Barrel, 10 ft. . . . . . . 2,000.00 

c. One (1) pc. NQ Core Barrel, 10 ft. . . . . . . . 3,500.00 

d. One (1) pc. HQ Core Barrel . . . . . . . . . . . . 4,000.00 

3.1.6 Miscellaneous Accessories 

a. One (1) set Tripod Sheave Wheel, 24îÿ 

with clevis and bolt . . . . . . . . . . . . . . . . . . . 1,200.00 

b. One (1) set Tripod Sheave Wheel, 18îÿ 

with clevis and bolt . . . . . . . . . . . . . . . . . . . 960.00 

c. One (1) pc. Heavy Duty Water Swivel Assy. 

with lifting hail . . . . . . . . . . . . . . . . . . . . . . . 600.00 

d. One (1) pc. Lifting Plug with Rod Box 

Adapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240.00 

e. One (1) pc. Snatch Block, 6îÿ . . . . . . . . . . 120.00 

f. One (1) set BX Casing Clamp . . . . . . . . . . 120.00 

g. One (1) set NX Casing Clamp . . . . . . . . . . 120.00 

g. One (1) set HQ Safety Foot Clamp Assy. 

complete with clam jaws . . . . . . . . . . . . . . 600.00 

3.2.1 For X-Ray Drill, Pump and Accessories . . . . . . . 480,000.00 

3.2.2 For Longyear Model ì24î Conventional Drill, 

Pump and Accessories . . . . . . . . . . . . . . . . . . . . 600,000.00 

3.2.3 For Longyear Model ì24î Wireline Drill, Pump 

and Accessories . . . . . . . . . . . . . . . . . . . . . . . . . 660,000.00 

3.2.4 For Longyear Model ì34î Conventional Drill, 

Pump and Accessories . . . . . . . . . . . . . . . . . . . . 900,000.00 


and Accessories . . . . . . . . . . . . . . . . . . . . . . . . . 960,000.00 

3.2.6 For Longyear Model ì38î Wireline Drill with 

Automatic Chuck, Pump and Accessories . . . . . . 1,140,000.00 


Automatic Chuck, Pump and Accessories . . . . . . 1,800,000.00 

3.2.8 For Additional Longyear 535 Pump . . . . . . . . . . . 120,000.00 

3.2.9 For Additional Longyear 520 RQ Pump . . . . . . . . 108,000.00 


3.3 Cash Deposits 

3.3.1 For X-Ray Drill, Pump and Accessories . . . . . . . . 24,000.00 

3.3.2 For Longyear Model ì24î Conventional Drill, Pump 

and Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000.00

1870 



and Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000.00 

3.3.4 For Longyear Model ì34î Conventional Drill, Pump 

and Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000.00 

3.3.5 For Longyear Model ì34î Wireline Drill, Pump and 

Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000.00 


Automatic Chuck, Pump and Accessories . . . . . . 72,000.00 


Automatic Chuck, Pump and Accessories . . . . . . . 84,000.00 

3.3.8 For Additional Longyear 535 RQ Pump . . . . . . . . . 12,000.00 

3.3.9 For Additional Longyear 520 RQ Pump . . . . . . . . . 9,600.00 


3.3.11 For Demobilization of Drilling Equipment and 

Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000.00 

4.0 PETROLOGICAL, MINERALOGICAL, GEOCHRONOLOGICAL AND OTHER 

RELATED SERVICES 

4.1 Sample Preparation and Gemology Unit 

Fee per sample 

4.1.1 Rock cutting and polishing 

a. Soft rocks ( as soft as or softer than marble), per sq. dm. 

or a fraction thereof 

> cutting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.00 

> polishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

b. Hard rocks (harder than marble), per sq. dm. or a fraction thereof 

> cutting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00 

> polishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

4.1.2 Thin section preparation 

a. unmounted rocks and minerals . . . . . . . . . . . . . 350.00 

b. mounted rock and mineral grains . . . . . . . . . . . . 450.00 

c. mounted cutting/ditch samples . . . . . . . . . . . . . . 450.00 

4.1.3 Polished section preparation 

a. unmounted rocks and minerals . . . . . . . . . . . . . . 350.00 

b. mounted rocks and minerals . . . . . . . . . . . . . . . . 400.00 

4.1.4 Polished-thin section preparation 

a. unmounted rocks and minerals . . . . . . . . . . . . . . 450.00 

b. mounted rocks and mineral grains . . . . . . . . . . . 550.00 

c. mounted cutting/ditch samples . . . . . . . . . . . . . . 550.00 

4.1.5 Doubly polished wafer preparation for fluid 

inclusion analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550.00 

4.1.6 Sample preparation (drying, crushing, grinding,sieving 

and splitting) of geological materials for sedimentological/ 

mineralogical analysis, per kilogram or fraction thereof 

a. oven drying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00 

b. crushing using jaw crusher . . . . . . . . . . . . . . . . . . 50.00 

c. grinding using vibrating disc mill . . . . . . . . . . . . . . 80.00


d. sieving 

d.1 coarse (14-150 mesh) 

> dry sample . . . . . . . . . . . . . . . . . . . . . . 50.00 

> wet sample . . . . . . . . . . . . . . . . . . . . . 60.00 

d.2 fines (170-400 mesh) 

> dry sample . . . . . . . . . . . . . . . . . . . . . . 50.00 

> wet sample . . . . . . . . . . . . . . . . . . . . . . 50.00 

d.3 splitting using Jones riffle splitter . . . . . . . 30.00 

4.1.7 Sample preparation (drying, crushing and grinding up to 

ñ200 mesh to ñ300 mesh) of geological materials for 

x-ray bulk analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.00 

4.1.8 Sample preparation (drying, crushing and grinding 

sieving and splitting) for chemical analysis . . . . . . . . . . . 150.00 

4.1.9 Sample preparation for palcomagnetic analysis 

a. mounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

b. coring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

c. cutting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

d. grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

4.1.10 Sample preparation for palcontological analysis 

Microfossil Analysis 

a. thin section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

b. washing, per 200 grams . . . . . . . . . . . . . . . . . . . . 200.00 

c. polished block (3 x 2 x 2 cm.) . . . . . . . . . . . . . . . . 300.00 

d. chemical treatment, washing and smear slide 

preparation for radiolarian analysis . . . . . . . . . . . . 500.00 

Macrofossil Analysis 

e. cleaning (per sample) . . . . . . . . . . . . . . . . . . . . . . . 100.00 

f. repair (per specimen) . . . . . . . . . . . . . . . . . . . . . . . 20.00 

g. fossil reconstruction for broken specimen, 

moulds and casts (per specimen) . . . . . . . . . . . . . . 40.00 

4.1.11 Gemstone preparation, per piece 

a. Preparation of cabochon with oval, round, triangle, 

square, pear and four-sided forms 

a.1 Mohsí hardness up to 7 

> 7 to 18 mm. diameter . . . . . . . . . . . . . . . . 150.00 

> 19 to 32 mm. diameter . . . . . . . . . . . . . . . 200.00 

a.2 Mohsí hardness between 7 and 9 



b. Preparation of cabochon with heart, clover, star, cross, 

hexagon, octagon and more than four-sided forms 

b.1 Mohsí hardness up to 7 



b.2 Mohís hardness between 7 and 9 


> 19 to 32 mm. diameter . . . . . . . . . . . . . . . 350.00

1872 


c. Preparation of other shapes and forms such as 

teardrop, half-moon, sharkís tooth, sphere, cone, 

cylinder, etc. for materials with Mohsí hardness up to 7 

> 7 to 18 mm. diameter . . . . . . . . . . . . . . . . . . . . . . 300.00 

> 19 to 32 mm. diameter . . . . . . . . . . . . . . . . . . . . . 350.00 

d. Faceting (64 index gear) 

Standard brilliant cut (round) 

> with Mohsí hardness up to 7 . . .. . . . . . . . . . . . . 350.00 

> with Mohsí hardness bet. 7 & 9 . . . . . . . . . . . . . 400.00 

Brilliant oval cut, emerald cut 

> with Mohsí hardness up to 7 . . ... . . . . . . . . . . . 300.00 

> with Mohsí hardness bet. 7 & 9 . . . . . . . . . . . . . 500.00 

e. Gemstone drilling 

> first 10 mm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00 

> per 1 mm. or a fraction thereof, in excess 

of 10 mm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00 

f. Preparation of tumbled stones, per kg. 

(minimum of three kg.) . . . . . . . . . . . . . . . . . . . . . . . 700.00 

4.2 Megascopic/Microchemical Testing Laboratory Unit 

4.2.1 Megascopic description of minerals including mineral 

name, color, streak, form, hardness and uses/ 

recommendation for further analysis . . . . . . . . . . . . . . . . . 250.00 

4.2.2 Megascopic description of rocks including mineral 

composition, texture, rock name and uses/ 

recommendation for further analysis . . . . . . . . . . . . . . . . . 250.00 

4.2.3 Qualitative microchemical test, per element . . . . . . . . . . . 150.00 

4.2.4 Qualitative chemical stain test, per mineral . . . . . . . . . . . . 150.00 

4.2.5 Provision of rock and mineral collection with 

identification, per set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120.00 

4.3 Sedimentology/Clay Mineralogy Laboratory Unit 

4.3.1 Sample preparation for grain size analysis 

> dilution and chemical treatment with sodium 

hexametaphosphate . . . . . . . . . . . . . . . . . . . . . . . 500.00 

> pipetting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00 

> determination of weight loss . . . . . . . . . . . . . . . . . 100.00 

4.3.2 Mineral separation per 100 gram sample or a fraction thereof 

> using hand magnet . . . . . . . . . . . . . . . . . . . . . . . . 150.00 

> using isodynamic magnetic separator . . . . . . . . . 500.00 

> using heavy liquid medium, per mineral . . . . . . . . 1,000.00 

4.3.3 Grain size analysis 

> wet sieving method of quantitative determination 

of particle size distribution of soils/sediments down 

to fine sand size . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

> hydrometer method of quantitative determination 

of particle size distribution of soil/sediment from 

coarse sand size to clay size . . . . . . . . . . . . . . . 400.00


4.3.4 Identification and description of sediments/detrital grains, 

with qualitatively estimated abundances 

> as received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500.00 

> grain mounted polished/thin section . . . . . . . . . . . 1,000.00 

4.3.5 Identification and description of sediments/detrital 

grains, with quantitatively estimated abundances 

by point counting, per constituent grain 

> as received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500.00 

> grain mounted polished/thin section . . . . . . . . . . . . 1,500.00 

4.3.6 Permeability Test for Sediments and Soils 

(minimum of five trials) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200.00 

4.3.7 Proctor Compaction Test for Sediments and Soils 

(minimum of five trials) . . . . . . . . . . . . . . . . . . . . . . . . . . 900.00 

4.3.8 Differential Thermal Analysis (DTA) . . . . . . . . . . . . . . . . 700.00 

4.3.9 Determination of Liquid Limit by Cone Penetrometer Method 

> for soil samples . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

> for clay samples (unactivated) . . . . . . . . . . . . . . . . 600.00 

> for clay samples (activated 1-6% Na 2 CO 3 ) . . . . . . 3,000.00 

4.3.10 Determination of Plastic Limit 

> for soil samples . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

> for clay samples (unactivated) . . . . . . . . . . . . . . . 500.00 

> for clay samples (activated) . . . . . . . . . . . . . . . . . 2,500.00 

4.3.11 Determination of Plasticity Index 

> for soil samples . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00 

> for clay samples (unactivated) . . . . . . . . . . . . . . . 1,000.00 

> for clay samples (activated) . . . . . . . . . . . . . . . . . 4,500.00 

4.3.12 Pyrometric Cone Equivalent (PCE) Test . . . . . . . . . . . . 400.00 

4.3.13 Swelling Test 

> unactivated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00 

> activated with 1-6% sodium carbonate . . . . . . . . . 250.00 

4.3.14 Oil Bleaching Test (inclusive of oil) 

> unactivated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 

> activated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00 

4.4 Petrography/Fluid Inclusion Laboratory Unit 

4.4.1 Thin section analysis 

a. Standard petrographic description including rock name, 

textures, qualitatively estimated mineral abundances 

and interpretation of alteration assemblages and/or 

paragenesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 

b. Mineral identification and rock name only, with 

qualitatively estimated mineral abundances . . . . . . . . . . . 700.00 

c. Mineral identification only, with quantitatively estimated 

mineral abundances by point counting, per mineral . . . . . . 900.00 

d. Grain size determination only, per mineral . . . . . . . . . . . . . 300.00 

4.4.2 Polished section analysis

1874 


a. Standard petrographic description of ore minerals including 

textures, qualitatively estimated mineral abundances 

and interpretation of paragenetic sequence . . . . . . . . . . . . . 1,000.00 

b. Mineral identification only, with qualitatively estimated 

mineral abundances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900.00 

c. Mineral identification only, with quantitatively estimated 

mineral abundances by point counting, per mineral . . . . . . 300.00 

d. Grain size determination only, per mineral . . . . . . . . . . . . . 300.00 

4.5 Fluid Inclusion Laboratory Unit 

4.5.1 Inspection of samples for presence of fluid inclusions . . . 100.00 

4.5.2 Petrographic description of fluid inclusions, including 

abundance, size, shape, nature of inclusion, etc. . . . . . . . 250.00 

4.5.3 Measurement of homogenization temperatures of as 

many inclusions as practical within the sample . . . . . . . . . 1,500.00 

4.5.4 Measurement of freezing temperatures of as many 

inclusions as practical within the sample (exclusive 

of cost of liquid nitrogen) for salinity determination . . . . . . . 2,500.00 

4.5.5 Measurement of salt dissolution temperatures of as 

many inclusions as practical within the sample 

for salinity determination . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500.00 

4.5.6 Photomicrography (exclusive of costs of film, 

developing and printing), per exposure . . . . . . . . . . . . . . . 50.00 

4.6 X-Ray Laboratory Unit 

4.6.1 X-Ray diffraction (XRD) analysis 

a. Sample preparation for orientation of clay minerals 

> air drying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00 

> heating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00 

> glycolation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00 

b. XRD scan (2 0 - 41 0 ) and qualitative identification 

> 2 0 2ÿ to 41 0 2ÿ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 

> in excess of 41 0 2ÿ, per degree . . . . . . . . . . . . . . 20.00 

4.6.2 X-Ray flourescence (XRF) spectrometric analysis 

a. Sample preparation 

> briquetting of powdered sample . . . . . . . . . . . . . . . 50.00 

> glass bead/fused sample preparation . . . . . . . . . . 150.00 

b. Qualitative XRF analysis 

> using LIF analyzing crystal (scan 10 0 - 116 0 ) . . . . . 1,500.00 

> using EDDT analyzing crystal (scan 10 0 ñ 146 0 ) . . 2,000.00 

c. Quantitative XRF analysis, per element . . . . . . . . . . . (charge varies 

according to cost 

of standards) 

4.6.3 Electron Probe Microanalysis (EPMA) 

a. Sample preparation, per section 

> carbon coating . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00


> ion coating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (charge varies 

according to cost 

of element to be 

used for coating 

and surface area 

to be coated) 

b. Electron Microscopy/Photography 

> high magnification aeroview, back scattered electron 

image, secondary electron beam image, characteristic 

x-ray, per photograph, per element . . . . . . . . . . . 2,000.00 

> per additional photograph of same element . . . . . 500.00 

c. Line profile analysis 

> per 10 mm line, per element . . . . . . . . . . . . . . . . . 2,500.00 

d. Qualitative point analysis 

> per point, per element . . . . . . . . . . . . . . . . . . . . . . 2,000.00 

e. Quantitative point analysis 

> per point, per element . . . . . . . . . . . . . . . . . . . . . . 2,500.00 

4.7 Isotope Laboratory Unit 

4.7.1 14c age determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . (charges subject 

to the discretion 

of the Director) 

4.7.2 K-Ar age determination . . . . . . . . . . . . . . . . . . . . . . . . . . . (charges subject 

to the discretion 

of the Director) 

4.8 Paleomagnetic Laboratory Unit 

4.8.1 Paleomagnetic analysis 

a. Demagnetizing (thermal alternating filed) . . . . . . . . 450.00 

b. Magnetic declination . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

c. Magnetic inclination . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

d. Magnetic moment . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

e. Magnetic susceptibility . . . . . . . . . . . . . . . . . . . . . . 300.00 

f. North, east and vertical component . . . . . . . . . . . . 250.00 

g. Bedding correction . . . . . . . . . . . . . . . . . . . . . . . . . 250.00 

h. Sample orientation correction . . . . . . . . . . . . . . . . 250.00 

i. Virtual geomagnetic pole . . . . . . . . . . . . . . . . . . . . 350.00 

4.9 Paleontology Laboratory Unit 

4.9.1 Microfossil analysis (Small & Large Foraminefera) 

a. Standard paleontological analysis of sedimentary 

rock samples, including picking/isolation of fossils, 

faunal identification and listing, and age and 

paleoecology determination . . . . . . . . . . . . . . . . . 700.00 

b. Quantitative paleontological analysis, Small 

foraminefera (planktic and benthic)

1876 


b.1 Sample preparation (per sample) 

crushing, washing and drying 

- loose, friable sample . . . . . . . . . . 150.00 

- semi-indurated, indurated sample 

chemical treatment with sodium 

hexametaphosphate, hydrogen 

peroxide and/or borate . . . . . . . . . 500.00 

sieving 

- fine fraction (45 um) . . . . . . . . . . 50.00 

- coarse fraction (250 um & 

150 um) . . . . . . . . . . . . . . 50.00 

splitting by aliquot method using Otto 

microsplitter (per sample) . . . . . . . . . .. 50.00 

b.2 Quantitative analysis (per sample) 

picking (approximately 300 specimens)/ 

isolation of samples . . . . . . . . . . . . . . . 200.00 

taxonomic/faunal identification 

- genus level . . . . . . . . . . . . . . . . . 50.00 

- species level . . . . . . . . . . . . . . . . 75.00 

b.3 Statistical analysis (per sample) 

Foraminefera 

- small foraminefera (planktic & benthic) 

- species richness . . . . . . . . . . . . . . 50.00 

- species diversity & equitability . . . . 50.00 

- species dissolution susceptibility . . 50.00 

b.4 Systematic description (per species) . . . . 50.00 

b.5 Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00 

b.6 Paleoecologic Interpretation . . . . . . . . . . . 100.00 

c. Photomicrography (exclusive of cost of film, developing and printing) 

c.1 Thin section, per exposure . . . . . . . . . . . . 50.00 

c.2 Whole specimen, three exposures for 

three positions . . . . . . . . . . . . . . . . . . . . . . 200.00 

4.9.2 Macrofossil analysis 

a. Standard molluscan and other macrofossil analysis, 

including cleaning, faunal, identification, age 

determination and paleoecologic interpretation . . . . 700.00 

b. Taxonomic identification and description . . . . . . . . . 150.00 

c. Photography internal, external and side views 

(excluding cost of film, developing and printing) . . . . 75.00 

d. Developing and printing . . . . . . . . . . . . . . . . . . . . . . . 150.00 

e. Detailed paleoecologic and paleoenvironmental 

reconstructions based on morphometric variation, 

faunal associations/assemblages, habitat, sediment 

preferences, trophic grouping, diversity and 

bathymetric gradient (per sample) . . . . . . . . . . . . . . . 400.00


4.10 Petrochemistry Laboratory Unit 

4.10.1 Geochemical Exploration Laboratory Unit ñ Chemical Analysis of rocks, 

minerals, soils, stream sediments and siminal materials 

a. Minor and trace element analysis, after partial decomposition 

a.1 Flame Atomic Absorption Spectrometry 

using aqua regia, hydrochloric acid and nitric 

acid digestion methods 

Element Detection Limit (ppm) 

Ag 1 ) 80.00 

Cd 1 ) (first element) 

Co 3 ) 30.00 

Cu 2 ) (each additional 

Fe 50 ) element) 

Mn 50 ) 

Ni 3 ) 

Pb 10 ) 

Zn 2 ) 

Mo 2 - 90.00 

Mo (w/ organic 

extraction) 0.4 - 200.00 

using hydride and vapor generation method 


As 1 - 165.00 

Bi 0.1 - 165.00 

Sb 0.1 - 165.00 

Hg 0.1 - 165.00 

using acidic fusion method 


Cr 100 ) 110.00 

Li 1 ) (first element) 

Ni 10 ) 90.00 

(each additional element) 

using NH41 fusion method 


Sn 1 - 270.00 

using cold extraction method 


Cu 20 ) 80.00 

Pb 40 ) (first element)

1878 


Zn 20 ) 55.00 

(each additional element) 

a.2 Graphite furnace atomic absorption spectrometry 

using organic extraction method 


Ag 0.1 ) 540.00 

Cd 0.1 ) (first element) 

Se 0.2 ) 1,080.00 

Te 0.1 ) (all five elements) 

Tl 0.1 ) 

a.3 Calorimetry, using dithiol method 


W 4 - 270.00 

a.4 Major, minor and trace element analysis, after total decomposition 

(whole rock analysis), Flame Atomic Absorption Spectrometry 

complete silicate analysis 

Oxide 

SiO 2 - 165.00 

Al 2 O 3 - 165.00 

TiO 2 - 165.00 

Fe 2 O 3 T - 165.00 

MnO - 165.00 

MgO - 165.00 

CaO - 165.00 

Na 2 O - 165.00 

K 2 O - 165.00 

FeO - 165.00 

P 2 O 5 - 190.00 

LOI - 60.00 

H 2 O - 60.00 

H 2 O+ - 142.00 

All of the above except FeO 

and H 2 O+ - 1,320.00 

minor and trace element analysis 

ñ using hydroflouric acid and perchloric acid digestion methods 


Ag 1 - 250.00 

Be 1 - 250.00 

Cd 10 - 250.00


Co 5 - 250.00 

Cr 5 - 250.00 

Cu 2 - 250.00 

Li 1 - 250.00 

Ni 10 - 250.00 

Mo 10 - 250.00 

Pb 10 - 250.00 

Rb 10 - 250.00 

Zn 2 - 250.00 

Ba 25 - 250.00 

Sr 20 - 250.00 

V 10 - 250.00 

- using hydride and vapor generation method 


As 1 - 250.00 

Be 0.1 - 250.00 

Sb 0.1 - 250.00 

Hg 0.1 - 250.00 

- using MlBK extraction method 


Au 0.02 - 350.00 

Ga 0.02 - 350.00 

Pt (qualitative) - 400.00 

a.5 Graphite Furnace Atomic Absorption Spectrometry 

using organic extraction method 


Au 0.001 - 500.00 

Pd 0.002 - 500.00 

Te 0.1 - 500.00 

Tl 0.1 - 500.00 

Se 0.2 - 500.00 

4.10.2 Water Quality Laboratory Unit Chemical analysis of ground and surface water 

a. major cation and anion analysis 

a.1 Flame atomic absorption spectrometry 

Ion 

Na - 180.00 

K - 180.00 

Mg - 180.00 

Ca - 180.00 

Si - 180.00

1880 


a.2 Wet chemical methods 

Ion 

-2 SO4 -1 HCO3 Cl 

- 

- 

180.00 

180.00 

- - 180.00 

a.3 Ion selective electrode method 

Ion 

F - - 200.00 

I - - 200.00 

CN - (total, after distillation) - 910.00 

CN - (toxic or free CN)- 400.00 

b. Spectrophotometry 

Ion 

-1 NO3 -2 

- 

- 

200.00 

200.00 

HPO 4 

c. Water Property Determination 

Parameter 

pH - 100.00 

Total dissolved solids - 150.00 

Total hardness - 200.00 

Total alkalinity - 200.00 

Total acidity - 200.00 

Turbidity (NTU) - 200.00 

Total Siltation/Suspended slids - 150.00 

d. Trace element analysis using Atomic Absorption Spectrophotometry 

Element Detection Limit (mg/L) 

Ag 0.05 - 160.00 

Ag 0.002 - 200.00 

Ag 0.0002 - 340.00 

As 0.005 - 260.00 

Al 1.0 - 180.00 

Au 0.005 - 305.00 

Ba 1.0 - 160.00 

Be 0.02 - 160.00 

Bi - 260.00 

Cd 0.02 - 160.00 

Cd 0.002 - 200.00 

Cd 0.0002 - 340.00 

Co 0.05 - 160.00 

Cr 0.05 - 200.00 

Cu 0.02 - 160.00 

Fe 0.05 - 160.00 

Hg 0.0001 - 260.00 

Li 0.01 - 160.00 

Mn 0.03 - 160.00


Mo 10.0 - 180.00 

Mo 0.01 - 340.00 

Ni 0.05 - 160.00 

Pb 0.2 - 160.00 

Pb 0.005 - 200.00 

Pb 0.0005 - 340.00 

Rb 5.0 - 160.00 

Se - 340.00 

Sb - 260.00 

Sr - 160.00 

Te - 340.00 

V 1.0 - 180.00 

Zn 0.1 - 160.00 

Discount rates: 

15 elements/sample 10% 



5.0 FIRE ASSAYS, METALLURGICAL TEST AND CHEMICAL ANALYSIS 

5.1 Fire or Wet Assay of Rocks, Ores, Sands or Concentrates, Bullions, Alloys Including 

Liquids or Solutions 

5.1.1 Fire-Assays ñ Ore samples submitted for fire assays should weigh at least 

one (1) kilogram. Bullion drillings in excess of three (3) grams shall be re 

turned to the owner upon request. 

a. Gold or silver in ores, sands or concentrates, 

per sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265.00 

b. Gold & Silver in ores, sands or concentrates, 

per sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 

c. Fineness determination for gold, in bullion or alloys, 

per sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540.00 

d. Fineness determination for silver, in bullion or alloys, 

per sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360.00 

e. Fineness determination for gold and silver in bullions, 

per sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660.00 

f. Certification of weight of gold or silver bullions . . . . . . . . . 90.00 

5.1.2 Wet Assays (Per element submit at least one [1] kilo sample) 

a. Aluminum - 110.00 

b. Antimony - 120.00 

c. Barium - 120.00 

d. Bismuth - 120.00 

e. Calcium - 110.00 

f. Available Lime - 120.00 

g. Chlorine (as Cl-) - 120.00 

h. Chromium - 450.00

1882 


i. Cobalt - 120.00 

j. Copper - 110.00 

k. Iron (Total) - 110.00 

l. Iron (Metallic, Fe 0 ) - 150.00 

m. Iron (Ferrous, Fe++) - 150.00 

n. Iron (Ferric, Fe+++) - 250.00 

o. Lead - 120.00 

p. Magnesium - 110.00 

q. Manganese - 110.00 

r. Molybdenum - 120.00 

s. Nickel - 110.00 

t. Phosphorous - 120.00 

P 2 O 5 , water soluble - 120.00 

P 2 O 5 , Citrate soluble - 120.00 

u. Potassium - 100.00 (AA) 

v. Silica - 120.00 

Free Silica - 120.00 

Insolubles - 80.00 

w. Sodium - 100.00 (AA) 

x. Sulfur - 110.00 

y. Tin - 120.00 

z. Titanium - 110.00 

aa. Zinc - 110.00 

5.1.3 Specific Gravity 

a. True - 80.00 

b. Apparent - 50.00 

c. Bulk Density - 50.00 

5.1.4 Moisture, oven dried (105 0 ) - 60.00 

5.1.5 Moisture, as received only - 100.00 

5.1.6 Combined H 2 O - 90.00 

5.1.7 Loss of Ignition - 60.00 

5.1.8 Determination by Atomic Absorption 

Spectrophotometry and Flame 

Photometry of copper, iron, lead, 

manganese, sodium, potassium, 

zinc, per element - 100.00 

5.2 Metallurgical Tests on Ores, Minerals, Mill or Industrial Plant By-Products, etc. 

(Note: A maximum of fifty [50] kilograms may be accepted for testing) 

5.2.1 Sample Preparation 

a. Crushing 

a.1 First 5-kg sample - 120.00 

a.2 For each additional 1 kg. - 10.00 

b. Grinding 

b.1 First 5-kg. Sample - 180.00 

b.2 For each additional 1 kg. - 15.00


5.2.2 Particle Size Determination (using sieves) 

a. Dry sample, coarse (coarser than 

100-mesh) per fraction, per kilo ñ 25.00 

b. Dry sample, fine (150-mesh to 400 

mesh) per fraction, per kilo ñ 40.00 

c. Wet sample, coarse (coarser than 

100 mesh) per fraction, per kilo - 35.00 

d. Wet sample, fine (150 to 400 mesh) 

per fraction, per kilo - 50.00 

5.2.3 Classification Test: 

a. Air Classification, per test - 145.00 

b. Hydroclassification, per test - 205.00 

c. Sedimentation/Elutriation/Scrubbing 

per test - 80.00 

d. Sedimentation/Elutriation/Scrubbing 

per test (with use of chemicals) - 100.00 

5.2.4 Gravity Concentration Test 

a. Heavy Media Separation, 

per specific gravity, per test - 220.00 

b. Jigging, per test - 205.00 

c. Tabling, per test - 205.00 

5.2.5 Flotation 

a. Bulk Flotation, per test - 240.00 

b. Differential Flotation, per test - 420.00 

5.2.6 Magnetic Separation 

a. Dry, per test - 120.00 

b. Wet, per test - 180.00 

5.2.7 Leaching 

a. Cyanidation, per test - 840.00 

b. Percolation Leaching, per test - 540.00 

c. Acid Curing/Agitation Leaching, 

per test - 360.00 

d. Leaching-Precipitation-Flotation, 

per test - 720.00 

5.2.8 Amalgamation, per test - 540.00 

5.2.9 Calcination 

a. up to 800 0 C, 

- one sample only - 360.00 

- 2 or more samples, per sample - 300.00 

b. up to 1050 0 C 


- 2 or more samples, per sample - 360.00

1884 


5.2.10 Roasting/Sintering 

a. Using Electric Furnace (batch), 


- 2 2 or more samples, per sample - 300.00 

b. Using Small Rotary Kiln (continuous), 

per test - 480.00 

5.2.11 Chiddy Method (Sponge), per test - 480.00 

5.2.12 Smelting, per test - 840.00 

5.2.13 Pelletizing 

a. Using Pelletizing Drum (batch), per test- 180.00 

b. Using Pelletizing Disc (continuous), 

per test - 300.00 

5.2.14 Work Grindability Index - 1,080.00 

5.2.15 Swelling Test (Bentonite) - 50.00 

5.2.16 Oil Bleaching - 60.00 

5.2.17 Acid/Sodium Activation - 260.00 

5.2.18 Cation Exchange Capacity - 145.00 

5.2.19 Settling Rate - 50.00 

5.2.20 Recovery of Chrysotile Asbestos, per kg. - 420.00 

(Note: The MGB is also accepting samples for pilot testing on flotation, classification, 

roasting and magnetic separation (dry). Charges will be estimated for each case and 

job performed on contractual basis.) 

5.3 Analysis of Water 

5.3.1 pH ñ 50.00 

5.3.2 Dissolved Oxygen ñ 50.00 

5.3.3 Bicarbonate ñ 90.00 

5.3.4 Carbonate ñ 90.00 

5.3.5 Total Solids ñ 60.00 

5.3.6 Total suspended solids ñ 60.00 

5.3.7 Total dissolved solids ñ 60.00 

5.3.8 Total acidity ñ 90.00 

5.3.9 Total alkalinity ñ 90.00 

5.3.10 Total hardness ñ 90.00 

5.3.11 Sulfate ñ 90.00 

5.3.12 Chloride ñ 120.00 

5.3.13 Silica ñ 90.00 

5.3.14 Iron ñ 100.00 

5.3.15 Lime ñ 90.00 

5.3.16 Magnesia ñ 90.00 

5.3.17 Sodium ñ 90.00 

5.3.18 Potassium ñ 90.00 

6.0. MARINE GEOPHYSICAL AND GEOLOGICAL INVESTIGATION AND 

VERIFICATION


6.1 Marine Geophysical Survey 

6.1.1 Single-Channel seismic reflection, per km. ñ 3,250.00 

6.1.2 Single-Channel seismic reflection + echo sounder, per km.ñ 4,200.00 

6.1.3 Echo sounder, per km. ñ 1,200.00 

6.1.4 Side Scan Sonar, per km. ñ 2,700.00 

6.1.5 Side Scan Sonar + Echo Sounder, per km . ñ 3,700.00 

6.1.6 Survey Vessel (RPS Explorer) 

a. Mobilization/demobilization, per day ñ 76,000.00 

b. Actual survey, per day ñ 36,000.00 

6.2 Marine Geological Survey 

6.2.1 Piston Coring, per sample ñ 1,600.00 

6.2.2 Grab Sampling, per sample ñ 800.00 

(Note: Cost of Survey includes use of positioning instrument [GPS], but excluding cost 

of fuel) 

6.3 For Geophysical Services 

Man/Day Rate Total Daily Rate 

6.3.1 Induced Polarization 2,500.00 17,500.00 

6.3.2 Resistivity Survey 2,500.00 17,500.00 

6.3.3 Self Potential 

a. Vertical Loop 2,500.00 17,500.00 

b. Potable Soil 2,500.00 17,500.00 

6.3.4 Seismic Surveys 

a. 12-Channel (refraction) 3,200.00 22,400.00 

b. 12-Channel (reflection) 3,200.00 22,400.00 

6.3.5 Magnetics 

a. Precision Type 2,300.00 16,100.00 

b. Fluxgate 2,500.00 17,500.00 

(In addition to the charges under item 6.3.1, the applicant or interested party shall pay 

for transportation of Bureau personnel from official station to the area and return as 

well as the expenses for freight, labor, materials and analysis of the samples.) 

6.4 Field verification of survey area for mining contract/dredging, 

Engineering geological and geohazard scoping, geological 

assessment, investigation of conflicts, renewal or extension 

of tax exempt, inspection of stockpile, inspection of seabed 

quarrying/dredging/offshore mining operations ñ 1,500.00/man/day 



6.5 Evaluation of mineral/ore reserves within offshore mining claim 

areas or seabed quarry/borrow pit areas ñ 2,000.00/man/day 


charge is 10,000.00

1886 


6.6 Monitoring of environmental conditions, mine safety and 

health audit, validation of environmental and socio-economic 

status of affected coastal/marine areas by seabed quarry/ 

dredging/borrow pit and offshore mining operations field 

validation of engineering geological and geohazard report 

(EGGAR) ñ 2,000.00/man/day 



6.7 Geophysical/geological data processing and date analyses ñ 500.00/line km. 

6.8 Coastal/Marine sampling involving physico-chemical and 

oceanographic measurements (water quality, water 

temperature, currents, waves, bottom sediments, etc.) ñ 800.00/sampling station 

6.9 Technical review and evaluation of technical reports and/or 

scientific documents by MGB, as requested, and the 

preparation of a corresponding technical evaluation report ñ 12,000.00/review 

7.0 MGB FORMS (P5.00/page) 

No. 5-1 Application for Exploration Permit 

No. 5-2 Exploration Permit 

No. 5-3 Outline of Project Feasibility Study 

No. 5-4 Exploration Work Program 

No. 6-1 Application for Mineral Agreement 

No. 6-2 Three-year Work Program 

No. 7-1 Application for Financial or Technical Assistance Agreement 

No. 8-1 Application for Industrial Sand and Gravel (SAG) ñ MGB 

No. 8-1A Application for Industrial SAG (LGU) 

No. 8-2 Industrial Sand and Gravel Permit (MGB) 

No. 8-2A Industrial Sand and Gravel Permit (LGU) 

No. 8-3 Quarry or Sand and Gravel Permit Application 

No. 8-3A Commercial Permit Application 

No. 8-4 Quarry or Sand and Gravel Permit 

No. 8-4A Commercial Sand and Gravel Permit 

No. 8-4B Exclusive Sand and Gravel Permit 

No. 8-5 Application for Guano Permit 

No. 8-6 Guano Permit 

No. 8-7 Application for Gemstone Gathering Permit 

No. 8-8 Gemstone Gathering Permit 

No. 11-1 Mineral Processing Permit 

No. 11-2 Application for Mineral Processing Permit 

No. 12-1 Ore Transport Permit 

No. 12-2 Sworn Statement of the Apprehending Officer 

No. 12-3 Affidavit of Witness 

No. 13-1 Application for Accreditation of Traders, Dealers and Retailers in the 

Trading of Minerals/Mineral Products and By-Products 

No. 13-2 Certificate of Accreditation of Traders, Dealers and Retailers in the Trading 

of Minerals/Mineral Products and By-Products


No. 15-1 Permanent Safety Engineerís Permit 

No. 15-2 Temporary Safety Engineerís Permit 

No. 15-3 Permanent Safety Inspectorís Permit 

No. 15-4 Monthly Employerís Report of Accident or Sickness 

No. 15-5 Monthly General Accident Report 

No. 15-6 License to Possess Explosives 

No. 15-7 Monthly Report of Explosives Transactions 

No. 15-8 Explosives and Accessories Consumption Report 

No. 16-1 Environmental Work Program (EWP) 

No. 16-1A Environmental Work Program for Offshore 

No. 16-2 Environmental Protection and Enhancement Program (EPEP) 

No. 16-3 Annual Environmental Protection and Enhancement Program Outline 

(AEPEPO) 

No. 18-1 Semi-Annual Report on Mine Waste and Mill Tailings 

No. 18-2 Application for Compensation for Damages 

No. 18-3 Field Investigations and Assessment of Claims for Damages 

No. 25-1 Application for Order of Survey 

No. 25-2 Order of Survey 

No. 25-3 Survey Plan (21 + 17 CM) 

No. 25-4 Field Notes 

No. 25-5 Azimuth Computations from Astronomical Observations 

No. 25-6 Topographic Survey Computations 

No. 25-7 Traverse Computations 

No. 25-8 Area Computations 

No. 25-9 Coordinate-Conversion-Geographic to Grid 

No. 25-10 Coordinate Conversion-Grid to Geographic 

No. 29-1 Monthly Report on Production, Sales and Inventory of Metallic Minerals 

and Employment (GOLD) 


and Employment (COPPER) 


and Employment (METALLURGICAL CHROMITE) 


and Employment (REFRACTORY CHROMITE) 


and Employment (NICKEL) 


and Employment (IRON) 


and Employment (MANGANESE) 


and Employment (LEAD) 


and Employment (ZINC) 

No. 29-10 Quarterly Report on Production, Sales and Inventory of Non-Metallic 

Minerals and Employment 

No. 29-11 Quarterly Report on Production, Sales and Inventory of Quarry Resources 

(Except Sand and Gravel) and Employment 

No. 29-12 Monthly Report on Production, Sales and Inventory of Industrial Sand 

and Gravel and Employment

1888 


No. 29-13 Monthly Report on Production, Sales and Inventory of Commercial Sand 

and Gravel and Employment 

No. 29-14 Quarterly Report on Production and Sales of Small-Scale Metallic Mines 

and Employment 

No. 29-15 Quarterly Report on Production and Sales of Small-Scale Gold 

No. 29-16 Integrated Annual Report 

No. 29-17 Integrated Annual Report for Small-Scale Mines 

No. 29-18 Quarterly Energy Consumption Report 

No. 29-19 Annual Mineral Reserve/Resource Inventory Report for Mineral 

Agreement & FTAA 

No. 29-20 Quarterly Report on Production, Sales & Inventory of SSM within 

Mineral Reservation 

8.0 PUBLICATIONS 

8.1 Technical Information Series 

1-83 Production Cost: Philippine Copper Mining Firms (1975-1981) ñ 25.00 

5-79 Preliminary Report on the Hydrogeological Survey of Ilocos Norte ñ 25.00 

17-80 Preliminary Report on the Groundwater Geology of Southern 

Quezon Province ñ 32.00 

19-80 Reconnaissance Geological Report of the North-Eastern Part of 

Surigao Del Sur ñ 13.00 

21-80 Quarry Resources for Concrete Aggregate in Cavite Province ñ 19.00 

28-80 Report on the Regional Geological Mapping and Mineral 

Canvassing of Abra de Ilog Quadrangle, Occidental Mindoro ñ 19.00 

32-80 Geochemical Survey of the Pandocondocon-Maranonarca, 

Bgy. Suso, Hinoba-an, Negros Occidental ñ 13.00 

37-81 Perlite in the Philippines ñ 38.00 

43-81 Pumice and Other Pumiceous Materials in the Philippines ñ 25.00 

56-82 Some Plankstonic Foraminifera from the Guimbal Mudstone 

Member, Tarao Formation, Iloilo, Panay ñ 25.00 

67-86 Orbitolina from Tuburan, Cebu ñ 25.00 

68-86 Notes on the Paleontology of Northern Marinduque ñ 19.00 

69-86 Larger Foraminifera from St. Paulís Limestone Northern Palawan ñ 25.00 

70-86 Geology of the Exposed Ophiolite and Surrounding Rocks 

in Puerto Galera Mindoro ñ 19.00 

71-86 Preliminary Report on the Fossil Findings in Comagaycay 

River Alibuag, San Andres Calolbon, Catanduanes ñ 25.00 

72-86 Fullerís Earth of the Sampiro-Calatagan Prenza Area 

Batangas Province ñ 25.00 

73-86 Studies on the Growth of Globorotalia Mernardii Parker, 

Jones and Brady in Tablas Island, Romblon ñ 19.00 

74-86 The Occurrence of Bentonitic Clay Deposit in Barrio 

Homapon Legaspi City ñ 19.00 

75-87 The Geology of Unconsolidated Sediments in Central Palawan ñ 63.00 

76-87 A Re-Evaluation of the Cretaceous-Paleogene Sediments 

of a Portion of the Sierra Madre in the Baras Quadrangle, Rizal ñ 32.00 

77-87 Preliminary Interpretation of RPS Explorerís Seismic Data 

in Bohol Sea ñ 32.00


78-87 Notes on the Size Variation of Globocassidulina 

Subglobosa (Brady) from Tablas Island, Romblon ñ 19.00 

79-87 Paleontology and Stratigraphy of Mabinay and Nearby 

Areas, Negros Oriental ñ 32.00 

80-87 Inventory and Appraisal Survey of Marble Resources in 

Northern Luzon and part of Quezon Province in Connection 

with the Stone Industry Resources Development Project ñ 63.00 

X-1-82 Progress Report on the Reconnaissance Geologic 

Mapping and Stream Sediment Sampling of Gingo-og 

Quadrangle, Misamis Oriental ñ 38.00 

X-5-82 Geology of Malita and Mabayawa Quadrangle, Davao del Sur ñ 38.00 

8.2 UNDP (Strengthening the Government Capability in Gold Operation) 

UNDP Report Number 

1 Geology and Mineralization in the Panganiban Tabas and 

Bulala Areas, Camarines Norte ñ 207.00 

2 Geology and Hydrothermal Alteration of the Amian-Okoy 

River Pamplona and Ayungon Areas, Eastern Negros ñ 257.00 

3 Geology and Mineralization in Northwestern Bohol ñ 150.00 

4 Geology and Gold Mineralization of Surigao del Norte ñ 175.00 

5 Geology and Mineralization in the Baguio Area, Northern Luzon ñ 200.00 

6 Geochemical Nature of Epithermal Gold Mineralization and 

Related Anomalies in the Philippines ñ 232.00 

7 Reconnaissance Geochemical Surveys in the Philippines ñ 138.00 

8 Geology of Southwestern Panay ñ 172.00 

8.3 Technical Report 

2 Geology of Northern Agusan, Mindanao ñ 100.00 

3 Stream Sediments and Soil Orientation Survey in Taysan 

and Asiga Prospects, Philippines ñ 63.00 

6 Geology of Central Palawan ñ 107.00 

8.4 Information Circular 

I.C.# 

21 Geochemical Prospecting by Determination of Gold- 

Extractable Copper in Stream-Silt and Soil ñ 19.00 

23 Analytical Procedures Adopted by the Bureau of Mines ñ 19.00 

27 Feldspar in the Philippines ñ 38.00 

28 Gypsum in the Philippines ñ 25.00 

31 Gravimetric Determination of Zinc ñ 19.00 

8.5 Report of Investigation 

R.I.# 

57 Volumetric Analysis of Titanium ñ 13.00 

58 Report on the Discovery of Pusslininds in the Phil. Notes on 

the Occurrence of a Giant Numulite in the Philippines ñ 13.00

1890 


59 Blending Carbonization of Foreign & Local Coals ñ 19.00 

60 Geology of the Balko Mine and Vicinity Dasol, 

Pangasinan Province, Luzon Philippines ñ 19.00 

62 The Geology and Mineral Resources of Catanduanes Province ñ 19.00 

63 Preliminary Report on the Geology of the Laur-Digalan 

Fault Zone, Luzon Philippines ñ 19.00 

64 Washability Characteristic of Some Philippine Coals ñ 38.00 

65 Beneficiation of a Complex Lead-Zinc-Copper Sulfide 

Ore from Ayala District, Zamboanga ñ 13.00 

67 Geological Study of the Effects of the August 1968 

Series of Earthquakes ñ 19.00 

68 The Use of Local Binders in Exploratory Pelletizing Tests ñ 25.00 

69 Faunal Successions in the Eastern Luzon Central Valley ñ 19.00 

72 Formation of Dowsonite by Decomposition of Sodium 

Aluminate Solution with Carbon Dioxide ñ 13.00 

73 Mineral Resources of Kalinga-Apayao Province ñ 13.00 

74 Geology and Mineral Resources of Nueva Viscaya Prov. ñ 19.00 

75 Technology and Mineral Resources of Pangasinan Prov. ñ 19.00 

76 Geology and Mineral Resources of Sorsogon Province ñ 25.00 

78 Geology and Mineral Resources of Mindoro Province ñ 38.00 

79 Geology and Mineral Resources of Isabela Province ñ 44.00 

80 Geology and Mineral Resources of Nueva Ecija ñ 25.00 

81 Geology and Mineral Resources of South Cotabato Prov. ñ 19.00 

87 Rapid method of Water Analysis ñ 13.00 

88 The Phophotungstate Method of Determining Vanadium in 

Magnetic Sands ñ 19.00 

89 Bauxite Deposits of Samar ñ 19.00 

91 Geology and Mineral Resources of Agusan Province ñ 19.00 

92 Refractory Raw Materials in the Philippines ñ 88.00 

94 Determination of Copper Lead and Zinc ñ 88.00 

98 Silicate Rock Analysis ñ 32.00 

100 The Geology and Mineral Resources of Aklan-Capiz Province ñ 19.00 

102 Geology and Mineral Resources of Surigao del Norte ñ 19.00 

103 Mineral Resources of Cavite ñ 13.00 

105 Geology and Mineral Resources of Camarines Sur ñ 44.00 

108 Geology and Mineral Resources of Catanduanes Prov. ñ 32.00 

109 Comprehensive Report on ìCoal Chemical from Low-Grade Coalî ñ 32.00 

110 Preliminary Interpretation of the Marine Geophysical Data in 

Leyte Gulf, Surigao Strait and Dinagat Sound ñ 19.00 

111 Foraminefora of Lucena Iloilo Basin, Panay ñ 19.00 

114 Geological Interpretation of Landsat Imageries of 

Luzon Central Cordillera ñ 19.00 

115 Geology and Mineral Resources of Davao del Norte ñ 19.00 

117 Geology and Groundwater Resources of Batangas ñ 44.00 

8.5 Books and Other Publication 

Standard Analytical Procedures of the Bureau of Mines and 

Geosciences Laboratories ñ 157.00 

Geology and Mineral Resources of the Philippines Vol. 11 ñ 1,250.00


Philippine Mining Operations Copper Mining Methods 

Mineral Investment Data (1) ñ 69.00 

Compilation of Environmental Laws and Regulations Pertinent 

to the Philippine Mining Industry ñ 125.00 

Revised Mines Safety Rules and Regulations ñ 250.00 

Mineral News Service #84 ñ 63.00 

Mineral News Service #85 ñ 63.00 

Proceedings of the Annual Mines and Geosciences 

Technical Seminar ñ 125.00 

Implementing Rules and Regulations of RA 7942 ñ 250.00 

Mineral Gazette ñ 5.00/page 

All existing orders, rules and regulations, memorandum circulars, directives or part 

thereof, contrary or inconsistent with the provisions of this Administrative Order, are hereby 

repealed, amended and/or modified accordingly. 

This Order shall take effect fifteen (15) days after its complete publication in a newspaper 

of general circulation and fifteen (15) days after registration with the Office of the National 

Administrative Register. 




Secretary 

óo0oó 


Implementing Rules and Regulations for Republic Act No. 8749 

(The Philippine Clean Air Act of 1999) 


(Text available at Office of the National Administrative Register, 



Secretary 

Prepared and Recommended for Approval by: 

The Environmental Management Bureau and 

The Inter-Agency Technical Committee for the IRR of the Clean Air Act of 1999 

(SGD.) PETER ANTHONY A. ABAYA 

Director, EMB 

Chairman, Inter-Agency Technical Committee 

óO0Oó

1892 




Guidelines for the Management and Development of 

Small Islands, Including its Coastal Areas 

(Text available at Office of the National Administrative Register (ONAR), 


Adopted: 13 November 2000 



Secretary 

óo0oó 


Regulations in the Recovery and Disposition of Abandoned Logs, 

Drifted Logs, Sunken Logs, Uprooted and Fire/Typhoon 

Damaged Trees, Tree Stumps, Tops and Branches 

Pursuant to P.D. 705, as amended and Executive Order 192 dated June 10, 1987 and 

in order that abandoned logs, drifted logs, sunken logs, uprooted and fire/typhoon damaged 

trees, tree stumps, tops and branches, hereinafter referred to as retrievable wood materials, 

may be utilized for the manufacture of lumber and other finished wood products, the following 

regulations are hereby promulgated for the information and guidance of all concerned: 

Section 1. Government Policy ñ It is the policy of the government to encourage 

maximum and wise utilization of forest resources. Towards this end, the DENR shall allow 

the orderly recovery and disposition of retrievable wood materials found within forestlands, 

alienable or disposable lands, private lands and along rivers, stream, oceans and other 

bodies of water. 

Sec. 2. Definition of Terms ñ For purposes of this Order, the terms listed hereunder 

are to be understood and interpreted as follows: 

2.1 Abandoned Logs ñ logs left within forestlands, alienable and disposable lands and 

private lands, whose owners or claimants can not be identified. 

2.2 Drifted Logs ñ logs that are washed out by floods and/or water currents. 

2.3 Fire Damaged Trees ñ trees damaged by forest fires, that are either dead or living but 

with a nil chance of survival. 

2.4 Private Lands ñ land(s) covered by either administrative or juridical titles such as Free 

Patent, Homestead and Sales Patent, and Torrens Titles obtained under the Land Registration 

Act (Act No. 46, as amended), or under the Public Land Law (Commonwealth Act No.


141). Certificate of Land Ownership Award (CLOA) covering certified A and D lands issued 

to farmer-beneficiaries under the Comprehensive Agrarian Reform Program (CARP) or the 

Republic Act No. 6657 (R.A. 6657) shall be included in areas that can be applied for. 

2.5 Sunken Logs ñ logs found at the bottom of a river/stream, sea cove and other bodies of water. 

2.6 Typhoon Damaged Trees ñ trees whose tops, branches and trunks were blown away 

or destroyed by strong wind that are either dead or living but with nil chance of survival. 

2.7 Uprooted Trees ñ trees that were blown down due to natural causes, the roots of which 

are exposed above the ground and have a nil chance of survival. 

2.8 Wood Recovery Permit ñ a permit issued by the DENR to gather/retrieve and dispose 

abandoned logs, drifted logs, sunken logs, uprooted and fire/typhoon damaged trees, tree 

stumps, tops and branches. 

Sec. 3. Scope and Coverage ñ The recovery and disposition of retrievable wood 

materials may be allowed subject to the following: 

3.1 The retrievable wood materials are from naturally grown trees in forestlands, A and D, 

and private lands and those of planted species found within forestland; and 

3.2 These logs and other wood materials are free from adverse claim. 

Provided, that no Wood Recovery Permit shall be issued covering the NIPAS areas. 

Sec. 4. Issuance of Wood Recovery Permit 

4.1 Qualified Applicants ñ The following may apply for a wood recovery permit: 

4.1.1 The Natural Resources Development Corporation (NRDC); 

4.1.2 The Local Government Units (LGUs) having territorial jurisdiction over the 

retrievable wood materials; 

4.1.3 Filipino citizens of legal age; and 

4.1.4 Partnerships, associations, cooperatives or corporations. 

The order of priority in the issuance of permit is shown hereunder: 

Type of Retrievable Wood Materials Priority Applicants 

1. Fire/Typhoon damaged and 1. Holder of tenurial instruments 

uprooted trees, tree stumps, tops and 2. NRDC 

branches in public lands 3. LGU 

4. Filipino citizen/corporation 

2. Fire/Typhoon damaged and 1. Lot/land owner 

uprooted trees, tree stumps, tops and 2. NRDC 

branches in private lands 3. LGU 

3. Abandoned logs 1. NRDC 

2. LGU 

3. Filipino citizen/corporation

1894 


4. Sunken and drifted logs 1. Finder of the retrievable wood materials 

2. NRDC 

3. LGU 

4. Filipino citizen/corporation 

4.2 Procedures 

4.2.1 Filing and Evaluation of Application for Wood Recovery Permit ñ Applications 

for wood recovery permit shall be filed with the Community Environment and Natural 

Resources (CENR) Office concerned. The wood recovery permit shall be issued by the 

following DENR officials with corresponding timber volume and period of effectivity. 

Authorized Official Net Volume (cu. m.) Permit Effectivity 

CENRO Five (5) and less one month 

PENRO More than five (5) to 

fifteen (15) two months 

RED More than fifteen (15) 

to thirty (30) three months 

Secretary More than thirty (30) four months to one year 

The application shall be forwarded to the Provincial Environment and Natural Resources 

(PENR) Office, Office of the Regional Executive Director and/or the Secretary, 

as the case may be, with their comments and recommendations. Applications for the 

Secretaryís approval shall be coursed through the Forest Management Bureau (FMB) 

Director for further evaluation. In case of LGUís, their applications shall be accompanied 

with the bill of materials and building plan of the structures to be built. 

4.2.2 Conduct of Timber Inventory ñ The CENR Office concerned upon learning of 

the existence of retrievable wood materials shall conduct or cause the conduct of 100% 

inventory of these wood materials. They shall be chronologically numbered, photographed 

and indicated in a sketch map. The CENR Office shall also collect other relevant data 

such as log, finder, lot owner and location, in the case of a private land where these wood 

materials are located, and accessibility of the area where these retrievable wood materials 

are found. The scaling of logs and felled trees, tree stumps, tops, and branches including 

the determination of natural defects shall be in accordance with the regulations on 

scaling prescribed under DAO 87-80. For typhoon and fire damaged standing trees that 

are to be recovered, the applicable volume equation/table for standing trees shall be used 

and a stand and stock table shall be prepared. 

Provided, that, where the applicant is not the NRDC, the applicant shall cause the 

conduct of the inventory with the close supervision of a forester from the CENR Office 

concerned. Provided, further, on the basis of inventory report, NRDC may waive its right 

on the recoverable wood materials so that other interested and qualified applicants may 

be considered in undertaking the recovery operations. 

4.2.3 Inventory Expenses ñ The CENR Office expenses in the conduct of inventory of 

wood materials to be recovered by NRDC shall be charged/refunded by NRDC which 

amount shall be taken from the gross sales of the retrieved wood materials, while those to 

be recovered by other persons and entities other than NRDC will be refunded by the party 

concerned subject to existing rules and regulations.


Sec. 5. Terms and Conditions ñ The terms and conditions of a Wood Recovery 

Permit are as follows: 

5.1 A wood recovery permit may be extended, if necessary, and/or may be terminated once 

the authorized timber volume is exhausted; 

5.2 The wood recovery permit holders may be allowed to rehabilitate abandoned logging roads, but 

prohibited from constructing new roads within forestlands and cutting of standing trees; 

5.3 The permittee shall only be allowed to gather/recover the inventoried and marked logs/ 

timber trees by the CENR Office concerned; 

5.4 The permittee shall secure the necessary transport and other related documents before the 

retrieved wood materials are sold to the buyers/users thereof and/or wood processing plants. 

Sec. 6. Supervision of the Recovery Operation ñ The recovery operations of the 

retrievable wood materials shall be closely supervised by the CENR Officer concerned or 

through his/her duly authorized representative. 

Sec. 7. Payment of Forest Charges ñ Pursuant to R.A. 7161 and existing forestry 

regulations, forest charges of the retrieved wood materials from naturally grown trees shall 

be paid by the permittee/licensee to the CENRO concerned; after which, the necessary 

documents for the transport of the recovered logs shall be issued by the said CENRO. 

Sec. 8. Suspension and/or Cancellation of the Permit - Any violation or non-compliance 

with the terms and conditions of the Wood Recovery Permit and other pertinent forestry 

laws, rules and regulations shall be sufficient ground for the suspension and/or cancellation 

of the permit without prejudice to the filing of appropriate criminal and administrative charges. 

Sec. 9. Profit Sharing ñ The share from the net revenue derived by NRDC from the 

logs/timber recovery operation shall be 50% for NRDC and 50% for DENR. 

Sec. 10. Separability Clause ñ If any clause, sentence, section or provision of these 

implementing rules and regulations is held or declared to be unconstitutional or invalid by a 

competent court, the remaining parts of these implementing rules and regulations shall not 

be affected thereby. 

Sec. 11. Repealing Clause ñ All orders, rules and regulations inconsistent with this 

Order are hereby repealed or modified accordingly. 

Sec. 12. Effectivity ñ This Order shall take effect immediately upon acknowledgment 

by the U.P. Law Center and fifteen (15) days after its publication in two (2) newspapers of 




Secretary

1896 


DEPARTMENT OF FINANCE 


Department Order No. 49-2000, s. 2000 

Further Amending Department Order No. 41-92, s. 1992 Regarding 

Filing and Processing Fees on All Applications for Tax Credits and Duty 

Drawbacks, Executive Committee Resolution No. 92-01, As Clarified by 

Office Memorandum Order No. 93-04, Dated July 27, 1993 Regarding 

Transfer Fee, and Office Order No. 94-01, Dated January 27, 1994 

Regarding the Replacement of Lost TCCs 

Pursuant to the provisions of Section 3(i) of Administrative Order No. 266 dated February 

7, 1992, empowering the CENTER to collect appropriate fees in connection with the 

processing of tax credit and duty drawback applications, and Executive Order No. 197 of the 

Office of the President dated January 13, 2000, directing all departments, bureaus, commissions, 

agencies, offices and instrumentalities of the National Government, including government-owned 

or controlled corporations, to increase their rates of fees and charges by not 

less than twenty (20%) percent, the following changes in fee structure are hereby ordered: 

I 

Filing and Processing Fees 

Department Order No. 41-92, s. 1992, as amended by Department Order No. 27-93, 

s. 1993 is hereby further amended to read as follows: 

ìSection 1. Filing Fee - A non-refundable fee shall be collected from the applicant/claimant 

upon every submission of documents for checklisting and/or for 

completing the documentary requirements of the CENTER, computed according 

to the following schedule.î 

Amount of Claim Filing Fee 

P100,000 and below P200.00 

From P100,001 to P400,000 P400.00 

From P400,001 to P700,000 P600.00 

From P700,001 to P1,000,000 P800.00 

Over P1,000,000 P1,000.00 

ìSection 1.(a). Processing Fee - A processing fee equivalent to one and onefourth 

percent (1.25%) of the amount of claim shall be assessed and collected 

from the applicant/claimant upon completion of the required application documents 

and before the evaluation of the claim; PROVIDED, that the amount of 

processing fee shall not exceed ONE HUNDRED FIFTY THOUSAND PESOS 

(P150,000.00).î


II 

TCC Transfer Fee 

The Executive Committee Resolution No. 92-01, which provides for the collection of 

P150.00 tax credit certificate transfer fee, as clarified by Office Memorandum No. 93-04, 

dated July 27, 1993 is hereby amended to read as follows: 

ì1. A fee of P300.00 shall be payable for each application for transfer, regardless 

of the amount of TCC. 

2. Where a tax credit certificate is transferred in part, the subsequent application 

for transfer of the remaining portion of the tax credit certificate shall also be subject 

to the payment of the transfer fee.î 

III 

TCC Replacement Fee 

Item No. III of Office Order No. 94-01 which provides the guidelines for the replacement 

of lost TCCs, is hereby amended to read as follows: 

ìIII. Upon application for the replacement of the TCC, a corresponding replacement 

fee shall be paid in accordance with the following schedule: 

AMOUNT/UNUSED PORTION OF LOST TCC REPLACEMENT FEE 

P100,000.00 and below P2,000.00 

From P100,001 to P400,000.00 P3,000.00 

From P400,001 to P700,000.00 P4,000.00 

From P700,001 to P1,000,000.00 P5,000.00 

Over P1,000,000.00 P6,000.00î 

IV 

Certification Fee 

A fee of P150.00 shall be charged for each request enumerated hereunder: 

1. That a firm has no similar, previous and/or outstanding application for tax credit and duty 

drawback; 

2. That a firm has not utilized a particular Certificate of Identification, Export Declaration, Bill 

of Lading or Airway Bill for tax credit or duty drawback application; 

3. The authenticity of Tax Credit Certificates; 

4. Other similar requests for certification. 

All fees and charges identified and amended herewith are deemed non-refundable. 

All orders, guidelines, rules and regulations or parts thereof which are inconsistent with 

this Order are hereby repealed or modified accordingly.

1898 


This Order shall take effect fifteen (15) days after publication in at least two (2) newspapers 

of general circulation. 

Adopted: 22 Aug. 2000 



Secretary 

óo0oó 

Rules and Regulations to Implement the Guidelines on 

Transferability of Tax Credit Certificates Issued Under Article 21 

of the Omnibus Investment Code of 1987 

Pursuant to Sec. 7 of the Memorandum of Agreement (MOA) dated October 13, 2000 

executed by and between the Board of Investments and the Department of Finance, the 

following rules and regulations on the transfer of tax credit certificates issued under Art. 21 

of the Omnibus Investment Code are hereby adopted as an integral part of the said MOA: 

SECTION 1. The tax credit certificate to be transferred shall be subject to validation 

upon the filing of request for transfer thereof, through reference to previous basis of its 

issuance as well as to the findings of the post audit made thereon. 

SECTION 2. The status of the BOI registration of both the transferor and the transferee 

shall be established based on active records and/or verification with BOI. 

SECTION 3. For tax credits on raw materials: 

a. The transferee should be a producer of raw materials, supplies or consumables, per its 

registration with BOI, and it supplies said materials to the transferor who uses said materials 

in the production of finished products under its own BOI registration. 

b. The materials being used as basis for the transfer need not form part of the transferorís 

finished product, and may include such materials for own production of inputs and utilities. 

c. The amount of tax credits to be transferred shall be limited to an inventory level of three (3) 

months for major materials or six (6) months for minor materials based on the transferorís 

average monthly consumption of the materials being supplied by the transferee as obtained 

from the transferorís audited financial statements for the last two (2) years. For this purpose, 

a material is considered major if its cost reaches at least 10% of the transferorís total raw 

material cost; otherwise, it is considered minor. 

d. For new companies who have not attained two (2) full years of commercial operations, the 

amount of tax credits to be transferred shall be based on the consumption rate of the materials 

derived from transferorís BOI registered capacity, subject to the inventory limits set in 

the preceding paragraph.


e. Projected levels of consumption, for whatever reasons, shall not be accepted as basis for 

allowing the amount of transfer that exceeds the limits set in the preceding paragraphs. 

SECTION 4. For tax credits on domestic capital equipment, 

a. The transferee is registered with BOI as manufacturer/producer of the capital equipment, 

or component or parts thereof which it supplies or has supplied to the transferor. 

b. The capital equipment, components or parts subject of the transaction being used as 

basis for the transfer are or will be used by the transferor for the production of its BOI 

registered finished product. Construction materials for civil works in the transferorís factory/ 

plant buildings as well as equipment for selling and administrative operation of the transferor 

shall not qualify for transfer purposes. 

c. The amount of tax credits to be transferred shall be limited to the actual cost of acquisition 

of the capital equipment, component or parts declared as basis of the request for transfer. 

SECTION 5. For transfers involving supply for materials or equipment, transferors 

should submit to the Center a liquidation report for each approved transfer, to show the 

consummation of the transaction used as basis for the transfer, attaching the documents 

evidencing the same, as well as a report on utilization of the items supplied. The transferorís 

succeeding request for transfer will only be accepted upon submission of the liquidation 

report on the previously approved transfer(s) and will only be approved if the report shows 

that the transferor has consummated the transaction as represented. 

SECTION 6. For transfers to parent company, sister companies or affiliates, the transferor 

and the transferee should establish the basis of the request for transfer through submission 

of applicable documents, such as SEC papers, secretaryís certification, etc. For this 

purpose, a parent company is one who has a controlling interest in the transferor; sister 

companies and affiliates are those where either party has substantial interests in the other, 

or have substantial common ownership, of at least 30% based on either partyís stockholdings. 

SECTION 7. Companies who have permanently closed their operation must provide 

proofs of such closure, to include relevant rulings from the Board of Investments, Securities 

and Exchange Commission, Department of Labor and Employment, Department of Trade 

and Industry, and other concerned offices that show that the closure is due to valid reasons. 

SECTION 8. The documents to be submitted in requesting for transfer of tax credits 

are: 

a. Letter request signed by the highest executive officer of the transferor; 

b. Original tax credit certificate and one photocopy; 

c. Notarized deed of assignment signed by responsible officers of the transferor and the 

transferee. This document must state the consideration for the transfer. 

d. Secretaryís certification on the board resolutions of both parties on the authorized signatories 

to the deed of assignment; 

e. Specific documents to support the consideration for the transfer as stated in the deed of 

assignment, such as: 

- Commercial documents like sales contract, invoices, proforma invoices, covering 

the trader transaction declared as basis for the transfer;

1900 


- Audited financial statements of the transferor for the last two (2) years, with 

breakdown of manufacturing cost indicating the cost of the particular materials 

subject of the transfer, if the transfer is based on supply of materials; 

- Secretaryís certification on the present ownership profiles of the companies, for 

transfers to related companies; 

- Other documents/information as prescribed in the foregoing guidelines. 

f. Copy of the BOI registration certificates of both parties; 

g. Clearances from BIR and BOC; 

h. Liquidation Report on previously approved transfer(s). 

KNOW ALL MEN BY THESE PRESENTS: 

A G R E E M E N T 

This Agreement made and entered into at City of Manila, Metro Manila, this 13th day of 

October 2000 by and between the: 

BOARD OF INVESTMENTS (BOI), with principal office at 385 Sen. Gil Puyat 

Avenue, Makati; Metro Manila, duly represented herein by Undersecretary RAUL 

C. HERNANDEZ, Vice-Chairman and Managing Head; 

óandó 

DEPARTMENT OF FINANCE (DOF), with principal office at Roxas Blvd. Manila, 

represented herein by Undersecretary CORNELIO C. GISON of the Revenue 

Operations Group, 

WITNESSETH THAT: 

WHEREAS, under Art. 21 of E.O. 226, otherwise known as the Omnibus Investments 

Code of 1987, tax credit certificates issued under the said E.O. are transferable under such 

conditions as may be determined by the Board after consultation with DOF; 

WHEREAS, the transferability of said tax credit certificates are presently governed by 

the guidelines provided for under the Memorandum of Agreement between the herein Parties 

dated October 5, 1982, as amended by Memorandum of Agreement dated August 29, 

1989, also between the herein Parties; 

WHEREAS, there are provisions in the said Memoranda of Agreement that require 

clarification, revision or simplification as a result of new policies and thrusts adopted and 

being implemented to resolve specific issues and concerns that were raised or identified in 

the course of implementation of the said guidelines; 

WHEREAS, it is necessary, and it is to the best interest of both the private sector as 

beneficiary, and of the Government as the administrator of the tax credit system, to adopt a 

consolidated document integrating the existing guidelines and the amendments thereto, for 

the efficient and effective implementation of the same; 

NOW, THEREFORE, for and in consideration of the foregoing premises, the Parties 

herein, through their respective representatives, do hereby agree and adopt the following


guidelines on transferability of tax credit certificates issued to BOI-registered companies 

under Art. 21 of E.O. 226; 

SECTION 1. Tax credit certificates shall be allowed for transfer under conditions stated 

herein: 

a. The tax credit certificate is valid at the time the request for transfer is filed; 

b. Both the transferor and the transferee are BOI-registered and their respective registrations 

have not been cancelled by BOI. Enterprises whose entitlement to tax credits has 

lapsed under the ten-year limit as provided under Article 2 of EO 226 shall still qualify as 

transferors or transferees for as long as they remain registered with BOI; 

c. For tax credit certificates on raw materials and supplies, the transferee should be a supplier 

of the transferor of raw materials, supplies and consumables, whether or not forming 

part of the latterís export products, for as long as these are used by the latter in the production 

of export products, as registered with the BOI; provided that the amount of tax credit 

certificate to be transferred shall be limited to the latterís actual consumption of the specific 

material being declared as basis of the transfer and to acceptable inventory level; 

d. For tax credit on domestic capital equipment, the transferee should be a supplier of the 

transferor of capital equipment, or its components or parts supplied or to be supplied; 

e. If the transferee is the parent company, a sister company or an affiliate of the transferor, 

the transfer of tax credit certificates may be allowed, regardless of non-compliance with the 

conditions as prescribed in the preceding paragraphs c) and d), provided that the transfer is 

deemed to be a form of assistance to either party currently deemed in distress; provided 

further that this transfer shall be approved by the Executive Committee of the One Stop 

Shop for Tax Credit and Duty Drawback Center (the Center); 

f. In case an enterprise has permanently closed or permanently stopped its BOI-registered 

activity for valid reasons as certified by BOI, it may be allowed to transfer its outstanding and 

valid tax credits only if the transferee is a BOI-registered parent, sister or affiliate company, 

provided that in the absence of such parent, sister or affiliate companies, the transfer of tax 

credits to any BOI-registered companies may be allowed if the transferor had operated its 

BOI-registered activity for at least five (5) years prior to closure; provided further that the 

transfer will still be allowed under this provision even if the transferorís registration has been 

cancelled by BOI only if the cancellation is due to the said closure or ceasing of operation 

and not for any other violations. 

SECTION 2. Second transfer from the first transferee of the same transferred tax credit 

certificates may be allowed only as strategy to assist a distressed industry sector, but never 

a distressed individual company, upon endorsement by BOI and upon approval as well as 

adoption of appropriate guidelines by the Executive Committee of the Center; 

tion. 

SECTION 3. All approved transfers of tax credit certificates shall be subject to liquida- 

SECTION 4. The transferee may apply such transferred tax credits as payment of 

taxes, duties, charges or fees directly due to the national government for as long as the tax 

credit certificate is valid.

1902 


SECTION 5. The request for transfer shall be filed with the Center which shall review 

compliance of the request to the herein guidelines. 

SECTION 6. All requests for transfer of tax credit certificates shall be accompanied by 

a certification from the Bureau of Internal Revenue and the Bureau of Customs that the 

transferor has no pending obligations with the said agencies. 

SECTION 7. The parties also agree to adopt as an integral part of this Agreement the 

attached Implementing Rules and Regulations, prescribing specific guidelines for processing 

and approving transfer of tax credits, including the relevant documents and information 

to be submitted by the transferor, and the systems and procedures to be followed. 

SECTION 8. This Agreement shall take effect fifteen (15) days after publication in a 

newspaper of general circulation in the Philippines. 

SECTION 9. The parties shall consult with each other and with relevant agencies and 

private sector entities and organizations for the efficient and effective implementation of this 

Agreement, including review and amendment thereof when deemed necessary. 

IN WITNESS WHEREOF, The Parties hereto have signed this Agreement this 13 th 

Day of October, 2000 at the City of Manila, Metro Manila. 

BOARD OF INVESTMENTS DEPARTMENT OF FINANCE 

(SGD.) RAUL C. HERNANDEZ (SGD.) CORNELIO C. GISON 

Vice-Chairman & Managing Head Undersecretary 

Signed in the Presence of: 

(SGD.) OFELIA V. BULAONG (SGD.) ALBERTO S. SALANGA 

Governor Executive Director 

Board of Investments One Stop Shop Inter-Agency Tax 

Credit & Duty Drawback Center 

DEPARTMENT OF JUSTICE 


DEPARTMENT CIRCULAR NO. 84 

Procedure Governing the Investigation of Administrative 

Complaints/Charges Against Prosecutors in the 

National Prosecution Service


In the interest of the service and pursuant to the provisions of Presidential Decree No. 

1275 dated April 11, 1978 and other existing laws, the following procedure in the investigation 

of administrative charges against prosecutors in the National Prosecution Service is 

hereby established: 

I. PRELIMINARY PROVISIONS 

Section 1. Definition of Terms ñ As used herein, unless the context indicates otherwise 

ñ 

a. ìSecretaryî shall refer to the Secretary of the Department of Justice; 

b. ìProsecutorî shall refer to a State Prosecutor and the assistants of the Regional, City 

and Provincial Prosecutors; 

c. ìHead Prosecutorî shall refer to the Chief State Prosecutor and his assistants and the 

head of a Regional, City or Provincial Prosecution Office; 

d. ìRespondentî shall refer to the prosecutor/head prosecutor against whom an administrative 

complaint/charge has been filed; and 

e. ìComplainantî shall refer to any person with a complaint against a prosecutor. 

Sec. 2. Statement of Policy ñ This Circular seeks to establish a uniform procedure in 

the investigation of administrative charges filed against the members of the National Prosecution 

Service that will induce public confidence and ensure the fair, just and expeditious 

disposition/resolution thereof. 

II. COMPLAINT 

Sec. 3. Who May File a Complaint ñ A complaint may be filed against a prosecutor by 

the Secretary, the Head Prosecutor or by any other person who has personal knowledge of 

the facts constituting the offense. 

Sec. 4 Where to File a Complaint ñ The complaint shall be filed directly with the 

Secretary if the respondent is a Head Prosecutor. If the respondent is a prosecutor, the 

complaint shall be filed with the Head Prosecutor of the prosecution office where the respondent 

belongs. 

Sec. 5. Form of Complaint ñ A complaint shall be in writing, and signed by the complainant. 

If the complaint is filed by a private party, the same shall be placed under oath by 

the complainant. 

Sec. 6. Contents of Complaint; Supporting Documents ñ A complaint shall contain 

the following information: 

1. the full name and address of the complainant; 

2. the full name, position and place of station of the respondent; and 

3. a narration of the relevant and material facts showing the act or omission complained of.

1904 


Certified true copies of the documents and affidavits of witnesses, if any, which may 

substantiate the charge, shall be attached to the complaint. 

Sec. 7. Offenses Which May Be the Subject of a Complaint ñ A respondent may be 

charged for violation of any of the following offenses: 

a. Grave Offense 

i. Dishonesty; 

ii. Gross Neglect of Duty; 

iii. Grave Misconduct; 

iv. Disgraceful and immoral conduct; 

v. Being notoriously undesirable; 

vi. Requesting or receiving any fee, gift or other valuable item for himself or any other 

person in the course of official duties or in connection therewith when such fee, gift 

or other valuable thing is given by any person in hope or expectation of receiving a 

favor or better treatment than that accorded other persons or committing acts 

punishable under anti-graft law; 

vii. Conviction of a crime involving moral turpitude; 

viii. Physical or mental incapacity or disability due to immoral or vicious habits; 

ix. Contracting loans of money or other property from persons with whom the office of 

the prosecutor concerned has business relations; 

x. Engaging directly or indirectly in partisan political activities; 

xii. Conduct prejudicial to the best interest of the service 

xiii. Nepotism as defined in Section 59 of Chapter 7, title I, Book V, Executive Order No. 

292 (The Administrative Code of 1987); 

xiv. Falsification of official document; 

xv. Disloyalty to the Republic of the Philippines and the Filipino people; 

xvi. Soliciting or accepting directly or indirectly any gift, gratuity, favor, entertainment, 

loan or anything of monetary value which in the course of his official duties or in 

connection with any transaction may be affected by the functions of his office; 

xvii. Disclosing or misusing confidential information officially known to him by reason of 

his office and not made available to the public, to further his private interests or give 

undue advantage to anyone or to prejudice the public interest; 

xviii. Obtaining or using any statement filed under R.A. No. 6713 (Code of Conduct and 

Ethical Standards for Public Officials and Employees) for any purpose contrary to 

morals or public policy or any commercial purpose other than by news and 

communications media for dissemination to the public; 

xix. Recommending any person to any position in a private enterprise which has a pending 

official transaction with his office, unless such recommendation or referral is 

mandated by law or international agreements, commitment or obligation or as part 

of the function of his office. 

b. Less Grave Offense 

i. Discourtesy in the course of official duties; 

ii. Habitual drunkenness; 

iii. Gambling prohibited by law; 

iv. Oppression;


v. Inefficiency and incompetence in the performance of official duties; 

vi. Improper or unauthorized solicitation of contributions from subordinate employees; 

vii. Insubordination or refusal to perform official duty; 

viii. Borrowing money by superior officers from subordinates or lending by subordinates 

to superior officers; 

ix. Lending money at usurious rates of interest; 

x. Violation of applicable provisions of existing Civil Service Law and Rules or 

reasonable office regulations; 

xi. Disgraceful, immoral, or dishonest conduct prior to entering the service; 

xii. Lobbying for personal interest or gain in legislative halls and offices without authority; 

xiii. Unfair discrimination in rendering public service due to party affiliation or preference; 

xiv. Failure to file sworn statement of assets and liabilities and net worth, and disclosure 

of business interest and financial connections, including those of his spouse and 

unmarried children under eighteen (18) years of age living in his household. 

c. Light Offense 

i. Frequent unauthorized absences or tardiness in reporting for duty or frequent 

unauthorized absences from duty during regular hours; 

ii. Willful failure to pay taxes due to the government; 

iii. Willful failure to pay just debts; 

iv. Pursuit of private business, vocation or profession without the permission required 

by the Civil Service Rules and Regulations; 

v. Promoting the sale of tickets in behalf of private enterprise that are not intended for 

charitable or public welfare purposes and, even in the latter case, if there is no prior 

authority; 

vi. Failure to attend to anyone who wants to avail himself of the services of the office, 

or act promptly and expeditiously on public transactions. 

Sec. 8. Action on Complaint ñ A complaint, including those that are not signed or in 

the prescribed form, shall be given due course if there is obvious truth or merit to the allegations 

therein or if the same is supported by documentary or other evidence. Otherwise, the 

complaint shall be dismissed. 

III. FACT FINDING INVESTIGATION 

Sec. 9. Show-Cause Order ñ The Secretary or the Head Prosecutor, as the case may 

be, shall furnish the respondent with a copy of the complaint and its supporting documents 

and require him to explain in writing and under oath why no formal charge/s shall be filed 

against him on the basis of the complaint. 

Sec. 10. Period to Submit Explanation ñ The respondent shall be given not less than 

five (5) days from receipt of the order to submit his explanation. If the respondent fails or 

refuses to submit an explanation, the matter shall be resolved on the basis of the available 

documents. 

Sec. 11. Investigation of Complaint - After the expiration of the period for filing an 

explanation, the Secretary or Head Prosecutor, as the case may be, shall conduct a factfinding 

investigation to determine the merit of the complaint.

1906 


After investigation, the Head Prosecutor shall forward his report and recommendation 

to the Secretary for proper disposition. 

Sec. 12. Dismissal of Complaint ñ If the Secretary finds the explanation of the respondent 

to be satisfactory, the complaint shall be dismissed. The complainant shall be 

informed of the dismissal by the Secretary of the complaint. 

Sec. 13. Formal Charge ñ If the investigation establishes the existence of a prima 

facie case against the respondent, the Secretary shall file a formal charge against the respondent. 

Sec. 14. Contents of Formal Charge ñ The formal charge against a respondent shall 

contain ñ 

a. a specification of the charge; 

b. a brief statement of the material or relevant facts constituting the act or omission complained 

of; 

c. a directive for the respondent to answer the charge in writing under oath within a period of 

not less than seventy-two (72) hours from receipt thereof; 

d. a notice for respondent to indicate in his answer whether or not he elects a formal investigation 

of the charge, and that he is entitled to be assisted by a counsel of his choice; and 

e. a directive for respondent to attach to his answer certified true copies of the documentary 

evidence, together with the sworn statements of his witnesses, if any, in support of his 

defense. 

Sec. 15. Failure or Refusal to Submit Answer ñ If the respondent refuses or fails to 

answer the formal charge within the prescribed period, he shall be deemed to have waived 

his right to be heard and to present evidence in his behalf. The investigator may forthwith 

resolve the case on the basis of the evidence on hand. 

Sec. 16. Effect of Withdrawal of the Complaint ñ After the issuance of the formal 

charge, the withdrawal by the complainant of the complaint shall not result in the outright 

dismissal of the charge nor in the discharge of the respondent from any administrative liability 

where there is documentary or other evidence that would tend to prove the guilt of the 

respondent. 

IV. PREVENTIVE SUSPENSION 

Sec. 17. Preventive Suspension ñ Upon the issuance of the formal charge or immediately 

thereafter, the Secretary may motu proprio, or upon petition of the complainant, order 

the preventive suspension without pay of respondent if the charge involves: 

a. dishonesty; 

b. grave misconduct; 

c. gross negligence in the performance of duty; or 

d. if there are reasons to believe that the respondent is guilty of the charge which would 

warrant his removal from the service. 

Sec. 18. Period of Preventive Suspension ñ Unless the President directs otherwise, 

the period of the preventive suspension of a respondent shall not exceed ninety (90) days. If


the formal investigation is not terminated within the said period, respondent shall be automatically 

reinstated unless the delay in the disposition of the case is due to the fault, negligence 

or any cause attributable to the respondent, in which case the period of such delay 

shall not be counted in computing the period of suspension. 

Sec. 19. Remedies from Order of Preventive Suspension ñ Within fifteen (15) days 

from receipt of the order for his preventive suspension, the respondent may file a request for 

the reconsideration thereof with the Secretary. Only one request for reconsideration shall 

be entertained. If the request for reconsideration is denied, the respondent may appeal the 

same to the Office of the President within fifteen (15) days from receipt of the order of denial. 

V. ADMINISTRATIVE CASE PROPER 

Sec. 20. Designation of Investigating Officer ñ Upon the issuance of the formal 

charge, the Secretary shall designate an Investigating officer to conduct the formal investigation 

of the complaint and thereafter, to submit his findings and recommendation thereon. 

Sec. 21. Powers of Investigating Officer ñ The Investigating officer shall have the 

power to issue summons, subpoena and other processes to all parties concerned, and to 

conduct formal hearings of the case, if necessary. 

Sec. 22. Conduct of Formal Investigation ñ Although the respondent does not request 

a formal investigation, one shall nevertheless be conducted by the Investigating officer 

where from the allegations of the complaint and the answer of the respondent, including 

the supporting documents of both parties, the merits of the case cannot be decided judiciously 

without conducting such investigation. The investigation need not adhere strictly to 

the technical rules of procedure applicable in judicial proceedings. 

Sec. 23. Commencement and Termination of Investigation ñ The investigation 

shall be held not earlier than five (5) nor later than ten (10) days from receipt by the Investigating 

officer of the respondentís answer. As far as practicable, the investigation shall be 

terminated within thirty (30) days after the Investigating officer is formally notified of his 

designation as such. 

Sec. 24. Recommendation of Investigating Officer ñ The investigating officer shall 

submit his written report and recommendation to the Secretary within fifteen (15) days from 

the termination of the investigation. The Secretary may revise, reverse, modify, affirm or set 

aside the report and recommendation of the investigating officer. 

Sec. 25. Exoneration of Respondent ñ If the Secretary finds respondent not guilty of 

the charge, he shall order the dismissal of the case. The respondent and the complainant 

shall be furnished with a copy of the order of dismissal. 

Sec. 26. Motion for Reconsideration of Complainant ñ The complainant may file 

with the Secretary a motion for the reconsideration of the order of dismissal within fifteen 

(15) days from receipt thereof. The action of the Secretary on the motion for reconsideration 

shall be final. Only one motion for reconsideration shall be allowed. 

Sec. 27. Finding of Guilt ñ If there are sufficient grounds to find respondent guilty of 

the charge, the Secretary shall submit the corresponding Investigation Report, together with

1908 


the entire records of the case, to the President. The Investigation Report of the Secretary 

shall be considered confidential. 

VI. PENALTIES 

Sec. 28. Imposable Penalties ñ In his report to the President, the Secretary may, 

depending on the gravity of the offense, recommend the imposition of any of the following 

penalties on a guilty respondent: 

a. dismissal with or without forfeiture of benefits provided for by law; 

b. demotion in pay or rank; 

c. suspension from service without pay; or 

d. reprimand. 

Sec. 29. Alternative Circumstances ñ The following circumstances attendant to the 

commission of the offense may be considered in determining the imposable penalty: 

a. physical illness; 

b. good faith; 

c. taking undue advantage of official position; 

d. taking undue advantage of subordinate; 

e. undue disclosure of confidential information; 

f. use of government property in the commission of the offense; 

g. habituality; 

h. offense is committed during office hours and within the premises of the office or building; 

i. employment of fraudulent means to commit or conceal the offense; 

j. length of service in government; 

k. education; or 

l. other analogous circumstances. 

As a general rule, the above circumstances shall not be considered in the determination 

of the imposable penalty if they are not invoked or pleaded by the respondent in his 

favor. In the interest of substantial justice, however, the Secretary may consider the aforementioned 

circumstances. 

VII. FINAL PROVISIONS 

Sec. 30. Repealing Clause ñ All circulars and issuances inconsistent herewith are 

hereby repealed or modified accordingly. 

Sec. 31. Effectivity ñ This Circular shall take effect fifteen (15) days after its publication 



(SGD.) ARTEMIO G. TUQUERO 

Secretary


DEPARTMENT OF LABOR AND EMPLOYMENT 


Department Order No. 6 

Guidelines for Accreditation of Workersí Organizations for 

the Purpose of Assisting in the Implementation of the Direct 

Housing Loan Facility of the Social Security System 

I 

Coverage and Definitions 

These guidelines shall apply to workersí organizations seeking accreditation from the 

Department of Labor and Employment (DOLE) for the purpose of assisting in the implementation 

of the direct housing loan facility of the Social Security System (SSS). 

For purposes of these guidelines, the following definitions are hereby adopted: 

A. ìDirect housing loan facilityî refers to the facility established pursuant to Social Security 

Commission (SSC) Resolution 269 dated 05 April 2000 and the Memorandum of Agreement 

(MOA) dated 1 May 2000, entered into by and between the SSS, the Housing and Urban 

Development Coordinating Council (HUDCC), the Department of Labor and Employment 

(DOLE), the Overseas Workers Welfare Administration, the Home Guaranty Corporation 

(HGC), and the Employers Confederation of the Philippines (ECOP). The SSC Resolution 

and the MOA are deemed incorporated as integral parts of these guidelines. 

B. ìWorkersí organizationî refers to any association of workers in the private sector or of 

overseas Filipino workers duly registered with the DOLE, the Securities and Exchange Commission 

(SEC), or the Cooperative Development Authority (CDA). It shall include any trade 

union center, federation, national union, local/chapter or independent union as defined in 

Book V of the Labor Code and its implementing rules, or any other association of workers 

which exists in whole or in part for collective bargaining or for the mutual aid and protection 

of its members. 

C. ìAccredited workersí organizationî refers to any workersí organization certified by the 

DOLE, pursuant to these guidelines, to assist in the implementation of the direct housing 

loan facility through the following: 

1. Screening and qualification of loan applicants, including credit investigation 

and documentation; 

2. Monitoring of loan accounts and collection of loans; and 

3. Promoting availment by qualified workers of the direct housing loan facility, 

either on its own or in partnership with the DOLE through existing DOLE programs.

1910 


II 

Procedure and Requirements for Accreditation 

A. Where to File - The application for accreditation shall be filed with the DOLEís Bureau 

of Labor Relations (BLR) or any of the DOLEís Regional Offices. Where the application 

is filed with any of the Regional Offices, the same shall be immediately endorsed to the BLR. 

Processing of the application shall be done by the BLR with assistance, where appropriate, 

by the Regional Offices. 

B. Documentary Requirements - A workers organization may be accredited to assist in 

the direct housing loan facility upon compliance with the following requirements: 

1. It must have legal personality as evidenced by a certified true copy of its certificate of 

registration issued by the DOLE, SEC or CDA, which shall be attached to its application for 

accreditation; 

2. It must state in its application, which shall be verified by its appropriate officer, that it has 

no pending case involving revocation of its registration or any case involving money matters 

of which the organization is a defendant, and that it is an organization in good standing. An 

organization in good standing means that the organization is presently complying with the 

reporting requirements of the DOLE, SEC or CDA, as the case may be; and 

3. It must have verifiable or adequate in-house experience, capacity, or preparation in 

undertaking housing programs, as evidenced by its duly audited financial statements, 

track or training record, or ocular inspection report by an appropriate DOLE officer, as 

the case may be. 

C. Action on the Application - Upon compliance with the foregoing requirements, the 

DOLE Secretary shall issue a certificate of accreditation in favor of the applicant workersí 

organization. 

III 

Updating and Maintenance of Records 

A workersí organization accredited under these guidelines shall update the DOLE, 

through the BLR, of any changes in its executive officers, board of directors and business 

address. It shall likewise maintain updated records, which shall be made accessible to its 

members and to the DOLE, on the following: 

A. Workers-beneficiaries it has assisted in availing of the direct housing loan facility; 

B. On going and completed projects; 

C. Books of accounts, financial statements and other relevant records pertaining to activities 

undertaken pursuant to the direct housing loan facility. 

The DOLE, through the BLR, shall keep a registry of accredited workersí organizations 

and shall ensure that only those actively engaged in undertaking the activities enumerated 

under I.C shall remain in such registry.


IV 

Effectivity 

These guidelines shall take effect fifteen (15) days upon its complete publication in 

two (2) newspapers of general circulation. 



(SGD.) BIENVENIDO E. LAGUESMA 

Secretary 

óo0oó 

Department Order No. 07, s. 2000 

Implementing Rules and Regulations of Republic Act No. 8759, 

Otherwise Known as the Public Employment Service Act of 1999 

These Implementing Rules and Regulations are hereby issued pursuant to the authority 

of the Secretary of Labor and Employment under Section 8 of Republic Act No. 8759. 

These rules are issued upon prior coordination with the Secretary of the Department of 

Interior and Local Government and in consultation with the Presidents of leagues of provinces, 

cities, municipalities and barangays. 

Rule I 

Preliminary Provisions 

SECTION 1. Title - These Rules shall be known and cited as the Implementing Rules 

and Regulations of the Public Employment Service Office Act of 1999. It shall be referred to 

herein as the Rules. 

SECTION 2. Coverage - These Rules shall cover all existing and accredited Public 

Employment Service Offices. 

SECTION 3. Definition of Terms - The terms used in these Rules shall mean the following: 

a. National Facilitation Service Network (NFSN) or National Employment Service Network 

(NESN) refers to the Department of Labor and Employment (DOLE), its Regional 

Offices, attached agencies and Public Employment Service Offices (PESOs) established at 

the local levels to provide integrated, collaborative and systematic delivery of employment 

services to clients. 

b. Department or DOLE refers to the Department of Labor and Employment. 

c. Public Employment Service Office or PESO refers to a non-fee charging multi-employment 

service facility or entity established, recognized or accredited pursuant to these Rules.

1912 


d. Key Cities refer to all cities which are industrialized centers of trade, commerce and 

economic activities, and where employment opportunities exist or are accessible. 

e. Strategic Areas refer to industrial centers, economic zones, agriculture and fisheries 

development zones, eco-tourism, growth areas, and other areas where government intervention 

is needed to develop human resources in order for them to compete in open employment 

and self-employment. 

f. Clients refer to jobseekers, employers, researchers, planners, policy makers and other 

persons who seek the services of the PESO. 

g. Labor Market Information (LMI) refers to any information concerning the size, composition, 

functions, problems or opportunities of the labor market or any part thereof, including 

but not limited to employment-related intentions or aspirations of labor market clients. 

h. Regional Coordinating Council or RCC refers to DOLE Regional Office and the offices 

of the DOLE attached agencies in the Regions. 

Rule II 

Policies and Objectives 

SECTION 1. Declaration of Policy - The State shall promote full employment and equality 

of employment opportunities for all. It shall institutionalize the NFSN or NESN, as well as 

strengthen and expand the existing employment facilitation service machinery of the government 

through the PESOs. 

The State shall likewise professionalize the employment service. Toward this end, all 

PESO personnel who are appointed, designated or accredited pursuant to Republic Act No. 

8759 and these Rules shall, subject to the needs of the service, have security of tenure and 

be assured of stability of employment. 

SECTION 2. Objectives of the PESO - The PESO shall ensure prompt, timely and 

efficient delivery of employment services. Toward this end, it shall: 

a. Provide a venue where clients could avail simultaneously various employment services 

such as LMI, referrals, training, self-employment, entrepreneurial, reintegration, and other 

services; 

b. Serve as referral and information center for the DOLE and other government agencies by 

making available data and information on their respective programs; 

c. Provide clients with adequate information on employment and the labor market situations; 

and 

d. Establish linkages with other PESOs for job exchange and other employment related 

services. 

The PESO shall also provide information on other DOLE programs.


Rule III 

Functions and Services 

SECTION 1. Main Functions of the PESO - The PESO shall operate within its area of 

jurisdiction in coordination with other concerned agencies, but in every case subject to the 

requirements of the NFSN or NESN. 

a. The PESO shall provide LMI services. For this purpose, it shall: 

i. Market and promote its services, through all forms of media, to all its labor 

market clients; 

ii. Regularly obtain a list of job vacancies from employers; 

iii. Generate and maintain an updated registry of skills; 

iv. Gather, collate and process data or information on employment trends, particularly 

labor supply and demand, and disseminate such data or information to 

labor market clients; and 

v. Provide information on licensed or authorized recruitment agencies or recruiters 

for local and overseas employment. 

b. The PESO shall provide referral and placement services for local and overseas as well as 

private and civil service employment. In accordance with existing policies, rules and regulations, 

it shall: 

i. Undertake active sourcing of vacancies; 

ii. Evaluate the qualifications of jobseekers in relation to wage employment options; 

iii. Refer jobseekers for appropriate employment assistance and monitor the results 

of such referrals; 

iv. Institute measures to ensure that recruitment and placement services, both 

for local and overseas, are in accordance with existing laws, rules and regulations. 

c. The PESO shall provide training and vocational guidance and employment counselling 

services. It shall: 

i. Conduct pre-employment counseling, including values development and enhancement 

of work ethics, to prospective local and most especially to overseas 

jobseekers; 

ii. Administer and evaluate psychological tests or examinations; 

iii. Undertake employability enhancement trainings or seminars for jobseekers as 

well as those intending to change careers or enhance their employability; and

1914 


iv. Conduct orientation and training to prospective local and overseas jobseekers 

regarding rules and regulations on anti-illegal recruitment. 

d. The PESO shall provide self-employment services. It shall: 

i. Maintain and provide updated directory of government and non-government 

institutions with existing livelihood programs, including the directory of lending 

institutions; 

ii. Determine clientís potential for entrepreneurial undertakings; 

iii. Refer clients for appropriate self-employment or livelihood assistance and monitor 

the results of such referrals; and 

iv. In coordination with the DOLE Regional Coordinating Council (DOLE RCC), 

undertake livelihood and self-employment programs. 

e. In coordination with the DOLE-RCC, the PESO shall provide reintegration assistance 

services to returning overseas Filipino workers (OFWs. It shall: 

i. Provide a mechanism for the reintegration of OFWs; 

ii. Determine or obtain information on returning OFWs and provide periodic information 

of job opportunities; 

iii. Undertake other appropriate programs to promote the welfare of OFWs and 

assist in gathering or tapping the skills and potentials of returning OFWs; and 

iv. Undertake re-integration programs and projects that may be developed by the 

DOLEís Replacement and Monitoring Center (RPMC). 

f. The PESO shall likewise perform other functions analogous to the above including programs 

or activities developed by the DOLE to enhance provisions of employment assistance to 

clients, particularly for special groups of disadvantaged workers such as persons with 

disabilities (PWDs) and displaced workers. 

SECTION 2. Other Services of the PESO - Where appropriate, the PESO shall likewise 

provide the following employment services: 

a. Initiate and organize jobs fairs, provided that jobs fair conducted by private entities or 

educational institutions shall be supervised and monitored by the PESO pursuant to DOLE 

guidelines; 

b. Initiate and organize livelihood and self-employment bazaars, in coordination with 

government and non-government institutions undertaking livelihood and self-employment 

programs; 

c. Facilitate credit access by qualified overseas workers, subject to existing rules and regulations;


d. Endeavor to reach out to qualified poor but deserving students and out-of-school-youth to 

pursue their education by facilitating their employment pursuant to Republic Act No. 7323, 

otherwise known as the Special Program for Employment of Students (SPES) and its implementing 

rules and regulations. The PESO shall likewise encourage qualified employers to 

participate in the program; 

e. Coordinate and promote the adoption of the Work Appreciation Program (WAP) and other 

enrolled youth work programs pursuant to Executive Order No. 139 through Kabataan 2000 

under the Office of the President as implemented by the DOLE and other agencies; and 

f. Monitor the implementation of government-funded infrastructure projects to provide recruitment 

assistance to contractors for their skilled and unskilled human resource requirements 

pursuant to Republic Act No. 6685, otherwise known as Workers Hiring in Infrastructure 

Project (WHIP). 

Rule IV 

Administration of the NFSN or NESN 

SECTION 1. Administration Framework - The general framework for the administration 

of the NFSN or NESN shall emanate from the Central Office, through the Bureau of 

Local Employment (BLE). Consistent with this general framework, each Regional Office 

shall exercise administrative and technical supervision over every PESO within its area of 

jurisdiction. 

SECTION 2. Role of DOLE Central Office - The Central Office shall: 

a. Provide policy directions and prescribe standards on employment services; 

b. Develop and maintain a computerized job matching facility accessible to all PESOs nationwide 

and the Philippine Overseas Labor Offices (POLOs) and a computerized national 

registry of skills, employment and business opportunities for each access of its clients. For 

this purpose, the Phil-Job-Net shall serve as the basic LMI system which shall be continuously 

enhanced and upgraded; 

c. Develop and maintain performance-based and gender-responsive indicators to assess 

and evaluate the effectiveness of the NFSN and the PESOs; 

d. Develop and maintain training curricula on all aspects of employment service, including 

gender awareness; 

e. Establish and maintain training facilities for employment service providers; and 

f. Develop and maintain a Manual of Operations for the effective implementation of the employment 

service program. 

SECTION 3. Role of DOLE Regional Offices - The DOLE Regional Offices, through 

the Regional Directors and the DOLE-RCCs, shall oversee the activities of the PESO network 

within their area of jurisdiction. For this purpose, the Regional Directors shall:

1916 


a. Exercise administrative and technical supervision over the PESOs; 

b. Prepare and submit budgetary requirements to the Central Office; 

c. Recommend the requirements for human resources, equipment and other necessary 

resources to the Central Office for the effective management and administration of the PESO; 

d. Develop, administer and manage area-based or region-specific employment projects for 

PESO implementation; 

e. Maintain a computerized regional registry of skills as well as employment and business 

opportunities for easy access of its clients; and 

f. Monitor and evaluate the performance of the PESOs. 

Rule V 

Establishment of the PESO 

SECTION 1. Establishment of the PESO - The PESO shall be established by the 

DOLE pursuant to Section 3, or upon the request of a particular entity pursuant to Section 7 

of the PESO Act. 

SECTION 2. Procedures for the Establishment of PESO - Pursuant to Section 3 of the 

Act, the DOLE shall establish, operate and maintain PESOs in capital towns of provinces, 

key cities, and other strategic areas. Accordingly, the DOLE shall: 

a. Provide the necessary budgetary allocation, office space, human resource complement, 

equipment and supplies; 

b. In consultation with the LGU concerned, appoint PESO personnel subject to civil service 

rules and the accreditation requirements in these rules; 

c. Provide administrative and technical assistance and allied support services; and 

d. Provide regular training to PESO personnel in the various aspects of employment service. 

Upon the request of an LGU, NGO, CBO or SUC which does not have an existing 

PESO, the DOLE may likewise establish a PESO pursuant to Section 7 of the Act. Within 

fifteen (15) days from receipt of the request, the DOLE shall: 

a. Evaluate the employment services and facilities needed by the clients to enable the 

particular PESO to efficiently discharge its functions; 

b. Evaluate and accredit the personnel in accordance with the accreditation process provided 

in these Rules; and 

c. Forge a Memorandum of Agreement (MOA) with the requesting party, identifying their 

respective roles, duties and responsibilities in the establishment, maintenance and operation 

of the PESO.


Rule VI 

Accreditation of PESOs and Incumbent Personnel 

SECTION 1. Scope of Accreditation - All PESOs constituted, established, organized, 

or in existence pursuant to a MOA between the DOLE and LGUs, NGOs, CBOs or SUCs as 

well as those institutionalized pursuant to legislative actions of local government units prior 

to the effectivity of the Act, may be accredited by the DOLE. Accreditation of existing PESOs 

shall be in the areas of employment services provided to clients, office and facilities, as well 

as human resources. 

SECTION 2. Accreditation of Services - In the accreditation of services provided to 

clients, including office and support facilities, the following procedures shall be followed: 

a. Thirty (30) days after the effectivity of these Rules, the existing PESO shall submit an 

inventory of the employment services it renders to clients as well as its equipment and 

facilities to the Regional Office. 

b. The Regional Office shall evaluate the documents and conduct ocular inspection to ensure 

that the particular PESO is capable of discharging the functions of a PESO as enumerated 

in the Act in these Rules. 

SECTION 3. Accreditation of personnel - In the accreditation of PESO personnel, the 

following procedures shall be followed: 

a. Thirty (30) days after the effectivity of these Rules, the PESO shall submit the roster of its 

personnel and their qualifications to the appropriate DOLE Regional Office. 

b. The Regional Office shall evaluate the qualifications of the said PESO personnel based 

on the minimum criteria prescribed in these Rules. 

SECTION 4. Minimum Criteria for Accreditation of PESO Personnel - The following 

shall be the minimum criteria for accreditation of PESO personnel: 

a. They should meet the minimum qualification standards set by the DOLE and Civil Service 

rules on education, training, relevant experience or expertise and applicable eligibility; 

b. They should pass the medical, physical and psychological examinations administered by 

a competent or authorized persons or institutions; 

c. They should pass both oral and written examinations to be administered by the DOLE; 

d. In case of LGUs and SUCs, they should occupy regular or permanent plantilla items. 

SECTION 5. Effect of Accreditation - Accredited personnel shall not be replaced without 

due process and without prior authority of the DOLE. Upon the accreditation of the 

PESOís employment services and personnel, the DOLE shall forge a new MOA with the 

concerned PESO identifying the respective roles, duties and responsibilities of the parties 

in the maintenance and operation of the PESO.

1918 


Rule VII 

Duties and Responsibilities of Participating Agencies and Institutions 

SECTION 1. Duties and Responsibilities of Participating Agencies and Institutions - 

The LGUs, NGOs, CBOs and SUCs participating in the implementation of the PESO Act 

shall have the following duties and responsibilities: 

a. Assist the DOLE in promoting employment programs within their respective areas of 

jurisdiction or operation; 

b. Provide necessary employment related expertise such as but not limited to labor and 

employment researches, psychological test administration, human resource development 

and other resources, including budgetary allocation as stipulated in the MOA; 

c. Promptly submit to the DOLE Regional Office regular monitoring and performance reports; 

and 

d. Perform other functions as may be stipulated in the MOA or as necessary in furtherance 

of the objectives of the Act. 

Rule VIII 

Funding 

SECTION 1. Funding of the PESO - The amount necessary for the initial implementation 

of the Act shall be charged against the existing appropriation of the DOLE and its other 

operating agencies. Thereafter, the amounts needed for the full implementation of the Act 

shall be included in the budget of the DOLE through the General Appropriations Act. 

Rule IX 

Transitory and Final Provisions 

SECTION 1. Transitory Provisions - Pending appropriation through the General Appropriations 

Act, personal services and other expenses funded by the LGU appropriations 

shall be maintained in accordance with the existing MOA with DOLE. 

The existing MOA between DOLE and the concerned SUC, NGO and CBO shall remain 

in full force and effect until a new MOA consistent with the Act and these Rules shall 

have been signed among the parties concerned. 

SECTION 2. Separability Clause - If any provision of these Rules is held invalid or 

unconstitutional, any other provision not so affected shall continue to be valid and effective. 

SECTION 3. Effectivity - These Rules shall take effect fifteen (15) days after publication 

in at least two (2) newspapers of general circulation. 


(SGD.) BIENVENIDO E. LAGUESMA 

Secretary


DEPARTMENT OF TRADE AND INDUSTRY 


Department Administrative Order No. 04, s. 2000 

Mandatory Philippine National Standards 

1. In accordance with the provisions of R.A. No. 4109, R.A. No. 7394, Executive Order No. 

913, Series of 1983, DAO No. 9, Series of 1990, DAO No. 1, Series of 1997, DAO No. 8, 

Series of 1995, Sec. 10 (4), Chapter 3, Title X, Book IV of the Administrative Code of 1987 

and other related rules and regulations, the mandatory implementation of specific product 

standards is hereby ordered, for the protection of consumers and the general public. 

1.1 PNS 09 Part 1:2000 ñ Safety matches for commercial purposes ñ Specification 

1.2 PNS 34:2000 ñ Rubber inner tubes for pneumatic tires ñ Specification 

1.3 PNS 156:2000 ñ Sanitary wares ñ Specification 

2. All manufacturers, distributors, importers and retailers of said products shall comply with 

the requirements of these standards. 

3. A third party certification, known as the PS Quality Certification Mark, shall be obtained 

from the Bureau of Product Standards (BPS) by all manufacturers of said products. Importers 

of said products shall secure an import commodity clearance from the BPS as a 

pre-requisite of import shipments released by the Bureau of Customs. 

4. BPS shall promulgate implementing guidelines specifying implementing timetables, taking 

into consideration present inventory levels, production capabilities of industries, and 

testing capabilities of BPS and other testing institutions. When necessary, BPS may designate 

an appropriate competent organization to assist in various aspects of standards 

implementation work (such as product inspection, testing, market monitoring) of these 

products. 

5. The implementation of these standards shall be done in coordination with the DTI Regional 

and Provincial Offices and the Bureau of Trade Regulation and Consumer Protection. 

6. All other orders or parts thereof which are inconsistent with the provisions of this Administrative 

Order are hereby repealed or amended accordingly. 

7. This Order takes effect fifteen (15) days after publication in two newspapers of general 

circulation. 

Copies of said standards may be secured from the BPS Standards Data Center. 


(SGD.) MANUEL A. ROXAS II 

Secretary

1920 


Recommended by: 

(SGD.) JESUS L. MOTOOMULL 

Director, BPS 

HOME DEVELOPMENT MUTUAL FUND 


Amended Rules and Regulations 

Implementing Republic Act No. 8501 

Pursuant to the authority granted to the Board of Trustees of the Home Development 

Mutual Fund under Section 13 of Presidential Decree No. 1752, as amended, Rule III of the 

Rules and Regulations Implementing Republic Act No. 8501 is hereby amended in response 

to numerous requests of member-borrowers who, for various valid reasons, failed to file 

their application for condonation of penalties under Section 2 of R.A. 8501 before the expiration 

of the deadline. 

SECTION 1. Rule III of the Rules and Regulations Implementing Republic Act No. 

8501 is hereby amended to read as follows: 

ìRULE III 

CONDONATION OF PENALTIES UNDER 

SECTION 2 OF REPUBLIC ACT 8501 

Section 1. Who May Apply Under this Rule - Any housing loan borrower 

or in the event of his death, his heirs, or successors-in-interest, who has 

unpaid penalties on his housing loan with the Fund as of the effectivity of 

R.A. 8501 and has not yet availed of any previous condonation program 

from any government institution or agency involved in the National Shelter 

Program, may apply for the condonation of penalties under this Rule. A 

housing loan borrower or in the event of his death, his heirs, or successors-in-interest, 

who failed or refused to pay his monthly amortizations 

due to structurally defective or substandard housing units and/or subdivisions 

lacking in basic amenities such as water, light, drainage, good roads 

and others and as required by law, may likewise apply for condonation of 

penalties under this Rule. 

Section 2. Condonation of Penalties After Full Payment/Approval of application. 

All unpaid penalties of said housing loan shall be condoned after 

full payment by the housing loan borrower of all due and demandable 

arrearages composed of the principal and interest or upon approval of the 

borrowerís application for a restructuring of his loan.


Section 3. Restructuring and Term of the Loan - The unpaid due and 

demandable arrearages after partial payment shall be restructured within 

the remaining period of the loan or over ten (10) years, whichever is higher, 

provided that the borrower is at most age 65 at the time of loan maturity 

and to be paid together with the scheduled amortization for the undue balance 

of the original loan in accordance with the terms and conditions of 

the respective promissory notes. 

Section 4. Application of Pag-IBIG Savings or Memberís Total Accumulated 

Value (TAV) 

To reduce the amount of loan to be restructured, a delinquent Pag-IBIG 

housing loan borrower may opt for the following: 

1. Apply at most forty percent (40%) of the memberís TAV of his savings to 

his outstanding loan balance if he has an outstanding Pag-IBIG multi-purpose 

loan (MPL), and has not previously offset his TAV against his MPL. 

2. Apply the memberís TAV of his savings to his outstanding loan balance 

if he has no outstanding MPL. The Member shall, however, be qualified to 

avail himself of a multi-purpose loan only after two (2) years. 

Section 5. Interest Rate - The interest rate on the restructured loan shall 

be the rate on the original loan. 

Section 6. Effect of Default - In the event of default, the total outstanding 

housing loan shall immediately become due and demandable. Restructured 

accounts under the program that incur arrearages equivalent to six (6) 

monthly amortizations shall be foreclosed/cancelled automatically. 

Section 7. Borrowers in the government service, who avail of loan 

restructuring, shall be required to remit their monthly payments for the 

restructured loans through the salary deduction scheme. Borrowers from 

the private sector shall likewise be required to remit their monthly payments 

for the restructured loans through salary deduction, if possible. Otherwise 

they shall be required to issue post dated checks on an annual basis. 

Accommodation checks will be accepted. Retiree from either public or 

private sector who avail of loan restructuring shall also be required to issue 

postdated checks on an annual basis. Accommodation checks will also be 

accepted. 

Section 8. Availment procedure. 

A. Delinquent Pag-IBIG housing loan borrowers who opt to avail of the 

condonation and loan restructuring shall submit the duly accomplished 

Application Form together with an updated Statement of Account to any 

Pag-IBIG NCR Branch/Regional Office. 

B. The borrower may opt to apply his Pag-IBIG savings or TAV to his outstanding 

loan balance to reduce the amount of loan to be restructured.

1922 


C. The loan arrearages to be restructured shall be considered as an additional 

loan and shall be covered by an amendment to the LMA and a new 

PN. The borrowerís ledgers for the original and the restructured loan shall 

be maintained independently. 

The amendment to the LMA shall be signed by the borrower and annotated 

on the TCT at the expense of the borrower. In case of tacked loans, 

the co-borrowers shall likewise be required to sign the amendment to the 

LMA and the new PN. 

D. Applicants for loan restructuring shall pay the following fees: 

1. Processing Fee of P200.00; 

2. First yearís premium for mortgage redemption and fire insurance; 

3. Registration, annotation and notarization expenses. 

Section 9. Period within which to Avail under this Rule. A housing loan 

borrower or in the event of his death, his heirs, or successors-in-interest 

may only avail of his right to apply for the condonation of penalties under 

this Rule up to March 31, 2001.î 

SECTION 2. All other provisions of the Rules and Regulations Implementing Republic 

Act No. 8501 not inconsistent with these amendments shall continue to be in full force and 

effect. 

SECTION 3. These amendments shall take effect fifteen days after its publication in a 

newspaper of general circulation. 

INSURANCE COMMISSION 


(SGD.) ATTY. WILFREDO E. NUESA 

Corporate Secretary 

Circular Letter No. 10-2000 

Premiums and Charges 

This Commission has received several inquiries and complaints regarding premiums 

and other fees being charged for various types of bonds. 

In this connection, surety companies are hereby required to follow strictly the Schedule 

of Rates for Bonds in accordance with Sec. 356 of the Insurance Code. Said premiums 

together with the other charges should be indicated on the face of the bond.


For new bond forms to be printed, blank spaces for the purpose must be provided. 

However, for bond forms already printed prior to the issuance of this Circular, the spaces 

may be indicated either by stamping or by pasting an appropriate form on the face of the 

bond. 




(SGD.) EDUARDO T. MALINIS 

Insurance Commissioner 

óo0oó 

Circular Letter No. 11-2000 

Joint Declaration on Ethical Business Standards 

and Its Implementing Guidelines 

To safeguard the interests of the insuring public as well as the stability of life insurance 

companies and promote professionalism among agents, the attached Joint Declaration together 

with its Implementing Guidelines (Text available at Office of the National Administrative 

Register, U.P. Law Center, Diliman, Quezon City) recommended by the Philippine Life 

Insurance Association is hereby issued for your guidance and compliance. 


(SGD.) EDUARDO T. MALINIS 

Insurance Commissioner 

KOMISYON NG KARERA SA PILIPINAS (Philippine Racing 

Commission) 


NOTICE 

Amendment to the Rule on Section 109 - 

Acts and/or Omissions of Jockeys 

Please be informed that the PHILRACOM Board in its meeting held on October 6, 

2000, resolved to amend Section 109 of the Horseracing Rules and Regulations, in accordance 

with the present system of race scheduling, to wit:

1924 


SECTION 109. ACTS AND/OR OMISSIONS BY JOCKEYS -The following are 

the penalties for acts and/or omissions by jockeys: 

BEFORE THE RACE: 

1. for failure to report any excess in his assigned weight for the horse he rides by suspension 

of at least two (2) racing days; 

New: for failure to report any excess in his assigned weight for the horse he rides, 

by suspension of at least one (1) racing week; 

2. for declaring to ride in more than eight (8) races in one week-end racing day and for more 

than five (5) rides for night racing and not correcting such fault before the first race of the 

day, by suspension of at least five (5) racing days or a fine of Five Hundred Pesos (P500.00) 

at the discretion of the Board of Stewards; 

New: for declaring to ride in more than ten (10) races in one week-end racing day 

and for more than eight (8) rides for night racing and not correcting such fault 

before the first race of the day, by suspension of at least one (1) racing week or 

a fine of Five Hundred Pesos (P500.00) at the discretion of the Board of Stewards; 

3. for not submitting the weighing out before the time fixed therefore, in accordance with 

Section 32.0 by suspension of at least five (5) racing days or a fine of P200.00; 

New: for not submitting the weighing out before the time fixed therefore, in accordance 

with Section 32.0 by suspension of at least one (1) racing week or a fine of 

P500.00; 

4. for refusing to wear his racing colors for the race without justifiable reasons, as determined 

by the Board of Stewards, as provided for the trainer, by suspension of at least two (2) 

racing days; 

New: for refusing to wear his racing colors for the race without justifiable reasons, 

as determined by the Board of Stewards, as provided for the trainer, by suspension 

of at least one (1) racing week or a fine of Five Hundred Pesos (P500.00); 

5. for not being fully dressed or for changing his blouse in full view of the public, by suspension 

of at least two (2) racing days, or a fine of at least One Hundred Pesos (P100.00) at the 

discretion of the Stewards; 

New: for not being fully dressed or for changing his blouse in full view of the 

public, by suspension of at least one (1) racing week, or a fine of at least Five 

Hundred Pesos (P500.00) at the discretion of the Stewards; 

6. for not keeping his assigned place at the starting apparatus, unless permitted to do so by 

the starter, by suspension of at least two (2) racing days; 

New: for not keeping his assigned place at the starting apparatus, unless permitted 

to do so by the starter, by suspension of at least one (1) racing week;


7. for being absent from the jockeyís quarters two (2) races before his ride, by suspension of 

at least five (5) racing days; 

New: for being absent from the jockeyís quarters two (2) races before his ride, by 

suspension of at least one (1) racing week; 

8. for communicating, talking or having contact with persons other than the officials of the 

PHILRACOM or club, upon leaving the saddling enclosure or paddock until the finish of the 

race, by suspension of at least twenty (20) racing days; 

New: for communicating, talking, or having contact with persons other than the 

officials of the PHILRACOM or club, upon leaving the saddling enclosure or 

paddock until the finish of the race, by suspension of at least five (5) racing weeks; 

9. for refusing to obey the orders of the starter, by suspension of at least ten (10) racing 

days; 

New: for refusing to obey the orders of the starter, by suspension of at least two 

(2) racing weeks; 

10. for non-observance of the rule governing the starting apparatus before and during the 

start of the race, by suspension of at least two (2) racing days; 

New: for non-observance of the rule governing the starting apparatus before and 

during the start of the race, by suspension of at least one (1) racing week; 

11. for failure to report for medical check up before every ride, shall be penalized as follows: 

a. for the first offense - fine of P100.00 

b. for the second offense - fine of P200.00 

c. for the third and succeeding offense 

thereafter - suspension of five racing days 

New: for failure to report for medical check up before every ride, shall be penalized 

as follows: 

a. for the first offense - fine of P200.00 

b. for the second offense - fine of P500.00 

c. for the third and succeeding offense 

thereafter - suspension of one racing day 

12. for non-appearance or refusal to ride a duly signed declared entry without justifiable 

cause, by an indefinite suspension but not less than one (1) month or fine of not less than 

P1,000.00 or both as the case may be; 

New: for non-appearance or refusal to ride a duly signed declared entry without 

justifiable cause, by an indefinite suspension but not less than four (4) racing 

weeks or fine of not less than P1,000.00 or both as the case may be; 

13. for failure to be properly attired or to be in proper uniform by a fine of Two Hundred 

Pesos (P200.00);

1926 


New: for failure to be properly attired or to be in proper uniform by a fine of Five 

Hundred Pesos (P500.00); 

14. for failure to employ the required cincha and surcingle, by a fine of One Hundred Pesos 

(P100.00); 

New: for failure to employ the required cincha and surcingle, by a fine of Five 

Hundred Pesos (P500.00); 

15. for failure to report any untoward incident to the starter regarding his mount, by a fine of 

Two Hundred Pesos (P200.00); 

New: for failure to report any untoward incident to the starter regarding his mount, 

by a fine of Five Hundred Pesos (P500.00); 

16. for unruly behaviour or conduct of his helper/s, by a fine of Two Hundred Pesos (P200.00); 

New: for unruly behaviour or conduct of his helper/s, by a fine of Five Hundred 

Pesos (P500.00); 

17. for creating a situation wherein the horses they are supposed to ride are scratched or/ 

are forced to have a jockey-change due to overweight, shall be penalized as follows: 

1st offense - P200.00 fine 

2nd offense - a suspension of four (4) racing days 

3rd offense - a suspension of eight (8) racing days 

4th offense - a suspension of sixteen (16) racing days 

5th offense - a suspension of thirty-two (32) racing days 

6th offense - a suspension of six (6) months 

New: for creating a situation wherein the horses they are supposed to ride are 

scratched or/are forced to have a jockey-change due to overweight, shall be 

penalized as follows: 

1st offense - P500.00 fine 

2nd offense - a suspension of one (1) racing day 

3rd offense - a suspension of two (2) racing days 

4th offense - a suspension of four (4) racing days 

5th offense - a suspension of eight (8) racing days 

6th offense - a suspension of twenty-six (26) racing weeks 

The above suspension shall be counted on a per ride basis. In other words, if a 

jockey is scratched three (3) times in one racing day due to overweight, he shall 

be suspended for an equivalent of three (3) offenses and so on. 

However, a jockey who does not commit an overweight violation within a period 

of twelve (12) months after he has served a suspension shall be considered as a 

rider with clean slate-meaning that all his previous suspensions for overweight 

violations shall be negated. Thereafter, succeeding overweight violations shall 

start all over again from first (1st) offense, so on.


18. for failure to carry his whip properly, by a fine of One Hundred Pesos (P100.00) which 

shall accrue to the PHILRACOM; 

New: for failure to carry his whip properly, by a fine of Five Hundred Pesos 

(P500.00) which shall accrue to the PHILRACOM; 

19. for not parading in numerical order before the Judgesí stand on the way to the starting 

apparatus, by a fine of Twenty Five Pesos (P25.00); 

New: for not parading in numerical order before the Judgesí stand on the way to 

the starting apparatus, by a fine of Two Hundred Pesos (P200.00); 

20. for refusing to ride his declared entry in the last race of an exotic betting scheme for 

unjustifiable excuse, by a suspension of at least six (6) months. 

New: for refusing to ride his declared entry in the last race of an exotic betting 

scheme for unjustifiable excuse, by a suspension of at least twenty- six (26) 

racing weeks; 

21. for refusing to mount a horse which he was declared to ride if he feels the horse is unfit 

to run despite the certification from the club and Philracom Veterinarians that the same is fit 

to run, no suspension shall be given to the jockey but the horse shall be indefinitely suspended 

subject to further examination by the Philracom and Club Veterinarians who shall 

certify as to the racing soundness of the horse (BR 96-26); 

22. it shall be the summary duty of a jockey atop a horse during the parade to report to the 

B.O.S. thru the starter any abnormality he feels and to ask for a re-inspection of his mount. 

A suspension of at least 20 racing days for negligence shall be imposed on the jockey if he 

fails to report it. (10-25-93) 

New: It shall be the summary duty of a jockey atop a horse during the parade to 

report to the B.O.S. thru the starter any abnormality he feels and to ask for a reinspection 

of his mount. A suspension of at least five (5) racing weeks for negligence 

shall be imposed on the jockey if he fails to report it. (10-25-93). 

DURING THE RACE: 

1. for unnecessarily brandishing, threatening or waving his whip on hand during the race, or 

grandstanding, by a suspension of at least two (2) racing days; 

New: for unnecessarily brandishing, threatening or waving his whip or hand during 

the race, or grandstanding, by a suspension of at least one (1) racing week or 

a fine of One Thousand Pesos (P1,000.00) 

2. for losing a race due to carelessness and/or over confidence and/or not obtaining the best 

possible position, by a suspension of at least five (5) racing days to forty (40) racing days; 

New: for losing a race due to carelessness and/or over confidence and/or not 

obtaining the best possible position by a suspension of at least one (1) racing 

week to ten (10) racing weeks;

1928 


3. for not allowing his horse to run on its own merits, and/or not obtaining the best possible 

placing and/or lack of interest by suspension of from forty-one (41) racing days to six (6) 

months; 

New: for not allowing his horse to run on its own merits, and/or not obtaining the 

best possible placing and/or lack of interest by suspension of from eleven (11) 

racing weeks to twenty six (26) racing weeks; 

4. for relaxing or pulling his mount before crossing the finish line, without prejudice to the 

betting public, by a suspension of ten (10) racing days or a fine of Six Hundred Pesos 

(P600.00) or both, at the discretion of the Board of Stewards; (11-24-94) 

New: for relaxing or pulling his mount before crossing the finish line, without 

prejudice to the betting public, by a suspension of two (2) racing weeks or a fine 

of One Thousand Pesos (P1,000.00) or both, at the discretion of the Board of 

Stewards; (11-24-94) 

5. for threatening to cross or weave in front of another, so as to actually impede it, by suspension 

of not more than six (6) months; 

New: for threatening to cross or weave in front of another, so as to actually impede 

it, by suspension of not more than twenty six (26) racing days; 

6. for deliberately bumping or jostling another horse towards the inner or outer rail, by 

suspension of not more than six (6) months; 

New: for deliberately bumping or jostling another horse towards the inner or outer 

rail, by suspension of not more than twenty-six (26) racing weeks; 

7. for deliberately striking, pushing, holding or otherwise detaining another horse or jockey, 

by suspension of not more than six (6) months; 

New: for deliberately striking, pushing, holding or otherwise detaining another 

horse or jockey, by suspension of not more than twenty six (26) racing months; 

8. for losing a race deliberately in any manner whatsoever; 

a. One-year suspension or 

b. One-year suspension with a recommendation of revocation of license depending 

on the gravity of the offense; 

9. for exchanging, borrowing or grabbing any racing equipment from any participating jockey 

during the course of the race, by a suspension of at least twenty (20) racing days; 

New: for exchanging, borrowing or grabbing any racing equipment from any 

participating jockey during the course of the race, by a suspension of at least five 

(5) racing weeks; 

10. for not carrying the whip in his hand or for tucking the same in his belt, hip pocket, or boot 

or bringing it in any manner other than as the rule prescribes, by a minimum fine of One 

Hundred Pesos (P100.00) which shall accrue to the PHILRACOM;


New: for not carrying the whip in his hand or for tucking the same in his belt, hip 

pocket, or boot or bringing it in any manner other than as the rule prescribes, by 

a minimum fine of Five Hundred Pesos (P500.00) which shall accrue to the 

PHILRACOM; 

11. for using his whip in an unorthodox or unusual manner to impede or obstruct another 

entry, by suspension of at least five (5) racing days; 

New: for using his whip in an unorthodox or unusual manner to impede or 

obstruct another entry, by suspension of at least two (2) racing weeks; 

12. for crossing, bumping or jostling another entry while coming out of the starting gate, 

within the first fifty (50) meters of the race, by a suspension of at least five (5) racing days; 

New: for crossing, bumping or jostling another entry while coming out of the starting 

gate, within the first fifty (50) meters of the race, by a suspension of at least 

one (1) racing week; 

13. Any jockey who jumps from his mount intentionally to lose the race shall be given a 

suspension of at least one (1) year and/or revocation of his license upon recommendation 

by the Board of Stewards. 

14. For riding a declared entry without previously exercising it unless he is just a replacement 

jockey, by a suspension of ten (10) racing days. (11-15-93) 

New: For riding a declared entry without previously exercising it unless he is just 

a replacement jockey, by a suspension of two (2) racing weeks 

AFTER THE RACE: 

1. for punishing his horse unnecessarily or committing undue act or cruelty upon it after the 

end of the race, by suspension of at least five (5) racing days; 

New: for punishing his horse unnecessarily or committing undue act or cruelty 

upon it after the end of the race, by suspension of at least one (1) racing week or 

a fine of Five Hundred Pesos (P500.00); 

2. for failure to salute after placing first, second, third or fourth, when crossing the Judges 

Stand after the race by a fine of Twenty-five (P25.00) Pesos, which shall accrue to the 

PHILRACOM; 

New: for failure to salute after placing first, second, third or fourth, when crossing 

the Judges Stand after the race by a fine of Two Hundred (P200.00) Pesos, 

which shall accrue to the PHILRACOM; 

3. for having less weight of more than 100 grams when weighed after the race, not having 

finished first, second or third, by a fine of Fifty Pesos (P50.00), which shall accrue to the 

PHILRACOM; 

New: for having less weight of more than 100 grams when weighed after the 

race, not having finished first, second or third, by a fine of Two Hundred Pesos 

(P200.00) which shall accrue to the PHILRACOM;

1930 


4. for leaving the weighing machine before his weight has been verified, by a suspension of 

at least ten (10) racing days; 

New: for leaving the weighing machine before his weight has been verified, by a 

suspension of at least two (2) racing weeks; 

5. for having less than the assigned weight after the race having finished first, by a minimum 

suspension of one year or banning from participating in future races. 

A suspension of at least six (6) months shall be imposed on jockeys for having less than 

the assigned weight after the race, having finished first, second, third or fourth; 

New: for having less than the assigned weight after the race having finished first, 

by a minimum suspension of one year or banning from participating in future 

races. 

A suspension of at least twenty six (26) racing weeks shall be imposed on jockeys 

for having less than the assigned weight after the race, having finished first, 

second, third or fourth; 

6. for refusing, when required, to be weighed after the race, not having finished first, second, 

third, or fourth, by suspension of at least forty (40) racing days; 

New: for refusing, when required, to be weighed after the race, not having finished 

first, second, third or fourth, by suspension of at least ten (10) racing weeks; 

7. for refusing to be weighed immediately after the end of the race, having finished first, 

second, third or fourth, by revocation of license. 

8. for having involved in fraudulent combinations or fixed races, by suspension of at least six 

(6) months; 

New: for having involved in fraudulent combinations or fixed races, by suspension 

of at least twenty six (26) racing weeks; 

9. for failure to inform the owner and/or trainer concerned of any suspension or order regarding 

the horse he rode, by suspension of five (5) racing days and/or fine in the amount of 

P100.00 which shall accrue to the PHILRACOM; 

New: for failure to inform the owner and/or trainer concerned of any suspension 

or order regarding the horse he rode, by suspension of two (2) racing weeks and 

or/fine in the amount of P1,000.00 which shall accrue to the PHILRACOM; 

10. for using any of his riding paraphernalia to complete his required handicap weight, by a 

fine of One Hundred Pesos (P100.00); 

New: for using any of his riding paraphernalia to complete his required handicap 

weight, by a fine of Five Hundred Pesos (P500.00);


11. Any jockey caught carrying an electronic device or apparatus immediately after the race 

shall be penalized at least twenty six (26) racing weeks in accordance with Section 107 par. 

F. 

MISCELLANEOUS: 

1. for disorderly conduct during a racing day, by suspension of at least twenty (20) racing 

days; 

New: for disorderly conduct during a racing day, by suspension of at least five (5) 

racing weeks; 

2. for entering the jockeyís compound or saddling enclosure without having a mount to ride, 

by suspension of at least forty (40) racing days, and if he is already under suspension, by an 

additional suspension of six (6) months; 

New: for entering the jockeyís compound or saddling enclosure without having a 

mount to ride, by suspension of at least ten (10) racing weeks, and if he is 

already under suspension, by an additional suspension of twenty six (26) racing 

weeks; 

3. for possessing or wearing spurs other than that previously submitted to and approved by 

the PHILRACOM as well as other device aside from the rosettes, blinkers, elastic bandages 

and defense against abrasion as standard equipment, with the intention of forcing, stimulating 

or urging his horse, by suspension of at least twenty (20) racing days; 

New: for possessing or wearing spurs other than that previously submitted to 

and approved by the PHILRACOM as well as other device aside from the rosettes, 

blinkers, elastic bandages and defense against abrasion as standard equipment, 

with the intention of forcing, stimulating or urging his horse, by suspension 

of at least five (5) racing weeks; 

4. for dismounting or alighting from his mount at the starting gate without justifiable cause or 

without the express permission of the Starter or Board of Stewards, by suspension of five (5) 

racing days; 

New: for dismounting or alighting from his mount at the starting gate without 

justifiable cause or without the express permission of the Starter or Board of 

Stewards, by suspension of one (1) racing week; 

5. for failure to use standard whip (28 inches or less from tip to tip) by a fine of One Hundred 

Pesos (P100.00) which shall accrue to the PHILRACOM. 

New: for failure to use standard whip (28 inches or less from tip to tip) by a fine of 

Five Hundred Pesos (P500.00) which shall accrue to the PHILRACOM; 

6. In case a jockey is suspended three (3) times within any period of three hundred sixty five 

(365) days from the date of his first offense and the penalty imposed for each offense is a 

suspension of at least twenty (20) racing days, he shall be given an additional penalty of six-

1932 


months suspension for any succeeding offenses committed within the same period provided 

the offense is penalized by a suspension of at least twenty (20) racing days; 

New: In case a jockey is suspended three (3) times within any period of three 

hundred sixty five (365) days from the date of his first offense and the penalty 

imposed for each offense is a suspension of at least five (5) racing weeks, he 

shall be given an additional penalty of twenty six (26) racing weeks suspension 

for any succeeding offenses committed within the same period provided the 

offense is penalized by a suspension of at least five racing weeks; 

7. A jockey who has been found positive for any of the prohibited drugs after confirmation by 

the Dangerous Drugs Board shall be banned for life from participating in any of the races as 

well as from exercising and riding horses within the premises of any racing clubs. (04-06- 

98). 

8. A jockey caught in possession of prohibited drugs shall be sent to the police authorities for 

investigation and prosecution. 

9. for possession of unauthorized racing equipment or paraphernalia, other than that approved 

by PHILRACOM, by a suspension of at least twenty (20) racing days. 

New: for possession of unauthorized racing equipment or paraphernalia, other 

than that approved by PHILRACOM, by a suspension of at least five (5) racing 

weeks; 

10. for committing an act contrary to good, fair and just racing conduct, during the race, 

which is not covered or penalized under the existing rules of racing shall, at the discretion 

of the Board of Stewards, suffer a suspension of at the least ten (10) racing days; 

New: for committing an act contrary to good, fair and just racing conduct, during 

the race, which is not covered or penalized under the existing rules of racing 

shall, at the discretion of the Board of Stewards, suffer a suspension of at least 

two (2) racing weeks; 

This rule shall take effect fifteen (15) days after publication. 



(SGD.) JUAN P. LOZANO 

Executive Director III 

óo0oó 

NOTICE 

Amendment to the Rule on Section 32 .0 (b-2) - Helmet 

and Whip in the Weigh-In and Weigh-Out of Jockeys


Please be informed that the PHILRACOM Board in its meeting held on October 13, 

2000 resolved to amend Section 32.0 (b-2) of the Horseracing Rules and Regulations, as 

requested by the Jockeyís Association, in accordance with the use of helmet, whip, and the 

number cloth in the weigh-in and weigh-out of jockeys, to wit: 

SECTION 32.0 - DUTIES AND FUNCTIONS OF THE CLERK OF SCALES - 

xx x x x x x x x xx: 

a. x x x x x x x x x; 

b. x x x x x x x x x; 

1. x x x x x x x; 

2. x x x x x x x; 

HELMET AND WHIP IN THE WEIGH-IN AND WEIGH-OUT OF JOCKEYS: 

In the weigh-in and weigh-out of jockeys, the HELMET and WHIP shall be 

INCLUDED if the required handicap weight of the jockey is 54 kgs. or above. But 

if the handicap weight required is below 54 kgs., the HELMET and WHIP shall be 

EXCLUDED. (BR 01-15-96). 

xx x x x x x x x x. 

Amending SECTION 32.0 (b-2), will now read as follows: 

xx x x x x x x x x; 

HELMET AND WHIP IN THE WEIGH-IN AND WEIGH-OUT OF JOCKEYS: 

In the weigh-in and weigh-out of jockeys, the HELMET, the WHIP, and the 

NUMBER CLOTH shall be EXCLUDED regardless of the prescribed handicap 

weight. The weight allowance of 1.5 kgs. shall be strictly observed. 





Executive Director 

óo0oó 

NOTICE 

Amendment to the Rule on Section 109- 

Acts and Omissions of Jockeys

1934 


Erratum 

Please be informed that amendment on Section 109 no. 5 on page 6 will now read as 

follows: 

DURING THE RACE 

ìxx xx xx xx xx xxî 

5. for threatening to cross or weave in front of another, so as to actually impede it, by suspension 

of not more than twenty-six (26) racing weeks. 





óo0oó 

NOTICE 

Amendment by Addition to the Vaccination Rules 

Please be informed that the Philracom Board in its meeting held on October 25, 2000, 

resolved to approve the following amendment by addition to the vaccination rules which 

shall take effect fifteen (15) days after publication. 

SECTION 41.1 - RESPONSIBILITY OF A TRAINER . 

x x x x x x x. 

a. x x x x x x ; 

b. x x x x x x; 

x x x x x x; 

k. The trainer must submit the vaccination record of horses 

under this trainership duly noted by a PHILRACOM Veterinarian 

within seven (7) days from date of vaccination. A penalty of Two 

Hundred (P200.00) pesos will be imposed for every week of 

delay until the same is submitted. 

SECTION 66.1 - ACCREDITED VETERINARIANS.- Licensed Veterinarians 

practicing their profession in the horse racing industry be accredited by 

the PHILRACOM and shall pay a corresponding fee of Three Hundred Fifty 

(P350.00) pesos annually.


SECTION 66.1a - ACCREDITED VETERINARIANíS REPORT - All accredited 

veterinarians should submit to the PHILRACOM the list of racehorses they 

have vaccinated, specifying the vaccine and date of application, and a list, 

if any, of horses diagnosed for diseases which may pose a threat or danger 

to the horseracing industry. 




Executive Director IIi 

óo0oó 

NOTICE 

Amendment by Addition to the Rules Section 4.4 - Stewards in Session 

Section 4.5 (i) - Powers and Duties of Stewards 

Please be informed that the Philracom Board in its meeting held on October 25, 2000 

resolved to amend by addition Sections 4.4 and 4.5 (i) of the Horseracing Rules and Regulations 

to wit: 

SECTION 4.4 - STEWARDS IN SESSION - The Board of Stewards shall remain in 

session and shall not adjourn after the last race of the day, until its report on the conduct of 

horses held in racing club shall have been submitted to the Philracom through the Racing 

Manager. 

SECTION 4.5 -POWERS AND DUTIES OF STEWARDS - The Board of Stewards 

shall have the following powers and duties: 

a. x x x x x; 

b. x x x x x; 

x x x x x; 

i. to submit to the PHILRACOM, through the Racing Manager, a written 

report on the conduct of the races held and the unusual incidents therein during 

the first non-racing day thereafter, unless or serious reasons more time is needed, 

in which case the PHILRACOM shall determine the deadline for submission of 

said report; 

x x x x x x; 

x x x x x x. 

Amending Sections 4.4 and 4.5 (i) will now read as follows: 

SECTION 4.4 - STEWARDS IN SESSION - The Board of Stewards shall remain 

in session and shall not adjourn after the last race of the day, until its report on the

1936 


conduct of horse races held in a Racing Club shall have been submitted to the Racing 

Manager. 

a. While in session, stewards shall not be allowed to leave their 

watch. Communications within and without shall be limited through the 

call box or public address system. The only exception being in cases of 

urgency. 

SECTION 4.5 (l) - POWERS AND DUTIES OF STEWARDS - The Board of Stewards 

shall have the following powers and duties: 

a. x x x x x; 

b. x x x x x; 

x x x x x; 

i. to complete and sign a written report (Stewardís Report) on the 

conduct of races and unusual incidents immediately after the race which 

will be submitted to the Racing Manager who shall submit the same to the 

PHILRACOM on the first non-racing thereafter. 

This rule shall take effect immediately. 





óo0oó 

NOTICE 

Addendum to the Rules: Section 109- 

Acts and Omissions of Jockeys 

The PHILRACOM Board in its meeting on November 10, 2000 resolved to amend 

SECTION 109 No. (5) Acts and/or Omissions of Jockeys - After the Race, by the addition of 

3rd and 4th paragraphs, which will now read as: 

SECTION 109. ACTS AND/OR OMISSIONS BY JOCKEYS - The following are 

the penalties for acts/or omissions by jockeys: 

AFTER THE RACE: 

x x x x x x x x x x; 

5. for having less than the assigned weight after the race having finished 

first, by a minimum suspension of one year or banning from participating in future 

races.


A suspension of at least twenty-six (26) racing weeks shall be imposed on 

jockeys for having less than the assigned weight after the race, having finished 

second, third or fourth; 

The same penalty shall be imposed, for carrying more than the assigned 

weight including the allowance of 1.5 kilos, unless such excess weight has 

been caused by rain or mud; 

Horses whose jockeys having less than the assigned weight having finished 

first, second, third or fourth shall be disqualified; 





LAGUNA LAKE DEVELOPMENT AUTHORITY 


RESOLUTION NO. 127, s. 2000 

Approving the Implementing Guidelines on the Development 

and Operation of On-Shore Facilities for Ferry System and 

Other Activities in the Laguna de Bay Region 

WHEREAS, in consideration of proposals to ply ferry boats in the Laguna de Bay to 

transport passengers and goods to lakeshore towns, the LLDA Board passed Resolution 

No. 67, Series of 1998, approving the Policy Framework Towards Operationalizing a Ferry 

System in the Laguna de Bay Region; 

WHEREAS, the LLDA Board further adopted Resolution No. 74, Series of 1998, approving 

the Policy Guidelines on the Operation of a Ferry System in the Laguna de Bay 

Region and Resolution No. 81, Series of 1998, approving the Implementing Rules and Regulations 

Governing the Operation of a Ferry System in the Laguna de Bay Region; 

WHEREAS, Section 7 of Board Resolution No. 81, Series of 1998, provides that certain 

on-shore structures, facilities/equipment may be established, installed and/or made available 

for use by the vessels for loading, unloading, refueling and other activities subject to 

separate clearance/permit from the LLDA and such other permit/clearance/license as required 

by other concerned government agencies and local government units; and 

WHEREAS, formulation of guidelines for the development and operation of aforesaid 

on-shore structures is necessary in support of the ferry system and other activities in the 

Laguna de Bay Region;

1938 


NOW, THEREFORE, for and in consideration of above premises, BE IT RESOLVED, 

as it is hereby RESOLVED, to approve the following the Implementing Guidelines on the 

Development and Operation of On-Shore Facilities for Ferry System and Other Activities in 

the Laguna de Bay Region: 

ARTICLE 1. Title. These guidelines shall be known and cited as the ìImplementing 

Guidelines on the Development and Operation of On-Shore Facilities for Ferry System and 

Other Activities in the Laguna de Bay Region.î 

ARTICLE 2. Statement of Policy. The Authority hereby declares an open policy on 

the development and operation of on-shore facilities within the Laguna de Bay Region. While 

the Authority has the exclusive jurisdiction over the shoreland areas of the said region and 

exercises primary responsibility to implement integrated and coordinated planning development, 

operation and control on facilities on the said shoreland areas, it encourages and 

allows private sector, local government units and other authorized government agencies to 

participate in the provision of on-shore facilities. When public interest so requires, the project 

may be opened for joint-venture agreement with both the LLDA and any of these participants 

as proponent or through the build-operate-transfer scheme or any of its variants. 

The implementation of these guidelines shall adhere to the following declared policies: 

a) The management and control of the use and/or occupancy of the shoreland areas and 

operation of ferry system shall be within the context of national socio-economic development 

plans and policies as well as environmental concerns; 

b) All shoreland areas lying below elevation 12.50 meters shall be maintained as buffer 

zones in consonance with the Authorityís policies, plans and programs for the management 

of the water quality, protection and conservation of the water resources of Laguna 

de Bay; and 

c) The development of on-shore facilities related to the operation of a ferry system and 

other activities in the region shall be pursued in consonance with the objectives of achieving 

the sustainable development of the lakeís water resources. 

ARTICLE 3. Scope and Coverage. These guidelines shall cover the following onshore 

facilties: 

a) Passenger/ferry terminals including wharves and piers; 

b) Radio or telecommunication and other related facilities; 

c) Garbage/sewage disposal and other sanitary facilities; 

d) Warehouse and cold storage facilities; 

e) Mooring/berthing facilities; and 

f) Other ancillary on-shore facilities. 

ARTICLE 4. Definition of Terms. For the purpose of these guidelines, whenever any 

of the following words, terms, phrases or abbreviations are used herein or in any amendment 

or supplementary thereto which may issued hereafter, they shall have the meaning 

ascribed in these guidelines:


a) Authorized Government Agency ñ government entity which by virtue of its charter is 

authorized to enter into joint venture agreements; 

b) Berth ñ the part of the pier/wharf that is occupied by a vessel, or a place where a vessel 

may tie up; 

c) Build-Operate-and-Transfer (BOT) Scheme ñ the project proponent carries out the 

financing, construction, operation and maintenance of an on-shore facility. It operates 

the facility over a fixed term during which it is allowed to charge facility users appropriate 

tolls, fees, rentals and charges not exceeding those specified in its contract. Such fees 

and charges should enable the proponent to recover its investment and to cover operating 

and maintenance expenses in the project. The facility is transferred to the government 

agency or LGU at the end of the fixed term which shall not exceed 50 years. 

The BOT scheme includes a supply-and operate situation with which the supplier of equipment 

and machinery also operates the facility. In the process, it transfers technology and 

provides training to Filipino nationals. 

d) BOT Variant ñ any of the following contractual arrangements by which on-shore facilities 

may be undertaken: 

Build-and-Transfer (BT) ñ the project proponent undertakes the financing and construction 

of on-shore facility. After its completion, the proponent turns it over to the implementing 

government agency/local government unit upon payment to the proponent, using 

an agreed schedule, of its total investment expended on the project plus a reasonable 

rate of return; 

Build-and-Lease-Transfer (BLT) ñ the project proponent is authorized to finance and 

construct on-shore facility. Upon its completion, the proponent turns it over to the agency/ 

LGU concerned on a lease arrangement for a fixed period. Ownership of the facility is 

automatically transferred to the agency/LGU after such period; 

Build-Own-and-Operate (BOO) ñ the proponent is authorized to finance, construct, 

own, operate and maintain on-shore facility, and in return, collect tolls, fees, rentals or 

other charges from facility users. The proponent which owns the assets of a facility may 

assign its operation and maintenance to a facility operator; 

Build-Transfer-and-Operate (BTO) ñ the concerned agency/LGU contracts out the 

building of an on-shore facility to a private entity on a turnkey basis. Once the facility is 

commissioned satisfactorily, the title is transferred to the implementing agency under an 

agreement; 

Contract-Add-and-Operate (CAO) ñ the proponent adds to an existing on-shore facility 

which is rented from the government. Thereafter, the proponent operates the expanded 

project over an agreed franchise period. There may or may not be a transfer 

arrangement on the added facility provided by the proponent; 

Develop-Operate-and-Transfer (DOT) ñ the right to develop an adjoining property is 

given to the proponent of a new on-shore facility/project to allow enjoyment of benefits 

created by investing in the project, such as higher property or rent values;

1940 


Rehabilitate-Operate-and-Transfer (ROT) ñ the proponent refurbishes, operates and 

maintains an existing on-shore facility over a franchise period. At the expiration of such 

period, the facility is turned over to the government; and 

Rehabilitate-Own-Operate (ROO) ñ an existing on-shore facility is turned over to the 

private sector to refurbish and operate with no time limitation imposed on ownership. As 

long as the operator does not violate its franchise, it can continue operating the facility. 

e) ECD ñ the Engineering and Construction Division of the LLDA; 

f) EPD ñ the Environmental Protection Division of the LLDA; 

g) Ferry System ñ a network of vessels including motorized boats of at least three (3) gross 

tonnage plying the designated navigational routes to carry people and goods across and 

within the Laguna de Bay, its tributaries and the Napindan Channel; 

h) Joint Venture Agreement ñ a consortium between or among private individuals/partnerships/corporations, 

LLDA and other government agencies for the financing, design, 

construction, operation and maintenance of on-shore facilities where members bind themselves 

to be jointly and severally responsible for the obligations of the proponent under a 

contract; 

i) Laguna de Bay Region ñ comprises the whole provinces of Rizal and Laguna, the cities 

of San Pablo, Pasay, Caloocan, Quezon, Manila, Marikina, Pasig, Muntinlupa, Antipolo 

and Tagaytay, the towns of Tanauan, Sto. Tomas and Malvar in Batangas, the towns of 

Silang and Carmona in Cavite, Lucban in Quezon and the towns of Taguig and Pateros in 

Metro Manila; 

j) LGU ñ Local Government Unit; 

k) On-Shore Facilities ñ passenger/ferry terminals including wharves and piers, radio or 

telecommunication and other related facilities, garbage/sewage disposal and other sanitary 

facilities, warehouse and cold storage facilities, mooring/berthing facilities, eco-tourism 

support facilities as may be required by the DOT such as medical facilities, parking 

space, food catering services/snack bars, information/orientation booth, souvenir shops 

and other on-shore facilities; 

l) PPA ñ Philippine Ports Authority; 

m) PPDD ñ the Planning and Project Development Division of the LLDA; 

n) Pier ñ any structure built into the lake but not parallel to the shoreland and includes any 

landing stage, stair, jetty, floating barge or pontoon and any bridge or other works connected 

therewith; 

o) PMD ñ the Project Management Division of the LLDA; 

p) Private Sector ñ specific individual, single proprietorship, partnership or corporation;


q) Project Proponent ñ any private individual, single proprietorship, partnership or corporation, 

whether local or foreign, or local government unit and, other government agencies 

which/who formally signifies intention to finance the engineering, design, construction, 

operation and maintenance of on-shore facilities and submits complete requirements for 

project proposals; 

r) SCO ñ the Special Concerns Office of LLDA; and 

s) Wharf ñ a continuous structure built parallel to or along the margin of the sea or alongside, 

canals, or waterways where vessels may lie along side to receive or discharge 

cargo, embark or disembark passengers or lie at rest. 

ARTICLE 5. Clearances/Permits for On-Shore Facilities. The development of onshore 

facilities including the use of equipment in the conduct of activities such as loading, 

unloading, refueling and others shall be required to secure: 

a) LLDA Clearance in accordance with Sections 4 (d) and 41 of R.A. 4850 as amended and 

its implementing rules and regulations; 

b) Discharge Permit, Authority to Construct and Permit to Operate Emission Source Installations, 

if applicable; 

c) Shoreland Occupancy Permit (SOP), if the site is an untitled shoreland area below 12.50meter 

elevation; 

d) Permit to Construct for new ferry landings as per PPA Administrative Order No. 06-95; 

and 

e) Other permits/clearances/licenses as required by other concerned agencies and LGUs. 

ARTICLE 6. Joint Venture Agreements. In the absence of any qualified private sector 

proponent, the LLDA may enter into a joint venture agreement with the private sector, 

local government units and/or other authorized government agencies for the development 

and operation of on-shore facilities or services only on on-shore projects or services that are 

not yet available or when public interest so dictates. Provided, further, that the LLDA shall 

have adequate representation in the management board of the joint venture company which 

shall be commensurate to its investment and other assets in the joint venture. The LLDA 

shall advertise proposed joint venture in a newspaper of general circulation. 

Section 1. Qualifications of Joint Venture Proponent. The joint venture proponent 

shall have the following basic qualifications: 

a) It must have proven track record in similar undertakings; 

b) It must have sufficient technical and financial capability to undertake the project; and 

c) Other qualifications as may be imposed by the LLDA. 

Section 2. Citizenship Requirement. The resulting Joint-Venture Company shall 

comply with the citizenship requirement of the Constitution of the Philippines and other existing 

laws.

1942 


ARTICLE 7. Institutional Arrangements with LGUs and/or Authorized Government 

Agencies. When no private sector proponent qualifies or signifies intention, the LLDA 

may enter into an institutional arrangement with LGUs and/or other authorized government 

agency through a Memorandum of Agreement/Understanding. 

ARTICLE 8. Build-Operate-Transfer Scheme and Other Variants. These guidelines 

are supplementary to the implementing guidelines, rules and regulations of R.A. 6957 

as amended by R.A. 7718 otherwise known as amended BOT Law. The private sector may 

be allowed to participate in the implementation of on-shore projects and services through 

the build-operate and transfer (BOT) scheme or any of its variants in accordance with the 

following guidelines: 

a) In general, only projects included in the Medium Term Public Investment Program (MTPIP) 

as approved by NEDA may be allowed for implementation under the BOT Law; 

b) Projects not listed in the MTPIP may also be allowed for BOT scheme under the ìunsolicited 

proposalî provision of the BOT Law, provided such proposals are consistent with the 

Laguna de Bay Master Plan; 

c) Requisites/requirements for proposals, either solicited or unsolicited, shall follow the Implementing 

Rules and Regulations of the BOT Law as amended. 

d) In the aforementioned cases, LLDAís decision to allow projects for implementation through 

BOT scheme or other variants shall consider the cost of pre-feasibility, feasibility and 

detailed engineering studies as part of the investment of the other contracting party/ies. 

Such cost of studies shall not exceed the rate as prescribed by NEDA. 

ARTICLE 9. Requirements for Project Proposals/Applications. All proposals/applications, 

whether for joint venture, BOT scheme or any variant thereof or inter-agency 

memorandum of agreement shall comply with requirements as imposed by the LLDA. 

Section 1. Individual Proponent. For individual proponent, requirements shall be 

covered by Article 5 of these guidelines. 

Section 2. Joint Venture Proponent. Proposal for joint venture shall be accompanied 

with a pre-feasibility study which includes the following components: 

a) Demand analysis based upon current and projected passenger and cargo traffic, passenger 

flow and other special/relevant traffic; 

b) Alternative technical schemes to meet present and future demand including assessment 

of the size, location and technical soundness of each option. This will deal with alternative 

types of structures, construction materials and methodology, project schedules and cost 

estimates; 

c) Implementing and operating cost of each alternative based on the types of operation and 

varying cargo handling systems to be adopted and equipment to be used; 

d) Quantification of economic benefits including but not limited to savings in vessel or cargo 

operations;


e) Benefit-cost analysis to determine Economic Internal Rate of Return (EIRR) and Financial 

Internal Rate of Return (FIRR) of each alternative; 

f) Plans/Drawing including: i) Site and vicinity plans, ii) Development plan 

Section 3. BOT Proponent. Proposals for BOT scheme shall comply with the requirements 

of the amended BOT Law, as follows: 

a) Technical Proposal to include: 

i) Technical soundness/preliminary engineering design consisting of engineering design 

consisting of engineering surveys, plans and estimates; construction methods and 

schedules; proposed project timeline; 

ii) Proposed organization, methods and procedures for operating and maintaining the 

completed facility; 

iii) Preliminary environmental assessment which indicates possible negative or adverse 

effects on the environment or proposed design and technology, and the corresponding 

corrective/mitigating measures; 

iv) Project cost including operating and maintenance cost requirements and proposed 

financing plan (proposed equity contribution, debt, etc); 

v) Other terms to enhance the proposal such as provisions allowing the government/ 

LLDA to share in revenues, less government guarantees, or reduction in the level of 

government/LLDA support; 

vi) Bid security in the form of cash, certified check, managerís check, letter of credit, or 

bank draft/guarantee issued by a reputable bank, or a surety bond callable on demand 

issued by an entity duly registered and recognized by the Office of the Insurance Commissioner 

and acceptable to the LLDA, or any combination thereof payable to the Authority 

in accordance with the following schedules: 

Required Bid Security Estimated Cost of Construction 

Not less than 2.0% of the estimated Less than P5.0 billion 

cost of construction 

Not less than 1.5% of the estimated cost 5.0 billion to 10.0 billion 

of construction but at least P100 million 

Not less than 1.0% of the estimated cost 10.0 billion and above 

of construction but at least P150 million 

The posting of the bid security is for the purpose of guaranteeing that the proposed 

contract awardee shall within seven (7) calendar days from receipt of the Notice of Award 

enter into contract with the LLDA and furnish the required performance security within the 

time prescribed therefor.

1944 


Bids and bid securities shall be valid for a period to be prescribed by the LLDA in the 

bidding documents but in no case beyond one hundred and eighty (180) calendar days 

from the date of opening of bids. 

vii) Other documents as may be required by the LLDA to support the technical proposal. 

b) Financial Proposal for those who will be qualified based on the evaluation of the technical 

proposal: 

i) For BOT, BOO, CAO, DOT, ROT, ROO and similar schemes: 

Proposed user tolls/fees/rentals/other charges; and 

Present worth of proposed user tolls/fees/rentals/other charges over the fixed 

term based on the prescribed discounting rate and foreign exchange rate. 

ii) For BT, BLT, BTO and similar schemes: 

Proposed amortization payments and repayment period; and 

Present worth of proposed amortization payments based on the prescribed 

discounting rate and foreign exchange rate. 

iii) For project where the LLDA, LGU and other concerned agencies require payment 

to be made by the project proponent to the government: 

Proposed payment scheme; and 

Prescribed present worth of proposed payments based on discounting rate and 

foreign exchange rate 

ARTICLE 10. Evaluation of Proposals. Proposals with complete requirements shall 

be evaluated following the procedural guidelines to be issued by the General Manager of the 

LLDA. Evaluation of BOT proposals, either solicited or unsolicited, shall follow the Implementing 

Rules and Regulations of the BOT Law, as amended, these guidelines and other 

pertinent regulations. The LLDA shall create a Joint Venture/BOT Committee for proper 

evaluation of the proposals. The Committee shall be chaired by the Assistant General Manager 

of the LLDA and composed of the officer-in-Charge (OIC) of the SCO, the Division 

Chiefs/OICs of PPDD, ECD, EPD, Legal Division, Finance Division and PMD as well as 

representatives from the Department of Tourism, Department of Public Works and Highways, 

PPA and the LGU where the on-shore facility is to be undertaken. 

ARTICLE 11. Requirements for Approved Proposal. For approved proposals, the 

following shall be required: 

a) Duly accomplished LLDA application form; 

b) Locational Clearance from the LGUs/MMDA/HLURB as the case maybe; 

c) Environmental Clearance Certificate from the DENR; 

d) Articles of Incorporation for corporations approved by the SEC; and


e) Shoreland Occupancy Permit from the LLDA (if the site is untitled lakeshore area of 

Laguna de Bay); 

f) Plans (size 50 cm x 90 cm) including site development and vicinity plans, drainage/sewer 

plan and layout all signed by the owner in addition to the civil/sanitary engineer who 

prepared the plans; 

g) Authority to Construct from the Philippine Ports Authority; 

h) Project Description/Engineerís Report on waste management (liquid, gaseous and solid) 

including plans pertinent to waste treatments and indicating explicitly design criteria, waste 

characterization, design calculation and treatment efficiency all signed by the owner in 

addition to the sanitary or chemical engineer or both who prepared the plans; 

i) Construction timetable; 

j) BOI registration for foreign or local proponents who/which intend to avail of BOI incentives; 

k) Other requirements as may be imposed by the Authority. 

ARTICLE 12. Procedures for the Issuance of Permits. Permits shall be issued in 

accordance with the existing Permitting Systems and Procedures (Annex 1). The LLDA 

shall provide the concerned LGU with a list of qualified proponents with issued permits. 

ARTICLE 13. Responsibility for Clearing of Structures and Relocation of Informal 

Settlers. Clearing of structures and relocation of informal settlers, if necessary, in areas 

where on-shore facilities will be developed/constructed shall be in accordance with existing 

laws, rules and regulations on eviction and demolition. 

ARTICLE 14. Final Provisions. 

Section 1. Monthly Reports. The Special Concerns Office shall submit to the General 

Manager a monthly report on all undertakings dealing with on-shore facilities/installations 

including, but not limited to, proposals for joint-venture, BOT scheme, status and progress 

of proposals under process or implementation, problems concerning implementation and all 

related information. The concerned LGU shall be furnished with a copy of the monthly report 

by the LLDA. 

Section 2. Penalty Clause. Violations of these guidelines shall be subject to implementing 

rules and regulations of R.A. 4850, as amended. 

Section 3. Separability Clause. Any provision or portion of these guidelines declared 

invalid or unconstitutional shall not affect its other provisions to which the declaration does 

not relate. 

Section 4. Repealing Clause. All LLDA orders, guidelines, circulars, rules and regulations 

inconsistent herewith are hereby repealed or amended accordingly.

1946 


ARTICLE 14. Effectivity. These guidelines shall take effect fifteen (15) days from the 

date of publication in a newspaper of general circulation. 

APPROVED. 

Adopted: 27 Jan. 2000 

(SGD.) JOSE D. LINA, JR. (SGD.) ROSELLER S. DELA PE—A 

Chairman Vice-Chairman 

(SGD.) ARTURO L. TIU (SGD.) BERNARDO F. SAN JUAN 

(SGD.) GODOFREDO C. VALERA (SGD.) ZENAIDA C. MAGLAYA 

(SGD.) NESTOR R. MIJARES IV (SGD.) JEJOMAR C. BINAY 

(SGD.) JOAQUIN G. MENDOZA Directors 

Directors 


Attested by: 

(SGD.) LORETA D. VILLARUZ 

Board Secretary V 

óo0oó 

Resolution No. 136, s. 2000 

Approving the Rules and Regulations on the Establishment, Safeguarding 

and Maintenance of Fish Sanctuaries Within Laguna de Bay 

WHEREAS, pursuant to Republic Act No. 4826 of 18 June 1966, the defunct Philippine 

Fisheries Commission was authorized to establish and maintain a fish sanctuary within Laguna 

de Bay in Rizal and Laguna Provinces; 

WHEREAS, the Laguna Lake Development Authority (LLDA) under its enabling legislations, 

Republic Act No. 4850 of 18 July 1966 and amended by Presidential Decree No. 

813 in 1975 and Executive Order No. 927 in 1983, has been tasked with the responsibility of 

implementing the declared national policy to promote and accelerate the development and 

balanced growth of the Laguna de Bay, and by virtue of this mandate, the LLDA has been 

authorized to manage and control all development activities in the Laguna de Bay Region 

including the establishment and maintenance of fish sanctuaries in the aforementioned lake; 

WHEREAS, by virtue of the aforestated LLDA Charter as amended, the Authority has 

taken over such functions and responsibilities over fish sanctuaries in Laguna de Bay from 

the defunct Philippine Fisheries Commission; 

WHEREAS, the LLDA, pursuant to its mandate, shall carry out the declared policy of 

the State to ensure the optimum development as well as the judicious disposition, management, 

renewal and conservation of the regionís fishery and other natural resources for the 

benefit of the stakeholders, consistent with the necessity of maintaining sound ecological


balance and protecting and enhancing the quality of the environment and the objective of 

making the development and utilization of such natural resources equitably accessible to 

the different segments of the regionís population in the present and future generations; 

WHEREAS, it is a declared policy of the State that Local Government Units shall be 

effective partners in the management of the countryís natural resources; 

WHEREAS, management of natural resources should always be a multi-sectoral concern; 

collective effort is the key to rehabilitate, conserve and enhance the ecological condition 

of our natural resources and the State recognizes the importance and participation of all 

concerned sectors in the Laguna de Bay Region; 

WHEREAS, for the effective management of fish sanctuaries in the lake, there is a 

need to formulate rules and regulations on the establishment, safeguarding and maintenance 

of fish sanctuaries; 

NOW, THEREFORE, foregoing premises considered, BE IT RESOLVED, as it is hereby 

RESOLVED, to adopt the following rules and regulations: 

Section 1. Title. These rules shall be known and cited as the ìRules and Regulations 

on the Establishment, Safeguarding and Maintenance of Fish Sanctuaries Within Laguna de 

Bay.î 

Section 2. Statement of Purpose. The purpose of these rules is to provide the guidelines 

and regulations governing the establishment and management of specific reserved 

area/s in Laguna de Bay intended solely to maintain or preserve fish and other similar aquatic 

life, rehabilitate or restore depleted fishery areas and support fish population in adjacent 

lake areas where fishing is allowed. 

Section 3. Definition of Fish Sanctuary. For the purpose of these rules and regulations, 

a fish sanctuary refers to a designated protected area where fish and other aquatic life 

are able to spawn, feed and grow undisturbed and where fishing and other activities that 

may damage the ecosystems of the area are absolutely prohibited. 

Section 4. Description of Fish Sanctuaries in Laguna de Bay. The fish sanctuaries 

within the Laguna de Bay are hereby set inside and established within the body of water 

formed by imaginary straight lines under the following technical descriptions: 

1. 5,000 has. Rayap Fish Sanctuary, Talim Island 

Beginning at point marked ì1î being Bay Island: 

Thence N 34 o 30í W ñ 8,100 meters to point 2 

Thence N 46 o 30í E ñ 2,390 meters to point 3; 

Thence N 37 o 00í E ñ 1,395 meters to point 4; 

Thence N 11 o 00í E ñ 2,675 meters to point 5; 

Thence S 81 o 00í E ñ 3,440 meters to point 6; 

Thence S 02 o 30í W ñ 3,490 meters to point 7; 

Thence S 25 o 00í E ñ 1,180 meters to point 8; 

Thence S 18 o 30í W ñ 7,420 meters to point 1;

1948 


2. 126.27 has. Tabon Fish Sanctuary 

Beginning from point marked ì1î being S 65 o 41í 20î W ñ 1,362.451 m; 

Thence N 63 o 56í 23î E ñ 1,304.39 m to point 2; 

Thence S 31 o 1í 24î E ñ 1,048.114 m to point 3; 

Thence N 76 o 10í 33î W ñ 1,605.162 m to point 4; 

Thence N 12 o 12í 19î W ñ 725.081 m to point 1. 

3. 30.12 has. Muntinlupa Fish Sanctuary 

Beginning from point marked 1 being S 44 o 31í 30î ñ 105.502 m.: 

Thence S 89 o 46í 25î E ñ 500.976 m to point 2; 

Thence S 0 o 3í 59 E ñ 605.172 m to point 3; 

Thence N 89 o 7í 43î W ñ 499.329 m to point 4; 

Thence N 0 o 13í 47î W ñ 5999.558 m to point 1. 

Section 5. Coordination with Local Government Units and Other Government 

Agencies. The LLDA shall exercise policy setting and administrative functions over the 

established fish sanctuaries. It shall coordinate its efforts with the Bureau of Fisheries and 

Aquatic Resources of the Department of Agriculture (DA- BFAR), the Municipalities of 

Binangonan, Cardona, Jala-Jala in the Province of Rizal, the City Government of Muntinlupa 

and the Municipality of Bay in the Province of Laguna in the management, safeguarding and 

maintenance of fish sanctuaries in Laguna de Bay. 

Section 6. Law Enforcement. The LLDA shall coordinate with the Philippine National 

Police-Maritime Command (PNP-MariCom) and the Philippine Coast Guard (PCG) which 

shall take the lead in the enforcement of fishery laws for the sustainable management of fish 

sanctuaries in collaboration with the concerned LGUs. Other law enforcement agencies 

shall provide support and assistance to the PNP-MariCom and the PCG for the effective 

enforcement of fisheries laws in Laguna de Bay. 

Section 7. Prohibitions. These acts are prohibited under these rules and regulations. 

No person, natural or juridical, shall: 

a. Undertake fishing operation in any manner within the above-described area; 

b. Throw or dispose into the sanctuary, any organic or inorganic matter or any liquid substance 

which may cause pollution therein; and 

c. Destroy or in any way damage any material, equipment and/or improvement installed 

therein for the purpose of the fish sanctuaries. 

Section 8. Penal and Civil Liability Clause. Any person, natural or juridical, who 

shall violate any of the provisions of these rules and regulations, particularly Section 7 hereof, 

shall be held liable under the existing penal provisions of R.A. 4850, as amended. 

The Authority shall impose an administrative fine of Five Thousand Pesos (P5,000.00) 

to the violators of the foregoing rules and regulations after due notice and hearing. If the


violator is a corporation, partnership or association, the officers of the organization concerned 

shall be held liable thereof. 

The Authority shall likewise pursue separate civil actions for damages resulting from 

infractions of these rules and regulations. 

Section 9. Amendments. These rules and regulations may be amended and/or modified 

by the Authority at any time. 

Section 10. Effectivity. These rules and regulations shall take effect fifteen (15) days 

after publication in a newspaper of general circulation. 

APPROVED. 




(SGD.) ARTURO L. TIU (SGD.) GODOFREDO C. VALERA 

(SGD.) EMMANUEL B. CADAYONA (SGD.) ZENAIDA C. MAGLAYA 




Attested by: 



óo0oó 

Resolution No. 137, s. 2000 

Adopting Certain Provisions of Republic Act No. 8550 and its Implementing 

Rules and Regulations and Approving Clarificatory Guidelines Thereof 

WHEREAS, Republic Act No. 8550, otherwise known as the Philippine Fisheries Code 

of 1998, was enacted by the Tenth Congress of the Republic of the Philippines on 25 February 

1998, ìÖProviding for the Development, Management and Conservation of the Fisheries 

and Aquatic Resources, Integrating All Laws Pertinent Thereto and For Other Purposesî; 

WHEREAS, Article II of Chapter III of the said law mandates the creation of Fisheries 

and Aquatic Resources Management Councils (FARMCs) in the national level and in all 

municipalities/cities abutting municipal waters with the assistance of the Local Government 

Units (LGUs) and other government entities; 

WHEREAS, Republic Act No. 8550 likewise directed other government agencies such 

as the LLDA to extend technical assistance to the FARMCs which shall include among

1950 


others, the formation and strengthening of fisherfolks organizations and the provision of 

other services as may be deemed necessary; 

WHEREAS, the Department of Agriculture under its Administrative Order No. 3, Series 

of 1998, issued the Implementing Rules and Regulations of the Philippine Fisheries 

Code of 1998, including among others, Rule 69.1 thereof relating to the creation of the Inter- 

Sectoral Committee to formulate the organizational guidelines on the formation of FARMCs; 

WHEREAS, the Department of Agriculture issued Fisheries Administrative Order No. 

196 on January 21, 2000 specifying the Guidelines on the Creation and Implementation of 

Fisheries and Aquatic Resources Management Councils which provides in Sec. 23 thereof 

that Special Agencies, such as the LLDA, shall integrate the plans and policies formulated 

by FARMCs into their agency/corporate policies and plans of operation for implementation; 

WHEREAS, on 21 October 1998, the Inter-Agency Coordinating Council (IACC) for 

FARMC Operation in Laguna de Bay was formed to serve as a coordinating and consultative 

body on the implementation of the Philippine Fisheries Code of 1998 in Laguna de Bay 

and collaborate towards a cohesive implementation of FARMC activities; 

WHEREAS, the LLDA as the lead agency has initiated various activities leading to the 

formation, effective operation and integration of the Laguna de Bay Integrated Fisheries and 

Aquatic Resources Management Council (LdBFARMC); and 

WHEREAS, in the effective implementation in the Laguna de Bay Region of Fisheries 

Administrative Order No. 196, Guidelines on the Creation and Implementation of Fisheries 

and Aquatic Resources Management Councils, there is a need to formally adopt said provision 

and issue clarificatory guidelines to serve as basic frame of reference for the IACC in 

the organization, operation and integration of the FARMCs; 

NOW, THEREFORE, foregoing premises considered, BE IT RESOLVED, as it is hereby 

RESOLVED, to adopt Article II of Chapter III of Republic Act No. 8550, otherwise known as 

the Philippine Fisheries Code of 1998, FAO 196, Guidelines on the Creation and Implementation 

of FARMCs and approve the following clarificatory guidelines on the implementation 

of the said provision in the Laguna de Bay Region: 

ARTICLE I 

TITLE, OBJECTIVES AND DEFINITION 

Section 1. Title. These guidelines shall be known and cited as ìAdopting Certain Provisions 

of Republic Act No. 8550 and its Implementing Rules and Regulations as provided in 

Fisheries Administrative Order No. 196 and Approving Clarificatory Guidelines Thereof.î 

Section 2. Objectives. These Guidelines aim to achieve the following objectives: 

1. Develop a set of systems and procedures in the integration and operation of FARMCs in 

the Laguna de Bay Region; 

2. Re-identify responsibilities of agencies concerned in the operation of FARMCs and 

strengthen networking and linkaging among coordinating agencies;


3. Institutionalize the operation of FARMCs in the Laguna de Bay Region. 

Section 3. Definition of Terms. For the purpose of these guidelines, whenever any of 

the following words, terms, phrases or abbreviations are used herein or in any amendment 

or supplementary thereto which may be issued hereafter, they shall have the meaning ascribed 

in these guidelines: 

1. Agreement ñ the joint undertaking stipulated in the Memorandum of Agreement signed 

by the members of the Inter-Agency Coordinating Council on FARMC Implementation in the 

Laguna de Bay Region. 

2. Authority or LLDA ñ the Laguna Lake Development Authority which is one of the ìother 

government entitiesî referred to in R.A. No. 8550. 

3. Crater Lakes ñ the Seven Lakes of San Pablo City and Tadlak Lake in Los BaÒos, 

Laguna. 

4. DA-BFAR Region IV ñ Department of Agriculture-Bureau of Fisheries and Aquatic Resources 

Region IV (Southern Tagalog Region). 

5. FARMC ñ The Fisheries and Aquatic Resource Management Council. 

6. Fisherfolks ñ people directly or personally and physically engaged in taking and/or 

culturing and processing fishery and/or aquatic resources. 

7. Fisherfolk Cooperative ñ a duly registered association of fisherfolk with a common 

bond of interest, who have voluntarily joined together to achieve a lawful common social or 

economic end, making equitable contribution to the capital requirements and accepting a 

fair share of the risks and benefits of the undertakings in accordance with universally accepted 

cooperative principles. 

8. Fisherfolks Organizations ñ an organized and legitimate group, association, federation, 

alliance or institution of fisherfolks which has at least fifteen (15) members, a set of 

officers, constitutions and by-laws, an organizational structure and a program of action. 

9. Fisheries ñ all activities relating to the act or business of fishing, culturing, preserving, 

processing, marketing, developing, conserving and managing aquatic resources and the 

fishery areas, including the privilege to fish or take aquatic resources thereof. 

10. Fishery Operator ñ one who owns and provides the means including the land, labor, 

capital, fishing gear and vessel but not personally engage in fishery. 

11. Fishworker ñ A person regularly or not regularly employed in commercial fishing and 

related industries whose income is either in wage, profit sharing or stratified sharing basis, 

including those fish vendors, working in fish pens, fish cages, fish corrals/traps and fishponds. 

12. Inter-Agency Coordinating Council ñ a body composed of the Laguna Lake 

Development Authority, Commission on Human Rights Region IV, Department of Agriculture- 

Bureau of Fisheries and Aquatic Resources Region IV, Department of Interior and Local

1952 


Government Region IV, Department of Justice Region IV, Fisherfolk organization and 

concerned Local Government Units in the Provinces of Laguna, Rizal and National Capital 

Region which is tasked to ensure the substantial implementation of the Fisheries Code of 

1998 in the Laguna de Bay Region. 

13. Laguna Lake or lake ñ the Laguna de Bay 

14. Laguna de Bay Region ñ comprises the whole Provinces of Rizal and Laguna, the 

cities of San Pablo, Pasay, Caloocan, Quezon, Manila, Marikina, Pasig, Muntinlupa, Antipolo 

and Tagaytay, the towns of Tanauan, Sto. Tomas and Malvar in Batangas, the towns of 

Silang and Carmona in Cavite, Lucban in Quezon and the towns of Taguig and Pateros in 

Metro Manila; 

15. National Capital Region or NCR ñ the cities and municipalities of Metro Manila that fall 

within the jurisdictional boundary of Laguna de Bay Region namely, Muntinlupa, Taguig, 

Pateros and Pasig. 

16. NGOs ñ legitimate Non-Governmental Organizations directly involved in fishery related 

activities within the Laguna de Bay Region. 

17. POs ñ legitimate peopleís organizations directly involved in fishery related activities 

within the Laguna de Bay Region. 

ARTICLE II 

CREATION OF THE FISHERIES AQUATIC RESOURCES MANAGEMENT COUNCILS 

Section 4. Organization Guidelines. The FARMCs in the Laguna de Bay Region 

shall be formed by fisherfolks organizations, cooperatives and Non-Government Organizations 

in the locality and shall be assisted by the Local Government Units and the LLDA. 

Before organizing the FARMCs, the LLDA, LGU, NGOs, fisherfolks and other concerned 

POs shall undergo consultation and orientation on the formation of FARMC. 

Section 5. Barangay Fishery Aquatic Resource Management Council (BFARMC). 

The BFARMC shall be organized in all lakeshore barangays in Laguna de Bay Region. The 

BFARMCs shall serve in an advisory capacity to the LGUs and the LLDA. 

Section 6. Integration of Municipality/City FARMCs. For each lakeshore town around 

Laguna de Bay, the BFARMCs shall consolidate/federate into a Municipal/City FARMC. The 

latter shall then integrate into a province-wide FARMC to form the Integrated Rizal FARMC, 

Integrated Laguna FARMC and Integrated Metro Manila FARMC. Consequently, the three 

province-wide FARMCs shall constitute the Laguna de Bay Integrated FARMC (LdBIFARMC). 

Section 7. FARMCs for the Seven Crater Lakes of San Pablo City, Nagcarlan and 

Rizal, Laguna. For the Seven Crater Lakes of San Pablo City, Nagcarlan and Rizal, Laguna, 

the BFARMCs in each lake shall consolidate/federate to form the Lakewide FARMC 

(LFARMC). The Lakewide FARMC shall then integrate to form the Seven Lakes Integrated 

FARMC (SLIFARMC). 

Section 8. Composition of BFARMC and LFARMC. The BFARMC and the LFARMC 

shall be composed of the following:


a) Representative from the Barangay Development Council 

b) Chairperson ñ Committee on Agriculture and Fisheries 

c) Representative from the accredited Non-Government Organizations (NGO) 

d) Representative from the Private Sector 

e) Representative from the Municipal Agricultural Office 

f) At least eleven (11) barangay fisherfolk representatives which include representatives 

from youth and women sectors. 

Section 9. Functions of BFARMC and LFARMC. The BFARMC and LFARMC shall 

have the following functions: 

1. Assist in the preparation of the integrated fishery development plan in coordination with 

the concerned Barangay Development Council and Municipal FARMCs; 

2. Advise the concerned Sangguniang Barangay/Bayan/Lungsod in fishery matters through 

its Committee on Fisheries; 

3. Recommend for the enactment of the integrated fishery ordinances to the concerned 

Sangguniang Barangay and Sangguniang Pambayan/Panlungsod through their respective 

Committee on Fisheries and the LLDA; 

4. Assist in the enforcement of fishery laws, rules and regulations in the particular lake 

where they operate; 

5. Perform such other functions which may be assigned by the concerned Sangguniang 

Barangay/Bayan/Lungsod and the LLDA. 

Section 10. Municipal/City Fishery Aquatic Resource Management Council 

(MFARMC/CFARMC). The MFARMC/CFARMC shall be created in each of the lakeshore 

municipalities and cities and shall serve in advisory capacity to the LGUs and the LLDA. 

Section 11. Composition of MFARMCs. The MFARMCs shall be composed of the 

following: 

a) Municipal/City Planning and Development officer 

b) Chairperson, Committee on Fisheries and Agriculture of the Sangguniang Bayan/Lungsod 

c) Representative of the Municipal/City Development Council 

d) Representative of accredited Non-Government Organizations 

e) Representative from the Private Sector 

f) Representative from the Municipal/City Agricultural Office 

g) At least eleven fisherfolks representatives to be composed of seven barangay fisherfolks 

representatives which include representatives from youth and women sectors.

1954 


Section 12. Functions of the MFARMC. The MFARMC shall have the following 

functions: 

1. Assist in the preparation of the municipal fishery development plan in coordination with 

the Municipal Development Council; 

2. Advise the Sangguniang Bayan/Lungsod on fishery matters through its Committee on 

Fisheries, if such has been organized; 

3. Recommend for the enactment of municipal fishery ordinances to the Sangguniang Bayan/ 

Lungsod through its Committee on Fisheries; 

4. Assist in the enforcement of fishery laws, rules and regulations in municipal waters; and 

5. Perform such other functions which may be assigned by the Sangguniang Bayan/ 

Panlungsod. 

Section 13. Province-Wide Integrated Fisheries and Aquatic Resource Management 

Councils (PIFARMCs) and Integrated Lakewide FARMC (ILFARMC). The 

PIFARMCs and ILFARMCs shall be created in the provinces of Laguna, Rizal and Metro 

Manila. 

Section 14. Composition of PIFARMC and ILFARMC. The PIFARMC and ILFARMC 

shall be composed of the following: 

a) Chairperson of the Committee on Agriculture and Fisheries of the concerned municipalities/cities/provinces; 

b) Development officer of the concerned Municipality/City/Province; 

c) One representative from the accredited NGOs; 

d) One representative from the Private Sector; and 

e) Chairperson of each Barangay/Municipal/City FARMC within the lake area. 

Section 15. Functions of the PIFARMC and ILFARMC. The PIFARMC and ILFARMC 

shall have the following functions: 

1. Assist in the preparation of the integrated fishery development plan in coordination with 

the concerned provincial development councils; 

2. Recommend for the enactment of integrated fishery ordinances to the concerned 

Sangguniang Panlalawigan through its Committee on Fisheries, if such has been organized; 

3. Assist in the enforcement of fishery laws, rules and regulations in the lake and its watershed;


4. Advise the concerned Sangguniang Panlalawigan on fishery matters through its Committee 

on Fisheries, if such has been organized; 

5. Perform such other functions which may be assigned by the concerned Sangguniang 

Panlalawigan. 

Section 16. The Laguna de Bay Integrated FARMC. The Laguna de Bay Integrated 

FARMC hereinafter referred to as LdBIFARMC shall be created as an advisory/recommendatory 

body to the Inter-Agency Coordinating Council (IACC) and the Authority. 

Section 17. Composition. The Laguna de Bay Integrated FARMC shall be composed 

of the following: 

1. Chairperson of the Committee on Agriculture and Fisheries of the Provinces of Rizal and 

Laguna; 

2. One Fisheries officer each from the provinces of Rizal, Laguna and National Capital 

Region; 

3. One representative each from the Provincial Government of Rizal and Laguna and Metro 

Manila; 

4. One representative from accredited Non-Government Organizations (NGO) to be determined 

by the DA-BFAR Region IV and the LLDA; 

5. One representative from Private Organizations to be determined by the DA-BFAR Region 

IV, LLDA and the LdBIFARMC; 

6. Five representatives each from the MFARMC of the Provinces of Laguna, Rizal and 

NCR. 

Section 18. Functions. The LdBIFARMC shall have the following functions: 

1. Assist the Laguna Lake Development Authority in the formulation of regional policies for 

the protection, sustainable development and management of the fishery and aquatic resources 

of the lake; 

2. Recommend to the Authority the enactment of integrated fishery ordinances in Laguna 

de Bay; and 

3. Perform such other functions that may be assigned by the Authority. 

ARTICLE 3 

MEMBERSHIP, QUALIFICATION AND TERMS OF OFFICE 

Section 19. Membership. The Selection Criteria for regular members of FARMCs 

pursuant to Section 11 of the FAO No. 196 are hereby adopted: 

a. For fisherfolks/fishworker members: The fisherfolks/fishworker members shall include 

the youth and women sectors. They shall belong to a fisherfolks organizations/cooperative/

1956 


association duly accredited by the LGU; they must carry an endorsement from their 

respective organization/cooperative/association that they are their duly designated 

representative to the FARMC; residents of the barangay/municipality/city for at least one 

(1) year, engaged in fishing or fish culture/processing as their main source of livelihood; 

and with good moral character and reputation in the community. 

b. Representatives from the youth and women sectors must come from fisherfolks youth 

and women organizations duly accredited by the LGU. 

c) For representatives from the NGOs and the private sector, they shall be endorsed/recommended 

by fisherfolk organizations based on their involvement, expertise in fisheries 

and track record in helping municipal fisherfolk and in protecting the fisheries and aquatic 

resources. 

d) Commercial fishing operators who shall be members of the FARMC shall be nominated 

by a duly recognized association of the Commercial Fishing Sector. If there are no resident 

commercial fishers in the city/municipality, associations of commercial fishing operators 

from a neighboring city/municipality may nominate a representative. If after three 

consultations/meetings of the FARMC and the commercial fishing sector fails to send 

their representative, the slot shall be given fisherfolks members. 

e) Where the memberships of FARMCs exceed the above allocated minimum, the proportion 

of fisherfolks member vis-‡-vis that of the commercial fishing members shall be maintained. 

f) The representative from the DA to the M/CFARMC shall come from the devolved DA 

fisheries personnel of the concerned LGU. 

Section 20. Officers. All FARMCs shall elect from among the fisherfolks representatives 

their set of officers consisting of a Chairperson, Vice-Chairperson, Secretary, Treasurer, 

Auditor, Public Relations Officer and two (2) Sergeant-at-Arms. 

Section 21. Term of Office. Elected officers of FARMC shall serve for a period of two 

(2) years. They may be elected for two succeeding terms after which there will be no reelection. 

Section 22. By Laws. The FARMC officers with two-thirds vote of its members shall 

set its by-laws consistent with the overall objectives of the Philippine Fisheries Code of 1998 

(RA 8550), the LLDA (RA 4850) and the Local Government Code (RA 7160). 

Section 23. Structural Frameworks. The provisions under Section 13, FAO 196 are 

hereby adopted for consistency and clarity: For a more effective Council, the FARMCs may 

adopt the following: First Level ñ the Council to be assisted by an advisory body; and the 

Second Level ñ task forces/committees/services (Figure 1). The advisory body shall be 

selected from the academe and research institution, national government agencies, local 

government units, NGOs and POs based on their involvement, expertise in fisheries and 

track record in helping the fisherfolks. The FARMCs may be assisted and supported by a 

Secretariat to be appointed by the Council.


The task forces/committees/services that will be created in support to the operational 

activities of the FARMC may include, but not limited to the following: law enforcement (or 

bantay dagat/lawa/kalikasan) and prosecution, rehabilitation and conservation, livelihood, 

research, education and training, legislative, pollution control, land and water use/zonation 

and resettlement. 

ARTICLE 4 

CREATION OF A COMELEC AND A TECHNICAL COMMITTEE 

Section 24. Committee on Election. The election of all FARMC officers in the region 

shall be governed by the rules and regulations to be formulated and administered by the 

Committee on Election (COMELEC). The COMELEC shall be composed of representatives 

from the LLDA and the DA-BFAR Region IV. 

Section 25. Creation of a Technical Committee. A Technical Committee shall be 

created to review the mechanics of the election and the Implementing Rules and Regulations 

(IRR) for the operation of the FARMCs in the Laguna de Bay Region. 

Section 26. Membership of the Technical Committee. A seven-member Technical 

Committee shall be composed of the LLDA as the Chairman, DA-BFAR Region IV as the 

Vice-Chairman and one member representative each from the Provincial Government of 

Rizal, Laguna and NCR, the Regional Fisherfolks Representative and the Chairperson of 

the Laguna de Bay Integrated FARMC. 

ARTICLE 5 

SOURCE OF FUNDS FOR OPERATION 

Section 27. Appropriation of Funds. Legitimate FARMCs shall be appropriated 

funds by the DA and the LGUs and subsidy from the Aprofishtech Fund of the Department of 

Agriculture as provided in Sections 79, 109 and 112, Chapter VII of the Code. 

Section 28. LLDA Fund. The LLDA shall appropriate from its corporate funds the 

necessary financial assistance for the operation of the Laguna de Bay Integrated FARMC or 

LdBIFARMC upon approval of the LLDA Board of Directors subject to the availability of 

funds and to the existing rules and regulations. 

Section 29. Allocation from the LGUs Fishpen/Fishcage Fee Share. From the 

fishpen fee share released by the LLDA, the Local Government Units shall allocate funds to 

the FARMC the amount of which shall be mutually agreed upon by two parties. The FARMCsí 

fishcage fee share shall be distributed in accordance with the allocation scheme approved 

by the LLDA Board of Directors upon the recommendation of the LLDA General Manager. 

Section 30. Fund Administration. All appropriated fund shall be administered by the 

FARMCs through their respective offices subject to the existing government auditing and 

accounting rules and regulations. 

Section 31. Fund Releases. Releases of funds for the FARMC operations shall be 

based on the annual work program and budget of the FARMCs to be approved by its officers. 

The same shall be submitted to the LLDA and other concerned agencies/LGUs three 

months before the closing of the fiscal year.

1958 


ARTICLE 6 

LAW ENFORCEMENT 

Section 32. Law Enforcement. The Technical Committee shall initiate the formulation 

of law enforcement program in the Laguna de Bay and crater lakes including but not 

limited to activities such as training, regular monitoring and surveillance, information campaign 

through proper coordination and team efforts for review by the Technical Committee. 

Aside from the LLDA, the Technical Committee shall ensure involvement of other agencies 

concerned in the Laguna de Bay Region such as the Local Government Units (LGUs), Department 

of Agriculture (DA), Department of Justice (DOJ), Department of Interior and Local 

Government (DILG) and the Commission on Human Rights (CHR), the Philippine Coast 

Guard and MARICOM for the effective enforcement of fishery related laws. Likewise, the 

Technical Committee shall ensure the availment of privileges of deputized FARMC members 

and access for free legal services in protecting their rights while carrying out their 

functions. 

Section 33. Existing Fisheries and Aquatic Resources Management Councils 

(FARMCs). Fisheries and Aquatic Resources Management Councils already existing and 

organized before the approval of this Resolution shall be duly recognized as FARMCs: Provided, 

however, that such councils shall be reconstituted/reorganized according to the provisions 

of these rules. 

ARTICLE 7 

ANNUAL REPORT AND EVALUATION 

Section 34. The LdBIFARMC shall prepare a semi-annual accomplishment report furnishing 

copies to all its members on record and the concerned LGUs. The same shall be 

submitted to the LLDA, copy furnished the Department of Agriculture. 

ARTICLE 8 

TRANSITORY AND MISCELLANEOUS PROVISIONS 

Section 35. Hold Over Capacity of Existing Officers. Officers of existing FARMCs 

at all levels within the Laguna de Bay Region shall serve until December 31, 2001. However, 

election for the new set of officers shall proceed as provided in Section 21, Article 3 of these 

guidelines three (3) months prior to the closing of the said year. 

Section 36. Effectivity. These guidelines shall take effect fifteen days from the date 

of publication in a newspaper of general circulation and shall remain in force until revoked or 

superseded. 

APPROVED. 



Chairman Vice-Chairman


(SGD.) ARTURO L. TIU (SGD.) GODOFREDO C. VALERA 

(SGD.) EMMANUEL B. CADAYONA (SGD.) ZENAIDA C. MAGLAYA 



Attested by: 



LAND TRANSPORTATION FRANCHISING AND REGULA- 

TORY BOARD 


Memorandum Circular No. 2000-020 

Suspension of Implementation of Memo Circular No. 2000-014 

As Amended by Memo Circular Nos. 2000-014-A and 2000-016 

Otherwise Known as the Markings Requirement for All PUVs 

In order to strengthen their enforcing guidelines and to further initiate additional information 

dissemination on the regional levels, the Board, based on the recommendations of 

its Regional Offices, hereby defers the implementation of Memorandum Circular No. 2000- 

014 as amended by Memorandum Circular Nos. 2000-014-A and 2000-016 until further 

orders. 

This Memorandum Circular shall take effect immediately. 


(SGD.) DANTE M. LANTIN 

Chairman 

(SGD.) REMEDIOS G. BELLEZA 

Board Member 

LAND TRANSPORTATION OFFICE 


Administrative Order No. BGC-AO-00005 

Changing the Name of the LTO Flying 

Squad Into LTO Law Enforcers

1960 


Pursuant to RA 4136, EO 125 and 125-A which provided LTO the power to enforce the 

provisions of the Act, establish and prescribe the corresponding rules and regulations for the 

enforcement of laws governing land transportation, the LTO Flying Squad was created under 

the Field Enforcement Division of the Law Enforcement Service. The Flying Squad is the 

LTOís arm for the enforcement of laws governing land transportation. 

This Office desires to improve the services of our law enforcers to the public. In line 

with the desired improvement is the promotion of good image of our enforcers. LTO shall 

recreate the flying squad to make it more responsive to the needs of the public and to be of 

better support to the various programs of the government. 

The LTO Flying Squad shall now be called LTO Law Enforcers. The change in the 

name is in line with the objective of improving the image of the LTOís apprehending officers. 

This Order shall take effect fifteen (15) days after its publication in the Official Gazette 

or any newspapers of general circulation. 



(SGD.) BENJAMIN G. CALIMA 

Assistant Secretary 

Approved: 

(SGD.) VICENTE C. RIVERA, JR. 

Secretary 

óo0oó 

Memorandum Circular No. BGC-MC-00309 

DTI Department Administrative Order No. 03 Series of 2000, 

Subject: Mandatory Philippine National Standard for 

Road Vehicles-Safety Belts and Restraint Systems-Specifications 

Quoted hereunder is Department of Trade and Industry (DTI) Department Administrative 

Order No. 03, series of 2000, directing the mandatory implementation of Philippine National 

Standard No. 1892: Road Vehicles-Safety Belts and Restraint Systems - Specifications, 

in connection with the registration of motor vehicles pursuant to RA 8750 and RA 4136 

as amended, for your information and guidance. 

ì1. In accordance with the provisions of RA No. 4109, RA No. 7394, Executive 

Order No. 913, Series of 1983, DAO No. 9, Series of 1990, DAO No. 1, Series of 

1997, DAO No. 8, Series of 1995, Sec. 10(4), Chapter 3, Title X, Book IV of the 

Administrative Code of 1987 and other related rules and regulations, the mandatory 

implementation of PNS 1892: Road Vehicles - Safety Belts and Restraint 

Systems - Specifications is hereby ordered, for the protection of consumers and 

the general public. 

2. All manufacturers, distributors, importers and retailers of safety-belts and restraint 

systems shall comply with the requirements of PNS 1892-2000.


3. A third party certification, known as the PS Quality Certification Mark, shall be 

obtained from the Bureau of Product Standards (BPS) by all manufacturers of 

said product. Importers of said product shall secure an import commodity clearance 

from the BPS as pre-requisite of import shipments released by the Bureau 

of Customs. 

4. BPS shall promulgate implementing guidelines specifying implementing timetables, 

taking into consideration present inventory levels, production capabilities 

of industries, and testing capabilities of BPS and other testing institutions. When 

necessary, BPS may designate an appropriate competent organization to assist 

in various aspects of standards implementation work (such as product inspection, 

testing, market monitoring) for this product. 

5. The Implementation of this standard shall be done in coordination with DTI 

Regional and Provincial Offices and the Bureau of Trade Regulation and Consumer 

Protection. 

6. All other orders or parts thereof which are inconsistent with the provisions of 

this Administrative Orders are hereby repealed or amended accordingly. 

7. This Order takes effect fifteen (15) days after publication in two newspapers of 


Copy of said standard may be secured from the BPS Standards Date Center.î 

Please be guided accordingly. 



(SGD.) MAR ROXAS 

Secretary 

Department of Trade and Industryî 

(SGD.) BENJAMIN G. CALIMA 

Assistant Secretary 

Land Transportation Office 

óo0oó 

Memorandum Circular No. BGC-MC-00317 

Implementing Guidelines of Administrative Order No. BGC-AO-001 

Re: Rules and Regulations in the Implementation of the Drug Testing of 

Professional Driverís License Holders/Applicants 

SECTION I. Introduction - In consonance to the directive of the President to ensure 

road safety in the Philippines and pursuant to AO No. BGC-AO-001 and Republic Act No. 

4136, section 22 as amended by Batas Pambansa Blg. 398 which states that, ìevery person 

who desires to operate any motor vehicle shall file an application to the Director or his 

deputies for a license to drive motor vehicles; provided however, that no person shall be

1962 


issued a professional driverís license who is suffering from contagious diseases such as 

tuberculosis, sexually transmitted disease and epilepsy or who is an alcohol or drug addict 

or dependentî, the following rules and regulations shall be observed: 

SECTION II. Definition of Terms - 

a. Drug- a Methamphetamine (shabu), Cannabinoids (marijuana). 

b. Drug test - any chemical, biological or physical instrument analysis administered by a 

laboratory for the purpose of determining the presence or absence of a drug or its metabolite. 

c. Methamphetamine (Shabu) - are synthetic amphetamines or stimulant that are produced 

and sold illegally in pill form, capsules, powder and chunks. Two such Methamphetamine 

are chunks and ice. 

d. Cannabinoids - hemp like plant whose leaves are smoked in cigarettes as a narcotic. 

e. LTO - Land Transportation Office 

f. NCR - National Capital Region 

g. Application Fee - shall mean the amount to be collected upon filing an application for 

accreditation. 

h. Accreditation Permit - shall mean the authority granted by the Dangerous Drugs Board 

(DDB) and Land Transportation Office (LTO) to be able to transact business relative to 

drug testing. 

i. DDB - Dangerous Drugs Board 

j. Chain of Custody - refers to the procedure established by the testing laboratory for the 

handling of specimens. It ensures that sample identification and integrity are maintained. 

It also accounts for the integrity of each specimen by tracking its handling and storage 

from specimen collection to final disposition of the specimen. 

SECTION III - Accreditation of Drug Laboratories - 

A. Drug Testing Laboratory - LTO adopt the laboratory classification of the DDB such as: 

1. CLASS A LABORATORIES - are those that are capable of performing with competence 

screening, confirmatory tests and the quantitative examinations of dangerous drugs in the 

body fluids. This class of laboratory must have all the analytical instruments, equipment, 

glasswares, materials and reagents that are necessary for screening, confirmatory and quantitative 

examinations of dangerous drugs in the body fluids. 

2. CLASS B LABORATORIES - are those that are capable of performing with competence 

screening and confirmatory of dangerous drugs in the body fluids. This class of laboratory 

shall collaborate with a licensed class A private or government laboratory whereby the latter 

undertakes to conduct further confirmatory test of specimens tested by the former if necessary. 

3. CLASS C LABORATORIES - are those which are capable of performing with competence, 

screening examinations of dangerous drugs in the body fluids. The laboratories shall 

collaborate with a Class A or B laboratory for the confirmation of their positive findings in the 

body fluids, if necessary. This class of laboratory shall have the necessary instruments, 

equipment, glasswares, reagents and materials for the analysis and identification of dangerous 

drugs in the body fluids.


B. Procedure 

In applying for accreditation of laboratory for drug tests, the following steps shall be 

followed: 

B.1 The application is open to all applicants for Drug Screening Test, provided it has 

already set-up a private or government Class ìAî or ìBî Confirmatory Laboratory. The applicant 

shall submit a duly accomplished application form, together with the documentary requirements 

hereinafter set forth, to the LTO Committee on Accreditation of Drug Testing 

Laboratories. 

The screening testing (Class ìCî) Center should be located within the 100-200 meter 

radius from the LTO Licensing Office, for the convenience of the driver applying/renewing 

for a professional license. 

Participants to the LTO-Drug Testing Program must set up their own confirmatory 

laboratory and shall be required to put up drug screening centers in all LTO Licensing Centers 

nationwide and not only in ìselected or juicy areaî. 

That drivers found positive of drugs abuse shall automatically be subjected to Confirmatory 

Testing, using the same urine specimen. The cost of Confirmatory Testing shall be 

shouldered by the Drug Screening Testing Center concerned, if sent to a private confirmatory 

laboratory. 

Upon filing of the application for accreditation, an application fee shall be collected 

hereinafter set forth. 

In case of the National Capital Region (NCR), applications shall be filed at Medical 

Unit, LTO Central Office, East Avenue, Quezon City for evaluation, inspection and recommendation, 

while in case of other regions of the country, application shall be filed at the LTO 

Regional Office where the concerned laboratory operates. Thereafter, the Regional Office is 

directed to conduct ocular inspection of the laboratory in accordance with DDB and LTOís 

requirements for evaluation and subsequent recommendation to the LTO Central Officeís 

Committee on Accreditation. 

B.2 The Committee on Accreditation shall be created with the following duties and 

responsibilities: 

1. Evaluates the applications, conducts ocular inspection of the laboratory, facilities and 

equipment and recommends approval or disapproval of application to the LTO Assistant 

Secretary depending upon the result of evaluation. 

2. See to it that the drug testing laboratories operate at all times in accordance with the terms 

and conditions of the registration and accreditation. 

3. Provide proper interpretation of the given and specific requirements that shall govern the 

operations of the laboratory. 

4. See to it that the technical demands involved in laboratory work are met.

1964 


5. Conduct surprise/periodic inspection of the accredited laboratory to ensure its effectiveness. 

6. Perform such other duties as may be assigned to it. 

B.3 The Assistant Secretary may approve the application and issue an accreditation 

permit or disapprove the same. 

Upon approval of the application, an accreditation fee shall be collected hereinafter 

set forth. 

C. Renewal of Accreditation: 

The renewal of Accreditation shall be filed, processed and approved at the LTO Central 

Office subject to the fees provided in Section VIII hereof or fees which the LTO may 

adopt from time to time. Likewise, the medical unit, LTO Central Office, will ask from DDB a 

list of updated accredited laboratories. 

C.1 The applicant shall present its latest Accreditation permit and the corresponding 

official receipt to LTO Central Office. 

C.2 In securing the renewed accreditation permit, the accredited laboratory must submit 

a valid and appropriate mayorís permit. 

SECTION IV. Documentary Requirements: 

I. The following documents shall be submitted upon filing an application for accreditation/ 

authorization: 

a. Certificate of Accreditation of the laboratory from DDB, duly signed by the Executive 

Director of the Board and Chairman of the Accreditation Committee. 

b. Certification from the Dangerous Drugs Board (DDB) authorizing the laboratory director/ 

physician to conduct drug testing; 

c. Certification from the Dangerous Drugs Board to a certified physician; 

d. A license of the laboratory director from the Professional Regulation Commission as a 

medical doctor or doctor of osteopathy; 

e. Certificate of training of the licensed Medical Technologist provided by the company supplying 

the said machine; 

f. Samples of chain of custody forms and procedures; 

g. Certificate of Business Name Registration from the Department of Trade and Industry 

(DTI), if single proprietorship; 

h. Securities and Exchange Commission (SEC) Certificate of Registration and Articles of 

Incorporation and By-laws, if corporation and partnership;


i. Valid and appropriate mayorís permit; 

j. Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR) in case business 

has been operating for less than one year; 

k. Latest Income Tax Return; 

l. Certificate of business membership with the Social Security System (SSS); 

m. Specimen signatures of accredited physicians, Medical Technologists who are authorized 

to sign the certificates. 

n. Schematic floor plan of the laboratory indicating its size and the location of the testing 

equipment. 

SECTION V. Technical Requirements: 

The drug testing laboratories should meet the requirements of the DDB for accreditation. 

In addition to the requirements of DDB, LTO shall require the following: 

1. Specimen signatures of the authorized certified signatories; 

2. Certificates made of security paper with security markings to prevent faking of certificates. 

SECTION VI. Reporting System - All accredited laboratory managers shall make a 

periodic report on the results of the drug test that was conducted, to the Central Office or 

LTO Regional Offices, as the case may be. For drug test, it shall be identified on the report, 

the drug that was tested for, Methamphetamine or Cannabinoids, and whether positive or 

negative. The test results shall be treated confidential. 

SECTION VII. Interpretation of Results: 

1. Results will be printed individually or altogether in one official form with seal. 

2. Those who turned out to be positive in the screening/initial test, their samples shall be 

sent to the Class A Confirmatory Laboratory of the concerned Screening Testing Center for 

confirmation at no cost to the driver. However, the driver found positive of drugs may request 

that the sample be sent to DDB, NBI, or PNP Crime Laboratory, and the cost shall be 

shouldered by the driver. The subject sample shall be submitted within fifteen (15) days after 

collection. 

3. As confirmed by the Class A Confirmatory Laboratory or the DDB or PNP Crime Laboratory 

or NBI, the concerned accredited physician shall subject positive individual to clinical 

evaluation as basis for appropriate management. 

SECTION VIII. Fees - A filing fee in the amount of five hundred pesos (Php 500.00) 

shall be collected upon the filing of application for accreditation and Accreditation Fee in the 

amount of two thousand five hundred pesos (Php 2,500.00) for Class ìAî; two thousand 

pesos (Php 2,000.00) for Class ìBî and one thousand five hundred (Php 1,500.00) for Class 

ìCî.

1966 


SECTION IX. Validity - The Accreditation Permit approved and granted by the Assistant 

Secretary of LTO shall be valid for one (1) year starting January 1 to December 31 of 

any given year, provided any original permit issued during this period shall be valid only up 

to December 31 of any given year. Renewal of permits shall be on or before the last working 

day of the year. Such renewal permit shall be valid for the next succeeding year. 

SECTION X. Penal Provisions - The Accredited Laboratory director/physician shall be 

penalized with an administrative fine in the amount of ten thousand pesos (Php 10,000.00) 

for Class ìAî and ìBî and five thousand pesos (Php 5,000.00) for Class ìCî for the first offense, 

one (1) year suspension and a fine of fifteen thousand pesos (Php 15,000.00) for Class ìAî and 

ìBî and ten thousand pesos (Php 10,000.00) for Class ìCî for the second offense, and cancellation 

of the accreditation permit for the third offense for the following violations: 

a. Submission of anomalous report as required by law and regulations; 

b. Non-compliance with the standard requirements herein provided and other laws and its 

implementing rules and regulations; 

c. Misrepresentation in the filing of the application and/or in its operation. Any person, firm, 

partnership or corporation found operating as an accredited laboratory of the LTO on drug 

tests without an accreditation permit, shall be penalized and/or denied transactions with 

LTO. 

SECTION XI - Performance Bond - All drug testing laboratories (Class ìAî and ìBî ) 

accredited by this Office are directed to post a bond of three hundred thousand pesos (Php 

300,000.00) in cash or surety, while Class ìCî shall post a bond in the amount of one hundred 

thousand pesos (Php 100,000.00) to answer for whatever damages that LTO might 

suffer for failure of the accredited laboratories to comply with their obligations. 

All previous orders/memoranda and other issuances in conflict herewith are deemed 

superseded. 

For guidance and strict compliance. 


COMMITTEE ON ACCREDITATION: 

(SGD.) GRACIANO J. TOBIAS (SGD.) ILONOR MADRID 


(SGD.) ANTONIO MARQUEZ (SGD.) BRENDA BASCOS 

Member Member 

(SGD.) BELLA SAN PEDRO (SGD.) THELMA CORSIGA 

Member Member 

(SGD.) HERNANDO CORTEZ 

Member 

Approved: 

(SGD.) ATTY. BENJAMIN G. CALIMA 

Assistant Secretary


MARITIME INDUSTRY AUTHORITY 


Memorandum Circular No. 156 

Amending the Schedule of Fees on Vessel Lay-Up 

Under Memorandum Circular No. 119 

Pursuant to the Letter of Instructions (LOI) No. 341, directing the Maritime Industry 

Authority (MARINA) to act as the lead government agency to oversee and coordinate the 

establishment of lay-up centers in the Philippines within the Malalag Bay, Pujada Bay and 

Mayo Bay in Davao Gulf and prescribe/collect a nominal daily lay-up fee payable in US 

dollars or its equivalent in acceptable foreign currency in lieu of the berthing fee imposed on 

vessels under the Tariff and Customs Code, as amended, the prescribed vessel lay-up fees 

as adopted in Memorandum Circular No. 119 are hereby modified and amended as follows 

in order to prescribe an attractive fees that will be more competitive with other lay-up areas 

in Asia and to encourage shipowners and lay-up agents to consider Davao Gulf as the ideal 

lay-up center/sanctuary in the country: 

(a) For vessels whose tonnage capacity is 50,000 

DWT and below US$ 70.00 per day 

(b) For vessels whose tonnage capacity is above 

50,000 DWT to 150,000 DWT US$ 80.00 per day 

(c) For vessels whose tonnage capacity is above 

150,000 DWT US$ 90.00 per day 

All other provisions of MARINA Memorandum Circular No. 119, in so far as they are 

not inconsistent with this Circular shall remain in full force and effect. 

This Circular shall take effect fifteen (15) days after its publication once in a newspaper 




By Authority of the Board: 

(SGD.) OSCAR M. SEVILLA 

Administrator 

óo0oó 

Memorandum Circular No. 157 

Extension of the Validity of the Pro-Poor 

Reduced Vessel Fees Under MC No. 144

1968 


In order to capture the operations of the remaining number of illegal motorboat/banca 

owners/operators and boatbuilders, the effectivity of MC No. 144 is hereby extended for 

another year effective 01 July 2000 up to 30 June 2001. 

It is hereby provided that the vessel name clearance fee in the amount of P50.00/ 

vessel under MC No. 146 (New Fees and Charges), shall be waived and shall be inclusive 

of the ìPro-Poorî fees that will be collected. 

This Circular shall take effect immediately upon publication thereof in a newspaper of 




By Authority of the Board: 



óo0oó 

Flag State Administration Advisory No. 15, s. 2000 

Regulations Governing the Operation of High Speed Crafts 

For clarity and transparency in the implementation and enforcement of national rules 

and regulations governing the operation of High Speed Crafts in Philippine waters, the following 

provisions of the Philippine Merchant Marine Rules and Regulations, 1997 and Memorandum 

Circular No. 148 are hereby reiterated: 

1. Philippine Merchant Marine Rules and Regulations, 1997 

a. Regulation XVII/2 ñ Definition 

High Speed Craft ñ is a craft capable of maximum speed in meters per second 

(m/s) equal to or exceeding 

0.1667 

3.7 V 

where: V ñ displacement corresponding to the design waterline in m 3 

b. Regulation XVII/3 - General Provisions 

3.2 Compliance with structural standards of a classification society recognized 

by the Administration may be accepted as satisfactory proof of the structural 

adequacy of a craft.


2. Memorandum Circular No. 148 

3.7 Class G: High Speed Craft 

3.7.1 Deck Department 

Tonnage No. Position License/Qualification 

100 and below 1 Master 2 nd Mate 

1 Deck Officer 3 rd Mate 

1 Deck Rating 

Over 100 ñ 250 1 Master Chief Mate 


1 Deck Rating 

Over 250 ñ 500 1 Master Master Mariner 


1 Deck Rating 

3.7.2 Engine Department 

Power (Kw) No. Position License/Qualification 

Below 1400 Unmanned 

machinery space 1 Chief Engineer Officer 4 th Marine Engineer 

Below 1400 manned 1 Chief Engineer Officer 3 rd Marine Engineer 

machinery space 1 2 nd Engineer Officer 4 th Marine Engineer 

Over 1400-2800 unmanned 

machinery space 1 Chief Engineer Officer 3 rd Marine Engineer 

Over 1400-2800 manned 1 Chief Engineer Officer 2 nd Marine Engineer 



machinery space 1 Chief Engineer Officer 2 nd Marine Engineer 

Over 2800-4200 1 Chief Engineer Officer 2 nd Marine Engineer 

manned machinery space 1 2 nd Engineer Officer 3 rd Marine Engineer 


machinery space 1 Chief Engineer Officer Chief Marine Engineer 

Over 4200-5400 manned 1 Chief Engineer Officer Chief Marine Engineer 

machinery space 1 2 nd Engineer Officer 3 rd Marine Engineer 

Over 5400-8200 unmanned 1 Chief Engineer Officer Chief Marine Engineer 



machinery space 1 2 nd Engineer Officer 2 nd Marine Engineer

1970 


Over 8200-10200 unmanned 1 Chief Engineer Officer Chief Marine Engineer 

machinery space 1 2 nd Engineer Officer 3 rd Marine Engineer 


machinery space 1 2 nd Engineer Officer 2 nd Marine Engineer 

1 Engine Officer 4 th Marine Engineer 

Over 10200-24000 1 Chief Engineer Officer Chief Mariner Engineer 

unmanned machinery 1 2 nd Engineer Officer 2 nd Marine Engineer 

space 


machinery space 1 2 nd Engineer Officer 2 nd Marine Engineer 

1 Engine Officer 3 rd Marine Engineer 

Henceforth, in the implementation, enforcement and interpretation of rules and regulations 

pertaining to high speed crafts, the above-mentioned provisions under the Philippine 

Merchant Marine Rules and Regulations, 1997 and/or Memorandum Circular No. 148 shall 

prevail. 






óo0oó 


Full Implementation of the International Safety 

Management (ISM) Code by 01 July 2002 

Pursuant to MARINA Memorandum Circular No. 122 and in view of the mandatory 

implementation of the International Maritime Organization (IMO) Resolution A.741(18) and 

A.880(21), Chapter IX of the International Convention for the Safety of Life at Sea (SOLAS), 

as amended concerning International Management Code for the Safe Operation of Ships 

and for Pollution Prevention (ISM Code), all concerned are hereby reminded of the full implementation 

of the ISM Code in the Philippines specifically with respect to other cargo ships 

and mobile offshore drilling units of 500 gross tonnage and above by 01 July 2002. 

Therefore, all concerned companies are advised to take appropriate action and to 

comply with the requirements of the Code on the captioned implementation date. 

For information and guidance.






óo0oó 


Preventing and Suppressing Acts of Piracy 

and Armed Robbery Against Ships 

Incidents of piracy and armed robbery against ships have alarmingly increased specifically 

in East Asian waters in the past years. Piratical attacks pose great risk not only to 

the victim ship and her cargo but also to the crew who, in some cases are killed, wounded or 

left for long periods of time at sea before being rescued. 

As piracy and armed robbery against ships affect the safe navigation of ships, it is 

important that shipowners and ship operators, shipmasters and the crew increase their vigilance 

in order to combat these criminal acts. 

To address the increasing incidents of piracy and armed robbery against ships, it is 

informed that IMO issued Maritime Safety Committee (MSC) Circular No. 623/Rev. 1 on 

ìGuidance to Shipowners and Ship Operators, Shipmasters and Crews on Preventing and 

Suppressing Acts of Piracy and Armed Robbery Against Ships.î Furthermore, all concerned 

shipping companies are enjoined to strictly implement in their Safety Management System 

(SMS), as required under the International Management Code for the Safe Operation of 

Ships and for Pollution Prevention (ISM Code), procedures and instructions on ship security, 

terrorism and piracy consistent with MSC Circular 623/Rev. 1. 

Finally, concerned companies/seafarers are urged to report case(s) of piratical attacks 

to any of the following government agencies: 

1. Maritime Industry Authority 

Telephone Numbers: (0632) 521-01-07; (0632) 523-86-51 (ext. 124); (0632) 521-95-26 

Fax Numbers: (0632) 524-27-46; (0632) 521-95-26 

2. Philippine Coast Guard 

Telephone Number: (0632) 527-84-81 (ext. 6221) 

Fax Number: (0632) 527-38-68 

3. Philippine Navy 

Telephone Numbers: (0632) 523-48-01; (0632) 524-2061 (exts. 6356; 6357) 


4. Philippine National Police, headquarters Maritime Group (MARICOM) 

Telephone Number: (0632) 723-04-01 (ext. 5461 operations)

1972 


Fax Number: (0632) 722-10-74 (operations) 

5. Department of Foreign Affairs ñ Maritime and Ocean Affairs Center 

Telephone Numbers: (0632) 834-30-37; (0632) 834-40-00 


6. Philippine Ports Authority 

Telephone Numbers: (0632) 527-48-45; (0632) 527-83-56 





NATIONAL IRRIGATION ADMINISTRATION 



Amending Paragraph III (2) of MC No. 35, s. 1996, 

Providing Guidelines in the Issuance of Certificate 

of Irrigation Coverage (LUC Form No. 4) 

Executive Order No. 258, Prescribing Time Standards in the Issuance of Permits for 

Housing Projects, issued on June 28, 2000, provides among others, to wit: 

ìSection 1. Prescribing Time Standards for the Issuance of Housing Permits 

- The following agencies of the national government shall adopt the following 

time standards in the issuance of permits for housing projects: 

x x x 

f. Department of Agriculture 

- Certification stating eligibility for reclassification of agricultural lands, including 

the National Irrigation Administration (NIA) and Philippine Coconut Authority (PCA) 

certifications, within ten (10) days upon receipt of application and by the DA- 

Regional Field Unit.î 

In compliance therefor, paragraph III (2) of MC No. 35, s. 1996 is hereby amended to 

read as follows:


ìThe processing of CIC applications as shown in attached process Flow Chart 

(Annex A) shall not exceed TEN (10) working days from the date of receipt by the 

RIM of application with complete documentary requirements. Results of field verification/inspection 

shall be made by the RIM using LUC Form No. 4 series of 

1994 prepared in quadruplicate with the original given to applicant and copies 

sent to concerned DAR/DA-RFU and office file.î 

Be guided accordingly. 

Adopted: 28 August 2000 

(SGD.) MANUEL S. AREVALO 


NATIONAL TELECOMMUNICATIONS COMMISSION 


Memorandum Circular No. 17-11-2000 

Guidelines for the Authorization of Point of 

Service Activation (PSA) Entity 

Pursuant to the provisions of the 1974 Safety of Life at Sea (SOLAS) Convention 

concerning radio communication for the Global Maritime Distress and Safety System 

(GMDSS), Act 3846, Act 3396, E.O. 546, the global trend in the telecommunications and to 

address the requirements of a Point of Service Activation (PSA) Entity who will then accept 

and process request for Mobile Earth Station service activation, assign Inmarsat mobile 

number and who shall perform the role of a routing organization, the following guidelines for 

the grant of recognition is hereby promulgated: 

I 

Definition/Glossary 

1.1 PSA - The Point of Service Activation is an entity that is contracted by Inmarsat to accept 

and process applications for Mobile Earth Station, assign IMN (Inmarsat Mobile Number ) 

and shall transmit service activation information to customers and appropriate national regulatory 

bodies. 

1.2 Earth Station - A station located either on the earthís surface or within the major portion 

of the earthís atmosphere and intended for communication with one or more space stations, 

or with one or more stations of the same kind by means of one or more reflecting satellites or 

other objects in space.

1974 


1.3 ESAS - Electronic Service Activation System 

1.4 GMDSS - Global Maritime Distress and Safety System 

1.5 IMN - Inmarsat Mobile Number 

1.6 NTC or Commission - refers to the National Telecommunications Commission. 

1.7 SES - Ship Earth Station, a mobile earth station in the maritime mobile satellite service 

located on board ship. 

II 

Functions of PSA 

2.1 To facilitate the transmission of service activation information of valid applications into 

ESAS; 

2.2 To ensure by periodic follow-up that such information is kept up-to-date; 

2.3 To respond directly to customer service queries on service activation in particular, and 

Inmarsat systems and services in general; 

2.4. To assist in the prevention and resolution of fraud and fraudulent activities within the 

Inmarsat system; 

2.5 Must provide all the necessary information and to submit a written report to the Commission 

every first week of each month without delay; 

2.6 Must see to it that all Earth Station terminals applied are coordinated/licensed with the 

Commission. 

III 

Requirements for the Grant of PSA Authorization 

3.1 Favorable endorsement from Inmarsat; 

3.2 Must have sufficient knowledge of radio laws and licensing regulations in the country; 

3.3 Must have direct experience in Inmarsat systems and services for at least one (1) year; 

3.4 Must have facilities for handling customer inquiries and customer assistance promptly; 

3.5 Letter of intent signed by the president of the corporation or any authorized person 

together with application and supporting documents to the Radio Regulation and Licensing 

Department of the Commission; 

3.6 Entity organized under Philippine laws to engage in satellite terminal service activation 

and must have valid Business Permit;


3.7 Must have proof of financial viability. 

4.1 License Fees 

IV 

Schedule of Fees and Charges 

4.1.1. Filing Fee - PHP 500.00 

4.1.2 License Fee/year - PHP 5,000.00 

4.2 Fines and Penalties 

4.2.1 A penalty of fine in the amount of PHP 5,000.00 shall be charged for each and 

every offense of any applicable laws violated. 

V 


5.1 No person or entity shall be allowed to act as Inmarsat PSA without valid authority from 

the Commission. 

5.2 Authority shall be subject to renewal every year unless earlier suspended or revoked for 

justifiable cause. 

V 

Administrative Sanctions/Penal Provisions 

Violation of any of the provisions of this circular or any other relevant international or 

national laws, rules and regulations shall be dealt with in accordance with existing laws after 

compliance with the administrative due process of notice and hearing. 

VI 

Repealing/Effectivity Clause 

This Circular takes effect immediately and supersedes any existing NTC order, circular, 

instruction, memorandum or part thereof found inconsistent herewith. 


(SGD.) AURELIO M. UMALI 

Deputy Commissioner 

(SGD.) NESTOR C. DACANAY 

Deputy Commissioner 

(SGD.) JOSEPH A. SANTIAGO 

Commissioner

1976 


OFFICE OF THE PRESIDENT 


Administrative Order No. 135 

Censuring Mr. Romeo N. Alcasid, Director of the 

Bureau of Animal Industry, with Warning 

This refers to the Administrative case filed by Messrs. Romulo S. Directo and Crisanto 

P. Cerezo against Director Romeo N. Alcasid, Martiniano dela Cruz, Lilia B. Bernal, Aurora 

Capiral and Lolita Castillo, all of the Bureau of Animal Industry for Graft and Corruption, and 

Harassment arising from the withholding of complainantsí salaries from July 1, 1994 until 

they report to their place of assignment at the Domarao Livestock Production Center in 

Capiz. The case was investigated by the Presidential Commission Against Graft and 

Corruption (PCAGC). 

Records show that on September 1, 1991, complainant Directo was appointed as 

Agriculturist II, and was assigned at the Domarao Livestock Production Center in Domarao, 

Capiz. The other complainant Cerezo applied for the position of Agricultural Technologist at 

the Livestock Development Division, Central Office (Manila). His appointment was approved, 

but instead of being assigned to the Central Office, he was likewise deployed to Domarao 

Livestock Production Center in Capiz. 

On Septemebr 6, 1991, complainants were each asked to sign a Certification by 

respondent Romeo N. Alcasid, Director of the Livestock Development Division, to the effect 

that they were agreeable to the assumption of their duties at the Domarao Livestock Production 

Center in Capiz. This Certification was presented as common evidence by both parties 

during the trial. 

On September 23, 1991, respondent Alcasid wrote a Memorandum to complainant 

Directo informing him that his appointment was already approved, and that he has to report, 

effective October 1, 1991, to the Chief, Livestock Development Division, for assignment to 

duty at the Domaro Livestock Production Center in Domarao, Capiz. 

However, instead of reporting to Domarao, complainant Directo continued to report for 

work at the main office in Manila up to the present time. He visited his work station in Capiz 

only on certain occasions, at least eight (8) times since his appointment in 1991. But despite 

such arrangement, complainant never stopped receiving his salary until July 1994. Hence, 

this complaint for alleged illegal withholding of his salary. 

Respondents justified the withholding of complainantís salary for the month of July, 

1994 on the sole ground that since ìcomplainant has not assumed his duties as Agriculturist 

II at Domarao, Capiz, he certainly is not entitled to receive the increased salaries corresponding 

to said position.î (Memorandum of Arguments for the Respondents). 

Complainant Directo countered that he reported for work to their main office in Manila 

for the whole month of July 1994, as evidenced by his daily time record for the said month,


duly signed by his supervisor. He further alleged that he was reluctant to sign the said 

Certification, but he was prevailed upon by his immediate head, Director Onofre S. Bonifacio, 

and was assured that such Certification would not in any way disturb his present work 

assignment in their main office, as he was actually proposed for the vacant position existing 

at the office of the Livestock Development Division in Manila. 

Complainant Directo further contended that the Certification requirement was being 

applied by respondent Alcasid on a selective basis, as not all those who were newly appointed 

and assigned to the field were asked to sign the same. Complainant alleged that he and 

other complainant Cerezo were the first to be asked to do so for no other reason but to 

harass them. 

Incidentally, a complaint against herein complainants Directo and Cerezo was filed by 

respondent Alcasid before the Office of the Ombudsman on September 16, 1993 for alleged 

violation of Section 3(e) of Republic Act No. 3019, for their willful refusal to report to their 

place of assignment in Domarao Livestock Production Center in Capiz. In a Resolution 

dated August 19, 1994, the Office of the Ombudsman dismissed said complaint on the 

ground that no injury was caused to the government by Directo and Cerezoís failure to stay 

permanently in Domarao, Capiz. Furthermore, the Office of the Ombudsman found that the 

Certification-requirement of complainant Alcasid (respondent herein) was applied on a 

ìselective basisî thus, 

ìxxx xxx xxx 

xxx From the facts gathered herein, the assignment of respondents to 

Domarao, Capiz was unnecessary and therefore uncalled for. It appearing that 

(the other personnel (who were) promoted were not subjected to the same requirement 

of signing a certification of willingness to be assigned anywhere, it can 

only (be) surmised that complainant is biased against herein respondents, as 

further shown by complainantís inaction on the two previous recommendations 

of the promotion of herein respondent Directo, Jr. When asked why Director Alcasid 

is (sic) prejudiced against them, respondents alleged that they have been active 

in exposing anomalies and graft in the Bureau of Animal Industry. The very satisfactory 

performance ratings of herein respondents belie the charge that they are 

causing undue injury to the government by their failure to assume their assignments 

in Domarao, Capiz. It also appears that herein respondents are effective 

and productive in their present work at the LDD Central Office. 

xxx xxx xxx 

After due evaluation, the PCAGC issued a resolution on September 28, 1994, finding 

respondent Alcasid guilty of discrimination against complainants and recommending that he 

be censured, with a warning that any repetition of said act shall be dealt with more severely. 

As to the other respondents, the complaint against them was dismissed for lack of evidence 

of their complicity to the discriminatory act of respondent Alcasid. 

After careful study, this Office concurs in the findings and recommendation of the 

PCAGC.

1978 


The evidence veritably shows that complainants were indeed discriminated against by 

respondent Alcasid, as shown by the fact that they were the only ones asked to sign a 

Certification that they were willing to report to their place of assignment at Dumarao Livestock 

Production Center in Capiz, while the other newly-appointed personnel of the same Division 

were not; or if they were, their salaries were not withheld even if they did not report regularly 

to their designated work station. 

If the sole reason for the withholding of complainantsí salaries was their refusal to 

assume their duties as Agriculturist II and Agricultural Technologist, respectively, in Domarao 

Livestock Production Center, Capiz, it strikes us that it was only their salary for the month of 

July 1994 that was withheld, and not those for the past months, years even, after their 

appointment as Agriculturist II and Agricultural Techonologist in Domarao, Capiz was approved 

in September, 1991. 

Respondent Alcasidís explanation that he allowed complainants to collect their salaries 

from September 1991 up to June 1994 although they were not regularly reporting to their 

duly designated station at Domarao, Capiz, because at first he was lenient with the 

complainants, but later decided to be strict for their continued defiance of his orders to report 

to their designated station, only to relent later, and direct the release of their salaries starting 

1995 upon threats of being haled to court, fails to impress us. If respondent Alcasid believed 

in the lawfulness of his orders, no amount of threats, real or imagined, could have stopped 

him from implementing the same for then, he would have the law to protect him from any 

lawsuit the complainants may file against him. 

Parenthetically, this Office, cannot countenance complainantsí conduct of agreeing to 

their promotion as Agriculturist II and Agricultural Technologist, respectively, in Domarao, 

Capiz without reporting regularly to their place of assignment. Complainants committed mental 

dishonesty when they signed their promotion papers without meaning to carry out the 

corresponding duties of the same because they were assured that such Certification would 

not in any way disturb (their) present work assignment in the main office. While this practice 

may have been tolerated in the past, this Office finds the same reprehensible. 

If complainants did not want to go to Capiz because their families were in Manila, and 

in the case of complainant Directo, he was at that time pursuing his Ph. D. in a university in 

the same place, then they should not have agreed to their promotion as Agriculturist II and 

Agricultural Technologist, respectively in Domarao Livestock Production Center. Instead, 

they should have held on to their former positions in the main office and waited for any 

vacancy which they could apply for. 

Consequently, this Office is convinced that the withholding of ROMULO DIRECTO, 

JR. and CRISANTO CEREZOíS salaries for the month of July, 1994, was justified. 

WHEREFORE, Director Romeo N. Alcasid of the Bureau of Animal Industry is hereby 

censured and warned that repetition of the same act in the future will be dealt with more 

severely. 

The complaint against the other respondent is dismissed for lack of evidence that will 

establish their complicity with the discriminatory act of respondent Alcasid.




BY THE PRESIDENT: 

(SGD.) RONALDO B. ZAMORA 

Executive Secretary 

óo0oó 


Imposing the Penalty of One (1) Month and One (1) Day Suspension 

Without Pay on Ambassador Nelson D. LaviÒa, Chief of Mission I, 

and Suspension of Three (3) Months Without Pay with Severe 

Reprimand on Nestor N. Padalhin, Chief of Mission II, Both for Simple 

Misconduct and Both of the Department of Foreign Affairs (DFA) 

The administrative case against Ambassador Nelson D. LaviÒa, Ambassador 

Extraordinary and Plenipotentiary to Kenya stemmed from the charges issued against him 

by three (3) members of his staff, all Kenyan nationals, that he appropriated part of their 

salaries for his personal use, while that of Consul General Nestor Padalhin from charges 

raised against him by Ambassador LaviÒa. 

On January 14, 1997, the Department of Foreign Affairs (DFA), through the Board of 

Foreign Service Administration (BFSA) requested this Office for a Presidential Authority to 

investigate the allegations of misconduct committed by Ambassador LaviÒa and also that of 

Consul General Padalhin at the Philippine Embassy in Nairobi, Kenya. The request was 

granted. 

The Department of Foreign Affairs, through the Board of Foreign Service Administration 

(BFSA), constituted a Fact-Finding Team composed of Undersecretary Rosario G. Manalo, 

Office of Legal Affairs (OLA), Assistant Secretary Franklin M. Ebdalin and Ma. Theresa B. 

Dizon, FSO IV, and authorized the same to travel to Nairobi, Kenya from 20-30 April 1997 to 

conduct a fact-finding investigation pursuant to the authority granted by the Office of the 

President. 

In a Memorandum dated 24 June 1997, the Secretary of Foreign Affairs transmitted to 

the Office of the President the findings of the Fact-Finding Team. The Team recommended, 

and the Secretary concurred, that Amb. LaviÒa be charged administratively without prejudice 

to the filing of appropriate criminal charges. Ambassador LaviÒa was administratively charged 

for Conduct Unbecoming of an Ambassador consisting of the following: 

1. Illegally deducting a portion from the salaries of three Kenyan local hires of the Philippine 

Embassy, Nairobi, and using the deducted amount for his personal use; 

2. For purchasing and keeping in his possession raw elephant tusks which is prohibited 

under Kenyan law;

1980 


3. For allowing the involvement of members of the Filipino community in the internal concerns 

of the Embassy; 

4. For endorsing to an International Organization communications signed by an embassy 

staff member containing defamatory statements against some members of the Filipino 

community as well as transmitting to that organization internal communications of the 

Department of Foreign Affairs; 

5. For attesting to affidavits of Ms. Helen Tadifa, Finance Officer, containing defamatory 

statements against members of the Filipino community; 

6. For improperly undertaking representational activities such as non-holding of an Embassy 

Celebration of the Philippinesí National Day for members of the Diplomatic Corps 

in 1996 despite the release of US $1,000 for this purpose, and instead allowing the said 

fund to be used as reimbursement for silverware dishes purchased by his spouse Mrs. 

Estelita LaviÒa; 

7. For compromising the security of the Embassy premises and communications by allowing 

the access of non-Embassy personnel to secured areas of the Embassy as well as to 

internal communications; 

8. For charging to the Embassy funds expenses for personal telephone calls and fax communications, 

reasoning that his position as Ambassador entitles him to such a privilege; 

and 

9. For mismanagement of the embassyís operation particularly in fiscal-related matters. 

On the other hand, Nestor N. Padalhin, Chief of Mission II, Special Assistant to the 

Undersecretary for International Economic Relations and formerly Minister-Counselor and 

Consul General, Philippine Embassy, Nairobi, was charged of Conduct Unbecoming of an 

Officer as manifested in the following acts: 

1. For planning and executing the violation of the residence of the Philippine Ambassador 

and the taking of pictures of raw elephant tusks owned by Amb. LaviÒa by a Kenyan local 

hire and a Kenyan police officer in total disregard for the welfare and image of the Philippine 

Government. 

2. For involving members of the Filipino community in the internal concerns of the Embassy; 

On 17 July 1997, pursuant to Board Resolution No. 97-21, the Board of Foreign Service 

Administration (BFSA) created a Special Investigating Committee (SIC) to hear the charges 

against Amb. Nelson D. LaviÒa and Consul General Nestor N. Padalhin with former 

Undersecretary Leonides T. Caday as Chairman and with the following as Members: Asst. 

Sec. Jose Fernandez, Asst. Sec. Victor Garcia III, Asst. Sec. Marcellana Desales and Asst. 

Sec. Luz Palacios. 

The SIC commenced hearings of the charge on 10 October 1997 with Amb. LaviÒa, 

represented by counsel, who opted for a formal hearing of his case. The hearings lasted 

until 10 June 1998.


On 05 January 1999 after due deliberations on the facts of the case, the SIC submitted 

its findings to the Board that Amb. LaviÒa is guilty of dishonesty, misconduct and gross 

violation of regulations and recommend his suspension for six (6) months and issue a letter 

of admonition. In its Resolution No. 99-07 dated 15 April 1999, the Board, by a majority vote 

of the voting members present (Undersecretary Rosario G. Manalo and Assistant Secretary 

Franklin Ebdalin inhibited themselves from participating in the deliberation of the Board on 

this case as both were members of the Fact-Finding Committee whose report was the basis 

for filing the administrative cases against Ambassador LaviÒa and Mr. Padalhin), resolved to 

affirm the SICís findings and recommendations, as amended, to wit: 

a) that the Board endorse the Special Investigating Committeeís findings and 

recommendations on the suspension of Amb. LaviÒa for six (6) months without 

pay and in view of Amb. LaviÒaís forty years of service to the Department to 

recommend the acceptance of his offer to retire under R.A. 660 upon the service 

of said penalty; 

a) xxx 

b) xxx 

On 11 June 1999, Amb. Nelson D. LaviÒa submitted to the Board his Omnibus Petition 

for Review and to Admit Newly Discovered Evidence. The Board of Foreign Service 

Administration at its En Banc Hearing held on 03 September 1999 deliberated on the Omnibus 

Petition for Review and to Admit Newly Discovered Evidence in connection with the Board 

Resolution No. 99-07 dated 15 April 1999 filed by Mr. Nelson D. LaviÒa, Chief of Mission. It 

was the Boardís consensus, however, that Amb. LaviÒa be found guilty for one count of 

misconduct for the offense of illegally deducting from and/or appropriating for his own personal 

use the salaries and compensation of four (4) Kenyan local hires of the Philippine Embassy. 

Under the Civil Service Rules and Regulations, the offense of misconduct carries the penalty, 

for first offense, of suspension for one (1) month to six (6) months. For the aforesaid offense, 

the Board members agreed to recommend to impose the penalty of one (1) month and one 

day suspension without pay against Mr. LaviÒa. In making its recommendation for his penalty, 

the Board considered Amb. LaviÒaís forty (40) years of service with the Department and 

very satisfactory performance. 

With respect to the charge against Consul General Padalhin, the Board found him 

guilty of simple misconduct and recommend that he be meted the penalty of suspension of 

three (3) months without pay with severe reprimand. 

In view of the foregoing, this Office, after a careful study of the case concurs with the 

recommendation of the DFA Secretary and hereby orders that Ambassador Nelson D. LaviÒa, 

Chief of Mission I, be meted the penalty of one (1) month and one day suspension without 

pay, and that Consul General Nestor N. Padalhin, Chief of Mission II be meted the penalty of 

suspension of three (3) months without pay, with severe reprimand. 





óo0oó

1982 



Executive Order No. 276 

Modifying the Nomenclature and the 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 reduction in the rates of duty on various products will provide the 

necessary assistance to domestic industries to be globally competitive; 

WHEREAS, Section 401 of the Tariff and Customs Code of 1978, as amended, 

empowers the President to increase, reduce or remove existing rates of duty, as well as to 

modify the tariff nomenclature; 

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, 

by virtue of the powers vested in me by law, do hereby order: 

SECTION 1. The articles specifically listed in ìAnnex A*î hereof, as classified under 

Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the 

rates 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 ìX X Xî shall remain in force and 

effect. 

SECTION 3. Upon the effectivity of this Executive Order, the articles specifically listed 

in the aforesaid ìAnnexî which are entered or withdrawn from warehouses in the Philippines 

for consumption shall be levied the rates of duty herein presented. 

SECTION 4. All other Presidential issuances, administrative rules and regulations, or 

parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified 

accordingly. 

SECTION 5. This Executive Order shall take effect thirty (30) days following the 

complete publication in two (2) newspapers of general circulation in the Philippines. 

Adopteed: 21 July 2000 

BY THE PRESIDENT 



óo0oó 

*Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, 

Quezon City.




Providing for Travelling and Incidental Expenses of 

Private Individuals Relative to the Prosecution of Cases 

Where the Government is a Party Litigant 

WHEREAS, experience has shown that some of the witnesses involved in government 

cases are private individuals or are government officials/personnel who have already retired 

or left the government service during the pendency of such cases or even before the filing of 

necessary charges against erring officials/employees; 

WHEREAS, the issue as to who will shoulder the travelling and other incidental 

expenses of these private individuals or of retired/resigned witnesses (who, in the 

meantime, have also become private citizens) relative to the prosecution of the cases 

comes to the fore; 

WHEREAS, there is a need to provide guidelines for the provision of travelling and 

incidental expenses of these individuals whose testimony in court is material and 

indispensable. 

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of 

the Philippines, by virtue of the powers vested in me by law, do hereby order: 

SECTION 1. Coverage - This Executive Order shall apply to all private individuals 

including retired government personnel or those who have left the government service for 

other reasons but whose testimony in court is material and indispensable for the prosecution 

of cases where the Government is a party litigant. 

SEC. 2. Travelling and incidental expenses of private individuals as witnesses for the 

Government - Necessary travel expenses, including actual and necessary expenses for 

subsistence may be allowed for witnesses for the Government whose testimony in the courts 

of justice is considered material and indispensable in the trial of any case, whether 

administrative, civil, or criminal. These shall be charged against the funds of the Ombudsman 

or of the agency concerned for former agency personnel, or of the Commission on Audit in 

the case of former COA employees. 

A person required by the Ombudsman to provide information shall be paid the same 

fees and travel allowances as are extended to witnesses whose attendance has been required 

in the trial courts. (Sec. 32, R.A. No. 6770, The Ombudsman Act of 1989). 

In order to assure the appearance of the witness, the public prosecutor or attorney 

concerned shall previously apply thereof in writing to the court concerned. It having 

been shown that the testimony of the witnesss is material, said court shall order the 

issuance of summons. 

SEC. 3. Funding requirements - For the current year, funds to cover the transportation 

and incidental expenses referred to in the preceding section shall be sourced from agency

1984 


savings or, upon request, augmented by the Department of Budget and Management. 

Thereafter, funding requirements shall be included in the regular appropriation of the agencies 

concerned. 

SEC. 4. Repealing Clause - All circulars, orders, memoranda, rules, regulations, and 

issuances or portions thereof which are inconsistent with this Executive Order are hereby 

repealed or modified accordingly. 

SEC. 5. Effectivity - This Executive Order shall take effect thirty (30) days following its 

complete publication in at least two (2) newspapers of general circulation in the Philippines. 






óo0oó 


Amending the Guidelines Governing the Entry and 

Stay of Foreign Students in the Philippines and the Establishment 

of an Inter-Agency Committee on Foreign Students for the Purpose 

WHEREAS, it is the policy of the government to continuously promote the Philippines 

as a center for education in the Asia Pacific Region by (i) encouraging foreign students to 

study in the country, (ii) developing awareness of the Philippine educational system among 

neighboring countries, and (iii) allowing duly accepted foreign students to avail of the facilities 

of the Philippine educational system; 

WHEREAS, an increasing number of foreign students has expressed the desire to 

enter and study in the Philippines, and graduate from Philippine schools, colleges and 

universities; 

WHEREAS, the Philippine government recognizes the importance of openness and 

vigilance in determining bona-fide foreign students who wish to avail themselves of education 

and training in the Philippine educational institutions and benefit from an enriched exchange 

of culture, ideas and goodwill among nations in the region; 

WHEREAS, studying in the Philippines will afford foreign students of Filipino descent 

excellent means and opportunity to appreciate and understand their roots and rich cultural 

heritage; 

WHEREAS, there is a need to liberalize the procedures and requirements in the entry 

of foreign students without compromising national security by providing a systematic method 

in the processing and approval of their documents.



the Philippines, by virtue of the powers vested in me by law, do hereby order the following: 

SECTION 1. Basic Policies and Procedures. The following policies and procedures 

shall be observed by all entities concerned: 

A. Coverage 

Only aliens who seek temporary stay in the Philippines solely for the purpose of taking 

up a course higher than high school at a university, seminary, college, academy, or school 

duly authorized to admit foreign students who are at least 18 years of age at the time of 

enrollment and have the means sufficient for their education and support of study are covered 

under this order. 

B. Acceptance 

Only schools with programs accredited by the Federation of Accrediting Agencies of 

the Philippines (FAAP) or with the equivalent accreditation by the Commission on Higher 

Education (CHED) and the Bureau of Immigration (BI) shall be authorized by the Commission 

to admit foreign students. The CHED shall prepare, at regular intervals, an updated list of 

such schools, in consultation with the BI, taking into account their respective mandates 

under existing laws and regulations. Copies of the list shall be furnished the BI, the Department 

of Foreign Affairs (DFA), the National Bureau of Investigation (NBI), the National Intelligence 

Coordinating Agency (NICA) and the schools authorized to admit foreign students. All schools 

so authorized shall establish a foreign student unit within their organization. To maintain 

their authority, the schools, through their foreign students unit, shall submit the following 

reports to the BI, copy furnished the CHED and NICA. 

a. an enrollment report on foreign students 45 days after commencement of classes 

every semester. The names of those who have been accepted but failed to enroll, either 

for the first time or subsequent terms, should be included in the said report. 

b. a monthly status report, as may be deemed necessary, with emphasis on whoever is 

missing, has transferred, dropped from the rolls or with derogatory records. 

c. a report on promotions with inclusions of those who failed to take the final examinations 

and those with deficiencies. 

Failure to comply with the above-required reports shall be a ground for cancellation by 

the CHED of the authority to admit foreign students. 

The Certificate of Eligibility for Admission (CEA) addressed to the accepting school 

shall be cleared by the CHED only in cases where restrictions exist on enrollment of foreign 

students due to shortage of facilities, such as enrollment in medicine and dentistry. 

The CHED and the Department of Education, Culture and Sports (DECS) shall provide 

assistance to schools in regard to issues on comparative equivalences between foreign 

educational systems and those of the Philippines.

1986 


Accreditation of advanced credits earned in college or earned credits in Science, English 

and Mathematics in the 11th and 12th year levels of secondary education in foreign countries 

shall be limited only to the authorized number fixed by the CHED. Grant of credits in excess 

of the authorized number of advanced credits for degree course shall be subjected to validating 

examinations to be administered by accepting educational institutions subject to information 

of the CHED. 

Enrollment in any level shall require completion of the lower particular level, e. g., an 

applicant for the tertiary or collegiate level must be a graduate of high schools or its equivalent. 

The individual school may launch information campaigns to solicit and receive 

applications directly from prospective foreign students. The schools, for these purposes, 

may seek the assistance of the DFA and the Department of Tourism. 

The processing of documents shall be between the school and the government agency 

concerned. 

The foreign students shall communicate directly with the school and comply with the 

schoolís institutional requirements, which shall include the submission of the following 

documents; 

a. Five (5) copies of the Studentís Personal History Statement (PHS) duly signed by him, 

both in English and in his national alphabet accompanied by his personal seal, if any, and 

containing, among others, his left and right thumbprints and a 2 x 2 inch photograph on 

plain white background taken not more than six months prior to submission. 

b. A notarized affidavit of support including bank statements or notarized notice of grant 

for institutional scholars to cover expenses for the students accomodation and subsistence, 

as well as school dues and other incidental expenses. 

c. Scholastic records duly authenticated by the Philippine Foreign Service Post located in 

the student applicantís country of origin or legal residence. 

d. Photocopy of data page of the studentís passport showing date and place of birth, and 

birth certificate or its equivalent duly authenticated by the Philippine Foreign Service Post. 

The school, satisfied with the studentís compliance with its requirements, shall issue a 

Notice of Acceptance (NOA) to the student and submit a duplicate copy thereof to the DFA, 

together with a certified true copy of the CHEDís CEA, when necessary, and the above-cited 

document-requirements of Section 1-B-7 a to d. These documents shall be handcarried to 

the DFA by the schoolís designated liaison officer under a cover letter on the schoolís official 

stationery signed by the school registrar and stamped with the schoolís dry seal requesting 

that a student visa be issued to the person named therein. 

The DFA shall indorse the documents to the Philippine Foreign Service Post located in 

the studentís country of origin or legal residence for the issuance of the student visa after 

ascertaining the studentís identity and admissibility under existing DFA regulations. 

C. Issuance of Visas


Foreign students whose applications for student visa are approved are required to 

secure their visa from the Philippine Foreign Service Post in their country of origin or legal 

residence, regardless of where they are at the time of application. 

The Philippine Foreign Service Post shall notify in writing the student of the receipt of 

the documents and require him to appear in person before a Consular Officer for interview 

and compliance with consular requirements. In addition to the documents transmitted to the 

post of the DFA, the following requirements shall be submitted by the student to the Consular 

Office: 

a. Original copy of the schoolís NOA containing a clear impression of the schoolís dry 

seal; 

b. Police clearance issued by the National Police authorities in the studentís country of 

origin or legal residence, authenticated by the Philippine Foreign Service Post having 

consular jurisdiction over the place; and 

c. Medical health certificate issued by an authorized physician including but not limited to 

standard-size chest x-ray, HIV, Hepatitis B clearance. The consular office shall not assume 

the task of determining the studentís scholastic fitness for the program applied for 

and shall issue the student visa as soon as all the requirements are accomplished. A 

notice of visa issuance shall be furnished by the DFA to the school, the CHED, BI and NBI 

and the NICA as soon as it receives a report to this effect from the issuing post. 

D. Arrival and Stay in the Philippines 

Upon arrival in the Philippines, the student, as part of the requirements for processing 

his entry, shall report immediately to the BI students Desk for registration and to the accepting 

school and shall enroll in the school which issued this NOA. The school shall reassess the 

studentís competency level and establish his scholastic comparative equivalence, when 

necessary. 

The school, through its foreign unit, shall assist the student in obtaining the necessary 

Alien Certificate of Registration (ACR) and Certificate of Residence for Temporary Students 

(CRTS) from the BI. The studentís authorized period of stay shall be consistent with the 

length of the course of study to which he has been accepted by a Philippine school. The 

initial period is one year, then, is renewed by the BI Student Desk every semester and for 

cause, may be approval for one year. 

A foreign student who wishes to pursue another degree program higher than the original 

course completed shall submit all appropriate clearances/indorsements to include Personal 

History Statement form duly accomplished, notarized affidavit of support, official transcript 

of record, NBI clearance and NOA from his admitting school and other concerned agencies 

to the BI for approved and subsequent processing of student visa extensions. 

Shifting of course or change of school shall require prior CHED/DECS clearances. 

Authorization for conversion from touristís visa category to that of a student visa or 

issuance of Special Study Permit is hereby restored.

1988 


The concerned school and the Inter-Agency members shall provide assistance to the 

foreigners who are already in the country under any valid visa arrangement and who apply/ 

petition for the conversion of their status to 9f student visa or for the issuance of a Special 

Study Permit provided all relevant prerequisites are complied with, and provided further, that 

safeguards to national security concerns/interests are adequately and appropriately 

undertaken by all concerned agencies. 

The BI shall establish a Foreign Student Desk which shall have the following functions: 

a. To handle and screen all applications/petitions of foreigners for conversion from any 

valid category admission to student visa or for the issuance of Special Study Permit and 

recommend appropriate course of action to the BI Commissioner. 

b. To process and act on 9f student visa extension application and to approve the same 

per semester or for cause, per year; 

c. To accredit Higher Educational Institution (HEIs) to accept foreign students in coordination 

with CHED; 

d. To implement approved 9f conversion and downgrading from 9f to 9a; 

e. To issue BI clearance to student visa applicants; 

f. To monitor the activities of foreign students. 

E. Monitoring 

Within a month and a half after the start of classes, the school, through its foreign 

students unit, shall submit to the BI, copy furnished CHED, NICA and NBI, an enrollment 

report on all foreign students with inclusion of names of foreign students who have been 

accepted but failed to enroll, either for the first time or for subsequent terms. Further, it shall 

submit a monthly status report to the BI, as may be deemed necessary, on whoever are 

missing, have transferred, dropped from the rolls and with derogatory record. Finally, at the 

end of each term, the school shall also report to the BI those foreign students who failed to 

take the final examinations for the term and those who have completed their courses. The 

report on promotions shall be submitted to the BI for appropriate action on requests for 

student visa extension. Non-compliance by schools to submit the reports shall be a ground 

for the cancellation by the CHED of their authority to accept foreign students. 

The NICA and the NBI shall check, whenever necessary, the activities of foreign 

students brought to their attention which appear to be inimical to the security of the State. 

Criminal complaints filed against foreign students shall be referred to the NBI for investigation 

and appropriate action. These agencies shall undertake steps necessary to safeguard the 

due process of valid application, visa issuance and entry authorization of foreign students in 

the country. 

The BI shall investigate, apprehend and prosecute, if necessary, foreign students who 

are not complying with Philippine immigration laws and regulations. Violation of immigration 

laws and regulations shall be a ground for the cancellation of a student visa and deportation 

of the student concerned.


F. Exemption 

The following shall be exempt from the coverage of this executive order: 

1. Tertiary enrollment in Philippine schools of the spouses and unmarried dependent 

children below 21 years old of the following categories of aliens shall not be required to 

secure a student visa and the BI special study permit; 

a. A permanent foreign resident; 

b. Aliens with valid working permits under Section 9(d), 9(g) and 47(a)(2) of the 

Philippine Immigration Act of 1940, as amended; 

c. Personnel of foreign diplomatic and consular missions residing in the Philippines; 

d. Personnel of duly accredited international organizations residing in the Philippines; 

e. Holders of Special Investorís Resident Visa (SIRV) and Special Retirees Resident 

Visa (SRRV); and 

f. Foreign students coming in the Philippines with 47(a) (2) visas issued pursuant 

to existing laws, e. g. P.D. 2021. 

This privilege is also extended to the principals who may wish to take advantage 

of the educational facilities on the country. 

2. Children of the above-mentioned admission categories who are already enrolled 

before their marriage and/or before reaching the age of 21 years shall be allowed to finish 

their studies and convert their admission category to that of student visa under Section 9(f) 

of the Philippine Immigration Act of 1940, as amended, for as long as their principals remain 

in the country. 

3. Spouses and children of personnel of foreign diplomatic and consular missions and 

duly accredited international organizations located in the Philippines who desire to remain in 

the Philippines to enroll for the first time or finish their studies higher than high school and 

qualify under prescribed regulations, shall be allowed to convert their admission category to 

that of a student visa under Section 9(f) of the Philippine Immigration Act of 1940, as amended, 

in accordance with the applicable procedure, in the event their principals lose there admission 

category as Foreign Government Official under Section 9(e) of the Philippine Immigration 

Act of 1940, as amended. The privilege is also extended to the principals who may wish to 

take advantage of the education facilities of the country. 

SEC. 2. Establishment and Composition of the Committee on Foreign Students. There 

is hereby created an Inter-Agency Committee of Foreign Students herein referred to as the 

Committee, which shall have the following membership: 

a. Commission on Higher Education - Chairman 

b. Department of Foreign Affairs - Co-Chairman

1990 


c. Department of Education, Culture and Sports - Member 

d. Bureau of Immigration - Member 

e. National Bureau of Investigation - Member 

f. National Intelligence Coordinating Agency - Member 

SEC. 3. Duties and Responsibilities of the Committee. The Committee shall have the 

following duties and responsibilities: 

a. Promulgate simplified procedures and implementing guidelines governing the entry 

and stay of foreign students in the Philippines, as well as rules and regulations limiting 

school transfer and course shifting of foreign students in accordance with the provisions 

of the Executive Order within sixty (60) days from the effectivity hereof; 

b. Monitor and coordinate the implementation of this Executive Order with the department 

and agencies concerned; 

c. Meet regularly to assess the progress of the whole program to ensure that the promotion 

of the Philippines as a center for education in the region is effectively encouraged and 

undertaken; 

d. Request representatives from other agencies and/or the private sector to attend its 

meetings, when it deems necessary and proper; and 

e. Submit a semi-annual report to the Office of the President, through the Office of the 

Executive Secretary, on the status of the foreign students in the country. The report shall 

be submitted before the end of September and February of the first and second semester, 

respectively, of each school year. 

The CHED shall provide the secretariat to support the Committee. 

SEC. 4. Penalty Clause. Any school found, after due investigation, by the CHED and/ 

or the BI to have violated any provision on compliance shall suffer cancellation of the authority 

to admit foreign students. 

SEC. 5. Repealing Provision. All executive issuances, regulations, or any part thereof, 

which are inconsistent with the provisions of this Executive Order are hereby repealed or 

modified accordingly. 

SEC. 6. Separability Clause. If, for any reason, any part or provision of the Executive 

Order shall be held unconstitutional or declared contrary to law, other parts or provisions 

hereof which are not affected thereby shall continue to be in full force and effect. 

SEC. 7. Effectivity. This Executive Order shall take effect immediately. 





óo0oó




Promulgating the Fourth Regular Foreign Investment Negative List 

WHEREAS, Republic Act (RA) No. 7042 also known as the Foreign Investment Act of 

1991, as amended by RA 8179, provides for the formulation of a Regular Foreign Investment 

Negative List covering investment areas/activities which may be opened to foreign investors 

and/or reserved to Filipino nationals; 

WHEREAS, the Regular Foreign Investment Negative List, consisting of Lists A and B, 

is effective for two years pursuant to Section 8 of RA 7042 as amended and its implementing 

Rules and Regulations; 

WHEREAS, there is a need to formulate a Fourth Regular Foreign Investment Negative 

List in view of the expiration of the existing list on 23 October 2000 and to reflect changes to 

List A and B provided in new laws and recommended by concerned government agencies; 



SECTION 1. Only the investment areas and/or activities listed in Annex A herewith 

shall be reserved to Philippine nationals, and hereafter shall be referred to as the Fourth 

Regular Foreign Investment Negative List. The extent of foreign equity participation in these 

areas shall be limited to the percentages indicated in the List. 

SEC. 2. Any amendment to List A may be made at any time to reflect changes 

instituted in specific laws while amendments to List B shall not be made more often than 

once every two years, pursuant to Section 8 of RA 7042 as amended, and of its Implementing 

Rules and Regulations. 

SEC. 3. All orders, issuances, rules and regulations or parts thereof, which are 

inconsistent with this Order are hereby revoked or modified accordingly. 

SEC. 4. This Order shall take effect on 24 October 2000. 





List A: Foreign Ownership is Limited by Mandate 

of the Constitution and Specific Laws 

ìANNEX Aî

1992 

No Foreign Equity 


1. Mass Media except recording (Art. XVI, Sec. 11 of the Constitution; Presidential Memorandum 

dated 04 May 1994) 

2. Practice of all professions 1 

a. Engineering 

i. Aeronautical engineering 

ii. Agricultural engineering 

iii. Chemical engineering 

iv. Civil engineering 

v. Electrical engineering 

vi. Electronics and communication engineering 

vii. Geodetic engineering 

viii.Mechanical engineering 

ix. Metallurgical engineering 

x. Mining engineering 

xi. Naval architecture and marine engineering 

xii. Sanitary engineering 

b. Medicine and allied professions 

i. Medicine 

ii. Medical technology 

iii. Dentistry 

iv. Midwifery 

v. Nursing 

vi. Nutrition and dietetics 

vii. Optometry 

viii.Pharmacy 

ix. Physical and occupational therapy 

x. Radiologic and x-ray technology 

xi. Veterinary medicine 

c. Accountancy 

d. Architecture 

e. Criminology 

f. Chemistry 

g. Customs brokerage 

h. Environmental planning 

i. Forestry 

j. Geology 

k. Interior design 

l. Landscape architecture 

m.Law 

n. Librarianship 

o. Marine deck officers 

p. Marine engine officers 

q. Master plumbing 

r. Sugar technology 

s. Social work 

t. Teaching 

(Art. XII, Sec. 14 of the Constitution; Sec. 1 of Republic Act No. 5181) 

1 This is limited to Filipino citizens save in cases prescribed by law


3. Retail trade enterprises with paid-up capital of less than US$2,500,000 (Sec. 5 of RA 

8762) 

4. Cooperatives (Ch. III, Art. 26 of RA 6938) 

5. Private security agencies (Sec. 4 of RA 5487) 

6. Small-scale mining (Sec. 3 of RA 7076) 

7. Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic 

zone (Art. XII, Sec. 2 of the Constitution) 

8. Ownership, operation and management of cockpits (Sec. 5 of Presidential Decree No. 

449) 

9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons (Art. II, Sec. 8 of 

the Constitution) 2 

10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological 

weapons (Various treaties to which the Philippines is a signatory and conventions 

supported by the Philippines) 2 

11. Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of RA 7183) 

Up to Twenty-Five Percent (25%) Foreign Equity 

12. Private recruitment, whether for local or overseas employment (Art. 27 of PD 442) 

13. Contracts for the construction and repair of locally-funded public works (Sec. 1 of Commonwealth 

Act No. 541, Letter of Instruction No. 630) except: 

a. Infrastructure/development projects covered in RA 7718; and 

b. Projects which are foreign funded or assisted and required to undergo international 

competitive bidding (Sec. 2(a) of RA 7718) 

Up to Thirty Percent (30%) Foreign Equity 

14. Advertising (Art. XVI, Sec. 11 of the Constitution) 

Up to Forty Percent (40%) Foreign Equity 

15. Exploration development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution) 

3 

16. Ownership of private lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of CA 141) 

17. Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 

16 of CA 146) 

18. Ownership/establishment and administration of educational institutions (Art. XIV, Sec. 4 

of the Constitution) 

19. Culture, production, milling, processing, trading excepting retailing, of rice and corn and 

acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof 4 

(Sec. 5 of PD 194; Sec. 15 of RA 8762) 

2 Domestic investments are also prohibited (Art. II, Sec. 8 of the Constitution; Conventions/Treaties to which 

the Philippines is a signatory) 

3 Full Foreign participation is allowed through financial or technical assistance agreement with the President 

(Art. XII, Sec. 2 of the Constitution) 

4 Full foreign participation is allowed provided that within the 30-year period from start of operation, the foreign 

investor shall divest a minimum of 60 percent of their equity to Filipino citizens (Sec. 5 of PD 194; NFA Council 

Resolution No. 193 s. 1998)

1994 


20. Contracts for the supply of materials, goods and commodities to government-owned or 

controlled corporation, company, agency or municipal corporation (Sec. 1 of RA 5183) 

21. Contracts for the construction of defense-related structures (Sec. 1 of CA 541) 

22. Project Proponent and Facility Operator of a BOT Project requiring a public utilities 

franchise (Art. XII, Sec. 11 of the Constitution; Sec. 2(a) of RA 7718) 

23. Operation of deep sea commercial fishing vessels (Sec. 27 of RA 8550) 

24. Adjustment companies (Sec. 323 of PD 612 as amended by PD 1814) 

25. Ownership of condominiums units where the common areas in the condominium project 

are co-owned by the owners of the separate units or owned by a corporation (Sec. 5 of 

RA 4726) 

Up to Sixty Percent (60%) Foreign Equity 

26. Financing companies regulated by the Securities and Exchange Commission (SEC) 

(Sec. 6 of RA 5980 as amended by RA 8556) 5 

27. Investment houses regulated by the SEC (Sec. 5 of PD 129 as amended by RA 8366) 5 

28. Retail trade enterprises with a minimum paid-up capital of US$2,500,000 but less than 

US$7,500,000 (Sec. 5 of RA 8762) 6 

List B: Foreign Ownership is Limited for Reasons of Security, Defense, Risk to 

Health and Morals and Protection of Small-and Medium-Scale Enterprises 

Up to Forty Percent (40%) Foreign Equity 

1. Manufacture, repair, storage, and/or distribution of products and/or ingredients requiring 

Philippine National Police (PNP) clearance. 

a. Firearms (handguns to shotguns), parts of firearms and ammunition therefor, instruments 

or implements used or intended to be used in the manufacture of firearms 

b. Gunpowder 

c. Dynamite 

d. Blasting supplies 

e. Ingredients used in making explosives: 

i. Chlorates of potassium and sodium 

ii. Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), 

calcium and cuprite 

iii. Nitric acid 

iv. Nitrocellulose 

v. Perchlorates of ammonium, potassium and sodium 

vi. Dinitrocellulose 

vii. Glycerol 

viii. Amorphous phosphorus 

5 No foreign national may be allowed to own stock in financing companies or investment houses unless the 

country of which he is a national accords the same reciprocal rights to Filipinos (Sec. 6 of RA 5980 as amended 

by RA 8556; PD 129 as amended by RA 8366) 

6 Full foreign participation shall be allowed after 25 March 2002 but in no case shall investments for establishing 

a store be less than US$830,000. Full foreign participation is currently allowed in the following categories: C) 

Enterprises with a paid-up capital of US$7,500,000 or more, provided that investments for establishing a store 

should not be less than US$830,000; and D) Enterprises specializing in high-end or luxury products, provided that 

the paid-up capital per store is not less than US$250,000 (Sec. 5 of RA 8762)


ix. Hydrogen peroxide 

x. Strontium nitrate powder 

xi. Toluene 

f. Telescopic sights, sniper scope and other similar devices (RA 7042 as amended by RA 

8179) 

2. Manufacture, repair, storage and/or distribution of products requiring Department of National 

Defense (DND) clearance: 

a. Guns and ammunition for warfare 

b. Military ordinance and parts thereof (e.g., torpedoes, mines, depth charges, bombs, 

grenades, missiles) 

c. Gunnery, bombing and fire control systems and components 

d. Guided missiles/missile systems and components 

e. Tactical aircraft (fixed and rotary-winged), parts and components thereof 

f. Space vehicles and component systems 

g. Combat vessels (air, land and naval) and auxiliaries 

h. Weapons repair and maintenance equipment 

i. Military communications equipment 

j. Night vision equipment 

k. Stimulated coherent radiation devices, components and accessories 

l. Armanent training devices 

m. Others as may be determined by the Secretary of the Department of National Defense 

(RA 7042 as amended by RA 8179) 

3. Manufacture and distribution of dangerous drugs (RA 7042 as amended by RA 8179) 

4. Sauna and steam bathhouses, massage clinics and other like activities regulated by law 

because of risks they impose to public health and morals (RA 702 as amended by RA 

8179) 

5. All forms of gambling, e.g. race track operation (RA 7042 as amended by RA 8179) 

6. Domestic market enterprises with paid-in equity capital of less than the equivalent of 

US$200,000 (RA 7042 as amended by RA 8179) 


óo0oó 


Establishing New Operational Guidelines for the Commissioner 

of Immigration in the Interest of National Security, 

Public Safety, Public Health and/or National Interests 

WHEREAS, pursuant to Presidential Decree No. 830 dated November 27, 1975 and 

Letter of Implementation No. 47 dated August 18, 1976 in relation to Book IV, Title III, Chapter 

10, Section 31 of the Administrative Code of 1987 (E.O. 292), the power and authority to

1996 


deport undesirable aliens is within the exclusive jurisdiction of the Immigration Board of 

Commissioners presided over by the Commissioner of Immigration; 

WHEREAS, under Article VII, Section 17 of the 1987 Constitution, in relation to Book 

III, Title I, Chapter 1, Section 1, of E.O. 292, the Commissioner of Immigration is under the 

control of the Chief Executive insofar as the authority to deport undesirable aliens who are in 

violation of immigration laws, rules and regulations is concerned; 

WHEREAS, it is necessary to establish new administrative procedures that will enable 

the Commissioner of Immigration to promptly address the issue of undesirable aliens, who, 

because of their well established nefarious activities in the Philippines, pose a clear and 

present danger to the national security, public safety, public health, and national interests. 


the Philippines, by virtue of the powers vested in me by law, do hereby promulgate the 

following new operational guidelines for implementation by the Commissioner of Immigration: 

SECTION 1. Authority to Issue Mission Orders for Verification and Investigation of 

Suspected Illegal Aliens - Upon a well-founded and reasonable determination by the 

Commissioner of Immigration, based on available and verifiable civilian, immigration, or 

military intelligence reports, that an alien has committed, is actually committing or is about to 

commit an act or omission in violation of immigration laws, rules and regulations, or in violation 

of Philippine laws, rules and regulations, which may constitute grounds for deportation, the 

Commissioner of Immigration or in his absence, the Acting Commissioner of Immigration is 

hereby authorized, in the interest of national security, public health, public safety and/or 

national interests, to issue a mission order directing appropriate officers of the Bureau of 

Immigration, whether organic or on detail, to conduct verification and investigation operations 

against the alien or aliens concerned, and if probable cause exists, to effect a warrantless 

arrest of such alien or aliens in accordance with Section 5, Rule 113 of the Rules of Court, if 

found in flagrante violating Philippine Immigration laws. 

SEC. 2. Submission of Reports to the President - The Commissioner of Immigration 

shall furnish the Office of the President a monthly report of deported aliens with their 

nationalities and grounds for their deportation, copy furnished the Secretary of Justice. 

SEC. 3 Repealing Clause - Provisions of other executive issuances and departmental 

orders inconsistent herewith are hereby repealed or modified accordingly. 

SEC. 4. Effectivity - This Executive Order shall take effect immediately. 





óo0oó




Imposing the Penalty of Suspension for Two (2) Months 

Without Pay on Benjamin V. Dela Cruz, Assistant City Prosecutor, 

City Prosecution Office of Quezon City 

This refers to the administrative complaint filed by Teresita Tepace-Bumolo and Zenaida 

S. Insilay against respondent Assistant City Prosecutor Benjamin V. de la Cruz of the City 

Prosecution Office of Quezon City for gross neglect of duty. 

The facts are undisputed. 

On November 11, 1996, complainants filed criminal complaints for grave oral defamation 

and grave threats (docketed as I.S. Nos. 96-24586 and 96-24587) against a certain Aida 

Agustin. These cases were assigned to respondent for the conduct of preliminary investigation. 

After the parties have filed their respective pleadings, the cases were submitted for resolution. 

Five (5) months later, the cases remain unresolved. This prompted complainants to file 

a motion for the early resolution of the said cases. When respondent still failed to resolve 

their cases, complainants sought the assistance of then Quezon City Prosecutor Candido 

Rivera to convince respondent to act on their cases. Similarly, complainants sought the aid 

of the Office of the Ombudsman to facilitate the early resolution of the cases. However, 

despite the intercessions of both the City Prosecutor and the Office of the Ombudsman, the 

cases remained unacted. 

Aggrieved by these unreasonable delays, complainants filed with the Department of 

Justice (DOJ) an administrative complaint against the respondent. On October 30, 1997, 

Chief State Prosecutor (CSP) Jovencito R. ZuÒo endorsed the said complaint to respondent 

and directed him to submit his comment and/or answer thereon within ten (10) days from 

receipt thereof. On February 6, 1998, CSP ZuÒo again directed respondent to submit his 

answer to the administrative complaint. To date, respondent failed to heed these directives. 

On the basis thereof, respondent was formally charged by the DOJ with gross neglect 

of duty and a formal investigation was initiated relative thereto. On the scheduled hearing, 

only complainants appeared while respondent was conspicuously absent. Thus, upon motion 

of the prosecuting attorney, the case was submitted for resolution. On the basis of available 

records, respondent was found guilty of the said charge and the Secretary of Justice 

recommended the penalty of suspension from office for a period of two (2) months without 

pay. 

We agree with the findings and recommendation of the DOJ. Section 3, Rule 112 of the 

Revised Rules on Criminal Procedure, which outlines the uniform procedure for conducting 

a preliminary investigation in accord with Presidential Decree No. 911, provides the following, 

to wit: 

ìSection 3. Procedure - Except as provided for in Section 7 thereof, no complaint 

or information for an offense cognizable by the Regional Trial Court shall

1998 


be filed without a preliminary investigation having been conducted in the following 

manner: 

a) The complaint shall . . . be accompanied by affidavits of complaint and his 

witnesses, as well as other supporting documents x x x ; 

b) If the investigating officer finds no grounds to continue with the inquiry, he 

shall dismiss the complaint. Otherwise, he shall issue a subpoena to the respondent 

attaching thereto a copy of the complaint, affidavits and to the supporting 

documents and granting him ten (10) days from receipt hereof within which to 

submit counter affidavits and other supporting documents; 

x x x x x x x x x 

f) Thereafter, the investigation shall be deemed concluded and the investigating 

officer shall resolve the case within ten (10) days therefrom. Upon the evidence 

thus adduced, the investigating officer shall determine whether or not there 

is sufficient ground to hold the respondent for trial.î (emphasis ours) 

While the foregoing provision only provides for a ten (10) day period within which to 

resolve cases under preliminary investigation, the DOJ, thru Department Circular No. 49 

dated July 14, 1993, grants more leeway to prosecutors by allowing them a reglementay 

period of up to sixty (60) days within which to resolve cases under preliminary investigation. 

Non-observance of this requirement constitutes a ground for administrative sanction against 

the defaulting prosecutor. In certain meritorious cases, i.e., those involving difficult questions 

of law or complex issues, the DOJ allows the prosecutors a longer period to decide the case, 

but only upon proper application therefrom has been made by the concerned prosecutor. 

There is no question that respondent failed to decide the case within the prescribed 

reglementary period. From the time the cases were submitted for resolution up to the time 

he was administratively charged by the DOJ, which spans more than two (2) years, respondent 

has not resolved the cases filed by the complainants. The intercessions of the City Prosecutor 

and the Office of the Ombudsman proved to be futile. Such conduct of respondent is 

unreasonable, in excusable and highly deplorable. It violates the complainantís constitutional 

right to due process and to speedy disposition of their cases. Prosecutors are mandated to 

adhere to the 60-day period within which to resolve cases under preliminary investigation. 

Otherwise, the publicís trust on our prosecution will be jeopardized. 

All prosecutors are reminded that, for the common people, justice means the fair and 

prompt disposition of cases. This is necessary not only to eradicate the docket congestion in 

our prosecution office, but also to keep the peopleís faith in our prosecution system. 

WHEREFORE, and as recommended by the Secretary of Justice, Assistant City 

Prosecutor Benjamin V. Dela Cruz is hereby SUSPENDED from office for a period of two (2) 

months without pay. 

Adopted: 04 Oct. 20000 

BY THE PRESIDENT:



(SGD). RONALDO B. ZAMORA 


óo0oó 


Imposing the Penalty of Dismissal from the Service 

on Assistant Provincial Prosecutor Arturo G. Cabaron, 

Provincial Prosecutorís Office of Cebu 

This refers to the formal charge (Administrative Case No. 95-010) against Arturo G. 

Cabaron, Assistant Provincial Prosecutor (APP), Provincial Prosecutorís Office of Cebu for 

grave misconduct. 

The formal charge stemmed from the alleged extortion by APP Cabaron thru his wife 

Brigida Cabaron (Brigida, for brevity), from the party litigants/relatives of litigants in the 

cases involving Josefina Aljo and Pablo Maningo. The facts of each case are treated 

separately, thus: 

RE: Josefina Aljo case 

Aljo testified that sometime in December, 1992, after being introduced by Rev. Zacarias 

Perocillo, her church pastor, to APP Cabaron, she sought the advise of the latter regarding 

five (5) bouncing checks issued to her by Gemma Clausen. APP Cabaron and Brigida assured 

her, ìkami ang bahala diyanî. On December 8, 1992, she brought the rubber checks to APP 

Cabaronís office and Brigida prepared the complaint-affidavit. A week later, Aljo went back 

to Cabaronís office and as agreed upon, gave Brigida two envelope: one, containing Five 

Thousand Pesos (P5,000.00) as partial payment for the attorneyís fees of Atty. Quijano, and 

the other, containing Three Thousand Pesos (P3,000.00) for Brigida. 

The criminal complaint against Clausen was assigned to APP Cabaron for preliminary 

investigation. During the hearing held in May 1993, Brigida convinced Aljo, in the presence 

of APP Cabaron, to withdraw her complaint against Clausen because the latter had showed 

them two (2) checks worth one million (P1,000.000.00) pesos each, which she (Clausen) 

could encash after forty-five (45) days. Aljo did not see the checks but she trusted the 

Cabarons because they were recommended to her by her church pastor. As per Brigidaís 

instruction, Aljo signed the affidavit of desistance prepared by Atty. Quijano. Brigida thereafter 

reminded her to pay Atty. Quijano the balance of Seven Thousand Pesos (P7,000.00) for 

his attorneyís fees. Subsequently, Brigida borrowed the amount of Ten Thousand Pesos 

(P10,000.00) from Aljo. At the expiration of the forty-five day period, Aljo discovered that the 

said million-peso checks was a ìfraudî. 

Faith Petrocillo, pastor of the El Shaddai Congregation, testified that Aljo authorized 

him to collect the Ten Thousand Pesos (P10,000.00) from Brigida. 

RE: Pablo Maningo case

2000 


Helen Maningo (Helen for brevity) testified that on May 31, 1994, she went to the 

Regional Office of the National Bureau of Investigation (NBI) and executed a sworn statement 

against the Cabaron spouses in connection with the arrest of Pablo Maningo, her brother-inlaw, 

during a raid in his house by elements of the PNP-CISC for illegal possession of 

ammunition on April 19, 1994. The case against Pablo Maningo was assigned to APP Cabaron 

for inquest. Helen and her companions attended the inquest proceedings. Brigida interviewed 

Pablo Maningo and his witnesses. APP Cabaron did not participate in the clarificatory 

examination. When Pablo Maningo informed them that his lawyer was Atty. Rolindo Navarro, 

Brigida recommended Atty. Quijano under the pretext that Atty. Navarro had some personal 

conflict with APP Cabaron. Brigida, in the presence of APP Cabaron, demanded and received 

from Helen an acceptance fee of Twenty Thousand Pesos (P20,000.00) for Atty. Quijano. 

Brigida promised Helen that the case could be amicably settled with the help of APP Cabaron 

and two (2) other prosecutors. On April 22, 1994, Helen went back to APP Cabaronís office, 

as instructed, to discuss the settlement of the case. Brigida informed her that the amount 

needed for the three (3) prosecutors was Seventy-Five Thousand Pesos (P75,000.00) to be 

delivered to the Cabaron residence. On the next day, Helen together with Florecita Lapag 

gave the amount of FiftyThousand Pesos (P50,000.00) to Brigida. On April 28, 1994, APP 

Cabaron and Brigida instructed Pablo Maningo to look for a military man who would admit 

ownership of the seized ammunition. The idea baffled Pablo Maningo since he thought that 

he had a good defense because the place where the ammunitions was seized was leased to 

Roberto Castanas. As per Cabaronís instruction, an affidavit was prepared for SPO3 Maximo 

Parawan of the Danao City Police Station. However, said officer although willing to have his 

name used in the memorandum receipt was reluctant to swear to a falsehood. Brigida 

reminded Helen of the balance of Twenty Five Thousand Pesos (P25,000.00) which was to 

be paid on installment basis at Five Thousand Pesos (P5,000.00) per installment. 

SPO3 Parawan corroborated the statements of Helen regarding the advice to them of 

APP Cabaron to look for someone from the military or the PNP who would admit ownership 

of the seized ammunition. 

In defense, APP Cabaron denies the charge and avers that he dismissed the aforestated 

complaint filed by Aljo against Clausen on the basis of Aljoís affidavit of desistance. 

With respect to the Maningo case, he contends that Helen Maningo who followed-up 

the complaint against Pablo Maningo, was discourteous and demanding in asking for the 

early resolution of the case. He responded by saying ìI will resolve the case based on the 

evidence on recordî. Helenís complaint against him before the Ombudsman was dismissed 

for insufficiency of evidence. The similar case which was filed against him by the NBI before 

the Ombudsman was also dismissed. 

For her part, Brigida Cabaron argues that she never misrepresented herself as an 

employee of the Department of Justice; that she never transacted with Aljo, in that, she is 

able to fix her case by proffering the services of Atty. Quijano as her lawyer; that she borrowed 

money from Aljo in the course of the latterís business undertaking and not with the promise 

to exert influence on APP Cabaron to decide the case in her favor; and that, she had already 

paid her indebtedness to Aljo. 

With respect to the complaint filed by Helen Maningo against them. Brigida claims that 

the first time she met Helen was in the office of APP Cabaron when she was following-up a


case. The second time was when Helen went to their house, pleading that she be permitted 

to talk to APP Cabaron. 

After the formal investigation, the Secretary of Justice found that the testimonies of the 

complainants and their witnesses were more credible than those of the respondents, thus 

proving the imputation of grave misconduct by substantial evidence, which is the quantum of 

proof required in administrative cases. The affidavits in support of the complaint were 

executed by disinterested persons who were not expected to fabricate the same for purpose 

of lending credence to the complaint and their statements were straightforward, consistent 

and logical even when subjected to the intensive cross-examination by the defense counsel. 

All the testimonies yielded the following: that Brigida Cabaron was a permanent fixture in the 

office of APP Cabaron; her imposition upon the complainants for the availment of the services 

of Atty. Quijano, coupled with the demand for the payment of his attorneyís fees, and, the 

collection of additional amounts for APP Cabaron and herself. 

APP Cabaron seemed to have been oblivious of the basic tenet that this office is a 

public trust, which exacts moral righteousness and uprightness. As such official, he must 

comport himself at all times in such manner that his conduct official or otherwise, can bear 

the most searching scrutiny of the public who look up to him as the epitome of integrity and 

justice. 

WHEREFORE, APP Arturo G. Cabaron is hereby found administratively liable for 

grave misconduct in the performance of his duties. Consequently, he is hereby dismissed 

from the service with forfeiture of all benefits and disqualification from re-employment in the 

government service. 






óo0oó 


Recalling Administrative Order No. 97 Dismissing Vigor D. Mendoza II, 

Board Member, Land Transportation Franchising and Regulatory Board, 

Department of Transportation and Communications, from the Service 

On November 23, 1999, this Office issued Administrative Order (AO) No. 97 dismissing 

Vigor D. Mendoza a Board Member, Land Transportation Franchising and Regulatory Board 

(LTFRB), for having issued a memorandum, under his sole signature, ordering the respective 

heads of the LTFRBís Technical and Legal Division to receive applications for PUB Certificate 

of Public Convenience (CPC) and setting all pending cases for hearing, notwithstanding the 

LTFRBís existing moratorium policy on the matter.

2002 


On January 4, 2000, respondent filed a motion for reconsideration. 

For its part, the Department of Transportation and Communications (DOTC), through 

Secretary Vicente C. Rivera, Jr., sought the recall of the aforementioned Administrative 

Order on the ground that respondent merely acted pursuant to endorsements/ 

recommendations from the DOTC. Furthermore, it is urged that the issuance of the subject 

memorandum did not in any way lift, alter, or change the existing moratorium policy. 

Based on the foregoing representations, it would appear that respondent acted, under 

the premises, in good faith and without any dishonest motive. Accordingly, the finding by the 

Presidential Commission Against Graft and Corruption upon which AO No. 97 was principally 

predicated is without factual basis. 

WHEREFORE, and as recommended by the Department of Transportation and 

Communications, Administrative Order No. 97 dated November 23, 1999, is hereby recalled. 

Accordingly, VIGOR D. MENDOZA II, shall remain in his position and shall continue in the 

exercise of his duties as Board Member, Land Transportation Franchising and Regulatory 

Board. 






óo0oó 


Reprimanding Respondent Roger P. Perez, 

Executive Director of the Commission on Higher Education (CHED) 

This is an administrative case against Dr. Roger P. Perez, formerly Officer-in-Charge 

of the National Capital Region (NCR) of the Commission on Higher Education (CHED) and 

currently Executive Director of the said Commission, for (1) selling in 1999 thesis and 

dissertation books stored at the Commission on Higher Education (CHED), NCR, to the La 

Salette College in Isabela; and (2) serving as professor on weekends in the Graduate School 

of the University of La Salette, Isabela City. The charges were investigated by the Presidential 

Commission Against Graft and Corruption (PCAGC) 

The action of the Commission on the complaint as well as its findings and 

recommendation thereon embodied in its Resolution dated March 14, 2000, are hereunder 

quoted, to wit:


ìThe charge against respondent Roger P. Perez, who was then the Officer-in- 

Charge of CHED-NCR, and presently the Executive Director of the Commission 

on Higher Education, consists of two (2) specifications: (1) that as the then OIC 

of CHED-NCR, respondent sold or caused the sale to the University of La Salette 

of Santiago City of the thesis and dissertation books submitted by private schools 

to the CHED-NCR, in order to raise funds with which to procure computer units 

and a television set for use of the office; and (2) that respondent served as a 

professor on weekends in the Graduate School of the said University. 

ìFor his defense as contained in his verified Answer dated September 22, 

1999 and in his Position Paper dated October 26, 1999 (Records, pp. 45-57), in 

relation to the first specification above, respondent Perez denies having sold to 

the University of La Salette the thesis and dissertation books on file in the storeroom 

of CHED-NCR, although he admits having allowed the said University to 

take possession of the said materials for free or without any monetary consideration 

whatsoever. 

ìFurther, respondent avers that the computer units adverted to in the complaint 

have been actually donated to the CHED-NCR by University of La Salette 

while the television set was purchased from available office funds; that he acted 

well within his authority as the then head of CHED-NCR, since the subject thesis 

and dissertation books are not considered ìrecordsî within the purview of Department 

Order No. 13-A dated February 3, 1988, so that the disposition of said 

materials was at his discretion as the then agency head concerned; that even 

before he took over as OIC of CHED-NCR, the previous head of said office had 

allowed other institutions of higher learning to secure copies of the thesis and 

dissertation books from its storeroom; that he did not act maliciously nor negligently 

when he allowed the University of La Salette to take possession of the 

questioned materials since before he took action, he sought the advice of the 

Records Officer of CHED-NCR and was informed that there were no formalities 

in the disposal of said records inasmuch as they are not technically government 

property; and that he has not in any way benefited personally from the fact that 

he allowed the University of La Salette to take the questioned books for use in its 

library. 

ìRespondent attached to his Answer a copy each of the Memorandum of Agreement 

dated January 19, 1999 and Deed of Donation dated January 23, 1999, 

both of which he signed with Rev. Romeo B. Gonzales, MS, of the University of 

La Salette (Records, pp. 36-40). 

ìAnent the second specification of having served as ëprofessor on weekends,í 

respondent denies having been a regular professor at the University of La Salette, 

although he admits having conducted lectures on specific topics every now and 

then in the Graduate School of said University for which he received a token 

honorarium in the amount of P500.00 for every lecture that he conducted. 

Corollarily, respondent points out that even admitting for the sake of argument 

that he was a part-time professor at the University of la Salette, he was at the 

time armed with an authority to teach signed by then (CHED) Chairman Angel C. 

Alcala (Records, p. 63).

2004 


ìThe issue to be resolved in the instant case are as follows: 

ì1. Re: Disposition of the thesis and dissertation books - 

(a) Whether or not respondent Perez as the then OIC of CHED-NCR was 

authorized to dispose of the questioned thesis and dissertation books, University 

of La Salette to take possession of the same; 

(b) Whether or not the computer hardwares donated to CHED-NCR by the 

University of La Salette, in token of its appreciation for the bestowal of the 

questioned thesis and dissertation books to it, have been properly booked-up as 

required under government rules and regulations; and 

(c) Whether or not there are graduate students who may have been prejudiced 

as a consequence of the transfer of the subject thesis and dissertation 

books to the University of La Salette from CHED-NCR? 

2. Re: Teaching Activities - 

Whether or not respondent Perezí teaching activities at the University of La 

Salette is violative of any existing law or rule? 

ìAfter a careful evaluation of the records, this Commission finds that on the 

basis of the Memorandum of Agreement dated January 19, 1999, which respondent 

Perez entered into for the Commission on Higher Education - NCR with 

Rev. Romeo B. Gonzalez of the University of La Salette, 1971 copies of thesis 

and dissertation books have been transferred from CHED-NCR to the said University 

(Records, p. 85). 

ìIn this connection, this Commission believes that in relation to issue 1(a) 

above, the contention of respondent that the subject thesis and dissertation books 

do not constitute ërecordsí within the purview of DECS Department Order No. 13- 

A dated February 3, 1988, does not hold water. Said Department Order under its 

Definition of Terms (Article II) provides. 

ëRecords. Any paper, book, photograph, motion picture, film, microfilm, X-ray 

films, sound recording, drawing map or other document of any physical form or 

character whatever or any copy thereof, that has been made by any entity or 

received by it in connection with the transaction of public business, and has been 

retained by that entity or its successor, as evidence of the objectives, organizations, 

functions, policies, decisions, procedures, operations or other objectives of 

the government or because of the information contained thereiní (Underscoring 

supplied). 

ìThus, contrary to the claim of respondent, it is clear and definitive on the 

basis of the aforequoted provision that the subject thesis and dissertation books 

are ërecordsí under the contemplation of Department Order No. 13-A of the DECS, 

since it cannot be denied that the said books have been submitted to and received 

of CHED-NCR as part of the supporting papers for applications of private 

institution of higher learning for the issuance of special orders for graduation of


students from their respective programs at the graduate level, and that the list of 

specific documents under the General Records Disposition Schedule of said Department 

Order is certainly not exclusive nor all embracing. 

ìLikewise the submission of respondent to the effect that in allowing the University 

of La Salette to take possession of the subject thesis and dissertation 

books, he acted well within his authority as the then OIC of CHED-NCR, which 

had custody of the said books, and did not commit any breach of any existing 

laws, rules or regulations on account of said disposition of the subject thesis and 

dissertation books, yet it cannot be denied that this authority on the matter, if any, 

is not plenary, in the sense that his action or decision on the disposition of unnecessary 

or useless records of the agency is subject to the approval of his 

department head, as may be gleaned from Section 49, Chapter 12, Book I of 

Executive Order No. 292, and the disposal of unnecessary or useless records of 

an agency is subject to the audit jurisdiction of the Commission on Audit (COA), 

compliance with requirements on records disposition as prescribed by the Records 

Management and Archives Office (RMAO), and submission of a report on such 

disposal to the said Office, as provided in Sections 10 and 11 of Executive Order 

No. 301 (1987) as implemented through Department Order No. 12-A dated February 

3, 1988 of the Department of Education, Culture and Sports (DECS). Needless 

to say, respondent Perez failed to comply with all of the said requirements 

under the relevant laws and rules. 

ìNeither is it valid as a defense for respondent Perez to cite the previous 

similar actions of his predecessor in office at CHED-NCR, who has already retired 

from the government service, in having likewise allowed in the past other 

schools to secure copies of the subject thesis and dissertation books from the 

storeroom of CHED-NCR, for the simple reason that such actions were clearly 

unauthorized and violative of existing law or rules. 

ìFortunately for respondent, in the present case it is evident that in deciding 

on the disposition of the subject thesis and dissertation books he was guided by 

good faith and imbued only with good motives as borne out by the fact that his 

action on the matter had been reduced unto writing, which he could have done 

surreptitiously had he been motivated and/or disposed otherwise; and that in the 

ultimate analysis, it is quite obvious that the transaction with respondent Perez 

had with the University of La Salette on the subject thesis and dissertation books, 

did not result in any disadvantage or injury to the Government. 

ìFor this violation, therefore, respondent Perez should be held accountable 

and liable only for the light offense of NEGLECT OF DUTY. 

ìRegarding issue 1(b) above, the respondent submitted as part of his evidence 

a copy of the Invoice Receipt for Property dated February 15, 1999, signed 

by him, for the computer hardware donated to CHED-NCR by the University of 

La Salette (Records, p. 64). Since the evidence submitted was not considered as 

a sufficient proof to show that the donated items were then properly booked-up 

as government properties, the CHED Resident Auditor Ms. Luzviminda V. Rubico, 

State Auditor IV, was requested to verify the relevant records in CHED-NCR and 

she submitted the following report:

2006 


ëx x x the undersigned verified the ëCertified True Xerox Copyí of the invoice 

Receipt for Property from the original. I also accounted the donations and verified 

the corresponding Memorandum Receipts. Order donated units were not issued 

yet, hence no MR but were found to be stored in the Office of the Director. Also 

found were two units overhead projector, per Deed of Donation four pointers 

were listed but three was (sic) actually counted. As alleged, the other printer was 

exchanged for four scanners. 

The donations were booked-up per JV No. 0523641 dated October 22, 

1999 in the amount of P511,402.72. The printers and projectors were booked up 

without costí (Records, pp. 66-76). 

On the basis of the aforequoted report of the CHED Resident Auditor, it is 

clear that although belatedly, the donated computer items from the University of 

La Salette had been properly booked-up as government properties as of October 

22, 1999. 

ìAccordingly, it is the sense of this Commission that respondent Perezí accountability 

on this issue is considered moot and academic. 

ìAnent issue 1(c) above, it is believed that the respondentís explanation to the 

effect that it could not have been possible for any student to have been prejudiced 

as a consequence of the questioned disposal of the subject thesis and 

dissertation books, for the reason that the said records ëwere merely stored 

inside the storeroomí of the CHED-NCR, and the same records could not be 

systematically filed nor properly maintained since the CHED-NCR does not maintain 

a library in which the materials could have been housed and neither does the 

said Office employ a librarian, should be considered as satisfactory. At any rate, 

considering that the present complaint is anonymous, there was simply no feasible 

way of determining the graduate students who may have been prejudiced 

by the respondentís action. 

ìFinally, the Commission found no contradictory evidence to belie the denial 

interposed by respondent that he has been a regular professor at the University 

of La Salette; nor on his admission that he only occasionally conducted lectures 

on specific topics in the Graduate School of the said University, for which, he was 

paid a token honorarium of P500.00 for every lecture that he conducted, which 

was confirmed or corroborated by the President of the University of La Salette. 

Additionally, respondent points out that even assuming for the sake of argument 

that he was a part time professor in the said University, he was, however, provided 

at the time with an authority to teach signed by then CHED Chairman Angel 

C. Alcala. 

ìThis Commission believes that on this specification respondent Perez has 

not violated any law or rule, since his involvement of conducting lectures on specific 

topics every now and then in the Graduate School of the University of La 

Salette for which he was correspondingly compensated in the form of a token 

honorarium, does not constitute employment; and that, moreover, since the University 

of La Salette is situated outside the territorial jurisdiction of CHED-NCR, it 

is axiomatic that respondent Perez as the then OIC of CHED-NCR did not have


any direct supervisory or regulatory ascendancy or authority over the said University. 

ìThis specification should, therefore, be likewise set aside. 

ìWHEREFORE, premises considered, it is hereby recommended to His Excellency, 

President Joseph Ejercito Estrada, that respondent Roger P. Perez, 

formerly Officer-in-Charge of the National Capital Region of the Commission on 

Higher Education, be REPRIMANDED for the unauthorized disposal of the subject 

thesis and dissertation books at the CHED-NCR, in violation of Section 49, 

Chapter 12, Book 1 of Executive Order No. 292 and Sections 10 and 11 of Executive 

Order No. 301 (1987), as implemented by Department Order No. 13-A 

dated February 3, 1998 of the Department of Education, Culture and Sports. It is 

further recommended that the charge against the respondent for serving as professor 

on weekends in the Graduate School of the University of La Salette be 

dismissed for lack of merit. 

ìSO RESOLVEDî. 

After a careful review of the case, I concur in the findings and recommendations of the 

PCAGC. 

WHEREFORE, and as recommended by the Presidential Commission Against Graft 

and Corruption, respondent Roger P. Perez, formerly OIC of CHED-NCR and currently 

Executive Director of the Commission on Higher Education (CHED),is hereby 

REPRIMANDED for violation of Section 49, Chapter 12, Book I of Executive Order No. 292 

and Sections 10 and 11 of Executive Order No. 301 (1987), as implemented by Department 

Order No. 13-A dated February 3, 1988 of the Department of Education, Culture and Sports. 






óo0oó 


Amending Executive Order Numbers 183 and 246 and 

Providing for the Adjustment in the Dividend Rate of the 

Philippine Ports Authority and the Development Bank 

of the Philippines on their 1999 Net Earnings 

Pursuant to Section 5 of Republic Act No. 7656

2008 


WHEREAS, Section 1 of Republic Act No. 7656 provides that: 

ìSection 1. Declaration of Policy. It is hereby declared the policy of the State 

that in order for the National Government to realize additional revenues, government-owned 

and/or controlled corporations, without impairing their viability and 

the purposes for which they have been established, shall share a substantial 

amount of their net earnings to the National Government.î 

WHEREAS, Section 5 of RA 7656 provides that: 

ìSection 5. Flexible Clause. In the interest of national economy and general 

welfare the percentage of annual net earnings that shall be declared by a government-owned 

and/or controlled corporation may be adjusted by the President of 

the Philippines upon recommendation by the Secretary of Finance. 

WHEREAS, Executive Order No. 183 was issued on 10 December 1999 providing for 

the adjustment in the dividend rate of the Philippine Ports Authority from fifty percent (50%) 

to fifteen percent (15%) on its 1999 net earnings. 

WHEREAS, Executive Order No. 226 was issued on 03 April 2000 providing for the 

adjustment in the dividend rate of the Development Bank of the Philippines from fifty percent 

(50%) to ten percent (10%) on its 1999 net earnings. 

WHEREAS, Executive Order No. 246 was issued on 20 May 2000 amending Executive 

Order No.226 and providing for the adjustment in the dividend rate of the Development Bank 

of the Philippines from ten percent (10%) to thirteen percent (13%) on its 1999 net earnings 

equivalent to an amount not lower than P233 M. 

WHEREAS, in order to raise additional revenue for the National Government, there is 

a need for PPA and the DBP to remit additional dividends to the Bureau of the Treasury. 



SECTION 1. The percentage of net earnings to be declared and remitted by the PPA 

as provided in Executive Order No. 183 is adjusted from fifteen percent (15%) to fifty percent 

(50%) provided that total remittance of PPA should not be lower than Six Hundred Eleven 

Million Pesos (P611 M). 

SEC. 2. The percentage of net earnings to be declared and remitted by the DBP as 

provided in Executive Order No. 246 is adjusted from thirteen percent (13%) to thirty percent 

(30%) provided that total remittance of DBP should not be lower than Five Hundred Thirty 

Million Pesos (P530 M). 

SEC. 3 The adjusted dividend rates provided for under Sections 1 and 2 hereof are 

only applicable on 1999 net earnings of the PPA and DBP. 

SEC. 4. This Executive Order shall take effect immediately.







óo0oó 


Monetization of Leave Credits of 

Government Officials and Employees 

WHEREAS, the Government fully appreciates the valuable role of government officials 

and employees in providing vital services to the population at large; 

WHEREAS, in recognition of this vital role, it is the policy of the Government to 

continuously look for the welfare of government officials and employees; 

WHEREAS, pursuant to this policy, the Government deems it proper to provide 

necessary additional funds to these officials and employees to finance the education, health 

or other emergency expenses of these officials and employees, or any member of their 

family by allowing them to monetize a portion of their vacation/sick leave credits tax-free 

pursuant to Memorandum Circular No. 31, s. 1991 and Management Circular No. 1, s. 1991 

as amended by Joint CSC DBM Circular No. 2-97, s. of 1997; 

WHEREAS, it has come to my attention that the Bureau of Internal Revenue had issued 

various rulings on the taxability of monetized leave credits, Section 2.78.1 (A) (7), p. 24 of 

Revenue Regulation No. 2-98 dated April 17, 1998, being the latest, which rulings are in 

direct contrast to the CSC intent when the policy on monetization of leave credits tax-free 

was institutionalized in 1991 as per its Resolution No. 992630 dated December 2, 1999; 

WHEREAS, said rulings create confusion on the various government bodies whether 

or not said monetized leave credits are subject to income tax and withholding tax; 

WHEREAS, said rulings have discouraged the application for monetization of leave 

credits by many officials and employees despite urgent/emergency needs; 

WHEREAS, it is my concern and constitutional duty to be a watchman of this problem 

and provide solution for the same; 


by virtue of the powers vested in me by the Constitution, do hereby order and direct: 

SECTION 1. Tax Exemption Status of Monetized Leave Credits. The monetized 

leave credits of government officials and employees shall continue to be exempted 

from income tax.

2010 


SEC. 2. Abrogation of BIR Ruling on Monetized Leave Credits. Hence, pursuant to 

Section 17, Article VII of the Constitution, I hereby abrogate all previous rulings, including 

Section 2.78.1 (A) (7), p. 27 of Revenue Regulation No. 2-98 dated April 17, 1998 issued by 

the Bureau of Internal Revenue which subjected the monetization of leave credits to income 

tax, which I have noted to be inconsistent with the provisions of Republic Act (R.A.) No. 

8424, the Tax Reform Act of 1997î, as well as the intention on the grant of such benefits. 

SEC. 3. Implementation in Government Bureaucracy. Accordingly, all heads of 

departments and agencies and others concerned are enjoined to implement the strict 

observance of this Order. 







óo0oó 


Adjusting the Dividend Rates of Selected Government 

Owned and/or Controlled Corporation on their 

1999 Net Earnings and Further Adjusting Dividend 

Rates of the Land Bank of the Philippines on its 1996, 

1997 and 1998 Pursuant to Section 5 

of Republic Act No. 7656 

WHEREAS, Section 1 of Republic Act No. 7656 provides that: 

ìSection 1. Declaration of Policy. It is hereby declared the policy of the State 

that in order for the National Government to realize additional revenues, government-owned 

and/or controlled corporations, without impairing their viability and 

the purpose for which they have been established, shall share a substantial amount 

of their net earnings to the National Government.î 

WHEREAS, to support the viability and mandate of government owned and/or controlled 

corporations (GOCCs) and the government financial institutions (GFIs), their liquidity, retained 

earnings position, capital position in real terms and medium-term plans and programs were 

considered in the determination of the reasonable dividend rates on the net earnings of such 

corporations. 

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance recommended 

the adjustment on the percentage of annual net earnings that shall be declared by the Manila


International Airport Authority (MIAA), Public Estate Administration (PEA) and Land Bank of 

the Philippines (LBP) in the interest of national economy and general welfare. 

NOW, THEREFORE I, JOSEPH EJERCITO ESTRADA, President of the Philippines, 


SECTION 1. The percentage of 1999 net earnings to be declared and remitted by the 

MIAA, PEA and LBP as dividends to the National Government as provided for under Section 

3 of Republic Act No. 7656 is adjusted from at least fifty percent (50%) to at least the rates 

specified hereunder. 

1. Manila International Airport Authority (MIAA) 30% 

2. Public Estates Authority (PEA) 20% 

3. Land Bank of the philippines (LBP) 0% 

Provided, however, that the dividend remittance of the MIAA and the PEA corresponding 

to their 1999 earnings should not be less than Pesos Two Hundred Fifty Five Million (P255 

M) and Pesos Six Million (P6 M), respectively. 

SEC. 2 The percentages of dividend to be declared by the LBP on its 1996, 1997 and 

1998 earnings are further adjusted from the rates specified under Executive Order Numbers 

227, 228 and 131 to the rates specified hereunder: 

1996 Net earnings 15.7% 

1997 Net earnings 9.7% 

1998 Net earnings 0% 

Provided, however, that the dividend remittances of LBP on its 1996 and 1997 net 

earnings shall not be more than P465.44 and P446.56M to avoid the impairment of the 

capital position of LBP in real terms. 

SEC. 3. This Executive Order shall take effect immediately. 






óo0oó 


Amending Executive Order No. 8 Creating 

A Presidential Anti-Organized Crime Commission, 

to Investigate and Prosecute Criminal 

Elements in the Country

2012 


WHEREAS, there is a need to formally place under Presidential Anti-Organized Crime 

Commission the various Task Forces against organized crimes; 

WHEREAS, a sustained, relentless and dedicated campaign to minimize organized 

and syndicated crimes as well as to neutralize their protectors in government are among the 

priorities of the administration; 

WHEREAS, the Administrative Code of 1987 empowers the President with the 

continuing authority to reorganize the Office of the President and to transfer functions from 

one department or agency to another; 

WHEREAS, the creation of the Presidential Anti-Organized Crime Task Force and 

other task forces especially tasked to investigate and prosecute criminal syndicates and 

their protectors is imperative to bring about focus and substantive results in the campaign 

against criminality and corrupt practices; 

WHEREAS, there is a need to identify and effectively prosecute criminal groups and 

their protectors in government through efficient intelligence and counter-intelligence efforts; 



SECTION 1. Organization. There is hereby created a Presidential Anti-Organized 

Crime Commission (PAOCC), hereinafter referred to as the Commission, under the Office 

of the President. 

The existing task forces against organized crimes shall be under the control and 

supervision of the Commission. 

The President may create or abolish task forces or special project groups as the need 

arises. 

SECTION 2. Composition. The Presidential Anti-Organized Crime Commission shall 

be composed of the following: 

The President - Chairman 

The National Security Adviser - Vice-Chairman 

The Secretary of Justice - Member 

The Secretary of the Interior and 

Local Government - Member 

The Secretary of National Defense - Member 

The Chief of Staff, Armed Forces of 

the Philippines - Member 

Director-General, Philippine National Police - Member 

Four (4) representives from the Private 

Sector to be appointed by the President - Member 

The Chairman of the Commission may create an Executive Committee, define its 

functions and designate its members from among the members of the Commission.


The Commission shall exercise general control and supervision over the Task Forces 

or Special Project Groups. It shall enlist the assistance of civic and other similar associations 

and provide a forum for continuing consultation among concerned sectors of our society 

leading to the formulation of policies to be recommended to the President in the form of 

issuances and legislation. 

SECTION 3. Powers and Functions of the Commission. The Presidential Anti-Organized 

Crime Commission (PAOCC) shall have the following powers and functions: 

a. Prepare and implement a fast track anti-crime and anti-graft and corruption action 

agenda and adopt appropriate measures to ensure an effective and efficient anti-crime drive; 

b. Conduct intelligence and counter-intelligence operations to identify government 

officials and employees, crime syndicates and their cohorts who are involved in criminal 

activities; 

c. Cause or direct the immediate arrest, investigation and speedy prosecution of crime 

syndicates, government officials and employees and their cohorts, with due regard to 

constitutional processes; 

d. Refer the cases at hand, as the Commission or the Task Forces may deem proper 

and necessary, to the Department of Justice, and/or other appropriate law enforcement 

agencies for investigation or prosecution, as the case may be; 

e. Follow-up the progress of on-going investigation and prosecution of cases taken 

cognizance of by the Task Forces; 

f. Recommend the passage of appropriate anti-crime issuances and legislations; 

g. Select and recruit personnel from within the PNP, the AFP and other law enforcement 

agencies for assignment to the Task Forces subject to the conformity of the agency concerned; 

h. Enlist the assistance of any department, bureau, office, agency or instrumentality of 

the Government, including government-owned and/or controlled corporations, in the anticrime 

and anti-graft and corruption drive, which may include the use of their respective 

personnel, facilities and resources for a more resolute prevention, detection and investigation 

of crime and prosecution of their perpetrators; 

i. Subject to the existing laws, grant monetary rewards or incentives to informants 

giving vital information leading to the successful prosecution of criminal offenders and corrupt 

government officials; 

j. Coordinate with the Witness Protection Security and Benefits Program Committee of 

the Department of Justice to evaluate and assess witness who may qualify under the 

provisions of Republic Act No. 6981, otherwise known as the Witness Protection And Benefit 

Act; 

k. Subject to the approval of the President, authorize access to documents, installations 

and facilities in pursuit of specific crime investigation over government agencies and 

government-owned or controlled corporations; and

2014 


l. Recruit civilian personnel and enlist their services for intelligence gathering efforts. 

SECTION 4. Offenses Covered. The Presidential Anti-Organized Crime Commission 

shall have the authority to take cognizance of the following crimes. 

a. Those committed by organized/syndicated crime groups, including but not limited to 

gunrunning, illegal logging, robbery/hold-up, kidnapping for ransom, white slavery, illegal 

recruitment, carnapping, smuggling, piracy, drug trafficking, falsification of land titles and 

other government forms, large scale swindling, film piracy, counterfeiting and bank frauds; 

b. Those considered and punished as heinous crimes under Republic Act No. 7659 

(Heinous Crime law); 

c. Those committed by the members of the Philippine National Police and/or the Armed 

Forces of the Philippines; 

d. Those committed by officials and employees of government agencies including 

government-owned and controlled corporations; 

e. Such other criminal offenses as the President may determine from time to time. 

An organized/syndicated crime group for purposes of this Executive Order means a 

group of two or more persons collaborating confederating or mutually helping one another in 

the commission of any crime and sometimes enjoying the protection of people in the 

government and public service. 

The President of the Philippines shall delineate and identify the specific offenses or 

crimes that will be handled by the Task Forces or Special Project Groups. 

SECTION 5. Agencies Assistance. In the performance of its functions, the Commission 

and its Task Force or Special Project Groups may call for assistance from any government 

agencies and instrumentalities including local governments. 

SECTION 6. Composition and Leadership of Task Forces. The Task Forces or Special 

Project Groups shall be composed of selected PNP/AFP members and respresentatives 

from other government agencies. The Head of the Task Forces/Special Project Groups 

shall be appointed or designated by the President. 

SECTION 7. Command and Control. The flow of command and control of the Task 

Forces shall be as follows: 

a. The Task Force Chief shall report and be directly responsible to the President; 

b. The Task Force Chief shall have immediate supervision and control over all units of the 

Task Forces. He is authorized to designate duties and functions of personnel under him; 

c. The component units from the PNP,AFP, DOJ and selected/chosen representatives of 

other government agencies shall be attached to the Task Forces by their respective mother 

units. The Task Forces shall have direct operational and supervisory authority over these 

personnel.


SECTION 8. Funding. The budget of the Presidential Anti-Organized Crime Commission 

and its Task Forces shall be incorporated in the budget proposal of the Office of the President. 

The Chairman of the Commission shall determine the budgetary allocation of the Task 

Forces/Special Project Groups, law enforcement agencies and the Armed Forces of the 

Philippines that are involved in the campaign against organized crimes. 

SECTION 9. Operating Guidelines. The Commission and the Task Forces/Special 

Project Groups shall adopt, in coordination with concerned law enforcement agencies, such 

operating guidelines as may be necessary to implement this Executive Order, subject to the 

approval of the President. It shall submit to the President through the Commission, reports 

of its activities with appropriate recommendations for the information and guidance of the 

President. 

The existing Task Forces shall continue to perform their respective functions as provided 

in the Executive Orders creating them except those provisions that are inconsistent with the 

provisions of this Executive Order. 

SECTION 10. Coordinating Instructions. The intendment of this issuance is to put strong 

and intensified focus against organized/syndicated crimes, heinous and related offenses to 

be addressed by the Task Forces in the course of the governmentís anti-crime campaign, 

while the Philippine National Police (PNP) shall continue to be the primary general law 

enforcement agency of the country pursuant to republic Act No. 6975, as amended. 

Accordingly, close coordination and cooperation shall be undertaken by the Chief of the 

agencies, to insure synergy in the overall anti-crime campaign. Vertical and lateral coordination 

among operating units, consistent with the security need to prevent compromise in police 

operations, is hereby enjoined. 

SECTION 11. Repealing Clause. Any provision of Executive Order No. 8 issued on 

July 22, 1998, Executive Order No. 61 issued on January 15, 1999 and Executive Order No. 

62 issued on January 15, 1999 inconsistent with the provisions of this Executive Order are 

hereby repealed or modified accordingly. 

SECTION 12. Effectivity. This Executive order shall take effect immediately. 






óo0oó 


Integrating the Personnel, Programs and Resources 

of the National Stud Farm with Other Units/Agencies 

of the Department of Agriculture

2016 


WHEREAS, it is Governmentís policy to streamline its bureaucracy to attain higher 

efficiency, economy and effectiveness in its operations; 

WHEREAS, the Department of Agriculture pursues this policy and is continuously 

reviewing its structure and operations to more effectively meet this objective; 

WHEREAS, within the Department of Agriculture, there are units and agencies, 

personnel programs and resources of which could be integrated to attain higher levels of 

productivity; 

WHEREAS, the National Stud Farm, the Bureau of Animal Industry and the Bureau of 

Agriculture and Fishery Standards are agencies with complementary and crucial programs 

and concerns and which could be integrated consistent with the above goals. 

WHEREAS, it is imperative that even with integration, the regulatory and other functions 

of the National Stud Farm must be discharged; 

WHEREAS, there are humanitarian consideration in the implementation of the 

integration. 



SECTION 1. The personnel programs, assets and resources of the National Stud 

Farm hereby transferred to the Bureau of Animal Industry and the Bureau of Agriculture and 

Fishery Standards and other agencies of the Department. 

SEC. 2. The Secretary of Agriculture is hereby authorized to determine who, and what 

programs, assets and resources, will be transferred to which agency. 

SEC. 3. The Secretary of Agriculture shall undertake the necessary steps to effect the 

integration and ensure the continuity of relevant programs and functions of the NSF and the 

protection of the interests of the personnel who will be transferred. 

SEC. 4. The Department of Budget and Management is instructed to provide funds 

for the salaries and related benefits of the personnel of the NSF until the end of the year 

2000. The budget required for personnel services and operating expenses for the NSF 

programs in subsequent years shall be integrated with either the BAI, the BAFPS or other 

agencies of the Department. 

SE. 5. All laws, executive orders, rules and regulations or parts thereof inconsistent 

with this Executive Order are hereby repealed, amended or modified accordingly. 



BY THE PRESIDENT:





óo0oó 


Regulating the Manufacture, Sale, Distribution and 

Use of PNP Uniforms, Insignias and other Accoutrements 

WHEREAS, the PNP uniforms, insignias and other accoutrements are symbolic of a 

discipline and an image which portray the character and being of every policeman, most 

representative of a professional Philippine National Police; 

WHEREAS, the use or wearing of PNP uniforms, insignias and other accoutrements 

projects at the very first instance an identity that establishes a distinctive recognition exclusive 

to every policeman and the Phlippine National Police; 

WHEREAS, the PNP uniforms, insignias and other accoutrements are easily available 

and/or procured from any manufacturer, seller, distributor, or supplier by any person, including 

unscrupulous and lawless individuals who make a mockery of their use for personal gain, 

unlawful purposes and/or other designs to degrade the policeman and the Philippine National 

Police; 

WHEREAS, while Article 179, ìillegal use of uniforms or insigniaî of Republic Act 

3815, otherwise known as the Revised Penal Code of the Philippines penalizes any person 

who shall publicly and improperly make use of insignia, uniforms or dress pertaining to an 

office not held by such person or to a class of persons of which he is not a member; it does 

not include the illegal manufacture, sale and distribution of the same; 

WHEREAS, while Republic Act No. 493 was also enacted prohibiting , among others, 

the wearing, use, manufacture and sale of insignias, decorations and medals, badges, patches 

and identification cards prescribed for the ìArmed Forcesî or ìConstabularyî, it does not 

apply to the Philippine National Police; 

WHEREAS, there is no law that governs and regulates the manufacture, sale, distribution 

and use of uniforms, insignias and other accoutrements of the Philippine National Police; 

WHEREAS, to ensure that PNP uniforms, insignias and other accoutrements are 

manufactured, sold, distributed or supplied only by authorized manufacturer, distributor, 

supplier and/or seller and used exclusively by uniformed personnel of the PNP, there is a 

need for regulation; 



SECTION 1. The unauthorized, sale and distribution of PNP uniforms, insignias and 

other accoutrements is hereby prohibited. Any violation of this rule shall, after due notice

2018 


and hearing, result in the immediate closure of the establishment, plant and/or office where 

the uniforms and other items are manufactured, stored, sold and/or distributed, the cancellation 

of its business license or permit to be used in the manufacture, sale and/or distribution and 

the imposition of reasonable administrative fines, without prejudice to the filing of 

administrative, civil and/or criminal actions. 

SEC. 2. The use of PNP uniforms, insignias and other accoutrements by any person 

who is not a member of the uniformed Philippine National Police personnel is also prohibited. 

Any violation of this rule shall, after due notice and hearing, be penalized by public censure 

which shall be published at least once in a newspaper of general circulation without prejudice 

to the filing of administrative, civil and/or criminal actions. 

SEC. 3 The Philippine National Police shall adopt its own uniforms, insignias and other 

accoutrements for the exclusive use of its uniformed personnel.The uniforms and other 

items shall be subject to inspection and acceptance procedures of the Philippine National 

Police with each design and specification approved by the PNP Uniform and Equipment 

Standardization Board (UESB). As such, only those accredited by the PNP and the National 

Historical Institute are authorized to manufacture, sell or distribute the same. 

SEC. 4. The Chief, Philippine National Police shall issue rules and regulations for the 

effective implementation of this Executive Order. 

SEC. 5. All orders, issuances, rules and regulations or parts thereof inconsistent with 

this Executive Order are hereby repealed or modified accordingly. 






óo0oó 


Amending Executive Order No. 444, s. 1997, Providing for the 

Rationalization of Duty Free Store/Outlets and Their Operations 

in the Philippines Pursuant to Executive Order Nos. 250, 

250-A, s. 1995, 419, s. 1997 and 140, s. 1993, and for Other Purposes 

WHEREAS, the operations of duty free shops have been expanded under existing 

administrative issuances; 

WHEREAS, the operation of duty free shops in the Subic Special Economic and Freeport 

Zone and the Clark Special Economic Zone is authorized under existing laws to provide for 

the consumption/needs of their locators, which generate export receipts for government;


WHEREAS, the current operations of duty free shops, particularly in terms of number 

of stores or outlets and range or scope of goods sold, have resulted in weakening 

governmentís efforts to protect local enterprises and products and have created opportunities 

to commit frauds upon customs; 

WHEREAS, there is an imperative need to provide for an improved system of duty free 

shop operations consistent with the conventional concept and purpose of duty free shops as 

observed in most countries. 


the Philippines, by virtue of the powers vested in me by law, do hereby order the following: 

SECTION. 1. Prohibited Duty Free Shop Operations. The operation of duty free shops 

located outside the countryís international ports of entry and the fenced-in areas of the Clark 

Special Economic Zone (Clark) and the Subic Special Economic and Freeport Zone (Subic) 

shall be prohibited. The establishment of new duty free shops/outlets and the expansion of 

existing ones shall likewise be prohibited even within the international ports of entry and the 

fenced-in areas of Subic and Clark. 

SEC. 2. Termination of Special Shopping Privileges. All special shopping privileges as 

granted under Section 3 of Executive Order No. 444, s. 1997, are hereby deemed terminated. 

The grant of duty free shopping privileges shall be restricted to qualified individuals as provided 

by law. 

SEC. 3. Allowable Items in Duty Free Stores/Outlets. Only items that are traditionally 

sold in duty free shops in ports of entry abroad, mainly portable consumables and light 

durables, shall be held for sale in existing duty free stores. A balikbayan shall be allowed to 

buy one item of every product category of non-consumables whose selling price exceeds 

US$200 in accordance with Republic Act No. 6768. 

SEC. 4. Implementing Rules and Regulations. The implementing rules and regulations 

to effectively carry out the provisions of this Order shall be promulgated by the Department 

of Trade and Industry two (2) weeks upon effectivity of this Order. The rules shall include, 

among others, the definition of portable consumables and light durables and the provision 

for a transition period, not to exceed two (2) months from date hereof, for the implementation 

of this order. 

SEC. 5. Administrative Sanctions. Violation of any of the provisions of this Order shall 

be subject to administrative sanction of suspension or cancellation of the operation of the 

concerned duty free shop. 

SEC. 6. Separability Clause. The provisions of this Executive Order are hereby declared 

separable. In the event that provisions of this Executive Order are hereby declared illegal or 

unconstitutional, the other provisions not so declared shall remain in full force and effect. 

SEC. 7. Amending Clause. All provisions of executive orders, letters of instruction, 

issuances, memoranda and proclamations not consistent with the provisions of this Executive 

Order are hereby repealed or modified accordingly.

2020 








óo0oó 


Directing the Department of Budget and Management to 

Deduct from the Respective CY 2000 IRA Shares of All 

Barangays the Amount of Four Thousand Pesos (P4,000.00) 

Per Barangay as Amnesty Settlement of Unpaid Membership 

Dues to the National Liga ng mga Barangay and to Directly 

Remit the Collected Amount in Lump Sum to the National Liga 

WHEREAS, the Liga ng mga Barangay was organized pursuant to Section 491 of 

Republic Act No. 7160, otherwise known as the Local Government Code of 1991; 

WHEREAS, under the Constitution and By-Laws of the National Liga ng mga Barangay 

which is made suppletory to the pertinent chapter of the Local Government Code, all 

barangays are required to pay membership dues to the National Liga ng mga Barangay; 

WHEREAS, it has been reported that there are barangays with unpaid membership 

contributions to the Liga; 

WHEREAS, there is an urgent need to assist the National Liga ng mga Barangay in 

facilitating the collection of unpaid membership fees of all member-barangays. 


the Philippines, by virtue of the powers vested in me by law and the Constitution, do hereby 

order the following: 

SECTION 1. The Department of Budget and Management (DBM) shall deduct from 

the respective CY 2000 IRA shares of all barangays the amount of Four Thousand Pesos 

(P4,000.00) per barangay as amnesty settlement in payment of current and past due 

membership fees to the National Liga ng mga Barangay and to remit the collected amount in 

lump sum to the National Liga. 

SEC. 2. The amounts thus deducted shall be remitted by the DBM to the National Liga 

in two (2) tranches, to wit: the 1 st Tranche in the amount equivalent to the lump sum of Two 

Thousand Pesos (P2,000.00) per barangay to be deducted from the 3 rd Quarter DBM release 

of the corresponding computed IRA shares of the respective member barangays, and the


2 nd Tranche in the amount equivalent to the lump sum total of Two Thousand Pesos 

(P2,000.00) per barangay to be deducted from the 4 th Quarter DBM release of the 

corresponding computed IRA shares of the respective member-barangays. The remittance 

of the 1 st and 2 nd Tranches shall be made within the 3 rd and 4 th quarters of CY 2000, 

respectively. 

SEC. 3. The disposition of the said funds by the National Liga ng mga Barangay shall 

be made in accordance with the pertinent provisions of its Constitution and By-Laws on the 

sharing scheme for collected membership dues, and subject to applicable accounting and 

auditing rules and regulations. 







óo0oó 


Providing for a National Policy on the Allocation 

and Use of Radio Frequencies 

WHEREAS, the radio frequency spectrum is a scarce public resource, and there is a 

need for a transparent, fair, and economically efficient procedure that shall expedite its 

allocation to service providers who will use it efficiently and effectively to meet public demand 

for telecommunications services; 

WHEREAS, international 3rd generation (ì3Gî) standards technology is the family of 

compatible mobile wireless technologies that the International Telecommunication Union 

has approved for terrestrial radio interface, and that will be adopted globally for full systems 

harmonization, resulting in considerable interest and demand for 3G spectrum frequencies; 

WHEREAS, not all 2nd Generation (ì2Gî) frequencies allocated by the National Radio 

Frequency Allocation Table (ìNFRATî) for mobile telecomunications systems have been 

allocated to current 2G mobile networks; 

WHEREAS, under Executive Order No. 546 dated July 23, 1979, the National 

Telecommunications Commission (ìNTCî) is vested with the functions to ìgrant permits for 

the use of radio frequencies for wireless telephone and telegraph systems and radio 

communication systemsî, and ìsub-allocate series of frequencies of bands allocated by the 

International Telecommunications Union to the specific servicesî;

2022 


WHEREAS, under NTC Memorandum Circular No. 3-3-96 (ìMC 3-3-96î), the allocation 

of radio frequencies is subject to (a) the periodic review of the NFRAT, (b) consultation with 

the industry and/or affected parties, (c) consistency with the international table of radio 

Frequency Allocation, and with national priorities, (d) customer demand and radio frequency 

planning studies, and (e) allocations reserved for customer access services, broadcast 

services, maritime, aeronautical and other safety services, military and government radio 

stations; 

WHEREAS, spectrum auctions in other countries show that well-designed auctions 

offer a more transparent, fair, and economically efficient option for allocating select 

frequencies; 


the Philippines, by virtue of the powers vested in me by law, hereby direct and order, as 

follows: 

SECTION 1. Institutionalizing Radio Frequency Auctions. The radio frequency spectrum, 

including 3G radio frequency spectrum, and other parts of the radio frequency spectrum not 

yet allocated at the time of this orderís effectivity, shall be allocated through auction, subject 

to the terms and conditions as approved by the Joint Committee formed herewith. 

SECTION 2. Formation of a Joint Committee. A three-member committee is hereby 

created to promulgate guidelines, as well as manage and supervise the allocation and auction 

of radio frequency spectra. The Committee shall be composed of the Commissioner of the 

National Telecommunications Commission (NTC), and shall have one member from the 

Department of Transportation and Communication (DOTC), and one from the Economic 

Coordinating Council (ECC). 

Decisions of the Joint Committee shall be determined by a majority vote of its members. 

SECTION 3. Powers and Functions of the Committee. For each set of spectrum auctions, 

the Joint Committee shall have the following functions and responsibilities: 

a. Within sixty (60) days from the effectivity of this order, promulgate bidding guidelines that 

will cover, among others, the following concerns: 

i) designate the actual frequencies of the license to be auctioned off 

ii) prescribe the terms and conditions of each license, including the obligation to provide 

local exchange carrier service or its equivalent, as well as the number of years for which 

the license is granted 

iii) set the indicative or floor price for each license 

iv) instruct on the use or transfer of the auction proceeds 

b. formulate the rules and regulations governing the allocation of new radio frequencies 

c. manage and supervise the frequency auction process to be conducted


d. contract the services of financial and/or technical advisers of proven expertise in the 

allocation of radio spectrum frequencies 

e. if necessary, create a working committee and/or secretariat that will facilitate the tasks of 

the Committee. 

SECTION 4. Implementation. The NTC, the DOTC the ECC and other appropriate 

government instrumentalities are hereby directed to take all the necessary steps to implement 

the purposes and objectives of this Executive Order. 

SECTION 5. Repealing Clause. All executive orders, administrative orders, and other 

executive issuances, including Memorandum Circulars from the National 

Telecommunications Commission, inconsistent with this order are hereby repealed, 

modified, or amended accordingly. 

SECTION 6. Effectivity Clause. This order shall take effect immediately. 






óo0oó 


Prescribing Guidelines, Rules and Regulations for the 

Distribution of Proceeds of Leases, Joint Ventures and 

Transactions Other Than Sale Involving Portions of 

Metro Manila Military Camps Under Republic Act No. 7227, 

As Amended by Republic Act No. 7917 

WHEREAS, Section 8 of Republic Act No. 7227, as amended by Republic Act No. 

7917, authorizes the President to sell certain Metro Manila camps, including Fort Bonifacio 

and Villamor Air Base, in whole or in part, in accordance with the provisions of existing laws 

and regulations governing sales of government properties; 

WHEREAS, Republic Act No. 7227, as amended by Republic Act No. 7917, 

contemplates a situation where the lands that were transferred to the Bases Conversion 

Development Authority (BCDA) for the purpose of disposing the same could be sold at rates 

beneficial to the government; 

WHEREAS, the present depressed state of the countryís real estate market, influenced 

by both global and domestic economic factors, renders the outright sale of the military camps 

disadvantageous to the government;

2024 


WHEREAS, BCDA, through the exercise of sound business judgment pursuant to its 

mandate, has deemed it more beneficial to the interests of the government to enter into 

commercial transactions other than sale involving certain portions of Metro Manila military 

camps instead of selling them; 

WHEREAS, BCDA is under the direct control and supervision of the Office of the 

President for purposes of policy direction and coordination; 



SECTION 1. Distribution of Proceeds of Leases, Joint Ventures and Transactions 

Other Than Sale - Proceeds of leases, joint ventures and all transactions other than sale 

entered into involving portions of Metro Manila military camps shall be distributed equally 

between BCDA and the Armed Forces of the Philippines (AFP). 

SEC. 2. Coverage - This Executive Order shall cover the proceeds of all transactions 

mentioned in the preceding Section, including those previously executed. 

SEC. 3 Basis of Sharing - The distribution shall be based on the proceeds of the 

transaction, net of the expenses directly incurred for said transaction. ìDirect Expensesî 

refers to those expenses directly attributable to the transaction that would not have been 

incurred by BCDA and AFP if the decision to enter into such transaction were not made. 

Such expenses shall be jointly determined by representatives of BCDA and the Department 

of National Defense (DND). 

SEC. 4. Utilization of Proceeds - The share of the BCDA from the proceeds of the 

transactions contemplated in Section 1 shall be considered its corporate income the utilization 

of which shall be determined by the Board of Directors of BCDA. For its part, the share of the 

AFP shall be utilized for the AFP Modernization Program under Republic Act No. 7898: 

Provided, That proceeds received after the termination of the AFP Modernization Program 

may still be used to satisfy multi-year obligations incurred pursuant to such Program : Provided, 

further, That thereafter, AFPís share may be utilized for other modernization projects as may 

be determined by the AFP and approved by the Secretary of National Defense. 

SEC. 5. Remittance of AFPís Share - Within two (2) weeks after receipt of actual payment 

from the other transacting party, BCDA shall remit AFPís share directly to the Armed Forces 

of the Philippines Modernization Act Trust Fund (Fund 172) in the Bureau of the Treasury. 

SEC. 6. Effectivity - This Executive Order takes effect immediately. 





óo0oó




Modifying the Rates of Import Duties on 

Imported Crude Oil and Selected Refined 

Petroleum Products Under Section 104 

of the Tariff and Customs Code of 1978 

(Presidential Decree No. 1464, As Amended) 

WHEREAS, Section 6 of RA 8479 otherwise known as the ìDownstream Oil Industry 

Deregulation Act of 1998î provides that a single and uniform tariff duty is imposed and 

collected both on imported crude oil and imported refined petroleum products at the rate of 

three percent (3%); 

WHEREAS, Section 104 and 401 of the Tariff and Customs Code of the Philippines 

(PD) No. 1464), as amended, empower the President upon the recommendation of the 

National Economic and Development Authority to increase, reduce, or remove existing 

protective rates of import duty, as well as to modify the form of duty; 

WHEREAS, prices of imported crude oil and imported refined petroleum products in 

the international markets indicate upward trend; 

WHEREAS, it is necessary to soften the impact of such increase on prices of basic 

commodities and services; 



SECTION 1. The rate of import duty for imported crude oil and selected refined 

petroleum products as specifically listed in Annex ìAî* hereof, as classified under Section 

104 of the Tariff and Customs Code of 1978, as last amended by EO 461, dated 31 December 

1997, shall be reduced from three percent (3%) to zero percent (0%). 

SEC. 2. The nomenclature and the rates of import duty on tariff headings not enumerated 

and listed in Annex ìAî hereof shall remain in force and effect. 

SEC. 3 The zero import duty rates shall be in effect for three (3) months and may be 

extended by the President upon recommendation of the National Economic and Development 

Authority. 

SEC. 4. Upon the effectivity of this Executive Order, the articles specifically listed in 

the aforesaid Annex ìAî which are entered or withdrawn from warehouses in the Philippines 

for consumption shall be levied the rates of duty therein prescribed. 

SEC. 5. All Presidential issuances, administrative rules and regulations, or parts thereof, 

which are inconsistent with this Executive Order are hereby repealed or modified accordingly. 

SEC. 6. This Executive Order shall take effect immediately.

2026 







óo0oó 


Transferring the National Food Authority from the 

Office of the President to the Department of Agriculture 

WHEREAS, the Department of Agriculture (DA) is tasked to carry out the centerpiece 

program of food security, which includes ensuring adequacy of food supply in the country. 

WHEREAS, basic food sufficiency requires a comprehensive approach involving all 

sectors and aspects of the agriculture and fisheries sector; 

WHEREAS, the work of the National Food Authority (NFA), as the agency tasked to 

assure the adequacy of food supply, properly and legally falls under the responsibility of the 

DA to bring about food security; 

WHEREAS, to ensure that policies regarding adequate food supply closely coordinate 

with policies on food security, the NFA should be immediately transferred back to the DA; 

WHEREAS, Section 31, Chapter 10, Title III, Book III of Executive Order No. 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; 



follows: 

SECTION 1. Dispositive Action. Executive Order No. 2 and any other executive 

issuances inconsistent herewith are hereby revoked, and the National Food Authority, together 

with its assets, equipment, properties and personnel are hereby transferred back to the 

Department of Agriculture. 

SEC. 2. Authority of the Secretary of Agriculture. The Secretary of Agriculture is hereby 

designated as Chairman of the NFA, and is hereby authorized to reorganize, streamline, 

merge, deactivate or dispose assets of the NFA subject to existing laws. 


Adopted: 09 Nov. 2000






óo0oó 


Transferring the Attachment of the Guarantee Fund for Small 

and Medium Enterprises to the Department of Agriculture 

WHEREAS, Executive Order No. 233, s. 2000 effected the transfer of the attachment 

of the Livelihood Corporation (LIVECOR) and the Human Settlements Development 

Corporation (HSDC) from the Office of the Executive Secretary to the Department of 

Agriculture; 

WHEREAS, under the same Executive Order, the Guarantee Fund for Small and 

Medium Enterprises (GFSME), a program component of LIVECOR, was directed to be 

attached to the Department of Trade and Industry; 

WHEREAS, Executive Order No. 256 provides interim guidelines for the operation of 

the GFSME under the new set-up; 

WHEREAS, Memorandum Circular No. 001-4, s. 1984 established the GFSME as a 

Trust Account of LIVECOR and expressly authorizes LIVECOR to place the GFSME under 

its direct control and management, and the earnings of GFSME to be utilized for such purposes 

as the Board of Trustees of LIVECOR may determine; 

WHEREAS, as provided in Letter of Instruction No. 114, LIVECOR was empowered to 

manage the GFSME, as a program component that shall support LIVECORís mandate of 

developing and generating livelihood opportunities through the establishment of viable agroprocessing 

centers; 

WHEREAS, GFSME remits thirty percent (30%) of its income to LIVECOR, making 

GFSME one of LIVECORís major sources of income, as LIVECOR does not receive any 

budgetary allocation from the National Treasury; 

WHEREAS, the GFSME is a vital component of LIVECORís integrated programs; 

WHEREAS, the separation of GFSME from LIVECOR will result to legal and 

administrative complications adverse to public interest; 

WHEREAS, under Section 31, Chapter 10, Book III of the Administrative Code of 1987, 

the President of the Philippines has continuing authority to reorganize the administrative 

structure of the Office of the President, and may transfer any agency under the Office of the 

President to any other department or agency;

2028 



the Philippines, by virtue of the powers vested in me by law, do hereby order as follows: 

SECTION 1. The Guarantee Fund for Small and Medium Enterprises (GFSME) is 

hereby ordered transferred for attachment from the Department of Trade and Industry to the 

management of LIVECOR, amending for the purpose Executive Order No. 223, s. 2000. 

SEC. 2. Executive Order No. 256, s. 2000, and rules and regulations or parts thereof 

inconsistent with this Executive Order are hereby repealed, amended or modified accordingly. 

SEC. 3 This Executive Order shall take effect immediately. 






óo0oó 


Prescribing a Code of Conduct for Relatives 

and Close Personal Relations of the President, 

Vice President and Members of the Cabinet 

WHEREAS, the President, Vice President and Members of the Cabinet are duty bound 

to follow the highest standard of ethics in public service. 

WHEREAS, the duty of the President, Vice President and Members of the Cabinet 

extends also to those related to them by consanguinity, affinity, intimacy or close personal 

relations, who must conduct themselves in a manner which would not cast doubt on the 

integrity and impartiability of the President, Vice President and Members of the Cabinet. 

WHEREAS, there is a need to remove whatever public perception that relatives and 

close personal relations of the President, Vice President and Members of the Cabinet are or 

may be taking undue advantage of such relationship to obtain unwarranted advantage and 

benefits from the government. 

WHEREAS, even without deliberately capitalizing, exploiting or taking advantage of 

their family or close personal relations with the President, Vice President and Members of 

the Cabinet in engaging in certain transactions, the proximity of relatives and close personal 

relations to the President, Vice President and Members of the Cabinet may create a wrong 

perception that such relations are or have been abused by them.


WHEREAS, there is a need to lay down a Code of Conduct for relatives and close 

personal relations of the President, Vice President and Members of the Cabinet to ensure 

that existing laws in place cannot and will not be circumvented and that undue influence will 

not be exerted nor undue advantage taken by these people as a result of their closeness 

with the President, Vice President and Members of the Cabinet. 



follows: 

SECTION 1. Definition of Terms. As used in this Executive Order, the term: 

(a) ìRelativeî refers to any and all persons related to the President, Vice President and 

Members of the Cabinet within the fourth civil degree of consanguinity or affinity, and shall 

include any offspring of the President , Vice President and Members of the Cabinet and the 

parent of such offspring, as well as those related to the latter within the fourth civil degree of 

consanguinity or affinity. 

(b) ìClose Personal Relationî shall mean any person enjoying close association or 

intimacy with the President, Vice President and Members of the Cabinet, which insures easy 

access to his person such as political contributors, personal friends of long standing, and 

former schoolmates of the President, Vice President and Members of the Cabinet. 

(c) ìGiftî refers to a thing or a right to dispose of gratuitously, or any act of liberality, in 

favor of another who accepts it, and shall include a simulated sale or an ostensibly onerous 

disposition thereof. It shall not include an unsolicited gift of nominal or insignificant value not 

given in anticipation of, or in exchange for, a favor from the President, Vice President, Members 

of the Cabinet or any other public official or employee. 

(d) ìGovernmentî includes the national government, the local governments, 

government-owned and government-controlled corporations, and all other instrumentalities 

or agencies of the Republic of the Philippines and their branches. 

(e) ìReceiving any giftî includes the act of accepting directly or indirectly, a gift from a 

person other than a member of his family or relatives as defined in this Act, even on the 

occasion of a family celebration or national festivity like Christmas, if the value of the gift is 

neither nominal nor significant, or the gift is given in anticipation of, or in exchange for, a 

favor. 

(f) ìLoanî covers both simple loan and commodatum as well as guarantees, financing 

arrangements or accommodations intended to ensure its approval. 

(g) ìPersonî includes natural and juridical persons unless the context indicates otherwise. 

(h) ìPublic Officialî includes elective and appointive officials and employees, permanent 

or temporary, whether in the career or non-career service, including military and police 

personnel, whether or not they receive compensation, regardless of amount. 

SECTION 2. Prohibited Acts and Transactions. In addition to acts and omissions of 

presidential Relatives provided in the Constitution and existing laws, the following shall 

constitute prohibited acts and transactions by a Relative or a Close Personal Relation:

2030 


(a) Solicitation and acceptance, directly or indirectly, of any funds, gift, gratuity, favor, 

entertainment, loan or anything of monetary value for any purpose from any person or 

corporation; 

(b) Persuading, inducing or influencing another public official to perform an act 

constituting a violation of rules and regulations duly promulgated by competent authority or 

an offense in connection with the official duties of the latter; 

(c) Directly or indirectly engaging in transactions with Government, particularly 

government financial institutions (GFIs),including securing any loan or accomodation from 

such GFIs; 

(d) Exerting undue influence, directly or indirectly, on the outcome of public biddings 

for government contracts; 

(e) Directly or indirectly having financial or pecuniary interest in any business, contract 

or transaction with the Government. 

(f) Using the name of the President, Vice President or Members of the Cabinet, directly 

or through another person not related to the President, Vice President and Members of the 

Cabinet, in order to obtain any contract, favor or other benefit from the government. 

SECTION 3. Simple Living. Relatives and Close Personal Relations shall lead modest 

lives appropriate to their positions and income. They shall not indulge in extravagant and 

ostentatious display of wealth in any form. 

SECTION 4. Prohibition on Government Financial Institutions. GFIs are prohibited 

from increasing its equity or investing its funds for purposes of conferring a seat as director 

to a relative or Close Personal Relation by means of increasing capital or through any other 

means. 

SECTION 5. Lawful Exercise of Profession. Nothing in this Executive Order shall 

cover lawful acts of persons considered as a Relative or Close Personal Relation who have 

been engaged in the traditional, established, and lawful exercise of their profession, business 

or trade. 

SECTION 6. Penalties for Violations. In addition to the criminal liabilities provided for 

by existing laws, should any act defined herein fall within the definition of such laws, all 

agreements, contracts, and any other transaction entered into with the Government in violation 

of any prohibition herein shall be deemed void and of no effect. Any government official or 

employee who shall tolerate or conspire with any Relative or Close Personal Relation in 

violation of this Executive Order shall be subject to suspension or removal from office as 

may be determined by the President and following an investigation of such violation. 

SECTION 7. Effectivity. This Order shall take effect immediately. 


BY THE PRESIDENT:





óo0oó 


Modifying the Rates of Duty on Certain Imported Articles 

as Provided Under the Tariff and Customs Code of 1978, 

As Amended, In Order to Implement the Preferential Tariff 

Rates on Certain Products Under the ASEAN 

Industrial Cooperation (AICO) Scheme 

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the 

ASEAN Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996; 

WHEREAS, the Philippines is a participating country in the approved AICO 

Arrangements of Matsushita Electric Philippines Corporation (MEPCO) along with Indonesia, 

Malaysia, and Thailand; in the approved AICO Arrangement of Toyota Motor Philippines 

Corporation along with Indonesia, Malaysia and Thailand; and in the approved AICO 

Arrangement of Mitsubishi Motors Philippines Corporation (MMPC) along with Thailand; 

WHEREAS, under the MEPCO AICO Arrangement, the Philippines (Matsushita Electric 

Philippines Corporation) will import from Indonesia (PT National Gobel), Malaysia (Matsushita 

Electric Co., (M) Bhd.) and Thailand (Matsushita Seiko (Thailand) Co., Ltd) electric fans and 

certain parts/components for electric fans. In exchange Indonesia, Malaysia, and Thailand 

will import from the Philippines electric fans and complementary components/parts for the 

electric fans; 

WHEREAS, under the Toyota AICO Arrangement, the Philippines (Toyota Motor 

Philippines Corporation) will import from Indonesia (PT Toyota Astra Motor), Malaysia 

(Assembly Services Sdn Bhd), and Thailand (Toyota Motor Thailand Co. Ltd) certain original 

equipment manufacture (OEM) automotive parts/components for Corolla passenger car (HS 

8703.90 10). In exchange Indonesia, Malaysia, and Thailand will import from the Philippines 

electric fans and complementary components/parts for the electric fans; 

WHEREAS, under the MMPC AICO Arrangement, the Philippines (Mitsubishi Motors 

Philippines Corporation and Asian Transmission Corporation) will import from Thailand (MMC 

Sittipol Co., Ltd) certain original equipment manufacture (OEM) automotive parts/components 

for MG Lancer (HS 8703.90 10) and L200 (HS 8704.90 10). In exchange Thailand will import 

from the Philippines complementary part/components for the OEM of L200; 

WHEREAS, AICO Certificate of Eligibility Nos: Matsushita/1999/1 and amended 

Matsushita/1999/1 were issued on 20 September 1999 and on 17 March 2000, respectively, 

in favor of the participating companies in the MEPCO AICO Arrangement; AICO Certificate 

of Eligibility Nos: Toyota/2000/13, Toyota/2000/12 and Toyota/2000/16 were issued on 03 

and 31 March 2000 and 20 April 2000, respectively, in favor of the participating companies

2032 


in the Toyota AICO Arrangement; and AICO Certificate of Eligibility No: Mitsubishi/2000/1 

was issued on 31 March 2000, in favor of the participating companies in the Mitsubishi AICO 

Arrangement; 

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO 

Scheme, participating companies in the approved MEPCO, Toyota, and MMPC AICO 

Arrangements shall qualify for 0-5% preferential tariff rates to be extended by Indonesia, 

Malaysia, Thailand and the Philippines for MEPCO and Toyota; and by Thailand and the 

Philippines for MMPC as participating countries, effective within 45 days from the date of 

issuance of the Certificate of Eligibility Nos: Matsushita/1999/1, Toyota/2000/13, Toyota/ 

2000/12 and Toyota/2000/16, and Mitsubishi/2000/1 by the ASEAN Secretariat. 


pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 

1978, as amended, do hereby order: 

SECTION 1. The articles specifically listed in Annex ìAî* hereof, as classified under 

Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the 

AICO rates of 3% and 5% as specified in Column 4 thereof. 

SEC. 2. The AICO rates provided in Annex ìAî shall be accorded to the AICO entities 

in Indonesia (PT National Gobel), in Malaysia (Matsushita Electric Co., (M) Bhd.), and in 

Thailand (Matsushita Seiko (Thailand) Co. Ltd) effective 17 March 2000. 

SEC. 3. The articles specifically listed in Annex ìBî* hereof, as classsified under Section 

104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate 

of 5% on parts/components of Corolla passenger car (HS 8703.90 10) as specified in Column 

6 thereof. 

SEC. 4. The AICO rate provided in Annex ìBî shall be accorded to the AICO entity in 

Indonesia (PT Toyota Astra Motor) effective 20 April 2000, AICO entity in Malaysia (Assembly 

Services Sdn Bhd) effective 03 March 2000, AICO entity in Thailand (Toyota Motor Thailand 

Co. Ltd) effective 31 March 2000. 

SEC. 5. The articles specifically listed in Annex ìCî* hereof, as classified under Section 

104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rates 

of 5% on parts/components of MG Lancer passenger car (HS 8703.90 10) and 3% parts/ 

components of L200 (HS 8704.90 10) as specified in Column 6 thereof. 

SEC. 6. The AICO rates provided in Annex ìCî shall be accorded to the AICO entity in 

Thailand (MMC Sittipol Co., Ltd.) effective 31 March 2000. 

SEC. 7. In the event that any subsequent changes are made in the basic (MFN) 

Philippine rate of duty on any of the articles listed in Annexes ìAî, ìBî and ìCî to a rate lower 

than the AICO rate prescribed in Column 4 of Annex ìAî and Column 6 of Annexes ìBî and 

ìCî such article shall automatically be accorded the corresponding reduced rate of duty. 

Effective 1 January 2003, the final CEPT rate on the articles shall apply. 

* All Annexes available at Office of the National Administrative Register, U.P. Law Complex, 

Diliman, Quezon City.


SEC. 8. Upon the effectivity of this Executive Order, the articles specifically listed in the 

aforesaid Annexes ìAî, ìBî and ìCî which are entered or withdrawn from warehouses in the 

Philippines for consumption shall pay the applicable AICO preferential tariff rates specified 

under Sections 1, 3 and 5 hereof, subject to qualification under the Rules of Origin for the 

CEPT, as evidenced by the Certificate of Origin - Form D 

SEC. 9. Any revision/s to the part numbers appearing in Column 4 of Annexes ìBî and 

ìCî shall be communicated immediately to the Bureau of Customs by the Board of Investments 

within five (5) days after receipt of the official copy of the revised parts from the ASEAN 

Secretariat. 


IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the 

Republic of the Philippines to be affixed. 






óo0oó 


Directing the Transfer of Certain Government Properties 

Between and Among the Department of Finance and the 

Philippine National Police and for Other Purposes 

WHEREAS, as a result of the continuing reorganization of government, there is a need 

to rationalize the use of certain government properties to maximize savings; 

WHEREAS, modern policing requires the strategic location of police headquarters in 

the center of the city or metropolis to better serve the citizenry; 

WHEREAS, the Main Building of the Economic Intelligence and Investigation Bureau 

(EIIB) which will be vacated soon as a result of the EIIBís winding-up, is located at the 

National Government Center, Diliman, Quezon City, as such, is suitable to serve as 

Headquarters of the Philippine National Police-National Capital Region Police Office (PNP- 

NCRPO); likewise, some regional offices of the Bureau of Local Government Finance (BLGF) 

are located in police and military camps throughout the country; 

WHEREAS, it is advisable that the new Central Management Information Office (CMIO) 

of the Department of Finance (DOF) should hold office near the DOF Building in Manila;

2034 


WHEREAS, there is a strong need to rationalize and coordinate the turnover of the 

control, management, administration and supervision of the aforesaid properties to the 

agencies concerned; 



SECTION 1. The EIIB Building and land located at the National Government Center, 

Quezon City, is hereby transferred to the PNP-NCRPO, which shall assume all outstanding 

obligations for the purchase of the lot from the National Housing Authority, as well as other 

liabilities for improvements introduced thereon. The amount required for this purpose shall 

be incorporated in the annual budgetary appropriation of the PNP. 

SEC. 2. The two (2) office buildings currently being used by the Regional Mobile Group 

of the PNP-NCRPO and the warehouse of the PNP Logistic Support Services, all located at 

Camp Bagong Diwa, Taguig, Metro Manila, are hereby assigned and transferred for a period 

of ten (10) years to the DOF for its office use. 

SEC. 3. The following properties formerly used as EIIB Regional Offices shall remain 

in the possession of the DOF for a period of ten (10) years for the benefit of its attached 

bureaus and agencies, to wit: 

a. Land and building formerly occupied by EIIB Regional Office No. I, located at Camp 

Diego Silang, San Fernando, La Union; 

b. Land and building formerly occupied by EIIB CAR Regional Office, located at Camp 

Bado Dangwa, La Trinidad, Benguet; 

c. Land and building formerly occupied by EIIB Regional Office No. V, located at Camp 

Gen, Simeon, Ola, Legaspi City; 

d. Land and building formerly occupied by EIIB Regional Office No. VI, located at Camp 

Delgado, Iloilo City; 

e. Land and building formerly occupied by EIIB Regional Office No. VII, located at Camp 

Sergio OsmeÒa, Cebu City; 

f. Land and building formerly occupied by EIIB Regional Office No. XI, located at Camp 

Domingo Leonor, Davao City; 

SEC. 4. The BLGF shall transfer title over the 6th Floor, BF Condominium Building, 

Intramuros, Manila, to the DOF for use of the CMIO. 

SEC. 5. The EIIB main building, including the equipment, furniture and fixtures, etc., 

found therein which the DOF and/or its attached bureau and agencies may no longer need 

for their operations, shall be turned over to PNP-NCRPO. 

SEC. 6. The amount of Ten Million Pesos (P10,000,000.00) is hereby authorized to be 

set aside from the Presidentís Contingent Fund to be used for the repair, rehabiliation,


improvement, maintenance and furnishings of the aforesaid properties. Subsequent 

appropriations shall be incorporated in the budgetary allocation of the DOF and the PNP. 

SEC. 7. The DOF and the PNP are hereby authorized to engage the services of 

private firms to undertake the work mentioned in the preceding section by public bidding, 

subject to the usual accounting and auditing rules and regulations. 

SEC. 8. The DOF and the PNP shall formulate the necessary guidelines and policies 

to implement this Order. 

SEC. 9. There is hereby created an Inter-Agency Committee to be chaired by the 

Executive Secretary with representatives from the DOF, Department of Budget and 

Management, Department of the Interior and Local Government and the PNP, as members, 

that will monitor and oversee the implementation of this Order. The Committee shall submit 

to the President a quarterly progress report on its activities. 

SEC. 10. All other orders, issuances or parts thereof inconsistent with this Executive 

Order are hereby repealed or modified accordingly. 

SEC. 11. This Executive Order takes effect immediately. 





OVERSEAS WORKERS WELFARE ADMINISTRATION 


Memorandum of Instruction No. 011, s. 2000 

Guidelines and Procedures for the Implementation 

of the Re-Entry Loan for Displaced Workers 

In the interest of the service and further to MOI No. 02, Series of 2000, the following 

guidelines and procedures are hereby prescribed for the implementation of the Re-Entry 

Loan for Displaced Workers 

Client Coverage 

The credit window is exclusively open to OFWs who have been displaced or had been 

caused to prematurely return home due to any of the following reasons:

2036 


1. Natural calamities such as earthquakes, tidal waves, volcanic eruptions, etc. in their 

countries of employment, 

2. Man-made calamities such as wars or political turmoil, unfavorable economic 

conditions or emergency situations in their countries of employment, 

3. Contract violations by agencies or employers and other employment-related factors, 

4. Serious illness of workers that would constrain them to voluntarily terminate their 

employment overseas or serious illnesses of beneficiaries who are totally dependent on the 

workers that would similarly result in the returning home of workers ahead of time, and 

5. Industry regulations or restrictions on trades or skills that would cause employment 

disruptions for the workers. 

In order to qualify for assistance, an OFW must not have returned to the country for a 

period of not more than three (3) years upon the filing of his/her application for loan under 

the Re-Entry Loan for Displaced Workers. 

Loan Description 

The Re-Entry Loan for Displaced Workers is a supervised credit window that is intended 

to create stopgap sources of livelihood for displaced workers or their beneficiaries. 

It is open to individuals, partnership projects of not more than five (5) members and 

group projects of six (6) members or more. 

The Re-Entry Loan for Displaced Workers has the following features: 

Loan Ceiling: P20,000.00 per qualified borrower 

Interest Rate: 4% per annum 

Loan Usage: Working capital and acquisition of assets for a livelihood project 

Collateral Coverage: Co-Maker or Guarantor System 

Payment Terms: 

a) Individual loans Maximum principal payment term of 18 months 

b) Group loans Maximum principal payment term of 60 months 

Criteria For Individual To Qualify As Co-Maker: 

1. He/she must not be a spouse of the applicant; 

2. He/she must be locally employed with a minimum monthly salary of P10,000.00 and 

3. He/she must be living in the community (town or city) where the project applicant resides. 

Criteria For Organization To Qualify As Co-Maker: 

1. The organization must have existed for at least three years prior to the group applicantís 

filing of loan application; 

2. Must be able to cover twice the loan amount with its cash reserves at the time of project 

evaluation (as reflected in its audited financial statements)


3. Must be holding office in the community (town or city) where the project applicant resides. 

Penalty Charges 

A penalty charge of 2% per month shall be imposed on the delayed amortization until 

payment is updated. 

Rebate 

As a standard lending practice in the LDPOO, the program grants rebates on the 

unearned interest to a loan proponent who makes a full settlement of his/her account prior to 

loan maturity. However, this does not apply to a proponent who makes a partial advanced 

payment on his/her loan. 

Loan Requirements 

1. Official document/s that would certify the applicantís status as a displaced worker (e.g. 

certification from the Labor Center/Welfare Officer/CECOR/Embassy, certification from foreign 

employer terminating the services of applicant, certification from host countryís health 

authorities/hospital/doctor on the workersí illness, certification from POEA/DOLE) 

2. Proof of OWWA Contribution 

3. Current Community Tax Certificate 

4. OFW Consent 

4.1 Marital Consent (for married borrowers) 

4.2 Authorization (for parent or sibling who is applying on behalf of OFW) 

5. Marriage Contract or proof of marriage 

6. Documents to establish borrowerís relationship with OFW (for legitimate beneficiaries 

borrowing in place of OFW) 

7. Business Plan 

8. Certificate of Indigency from the LGU Social Worker (for displaced workers who have 

returned to the country for more than one year at the time of application) 

9. 2 x 2 ID picture 

10. Sketch of residence and project site 

11. Promissory Note with Notarized Waiver for Salary Deduction (for Individual Co-Maker) 

12. ITR or Certificate of Employment with Annual Compensation of Co-Maker (for Individual 

Co-Maker) 

13. Board Resolution or General Assembly Resolution (for Organization/Cooperative/Association 

acting as Co-Maker)

2038 


14. Audited Financial Statement (for Organization/Cooperative/Association acting as Co- 

Maker) 

Additional requirements for Group Applicants: 

1. Certificate of registration with CDA for cooperative projects, Securities and Exchange 

Commission (SEC) registration for partnerships and corporations 

2. Articles of Cooperation and By-Laws for cooperatives, Articles of Incorporation for corporations 

and Partnership Agreement with Profit-Sharing Scheme for partnerships 

3. Board Resolution/Group Resolution specifying intent to undertake a group project using 

capital to be borrowed from the LDPO 

4. Certification of ROU (or partner agency in the case of groups that they referred regarding 

the cohesiveness of the group and their capability to undertake a group venture or project 

Partner Agencies 

Partner-agencies, specifically the Ecumenical Commission for Migrants and Itinerants 

(ECMI) of the Catholic Bishops Conference of the Philippines and the Self-Employment 

Assistance Unit (SEAU) of the Department of Social Welfare Development, may participate 

in the operation of the Re-Entry Loan for Displaced Workers on a municipal, provincial or 

regional level by: 

1. Referring individual or group applicants to the Regional OWWA Units for assistance; or 

2. Implementing an approved Displaced Workers Assistance Scheme in their identified 

areas that would closely follow the guidelines and procedures herein set forth. 

Proposals for the latter are to be submitted to the Plans and Programs Office (PPO) for 

assessment and evaluation of their individual merits. 

The partner-agency may adopt a suitable format for the proposal but must include the 

following relevant information: 

a. List of Beneficiaries to benefit from the Scheme; 

b. Requirements 1-6 of Loan Requirements and Appropriate Additional Requirements for 

Group Projects; 

c. Significant Information on the Partner-Agency including Structure of the organization; 

d. Status and Extent of Assistance Given to Displaced Workers (or the agencyís track record 

in assisting similar beneficiaries); 

e. Detailed Workplan Indicating Time Frame and Important Activities/Tasks; 

f. Detailed Design for Social/Technical Preparation, Monitoring and Collection; 

g. Business Plan; and 

h. Draft Memorandum of Agreement between the partner-agency and OWWA 

The approval of the Administrator must be secured for any document or agreement 

regarding partnerships with allied agencies that would oblige OWWA in any manner.


Availment Procedures 

Individual Loans: 

For Walk-in-Applicants 

1. The applicant undergoes an assessment interview where significant data and information 

are recorded; 

2. Appropriate trainings are recommended and undertaken; 

3. The proponent submits a business plan together with all other requirements; 

4. The project development officer (PDO) evaluates the proposal, after determining the sufficiency 

of information that is contained in the business plan; 

In case of a deficient business plan, the PDO assists the applicant in organizing the 

proposal. As appropriate, project evaluation is endorsed to another project staff; 

5. Approved projects are processed for release; 

6. Applicants of disapproved projects are notified through registered mail within three (3) 

working days from conclusion, clearly stating the reason for the decision; 

7. The applicant is oriented thoroughly on the details of his/her loan prior to loan release; and 

8. Fortnight project monitoring is undertaken on the first two (2) months of implementation 

after which monthly monitoring is continued until project termination or completion of loan 

amortization. 

For Clients Who Are Referred By Partner-Agencies 

1. The partner agency provides all needed information regarding the individual applicants to 

the corresponding ROU; 

2. The ROU determines eligibility for availment; 

3. Whenever applicable social/technical preparation is relied on the partner agency, otherwise 

the ROU assumes responsibility; 

4. The partner agency submits the business plan on behalf of the worker or group of workers; 

5. The ROU project staff evaluates and recommends accordingly based on the merits of the 

proposal; 

6. Approved projects are processed for release;

2040 


Applicants of disapproved projects are notified through registered mail within three (3) 

working days from conclusion, clearly stating the reason for the decision; 

7. Applicants are oriented thoroughly on the details of their loan prior to loan release; and 

8. Fortnight project monitoring is undertaken on the first two (2)months of implementation 

after which monthly monitoring is continued until project termination or completion of loan 

amortization. 

Group Loans 

Walk-in-Applicants 

1. Individual members undergo assessment interview where significant data and information 

are recorded; 

2. The project staff determines eligibility for availment; 

3. The project staff arranges a group meeting with every member in attendance to discuss 

loan policies and details of business plan; 

4. Appropriate trainings are recommended and undertaken; 

5 Projects with funds request of P100,000.00 and below are evaluated and approved at the 

ROU level; 

6. Projects with funds request of over P100,000.00 are endorsed to the Plans and Programs 

Office for evaluation; 


Applicants of disapparoved projects are notified through registered mail within three 

(3) working days from conclusion of findings, clearly stating the reason for the decision; and 


after which monthly monitoring is to be continued until project termination or completion of 

loan amortization. 

For clients who are referred by partner-agencies: 

1. The partner-agency provides all needed information regarding the individual applicant 

and the organization/group to the ROU; 

2. The ROU determines eligibility for availment; 

3. Whenever applicable, social and technical preparation is relied on the partner agency, 

otherwise the ROU concerned assumes responsibility; 

4. The partner-agency may submit the business plan on behalf of group applicants;


5. A projects with funds request of P100,000.00 and below are evaluated and approved at 

the ROU level; 

6. Projects with funds request of over P100,000.00 are endorsed to the Plans and Programs 

Office for evaluation; 



after which monthly monitoring is to be continued until project termination or completion of 

loan amortization. 

By endorsing any project under this credit window, the concerned ROU assures 

compliance to the project monitoring requirement as specified in these guidelines. 

FUNDS FOR THE CREDIT WINDOW 

There shall be no new accounts to be established in the ROUs for the Re-Entry Loan 

for Displaced Workers except for the Autonomous Region for Muslim Mindanao (ARMM), 

CARAGA and the National Capital Region (NCR). 

Instead, the Non-Collateralized Loan Fund of the former ELDP shall be retained and 

augmented to finance the lending operation of this credit window. 

All existing cash balances, including collectibles from previous non-collateralized loans, 

constitute the Non-Collateralized Loan Fund. 

Initially, a total of P10 million had been allocated for the Re-Entry Loan for Displaced 

Workers. Of this amount, P2,811,000.00 will be retained in the OWWA Head Office as a 

block fund to finance group project that will be endorsed by the ROUs for approval as well 

as separate proposals by partner-agencies. 

Fund balances for the Non-Collateralized Loan Fund of every ROU have been taken 

into account to bring about an effectively proportionate distribution of the loan fund for the 

Re-Entry Loan for Displaced Workers. 

The fund distribution is as follows: 

ROU I - 380,000.00 

ROU II - 483,000.00 

ROU III - 450,000.00 

ROU IV - 491,000.00 

ROU V - 474,000.00 

ROU VI - 396,000.00 

ROU VII - 405,000.00 

ROU VIII - 432,000.00 

ROU IX - 452,000.00 

ROU X - 397,000.00 

ROU XI - 271,000.00 

ROU XII - 295,000.00

2042 


APPROVING AUTHORITIES 

ROU CAR - 463,000.00 

ROU ARMM - 500,000.00 

ROU CARAGA - 500,000.00 

LOD - NCR - 800,000.00 

TOTAL P7,189,000.00 

The approving authorities for the Re-Entry Loan for Displaced Workers are as follows: 

P100,00.00 and below - Regional Supervisor 

Between P100,001.00 to P300,000.00 - Deputy Administrator 

Above P300,00.00 - Administrator 

This Memorandum of Instruction takes effect immediately. 


(SGD.) ELEUTERIO N. GARDINER 


PANGASIWAAN SA PAGPAPAUNLAD NG KALAKHANG 

MAYNILA (Metropolitan Manila Development Authority) 


MMDA Regulation No. 20-006, s. 2000 

Requiring All Vehicles Carrying Explosives and 

Highly Flammable Materials to Utilize Service Roads Instead 

of Using Tunnels/Depressed Structures in Metro Manila 

WHEREAS, vehicles carrying explosives and highly flammable materials pose grave 

danger to peoplesí lives who are in transit; 

WHEREAS, the danger posed by vehicles loaded with explosives and highly flammable 

materials become greater when said vehicles are within tunnels/depressed structures 

that have enclosures; 

WHEREAS, it is necessary to adopt measures that would keep the streets of Metro 

Manila safe for all motorists;


WHEREAS, many of the tunnels/depressed structures constructed in Metro Manila 

are provided at grade or ground level service roads mainly utilized by public utility vehicles 

and those taking a turn at the intersection. 

NOW, THEREFORE, pursuant to Section 6 of RA 7924, this Regulation is hereby 

promulgated and adopted by the Metro Manila Council, that: 

SECTION 1. For purposes of this Regulation, Explosives and Highly Flammable 

Materials shall mean any substance that may tend to explode such as LPG tank, gasoline 

tank, acetylene, oxygen tank, helium gas, gun powder, dynamite, fire crackers and the like. 

SECTION 2. Coverage - This Regulation shall apply to all vehicles carrying explosives 

and highly flammable materials regardless of the gross capacity weight except fuel tanks 

and similar combustible materials utilized by vehicles which shall not be allowed access to 

the tunnel/underpass/depressed structure but shall be diverted to other routes. 

SECTION 3. Vehicles carrying gunpowder, dynamite, firecrackers and the like must 

secure a permit from the Philippine National Police (PNP) or must have a PNP escort while 

traversing along Metro Manilaís service roads. 

SECTION 4. Penalty - The driver and owner/operator of vehicle carrying explosives 

and highly flammable materials shall be jointly and severally liable to the payment of fine in 

the amount P1,000.00. 

SECTION 5. The MMDA Chairman shall issue the necessary guidelines and implementing 

rules in this Regulation. 

SECTION 6. Effectivity - This Regulation shall take effect fifteen (15) days after publication 

in two (2) newspapers of general circulation. 


(SGD.) JEJOMAR C. BINAY 

Chairman 

(SGD.) BENJAMIN C. ABALOS, JR. (SGD.) WENCESLAO B. TRINIDAD 

Member Member 

Mayor, City of Mandaluyong Mayor, Pasay City 

(SGD.) JOSE L. ATIENZA, JR. (SGD.) REYNALDO O. MALONZO 

Member Member 

Mayor, City of Manila Mayor, Caloocan City 

(SGD.) ISMAEL A. MATHAY, JR. (SGD.) VERGEL A. AGUILAR 

Member Member 

Mayor, Quezon City Mayor, City of Las PiÒas 

(SGD.) JOSE T. CAPCO, JR. (SGD.) BOBBIT L. CARLOS, M.D. 

Member Member 

Mayor, Pateros Mayor, City of Valenzuela 

(SGD.) TOBIAS M. TIANGCO (SGD.) BAYANI F. FERNANDO 

Member Member 

Mayor, Navotas Mayor, City of Marikina

2044 


(SGD.) RICARDO D. PAPA, JR. (SGD.) MARK ALLAN JAY G. YAMBAO 

Member Member 

Mayor, Taguig President, MM Vice Mayors League 

(SGD.) NARCISO C. BERNARDO 

Member 

President, MM Councilors League 

PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION 



Additional Requirements for Processing of Documents 

of Visa Holders Under the Sponsorship for 

Employment Purposes Category for Italy 

Further to Memorandum Circular No. 6, Series of 2000 on the processing of holders of 

visas under the Sponsorship for Employment Purposes category (Inserimento Nel Mercato 

Del Lavoro) through the Name Hire facility, the following are additional requirements for 

processing: 

a. Airline Booking Certificate 

b. PDOS Certificate 

c. Affidavit of Undertaking by the visa holder that he/she will report in person or in 

writing to the Office of the Labor Attache within 30 days from date of arrival and to submit his/ 

her employment contract or certificate within 30 days from date of commencement of 

employment. 

Holders of the above visas, however, shall not be required to undergo medical 

examination prior to departure in consideration of the mandatory medical examination upon 

arrival in Italy. 



(SGD.) REYNALDO A. REGALADO 

Administrator


PHILIPPINE PORTS AUTHORITY 


1. AUTHORITY 

PPA Administrative Order No. 11-2000 

Regulations on Compulsory Tug Assistance at the Port of Batangas 

1.1 Section 6 (a) (ii), (iii), (v) and 20 of P.D. 857 

1.2 Section 12 of PPA AO No. 03-85 

2. SCOPE ñ This Order shall cover all foreign and domestic vessels with 500 GRT and 

above which dock/undock at the Baseport of Batangas and all ports within the jurisdiction of 

the Port Management Office (PMO) of Batangas. 

3. OBJECTIVE ñ To protect government port facilities and marine environment and to ensure 

the same maneuvering of vessels at the Baseport of Batangas and all ports within the 

jurisdiction of PMO-Batangas, through the use of tugs. 

4. GUIDELINES 

4.1 Responsibility for Ensuring Availability of Tug Assistance ñ The Authority (PPA) 

shall provide tug assistance service by authorizing shipping companies or private entities 

to provide such service on a non-exclusive basis. 

4.2 Permit to Operate Tug Assistance 

4.2.1 Only tug operators with a valid Permit to Operate (PTO) issued by PMO- 

Batangas shall be allowed to render tug assistance service, subject to the requirements 

of other agencies. The tug operator shall provide the equipment needed to render efficient 

service. 

4.2.2 Tugboats towing barges/lighters are exempted from the above required annual 

permit when utilized solely for their own barges/lighters. Otherwise, the above permit 

is required when servicing other vessels for purposes of this regulation. 

4.3 Table of Tug Requirements ñ Tug assistance requirements shall be determined on 

the basis of the gross registered tonnage (GRT) of the vessels and capacity (HP) of the 

tugs in accordance with the following specifications: 

GRT Tugboat Capacity (HP) No. of Tugs 

500 - 1,000 500 1 

1,001 - 2,000 1,000 1 

2,001 - 4,000 2,000 1 

4,001 - 6,000 1,500 2 

6,001 - 10,000 2,000 2

2046 


10,001 - 15,000 2,500 2 

15,001 - 25,000 3,000 2 

25,001 - 35,000 3,500 2 

35,001 - 45,000 3,500 2 

1,500 1 

45,001 - 60,000 3,500 3 

60,001 - 90,000 2,500 2 

3,000 2 

90,001 - Over 3,600 4 

4.3.1 Provided, that the Master of a vessel may opt to avail tug assistance on vessel 

with less than 500 GRT, depending on the prevailing weather condition. 

4.3.2 Provided, further, that vessels with both functional and stern side thrusters of 

sufficient capacity are exempted from the above requirement. Vessels with functional 

bow thrusters only are required to have 50% of the above horsepower requirements. 

4.3.3 Non-propelled vessels such as barges/lighters are likewise exempted from 

the above requirement. However, they are still required to maintain their own tugboats 

while at berth in accordance with PPA Memorandum Circular No. 22-86. 

4.3.4 In no case shall any vessel with 500 GRT and above be allowed to dock/ 

undock at the baseport of Batangas without the above specified tug assistance. For other 

ports within the jurisdiction of PMO-Batangas, the same tugboat horsepower requirements 

shall be followed when any of the conditions provided for in Section 12 (C) of PPA 

AO No. 03-85 necessitating compulsory tug assistance is present. 

4.4 Rates for Tug Services ñ Consistent with existing applicable laws, the Authority 

shall prescribe fees and rates for tug assistance in consultation with port users concerned. 

In the absence of applicable fees, the rates chargeable shall be those that are 

agreed upon between the shipping company and the tugboat operator. In case of disagreement 

between them, the Authority shall determine the rates. 

4.5 Liability for Damages to Port Facilities ñ Any damage caused to port facilities by 

vessels under tug assistance service shall be the liability of the party/parties declared at 

fault, as determined under existing applicable laws and regulations. 

5. SEPARABILITY CLAUSE ñ If for any reason or part of this Order is declared unconstitutional 

or invalid by competent Authority, the declared or invalid section or part thereof shall 

not affect the other sections or parts to which such declaration or nullity does not apply or 

relate. 

6. REPEALING CLAUSE - All PPA orders which are inconsistent herewith are hereby 

repealed or amended accordingly. 

7. EFFECTIVITY ñ This Order shall take effect fifteen (15) days after its publication in any 

newspaper of general circulation. 

Adopted: 23 Oct. 2000



(SGD.) JUAN O. PE—A 

General Manager 

óo0oó 

PPA Memorandum Circular No. 45-2000 

Palletizing and Stockpiling of Non-Containerized Cargoes 

as Part of Regular Cargo Handling Services 

There have been varied interpretations relative to palletizing and stockpiling or piling 

services as part of arrastre work being rendered in the receipt and delivery of cargoes from 

and to shipperís or consigneeís transportation. 

To ensure proper interpretation of the terms ìPalletizing and Stockpiling or Piling of 

Cargoesî as commonly used in cargo handling services and in the terms and conditions of 

the tariff, and eliminate misunderstandings among cargo handling operators, shipping line 

owners, shippers and consignees, the following clarifications are hereby issued: 

1. SCOPE: This Memorandum Circular shall cover arrastre and stevedoring services for 

non-containerized cargoes in all ports with cargo handling contracts or hold-over permits 

issued by the Philippine Ports Authority. 

2. DEFINITION OF TERMS: 

2.1 Stockpiling or Piling of Cargoes ñ This refers to an activity where non-containerized 

cargoes are transferred and stored at PPA owned and designated open storage, shed or 

warehouse located inside the port prior to delivery or loading to vessel. This also includes 

piling or delivery of cargoes onto consigneeís trucks. 

This may also refer to piling of cargoes inside consigneeís owned warehouse or storage 

outside of the operational area of the authorized cargo handling operator. This activity, 

however, is a special service which may be imposed a separate fee. 

2.2 Palletizing of cargoes as used in item 9.7 of the terms and conditions of the cargo 

handling tariff, refers to an activity where breakbulk cargoes are placed on portable pallets 

prior to discharging or in receiving deliveries from shipper or in delivering cargoes 

onto consigneeís transportation. 

Palletizing of cargoes also refers to an activity where the cargo handlerís services are 

engaged to place and strap cargoes on pallets, off dock, in order to comprise a unit load 

per pallet. 

3. CLARIFICATIONS: 

3.1 Stockpiling or Piling of cargoes as defined in the first paragraph of item 2.1 hereof is 

part of arrastre services not subject to any additional fee. This service is already paid for 

under the prescribed arrastre rates in the cargo handling tariff.

2048 


3.2 The particular activity of piling cargoes onto consigneeís truck, being part of the 

arrastre work to be rendered by the authorized cargo handler in the port, can not be 

segregated and should not be awarded to another contractor to warrant the imposition of 

additional fee for said activity. 

3.3 Stockpiling or piling of cargoes inside consigneeís warehouse or storage, being a 

special service, is subject to additional fee at the rate agreed upon by the authorized 

cargo handler and the cargo owner or as prescribed in the cargo handling tariff. 

3.4 Palletizing of cargo as defined in the first paragraph of item 2.2 hereof is likewise 

part of the arrastre/stevedoring services, which is not subject to an additional charge. 

Palletizing of cargoes as defined in the second paragraph of item 2.2 is not part of the 

regular arrastre work which is, therefore, subject to a separate charge. 

4. REPEALING CLAUSE: All PPA issuances, or parts thereof, which are inconsistent herewith 

are hereby repealed or amended. 

5. EFFECTIVITY: This Circular shall take effect immediately and shall remain in force until 

revoked or amended. 





óo0oó 


Amendment to Paragraph 4.1.1 of PPA MC No. 19-96 Dated 30 April 1996 

Entitled ìRevised Guidelines and Standard Operating Procedures 

in the Port During Inclement Weatherî 

In order to ensure the safety of barges, watercrafts, vessels and prevent damage to 

port facilities at South Harbor, Section 4.1.1 is hereby amended by adding the following 

paragraphs thereto, which read as follows: 

ì1. Provided, however, that during the Southwest Monsoon season from the month 

of June to September of the year, barges shall be transferred, upon the hoisting 

of Typhoon Signal No. 1, from the South Harbor Breakwater Barge Pool to Pasig 

River at Government Berth or Private Berth as the case may be; 

2. Provided, further, that when the southwest Monsoon intensifies, said barges 

shall also be thus transferred even before Typhoon Signal No. 1; 

3. Consequently, the cargo handling operations on vessels at the South Harbor Anchorages 

(IBW/OBW) shall be deemed suspended during such operational adversity.î


The other provisions of PPA MC No. 19-96 shall apply accordingly. 






óo0oó 


Clarification on the Regulations on Domestic Roll-On-Roll-Off (Ro-Ro) 

Transport Operations and Tariff Under PPA Administrative Order No. 05-95 

There have been varied interpretations of the rules and regulations on ro-ro transport 

operations and rates prescribed in PPA Administrative Order No. 05-95, as amended by 

PPA AO No. 07-98, and further amended by PPA Operations Memorandum Order No. 02- 

2000. Pending the finalization of the agreement on the updated regulations and handling 

fees for ro-ro cargoes among the shipowners, cargo handling operators and shippers/consignees, 

which is the subject to the on-going workshops in Manila and Cebu, the following 

clarifications are hereby issued: 

1. SCOPE ñ This Memorandum Circular shall cover all domestic ro-ro cargoes loaded/ 

discharged to/from Ro-Ro vessels that call at government ports operated by cargo handlers 

with expired cargo handling contracts or new cargo handling contracts/permits to operate 

issued on or after the issuance of PPA AO 05-95. 

2. DEFINITION OF TERMS 

2.1 RO-RO Vessel ñ a vessel having the capacity to permit the horizontal mode of 

transferring cargoes from the pier/wharf to the vessel or vice versa, through the use of a 

ship or shore-based ramps over the side, at the bow or at the stern of the ship. 

2.2 RO-RO Cargo ñ a unitized cargo capable of being loaded into or unloaded from a 

RO-RO vessel, using its own wheels and motive power, or being towed or drawn by a 

temporary handling equipment. 

2.3 RO-RO Self-Propelled or Pure RO-RO ñ vehicles of any type (private, cargo or 

passenger) empty or loaded, are driven on their own power into or out of the RO-RO 

vessel without rehandling at the pier/wharf or grounding on board the vessel. 

2.4 CHA-RO ñ chassis or trailers, empty or loaded with cargo, whether breakbulk, unitized, 

palletized or containers, are towed or wheeled into or out of the roro vessel by 

means of a prime mover, tractor or tow motor, without cargo rehandling, shifting, or grounding 

on vessel and where no other cargo handling is rendered except lashing or unlashing.

2050 


2.5 STO-RO ñ conventional, unitized, palletized cargoes or containers which are carried 

from the apron and stowed into RO-RO vessel or out of the RO-RO vessel to apron 

or waiting truck, by means of a forklift or similar wheeled equipment. The forklift provides 

the temporary mobile system for such cargo. 

3. CLARIFICATIONS 

3.1 The rates under PPA Operations Memo Order No. 02-2000, which are hereby reiterated, 

shall continue to remain in force and effect: 

3.1.1 RO-RO Self-Propelled 

Rate/Vehicle 

Private Vehicle (non-cargo/non-passenger) 15.00 

Cargo/Passenger Jeep (Loaded or Empty) 

4 wheeler 41.00 


Cargo Truck/Passenger Bus (Loaded or Empty) 


10 wheeler 308.00 

14 wheeler 357.00 

16 wheeler and above 409.00 

Heavy equipment 473.00 

The rate of P15.00 for private vehicle shall be applied only if the driving of the same into 

or out of the ro-ro vessel is done by the owner/driver himself. In the event that the responsibility 

of driving the vehicle is turned over to the cargo handler, the rate of P41.00 for 4 

wheeler cargo/passenger jeep shall be imposed. 

3.1.2 CHA-RO 

3.1.2.1 Container/s mounted on chassis or trailer: 

Handling Fee 

Basis Loaded Empty 

Below 10 footer Per box 74.00 22.00 

10 footer Per box 147.00 45.00 

Over 10 to 20 footer Per box 296.00 119.00 

Over 20 to 35 footer Per box 517.00 207.00 


3.1.2.2 Conventional cargo (breakbulk, palletized or unitized, live animals, iron 

and steel products, etc.) loaded on trailers and towed in/out of the Ro-Ro vessels: 

These cargoes shall be charged seventy-five percent (75%) of the arrastre rate for 

non-palletized cargo in the existing tariff for conventional cargo based on the gross weight. 

3.1.2.3 Empty Chassis/Trailers ñ These cargoes shall be charged fifty percent 

(50%) of the arrastre rate in the existing tariff for conventional cargo.


3.1.3 STO-RO 

3.1.3.1 Container/s mounted on chassis or trailer: 

Handling Fee 

Basis Loaded Empty 

Below 10 footer Per box 74.00 22.00 

10 footer Per box 147.00 45.00 

Over 10 to 20 footer Per box 296.00 119.00 



3.1.3.2 Conventional cargo (palletized or unitized) discharged from trailer and 

stowed on the wharf or vice-versa: 

These cargoes shall be charged 75% of the arrastre rate for palletized cargo in the 

existing tariff for conventional cargo. 

The above rates are applicable on all ro-ro cargoes provided the operations are within 

the definitions as stated in PPA Administrative Order No. 05-95 and reiterated under Item 

2 hereof. Deviations from the ro-ro concept as herein defined shall not require the cargo 

handler to stick to the above-mentioned ro-ro rates, specially so when the work already 

requires some form of lo-lo operations. 

3.2 The principle of ìno work, no payî means that no amount or fee shall be collected by 

the cargo handler if he does not render any service at all because there is no need for 

such service. It may also be applied if the authorized cargo handler in a government port 

fails to provide the necessary equipment or gang of laborers to perform cargo-handling work. 

The above principle does not apply to a situation where the cargo handling operator should 

perform the work but the ship owners/consignees prefer to do the cargo handling themselves. 

3.3 The authority has taken cognizance and shall continue to respect the special arrangements 

between the authorized cargo handling operators and the shipping lines/ 

cargo owners relative to ro-ro handling fees which are higher/lower than those prescribed 

in PPA Operations Memo Order No. 02-2000, provided the government share will not be 

prejudiced. 

4. REPEALING CLAUSE ñ All PPA issuances, or parts thereof, which are inconsistent 

herewith are hereby repealed or amended. 

5. EFFECTIVITY ñ This Circular shall take effect immediately and shall remain in force until 

revoked or amended. 




óo0oó

2052 



PPA Administrative Order No. 04-2000 

Occupational Safety and Health Standards of DOLE 

Pursuant to Section 6. a) (iii) and Section 26. a) of PD 857 and to further ensure the 

safety and health of the portworkers in the various ports under the jurisdiction of the Authority, 

the pertinent provisions of the Occupational Safety and Health Standards (as amended), 

promulgated by the Department of Labor and employment shall be adopted accordingly in 

all ports. 

Applicable provisions of subject body of standards, rules and regulations shall be implemented 

in addition to the Dockwork Safety and Health Standards promulgated by PPA in 

1983. 


For guidance and compliance of all concerned. 

Adopted: 18 Feb. 2000 


1. Authority 



óo0oó 

PPA Administrative Order No, 10-2000 

Revised Guidelines on the Imposition of Interest and Penalty Charges 

1.1. Section 6 a)(iii) of Presidential Decree No. 857 

1.2. Section 22 of Presidential Decree No. 857 

2. Coverage - This guideline shall cover all trade transactions of the Authority. It shall likewise 

be applicable to transactions covered by contract, agreement, undertaking or the like 

unless the manner and rate of interest and penalty charges are specifically provided otherwise. 

3. Definition of Terms 

3.1. Cash and Carry System is a collection system in which payment is made by the 

party primarily liable (the Shipping Line, the Shipper or the Consignee) in cash, managerís/ 

cashierís check or PPA pre-approved company check prior to withdrawal of cargoes from 

the port/loading of cargoes unto vessel for charges against cargoes or before issuance of 

departure clearance for charges against vessel.


3.2 Cash and Carry System with Cash Revolving Deposit is a variant of the cash and 

carry system where the party primarily liable (the Shipping Line, the Shipper or the Consignee) 

maintains a cash revolving deposit with PPA equivalent to its/his one month transaction 

volume and replenished any time the remaining balance is no longer sufficient to 

cover the amount of the transaction in process. 

3.3 Centralized Collection System for Oil Companies is prescribed specifically for this 

industry where the oil company maintains a cash revolving deposit with PPA and payment 

for both loading and unloading wharfage dues are paid at the loading port and due 

on the 25 th of the month for companies with 15-day cash revolving deposit or every 25 th 

day of the month for companies with 30-day cash revolving deposit. 

3.4. Modified Cash and Carry System is an alternative collection system where the party 

availing (party acting as representative of its client- shippers/consignees) has complied 

with the posting of fixed cash deposit equivalent to 3-day transaction volume and other 

requirements of the system and given the privilege to pay on a per vessel per voyage 

basis within a period of three (3) working days from date of vessel departure. 

4. Rate and Reckoning Date of Interest Charges 

4.1. An interest charge at the rate of Twelve Percent (12%) per annum shall be imposed 

reckoned from the day specified hereunder: 

4.1.1. For port charges and cargo handling charges collected on cash and carry 

system, the reckoning date shall be upon withdrawal/loading of cargoes or departure 

clearance of the vessel. 

4.1.2. For port charges and cargo handling charges collected on cash and carry 

system with cash revolving deposit, the reckoning date shall be upon withdrawal/loading 

of cargoes or departure of the vessel based on the mount not covered by the remaining 

balance of the cash revolving deposit. 

4.1.3. For port charges and cargo handling charges collected under the modified 

cash and carry system, the reckoning date shall be three (3) working days after the date 

of departure of the vessel. 

4.1.4. For wharfage dues collectible from the oil companies, the reckoning date shall 

be the due date as provided in Sec. 3.3 hereof based on the amount not covered by the 

remaining balance of the cash revolving deposit. 

4.1.5. For rental charges, fixed and variable ferns or percentage government share 

under the remittance system, other fees, charges and claims which are covered by a 

contract, agreement or undertaking, the reckoning date shall be the due date as provided 

in those documents. 

4.2. Formula: 

Interest Charge = Principal x 12% x No. of days 

360

2054 


5. Rate and Reckoning Date of Penalty Charges 

5.1 A penalty charge shall be imposed at the rate specified below and reckoned from the 

day the account becomes due and payable as provided in Sections 4.1.1 to 4.1.5 hereof 

5.1.1. A flat rate of 25% for an account which remains unpaid for one (1) up to thirty 

(30) calendar days 

Formula: Penalty Charge = Principal x 25% 

5.1.2. Additional penalty of 50% per annum if the account still remains unpaid after 

thirty (30) calendar days 

Formula: Penalty Charge = (Principal x 25%) + (Principal x 50% x No. of days ñ 30) 

360 

6. Impositions on Old Accounts/Assessments - All receivables or assessments which 

are outstanding or unpaid as of the effectivity date of this Administrative Order shall be 

charged interest of 12% per annum and penalty charges at the old rate of 12% per annum 

until fully paid. 

7. Audit Assessments - The reckoning date for the imposition of interest and penalty charges 

on all accounts under audit shall be as provided in the preceding sections. 

8. Booking of Interest and Penalty Charges 

8.1 Unlike the basic charge which is recorded on accrual basis, interest and penalty 

charges shall be recorded m the books of accounts upon collection thereof, retroactively 

computed in accordance with Sections 4, 5 and 6 hereof. 

8.2 To ensure total awareness by the port user of this imposition, all Computation Sheets, 

Bill of Charges, assessment notices and the like shall bear a bold printed notation which 

reads, as follows: 

ìSubject to 12% p. a. interest charge plus 25% + 50% p.a. penalty chargeî 

8.3 The Statement of Account periodically issued for unpaid accounts shall include the 

computation of estimated interest and penalty charges as of the end of that month. 

9. Separability Clause - If, for any reason, any section or provision of this Order is declared 

to be invalid, the other sections or provisions which are not affected shall continue to be in 

full force and effect. 

10. Repealing Clause - This Administrative Order revokes the following orders: 

10.1. PPA Administrative Order No. 02, Series of 1982 - Guidelines on the Imposition of 

Uniform Interest & Penalty Charges on Late Payment of Port Dues and Other Charges 

10.2. PPA Administrative Order No. 02, Series of 1984 - Amendment to PPA Admin. 

Order No. 02-82


10.3. PPA Administrative Order No. 01, Series of 1987 - Amendment to PPA Admin. 

Order No. 02-84 

10.4. PPA Administrative Order No. 01, Series of 1991 ñ Addendum to Guidelines on the 

Imposition of Interest & Penalty Charges under PPA Admin. Order No. 08-82 

It likewise repeals, amends or modifies all orders, regulations, circulars and other issuances 

which are inconsistent herewith. 

11. Effectivity - This Administrative Order shall take effect 60 days after publication in the 

Official Gazette and in a newspaper of general circulation. 

Within this 60-day period, the PDOs and PMOs shall meet and/or deliver copy of this 

Administrative Order directly to their regular port users, the shipping lines, liner representatives, 

harbor pilots, cargo handling operators, contractors, lessees and others. 

For strict compliance. 





óo0oó 


Supplemental Guidelines to PPA Memo Circular No. 07-2000 

Entitled ìGuidelines for the Privatization of the Management 

and Operation of the Parking Areas at North Harborî 

In order to clarify PPA Memo Circular No. 07-2000, dated 09 February 2000, and 

further improve the flow of vehicular traffic within the premises of North Harbor, the following 

additional guidelines are issued: 

1. All cargo trucks/haulers whether loaded or empty and light vehicles such as private cars, 

taxis and jeepneys with passengers on board entering the premises of North Harbor shall 

pay an entrance fee of TEN PESOS (P10.00) per entry. 

2. Trucks/haulers that park at the common pay parking areas, the truck holding area and 

the queuing area are given a ìfree useî of such areas for four (4) hours per entry. Those 

that have parked beyond the allotted ìfree useî period shall be charged the corresponding 

parking fee as follows: 

First four (4) hours ñ No charge 

Fifth hour ñ P50.00 per entry 

Succeeding hour/s ñ P40.00 per hour

2056 


3. The eastern side of Marcos Road shall be utilized primarily for queuing of trucks waiting 

for their cargoes to be discharged and loaded into carrying vessels. Empty trucks are 

prohibited from using the area while waiting for cargoes. Instead, they shall proceed directly 

to any of the designated parking areas at Collector Road or at the PMO Truckholding Area. 

4. Any vehicle left unattended at said queuing area or whose driver refuse to pay parking 

fees shall be towed by the private contractor to the impounding area and charged also 

with the corresponding towage fee of FIVE HUNDRED PESOS (P500.00). 

5. All light vehicles are allowed to disembark their passengers at the queuing area but shall 

leave the premises of North Harbor immediately after disembarking their passengers. 

Vehicles that opt to stay after disembarking their passengers shall immediately proceed 

to pay parking areas at either the Collector Road or at the MICT Access Road and pay the 

corresponding parking fee provided in No. 6 hereof. 

6. All light vehicles with the intention of loading passengers shall also pay an entrance fee of 

TEN PESOS (P10.00) per entry and proceed to the designated parking area at either the 

Collector Road or at the MICT Access Road and pay the corresponding parking fee as 

follows: 

First two hours ñ P30.00 

Succeeding hours ñ P20.00 per hour 

7. The queuing area designated at the eastern side of Marcos Road under PPA Memorandum 

Circular No. 07-2000 may be relocated to the western side of Marcos Road by the 

private contractor depending on the traffic plan devised by the contractor and concurred 

of the Port Management Office of North Harbor. 

This Order takes effect fifteen (15) days after publication in a newspaper of national 

circulation and shall remain in force until revoked. 



(SGD.) JUAN O PE—A 


óo0oó 


Guidelines on the Management and Operation of Truckholding 

Area (THA) at the Former V & H Manufacturing and A G & P Areas, 

Expanded Port Zone (EPZ), South Harbor, Manila 

1. AUTHORITY 

1.1 Section 6a (x), PD 857, Revised Charter of PPA 

1.2 Executive Order No. 321 dated 17 March 1988 

1.3 Letter of GM to ATI dated 08 July 1999 on Turnover of said areas to ATI


2. OBJECTIVES 

2.1 To ensure the rational, optimal and equitable use of the said THA. 

2.2 To regulate the entry on access of trucks into South Harbor Pier Areas via Gate 7 to 

deliver thereto or withdraw therefrom empty/loaded containers 

2.3 To enhance port operational efficiency thru the use of the THA as a complementary 

facility to the pier areas and the operating system of the South Harbor Container Terminal. 

3. PURPOSES 

3.1 To provide guidelines for the cargo handler in the management and operations of the 

THA and its availment by truckers. 

3.2 To prescribe the conditions for the rational utilization by all concerned of the THA and 

the imposition of the reasonable sanctions for violations thereof. 

3.3 To impose reasonable fees on truckers after the period for initial-free-of-charge availment 

of the THA. 

The Authority in coordination with the cargo handlers shall determine within three (3) 

months from the approval of this Circular, the imposition of appropriate fees to be charged 

from the truckers as reasonable compensation for the use of the THA and to defray expenses 

for the repair and maintenance thereof. 

4. GUIDELINES 

4.1 Only trucks intending to withdraw from and/or deliver containerized cargoes to the pier 

at South Harbor via Gate 7 shall be allowed entry thereto if they are in possession of Permit 

to Operate (PTO) and truck stickers issued by the PMO-South Harbor, ATI-EIR (Equipment 

Interchange Receipt) and Shipping Line Export Container Order (ECO). 

4.2 Trucks without documentation as required in 4.1 may be allowed entry to the THA if 

slots are available for stay of not more than twelve (12) hours from 9:00 A.M. to 9:00 P.M. 

To avoid the use of the THA as an operation base by truckers to service cargoes 

outside of South Harbor, their trucks shall be charged parking fee of One Hundred Pesos 

(P100.00) for the first two (2) hours and additional Fifty Pesos (P50.00) per hour for 

succeeding hour when the trucks leave the THA before 5:00 P.M. However, the trucks 

will not pay the parking fee when they leave the area after 5:00 P.M. and truckers are 

unable to secure documents for the movement or servicing of cargoes inside the piers of 

South Harbor. 

4.3 The entry to and hours of stay of trucks at the THA shall be monitored by the cargo 

handler thru the use of computer system approved by PMO-South Harbor. 

4.4 The driver/helpers of trucks permitted entry into the THA shall abide by the following 

rules:

2058 


4.4.1 Clean the slots occupied by them before leaving said areas. 

4.4.2 Not dump garbage, except in receptacles provided at proper places by cargo 

handler and neither use the THA as urinating place or disposal of human waste. 

4.4.3 Not leave at any time trailer/chassis without prime mover and/or unattended by 

driver. 

4.4.4 Not use the THA as a repair/motorpool area or overnight parking. 

4.4.5 Not use the THA for gambling, illegal drugs, drinking alcoholic beverages nor 

use the same for cooking. 

5. ROLE OF CARGO HANDLER 

5.1 Manage, develop and operate the THA at no cost to PPA in accordance with this Circular 

and for this purpose to formulate and adopt detailed procedures necessary for the effective 

attainment of the objectives herein set forth. 

5.2 Require truckers/drivers/helpers strict compliance with the rules on the proper utilization 

of the THA. 

5.3 Coordinate with the Port Police Division and the Port Manager of PMO-South Harbor on 

the imposition of the administrative penalties for violations of this Circular. 

5.4 Submit monthly report to the Port Manager regarding the operations of the THA, problems/issues 

encountered and the solutions/actions taken or recommended. 

6. ROLE OF PMO-SOUTH HARBOR 

6.1 Supervise the management and operations of the THA by the cargo handler, which 

supervision is defined generally to oversee and ensure that the THA is efficiently managed/ 

operated, but without interference with the day to day activities thereat. 

6.2 Extend assistance, thru the PPD, especially in the implementation of the penalty provisions 

of this Circular. 

6.3 Resolve operational issues or concerns that may arise from the implementation/application 

of this Circular. 

6.4 Implement related measures to ensure the effective implementation of this Circular. 

7. ROLE OF TRUCKERS 

7.1 Strictly abide by the rules on retrieval and use of the THA. 

7.2 Coordinate with and assist the cargo handler in the cleanliness and maintenance thereof.


8. SANCTIONS 

8.1 Truckers/drivers of trucks who are found to have violated any of the foregoing guidelines 

on the utilization of the THA shall be imposed a fine of: 

8.1.1 P125.00 for first violation 

8.1.2 P250.00 for second violation 

8.1.3 P500.00 for three (3) consecutive violation within a quarter and the truck/vehicle 

involved subject to: 

8.1.3.1 Ban in the use of the THA for three (3) months. 

8.1.3.2 Transfer at ownerís/driverís expense to authorized impounding area. 

8.2 The management and operations of the THA shall be withdrawn from the Cargo Handler 

if the objectives of this Circular are not attained or when the use of the THA by truckers/ 

drivers has been abused in violations of this Circular. 

9. CHANGE/MODIFICATION 

In the course of its implementation, these Guidelines shall be subject to periodic review 

and necessary changes or modifications shall be effected by PMO-South Harbor after 

dialogue/consultation with Cargo Handler and concerned sectors of port users in order to 

make its implementation more reasonable/practicable and effective in achieving the objectives 

herein set forth. 

10. REPEALING CLAUSE 

PPA PDO-Manila and PMO-South Harbor issuances, rules or regulations inconsistent 

herewith are hereby repealed or amended accordingly. 

11. EFFECTIVITY 

This Circular shall take effect immediately after fifteen (15) days following its publication 




General Manager

2060 


PUNONGHIMPILAN TANOD BAYBAYIN NG PILIPINAS 


Memorandum Circular No. 01-00 

Port State Control 

I 

Authority 

A. Republic Act (RA) 5173 (Philippine Coast Guard Law) 

B. Presidential Decree (PD) 600 

C. Presidential Decree 602, as amended by Presidential Decree 979 

II 

References: 

A. International Convention for the Safety of Life at Sea (SOLAS), 1974, as amended 

B. International Convention on Load Lines, 1966 

C. International Convention for the Prevention of Pollution from Ships (MARPOL), 1973, as 

amended 

D. International Convention on Standards of Training, Certification and Watchkeeping for 

Seafarers (STCW), 1978, as amended 

E. International Convention on Tonnage Measurement of Ships, 1969 

F. International Maritime Organization (IMO) Resolution A.787 (19) adopted on 23 

November 1995, as amended 

G. Convention on International Regulations for the Prevention of Collision at Sea (COLREGS), 

1972 

H. Convention Number 147 of the International Labor Organization (ILO) 

I. Memorandum of Understanding (MOU) on Port State Control (PSC) in the Asia-Pacific 

Region dated 01 December 1993 

J. Asia-Pacific Region Port State Control Manual Published by the Tokyo MOU Secretariat 

K. Philippine Coast Guard Auxiliary (PCGA) Charter 

III 

Scope 

This Memorandum Circular applies to all foreign-flagged vessels engaged in the international 

trade calling at any port of the Republic of the Philippines. It also covers the appointment 

and conduct of PCGA personnel as PSC Associate Members tasked to participate in 

PSC inspections. 

IV 

Objectives: 

A. To rationalize, harmonize, and ensure a more effective implementation of PSC in the 

country.


B. To strengthen the enforcement of PSC function by infusing into the procedures recent 

PSC developments and innovations adopted by the Tokyo MOU on PSC in the Asia-Pacific 

Region. 

V 

Purposes: 

A. This Memorandum-Circular establishes a uniform implementation of the Convention standards 

of foreign-flagged vessels calling at any port of the Republic of the Philippines as 

stipulated in the following relevant instruments: 

1. Resolution A.787(19) adopted by the IMO Assembly on 23 November 1995, 

as amended; 

2. Asia-Pacific Region PSC Manual published by the Tokyo MOU Secretariat; 

and 

3. Other existing international and national laws, rules, and regulations pertain 

ing to safety of life at sea, prevention of pollution of the marine environment, 

minimum standards regarding shipboard conditions of employment and living 

arrangements, social and labor conditions (to include hours of work), and 

minimum safe manning of ships and competency of seafarers. 

B. In reference to the relevant instruments, it likewise prescribes the procedures in the conduct 

of PSC inspections by appointed, authorized and qualified personnel of the Philippine 

Coast Guard (PCG) as well as PSC Associate Members from the Philippine Coast Guard 

Auxiliary (PCGA) subject to certain limitations. 

VI 

Exceptions: 

This Memorandum-Circular does not apply to the following: 

A. Ships of war, troopships, and Government vessels not engaged in trade 

B. Ships not propelled by mechanical means 

C. Wooden ships of primitive build 

D. Pleasure yachts not engaged in trade 

E. Fishing vessels 

VII 

Definition of Terms: 

A. Port State Control. Measure adopted by a port State to ensure that foreign-flag vessels 

visiting its ports possess the relevant certificates and documents required by the Conventions 

and that the crew and the overall condition of the ship, its equipment, machinery spaces 

and accommodation, and hygienic conditions on board, meets the provisions of the relevant 

instruments. 

B. Port State. The State whose port or offshore installation is visited by a ship flying the flag 

of another State for the purpose of trade.

2062 


C. Party. A State that has adopted a Convention through ratification or accession hence, the 

provisions of that Convention are applicable to ships carrying the flag of that State. 

D. Authority. The Agency duly empowered by the port State to enforce and implement PSC 

functions. In the Philippines, the Philippine Coast Guard is the PSC Authority. 

E. Clear grounds. Evidence that the ship, its equipment or its crew do not correspond substantially 

with the requirements of the relevant Conventions or that the Master or crew are 

not familiar with essential shipboard procedures relating to the safety of ships or the prevention 

of pollution. 

F. Deficiency. A condition found not to be in compliance with the requirements of the relevant 

Convention or Code. 

G. Detention. Intervention taken by the port State when the condition of the ship or its crew 

does not correspond substantially with the applicable Conventions or Codes to ensure 

that the ship will not sail until it can proceed to sea without presenting a danger to the ship 

or persons on board, or without presenting an unreasonable threat or harm to the marine 

environment. 

H. More detailed inspection. An inspection conducted when there are ìclear groundsî for 

believing that the condition of the ship, its equipment, or its crew does not correspond substantially 

with the particulars of the certificates. 

I. Stoppage of an operation. Formal prohibition against a ship to continue an operation due 

to an identified deficiency(ies), singly or together, render the continuation of such operation 

hazardous. 

J. Sub-standard ship. A ship whose hull, machinery, equipment or operational safety is 

substantially below the standards required by the relevant Convention or whose crew is not 

in conformance with the safe manning document. 

K. Valid certificate. A certificate that has been issued directly by a Party to a relevant Convention 

or on its behalf by a recognized organization after survey to a ship, which satisfies 

the requirements of the relevant Conventions governing its construction and operation. 

L. Recognized organization. An organization that meets the relevant conditions set forth by 

IMO Resolution A.739(18) duly authorized by a flag State Administration through delegation 

to provide the necessary statutory services and certification to ships entitled to fly the flag of 

the Administration. 

M. Asia-Pacific Computerized Information System (APCIS). A system established for the 

purpose of exchanging information on port State inspections, in order to: 

1. Make available to Authorities information on inspections of ships in other 

regional ports to assist them in their selection of foreign flag ships to be inspected 

and their exercise of port State control on selected ships. 

2. Provide effective information exchange facilities regarding port State control 

in the region. 

5


N. Virtual National Center (VNC) Philippines. Repository of PSC reports submitted by PCG 

PSC units, which is activated in the Asia-Pacific Computerized Information System (APCIS) 

database. Only PCG units can access this with strict observance of log-in name and password 

confidentiality. The communications flowchart for reporting to the VNC is set out in 

Annex 1. 

O. Associate Member, Philippine Coast Guard Auxiliary (PCGA) personnel duly designated 

and appointed as part of PSC Team to perform PSC inspections, subject to certain limitations. 

VIII 


A. RA 5173 vested the PCG with the authority to conduct vessel inspections including all 

foreign-flagged vessels for the promotion of safety of life and property at sea, control and 

prevention of marine pollution and verification of compliance with the minimum standards of 

training and social condition of officers and crew on board the ships. 

B. PSC inspections shall be undertaken on the basis of: 

1. the initiative of the Party (through the PCG as the PSC Authority); 

2. the request of, or on the basis of, information regarding a ship provided by 

another Party to a relevant Convention; and, 

3. information regarding a ship provided by a member of the crew, a professional 

body, an association, a trade union or any other individual with an interest in 

the safety of the ship, its crew and passengers, or in the protection of the 

marine environment. 

C. Port State Control shall be carried out by qualified PCG personnel duly appointed by the 

Commandant, PCG (through issuance of HPCG orders) as Port State Control Officers 

(PSCOs) and those from the PCGA who are given appointments in the PCG as Associate 

Members, subject to certain limitations. PCG personnel shall be initially assessed and issued 

appointment orders by District Commanders prior to their endorsement to CPCG for 

confirmation and issuance of CPCG appointment orders as PSC inspectors. PCGA Associate 

Member appointment shall also be covered by HPCG orders. In carrying out PSC functions, 

both PSCOs and Associate Members should be conversant with the guidelines set 

forth in this Memorandum-Circular, the current Asia-Pacific Region PSC Manual, IMO and 

ILO Conventions, and other relevant instruments. 

D. PCGA Squadron Commanders shall nominate to the PCG District Commanders PCGA 

personnel to be appointed as PSC Associate Members. The nomination form shall be in 

accordance with Annex 2, which shall be filled out by each nominee and properly endorsed 

by the PCGA Squadron Commander. PCG District Commanders shall collect and collate all 

nominations and forward them to the Commandant, PCG (Attention: CG-8). 

E. A PCGA Associate Members Selection Board (hereinafter referred to as the Board) is 

hereby created at HPCG composed and designated as follows:

2064 


POSITION DESIGNATION 

PCGA National Director Chairman 

Superintendent, CGTC Vice-Chairman 

AC of S, CG-8 Member 

AC of S, CG-9 Member 

Deputy AC of S, CG-8 Member/Recorder 

F. The Board shall deliberate on the nominations forwarded by PCG District Commanders. 

They shall select the most qualified PCGA personnel and recommend to the Commandant, 

PCG their appointment as Associate Members in the appropriate PSC Centers and Divisions. 

In their deliberations, the Board should be guided by Chapter 2.5: ìQualification and 

Training Requirements of PSCOsî of IMO Resolution A.787 (19), which provides the following: 

1. The PSCO should be an experienced officer qualified as flag State surveyor. 

2. The PSCO should be able to communicate in English with the key crew. 

3. Training should be provided for PSCOs to give the necessary knowledge of 

the provisions of the applicable Conventions, which are relevant to the con 

duct of port State Control, taking into account the latest IMO Model Courses 

for port State Control. 

4. In specifying the qualifications and training requirements for PSCOs, the 

Administration should take into account, as appropriate, which of the 

internationally agreed instruments are relevant for the control by the port State 

and the variety of types of ships, which may enter its ports. 

5. PSCOs carrying out inspections of operational requirements should be 

qualified as: a Master or Chief Engineer and have appropriate seagoing 

experience, or have qualifications from an institution recognized by the 

Administration in a maritime related field and have specialized training to 

ensure adequate competence and skill, or be a qualified officer of the 

Administration with an equivalent level of experience and training, for 

performing inspections of the relevant operational requirements. 

6. Periodical seminars for PSCOs should be held in order to update their 

knowledge with respect to instruments related to port State control. 

G. In addition, the Board should ensure that the nominated Associate Members have no 

commercial interest, either in the port of inspection or in the ships inspected. 

H. A contract of undertaking in accordance with Annex 3 should be executed by individual 

PCGA personnel upon approval by CPCG (through the recommendation of the Board) of 

their nomination as PSC Associate Members in the appropriate PSC Centers and Divisions. 

The duly signed contract of undertaking shall be forwarded by District Commanders to HPCG 

for the endorsement of CG-8 for the issuance of appointment orders by the Coast Guard 

Adjutant (CGA), in coordination with CG-1. 

I. PSC Associate Members from PCGA shall perform PSC functions under the direct authority 

of the PSC Center or Division Commander where they are appointed. Their participation 

in this activity is governed particularly by the guidelines set forth in the contract of undertaking 

and this Memorandum Circular.


IX 

Procedures: 

A. PSC Centers and Divisions in each international port shall coordinate with the local port 

authority/operator for the availability of a copy of the daily or weekly shipping schedule (whichever 

is applicable). 

B. At the earliest possible opportunity, PSCOs/Associate Members (hereinafter referred to 

as PSC team) should ascertain the year of build and size of the ship to be inspected for the 

purpose of determining which provisions of the Conventions are applicable. Before boarding, 

the PSC Team should check the condition of the mooring lines, gangway arrangements, 

general condition of the hull and if the load line is properly marked on the shipís sides. 

C. Upon boarding, the PSC Team should notify the Master, or in his absence, the senior 

deck officer on board on the purpose of the visit. Then the PSC Team should seek information 

as to when the last PSC inspection of the ship took place and if undertaken within the 

last six months, ask to see the report of that inspection. If the report was satisfactory, no 

further action should be taken. If the report showed some deficiencies, the inspection should 

normally be confined to checking that appropriate actions have been taken on the deficiencies 

noted in the previous inspection. 

D. As warranted, no further action shall be taken if the previous deficiencies have been 

rectified. In both cases, the PSC Team shall depart without delay. If, however, the previous 

deficiencies remain uncorrected, the PSC Team shall take note of the deficiencies and proceed 

with its inspection, furnishing the port State that conducted the previous PSC inspection 

a copy of the new Report of Inspection (Annex 4.1 - Form A and Annex 4.2 - Form B). 

Use of the APCIS is encouraged to facilitate this process. 

E. If the ship has not undergone an inspection within the last six months, the PSC Team 

should proceed in verifying all the required certificates/documents and in the conduct of a 

cursory inspection as warranted. If the inspection is satisfactory, the appropriate form (Form 

A) shall be filled up. After furnishing the Master or senior officer on board a copy of the 

inspection report, the PSC Team should depart without delay. 

F. If the ship does not carry valid certificates, or if the PSC Team, from general impressions 

or observations on board, has ìclear groundsî for believing that the condition of the ship or 

its equipment does not correspond substantially with the particulars of the certificates, or 

that the Master or crew is not familiar with essential shipboard procedures, a more detailed 

inspection should be carried out as described in Chapter 3 of the Asia-Pacific Region PSC 

Manual and using the applicable provisions of the check-list for PSC inspections set forth in 

Annex 5. Forms A and B shall be accomplished. The PSC Team shall likewise advise the 

Master, local agent, local Classification Society representative and the local flag State representative 

(Consul), wherever possible, of the impending detailed inspection and the result 

thereof, copy furnished the concerned District/Station Commanders and CPCG (Attention: 

AC of S, CG-8/Dir, CGOC). 

G. The PSC Team shall require the deficiencies to be corrected before a specified time and 

impose operational restrictions in the interim or continuously detain the ship until the major 

deficiencies are corrected. If minor deficiencies are found but are deemed not to endanger 

the ship, the people on board and the environment such that she may be allowed to proceed

2066 


to the next port of call, the PSC Team shall inform the port State next to be visited by the ship 

using the form in Annex 6. A copy of the form shall also be forwarded to the District/Station 

Commanders concerned and the CPCG (Attention: AC of S, CG-8) when there is failure in 

posting of same at the VNC Philippines. 

H. Guidelines for the detention of ships are as follows: 

1. When deciding whether the deficiencies found in a ship are sufficiently serious 

to merit detention, the PSC Team should assess whether: 

a. the ship has valid documentation; and 

b. the ship has the crew required in the minimum Safe Manning Document. 

2. During the inspection, the PSC Team should further assess whether the ship 

and/or crew, throughout its forthcoming voyage, will be able to: 

a. navigate safely; 

b. safely handle, carry and monitor the condition of the cargo; 

c. operate the engine room safely; 

d. maintain proper propulsion and steering; 

e. fight fires effectively in any part of the ship if necessary; 

f. abandon ship speedily and safely, and effect rescue if necessary; 

g. prevent pollution of the environment; 

h. maintain adequate stability; 

i. maintain adequate watertight integrity; 

j. communicate in distress situations if necessary; and 

k. provide safe and healthy conditions on board. 

3. If the result of any of these assessments is negative taking into account all 

deficiencies found, the ship should be strongly recommended for detention. A 

combination of deficiencies of a less serious nature may also warrant the 

detention of the ship. 

4. Further to the above, listed hereunder are the additional guidelines for 

detentions: 

a. length and nature of the intended voyage or service; 

b. whether or not the deficiency poses a danger to the ship, persons on board, 

or the marine environment; 

c. whether or not appropriate rest periods of the crew can be observed; 

d. size and type of ship and equipment provided; and, 

e. nature of cargo. 

I. The PSC Center/Division shall coordinate with the Philippine Ports Authority (PPA) for the 

latter to hold the departure of a detained vessel until the PSC Center/Division Commander 

duly clears that vessel. 

J. In cases of ships carrying dangerous goods, the PSC Team may require the inspection of 

the following, pursuant to Regulation VII/5, SOLAS 74/78, as applicable:


1. A special list of dangerous and hazardous cargo manifest setting forth the 

dangerous goods on board and the location thereof. 

2. A detailed stowage plan, which identifies the cargoes by class and sets out the 

location of all dangerous goods on board. 

The absence of either of these documents will be a sufficient reason for the PSC Team 

to hold the vessel until they are both submitted accordingly. 

K. After the PSC inspections, the Master of the vessel inspected shall be required to 

accomplish the Certificate of Orderly Inspection (Annex 7 - Form D). This will be followed by 

the proper and courteous departure of the PSC Team. 

L. Re-inspection of vessels detained by a PSC Center/Division shall be conducted on the 

date and time requested in writing by the vesselís owner, his authorized agent or the vesselís 

Master for verification of the rectification of deficiencies found during the PSC inspections. 

No re-inspection fee shall be collected. 

X 

Responsibilities 

A. The Commanders of Coast Guard Districts shall be responsible for the implementation of 

this Memorandum-Circular and shall ensure: 

1. Proper coordination and information dissemination, particularly with PPA and 

local shipping agents. 

2. Positive control and supervision over PSC Teams and proper conduct of 

inspections. 

3. Expeditious submission of reports, as required. 

4. Collection and collation of PCGA Associate Member nomination forms and 

their subsequent submission to CPCG (Attn: AC of S, CG-8). 

5. Submission by PSC Centers and Divisions of accomplished PSC forms and 

inspection reports to HPCG (Attention: AC of S, CG-8) if reports have not 

been posted in the Virtual National Center Philippines (APCIS). 

6. Proper maintenance of PSC records aboard District and Station offices. 

7. Initial issuance of District appointment orders for PCG personnel assessed to 

be qualified PSC inspectors, prior to their submission to CPCG (Attn: CG-8) 

for confirmation and issuance of CPCG appointment orders. 

B. The PSC Center/Division Commander shall undertake the following: 

1. Proper coordination and information dissemination, particularly with PPA and 

local shipping agents. 

2. Proper conduct of PSC inspections and accomplishment of required reports 

including those that are required to be posted at VNC Philippines. 

3. Submission of reportorial requirements to CPCG (Attention: AC of S, CG-8) as 

stipulated herein in accordance with para X.A(5). 

4. Forwarding of copies of reports and appropriate notices to the District 

Commander, Master of the vessel, local shipping agent concerned/ownerís 

representative, local Classification Society representative concerned, and 

local office of the flag State whose flag the vessel is entitled to fly (Consul).

2068 


The Coast Guard Operations Center (CGOC) shall likewise be furnished 

copies of PSC reports in cases of vessel detentions in accordance with HPCG 

SOP No. 01-00 dated 11 February 2000. 

5. Close supervision of PSCOs and Associate Members relative to their conduct, 

competence, and efficiency. 

C. AC of S, CG-8/Director, PSC Central shall undertake the following: 

1. Monitoring of the general conduct of PSC inspections in the country. 

2. Approval and forwarding of relevant PSC reports to the IMO and the Tokyo 

MOU Secretariat including those being sent to the Asia-Pacific Computerized 

Information System (APCIS) database in Vladivostok, Russia. 

3. Maintenance and updating of all PSC records and reports aboard CG-8 

Office. 

4. Maintenance of close coordination with IMO Tokyo MOV Secretariat and other 

members of the Tokyo MOU. 

5. Periodic review of existing PSC regulations and procedures. 

6. Review of qualifications and subsequent endorsement for the confirmation by 

CPCG of appointment orders of qualified PSCOs. 

7. Carefully screen for completeness of entries the Associate Member 

nomination forms submitted by the PCG District Commanders and direct the 

Deputy, CG-8 to prepare the administrative requirements necessary for the 

deliberation of the Board. 

8. Assessment of PCG personnel with District appointment orders as PSC 

inspectors and recommendation for issuance of CPCG appointment order. 

9. Programming of training of PSCOs through the Coast Guard Training Center 

(CGTC) and other local and foreign training centers and agencies, in 

coordination with AC of S, CG-7. Training of Associate Members shall be 

addressed in coordination with the concerned PCGA squadron. 

10. Monitor the status of vessels detained until they are cleared for their next 

voyages. 

XI 

Penalty Clause: 

A. PCG personnel who fail to perform properly their duties and responsibilities as PSCOs 

including, but not limited to, the causation of unreasonable delay to ships inspected, and/or 

those whose actions violate the integrity of an inspection shall be punished in accordance 

with existing applicable regulations. 

B. The appointment orders of PCGA Associate Members found in violation of the relevant 

provisions of this Memorandum-Circular related to their participation in PSC inspections 

including, but not limited to, failure in maintaining the integrity of an inspection, shall be 

immediately terminated without prejudice to filing of appropriate administrative and/or criminal 

charges and the payment of all damages incurred resulting from such violations. Likewise, 

their appointment to the PCGA shall be subjected for review to determine their suitability 

to stay in the service of the PCGA. 

XII 

Rescission Clause:


Memorandum-Circular No. 08-96 dated 18 November 1996 is hereby rescinded. 

XIII 

Effectivity: 

This Memorandum Circular shall take effect fifteen (15) days after its publications in 

the Official Gazette or in a newspaper of general circulation. 


(SGD.) EUCEO E. FAJARDO 

RADM PCG 

SECURITIES AND EXCHANGE COMMISSION 


Ad-Hoc Pre-Need Group Memorandum Circular No. 3 

Moratorium on the Registration/Licensing of 

New Pre-Need Plan Companies 

To open opportunities for small pre-need plan companies to comply with the new paidup 

capital requirement of P100 million and to safeguard the interest of the planholders, the 

Commission has declared a moratorium on the registration/licensing of new pre-need plan 

companies for a period of one year from the effectivity of this circular. All applicant companies 

desiring to act as issuers of pre-need plans are therefore encouraged to buy out or 

invest as a partner in existing pre-need companies which find difficulty in complying with the 

increased paid-up capital of P100 million. 

This circular takes effect immediately. 



(SGD.) LILIA R. BAUTISTA 

Chairman 

óo0oó 

SEC Memorandum Circular No. 14 

Revised Guidelines in the Approval of 

Corporate and Partnership Names

2070 


In implementing Section 18 of the Corporation Code of the Philippines (BP 68), the 

following revised guidelines in the approval of corporate and partnership names are hereby 

adopted for the information and guidance of all concerned: 

1. The corporate name shall contain the word ìCorporationî or its abbreviation ìCorpî. or 

ìIncorporatedî, or ìInc.î 

The partnership name shall contain the word ìCompanyî or ìCo.î For limited partnership, 

the word ìLimitedî or ìLtd.î shall be included. In case of professional partnership, the word 

ìCompanyî need not be used. 

2. Terms descriptive of a business in the name shall be indicative of the primary purpose. If 

there are two (2) descriptive terms, the first shall refer to the primary purpose and the second 

shall refer to one of the secondary purposes. 

3. The name shall not be identical, misleading or confusingly similar to one already registered 

by another corporation or partnership with the Commission or a sole proprietorship 

registered with the Department of Trade and Industry. 

If the proposed name is similar to the name of a registered firm, the proposed name 

must contain at least one distinctive word different from the name of the company already 

registered. 

4. Business or tradename of any firm which is different from its corporate or partnership 

name shall be indicated in the articles of incorporation or partnership of said firm. 

5. Tradename or trademark duly registered with the Intellectual Property Office can not be 

used as part of a corporate or partnership name without the consent of the owner of such 

tradename or trademark. 

6. If the name or surname of a person is used as part of a corporate or partnership name, 

the consent of said person or his heirs must be submitted except if that person is a stockholder, 

member, partner or a declared national hero. If such person can not be identified or 

non-existent, an explanation for the use of such name shall be required. 

7. The meaning of initials in the name shall be disclosed in writing by the registrant. 

8. Name containing a term descriptive of a business different from the business of a registered 

company whose name also bears similar term(s) used by the former may be allowed. 

9. The name should not be patently deceptive, confusing or contrary to existing laws. 

10. The name which contains a word identical to a word in a registered name shall not be 

allowed if such word is coined or already appropriated by a registered firm, regardless of the 

number of the different words in the proposed name, unless there is consent from the registered 

firm or this firm is one of the stockholders or partners of the entity to be registered. 

11. The name of an internationally known foreign corporation or one similar to it may not be 

used by a domestic corporation without the consent of the former.


12. The term ìPhilippinesî when used as part of the name of a subsidiary corporation of a 

foreign corporation shall be in parenthesis: i.e. ì(Philippines)î or ì(Phil.)î. 

13. The following words shall not be used as part of a corporate or partnership names: 

a. As provided by special laws: 

1. ìFinanceî, ìFinancingî or ìFinance and Investmentî by corporations or partnerships 

not engaged in the financing business (R.A. 5980, as amended) 

2. ìEngineerî, ìEngineeringî or ìArchitectsî as part of the corporate name 

(R.A. 546 and R.A. 1582) 

3. ìBankî , ìBankingî, ìBankerî, ìBuilding and Loan Associationî, ìSavings 

and Loan Associationî, ìTrust Corporationî, ìTrust Companyî or words of similar 

import by corporations or associations not engaged in banking business. (R.A. 

337, as amended) 

4. ìUnited Nationsî in full or abbreviated form can not be part of a corporate or 

partnership name (R.A. 266) 

5. ìBondedî for corporations or partnerships with unlicensed warehouse (RA 

245) 

b. As a matter of policy: 

1. ìInvestment(s)î by corporations or partnerships not organized as investment 

house, investment company or a holding company. 

2. ìNationalî by all stock corporations and partnership. 

3. ìAseanî , ìCalabarzonî and ìPhilippines 2000î. 

14. The name of a dissolved firm shall not be allowed to be used by other firms within three 

(3) years after the approval of the dissolution of the corporation by the Commission, unless 

allowed by the last stockholders representing at least majority of the outstanding capital 

stock of the dissolved firm. 

15. Registrant corporations or partnership shall submit a letter undertaking to change their 

corporate or partnership name in case another person or firm has acquired a prior right to 

the use of the said firm name or the same is deceptively or confusingly similar to one already 

registered unless this undertaking is already included as one of the provisions of the articles 

of incorporation or partnership of the registrant. 

These guidelines shall take effect fifteen (15) days after publication in a newspaper of 


Adopted: 24 Oct. 2000

2072 



(SGD.) LILIA R. BAUTISTA 

Chairperson 

óo0oó 

Implementing Rules and Regulations of the 

Securities Regulation Code 

(Text Available at Office of the National Administrative Register, 

U.P. Law Complex, Diliman, Quezon City) 

(SGD.) LILIA R. BAUSTISTA 

Chairperson 

(SGD.) FE ELOISA C. GLORIA 

Commissioner 

(SGD.) EDIJER A. MARTINEZ 

Commissioner 

(SGD.) JOSELINA J. POBLADOR 

Commissioner 

SUGAR REGULATORY ADMINISTRATION 


Circular Letter No. 5 

1st Quarter Allocation for U.S. Quota Year 2000-2001 

Pursuant to Section 3 of SRA Sugar Order No. 3, Series of 2000-2001, dated 26 September 

2000 and for the purpose of transparency, it is hereby published the list of names of 

sugar exporters with their corresponding verified volumes of ìAî sugar to be exported as 

their allocations for the 1st Quarter shipment for U.S. Quota Year 2000-2001, to wit: 

Name of Exporter Volume of ìAî Sugar (MT) 

1. All Asian Countertrade, Inc. 20,871.74 

2. Amerop Philippines, Inc. 1,634.72 

3. Cagayan Robina Sugar Milling Corp. 87.29 

4. Delmax Trading Corporation 989.03 

5. La Perla Sugar Export Corp. 1,091.33 

6. Southern Negros Development Corp. 190.96 

7. Southwind Sugar Corporation 8,166.54 

8. Universal Robina Sugar Milling Corp. 1,308.73 

TOTAL 34,340.34


All concerned are hereby advised accordingly. 



(SGD.) NICOLAS A. ALONSO 


óo0oó 

Sugar Order No. 3-A 

Addendum to Sugar Order No. 3, s. 2000-2001, 

re: Filing Up of the U.S. Quota Year 2000-2001 

WHEREAS, there is a need to include certain provisions to Sugar Order No. 3, Series 

of 2000-2001, dated 26 September 2000, for expeditious shipment of raw sugar to the United 

States of America. 

NOW, THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory 

Administration (SRA), it is hereby ordered that: 

SECTION 1. Section 3 of Sugar Order No. 3, Series of 2000-2001 shall include the 

following: 

ìSection 3. A Letter of Advice shall be sent to the concerned exporters 

requiring the same to apply with the SRA for export clearances with all the 

requirements attached thereto within five (5) days upon receipt of the said 

advice. 

Failure of the concerned exporters to apply for export clearances within 

the aforementioned period, the SRA shall be constrained to allow the exporters 

of the next quarter to fill up the remaining balance of the current 

quarter on a ìfirst-come, first-servedî basis.î 

SECTION 2. This Order shall take effect immediately. 

SECTION 3. Other provisions of the aforesaid Sugar Order No. 3 shall remain in full 

force and effect. 

SECTION 4. Provisions of Sugar Orders, Circular Letters, Memoranda and/or other 

rules and regulations contrary to or inconsistent with this Sugar Order are hereby amended, 

modified or revoked. 


(SGD.) NICOLAS A. ALONSO 

Administrator

2074 


TARIFF COMMISSION 


Commission Order No. 00-02 

Rules and Regulations to Govern Conduct of Investigation 

by the Tariff Commission Pursuant to Republic Act 8800 

ìAn Act Protecting Local Industries by Providing Safeguard 

Measures to Be Undertaken in Response to Increased 

Imports and Providing Penalties for Violation Thereofî 

Pursuant to RA 8800, the following rules and regulations are hereby promulgated for 

the guidance of all concerned: 

SECTION 1. Commencement of Investigation - Within five (5) working days from 

receipt of the request and records of the case from the Secretary of Trade and Industry or 

Secretary of Agriculture (the ìSecretaryî), the Tariff Commission (ìthe Commissionî) shall 

publish in two newspapers of general circulation the notice of the commencement of the 

formal investigation, and the date, time and place of Preliminary Conference. 

However, when the case is certified urgent by the Secretary, the Commission shall 

commence the formal investigation and publish in two newspapers of general circulation the 

notice of the formal investigation and the date, time and place of the Preliminary Conference 

within three (3) working days from receipt of the request and records of the case from the 

Secretary. 

The Commission shall conduct formal investigation to determine the following: 

1. If the subject domestic product is a like or directly competitive product to the imported 

product under consideration; 

2. If the product is being imported into the Philippines in increased quantities whether absolute 

or relative to the domestic production; 

3. The presence and extent of serious injury or threat thereof to the domestic industry that 

produces like or directly competitive product; 

4. The existence of causal relationship between the increased imports of the product under 

consideration and the serious injury or threat thereof to the domestic industry; 

5. To determine if the proposed adjustment plan shall result to the domestic industry becoming 

more competitive. 

SECTION 2. Nature of Investigation - The investigation of the Commission is factfinding 

and administrative in nature. The formal investigation shall be conducted in a summary 

manner. No dilatory tactics or unnecessary or unjustified delays shall be allowed and 

the technical rules of evidence used in regular court proceedings shall not be applied.


SECTION 3. Notice of Formal Investigation, Preliminary Conference, Public Consultation 

and the Submission of Preliminary Adjustment Plan - Within five (5) working days from 

receipt of the request and records of the case from the Secretary, the Commission shall 

notify in writing all parties on record on the commencement of the formal investigation, requiring 

them to appear at a Preliminary Conference to be set by the Commission within 

seven (7) calendar days on the commencement of the formal investigation, schedule of the 

Public Consultation, submission of Preliminary Adjustment Plan and the Notice of Billing. 


notify in writing the parties of the formal investigation and of the Preliminary Conference 

within three (3) working days from receipt of the request and records of the case from the 

Secretary. 

SECTION 4. Preliminary Conference - At the Preliminary Conference, the following 

issues shall be discussed: schedule(s) and procedures of the Public Consultation, the nature 

of the administrative and fact-finding proceedings, the non-applicability of the technical 

rules of procedures in the Rules of Court, the non-availability of confidential information, 

time frame of the formal investigation, other related matters relative to the speedy disposition 

of the case and the submission of their respective evidence and position papers. 

Following the Preliminary Conference, the Commission shall issue an order covering 

matters taken up. 

SECTION 5. Position Paper - Within fifteen (15) calendar days from receipt of notice of 

the commencement of the formal investigation the parties shall submit to the Commission 

their respective position papers, affidavits of witnesses, all documentary evidence, and 

record and information in support thereof and serve copies to the other parties. 

However, when the case is certified urgent by the Secretary, parties shall submit to the 

Commission their respective position papers, affidavits of witnesses, all documentary evidence 

and records/information in support thereof and serve copies to the other parties within 

seven (7) calendar days from receipt of notice. 

SECTION 6. Verification/Ocular Inspection - Parties who filed a Petition for the application 

of safeguard measures shall, when required, allow the Commission access to necessary 

information to enable the Commission to expedite the investigation. Plant visits or inspections 

may be conducted by the Commission even without the presence of other interested 

parties. 

SECTION 7. Final Adjustment Plan - The Commission, in the course of its investigation 

shall issue appropriate notice to representatives of the concerned domestic industry or 

other parties, to submit their final adjustment plan to import competition within forty-five 

(45) calendar days upon receipt of the notice, except when the Secretary certifies that the 

same is urgent, in which case the adjustment plan must be submitted within thirty (30) calendar 

days. 

If the Commission makes an affirmative determination of injury or threat thereof, individual 

commitments regarding actions such persons and entities intend to take to facilitate 

positive adjustment to import competition shall be submitted to the Commission by any:

2076 


a. Firm in the domestic industry; 

b. Certified or recognized union or group of workers in the domestic industry; 

c. Local community; 

d. Trade association representing the domestic industry; 

e. Other person or group of persons. 

The adjustment plan shall provide a clear quantification of its proposed goals and 

detail the efforts that the domestic industry and other concerned parties will make to place 

the domestic industry in a more competitive position. The goals shall be presented using 

objectively verifiable indicators that will cover the period for which safeguard measures are 

sought. Measures covering more than one year shall include specific efforts to be undertaken 

by the domestic industry for each year of progressive liberalization of the measure. It 

shall likewise include a time frame to enable the Commission to monitor their attainment 

over the specified period. 

SECTION 8. Staff Report - Within sixty (60) calendar days from the receipt of the 

request and the records from the Secretary, the Commission shall prepare and issue a 

public version of the staff report. The staff report shall cover amongst others findings on 

product comparability, volume of increased imports, and any other relevant data and information 

duly verified, documentary submissions made by the parties before the public consultation, 

adjustment plan, linkages/chart, article (s) under consideration and the evaluation 

of the results of the verification/ocular inspection conducted by the Commission. 


prepare and issue a public version of the report within thirty five (35) calendar days from 

receipt of the request and records of the case from the Secretary. 

SECTION 9. Comments on the Staff Report - Within five (5) calendar days from receipt, 

parties are given one opportunity to comment on the staff report particularly on the 

aspects of product comparability and volume of increased imports as these matters will be 

binding and excluded as matters for discussion in the Public Consultation. 

If no comment is filed, then the factual finding on product comparability and volume of 

imports of the Commission contained in the Staff Report will be binding to the party who did 

not submit its Comment. 

SECTION 10. Public Consultation - The Commission, after due notification, shall conduct 

marathon Public Consultation to give all interested parties affected and such other 

interested parties as consumers that in the judgment of the Commission are entitled to 

attend, an opportunity to be heard and to present evidence including the opportunity to 

respond to the presentations of other parties and to submit their views, inter alia, as to 

whether or not the application of a safeguard measure would be in the public interest. Public 

Consultation once commenced shall continue daily with morning and afternoon sessions if 

necessary. Five (5) calendar days before the Consultation, the parties are required to submit 

to the Commission a list of issues they wanted explored in the Public Consultation other 

than the issues on product comparability and volume of increased importation, which will be 

excluded in the coverage of the matters for discussion in the Public Consultation. 

SECTION 11. Procedure of Public Consultation - All interested parties may appear at 

the Public Consultation and present, under oath further evidence relevant and material to


the subject matter of the investigation except those matters included in the staff report. The 

order of the Consultation shall be: 

a. Clarificatory questions to be propounded by the Respondent. 

b. Petitioner may answer the clarificatory questions of the Respondent. 

c. Clarificatory questions to be propounded by the Petitioner to the Respondent; and 

d. Respondent may answer the clarificatory questions of the Petitioner. 

As a rule, the Presiding Officer shall propound clarificatory questions. Questions of the 

parties shall be referred to the Presiding Officer. However, in the interest of expediency and 

for the purpose of drawing out direct response to the clarificatory questions by a party, the 

Presiding Officer may allow the parties to propound their questions directly to the opposing 

parties. 

The process of clarificatory questioning shall not be unlimited. Irrelevant, repetitious, 

misleading, speculative or personal questions shall not be allowed. The presiding officer 

may control the protracted questioning for the purpose of conserving the time of the Commission 

and of protecting the party from prolonged and needless examination. Unreasonably 

lengthy questioning on matters, e.g., testing the credibility of the witness, bias, relation, 

and the like, shall be discouraged. 

A party while answering question shall not be interrupted but may ask clarificatory 

questions by the Presiding Officer. After a party has given his testimony, he may be asked 

by the Presiding Officer and/or opposing party after being recognized by the Presiding Officer. 

No observer may participate in the proceedings unless recognized by the Presiding 

Officer and after informing the latter of his interest in the proceedings and of his willingness 

to answer questions. Refusal to answer questions will disqualify him/her from further participation 

in the proceedings. 

Pending investigation and evaluation of the case, the parties are enjoined from discussing 

with the public the merits of the case. 

At the first day of Public Consultation, all the principal parties, counsels, affiants, 

deponents and other interested parties are required to appear before the Commission. 

SECTION 12. Methods of Obtaining Information - The Commission may, in addition 

to the pertinent records and/or documents forwarded by the Secretary and the information 

and/or submissions by the parties, request information, views, and recommendations from 

other sources and any government offices, such as: the Department of Finance and its Bureau 

of Customs, Department of Agriculture, Department of Environment and Natural Resources, 

the Department of Trade and Industry and its Bureau of Import Services and Bureau of International 

Trade Relations, the Bangko Sentral ng Pilipinas, the Department of Foreign Affairs, the 

Board of Investments, National Statistics Office, Securities and Exchange Commission, or 

any other instrumentality concerned with the subject matter of the investigation. 

The Commission shall require any interested party to allow the Commission access to 

its records, etc., or otherwise provide necessary information to enable the Commission to 

acquire sufficient data and information to support its findings.

2078 


The Commission may also send correspondence to other interested parties, domestic 

and foreign, conduct an ocular inspection, examine and/or verify books of accounts/records 

and financial statements, and hold conferences and consultations with the producers, traders, 

representatives of labor, and consumers. 

SECTION 13. Inspection of Evidence - Any interested party shall, when required, allow 

the Commission access to necessary information otherwise provide the necessary information 

to enable the Commission to expedite the investigation. 

The Commission shall make available for inspection by interested parties copies of all 

evidence submitted. Any information which is by nature confidential or which is provided on 

a confidential basis, shall upon cause being shown, not be disclosed without the permission 

of the party submitting it. Parties providing confidential information may be requested to 

furnish non-confidential summaries thereof or if such parties indicate that such information 

cannot be summarized, the reasons why a summary cannot be provided. If the Commission 

finds that a request for confidentiality is not warranted and the supplier of the information is 

either unwilling to make the information public or to authorize its disclosure in generalized or 

summary form, the Commission may disregard such information unless it can be demonstrated 

to the Commissionís satisfaction from appropriate sources that the information is 

correct. 

SECTION 14. Disclosure of Confidential Information - Prior to or at the commencement 

of the Public Consultation, the Commission may, upon request, make available for 

examination and reproduction, to each party or the partyís counsel all relevant information in 

its custody that were not considered confidential. Where the Commission, however, decides 

not to allow access to these information on the basis of confidentiality, the opposing counsel 

or party shall not be given copy or examine any of these information or portion thereof 

except the non-confidential summary or version provided in the preceding paragraph. 

SECTION 15. Public Notices - Written notice of the assumption of formal investigation, 

schedule of Preliminary Conference and the Public Consultation by the Commission shall 

be posted on the Bulletin Board of the Commission and shall be published in two (2) newspapers 

of general circulation in the Philippines at the expense of the Petitioner. It shall contain 

the name of the Petitioner, nature of the petition, trade/commodity classification and/or 

description of the article involved, HS heading number and rate of duty, and the time, date 

and place of the consultation including a concise summary of the petition. Copies of such 

notice shall be furnished the Petitioner(s), Respondent(s), trade and commercial organizations, 

and government agencies or entities concerned as identified by the Secretary. The 

Commission may use personal service, fax, telegram, electronic mail and ordinary mail in 

serving parties of its notices, pleadings, decisions, orders and resolutions. 

The Commission, after submitting its report to the Secretary under Section 21, shall 

make it available to the public except those confidential information and publish a summary 

in two (2) newspaper of general circulation. 

SECTION 16. Mode of Service - Only personal or special courier service of pleadings, 

(i.e. position paper, memoranda, motions, manifestations, etc.) and notices between the 

parties and from the parties to the Commission in Metro Manila shall be allowed.


Parties, if they agree, may make service by fax or electronic mail (e-mail) in which 

case the date of the transmission shall be deemed to be the date of service. In case voluminous 

pleadings or documents and/or numerous parties, the Commission, upon proper motion, 

may waive the requirement of service, provided a copy together with its annexes is filed 

with the Commission and is made available for examination and reproduction and the notice 

of such filing and availability is duly served on the parties by the party filing it. 

SECTION 17. Determination of Serious Injury or Threat thereof - The Commission in 

determining that the increase in importation of the product under consideration is causing 

serious injury or threat thereof to a domestic industry producing like products or directly 

competitive products, the following relevant factors shall be evaluated: 

1. The rate and amount of the increase in imports of the products concerned in absolute 

and relative terms; 

2. The share of the domestic market taken by the increased imports; 

3. Changes in the level sales, production, productivity, capacity utilization, profits and losses, 

and employment. 

The Commission shall evaluate information on injury and increased imports covering 

the previous five (5) year period prior to the submission of the application. If the submission 

was made in the second semester of the current year, the information shall cover the previous 

five (5) years and the period of the current year for which statistical information is available, 

provided, however, in some cases, the period may be adjusted to cover a shorter 

period in order to take into account other considerations that will ensure the appropriateness 

of the chosen period, e.g. seasonality of the product, availability of data. 

The Commission in the determination of serious injury, shall take into account all relevant 

economic factors, including but not limited to the following: 

1. Significant idling of productive facilities in the domestic industry including the closure of 

plants or underutilization of production capacity; 

2. Inability of a significant number of firms to carry out domestic production at a profit; and 

3. Significant unemployment or underemployment within the domestic industry. 

A determination of threat of serious injury shall be based on facts and not merely on 

allegations, conjectures or remote possibilities, and shall consider the following: 

1. Significant rate of increase in imports into the Philippines indicating the likelihood of substantially 

increased importation, evidenced inter alia by the existence of letters of credit, 

supply or sales contract, the award of a tender, an irrevocable offer or other similar 

contracts; 

2. Sufficient freely disposable, or an imminent, substantial increase in, production capacity 

of the foreign exporters including access conditions they face in third country markets, indicating 

the likelihood of substantially increased exports to the Philippines;

2080 


3. Decline in sales or market share, and downward trend in production, profits, wages, productivity 

or employment (or increasing underemployment) in the domestic industry and its 

inability to generate capital for modernization or maintain existing levels of expenditures for 

research and development; and 

4. Growing inventories of the product being investigated whether maintained by Philippine 

producers, importers, wholesalers or retailers. 

5. In making determination with respect to substantial cause, the Commission shall take into 

account the effects of the increased imports on the economic factors and indices relating to 

the serious injury or threat thereof as supplied by the domestic industry. 

The extent of injury caused by the importation of the products on the domestic industry 

shall be determined by the Commission upon examination of all relevant evidence. Such 

determination shall not be made unless the investigation demonstrates, on the basis of 

objective evidence, the existence of the causal link between the increased imports of the 

product under consideration and serious injury or threat thereof to the domestic industry. 

Any known factors, other than the increased importation of the products under consideration, 

which at the same time injure the domestic industry, shall also be examined and the 

injuries caused by these factors must be attributed to the increased importation of the product 

under consideration. 

The effects of the increased imports of the product under consideration shall be assessed 

in relation to the domestic production of the like product or directly competitive product 

by separate identification of that production based on such criteria as production processes, 

sales, and profits. If such is not possible, the effects of the increased imports of the 

product under consideration shall be assessed by the examination of the product of the 

narrowest group or range of products which includes the like or directly competitive product 

for which the necessary information is available. 

SECTION 18. Adoption of Definitive Measures - Upon its positive determination, the 

Commission shall recommend to the Secretary an appropriate definitive measures, in the 

form of: 

a. An increased in, or imposition of, any duty on the imported product; 

b. A decrease in or the imposition of a tariff-rate quota ( MAV) on the product; 

c. A modification or imposition of any quantitative restriction on the importation of the product 

into the Philippines; 

d. One or more appropriate adjustment measures, including the provision of trade adjustment 

assistance; 

e. Any combination of actions described in subparagraphs (1) to (5); 

f. Initiation of international negotiations; 

SECTION 19. Duration of the General Safeguard Measure - The Commission in case 

of positive finding shall recommend to the Secretary any form of safeguard measure listed in


the immediately preceding section for a duration not exceeding four (4) years. Such period 

shall include the period, if any, in which a provisional relief was in effect. The Commission 

shall take note that the effective period including any extension thereof may not, in the 

aggregate, exceed ten (10) years. 

SECTION 20. Limitation and Extent of Quantitative Restriction as a Safeguard Measure 

- The general safeguard measure shall be limited to the extent of redressing or preventing 

the injury and to facilitate adjustment by the domestic industry from the adverse effects 

directly attributable to the increased imports: Provided, however, that when quantitative restrictions 

are used, such measures shall not reduce the quantity of imports below the average 

imports for the three (3) preceding representative years, unless clear justification is 

given that a different level is necessary to prevent or remedy a serious injury. 

SECTION 21. Limitation and Extent of Additional Duty as Safeguard Measure - Any 

additional duty imposed as a safeguard measure may be specific and/or ad valorem which 

shall be in the amount necessary to prevent or redress, or remedy the injury to the domestic 

industry. The definitive measures in the form of tariff increase shall not be subject or limited 

to the maximum levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code 

of the Philippines. 

SECTION 22. Imports from a Developing Country - A general safeguard measure 

shall not be applied to a product originating from a developing country if its share of total 

imports of the product is less than three percent (3%) provided, however, That developing 

countries with less than three percent (3%) share collectively account for not more than nine 

percent (9%) of the total imports. 

SECTION 23. Amended Position Paper - Within ten (10) calendar days from the termination 

of the Public Consultation, parties who earlier submitted their respective Position 

Papers may submit an amended Position Paper to the Commission. 

However, when the case is certified urgent by the Secretary, parties who earlier submitted 

their respective Position Papers may submit an amended Position Paper within five 

(5) calendar days from the termination of the Public Consultation. 

SECTION 24. Submission of Draft Report of Findings for Collegial Deliberation - Within 

twenty (20) calendar days from the last day to submit an Amended Position Paper, a copy of 

the Draft Report of Findings shall be submitted for Collegial Deliberation. 

However, when the case is certified urgent by the Secretary, a copy of the Draft Report 

of Findings shall be submitted for Collegial Deliberation within five (5) calendar days from 

the last day to submit an Amended Position Paper. 

SECTION 25. Report of the Commission - Based on its findings, the Commission shall 

submit to the Secretary within one hundred twenty (120) or sixty (60) calendar days as when 

the case is certified urgent by the Secretary, the following: 

1. The Investigation Report; 

2. The Proposed Recommendations; 

3. A copy of the submitted adjustment plan; and 

4. The commitments made by the domestic industry to facilitate positive adjustment to import 

competition.

2082 


The report shall also include a description of the short and long term effects of the 

affirmative or negative recommendations, as the case may be, on the petitioner, the domestic 

industries, the consumers, the workers, and the communities where production facilities 

of such industry are located; 

The Commission, after submitting the report to the Secretary, shall make it available to 

the public except those confidential information and publish a summary in two (2) newspaper 


SECTION 26. Monitoring of the Domestic Industry - So long as the definitive measure 

is in effect, the Commission shall monitor developments with respect to the domestic industry, 

including the progress and specific efforts made by workers and firms in the domestic 

industry to make a positive adjustment to import competition. 

In case one or more firms of the benefitting industry which applied for safeguard measure 

failed to comply with their commitments reflected in the approved adjustment plan, the 

safeguard measure shall continue in effect, provided however, that the firm(s) which complied 

with their commitment constitute the majority in accordance with the definition of the 

domestic industry under Section 4, paragraph (f) of RA 8800. 

If the initial application of the definitive measure exceeds three (3) years, or if an 

extension of such application exceeds three (3) years, the Commission shall submit to the 

Secretary, a report on the results of the monitoring, not later than the date which is the 

midpoint of the initial period, and each of such extension, during which the action is in effect. 

A safeguard action that has been effective for a period of more than six (6) months 

shall be subject to regular monitoring by the Commission for the purpose of determining 

whether or not the safeguard measure shall be phased-out or reduced depending on showing 

of positive or negative adjustment. 

The Commission, in the preparation of each monitoring report, shall conduct Public 

Consultation at which interested parties shall be given reasonable opportunity to be present, 

to present evidence, and to be heard. 

SECTION 27. Action of the Commission Against Refusal or Failure to Comply of a 

Benefiting Industry of an Approved Adjustment Plan - When the Commission during the 

duration of the safeguard action after investigation and Public Consultation finds that the 

benefiting industry has reneged on its commitment or otherwise failed to show improvements 

or facilitate positive adjustment to import competition within the allowable period following its 

committed time frame and objectively verifiable indicators, it may recommend to the Secretary 

the termination or phase down of the approved safeguard measure. 

SECTION 28. Action of the Commission in Case of a Petition For and Extension or Re- 

Application of Safeguard Measure - The Commission shall submit to the Secretary not later 

than sixty (60) calendar days from its receipt of the request following the procedures laid 

down in Sections 1, 4 and 11. 

SECTION 29. Evaluation of Effectiveness of Action - After termination of the application 

of the definitive measures, the Commission shall evaluate the effectiveness of the actions


taken by the domestic industry in facilitating positive adjustment to import competition in line 

with the agreed commitments laid down in Section 7. 

The Commission shall hold a Public Consultation on the effectiveness of the action at 

which all interested parties shall be afforded opportunity to present evidence or testimony. 

SECTION 30. Counsel of Record - Any party who signs a document filed pursuant to 

these Rules and Regulations on behalf of any party shall be the Counsel of Record for the 

Party and shall continue in that capacity until a change, if any, is made. A party in a proceeding 

may change the partyís counsel of record by serving the Commission a Notice of Change 

of Counsel signed by the new counsel and agreed to by the previous counsel. 

At the Preliminary Conference, parties of records shall notify the Presiding Officer of 

the name and addresses of their respective lead counsel and an alternate/collaborating 

counsel who will take over in the event that the lead counsel of record has indicated that he 

is not available to appear in a scheduled date and/or subsequent hearing/s. 

SECTION 31. Presiding Officer - Public Consultation on the merits shall be presided 

by the Chairman and Member Commissioner/s or by any one of them provided that, only in 

case of mere postponement and/or resetting of scheduled hearing, any of the Directors or 

any senior official of the Commission, upon instruction, may be required to preside. 

SECTION 32. Venue of Public Consultation - Unless otherwise decided by the Commission 

to be held in another place, the public hearing shall be conducted at the Conference 

Room of the Tariff Commission, 5/F Philippine Heart Center Building, East Avenue, Diliman, 

Quezon City. 

SECTION 33. Fees - Pursuant to Executive Order No. 159 and the provisions of Section 

511 of the Tariff and Customs Code, as amended, the Commission shall, for purposes 

of implementing this investigation, collect the following fees and charges: 

a. Cost of Investigation (normal track) ó ó óóóóóóóóóóóóóP10,000.00 

Cost of investigation (fast track) ó ó óóóóóóóóóóóóóP20,000.00 

b. Photocopy of other documents (excluding transcript 

stenographic notes) per page óó--óóóóóóóóóóóóP 2.00 

The cost of publication, which covers the following notices, to wit: (a) Initiation of formal 

investigation (b) Preliminary Conference and the (c) Public Consultation shall be at the expense 

of Petitioner. 

Non-payment of the cost of investigation and cost of publication within five (5) calendar 

days from notice of billing is an indication that the protestant is not serious in pursuing the 

formal investigation and as such may cause the suspension of the formal investigation and 

the running of the time for the Commission to complete its formal investigation. 

SECTION 34. Transcript of the Proceedings - In all proceedings before the Commission, 

it shall be the duty of the Commissionís stenographer to take down all notes in the 

proceedings; and immediately, thereafter, shall transcribe thereof and file the same with the

2084 


records of the case, duly certified, initialed on each page and signed on the last page. It shall 

be made available to all interested parties for a fee. 

SECTION 35. Effectivity - The foregoing Rules and Regulations shall take effect immediately 

from the date of filing of three (3) certified copies thereof with the University of the 

Philippines Law Center, Diliman, Quezon City. 

Adopted: 22 November 2000 

(SGD.) EMMANUEL T. VELASCO, PH.D. 

Chairman 

TRAFFIC MANAGEMENT GROUP 


Executive Summary 

P150.00 Fee for the ìClearance/Permit to Assembleî 

This pertains to the letter from PDG Panfilo M. Lacson, Chief, PNP recommending the 

implementation of Section 10 RA 6539 and the approval of the P150.00 fee for the ìClearance 

/Permit to Assembleî to be imposed by the Traffic Management Group (TMG), PNP. 

Attached is the Revised Rates of Fees for Motor Vehicle Clearance for the Secretaryís 

signature. 

Revised Rates of Fees for Motor Vehicle Clearance 

Purpose New Rate 

Vehicle Clearance 

a. New Registration/Imported/Rebuilt P200.00 

b. New Registration for Motor Cycle P100.00 

c. Record Check P100.00 

d. Shipment/for MC P100.00/P50.00 

e. Change Chassis P100.00 

f. Change Body Design P100.00 

g. Transfer of Ownership P100.00 

h. Change Engine P100.00 

i. Change Color P100.00 

j. Permit to Assemble P150.00 

MacroEtching P100.00


Prepared by: Recommend Approval: 

RENATO M. PAREDES PANFILO M. LACSON 

Police Chief Superintendent Police Director General 

Director, TMG Chief, PNP 


1. References: 

Approved by: 

ALFREDO S. LIM 

Secretary, DILG 

óo0oó 

Memorandum 

ìPermit to Assembleî to be Issued by TMG as a Mandatory 

Requirement Prior to the Assembly of Motor Vehicle 

a. RA 6539 (Anti-Carnapping Act of 1972) 

b. Approved New Rate of Fees for Motor Vehicle Clearance Certificate. 

c. SOP#2 Streamlining the PNP Motor Vehicle Clearance Procedure. 

2. ICOW the above references this office is recommending the implementation of Section 10 

RA 6539. 

3. Attached hereto is the Memo addressed to the C, PNP stating among others the interpretation 

of the provisions of Section 10 RA 6539 in contrast to the provisions of Section 6 of the 

same Special Law. Such Memo also includes our recommendation as to the amendment of 

the new Rates of Fees of MVCC in order to include the P150.00 payment for the Permit to 

Assemble. 

4. Request signature on the attached Memo for C, PNP and the Revised Rates of Fees. 


Attachments: 

(SGD.) JOSE ERWIN T. VILLACORTE 

Police Superintendent (DSC) 

C, MVCO 

Memorandum 

Permit to Assemble to be Issued by TMG as a 

Mandatory Requirement Prior to Assembly of Motor Vehicle

2086 

1. References: 


a) RA 6539 (Anti-Carnapping Act of 1972) (Annex ìAî) 

b) Approved New Rates of Fees for Motor Vehicle Clearance Certificate (Annex ìBî) 

c) SOP#2 Streamlining the PNP Motor Vehicle Clearance Procedure (Annex ìCî) 

2. Section 10 of RA 6539 provides in part: 

ëSec.10 Clearance and permit required for assembly or rebuilding of motor 

vehicles - Any person who shall undertake to assemble or rebuild or cause the 

assembly or rebuilding of a motor vehicle shall first secure a certificate of clearance 

from the Philippine Constabulary: Provided, that no such permit shall be 

issued unless the applicant shall present a statement under oath containing the 

type, make and serial numbers of the engine and chassis and body, if any, and 

the complete list of the spare parts of the motor vehicle to be assembled or rebuilt 

together with the names and addresses of the sources thereof. xxxí (Underscoring 

supplied for emphasis) 

The above quoted provision intends to establish a requirement prior to the assembly 

or rebuild of a motor vehicle, specifically, it requires any person to secure 

first a certificate of clearance from the Philippine Constabulary (PC). It appears 

that this provision of the law has not yet been enforced, and the need for its 

implementation is now paramount. It is anticipated with optimism that its implementation 

will be an effective deterrent to the use of motor vehicle spare parts 

from illegal sources, such as that coming from carnapped motor vehicles. 

3. In order to obviate resistance and misunderstanding from the public, it is better to explain 

that Section 10 is different from Section 6 of the same law (RA 6539). Section 6 provides in 

part as follows: 

ëSec. 6. Original Registration of motor vehicles - Any person seeking the original 

registration of a motor vehicle, whether that motor vehicle is newly assembled or 

rebuilt or acquired from a registered owner, shall within one week after the completion 

of the assembly or rebuilding job or the acquisition thereof from the registered 

owner, apply to the Philippine Constabulary for clearance of the motor vehicle 

for registration with the Land Transportation Commission.xxxí. 

Comparatively, the provision of Section 6 is a requirement for the original registration 

of the motor vehicle after the assembly. The said provision is being enforced ever since, 

and that the detail of its implementation can be found in SOP#2 issued by the Director, TMG 

on October 28, 1997 (Annex ìCî). Section 10 is a requirement to secure a clearance before 

the assembly or rebuild of the motor vehicle. Apparently, the provisions are complimentary 

and intended to further restrict assembly or rebuild of motor vehicle as a deterrent factor to 

carnapping activities. 

4. In view of the foregoing, TMG recommends the implementation of Section 10, Republic 

Act 6539 by way of establishing a requirement for a clearance/permit to assemble 

prior to the assembly or rebuilding of motor vehicle and that a corresponding fee of P150.00 

be charged for the issuance of such permit.


5. It is further recommended that the Revised Rates of Fees for Motor Vehicle Clearance 

be amended in order to include the payment for ìPermit to Assembleî and that prior to 

its implementation, the guidelines provided in Chapter 2 (Rules and Regulations, Sec. 3 of 

Book VII of the Administrative Procedure). (Administrative Code of 1987/copy attached as 

Annex ìDî) be properly observed.î 

6. Request signature of C, PNP recommending the approval to the Hon. Secretary, 

DILG of paragraphs 4 and 5 of this memorandum.î 


(SGD.) RENATO M. PAREDES 

Police Chief Superintendent 

Director 

Annex ìAî 

(R.A. No. 6539, as amended) An Act Preventing and Penalizing Carnapping 

SECTION 1. This Act shall be known and may be cited as the ìAnti-Carnapping Act of 

1972.î 

SECTION 2. Definition of Terms - The terms ìCarnappingî, ìMotor Vehicleî, ìDefacing 

or Tampering with,î ìrepaintingî, ìbody-buildingî, ìremodellingî, ìdismantlingî, and ìoverhaulingî 

as used in this Act, shall be understood, respectively, to mean ó 

ìCarnappingî is taking, with intent to gain, of a motor vehicle belonging to another 

without the latterís consent, or by means of violence against or intimidation of persons or by 

using force upon things. 

ìMotor Vehicleî is any vehicle propelled by any power other than muscular power 

using the public highways, but excepting road rollers, trolley cars, streets-sweepers, sprinklers, 

lawn movers, bulldozers, graders, fork-lifts, amphibian trucks, and cranes if not used 

on public highways, vehicles, which run only on rails or tracts, and tractors, trailers and 

reaction engines of all kinds used exclusively for agricultural purposes. Trailers having any 

number of wheels, when propelled or intended to be propelled by attachment to a motor 

vehicle, shall be classified as separate motor vehicle with no power rating. 

ìDefacing or tampering withî a serial number is the erasing, scratching, altering or 

changing of the original factory-inscribed serial number on the motor vehicle engine, engine 

block or chassis of any motor vehicle. Whenever any motor vehicle is found to have a serial 

number on its motor engine, engine block or chassis which is different from that which is 

listed in the records of the Bureau of Customs for motor vehicles imported into the Philippines, 

that motor vehicle shall be considered to have a defaced or tampered serial number. 

ìRepaintingî is changing the color of a motor vehicle by means of painting. There is 

repainting whenever the new color of a motor vehicle is different from its color as registered 

in the Land Transportation Commission.

2088 


ìBody-buildingî is a job undertaken on a motor vehicle in order to replace its entire 

body with a new body. 

ìRemodellingî is the introduction of some changes in the shape or form of the body 

of the motor vehicle.î 

ìDismantlingî is the tearing apart, piece by piece or part by part, of motor vehicle. 

ìOverhaulingî is the cleaning or repairing of the whole engine of a motor vehicle by 

separating the motor engine and its parts from the body of the motor vehicle. 

SECTION 3. Registration of motor vehicle engine, engine block and chassis - Within 

one year after the approval of this Act, every owner or possessor of unregistered motor 

vehicle or parts thereof in knock down condition shall register with the Land Transportation 

Commission the motor vehicle engine, engine block and chassis in his name or in the name 

of the real owner who shall be readily available to answer any claim over the registered 

motor vehicle engine, engine block and chassis. Thereafter, all motor vehicle engines, engine 

blocks and chassis not registered with the Land Transportation Commission shall be 

considered as untaxed importation or coming from an illegal source or carnapped, and shall 

be confiscated in favor of the Government. 

All owners of motor vehicles in all cities and municipalities are required to register their 

cars with the local police without paying any charges. 

SECTION 4. Permanent registry of motor vehicle engines, engine blocks and chassis 

- The Land Transportation Commission shall keep a permanent registry of motor vehicles, 

specifying therein their type, make and serial numbers and stating therein the names and 

addresses of their present and previous owners. Copies of the registry and of all entries 

made thereon shall be furnished by the Philippine Constabulary and all Land Transportation 

Commission regional, provincial and city branch offices: Provided, that all Land Transportation 

Commission regional, provincial and city branch offices are likewise obliged to furnish copies 

of all registrations of motor vehicles to the main office and to the Philippine Constabulary. 

SECTION 5. Registration of sale, transfer, conveyance, substitution or replacement of 

a motor vehicle engine, engine block or chassis - Every sale, transfer, conveyance, substitution 

or replacement of a motor vehicle engine, engine block or chassis of a motor vehicle 

shall be registered with the Land Transportation Commission. Motor vehicles assembled 

and rebuilt or repaired by replacement with motor vehicle engines, engine blocks and chassis 

not registered with the Land Transportation Commission shall not be issued certificates 

of registration and shall be considered as untaxed imported motor vehicles or motor vehicles 

carnapped or proceeding from illegal sources. 

SECTION 6. Original registration of motor vehicles - Any person seeking the original 

registration of a motor vehicle, whether that motor vehicle is newly assembled or rebuilt or 

acquired from a registered owner, shall within one week after the completion of the assembly 

or rebuilding job or the acquisition thereof from the registered owner, apply to the Philippine 

Constabulary for clearance of the motor vehicle for registration with the Land Transportation 

Commission. The Philippine Constabulary shall, upon receipt of the application, verify if the 

motor vehicle or its numbered parts are in the list of carnapped motor vehicles or stolen 

motor vehicle parts. If the motor vehicle or any of its numbered parts is not in that list the 

Philippine Constabulary shall forthwith issue a certificate of clearance. Upon presentation of


the certificate of clearance from the Philippine Constabulary and after verification of the 

registration of the motor vehicle engine, engine block and chassis in the permanent registry 

of motor vehicle engine, engine block and chassis, the Land Transportation Commission 

shall register the motor vehicle in accordance with the existing laws, rules and regulations. 

SECTION 7. Duty of Collector of Customs to report arrival of imported motor vehicles, 

etc. - The Collector of Customs of a principal port of entry wherein imported motor vehicle, 

motor vehicle engine, engine block, chassis or body is unloaded, shall within seven days 

from the arrival of the imported motor vehicle or any of its parts enumerated herein, make a 

report of the shipment to the Land Transportation Commission, specifying the make, type 

and serial numbers, if any, of the motor vehicle engine, engine block, chassis or body, and 

stating the names and addresses of the owner or consignee thereof. If the motor vehicle 

engine, engine block, chassis or body does not bear any serial number the Collector of 

Customs concerned shall hold the motor vehicle engine, engine block, chassis or body until 

it is numbered by the Land Transportation Commission. 

SECTION 8. Duty of importers, distributors and sellers of motor vehicles to keep 

record of stocks - Any person engaged in the importation, distribution, and buying and selling 

of motor vehicles, motor vehicle engines, engine blocks, chassis or body, shall keep a 

permanent record of his stocks, stating therein their type, make and serial numbers, and the 

names and addresses of the persons from whom they were acquired and the names and 

addresses of the persons to whom they were sold, and shall render an accurate monthly 

report of his transactions in motor vehicles to the Land Registration Commission. 

SECTION 9. Duty of manufacturers of engine blocks, chassis or body to cause numbering 

of engine blocks chassis or body manufacturers - Any person engaged in the manufacture 

of engine blocks, chassis or body shall cause the numbering of every engine block, 

chassis or body manufactured in a convenient and conspicuous part thereof which the Land 

Transportation Commission may direct for the purpose of uniformity and identification of the 

factory and shall submit to the Land Transportation Commission a monthly report of the 

manufacture and sale of engine blocks, chassis or body. 

SECTION 10. Clearance and permit required for assembly or rebuilding of motor vehicles 

- Any person who shall undertake to assemble or rebuild or cause the assembly or 

rebuilding of motor vehicle shall first secure a certificate of clearance from the Philippine 

Constabulary: Provided, that no such permit shall be issued unless the applicant shall present 

a statement under oath containing the type, make and serial numbers of the engine and 

chassis and body, if any, and the complete list of the spare parts of the motor vehicle to be 

assembled or rebuilt together with the names and addresses of the sources thereof. 

In the case of motor vehicle engines to be mounted on motor boats, motor bancas and 

other light water vessels, the applicant shall secure a permit from the Philippine Coast Guard, 

which office shall in turn furnish the Land Transportation Commission the pertinent data 

concerning the motor vehicle engines including their type, make and serial numbers. 

SECTION 11. Clearance required for shipment of motor vehicles, motor vehicle engines, 

engine blocks, chassis or body - Any person who owns and operates inter-island 

shipping or any water transportation with launches, boats, vessels or ships shall within seven 

days submit a report to the Philippine Constabulary on all motor vehicles, motor vehicle

2090 


engines, engine blocks, chassis or bodies transported by it for the motor vehicle, motor vehicle 

engine, engine block, chassis or body to be loaded on board the launch, boat, vessel or ship. 

SECTION 12. Defacing or tampering with serial numbers of motor vehicle engines, 

engine blocks and chassis - It shall be unlawful for any person to deface or otherwise with 

the original or registered serial number of motor vehicle engines, engine blocks and chassis. 

SECTION 12-A. All carnapped or stolen motor vehicle, recovered and impounded by 

law enforcement agencies which after a period of three (3) months from date of its seizure/ 

recovery have remained unclaimed or whose real owners could no longer be determined 

and restored, are considered as abandoned motor vehicles and shall be sold and disposed 

of by the Chief of Constabulary or his authorized representative in a public auction: Provided, 

That, in all cases before any public auction is effected, there shall be published once a 

week for three (3) consecutive weeks in a newspaper of general circulation in the Philippines 

or in the place where it was recovered or found, a description of the vehicles intended to be 

auctioned with a notice that after the lapse of one month from the date of the last publication, 

should no person file a claim for the recovery of the same, said motor vehicles will be sold at 

public auction: Provided, finally, That the date and place of the public auction to be conducted 

by the Chief of Constabulary or his authorized representative shall already be fixed in the 

last publication aforementioned. (As inserted by PD No. 1911, prom. March 23, 1983) 

SECTION 12-B. - After the public auction, the proceeds shall be applied to answer for 

charges including storage and cost of publication and related expenses incurred in connection 

therewith: Provided, That, the remainder, if any shall be retained by the Philippine Constabulary/Integrated 

National Police to be used for the operational expenses of the Anti- 

Carnapping Task Force or any such unit as may hereinafter be created for similar purpose 

for which the Anti-Carnapping Task Force was created. (As inserted by PD No. 1911). 

SECTION 13. Penal Provisions - Any person who violates any provision of this Act 

shall be punished with imprisonment for not less than two years nor more than six years and 

a fine equal in amount to the acquisition cost of the motor vehicle, motor vehicle engine or 

any part involved in the violation: Provided, That if the person violating any provisions of this 

Act is a juridical person, the penalty herein provided shall be imposed on its president or 

secretary and/or members of the board of directors or any of its officers and employees who 

may have directly participated in the violation. 

Any government official or employee who directly commits the unlawful acts defined in 

this Act or is guilty of gross negligence of duty or connives with or permits the commission of 

any of the said lawful acts shall, in addition to the penalty prescribed in the preceding paragraph, 

be dismissed from the service with prejudice to his reinstatement and with disqualification 

from voting or being voted for in any election and from appointment to any public office. 

SECTION 14. Penalty for Carnapping - Any person who is found guilty of carnapping, 

as this term is defined in Section Two of this Act, shall, irrespective of the value of the motor 

vehicle taken, be punished by imprisonment for not less than fourteen years and eight months 

and not more than seventeen years and four months, when the carnapping is committed 

without violence or intimidation of person, or force upon things, and by imprisonment for not 

less than seventeen years and four months and not more than thirty years, when the 

carnapping is committed by means of violence against or intimidation of any person, or force


upon things; and the penalty of reclusion perpetua to death shall be imposed when the owner, 

driver or occupant of the carnapped motor vehicle is killed or raped in the course of the commission 

of the carnapping or on the occasion thereof. (As amended by Sec. 20, R.A. 7659.) 

SECTION 15. Aliens - Aliens convicted under the provisions of this Act shall be 

deported immediately after service of sentence without further proceedings by the Deportation 

Board. 

SECTION 16. Rewards - Any person who voluntarily gives information leading to the 

recovery of carnapped vehicles and for the conviction of the persons charged with carnapping 

shall be given as reward so much reward money as the Philippine Constabulary may fix. 

The Philippine Constabulary is authorized to include in its annual budget the amount necessary 

to carry out the purposes of this Section. Any information given by informers shall be 

treated as confidential matter. 

SECTION 17. Separability Clause - If any provision of this Act is declared invalid, the 

provisions thereof not affected by such declaration shall remain in force and effect. 

SECTION 18. Repealing Clause - All laws, executive orders, rules and regulations, or 

parts thereof, inconsistent with the provisions of this Act are hereby repealed or amended 

accordingly. 

SECTION 19. Effectivity - This Act shall take effect upon its approval. Approved, 

August 26, 1972 

Vehicle Clearance 

Revised Rates of Fees for Motor Vehicle Clearance 

Annex ìBî 

Purpose Present Rate Revised Rate % Increase 

a. New Registration/Imported/Rebuilt P20.00 P200.00 900% 

b. New Registration for Motorcycle P20.00 P100.00 400% 

c. Record Check P20.00 P100.00 400% 

d. Shipment P20.00 P100.00 400% 

e. Change Chassis P20.00 P100.00 400% 

f. Change Body Design P20.00 P100.00 400% 

g. Transfer of Ownership P20.00 P100.00 400% 

h. Change engine P20.00 P100.00 400% 

i. Change color P20.00 P100.00 400% 

Macro Etching ó0ó P100.00 ó 0 ó

2092 


Prepared by: Recommend Approval: 

(SGD.) RENATO M. PAREDES PANFILO M. LACSON 

Police Chief Superintendent Director General 

Director, TMG Chief, PNP 

I. Reference: 

Approved/Disapproved 

(SGD.) ALFREDO S. LIM 

Secretary, DILG 

Annex ìCî 

SOP#2 Streamlining PNP MV Clearance Procedure 

a) SOP Number 2 dated 26 March 1991. 

b) Circular Number 01 dated 01 July 1988. 

c) Amendment to Vehicle Clearance Procedure dated 20 Feb. 1987. 

d) Amendment to Vehicle Clearance Procedure dated 09 Dec. 1986. 

e) Memo from CO, MVCU dated 30 Jan. 1995 with HWI of the Director, TMG 

II. Purpose of this SOP: 

The purpose of this SOP is to provide a specific procedure in the issuance of PNP 

Motor Vehicle Clearance to avoid unnecessary inconvenience on the part of the public as 

well as to provide uniform guidelines to follow by all clearance officer nationwide. 

III. Organization: 

The PNP Motor Vehicle Clearance Office shall be composed of the following sections: 

Processing/Records Section, Macro Etching Section and Cash Section. The Processing/ 

Records Section shall be handled by elements of the PNP TMG; the Macro etching Section 

by PNPCLG and the Cash Section by the representatives of the PNP Finance Service/ 

Regional Finance Service. The Director, TMG shall exercise over-all control and supervision 

in the issuance of PNP Motor Vehicle Clearance nation-wide. 

IV. Tasks: 

a. The PNP Motor Vehicle Clearance Offices organized under this SOP shall be responsible 

for the processing of application and the subsequent issuance of PNP Motor Vehicle Clearance 

for purposes of: Original Registration; Transfer of Ownership; Change Chassis; Change 

Engine; Change Body Design; Inter-Island Shipment; Change of Color and Record Check. 

b. PNP TMG shall provide operational support to all PNP Motor Vehicle Clearance Offices. 

c. MVCO shall see to it that the list of wanted/stolen motor vehicles is updated nationwide 

and all of the Record Sections in all PNP Motor Vehicle Clearance Offices shall be promptly 

furnished with a copy thereof.


d. The issuance of PNP Motor Vehicle Clearance may be decentralized down to the Traffic 

Management Teams (TMT) if this office can put-up and maintain the offices such as: Processing/Records 

Section, Macro-etching Section and Cash Section. 

e. The PNP Finance Service/Regional Finance Service upon request of the clearance officer 

for order of payment, shall collect the prescribed processing fees and issue Official 

Receipt for every clearance issued: indicating therein the amount, date, purpose of clearance 

and the ownerís name of the vehicle. 

f. The PNPCLG shall conduct macro-etching examination on all motor vehicles subject to a 

request for PNP MV clearance however, the following motor vehicles may not be required to 

undergo macro etching provided the following requirements shall be submitted: 

1. All brand new motor vehicles applying for Original Registration, manufactured by Licensed 

Dealers/Companies provided that the following requirements shall be satisfied: 

1a) Certification from the dealer/manufacturer that the Chassis/engine numbers are 

brand new and not tampered. 

1b) LTO Confirmation Certificate of Chassis/engine. 

1c) Sales Invoice 

1d) Stencil of chassis and engine numbers. 

2. All Tractors, Bus, Trucks and Trailers having a gross weight not less than 4500 kg and 

provided the following requirements shall be satisfied: 

2a) LTO Confirmation Certificate and Sales invoice of chassis/engine if the vehicle 

is being applied for original registration. 

2b) Certificate of Registration/Official Receipt. 

2c) Deed of Sale if the purpose is for transfer of ownership 

2d) Affidavit of change engine/chassis/color/body design if it is being applied for the 

said purpose. 

2e) Stencil of chassis and engine numbers. 

3. All change of colors provided the following requirements shall be satisfied: 

3a) Certificate of Registration/Official Receipt. 

3b) Affidavit of change color. 

3c) Stencil of chassis and engine numbers. 

4. All government and diplomatic motor vehicle being applied for Original Registration 

provided that the following requirements should be satisfied: 

4a) LTO Confirmation Certificate of Chassis/engine 

4b) Sales Invoice 

4c) BOC Certificate of payment if imported 

4d) BOC Official Receipt 

4e) Stencil of chassis and engine numbers 

5. All 50cc motorcyles provided that the following requirements should be satisfied:

2094 


5a) LTO Confirmation Certificate of Chassis/engine 

5b) Sales Invoice 

5c) BOC Certificate of payment if imported 

5d) BOC Official Receipt 

5e) Deed of Sale (transfer of ownership) 

5f) Stencil of chassis and engine numbers 

6. All motor vehicles being applied for a record check except those objected for verification 

of motor and chassis number, investigation, re-stamping and court litigation, and 

provided that the following requirements shall be satisfied: 

6a) Certificate of Registration/Official Receipt. 

6b) Stencil of Chassis/Engine. 

g. All motor vehicles particularly mentioned in the preceding paragraph of this SOP may be 

required to undergo macro etching examination if the motor vehicle being applied for PNP 

Motor Vehicle Clearance, has questionable documents and/or its stencil submitted is 

not in order. 

h. All motor vehicles not specifically mentioned above shall be required to undergo macroetching 

examination to be conducted by authorized personnel from PNPCLG. 

V. Procedure: 

a. The procedure in the processing of application for PNP Motor Vehicle Clearance shall be 

as follows: 

1. All PNP MV Clearance applicants shall file their application following required format 

and with all documents required attached. Only photocopy of the documents shall be 

required after presenting the original papers to the processing personnel. 

2. In Metro Manila, all Motor Vehicles exempted from macro-etching examination shall 

be applied at the Receiving Section of the Motor Vehicles Clearance Office, Camp Crame, 

Quezon City. While those motor vehicles subject for examination shall be referred to the 

PNP Motor Vehicle Clearance Offices at Northern, Southern, Eastern, and Western Stations 

or other established offices. 

3. The Receiving Section, in all MVCO Stations (macro-etching stations) in Metro Manila, 

after having received the MV Clearance application, shall assign it to the processing 

officer, who in turn examines the completeness, and regularity of the papers. Shall verify 

from the computer whether subject motor vehicle is among or not among the list of wanted/ 

stolen vehicles on file. If the document is in order endorses the vehicle to PNPCLG for 

the macro-etching examination. If the finding is in order passes the papers to the cash 

section for the payment of clearance fee and the issuance of official receipt and thereafter 

return the papers to the receiving section. Receiving Section then issue the claim stub to 

the applicant indicating therein the time and date of the release of the clearance. 

4. If the motor vehicle being applied for clearance, was found to be among the list of 

wanted/stolen vehicle or the outcome of the macro-etching on the chassis and engine


numbers of the motor vehicle, such that it could not determine the original chassis/engine 

number as a result of tampering, cut and weld and or corrosion, the person applying for 

clearance together with the motor vehicle shall be endorsed to the Special Operation 

Office, TMG for appropriate investigation and immediate filing of appropriate complaint/ 

information whenever warranted by evidences or records available. 

5. All application for PNP Motor Vehicle Clearance received at MVCO Stations (macroetching 

station) in Metro Manila, shall be brought to MVCO for the computerized printing 

of clearance certificates. Head Records and Clearance Officer sign the PNP MV Clearance 

Certificate prior to release. 

6. All approved PNP Clearance Certificates shall be released at the Releasing Section of 

the Motor Vehicle Clearance Office where it was applied. 

b. Expired PNP Motor Vehicle Clearance may be applied for renewal within the period of 

one (1) month upon issuance thereof. Renewal made after the prescribed period shall be 

required to undergo the same procedure. 

c. All Regional Clearance Officer to include those PNP Personnel assigned at Port Area and 

authorized to issue shipment clearance, shall follow the same procedure in the issuance of 

PNP Motor Vehicle Clearance Certificate. 

d. All motor vehicles, which clearance applications are found to be in order, shall be promptly 

issued with PNP Motor Vehicle Clearance Certificates while those found with irregularities 

shall be subjected to investigation with concerned PNP TMG Offices. 

VI. Coordinating Instruction: 

a. The Director, TMG shall oversee the implementation of this SOP. He shall see to it that 

the essential data are promptly exchanged and distributed to all PNP Motor Vehicle Clearance 

Offices for optimum effectiveness and efficiency. 

b. As a matter of policy, no macro etching of motor vehicle shall be conducted outside the 

determined area such as the MVCO Eastern Sector, except when so requested in writing by 

the concerned person/agency and as approved by the Director. 

c. All procedures and policies not in conformity with this SOP are hereby rescinded. 

Adopted: 28 October 1997 

A. ORIGINAL REGISTRATION 

(SGD.) RODOLFO NACIONALES CAISIP 

Police Senior Superintendent (GSC) 

Director 

PNP Motor Vehicle Clearance Requirements 

1. Brand New 

a. Sales Invoice 

b. LTO Confirmation Certificate of the Sales Invoice

2096 


2. Imported 

a. BOC Certificate of Payment 

b. LTO Confirmation Certificate of the Certificate of Payment 

c. Informal Entry 

d. Bill of Lading 

3. Assembled 

a. Sales Invoices of the engine and chassis 

b. LTO Confirmation Certificate of the engine and chassis 

c. Affidavit of Rebuilt (duly notarized and to be executed by the owner) 

d. If engine/chassis was acquired from a private person or company, deed of sale of 

the engine and chassis. 

e. Certificate of Registration and LTO Official Receipt covering the acquired engine/ 

chassis. 

B. TRANSFER OF OWNERSHIP: 

1. Deed of Sale 

2. LTO Certificate of Registration and Official Receipt. 

3. If vehicle is mortgaged, submit Cancellation/Release/Assumption of Mortgage 

4. If vehicle was acquired from a company/corporation, submit Secretaryís Certificate 

5. If the sale was made through a representative, submit Special Power of Attorney 

C. CHANGE OF ENGINE/CHASSIS 

1. Sales Invoice of the engine/chassis 

2. LTO Confirmation Certificate of the engine/chassis 

3. Affidavit of Change engine/chassis (duly notarized and to be executed by the owner) 

4. If engine/chassis was acquired from a private person or company/corporation, submit 

deed of sale of the engine/chassis 

5. LTO Certificate of Registration and Official Receipt covering the acquired engine/chassis 

D. CHANGE OF COLOR 

1. Affidavit of change of color (duly notarized and to be executed/signed by the owner) 

2. Certificate of Registration and LTO Official Receipt 

E. CHANGE OF BODY DESIGN 

1. Affidavit of change body design (duly notarized and to be executed/signed by the 

owner) 

2. Certificate of Registration and LTO Official Receipt 

F. FOR SHIPMENT 

1. LTO Certificate of Registration and Official Receipt 

G. RECORD CHECK 

1. LTO Certificate of Registration and Official Receipt


* Note: All motor vehicles shall be subjected to macro etching by the PNPCLG except 

those that are not required in SOP#2. 

* A photocopy of Tax Account Number of the Owner shall be attached as one of the 

requirements in securing PNP MV Clearance. 


óo0oó 

Memorandum 

Permit to Assemble To Be Issued by TMG as a Mandatory 

Requirement Prior to the Assembly of Motor Vehicle 

1. This pertains to the memorandum for C, PNP seeking implementation of Sec. 10, R.A. 

6539, Except for minor changes, we opted to revise the draft memorandum so that it may 

satisfy legal and technical requirements prior to its implementation. 

2. The following revisions are suggested: 

a. To reword paragraph 2 as follows: 

ì2. Section 10 of RA 6539 provides in part: 

ëSec.10. Clearance and permit required for assembly or rebuilding of 

motor vehicles - Any person who shall undertake to assemble or rebuild or 

cause the assembly or rebuilding of a motor vehicle shall first secure a certificate 

of clearance from the Philippine Constabulary: Provided, that no such permit 

shall be issued unless the applicant shall present a statement under oath containing 

the type, make and serial numbers of the engine and chassis and body, if 

any, and the complete list of the spare parts of the motor vehicle to be assembled 

or rebuilt together with the names and addresses of the sources thereof. xxxî 

(Underscoring supplied for emphasis) 

The above quoted provision intends to establish a requirement prior to the assembly or 

rebuild of a motor vehicle, specifically, it requires any person to secure first a certificate of 

clearance from the Philippine Constabulary (PC). It appears that this provision of the law has 

not yet been enforced, and the need for its implementation is now paramount. It is anticipated 

with optimism that its implementation will be an effective deterrent to the use of motor vehicle 

spare parts from illegal sources, such as that coming from carnapped motor vehicles. 

This office believes that it is necessary to reproduce the exact wordings of the provision 

of Sec. 10, R.A. 6539. This is so because the same provision is under consideration 

and the basis of implementation. 

b. To reword paragraph 3 as follows:

2098 


ì3. In order to obviate resistance and misunderstanding from the public, it is 

better to explain that Section 10 is different from Section 6 of the same law (RA 

6539). Section 6 provides in part as follows: 

ìSec. 6. Original Registration of Motor Vehicles - Any person seeking the original 

registration of a motor vehicle, whether that motor vehicle is newly assembled 

or rebuilt or acquired from a registered owner, shall within one week after the 

completion of the assembly or rebuilding job or the acquisition thereof from the 

registered owner, apply to the Philippine Constabulary for clearance of the motor 

vehicle for registration with the Land Transportation Commission. x x xî. 

Comparatively, the provision of Section 6 is a requirement for the original registration 

of the motor vehicle after the assembly. The said provision is being enforced ever since, 

and that the detail of its implementation can be found in SOP#2 issued by the Director, TMG 

on October 28, 1997 (Annex ìCî). Section 10 is a requirement to secure a clearance before 

the assembly or rebuild of the motor vehicle. Apparently, the provisions are complimentary 

and intended to further restrict assembly or rebuild of motor vehicle as a deterrent factor to 

carnapping activities. 

c. To delete paragraphs 4 and 5 of the draft memorandum for C, PNP since the need 

to implement Section 10 of RA 6539 has been explained in paragraph 2 of the memorandum, 

and parts of the wordings used in paragraph 5 are incorporated in paragraph 3 already. 

d. To renumber and reword paragraph 6 to paragraph 4 and paragraph 7 to paragraph 

5, respective as follows: 

ì4. In view of the foregoing, TMG recommends the implementation of Section 

10, Republic Act 6539 by way of establishing a requirement for a clearance/ 

permit to assemble prior to the assembly or rebuilding of motor vehicle and that a 

corresponding fee of P150.00 be charged for the issuance of such permit. 

ì5. It is further recommended that the Revised Rates of Fees for Motor Vehicle 

Clearance be amended in order to include the payment for ìPermit to Assembleî 

and that prior to its implementation, the guidelines provided in Chapter 2 (Rules 

and Regulations, Sec. 3 of Book VII of the Administrative Procedure (Administrative 

Code of 1987 copy attached as Annex ìDî) be properly observed.î 

e. To renumber paragraph 8 to paragraph 6, and reword as follows: 

ì6. Request signature of C, PNP recommending the approval to the Hon. Secretary, 

DILG of paragraphs 4 and 5 of this memorandum.î 

3. For information. 


(SGD.) ATTY. ROMEO L. LESONDRA, MNSA 

Police Chief Superintendent 

óo0oó

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