1987 Constitution, Article 12 Section 11.

No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least sixty per centum of whose capital is owned by such citizens; nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years. Neither shall any such franchise or right be granted except under the condition that it shall be subject to amendment, alteration, or repeal by the Congress when the common good so requires. The State shall encourage equity participation in public utilities by the general public. The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines. Section 17. In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest. Section 18. The State may, in the interest of national welfare or defense, establish and operate vital industries and, upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be operated by the Government. Section 19. The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.

CA 146, Sec. 13(b) The term “public service” includes every person that now or hereafter may own, operate, manage, or control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general use business purposes, any common carrier, railroad, street railway, traction railway, sub-way motor vehicle, either for freight or passenger, or both with or without fixed route and whatever may be its classification, freight or carrier service of any class, express service, steamboat, or steamship line , pontines, ferries, and water craft, engaged in the transportation of passengers or freight or both, shipyard, marine railway, marine repair shop, wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power, water supply and power, petroleum, sewerage system, wire or wireless communications system, wire or wireless broadcasting stations and other similar public services: Provided, however, That a person engaged in agriculture, not otherwise a public service, who owns a motor vehicle and uses it personally and/or enters into a special contract whereby said motor vehicle is offered for hire or compensation to a third party or third parties engaged in agriculture, not itself or themselves a public service, for operation by the latter for a limited time and for specific purpose directly connected with the cultivation of his or their farm, the transportation, processing, and marketing of agricultural products of such third party or third parties shall not be considered as operating a public service for the purpose of this Act.

Public Service Act Section 13. (a) The Commission shall have jurisdiction, supervision, and control over all public services and their franchises, equipment, and other properties, and in the exercise of its authority, it shall have the necessary powers and the aid of the public force: Provided, That public services owned or operated by government entities or government-owned or controlled corporations shall be regulated by the Commission in the same way as privately-owned public services, but certificates of public convenience or certificates of public convenience and necessity shall not be required of such entities or corporations: And provided, further, That it shall have no authority to require steamboats, motor ships and steamship lines, whether privately-owned, or owned or operated by any Government controlled corporation or instrumentality to obtain certificate of public convenience or to prescribe their definite routes or lines of service. (b) The term "public service" includes every person that now or hereafter may own, operate, manage, or control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general business purposes, any common carrier, railroad, street railway, traction railway, sub-way motor vehicle, either for freight or passenger, or both with or without fixed route and whether may be its classification, freight or carrier service of any class, express service, steamboat or steamship line, pontines, ferries, and water craft, engaged in the transportation of passengers or freight or both, shipyard, marine railways, marine repair shop, [warehouse] wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power water supply and power, petroleum, sewerage system, wire or wireless communications system, wire or wireless broadcasting stations and other similar public services: Provided, however, That a person engaged in agriculture, not otherwise a public service, who owns a motor vehicle and uses it personally and/or enters into a special contract whereby said motor vehicle is offered for hire or compensation to a third party or third parties engaged in agriculture, not itself or themselves a public service, for operation by the latter for a limited time and for a specific purpose directly connected with the cultivation of his or their farm, the transportation, processing, and marketing of agricultural products of such third party or third parties shall not be considered as operating a public service for the purposes of this Act. (c) The word "person" includes every individual, co-partnership, joint-stock company or corporation, whether domestic or foreign, their lessees, trustees, or receivers, as well as any municipality, province, city, government-owned or controlled corporation, or agency of the Government of the Philippines, and whatever other persons or entities that may own or possess or operate public services. (As amended by Com. Act 454 and RA No. 2677) Section 14. The following are exempted from the provisions of the preceding section: (a) Warehouses; (b) Vehicles drawn by animals and bancas moved by oar or sail, and tugboats and lighters; (c) Airships within the Philippines except as regards the fixing of their maximum rates on freight and passengers; (d) Radio companies except with respect to the fixing of rates; (e) Public services owned or operated by any instrumentality of the National Government or by any government-owned or controlled corporation, except with respect to the fixing of rates. (As amended by Com. Act 454, RA No. 2031, and RA No. 2677 ) Section 15. With the exception of those enumerated in the preceding section, no public service shall operate in the Philippines without possessing a valid and subsisting certificate from the Public Service Commission known as "certificate of public convenience," or "certificate of public convenience and necessity," as the case may be, to the effect that the operation of said service and the authorization to do business will promote the public interests in a proper and suitable manner. The Commission may prescribe as a condition for the issuance of the certificate provided in the preceding paragraph that the service can be acquired by the Republic of the Philippines or any instrumentality thereof upon payment of the cost price of its useful equipment, less reasonable depreciation; and likewise, that the certificate shall be valid only for a definite period of time; and that the violation of any of these conditions shall produce the immediate cancellation of the certificate without the necessity of any express action on the part of the Commission. In estimating the depreciation, the effect of the use of the equipment, its actual condition, the age of the model, or other circumstances affecting its value in the market shall be taken into consideration.

classifications. and to authorizations to renew and increase equipment and properties. pressure. quality. One Thousand and twenty-two. street railway or traction to promote. kilometrage. upon notice and hearing. as amended by Act No. co-partnerships. That sixty per centum of the stock or paid-up capital of any such corporations. and followed thereafter by any public service. such extension is reasonable and practicable and will furnish sufficient business to justify the construction and maintenance of the same and when the financial condition of the said public service reasonably warrants the original expenditure required in making and operating such extension. That thereafter. co-partnership. initial voltage. the net profits of said private business shall be considered in relation with the public service of such operator for the purpose of fixing the rates. authorizing the operation of public service within the Philippines whenever the Commission finds that the operation of the public service proposed and the authorization to do business will promote the public interest in a proper and suitable manner. Section 16. and in like manner direct any railroad. construct. such connection is reasonable and practicable and can be out in with safety and will furnish . street railway. (c) To fix and determine individual or joint rates. and to issue certificates of public convenience and necessity when such is required or provided by any law or franchise. That the Commission may. or of passengers. in its discretion. and proper service as regards the manner of furnishing the same as well as the maintenance of the necessary material and equipment.The Commission shall have power. and other special rates which shall be imposed observed and followed thereafter by any public service: Provided. maintain and operate. regulations. . in the judgment of the Commission. practices. (h) To require any public service to establish. and operate any reasonable extension of its existing facilities. subject to the limitations and exceptions mentioned and saving provisions to the contrary : (a) To issue certificates which shall be known as certificates of public convenience. certificates of public convenience and certificates of public convenience and necessity will be granted only to citizens of the Philippines or of the United States or to corporations. by any political subdivision of the Philippines when. observed. equipment. Proceedings of the Commission. instructions. (b) To approve. and standards. upon reasonable terms. Six Hundred and Sixty-seven. upon publication and notice to the concerns operating in the territory affected: Provided. service. or traction company engaged in carrying merchandise. approve rates proposed by public services provisionally and without necessity of any hearing. subject to constitutional limitations any franchise or privilege granted under the provisions of Act No. street railway or traction company line where. and to prescribe reasonable regulations for the examination and test of such product or service and for the measurement thereof. where in the judgment of said Commission. (d) To fix just and reasonable standards. Provided. thereafter. such franchise or privilege will properly conserve the public interests. upon proper notice and hearing in accordance with the rules and provisions of this Act. (f) To establish reasonable rules. (g) To compel any public service to furnish safe. charges. in the judgment of the Commission. adequate. or other condition pertaining to the supply of the product or service rendered by any public service. (i) To direct any railroad. a switch connection with any private sidetrack which may be constructed by any shipper to connect with the railroad. or operation as the public interests and convenience may reasonably require. to secure the accuracy of all meters and appliances for measurements. or with any other line of any other railroad. or schedules thereof. mileage. That no such certificates shall be issued for a period of more than fifty years. (e) To ascertain and fix adequate and serviceable standards for the measurement of quantity. That in case the public service equipment of an operator is used principally or secondarily for the promotion of a private business. street railway or traction company to establish and maintain at any junction or point of connection or intersection with any other line of said road or track. tolls. or service to be furnished. and the Commission shall in so approving impose such conditions as to construction. specifications.The foregoing is likewise applicable to any extension or amendment of certificates actually in force and to those which may hereafter be issued. measurement. regulations. Provided. but it shall call a hearing thereon within thirty days. to construct. as well as commutation. classifications. further. association or joint-stock company must belong entirely to citizens of the Philippines or of the United States: Provided. further. such just and reasonable connection as shall be necessary to promote the convenience of shippers of property. imposed. maintain. to permit to modify itineraries and time schedules of public services. maintenance. associations or joint-stock companies constituted and organized under the laws of the Philippines.

adequate. practice. or (3) railways and street railways. as the case may be and require existing public services to pay the fees provided for in this Act for the issuance of the proper certificate of public convenience or certificate of public necessity and convenience. That said fees shall be smaller than more those charged for auto-busses. Said rates shall be sufficient to provide the amounts required over and above the expense of maintenance to keep such property in a state of efficiency corresponding to the progress of the industry. or upon complaint in writing. street railway or traction company or across any public highway. as the convenience of the state may require. subject to established limitations and exception and saving provisions to the contrary: (a) To investigate. to require any public service to furnish safe. improvements. regulation. for the . under the penalty. to enforce compliance with any standard. trucks. to fix and determine a special registration fee for auto-buses. street railway or traction company to lay its tracks across the tracks of any other railroad. new construction. (m) To amend. any matter concerning any public service as regards matters under its jurisdiction. (d) To provide. office. Proceedings of Commission without previous hearing. Section 17. modify or revoke at any time certificate issued under the provisions of this Act. whenever such step shall in the judgment of the Commission be necessary to avoid serious and irreparable damage or inconvenience to the public or to private interests. and operated by operators after the approval of this Act. (2) public highways and streets railway. order. and motor trucks so constructed. purchased. documents. in its discretion. upon its own initiative. regulation or requirement issued or established by the Commission. or board of the government of the Philippines or any political subdivision thereof. (o) To fix. . and shall set aside the moneys so provided for out of its earnings and carry the same in a depreciation fund. purchased and operated: Provided. regulation. trucks. regulations. and to prohibit or prevent any public service as herein defined from operating without having first secured a certificate of public convenience or public necessity and convenience. (c) From time to time appraise and value the property of any public service. and motor trucks to be hereafter constructed. This fund shall not be expended otherwise than for depreciation. and regulate. of the revocation and cancellation of any acquired rights. That the Commission. and motor trucks of types not made regulation under the subsection. schedule. on motion by or at the request of any consumer or user of a public service. any railroad. whenever the facts and circumstances on the strength of which said certificate was issued have been misrepresented or materially changed. (k) To direct any railroad or street railway company to install such safety devices or about such other reasonable measures as may in the judgment of the Commission be necessary for the protection of the public are passing grade crossing of (1) public highways and railroads. determine. bureau.The Commission shall have power without previous hearing. in the discretion by the Commission. Each public service shall conform its depreciation accounts to the rates so determined and fixed. whenever in the judgment of the Commission it shall be necessary so to do. order or other requirement of this Act or of the Commission. may prior to the hearing suspend for a period not to exceed thirty days any certificate or the exercise of any right or authority issued or granted under this Act by order of the Commission. rule. (n) To suspend or revoke any certificate issued under the provisions of this Act whenever the holder thereof has violated or willfully and contumaciously refused to comply with any order rule or regulation of the Commission or any provision of this Act: Provided. extensions or conditions to the properly of such public service. (l) To fix and determine proper and adequate rates of depreciation of the property of any public service which will be observed in a proper and adequate depreciation account to be carried for the protection of stockholders.sufficient business to justify the construction and maintenance of the same. charge. act or service thereof is in violation of any provision of this Act or any certificate. (b) To require any public service to pay the actual expenses incurred by the Commission in any investigation if it shall be found in the same that any rate. or records in the possession of any department. and in making such valuation the Commission may have access to and use any books. as the case may be. tool. trucks. (j) To authorize. The income from investments of money in such fund shall likewise be carried in such fund. for the purpose of carrying out any of the provisions of this Act. rule. and proper service as the public interest may require and warrant. a special type for auto-busses. The Commission may also assess against any public service costs not to exceed twenty-five pesos with reference to such investigation. and form of account as the Commission may prescribe. for good cause. bondholders or creditors in accordance with such rules.

experts. (k) To investigate any or all accidents that may occur on the property of any public service or directly or indirectly arising from or connected with its maintenance or operation in the Philippines. trustees executive committee. in the case of public carriers. within ten days after any change is made in the title of. the number of employees and salaries paid to each class. superintendent. the amounts of said capital stock paid up and the form of payment thereof. and post-office address. or agreements. to file with it a statement showing the itineraries or routes served as specified in such requirement. setting forth the name. the balance of profits and losses. rule. whether obtained under any general or special law of the Philippines. decision. if a corporation. compromises or contracts affecting the same. CHAPTER III
 OPERATORS OF PUBLIC SERVICES REGULATIONS AND PROHIBITIONS Section 18. and shall be sworn to by the officer or functionary of the public service authorized therefor.examination and test of any appliance used for the measuring of any product or service of a public service. and the causes thereof. Such reports shall set forth in detail the capital stock issued. (l) To require every public service s herein defined to file within complete schedules of every classification employed and of every individual or joint rate. and the authority. It shall be unlawful for any individual. verified by the oaths of the owner or the president and the secretary thereof. and other premises of the public service. and for that purpose. (i) To require every public service to file with the Commission a statement in writing. order or other action of the operator of such public service. the operating and other expenses. if any and the number of stockholders. the surplus. (f) To grant to any public service special permits to make extra or special trips within the territory covered by its certificates of public convenience. member of the board of directors. . and accounts so as to afford an intelligent understanding of the conduct of its business and to that end to require every such public service of the same class to adopt a uniform system of accounting. in such form as to disclose the source and origin of each administrative act. the manner of their investment and nature of such improvements. verified in like manner. Such reports shall also contain any information which the Commission may require concerning freight and passenger rates. Such system conform to any system approved and confirmed by the Auditor General. or examiners to enter upon any premises where said appliances may be. employees. and to fix the fees to be paid by any consumer or user who may apply to the Commission for such examination or test to be made. (g) To require any public service to keep its books. records. and to make such order or recommendation with respect thereto as the public interest may warrant or require. association. or any municipality. the annual expenditures on improvements. however. filed with the Commission a like statement. corporation or joint-stock company. by its agents. the accidents to passengers. (h) To require any public service to furnish annual reports of finances and operations. or the person holding the same. (e) To permit any street railway or traction company to change its existing gauge to standard steam railroad gauge. their lessees. the cost and value of the property of the operator. setting forth such change. and. and other person. or authority. charged or exacted by it for any product supplied or service rendered within the Philippines and. the consolidated and pending obligations and the interest paid thereon. and to make special excursion trips outside of its own territory if the public interest or special circumstances required it: Provided. and a complete statement of the annual financial operations of the operator. and if the appliance be found defective or incorrect to the disadvantage of the consumer or user to require the fees paid to be refunded to the consumer or user by the public service concerned. concessions or franchises and equipment. co-partnership. the receipts and profits in each of the branches of the business and of whatever source. (j) To require any public service to comply with the laws of the Philippines and with any provincial resolution or municipal ordinance relating thereto and to conform to the duties imposed upon it thereby or by the provisions of its own character. a special permit for such extra service may be granted to any other public service. that in case a public service cannot render such extra service on its own line or in its own territory. powers or duties appertaining to any such office or position. chief or head of construction and operation thereof. to require any public service to give the Commission immediate and effective notice of all any such accidents. including an annual balance sheet. the dividends paid. Said reports shall cover a period of twelve months. The Commission shall also have power to require from time to time special reports containing such information as above provided for or on other matters as the Commission may deem necessary or advisable. ending on December thirty-first of each year. trustees or receivers appointed by any court whatsoever. title of office or portion. toll fare or charge made. upon such terms and conditions as the Commission shall prescribe. power and duties of every officer. for the purpose of setting up and using on said premises any apparatus necessary therefor.

merger. actually paid to the Government of the Philippines or any political subdivision thereof as the consideration of said franchise. (c) To abandon any railroad station or stop the sale of passenger tickets. however. to approve any such issue maturing in more than one year from the date thereof. In case the Director of Posts and public service carrier are unable to agree on the amount of the compensation to be paid for the carriage of the mail. Acts requiring the approval of the Commission. discounts or rebates on authorized rates. and the purpose of such issue be approved by the Commission. or any undue or unreasonable preference or advantage to any person of corporation or to any locality or to any particular description of traffic or service. giving them a reasonable opportunity to be heard and the burden of the proof to show that the proposed rates or regulations are just and reasonable shall be upon the public service proposing the same. as found and determined by the Commission in a final order which shall be conclusive and shall take effect in accordance with this Act. attorneys or brokers. or other department of the Government of the Philippines to engage in any public service business without having first secured from the Commission a certificate of public convenience or certificate of public convenience and necessity as provided for in this Act. by the provisions of section thirteen of this Act. . the Director of Posts shall forthwith request the Commission to fix a just and reasonable compensation for such carriage and the same shall be promptly fixed by the Commission in accordance with Section sixteen of this Act. The Commission shall approve only those that are just and reasonable and not any that are unjustly discriminatory or unduly preferential. or issue any bonds or other evidence of indebtedness payable in more than one year from the issuance thereof. maintain. or issue any share of stock without par value. Section 19. to carry public mail on the regular trips of any public land transportation service maintained or operated by any such public service. practice or measurement which shall be found or determined by the Commission to be unjust. so as to make a new crossing at grade. directly or indirectly. that this subsection shall not apply to replacements of lawfully existing tracks. fare. commutation. (b) To make or give. upon appeal of otherwise. fix. maintain. after hearing. or enforce any regulation. charge. either totally or in part. by itself or through its agents. merger or lease. (d) To lay any railroad or street railway track across any highway. lessee or operator thereof. or operate new units or extend existing facilities or make any other addition to or general extension of the service. without the approval and authorization of the Commission previously had (a) To adopt. or any of them. when requested by the Director of Posts or his authorized representative. or cease to maintain an agent to receive and discharge freight at any station now or hereafter established at which passenger tickets are now or may hereafter be regularly sold. or subject any particular person or corporation or locality or any particular description of traffic to any prejudice or disadvantage in any respect whatsoever. or issue any bonds or other evidence of indebtedness against or as a lien upon any contract for consolidation. Section 20.province. collect or carry into effect any individual or joint rates. upon such terms and conditions and for a consideration in such amount as may be agreed upon between the Director of Posts and the public service carrier of fixed by the Commission in the absence of an agreement between the Director of Posts and the carrier. or cross the tracks of any other railroad or street railway. unreasonable. only upon reasonable notice to the public services and other parties concerned. . or at which such agent is now or may hereafter be maintained. or lease: Provided. upon repeal or otherwise. when satisfied that the same is to be made in accordance with law. impose. provided.It shall be unlawful for any public service: (a) To provide or maintain any service that is unsafe. classification or itinerary. except grantees of legislative franchises expressly exempting such grantees from the requirement of securing a certificate from this Commission as well as concerns at present existing expressly exempted from the jurisdiction of the Commission. it shall be unlawful for any public service or for the owner. capitalize any contract for consolidation. provided that it shall be the duty of the Commission. maintain. toll. improper. (b) To establish. (f) To capitalize any franchise in excess of the amount. or make any permanent change in its time tables or itineraries on any railroad or in its service. unduly preferential or unjustly discriminatory in a final order which shall be conclusive and shall take effect in accordance with the provisions of this Act. mileage or other special rate. (c) To refuse or neglect. inclusive of any tax or annual charge. establish. or inadequate or withhold or refuse any service which can reasonably be demanded and furnished. or grant credit for the payment of freight charges.Subject to established limitations and exceptions and saving provisions to the contrary. that the provisions of this . Unlawful Acts. (e) Hereafter to issue any stock or stock certificates representing an increase of capital. to adopt. construct.

454. when traveling in the course of their official duly. if it be shown that there are just and reasonable grounds for making the mortgaged or encumbrance. or merge or consolidate its property. or transfer in itself or in connection with another previous sale shall be the reduction to less than sixty per centum of the capital stock belonging to Philippine citizens. (h) To sell or register in its books the transfer or sale of shares of its capital stock. agents. alienate. give or tender. (j) To issue. (9) peace officers and men of regularly constituted fire departments. express corporations and telegraph and telephone corporations. (2) inmates of hospitals or charity institutions. (As amended by Com. Act No.section shall not prevent the issuance of stock. and members of their families. alienation or transfer shall be void and of no effect and shall be sufficient cause for ordering the cancellation of the certificate. the date on which the same is to be consummated shall be fixed in the order of approval: Provided. physicians and surgeons of said public service. going and returning. railway and marine mail service employees. except to the following persons: (1) officers. (4) the necessary caretakers. or apply practices or measures. (As amended by Com.) (k) Adopt. franchises. merger. customs officers and inspectors. Such sale. Act No. and the necessary agents employed in such transportation. directly or indirectly. shall be to vest in the transferee more than forty per centum of the subscribed capital of said public service. (3) indigent. (8) persons injured in accidents or wrecks. and that the same are not detrimental to the public interest. Any transfer made in violation of this provision shall be void and of no effect and shall not be registered in the books of the public service corporation. destitute. Nothing herein contained shall be construed to prevent the holding of shares lawfully acquired. and in case of a sale. fruit. any free ticket free pass or free or reduced rate of transportation for passengers. or the sale. bonds. (5) employees of sleeping car corporations. maintain. certificates. (g) To sell. that nothing herein contained shall be construed to prevent the transaction from being negotiated or completed before its approval or to prevent the sale. lease. and homeless persons when transported by charitable societies or hospitals. alienate or in any manner transfer shares of its capital stock to any alien if the result of that sale. (7) witnesses attending any legal investigation in which the public service is an interested party. 454. for liabilities of more than one year maturity. or lease by any public service of any of its property in the ordinary course of its business. poultry. and immigration inspectors when engaged in inspection. franchises privileges or rights. or any part thereof. however. after notice to the public and hearing the persons interested at a public hearing. or consolidation to be approved. employees. alienation. or rights or any part thereof. if the result of that sale in itself or in connection with another previous sale. rules or regulations to which the public shall be subject in its relations with the public service. of livestock. with those of any other public service. (6) post-office inspectors. and physicians and nurses attending such persons. The approval herein required shall be given. privileges. and other freight under uniform and non-discriminatory regulation. alienation. attorneys. or other evidence of indebtedness subject to the approval of the Commission by any lawfully merged or consolidated public services not in contravention of the provisions of this section. mortgage. encumber or lease its property. alienation.) (i) To sell. and persons engaged in charitable work. .

6. 3. 4. Guide government and private investment in the establishment. 5. licenses or documents necessary or incident thereto. 7. Undertake the safety regulatory functions pertaining to vessels construction and operations including the determination of manning levels and issuance of certificates competency to seamen.radio and television broadcast relaying. Develop an integrated plan for a nationwide transmission system in accordance with the national and international telecommunication service requirement including. SECTION 14.model transportation and communication systems in a most practical. The Maritime Industry Authority is hereby retained and shall have the following functions: 1. planning. the manufacture of communications/ electronics equipment and components to complement and support as much as possible. 2. reliable and efficient postal system for the country. transportation and communication services. implementing. To accomplish such mandate. Issue certificates of public convenience for the operation of domestic and overseas water carriers. 3. leased channel services and data transmission. policies. Register vessels as well as issue certificates. Develop and formulate. project. the growth and effective regulation of shipping enterprises. as well as in the fast. Enforce laws. prescribe and regulate routes. the Ministry shall have the following objectives: 1. standards. 4. Encourage the development of a domestic telecommunication industry in coordination with the concern entities particularly. regulating. The Ministry shall be the primary policy. . and orderly fashion for maximum safety. zones and /or areas of operation of particular operators of public water services. Impose appropriate measure so that technical. for the national security objectives of the country. prescribe and enforce rules and regulation. 7. the expansion. bay and river pilots. 6. 5. Provide for a safe. expeditious. plans. Sec 4 SECTION 4. Establish. service.EO 125. and cost effectiveness. Maritime Industry Authority. operation and maintenance of an international switching system for incoming and outgoing telecommunication services. sale. coordinating. including penalties for violation thereof. programming. efficient and reliable postal. Mandate. 2. and administrative entity of the Executive Branch of the government in the promotion. Promote the development of dependable and coordinated networks of transportation and communication systems. Undertake the issuance of licenses to qualified seamen and harbor. development. specifications and guidelines geared towards the promotion and development of the Maritime Industry. among others. programs. economic and other condition for the continuing economic viability of the transportation and communication entities are not jeopardized and do not encourage inefficiency and distortion of traffic patronage. Guide government and private investment in the development of the country's inter. operation and maintenance of the nationwide telecommunications network. development and regulation of dependable and coordinated networks of transportation and communication system. governing water transportation and the Philippine merchant marine with the aid of other law enforcement agencies.

13. domestic and overseas shipping. standards and procedures for the efficient and effective discharge of the above functions. Determine. 9. fix and/or prescribe charges and/or rates pertinent to the operation of public water transport utilities. Establish and prescribe rules and regulation. ship repair. 12. the provision hereof and applicable laws.8. 11. Perform such other function as may now or hereafter be provided by the law. Supervise the Philippine Merchant Marine Academy as recognized herein in accordance with its charter. ship breaking. Issue and register the Continuous Discharge Book of Filipino Seamen. facilitate all services except in cases where charges or rates are established by international bodies or association of which the Philippine is a participating member or by bodies or association recognized by the Philippine Government as the proper arbiter of such charges or rates. ship management and agency. . 10. Accredit marine surveyors and maritime enterprises engaged in shipbuilding. rules and regulation under the chairmanship of the maritime administrator.

airports and railways projects and facilities as directed by the President of the Philippines or as provided by law. (c) Assess. DEFINING ITS POWERS AND FUNCTIONS. trimobiles and railways. and for this purpose. do hereby order: Sec. delivery services. there is a compelling need to clarify and/or modify structural and functional organization of the Department as provided under Executive Order No. (f) Establish. development. AND FOR OTHER PURPOSES. (b) Establish and administer comprehensive and integrated programs for transportation and communications. THEREFORE.EXECUTIVE ORDER NO. operation and maintenance of such telecommunications facilities in areas not adequately served by the private sector in order to render such domestic and overseas services that are necessary with due consideration for advances in technology. to participate and assist in the preparation and implementation of such program. (j) Establish and prescribe rules and regulations for the establishment. CORAZON C. 125. Sections 5. 9. (i) Establish and prescribe rules and regulations for identification of routes. 8. Powers and Functions. are hereby amended to read as follows: "Sec. money order services and promotion of philately. (h) Accredit foreign aircraft manufacturers and/or international organizations for aircraft certification in accordance with established procedures and standards. railways and aircrafts. 125-A April 13. (l) Establish and prescribe rules and regulations for issuance of certificates of public convenience for public land transportation utilities. 125 in order to ensure compliance with its mandate and the attainment of the corresponding objectives as specified in Section 4 of said Executive Order. by virtue of the powers vested in me by the Constitution. improvement. 1987 AMENDING EXECUTIVE ORDER NO. AQUINO. 1. regional and local levels. such as motor vehicles. whether public or private. NOW. trimobiles. ports. construction. may call on any agency. operate and maintain a nationwide postal system that shall include mail processing. . 10 and 11 of Executive Order No. or organization. maintenance and repair of all infrastructure projects and facilities of the Department. President of the Republic of the Philippines. 125. (k) Establish and prescribe rules and regulations for the operation and maintenance of a nationwide postal system that shall include mail processing. rules and regulations in the field of transportation and communications. (m) Establish and prescribe rules and regulations for the inspection and registration of air and land transportation facilities. delivery services. location. the Department shall have the following powers and functions: (a) Formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national. (d) Administer and enforce all laws. and money order services and promote the art of philately. considering the peculiar situation obtaining in the Department of Transportation and Communications (DOTC). corporation. ENTITLED "REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS. otherwise known as the Reorganization Act of the Ministry of Transportation and Communications." WHEREAS. review and provide direction to transportation and communication research and development programs of the government in coordination with other institutions concerned. such as motor vehicles. However. I. rehabilitation. To accomplish its mandate. whose development programs include transportation and communications as an integral part thereof. government corporate entities attached to the Department shall be authorized to undertake specialized telecommunications. (e) Coordinate with the Department of Public Works and Highways in the design. (g) Issue certificates of public convenience for the operation of public land and rail transportation utilities and services. zones and/or areas of operations of particular operators of public land services. 5.

" "Sec. or proper to its mandate or as may be assigned from time to time by the President of the Republic of the Philippines. Each of the above-named services shall be headed by a service chief appointed by the President upon the recommendation of the Secretary. including the penalties for violations thereof. Department Regional Offices. (o) Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing land transportation. fix and/or prescribe charges and/or rates pertinent to the operation of public air and land transportation utility facilities and services." Sec. incidental. Assistant Secretaries and Service Chiefs. 9. 1) Administrative Service.(n) Establish and prescribe rules and regulations for the issuance of licenses to qualified motor vehicle drivers. The Secretary shall be assisted by four (4) Undersecretaries Appointed by the President upon the recommendation of the Secretary. or as may be necessary. (r) Administer and operate the Civil Aviation Training Center (CATC) and the National Telecommunications Training Institute (NTTI). procedures and standards for the accreditation of driving schools. (f) Office of the Assistant Secretary for Postal Services. 11. (q) Establish and prescribe the rules. Structural Organization. and. air transportation and postal services. and (s) Perform such other powers and functions as may be prescribed by law. The Department. and 2) Project Management Service e) Office of the Assistant Secretary for Land Transportation. 1) Planning Service. (p) Determine. plans. The Office of the Secretary shall have direct line supervision and control over the Department regional offices. (h) Office of the Assistant Secretary for Air Transportation. which Undersecretary shall have control and supervision over said respective services and offices: (a) Office of the Assistant Secretary for Administrative and Legal Affairs. and shall report to the respective Undersecretaries assigned by the Secretary. and 2) Legal Service (b) Office of the Assistant Secretary for Finance and Comptrollership. 8. The Secretary shall also be assisted by eight (8) Assistant Secretaries appointed by the President upon the recommendation of the Secretary. The Department shall have three (3) Department Regional Offices in each of the administrative regions of the country: the Department Regional Office for land . 10. and airmen. and 2) Comptrollership Service c) Office of the Assistant Secretary for Planning and Project Development. regulations. and 2) Project Development Service (d) Office of the Assistant Secretary for Management Information Service and Project Management. each of whom shall respectively be responsible for the following four (4) staff offices composed of eight (8) services and four (4) line offices." "Sec. aside from the Department proper which is comprised of the Offices of the Secretary. except such rates and/or charges as may be prescribed by the Civil Aeronautics Board under its charter. "Sec. 1) Finance and Management Service. Undersecretaries. programs and projects for the Department. conductors. in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine government as the proper arbiter of such charges or rates. 1) Management Information Service. (g) Office of the Assistant Secretary for Telecommunications. The Department proper shall be responsible for developing and implementing policies. Undersecretary and Assistant Secretaries shall include the Department regional offices and the attached agencies and corporations referred to in Section 14 hereof. and for the deputation of appropriate law enforcement agencies in pursuance thereof.

governing water transportation and the Philippine merchant marine. the Department Regional Offices shall have within their respective administrative regions. and policies." Sec.Transportation. rules and regulations of the Department. and deputize the Philippine Coast Guard and other law enforcement agencies to effectively discharge these functions. The present Airport Offices of the Bureau of Air Transportation are hereby abolished and their functions are transferred to the Department Airport Offices. (b) Establish. 2. plans. 3. the Department Regional Office for Telecommunications and the Department Regional Office for Postal Services. 15 and 16 of said Executive Order are hereby deleted. (k) Establish and prescribe rules and regulations. (g) Undertake the issuance of licenses to qualified seamen and harbor. The abolition of the herein Regional Offices and the transfer of their functions shall be governed by the provisions of Section 15 (b) hereof. (f) Enforce laws. (h) Determine. (e) Perform such other functions as may be provided by law. (d) Register vessels as well as issue certificates. Each Department Regional Office shall be headed by a Department Regional Director and assisted by a Department Assistant Regional Director. (i) Accredit marine surveyors and maritime enterprises engaged in shipbuilding. The present Regional Offices of the Bureau of Posts are hereby abolished and their functions are transferred to the corresponding Department Regional Offices for Postal Services. policies. specifications and guidelines geared toward the promotion and development of the maritime industry. (d) Coordinate with local government units. 12. licenses or documents necessary or incident thereto. For such purposes. programs. and for the national security objectives of the country. (j) Issue and register the continuous discharge book of Filipino seamen. (c) Issue Certificates of Public Convenience for the operation of domestic and overseas water carriers. projects. Maritime Industry Authority. standards. . zones and/or areas of operation of particular operators of public water services. shiprepair. (e) Undertake the safety regulatory functions pertaining to vessel construction and operation including the determination of manning levels and issuance of certificates of competency to seamen. Sections 12. bay and river pilots. the growth and effective regulation of shipping enterprises. programs. The Department Regional Offices shall essentially be line in character and shall be responsible for the delivery of all front line services of the Department. Sec. prescribe and enforce rules and regulations. projects. The present Regional Offices of the Bureau of Telecommunications are hereby abolished and their functions are transferred to the respective Department Regional Offices for Telecommunications. prescribe and regulate routes. including penalties for violations thereof. (c) Coordinate with regional offices of other departments. The present Regional Offices of the Land Transportation Commission are hereby abolished and their functions are transferred to the respective Department Regional Offices for Land Transportation. facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates. Section 14 of said Executive Order is hereby renumbered as Section 12 and amended to read as follows: "Sec. fix and/or prescribe charges and/or rates pertinent to the operation of public water transport utilities. shipbreaking. 13. The Maritime Industry Authority is hereby retained and shall have the following functions: (a) Develop and formulate plans. standards and procedures for the efficient and effective discharge of the above functions. offices and agencies. and effective service to the people. domestic and overseas shipping ship management and agency. (b) Provide efficient. the following functions: (a) Implement laws.

This Executive Order shall take effect immediately upon its approval.(l) Perform such other functions as may now or hereafter be provided by law. 20. 24. nineteen hundred and eighty-seven. 16. 19. Inc. subject to the provisions of Section 15 (b) hereof. Philippines. (e) The Maritime Training Council's function of issuing certificates of competency to seamen under LOI 1404 is hereby transferred to the Maritime Industry Authority." Sec. Inc." Sec. 4. Done in the City of Manila. regulations. 21. Inc. 23. "Sec. in the year. The quasi-judicial powers and functions of the Commission are transferred to the Department. Section 28 of said Executive Order is hereby renumbered as Section 24. 23. 13. Presidential Decree No. All laws ordinances. 7. Sec. The Secretary of Transportation and Communications or his designated representative shall be the Chairman of the Board. 25 and 26 of said Executive Order are hereby renumbered as Sections 14. 6. 19. 22. (b) PNL Leasing. 890. of Our Lord. (c) The National Aero Manufacturing. Section 27 of said Executive Order is hereby renumbered as Section 23 and amended as follows. this 13th day of April. Sections 18. 15. is hereby abolished and its functions are transferred to Philippine National Lines. The Secretary of Transportation and Communications or his designated representative shall be the Chairman of the Board. rules. Section 17 of Executive Order No. Such transfer of functions is subject to the provisions of Section 15 (b) hereof. 18. Sec. 17. other issuances or parts thereof which are inconsistent with this Executive Order are hereby repealed or modified accordingly. are hereby abolished in accordance with the provisions of Section 15 (a) hereof. (d) The Civil Aeronautics Board is hereby transferred from the Department of Tourism to the Department as an attached agency in accordance with the provision of Section 15 (a) hereof. 5. Inc. 1985 are hereby repealed. 1011 dated March 20. 263 and 371 Executive Order No. . Repealing Clause. The corresponding position structure and staffing pattern shall be approved and prescribed by the Secretary pursuant to Section 16 hereof. Abolition/Transfer/Consolidation: (a) The Land Transportation Commission is hereby abolished and its staff functions are transferred to the service offices of the Department Proper and its line functions are transferred to the Department Regional Offices for Land Transportation as provided in Section 11 herein. 21 and 22. Letter of Instruction Nos. 125 is hereby renumbered as Section 13 and amended to read as follows: "Sec. 8. respectively. and the Philippine Aero Systems. 20." Sec.

the navigation of aircraft in furtherance of a business. operational.Republic of the Philippines
 Congress of the Philippines
 Metro Manila Fourteenth Congress
 First Regular Session Begun and held in Metro Manila. used in the aeronautical service. of an aircraft within the jurisdiction of the Philippines. appurtenances. the twenty-third day of July. departure and surface movement of aircraft. a defined area on land or water (including any building. radio or other systems or processes of signaling. or (2) The aircraft receives substantial damage (j) "Aircraft radio station" refers to a radio station on board any aircraft.For purposes of this Act. (i) "Aircraft accident" refers to an occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight until such time as all such persons have disembarked. as the person in command or as pilot. 9497 March 04. for propulsion of aircraft and includes all parts. 3. or by a lease or any other arrangements. the terms: (a) "Aerial work" refers to an aircraft operation in which an aircraft is used for specialized services such as agriculture. in which: (1) Any person suffers death or serious injury as a result of being in or upon the aircraft or by direct contact with the aircraft of anything attached thereto. Republic Act No. aerial advertisement. (h) "Aircraft" refers to any machine that can derive support in the atmosphere from the reactions of the air other than the reactions of the air against the earth's surface. installation and equipment) intended to be used either wholly or in part for the arrival. etc. (l) "Aircraft incident" refers to the occurrence. (f) "Air carrier or operator" refers to a person who undertakes. (n) "Airman" refers to any individual who engages. 2008 AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES. . by wire. search and rescue. (m) "Aircraft piracy" refers to any actual or attempted seizure or exercise of control. on Monday. (d) "Aeronautical telecommunication" refers to and includes any telegraph or telephone communication signs. (c) "Aeronautics or aviation" refers to the science and art of flight. writings. observation and patrol. The term "aircraft". to engage in air transportation services or air commerce. the promotion. (b) "Aerodrome" refers to an airport. shall refer to civil aircraft only. 2. the navigation of aircraft from one place to another for operation in the conduct of a business. surveying. whether directly or indirectly. – This Act shall be known as the Civil Aviation Authority Act of 2008. images and sounds of any nature. Definition of Terms. . safety. and will not include State or public aircraft. (g) "Air commerce or commercial air transport operation" refers to and includes scheduled or non-scheduled air transport services for pay or hire. SEC. two thousand seven. in the navigation of aircraft while under . when used in this Act or in regulations issued under this Act. (e) "Aeronautical telecommunication station" refers to any station operated to provide telecommunications for aeronautical purposes. mechanic. which is associated with the operation of an aircraft when the safety of the aircraft has been endangered. AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: CHAPTER I
 GENERAL PROVISIONS SECTION 1. or is a situation which could endanger an aircraft and if it occurred again in other circumstances. and aviation security functions under the civil aviation authority. other than an accident. Declaration of Policy. development and regulation of the technical. or intended to be used.It is hereby declared the policy of the State to provide safe and efficient air transport and regulatory services in the philippines by providing for the creation of a civil aviation authority with jurisdiction over the restructuring of the civil aviation system. AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR. or an aircraft operation involving the transport of passengers. signals. The term may likewise refer to either a "Philippine air carrier" or a "foreign air carrier" as indicated by the context. Short Title. or by any other form of intimidation. (k) "Aircraft engine" refers to any engine use. construction. aeronautical engineer. cargo or mail for remuneration or hire. with wrongful intent. flight radio operator or member of the crew. SEC. by force or violence. and accessories thereof other than propellers. photography.

such design and construction being consistent with accepted engineering practice and in accordance with aerodynamic laws and aircraft science. parts. (u) "Air route" refers to the navigable airspace between two points and the terrain beneath such airspace identified. or are capable of being or intended to be used. (bb) "Appliances" refers to instruments. or propellers. any apparatus or equipment for disseminating weather information. (x) "Air transport" refers to the transportation of persons. and any other structure or mechanism having a similar purpose for guiding or controlling flight in the air or the landing and take-off of aircraft. (q) "Air navigation facility" refers to any facility used in. maintaining. propellers. and the control of movement of vehicles in any part of an airport used for the movement of aircraft. operation. set apart or commonly used for affording facilities for affording facilities for the landing and departure of aircraft and includes any area or space. appurtenances. or by a lease or any other arrangement. search and rescue. or repair of aircraft. or appliances and individual who serves in the capacity of aircraft dispatcher or air traffic control operator. (o) "Airman license" refers to a written authorization or permission issued to any person for the exercise of the privileges of flying. propellers. property. and are safe for air navigation purposes. (r) "Air navigation services" refers to and includes information. are of proper design and construction. equipment. equipped. (y) "Air transport service" refers to the act of transporting persons. in whole or in part. whether directly or indirectly. property. aircraft engines. to the extent necessary. (v) "Air route and airway facilities" refers to facilities provided to permit safe navigation of aircraft within the airspace of air routes and airways. including: (1) Visual and non-visual aids along the air routes and airways (2) Visual and non-visual aids to approach and landing at airports. (cc) "Authority" refers to the Philippine Civil Aviation Authority created pursuant to the provisions of this Act . equipped or set apart for affording facilities for the landing and departure of aircraft capable of descending or climbing vertically. for radio directional finding.way and any individual who is directly in charge of inspection. its engines. which is designed. by aircraft to points within or outside of the Philippines. mail or cargo by aircraft. standardization and common understanding among all parties involved are essential in all matters affecting the operation of aircraft and the numerous facilities and services required in their support. or for radio or other electromagnetic communication. To ensure safety. maintenance. landing areas. telecommunications. lights. including alternate airports. available for use in. in accordance with the procedures. of whatever description. regularity and efficiency of civil aviation operations. directions and other facilities furnished. (z) "Airworthiness" means that an aircraft. air traffic services. for application of flight rules. in the navigation. rules and regulations contained in the appropriate Annexes to the Chicago Convention. or designed for use in aid of air navigation. (s) "Air operator" refers to any organization which undertakes to engage in domestic commercial air transport or international commercial air transport. whether on the ground. meteorology. instructing or any other civil aviation activity which is regulated and supervised by the Authority. for signaling. aeronautical information services and aeronautical charts. and other components and accessories. or accessories. dispatching. (p) "Air navigation" refers to the practice of controlling. navigation aids. including airports. (t) "Air Operator Certificate (AOC)" refers to a certificate authorizing an operator to carry out specified commercial air transport operations. aircraft engine. guiding and operating aircraft from airport of departure to predetermined airport of destination. (3) Communication services. (4) Meteorological observations. directing. on the roof of a building or elsewhere. which are used. controlling. (5) Air traffic control services and facilities and (6) Flight services and facilities. (w) "Airport" refers to any area of land or water designed. or control of aircraft in flight (including parachutes and including communication equipment and any other mechanism or mechanisms installed in or attached to aircraft during flight). and which are not part or parts of aircraft. such as airports. mail cargo. apparatus. (aa) "Annexes to the Chicago Convention" refers to the documents issued by the International Civil Aviation Organization (ICAO) containing the standards and recommended practices applicable to civil aviation. issued or provided in connection with the navigation or movement of aircraft. overhauling.

and shall, as indicated by the context, include the Board of Directors and/or Director General created pursuant thereto. (dd) "Aviation certificate" means any airworthiness certificate, airman certificate, air operator certificate, certificate authorizing the operation of an aviation school or approved maintenance organization or other document issued by virtue of the provisions of this Act in respect of any person, aircraft, airport or aviationrelated service. (ee) "Board of Directors" means the board of the civil aviation authority created under this Act. (ff) "Chicago Convention" refers to the international basis for civil aviation agreements. (gg) "Citizen of the Philippines" refers to one of the following: (i) An individual who is a citizen of the Philippines; (ii) A partnership of which each member is a citizen of the Philippines; or (iii) A corporation or association created or organized and authorized under the laws of the Philippines. (hh) "Civil aircraft" refers to any aircraft other than a State or public aircraft. . (ii) "Civil aviation" refers to the operation of any civil aircraft for the purpose of general aviation operations, aerial work or commercial air transport operations. (jj) "Crew member" refers to a person assigned to perform duties on an aircraft in flight. (kk) "Dangerous goods" refers to articles or substances that are capable of posing significant risks to health or safety of property when transported by air. (ll) "Director General" refers to the Director General appointed under this Act. (mm) "Domestic air commerce" means and includes air commerce within the limits of the Philippine territory. (nn) "Domestic air transport" means air transportation within the limits of the Philippine territory. (oo) "Foreign air carrier or foreign air operator" meane any operator, not being a Philippine air operator, which undertakes, whether directly or indirectly or by lease or any other arrangement, to engage in commercial air transport operations within borders or airspace of the Philippines, whether on a scheduled or chartered basis. (pp) "Foreign air transport" refers to air transportation between the Philippines and any place outside it or wholly outside the Philippines. (qq) "General aviation operation" refers to an aircraft operation of a civil aircraft for other than a commercial air transport operation or aerial work operation. (rr) "ICAO." Where used in this Act, refers to the abbreviation for the International Civil Aviation Organization. (ss) "International commercial air transport" refers to the carriage by aircraft of persons or property for remuneration or hire or the carriage of mail between any two (2) or more countries. (tt) "Navigable airspace" refers to the airspace above the minimum altitudes of flight prescribed by regulations under this Act and includes airspace needed to insure safety in the take-off and landing of aircraft. (uu) "Navigation of aircraft" refers to a function that includes the piloting of aircraft. (vv) "Person" refers to any individual, firm, partnership, corporation, company, association, joint-stock association, or body politic, and includes any trustee, receiver, assignee, or other similar representative of these entities. (ww) "Philippine air carrier" means an air carrier who is a citizen of the Philippines. (xx) "Philippine aircraft" means an aircraft registered in the Philippines in accordance with the requirements of this Act. (yy) "Propeller" refers to an inclusive term for all parts, appurtenances, and accessories of a propeller. (zz) "Public aircraft" refers to an aircraft used exclusively in the service of any government or of any political jurisdiction thereof, including the Government of the Philippines, but not including any government-owned aircraft engaged in operations which meet the definition of commercial air transport operations. (aaa)"Rules of the air" means those provisions for securing the safety of aircraft in flight and in movement on the surface and the safety of persons and property on the surface. These provisions include: (1) Lights and signals to be shown by aircraft; (2) General, visual and instrument flight rules; (3) Airport traffic rules; and (4) Airport signals and markings (bbb)"Spare parts" refers to any parts, appurtenances, and accessories of aircraft (other than aircraft engines and propellers), aircraft engines (other than propellers), propellers, and appliances, maintained for

installation or use in an aircraft, aircraft engine, propeller, or appliance, but which at the time are not installed therein or attached thereto. (ccc) "Special aircraft jurisdiction of the Philippines." This includes: (i) Civil aircraft of the Philippines; and (ii) Any other aircraft within the jurisdiction of the Philippines, while the aircraft is in flight, which is from the moment when all external doors are closed following embarkation until the moment when one such door is opened for disembarkation or, in case of a forced landing, until the competent authorities take over the responsibility of the aircraft and the persons and property aboard. (ddd) "Validation" refers aboard to the written acceptance of an action of the civil aviation authority of another country in lieu of an action that this Act assigns to the Director General. (eee) "Landing fees" refers to all charges for the use of any landing strip or runway by any aircraft landing or taking off at an aerodrome. (fff) "Terminal fees" refers to charges far parking at or near the ramp, terminal area, or building, for purposes of loading or unloading passengers and/or cargo. (ggg) "Royalties" refers to all charges based on gross business or sales, or gross or net profit. (hhh) "Supplies" includes any and all items of whatever nature or description which may be necessary for, or incidental to, the operation of an aircraft. CHAPTER II
 ORGANIZATION OF AUTHORITY SEC. 4. Creation of the Authority. - There is hereby created an independent regulatory body with quasijudicial and quasi-legislative powers and possessing corporate attributes to be known as the Civil Aviation Authority of the Philippines (CAAP), hereinafter referred to as the "Authority" attached to the Department of Transportation and Communications (DOTC) for the purpose of policy coordination. For this purpose, the existing Air Transportation Office created under the provisions of Republic Act No. 776, as amended, is hereby abolished. Notwithstanding the foregoing, nothing in this Act shall diminish the powers and functions of the Civil Aeronautics Board (CAB) as provided for under Republic Act. No. 776, also known as "The Civil Aeronautics Act of the Philippines", as amended. (a) Establishment of Authority Headed by a Director General - The Authority shall beheaded by a Director General of Civil Aviation, referred to in this Act as the "Director General," who shall be appointed by the President of the Philippines and shall be responsible for all civil aviation in the Philippines and the administration of this Act. The Director General shall be appointed based on the qualifications herein provided and shall have a tenure of office for a period of four (4) years. His appointment may be extended for another non-extendible term of four (4) years and shall only be removed for cause in accordance with the rules and regulations prescribed by the Civil Service Commission. (b) Responsibility of the Director General - The Director General shall be responsible for the exercise of all powers and the discharge of all duties of the Authority and shall have control over all personnel and activities of the Authority. SEC. 5 . Composition of the Board Members. - The corporate powers of the Authority shall be vested in a board, which is composed of seven (7) members: (a) The Secretary of the Department of Transportation and Communications shall act as chairman ex officio; (b) The Director General of Civil Aviation (DGCA) shall automatically be the vice chairman of the Board; (c) The Secretary of Finance; (d) The Secretary of Foreign Affairs; (e) The Secretary of Justice; (f) The Secretary of the Interior and Local Government; and (g) The Secretary of the Department of Labor and Employment. The Directors listed under subsection (a) to (g) shall be ex officio members of the Board of Directors: Provided, That, in the absence of the Director appointed in subsections (c) to (g), the Director concerned shall designate the officer next in rank to him in his department or office to act on his behalf as a Director. SEC. 6. Prohibited Interests. - All members of the Board or any of their relatives within the fourth civil degree of consanguinity or affinity, legitimate or common law, shall be prohibited from holding any interest whatsoever, either as investor, stockholder, officer or director, in any company or entity engaged in air commerce, whether scheduled or unscheduled, passenger or cargo, domestic or international, or in any business providing support services to persons engaged in air commerce (i.e. general sales agencies, travel agencies, cargo forwarders, ground handling, catering, fuel servicing, aircraft maintenance, etc.) and must

therefore divest, through sale or legal disposition, of any and all interests in such undertakings upon the member's assumption of office. Any violation of this section shall subject the member concerned to removal from the Authority for cause as well as administrative, civil or criminal prosecution under applicable laws. SEC. 7. Limitation of Subsequent Employment. - No member of the Board or any employee of the Authority shall accept employment or enter into a contract of service with an entity regulated by the Authority until the expiry of one (1) year from the termination of his appointment, whether by resignation or revocation or otherwise. SEC. 8. Quorum. - The presence of at least four (4) members of the Board shall constitute a quorum and the majority vote of three (3) members in a meeting where a quorum is present shall be necessary for the adoption of any rule, ruling, order, resolution, decision or other act of the Board in the exercise of its functions. SEC. 9. Qualifications of Director General. - No person shall be appointed or designated as the Director General unless he is a Filipino citizen, at least thirty-five (35) years of age, of good moral character, unquestionable integrity, recognized competence and a degree holder with at least five (5) years supervisory or management experience in the field of aviation. SEC. 10. Board Meetings. - The Board shall meet regularly once a month and may hold special meetings to consider urgent matters upon call of the Chairman or upon the initiative of four (4) members. Internal rules of procedure in the conduct of Board meetings shall be as prescribed by the Board. SEC. 11. Per Diems. - The members of the Board shall receive a per diem for each meeting actually attended. The per diems of the members of the Board shall be determined pursuant to a resolution adopted by the Board subject to compliance of the guidelines duly existing and applicable by the Commission on Audit. SEC. 12. Personnel. - Qualified existing personnel of the Air Transportation Office (ATO) shall be given preference in the filling up of plantilla positions created in the Authority, subject to existing civil service rules and regulations. SEC. 13. Principal Office. - The Authority shall have its principal office in Metro Manila and may hold hearings on any proceedings at such time and places within the Philippines, as it may provide by order in writing. SEC. 14. Capitalization. - The Authority shall have an authorized capital stock of Fifty billion pesos (Php50,000,000,000.00) which shall be fully subscribed by the Republic of the Philippines. The subscription of the National Government shall be paid as follows: (a) The unexpended balances of appropriations in the current General Appropriations Act and other acts in force upon approval hereof, pertaining to, held or used by, the ATO, (b) The value of existing assets of the ATO, which shall be determined by an independent and qualified appraiser or appraisers within six (6) months from the effectivity of this Act, and after deducting the loans and other liabilities of the ATO at the time of the takeover of the assets and properties; and (c) Such amounts as may be appropriated from time to time from the funds of the National Treasury, including any outlay from the infrastructure program of the National Government. SEC. 15. Fiscal Autonomy. - The Authority shall enjoy fiscal autonomy. All moneys earned by the Authority from the collection/levy of any and all such fees, charges, dues, assessments and fines it is empowered to collect/levy under this Act shall be used solely to fund the operations of the Authority. The utilization of any funds coming from the collection and/or levy of the Authority shall be subject to the examination of the Congressional Oversight Committee. SEC. 16. Exemption from Taxes, Customs and Tariff Duties. - (a) The importation of equipment, machineries, spare parts, accessories and other materials including supplies and services used solely and exclusively in the operations of the Authority not obtainable locally shall be exempt from all direct and indirect taxes, wharfage fees and other charges and restrictions, the existence of pertinent laws to the contrary notwithstanding. (b) All obligations entered into by the Authority and any income derived therefrom, including those contracted with private international banking and financial institutions, shall be exempt from all taxes, both principal and interest. The Authority is also exempt from the payment of capital gains tax, documentary stamp tax, real property estate tax and all other local government-imposed taxes and fees. SEC. 17. Schedule of Fees and Charges. - The Authority shall adopt and publish its schedule of fees and charges. The Authority shall hold such public hearings or consultative meetings with stakeholders in the industry before adapting its schedule of fees and charges. The Authority shall not revise its schedule of fees and fines more often than once every three (3) years.

19.The Authority shall prepare and submit an annual report to the President of the Philippines. among other things. (e) To execute any deed of guarantee. (d) To raise money. agency and with international institutions or foreign government. as being in the public interest and in accordance with the public convenience and necessity: (a) The development and utilization of the air potential of the Philippines. rules and regulations. SEC. institutions. Corporate Powers. credit and issue commercial papers and bonds. (f) To construct. amend or repeal its bylaws. whether personal or real. trust or assignment of any property for the purpose of financing the programs and projects deemed vital for the attainment of its goals and objectives. donations. (h) To invest its funds and other assets in such areas. (i) To settle. . local or national government office. Policies. domestic or foreign private firm. bequests. grants. the Authority shall consider the following. (c) The regulation of air transportation in such manner as to support sound economic condition in such transportation and to improve the relations between air carriers. hold. and to encumber. to carry out the purposes of this Act. with any person. and projects as it may deem wise. to the Senate and to the House of Representatives on its accomplishments at the close of each calendar year. acting through the Board. 18. firms. kind and description. and affordability of air transport services for the riding public.SEC. and interests therein. or alienate or otherwise dispose the same at the fair market value it may deem appropriate. acquire. from private and public sources. Compensation and Other Emoluments of Authority Personnel. equipment. other infrastructure. Powers and Functions. the Board shall determine the new schedule of salaries of the employees of the Authority subject to the compliance with the existing compensation laws: Provided. pledge. CHAPTER III
 GENERAL POLICIES SEC. maintain. own. property rights. mortgage. records. . which are necessary or incidental to the realization of its purposes.The Authority shall have such powers as are granted to the Board and the Director General under the provisions of this Act. indebtedness.In the exercise and performance of its powers and duties under this Act. in any local or convertible foreign currency from any other international financial institutions under terms and conditions prescribed by law. (b) To adopt. (c) To enter into. 20. That the Board shall determine and fix the compensation and fringe benefits of employees holding technical positions that are not common to the other agencies of the government which shall be specified in the Implementing Rules and Regulations. and international institutions. . under such terms and conditions most advantageous to it. domestic and foreign governments. sell. which shall be judicially noticed. as are necessary or convenient in connection with the performance of its functions. (d) Ensuring the safety. make. to lease its plant. and to adopt. contract loans. administer and lease personal and real properties. (g) To receive gifts. 22. That no real property thus acquired and any other real property shall be sold without the approval of the President of the Philippines. . ventures. 23. reliability. and (k) To perform such other acts. and assistance of all kinds. equipment or goods not immediately required by it: Provided. operate. any claim by or against it. Annual Report.The funds and appropriations. services. and utilize the same for the purposes set forth in this Act. agricultural land. properties.Within six (6) months from the effectivity of this Act. equipment and property of the AT0 is hereby transferred to the Authority. use and alter its corporate seal. as well as the forms and contents of its contracts and other business documents. dispose. mortgage. machinery. CHAPTER V
 POWERS AND FUNCTIONS OF THE BOARD . (j) To determine and keep its own system of accounts following generally accepted principles of accounting. SEC. . perform and carry out contracts of every class. shall have the following corporate powers: (a) To succeed in its corporate name. quality. machinery. SEC. and (e) The encouragement and development of a viable and globally competitive Philippine aviation industry. CHAPTER IV
 POWERS OF THE AUTKORITY SEC.The Authority. (b) The encouragement and development of an air transportation system properly adapted to the present and future of foreign and domestic commerce of the Philippines. and its improvements. or corporation. . including buildings. 21. to sue and be sued in such corporate name. Transfer of Properties.

subject to the requirements of existing laws. (f) Exercise appellate powers to order the taking of depositions in any proceeding. air traffic services. pending before the Board at any stage of such proceeding or investigation. (k) Impose and fix reasonable charges and fees for the use of government aerodromes or air navigation facilities. air carrier operating certificates. direct or indirect. other royalties. facilitation of air transports. parking space fees. (l) Fix the reasonable charges to be imposed in the use of privately-owned air navigation facilities and aerodromes. and adopt a rational compensation and benefits scheme. height of buildings. air agency certificates. to any aircraft for its use of aviation gasoline. as provided for in this Act. (j) Promulgate rules and regulations as may be necessary in the interest of safety in air commerce pertaining to the issuance of the airman's certificate including the licensing of operating and mechanical personnel. aerodromes. identification of aircraft. Powers of the Board. rules of the air. operations of aircrafts. 24. for services rendered by the Authority in the rating of any aerodrome or air navigation facilities. governing other practices. spare parts. papers. establish a human resources management system based on merit and fitness. (g) Use available services. civil aviation schools and instructors. and such other rules and regulations. grant exemption from the requirements of observing rules or regulations issued in accordance with this Act: Provided. on a reimbursable basis when appropriate and. efficient and effective manner. both public and private-owned. (o) Approve the annual and supplementary budget plan and utilization of retained revenue. air traffic routes. to co-operate with those agencies in the establishment and use of services. type certificate for aircraft. propellers and appliances. The Board shall designate the officials authorized to deposit in or withdraw funds from such depository banks. oil and lubricants. . and aircraft radio and aeronautical telecommunications stations. contracts. tools. (b) Ensure that the Authority performs its functions in a proper. registration of aircrafts.The Board shall have the following general powers: (a) Provide comprehensive policy guidance for the promotion and development of the Philippine aviation industry. royalties on sales or deliveries. navigation facility and aerodrome certificates. search and rescue. (n) Determine and fix. (e) Exercise appellate powers on any decisions. papers. . (h) Use the property of the Authority in such a manner as may appear to the Authority to be requisite. (p) Exercise the corporate powers granted to the Authority. (d) Determine the organizational structure of the Authority in accordance with the provisions of this Act. meteorology in relation to civil aviation. or other immediate obligations in any business venture the Board may deem appropriate. That said grant of exemption is not prejudicial to flight safety. (q) Upon its own initiative or the recommendation of the Director General or an application of a private person. (c) Decide the objectives. or investigation. landing fees. aircraft repair stations. including scheduled and non-scheduled. government securities. advantageous or convenient with a view to making the best use of any of the property of the Authority in relation to its functions under this Act. standards. Funds of the Authority shall be deposited in such commercial and universal banks as the Board may determine. personnel and facilities of other agencies of the Philippine Government. findings and rulings of the Director General. aircraft accident inquiries. both for domestic and international. equipment and facilities of the Authority. aircraft engines. rules for prevention of collision of aircrafts. antennae and other edifices. rules for safe altitudes of flight.SEC. on a similar basis. airworthiness certificates. strategies and policies of the Authority in accordance with the provisions of this Act. (i) Invest such of the Authority's funds that are not immediately required for operating expenses. (m) Adopt a system for the registration of aircraft as hereinafter provided. tariffs. accessories and supplies. methods and/or procedures as the Director General may find necessary and appropriate to provide adequately for safety regularity and efficiency in air commerce and air navigation. agreements and all other documents submitted for purposes of this section to be under oath and verified by the person in custody thereof as to the truth and correctness of data appearing in such books. construction of obstructions to aerodromes. radio and aeronautical telecommunications and air navigation aids. and other negotiable instruments that satisfy the guidelines prescribed by the Board. fees or rentals for the use of any of the property under its management and control. or in such secured note. agreements and all other documents. to issue subpoena ad testificandum or subpoena duces tecum requiring the attendance and testimony of witnesses in any matter or inquiry pending before the Board and require the production of books. contracts. equipment.

mitigate. shall: (1) Prescribe reasonable regulation requiring that all passengers and all property intended to be carried in the aircraft cabin in commercial air transport be screened by weapon-detecting procedure or facilities employed or operated by employees or agents of the air operator or foreign air operator prior to boarding the aircraft for such transportation. increase or compromise. dues or assessments in respect of aviation certificates. SEC. (b) Confirm. .The Board. corporations or partnerships in default. employee. as the case may be. authorize the performance by any officer. rules and regulations as may be necessary to give effect to the provisions of this Act. . amend or reverse. fees. Issuance of Rules of Procedure and Practice. supervision and review as may be prescribed. modify. and search of persons and property in domestic commercial air transport and international commercial air transport to assure their safety and to assure that they will receive courteous and efficient treatment by air operators and their agents and employees. 26. 29. and (3) To the extent practicable. or those who have failed to perform their obligations pursuant to rules and regulations promulgated under this Act. Employees and Administrative Units of the Authority . . or administrative unit under the Director General's jurisdiction of any function under this Act. Pending the promulgation of such new schedule of charges and fees. detention. SEC.(r) Formulate rules and regulations concerning compliance of the carrier and the public for the safe transport of goods and materials by air pursuant to international standards or Annexes to the Chicago Convention. shall issue and provide for the enforcement of such orders. decisions. judgment or order of the Director General. in consultation with the Director General. revise. confirm. methods and procedures as the Director General may find necessary to protect persons and property aboard aircraft operating in commercial air transport against acts of criminal violence and aircraft piracy. . Pending the promulgation of such new rules and regulations. impositions by the Director General of liens on personal and real properties of entities. and (c) Review. Power to Administer Oaths. fines imposed by the Director General pursuant with the provisions of this Act. the current rules and regulations of the AT0 shall continue to apply. the current charges and fees of the AT0 shall continue to apply. Issuance of Rules and Regulations. . (2) Prescribe such other reasonable rules and regulations requiring such parties.The Director General may. Appellate Powers. persons. the Director General and such other duly designated officers of the Authority shall have the authority to administer oaths in the transaction and performance of their official duties. current rules of procedures and practices of the AT0 shall continue to apply.(a) Delegation to Officers. fix. subject to such regulations. confirm. In such case. SEC. it requires four (4) concurring votes of the members of the Board who actively participated in the deliberation of the appealed case before the judgment or decision of the Director General can be modified or reversed.The Board shall adopt an annual budget to fund the operations of the Authority. Pending the promulgation of such new rules of procedures and practice. impose. 28. 30.The Board may authorize the Director General to issue or amend rules of procedures and practice as may be required to be issued pursuant to the provisions of this Act or issue and adopt rules and regulations and other issuances of the ICAO. licenses and all other authorizations or permissions authorized to be issued under this Act and all services performed by the Authority. remit. or those who shall have failed to pay the fines or other pecuniary penalties for violation thereof. SEC. SEC. collect or receive reasonable charges. . Annual Budget. as the case may be. after consultation with the Director General. Setting of Charges and Fees. .The Board.The members of the Board. shall have the power to: (a) Review. . revise. 27.The Board. Delegation of Functions. and after public hearing. 25. modify. amend or reverse. All rules and regulations issued in accordance with the provisions of this Act shall be formally promulgated and periodically reviewed and updated in accordance with the requirements of the Administrative Code of the Philippines or any amendment or successor thereto and the International Civil Aviation Organization Standards and Recommended Practices. shall determine. require uniform procedures for the inspection. on an appeal properly taken by an interested party from a decision. judgments and/or orders of the Director General. 31. SEC. All charges and fees shall be formally promulgated in accordance with the requirements of the Administrative Code of the Philippines or any amendment or successor thereto. SEC. as the case may be. and (s) In coordination with the appropriate government agency tasked to provide airport security. In no case that the Director General shall participate in the hearing and adjudication of an appealed case before the Board where the subject of appeal is a judgment or decision rendered by his office.

conditions and limitations as the Director General may determine to be necessary to assure safety in air commerce: Provided. in consultation with the Director General. Limitation of Powers. duties and responsibilities: (a) To carry out the purposes and policies established in this Act. Training Schools. any power or function that properly falls within the authority.The Director General shall be the chief executive and operating officer of the Authority. neither shall the Board exercise. The air carrier operating certificate shall be issued only to aircrafts registered under the provisions of this Act. . CHAPTER VII
 THE DIRECTOR GENERAL SEC. The certificate shall contain such terms. (b) Offset of Training Costs . the selection and appointment of the heads of the foregoing offices shall be limited from the rank and file employees of the concerned services. That the airman's license shall be issued only to qualified persons who are citizens of the Philippines or qualified citizens of countries granting similar rights and privileges to citizens of the Philippines. regulate themselves. The Director General may also authorize attendance of courses given in such schools by other governmental personnel and personnel of foreign governments. . 34. and such other terms and conditions and limitations as are required.The Director General.(b) Delegation to Private Persons . to require payment of appropriate consideration to offset the costs of training provided by such school or schools.The Director General may conduct a school or schools for the purpose of training employees of the Authority in those subjects necessary for the proper performance of all authorized functions of the Authority. aerial work or general aviation operators and maintenance facilities. . (d) To issue airworthiness certificate for aircraft which shall prescribe the duration of such certificate. (c) To issue airman's certificate specifying the capacity in which the holder thereof is authorized to serve as airman in connection with aircraft and shall be issued only upon the finding that the applicant is properly qualified and physically able to perform the duties of the position. 35. the type of service for which the aircraft may be used. the Board shall establish the following permanent offices: (a) Air Traffic Service. However. in the first instance. supplies or assistance of existing agencies of the government as far as practicable. to enforce the provisions of the rules and regulations issued in pursuance to said Act.(a) Authority to Operate . jurisdiction. shall meet to draw-up the Authority's organizational structure. powers or functions of the Director General. regulation. and he shall primarily be vested with authority to take charge of the technical and operational phase of civil aviation matters. 33.The Director General is hereby authorized. He shall have the following powers. where appropriate. Organizational Structure of the Authority. and (d) Administrative and Finance Service. is authorized to delegate any assigned powers and duties to any properly qualified private person subject to his continuing supervision. and review as may be prescribed. The Board shall agree on the Authority's final organizational structure not later than six (6) months from the date of the effectivity of this Act. navigation facilities and to chart such airways and arrange for their publication including the aeronautical charts or maps required by the international aeronautical agencies. however. Powers and Functions of the Director General. in accordance with the policy guidelines prescribed by the Board. SEC. 32. (e) To issue air carrier operating certificate in accordance with the minimum safety standards for the operation of the air carrier to whom such certificate is issued. In addition to the offices created under Sections 36 and 40 of this Act. (b) To designate and establish civil airways. (c) Aerodrome Development and Management Service. by utilizing the equipment. . or personnel of the aeronautical industry. CHAPTER VI
 THE AUTHORITY PROPER SEC.Within fifteen (15) days from the appointment of and acceptance by all members of the Board and the Director General of their respective appointments. (b) Air Navigation Service. the Director General shall ensure that such functions are not delegated in such a way that air operators. SEC. the Board. in effect. operate and maintain along such airways. The Board may agree for the viability for the creation of additional offices and the finalization of the organizational structure not later than six (6) months from the date of the effectivity of this Act.The Board shall not exercise any power or function not otherwise expressly granted to it under this Act. control. Notwithstanding the qualification standards as may be prescribed by the Board and the Civil Service Commission. . to acquire.

(t) To grant authorization to civil aircraft or persons to carry instruments or photographic devices to be used for aerial photography or taking of pictures by photograph or sketching of any part of the Philippines. aircraft engines. assist and coordinate with any research and technical agency of the government on matters relating to research and technical studies on design. convention or agreement on civil aviation matters. (m) To collect and receive charges and fees for the registration of aircraft and for the issuance and/or renewal of licenses or certificates for aircraft. expeditious. cancelling. evidence. a permanent office within the Authority to be known as the Enforcement and Legal Service.(f) To issue type certificate for aircraft. the attendance and testimony of witnesses. revoking the certificate or license may he appealed to the Board. suspend. to require by subpoena ad testificandum or subpoena duces tecum. (n) To impose fines and/or civil penalties in respect thereto. to enter into. supervisory and administrative mandates of the Director General under this Act. classify and rate any air navigation facilities and aerodromes available for the use of aircraft as to its suitability for such use and to issue a certificate for such air navigation facility and aerodrome. deny. and easy navigation. and (u) Pursuant to a board resolution. (o) To participate actively with the largest possible degree in the development of international standardization of practices in aviation matters important to safe. and other air agencies and provide for the examination and rating thereof. and to provide for direct communication on all matters relating to the technical or operational phase of aeronautics with international aeronautical agencies: (k) To acquire and operate such aircraft as may be necessary to execute the duties and functions of the Authority prescribed in this Act. or public or private corporation. and to implement as far as practicable the international standards. as a whole. materials. license pertaining to aircraft. appliances. and air navigation facilities including aircraft fuel and oil: Provided. suspending. information pertaining to civil aeronautics. performance. air navigation facilities as well as air routes to be used prior to the operation of Philippine-registered aircraft in foreign air transportation and from time to time thereafter as may be required in the interest of safety in air commerce. maintenance and operation of aircraft. (r) To designate such prohibited and danger areas. recommended practices and policies adopted by appropriate international aeronautical agencies. (p) To exercise and perform its powers and duties under this Act consistent with any obligation assumed by the Republic of the Philippines in any treaty. in the exercise of quasi-legislative and quasi-judicial power as provided for under this Act. operate. papers. exhibits matter. design. (i) To provide for the enforcement of the rules and regulations issued under the provisions of this Act and to conduct investigation for violations thereto. construction. documents. In undertaking such investigation. aircraft engine. make and execute contracts of any kind with any person. activities or technical studies of any existing governmental agency. (h) To issue certificates of persons or civil aviation schools giving instruction in flying. in consonance with the requirements of the international aeronautical agencies and national security. (l) To plan. (s) To issue. cancellation or revocation. That nothing in this Act shall be construed to authorize the duplication of the laboratory research. . The Office of Enforcement and Legal Service. acquire. 36. propellers and appliances. and to determine the suitability of foreign aerodromes. or the taking of depositions before any person authorized to administer oath.To effectively implement the civil aviation regulatory. aircraft engines. propellers and appliances. improve. and repair necessary aerodromes and other air navigation facilities. subpoenaduces tecum and the imposition of any administrative sanction shall be within the exclusive determination and . That any order denying. The exercise of the function by the Director General to issue subpoena ad testificandum. maintain. airmen and air agencies: Provided. and airmen as provided in this Act. Refusal to submit the reasonable requirements of the investigation committee shall be punishable in accordance with the provisions of this Act. cancel or revoke any certificate. repair stations. to exchange with foreign governments. the production of books. establish. (g) To inspect. workmanship. construct. whose decisions shall he final within fifteen (15) days from the date of notification of such denial. to be composed of in-house counsels of the Authority and its necessary support staff shall be established by the Board. firm. propellers. This office shall provide adequate legal assistance and support to the Director General and to the Authority. (q) To cooperate. (j) To collect and disseminate information relative to civil aeronautics and the development of air commerce and the aeronautical industry. SEC.

subject to this Act. rules and regulations of the Director General shall take effect within such reasonable times as the Director General may prescribe. other than the offices it shall create in furtherance of this Act. rule or regulation. or (2) The airman may not be qualified or physically or mentally capable for the flight. Furthermore. whether privately or government-owned.recommendation of the Enforcement and Legal Service. to make such just and reasonable orders. rule or regulation. either upon complaint or the Director General's initiative without complaint. 41. Right of Access for Inspection. SEC. (2) Flight operations inspection and evaluation. if the Director General so orders. (c) The Director General or his authorized representative shall be authorized access by the Philippine air operators at any place and any time to conduct any tests or inspections in their facility or offices in order to determine that those operations are conducted in accordance with this Act and applicable regulations and directives. all orders. or certificate issued by the Director General under this Act. SEC. . at once. Authority to Prevent Flight.(a) Effectiveness of Orders . . as shall be prescribed in the order.The Director General shall have the power to suspend or modify orders upon such notice and in such manner as the Director General shall find proper. including aerodromes. SEC. to conduct inspections or evaluation of the facilities therein in order to determine that its operations are conducted. rule. regulation.(a) The Director General or his authorized representative shall be authorized access to civil aircraft. SEC. the following offices which will provide support to the functions of the FSIS. and (3) Personnel licensing. Validation. the Board shall create. 38. with the following restrictions: (a) For actions on airman or airworthiness certificates. (b) Emergencies . or for a specified period of time. Aircraft Engineering and Standards. (c) Suspension and Modification of Orders .Except in emergency situations. The FSIS shall perform the following functions: (1) Airworthiness inspection. . the Director General shall have the power. but not limited to. or (3) The operation would cause imminent danger to persons or property on the ground. 40. without restriction wherever they are operated within the Philippines for purposes of ensuring that those aircraft are airworthy and being operated in accordance with this Act. (b) The Director General or his authorized representative shall be authorized access to civil aircraft registered in the Philippines without restriction wherever they are operated in the world for the purposes of ensuring that these aircraft are airworthy and are being operated in accordance with this Act and applicable regulations and directives. 39.(a) The Board. Orders. to validate the actions of the civil authority of another State in lieu of taking the specific action. Airmen Examination Board and Office of the Flight Surgeon. and applicable ICAO Annexes. or the making or filing of a report. (b) The Director General may take such steps as are necessary to detain such aircraft or airmen. rule or regulation. shall establish a permanent office known as the Flight Standards Inspectorate Service (FSIS) that will assist the Director General in carrying out the responsibilities of his office for certification and ongoing inspections of aircraft.It shall be the duty of every person (along with any agents and employees thereof in the case of entities other than individuals). . without answer or other form of pleading by the interested person or persons. rules or regulations as may be essential in the interest of safety in civil aviation to meet such emergency: Provided. namely: Aircraft Registration. SEC. (d) Public Compliance . Creation of Flight Standards Inspectorate Service. (d) The Director General or his authorized representative shall be authorized access to any aerodromes.The Director General is authorized. to observe and comply with any order.(a) The Director General is authorized to direct the operator or airman of a civil aircraft that the aircraft is not to be operated in situations where: (1) The aircraft may not be airworthy. . and with or without notice. in the discharge of his certification and inspection responsibilities. the other State must be a signatory to the Chicago . regulations issued under this Act.Whenever the Director General is of the opinion that an emergency requiring immediate action exists with respect to safety in civil aviation. 37. airmen and air operators. and shall continue in force until a further order. affecting such person so long as the same shall remain in effect. That the Director General shall immediately thereafter initiate proceedings relating to the matter giving rise to any such order. hearing.

P. (b) Establish and maintain a system for the registration of liens. Eligibility for Registration. foreign-owned or registered aircraft may be registered if utilized by members of aero clubs organized for recreation. to be composed of personnel of the Authority specialized in the various disciplines of civil aviation. conditions and circumstances relating to each accident and the probable cause thereof. the investigation of an accident involving aircraft occurring within military sites in the Philippines. 43. but not in any proceeding under the laws of the Republic of the Philippines. (e) Use as Evidence . 504) Such certificate shall be conclusive evidence of nationality for international purposes. shall be admitted as evidence or used in any suit or action for damages arising out of any matter mentioned in such report or reports except when the criminal liabilities/aspects of the accident is put into issue. . 42. (a) Reporting of Accidents . 1278. or other arrangemest between the Philippines and the country in whose territory the accident occurred. 546. accidents involving aircraft occurring in the Philippines and civil aircraft registered in the Fhilippines occurring outside the territory of any foreign country for the purpose of determining the facts. will tend to prevent similar accidents in the future. That. and. . . when validation is based on the actions of another civil aviation authority. and (b) For actions applicable to air operators. or the investigation thereof. except in a proceeding where such ownership is.No part of any report or reports of the Director General relating to any accident. (R. and B.Notwithstanding any other provision of this section. on the basis of the findings of the accident investigations authorized under this section. shall be the responsibility of the military. The Board shall appoint the head of the AAIIB. (c) Accident Prevention . The Director General should ensure that. SEC.Except as provided in subsection c of this section. SEC. no aircraft shall be eligible for registration unless it is owned by or leased to a citizen or citizens of the Philippines or corporations or associations organized under the laws of the Philippines at least sixty per centum (60%) of whose capital is owned by Filipino citizens. or an accident involving solely an aircraft of the armed forces of any foreign country occurring in the Philippines. at issue.Except as otherwise provided in the Constitution and existing treaty or treaties. the term 'military sites' means those areas within the Philippines which are under the control of the military of the Philippines or the military of another country. (d) Investigation of Accidents Within Military Sites . the Director General shall organize an Aircraft Accident Investigation and Inquiry Board (AAIIB). For the purpose of this subsection. Establishment of Registry. The certificate of registration is conclusive evidence of ownership. air and water. consistent with any treaty.D.P. that. there is no information to indicate that the State does not meet its obligations under the Chicago Convention regarding certification and ongoing validation of its air operators. in the judgment of the Director General.Pending the establishment of an independent and separate government agency created to conduct investigation of accidents on land. the Director General shall have: (1) The power to investigate. Aircraft Accident Investigation and Inquiry Board. or arrange by contract or otherwise for the investigation of. and (c) Have sole authority to register aircraft and liens. mortgages or other interests in aircraft or aircraft engines.The Director General shall take any corrective actions which. E.A. or may be. convention. CHAPTER VIII
 NATIONALITY AND OWNERSHIP OF AIRCRAFT SEC. sport or the development of flying skills as a prerequisite to any aeronautical activities of such clubs within the Philippine airspace. . the Director General must exercise discretion and require supporting documents. under such rules and regulations to be promulgated by the Board. (b) General Authority to Investigate . and (2) The authority to participate in the investigation of accidents involving aircraft registered in the Philippines occurring outside the territory of a foreign country.Convention and he fulfilling its obligations under the Chicago Convention with respect to the issuance and currency of these certificates. mortgages or other interests in aircraft or aircraft engines. 44. 776.The Board shall promulgate rules and regulations governing the notification and the reporting of accidents and incidents involving aircraft. agreement.O.The Authority shall: (a) Establish and maintain a system for the national registration of aircraft in the Philippines.

regulations. his heirs. upon considering the application for registration. . and (f) All particular estates. SEC. 47. Revocation. . . and in issuing certificates under this Act. and any person having actual notice thereof. Issuance of Certificate of Registration. unless the document is registered in such recording system. . (b) the specification. . in files kept for that purpose. orders and other encumbrances and all decrees. 55. Any instrument. liens. The conveyance to be recorded shall also state: (a) the interest in the aircraft of the person by whom such conveyance is made or executed or. CHAPTER IX
 AVIATION SAFETY POWERS AND FUNCTIONS SEC. mortgages. 46. and (2) Such other reasonable rules. 54. construction and technical description of the aircraft or aircraft engine. or spare parts shall be valid except as between the parties thereto.Any certificate of registration may be revoked by the Authority for any cause which renders the aircraft ineligible for registration. (b) Considerations in the Regulation of Air Operators . Method of Recording.SEC. Establishment of System of Recording. SEC. propeller. any aircraft of Philippine registry. . and not from the date of its execution. shall take effect from the date of its record in the books of the Authority. 53. until such conveyance is recorded in the Authority.Applications for certificate of registration shall be made in writing. all standards of the Annexes to the Chicago Convention. and (b) the interest transferred by the conveyance. no document affecting the title to or any interest in such registered aircraft. SEC. Nationality. leases. propellers. appliances. the Director General shall take into consideration the obligation of air . . or successors in interest. (e) If such conveyance is made as security for indebtedness. which affects the title to.An aircraft shall acquire Philippine nationality when registered pursuant to this Act. SEC. SEC. such aircraft shall be registered under the provisions of this Act and the owner thereof shall be issued a certificate of registration. The application shall also state: (a) the date and place of filing. appliance or spare parts intended for use on any such aircraft. . (c) The date of the instrument and the date and time it is recorded. and (c) such other information as may be required by the Authority in such manner and form as the Authority may prescribe by regulation. executors. 45. . or any portion thereof shall be valid in respect to such aircraft or portion thereof against any person other than the person by whom the conveyance is made or executed. Validity Before Filing.The Authority shall establish a national system for recording documents that affect the title to or any interest in any aircraft registered in accordance with this Act and in any aircraft engine. recording of which is required by the provisions of this Act. instruments.Applications for the issuance or renewal of an airworthiness certificate for aircraft whose ownership has not been recorded as provided in this Act shall contain such information with respect to the ownership of the aircraft as the Director General shall deem necessary to show who have property interests in such aircraft and the nature and extent of such interest.No conveyance may be recorded under the provisions of this Act unless it complies with the requirements for the registration of documents similar to the land registration process.Should the Director General. or minimum standards governing other practices. assignees. SEC.The Authority shall record conveyances delivered to it in the order of their receipt. attachments or entries affecting aircraft and other matters properly determined under this Act. 51. General Powers and Functions. 52.(a) Promoting Safety . 48. (d) The interest in the aircraft transferred by the conveyance.The Director General shall have the pawer and duty to promote safety of flight of civil aircraft in civil aviation by prescribing and revising from time to time as necessary: (1) Reasonable rules and regulations implementing. at minimum. 49. SEC. and procedures as the Director General may find necessary to provide adequately for safety in civil aviation. Form of Conveyance. . Every such conveyance so recorded shall be valid as against all persons. Application for Aircraft Registration. indexed to show: (a) The identifying description of the aircraft. methods.Upon the establishment of a recording system in accordance with the provisions of this Act. SEC.In prescribing standards. the amount and date of maturity of such indebtedness. SEC. 50. devisees. Conveyance to be Recorded. (b) The names of the parties to the conveyance. signed and sworn to by the owner or lessee of any aircraft or aircraft engine eligible for registration.No conveyance made or executed. rules and regulations. find the aircraft or aircraft engine eligible for registration. Previously Unrecorded Ownership. or interest in. the interest of the vendor. in the case of a contract of conditional sale. administrators. . aircraft engines.

facilities and materials for. 57.The Director General is authorized to issue air operator certificates and to establish minimum safety standards for the operation of the air carrier to which any such certificate is issued. alteration. SEC. the Director General shall issue an air operator certificate to such air carrier: Provided.If it is found that the aircraft conforms to the appropriate type of certificate and. (b) State the name and address of. Each airworthiness certificate issued by the Director General shall be recorded by it. may be made. and (c) Be titled with the designation of the airman and its authorized privileges. If the Director General finds. and such other terms. propellers and appliances. the Director General shall issue such certificate. .Any air carrier who is a citizen of the Philippines may file with the Director General an application for an air operator certificate. Aviation Schools and Approved Maintenance Organizations SEC. . propellers and appliances. . B. and is physically able to. .(a) Minimum Safety Standards -The Director General . alteration. . limitations and information as are required in the interest of safety. after thorough investigation. and the competency of those engaged in the work or giving any instruction in accredited maintenance organizations or shops engaged in the repair. . SEC. SEC. SEC. however.The Director General is authorized to issue airmen certificates specifying the capacity in which the holders thereof are authorized to serve as airman in connection with an aircraft.Any individual may file with the Director General an application for an airman certificate. and contain a description of the individual to whom the airman certificate is issued. A. SEC. 61. Authority to Certificate Carriers and Establish Safety Standards. SEC.The Director General may prescribe the terms under which additional airworthiness approvals. Certification of Airmen SEC. the Director General shall prescribe in the airworthiness certificate the duration of such certificate. . that such air carrier is properly and adequately equipped and has demonstrated the ability to conduct a safe operation in accordance with the requirements of this Act and the rules. SEC.The owner of any aircraft registered in accordance with this Act may file with the Director General an application for an airworthiness certificate for such aircraft. Air Operator Certificate SEC. Air Navigation Facility Safety Standards. the suitability and airworthiness of the equipment and the competency of the instructors of civilian schools providing instruction in flying or in the repair. and other matters as may be necessary to assure safety in civil aviation. SEC. and methods of. that such individual possesses the proper qualifications for. Terms and Conditions. 60. Contents. 64. and be filed and served in such manner as the Authority may prescribe and shall be under oath or affirmation whenever the Authority so requires. perform the duties pertaining to the position for which the airman certificate is sought. conditions. an airworthiness certificate shall be issued by the Director General. Airworthiness Certificate SEC. and (b) The adequacy and suitability of the equipment. finds that the aircraft is in a condition allowing for safe operation. Application and Issuance. contain such information. 58. the types of service for which the aircraft may be used. conditions and tests of physical fitness. D. Form of Applications.Each airman certificate shall: (a) Be numbered and recorded by the Authority. maintenance. 67. regulations and standards issued pursuant thereto. SEC. Authority to Certificate Airmen. 56. Terms and Conditions. 63. Application and Issuance. repair and overhaul. . C. 62. after due investigation. 59.The airman certificate shall contain such terms. and overhaul of aircraft. . after inspection. Examination and Rating.operators to perform their services with the highest possible degree of safety pursuant to public interest. Issuance. aircraft engines. .Applications for certificates issued by virtue of this chapter shall be in such form. That in no event shall the Director General issue an air operator certificate to an air carrier that does not possess a valid Certificate of Public Convenience and Necessity (CPCN) issued pursuant to this Act and its implementing rules. Airworthiness Approvals. . maintenance and overhaul of aircraft engines. 66. 68. Authority to Issue Airworthiness Certificates.The Director General is authorized to provide for the examination and rating of: (a) The adequacy of the course of instruction. 65. for purposes of modification. If the Director General finds. .

after investigation. and (e) Every person who offers or accepts shipments. conditions and limitations as are reasonably necessary to assure safety in commercial air transport. If the Director General finds. the Director General shall issue an airport operating certificate to such person. terms and conditions. the Director General determines that safety in civil aviation or commercial air transport and the public interest requires. regulations. in whole or in part. to be certified may file with the Director General an application for an airport operating certificate. used or intended to be used by any operator in civil aviation. overhaul and repair of all equipment used in air transport and to ensure that the operations conducted are in accordance with the provisions of this Act and the rules. minimum safety standards for the operation of air navigation facilities located in the Philippines. . regulations. the requirements of this Act and the rules. propellers and appliances used by an operator of civil aircraft as may be necessary to determine that the operators are maintaining the safe condition for the operation in which they are used. Modifications. SEC. and (2) Advise each operator in the inspection and maintenance of these items. aircraft engine. conditions and limitations shall include. the Director General may issue an order amending. modifying.The Director General shall have the power and duty to: (1) Make such inspections of aircraft. SEC. air operator. Propellers and Appliances .(a) Authority to Inspect Equipment . . (b) Certification of Airports . Engines. (b) Unsafe Aircraft. such terms. Duties and Operations of Airmen. Amendment. appliance. air operator certificate or certificate for any airport. any airworthiness certificate. (d) Every person performing duties in air transportation to observe and comply with the requirements of this Act and the rules. 71. (c) Each holder of an airman certificate to observe and comply with the authority and limitations of that certificate. by rule. Suspension and Revocation of Certificates. unless found by the Director General to be in a condition for safe operation. for any reason. or approved maintenance organization issued under this Act. and to establish minimum safety standards for the operation of. cargo or baggage in accordance with the provisions of Annex 18 ofthe Chicago Convention and the ICA0 Technical Instructions for the Safe Transport of Dangerous Goods by Air. as a result of any other investigation made by the Director General. the Director General shall notify the operator. propeller.It shall be the duty of: (a) Each air carrier to make or cause to be made. reinspect or reexamine any civil aircraft. and (ii) The condition and maintenance of primary and secondary runways as the Director General determines to be necessary. directives and orders issued by virtue of this Act. or if. airports that serve any scheduled or unscheduled passenger operations of air operator or foreign air operator aircraft. directives and orders issued by virtue of this Act. takeoff. with approved maintenance organization. propeller or appliance then shall not be used in civil aviation or in such manner also to endanger civil aviation. from time to time as necessary. . directives and orders issued by virtue of this Act.shall have the power to prescribe and revise. as a result of any such re-inspection or reexamination. aircraft engines. regulations. aircraft engine. but not limited to. propeller or appliance. Authority to Inspect. Unless the Director General determines that it would be contrary to public interest. cargo or baggage in air commerce to offer or accept such shipments. directives and orders issued by virtue of this Act. Such aircraft. 70. that such person is properly and adequately equipped and able to conduct a safe operation in accordance with the requirements of this Act and the rules and regulations.The Director General may. aircraft engine. Each airport operating certificate shall prescribe such terms. (b) Actions of the Director General . school.(1) The Director General is empowered to issue airport certificates to. such inspection. is not in a condition for safe operation.When the Director General finds that any aircraft.(a) Re-inspection and Reexamination . SEC. maintenance. suspending or revoking. . relating to: (i) The operation and maintenance of adequate safety equipment. or any civil airman holding a certificate issued under this Act. and standards prescribed thereunder. regulations. 69. (b) Each air carrier holding an air operator certificate to ensure that the maintenance of aircraft and operations thereof are conducted in the public interest and in accordance with the requirements of this Act and the rules. or surface maneuvering of aircraft. school. from time to time.If. (2) Any person desiring to operate an airport that is described in this section and that is required hy the Director General. including fire fighting and rescue equipment capable of rapid access to any portion of the airport used for landing. airman certificate.

modifying. or in violation of the terms of any such certificate and operation of the aircraft in a careless and reckless manner and operation of aircraft in contravention of its approved operating limitations and manual. 73. SEC. 74. The grant of such powers shall be in conformity with the functions exclusively provided by law to be exercised by the Philippine National Police and other concerned government agencies: Provided. or fail to perform their obligations. cargoes. file his appeal to the Board. shall have the power to impose lien on aircraft and machinery: (a) If the charges and other fees are not paid in full on due date or any part of the charges or the late payment penalty thereto remains unpaid. Prohibitions. partnerships. .(c) Notice to Certificate Holders and Opportunity to Answer . 75. .The Director General. (d) Appeals . rules and regulations of the Authority. . That the Authority may request the assistance of other law enforcement agencies. (b) Regulating the entry to. Properties and assets levied upon may be sold and the proceeds thereof shall be applied to the satisfaction of the obligation after due notice and hearing. (4) Operate as an air operator without an air operator certificate or in violation of the terms of any such certificate.The Director General shall have the power to exercise such police authority as may be necessary within the premises of airports under its jurisdiction to carry out its functions and attain its purposes and objectives. Police Authority. the Director General may prescribe exemptions of the foregoing provisions for foreign aircraft and airmen. and other assets of persons. and such other entities that shall be in default. (c) Maintenance of peace and order within the premises of an airport in coordination with local police authorities and other authorized peace-keeping entities within an airport. to violate any order. (b) Considering that the aircraft operation is impressed with public interest. regulation. rule or regulation issued under this Act: (3) Employ for service in connection with any civil aircraft used in civil aviation an airman who does not have an airman certificate authorizing that person to serve in the capacity for which the person is employed. except in cases of emergency. or in violation of any term. suspending or revoking any of the foregoing certificates. SEC. propeller or appliance used or intended for use in civil aviation without an airman certificate authorizing that person to serve in such capacity. modified.The Director General shall have the power to impose lien on personal and real properties. exit from and movement within an airport. including request for deputization as may be required. facilities. (e) Effectiveness of Orders Pending Appeal . and (6) While holding a certificate issued to a school or approved maintenance organization as provided in this Act.The filing of motion for reconsideration or appeal as provided for under this Act shall not stay the effectiveness of the Director General's order except through an injunctive relief duly issued by a court of competent jurisdiction. and (b) Failure to pay administrative fines arising from violation of any rules and regulations promulgated by the Authority. CHAPTER X
 OTHER POWERS SEC.Prior to amending. suspended or revoked. airport equipment. or in violation of any order. within ten (IO) days. aircraft engine. corporations.Any person whose certificate is affected by such an order of the Director General under this section may file his motion for reconsideration within five (5) days from receipt thereof and in case of denial shall. (5) Operate aircraft in civil aviation in violation of any rule. shall provide the holder of such certificate opportunity to answer any charges and be heard as to why such certificate should not be amended. condition or limitation of his certificate. . or fail to pay the fines and other penalties imposed for violations of the law. personnel. structures. . Lien on Personal and Real Properties. condition or limitation thereof.(a) It shall be unlawful for any person to: (1) Operate in civil aviation any civil aircraft which there is not currently in effect a certificate of airworthiness and registration. 72. the Director General shall advise the holder thereof as to any charge or reason relied upon by the Director General for the proposed action and. rule or regulation made under this Act relating to the holder of such certificate. aircraft. funds and documents. Statutory Lien. (2) Serve in any capacity as an airman in connection with any civil aircraft. or certificate issued by the Director General under this Act. Such police authority shall be exercised in connection with the following: (a) Maintenance of security to passengers. after complying with the required legal formalities provided by law. SEC. to violate any term.

000.The Director General shall monitor and enforce compliance of the rules and regulations concerning the carriage of goods by air in relation to Annex 18 of the Chicago Convention and the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air. Such order shall be without prejudice to the civil or criminal prosecution of persons or individuals found to be involved in practices prohibited under Chapter XI of this Act.The Board shall be responsible for the planning. the Board shall consider: (a) The suitability of a proposed site in terms of terrain and proximity to population center(s).00) for the 1st offense. and other edifices. (g) ICAO best practices and recommendations concerning the development of airports. the Board shall take reasonable steps to ensure that funding will be available for the operation and maintenance of such airports. or the expansion of airports. conditions or limitations of any such airman license or certificate. or at the instance of a private person. 81. and (h) Such other considerations as the Board. .000. It shall also have the power to prohibit or regulate the establishment and operations of electrical. may consider relevant or important. regulation or order issued by the Director General relating to aeronautical safety standards or practices or procedures shall be punished by a fine ranging from Twenty thousand pesos (Php20. suspension of the license for three (3) months for the 2nd offense and revocation or cancellation of such license for the 3rd offense. construction. (d) The availability of funding from both local and foreign sources for the construction of a new airport or expansion of an existing one. antennae.000. (2) Any person serving in any capacity as an airman in connection with any civil aircraft in violation of the terms. (c) The ability of a proposed airport to generate sufficient revenue to cover costs of operation and maintenance. .The Board shall have the power to regulate the height of buildings. or other electronic gadgets. towers. .(d) Regulation and supervision of private security agencies operating within an airport. In such cases. Regulation of Building Heights. operation. is authorized to impose the following fines and penalties for each violation of this Act: (1) Any person who operates any aircraft without the current airworthiness certificate. maintenance. . Development of New Airports. equipment or installations which will tend to interfere with or impair air navigation in accordance with the international standards and recommended practices on airports. in violation of my rule. (b) The projected size of the market to be served by a proposed airport. 78. as recommended by the ICAO. .(a) The Director General. The repetition of this offense shall be sufficient cause for the revocation of the airman's certificate. 80. Authority Respecting the Transportation of Dangerous Goods by Air. Power of the Authority to Investigate Violations. situated within the vicinity of or in close proximity to airports estimated to endanger the flight of aircrafts.The Director General. SEC. SEC. or in excess of the rating of such certificate. sound. In planning and developing new airports. (f) The government's public service obligations. Penalties. . the Director General at his own volition. 76. SEC. CHAPTER XI
 PENALTIES SEC. laser. SEC.00) for the 1st offense. SEC.000. development. after due notice and hearing. 77. magnetic. (3) Any person who employs in connection with any aircraft used in air commerce an airman who does not . and (e) Enforcement of rules and regulations promulgated by the Board pursuant to the authority granted under this Act. shall be punished by a fine ranging from Twenty thousand pesos (Php20. after due investigation conducted. in the exercise of its reasonable discretion. or upon the initiative of the Board. (e) The proximity of other airports to a proposed new airport and the capability of such other airport to handle traffic projected to be handled by the new proposed airport. suspension of the license for three (3) months for the 2nd offense and revocation or cancellation of such license for the 3 rd offense.00) to Fifty thousand pesos (Php50. may conduct investigations based on the procedures that the Board may prescribe and using the Rules of Court as its suppletory guidelines. 79.Correlative to the provisions of Section 36 of this Act. electronics.00) to Fifty thousand pesos (Php50. Power to Direct an Immediate Halt to an Offending Practice. more particularly the government's duty to ensure the availability of air transport infrastructure for remote areas far from major population centers and that are not otherwise easily accessible by transportation via land or sea. may issue a cease and desist order directing an air carrier(s) to immediately cease any practice found to be in violation of the provisions of this Act.

000.00) but not exceeding Two hundred thousand pesos (Php200. (3) Any person who shall use for flight operation an unregistered aircraft or engaged in the operation of . at the discretion of the court. as determined by the Director General in the exercise of his reasonable discretion. records.000. falsify. be entitled to the assistance of law enforcement officials for the execution of any order to compel a witness to be present or to testify. aviation school.000. as determined by the Director General in the exercise of his reasonable discretion.00). hinder. accounts. if necessary.00). or investigation held by the Director General or his duly authorized representative. manuals.000. contracts.000. alters or falsifies any certificate or aviation certificate authorized to be issued pursuant to the provisions of this Act. aircraft maintenance.have an airman's certificate authorizing him to serve in the capacity for which he is employed shall be punished by a fine ranging from Fifty thousand pesos (Php50.00).000.000.00) but not exceeding Five hundred thousand pesos (Php500. or both. or violates any order. That the Director General or his duly authorized representative shall. (4) Any person who was issued by the Director General relating to air carrier operation. or (iv) Refuses to be sworn in as a witness or to answer as such when lawfully required to do so: Provided. condition or limitation thereof.00). mutilate any report. (2) Any person who knowingly and willfully forges.00) to Five hundred thousand pesos (Php500. or shall orally or in writing disrespectfully offend or insult any of the abovenamed bodies or persons on the occasion of or in the performance of their official duties or during any hearing. in obedience to the subpoena or lawful requirement of the Director General or his duly authorized representative. or (iii) Is guilty of misconduct in the presence of the Director General or his duly authorized representative. A repetition of the offense shall be sufficient cause for revocation of such person's certificate authorizing it to engage in air carrier operation. or both. books. or (v) Neglects or refuses to attend and/or testify and/or to answer any lawful inquiry or to produce books. shall knowingly or willfully alter. or (ii) Shall knowingly and willfully fail or refuse: (a) to make and/or submit aircraft maintenance or flight logbooks. A fine ranging from Twenty thousand pesos (Php20. session. as determined by the court. obstruct. agreement and all other documents. as determined by the Director General in the exercise of his reasonable discretion. and other civil aviation regulated activity which are being certificated and regulated by the Director General who have been found to have violated any term. technical reports and all other documents required to be submitted by him for consideration before the Director General or his duly authorized representative.00) but not exceeding One hundred thousand pesos (Php100. papers and all other documents required by the Director General or his duly authorized representative. if in his power to do so. rule or regulation issued by virtue of this Act relating to the holder of such certificate shall be punished by a fine ranging from Three hundred thousand pesos (Php300. The repetition of this offense shall be sufficient cause for the revocation of such person's certificate. counterfeits. and any person who knowingly and willfully displays or causes to be displayed on any aircraft any marks that are false or misleading as to the nationality or registration of the aircraft shall be punished by imprisonment ranging from three (3) years to six (6) years or a fine of not less than One hundred thousand pesos (php100. or to any member of the Board in the performance of their quasi-judicial and quasi-legislative functions or so near as to obstruct or interrupt the hearing or session or any proceedings before the Director General or any of his duly authorized representative. or delay the Director General or any person duly delegated by the Director General.00) to One hundred thousand pesos (Php100. or (b) to keep or preserve records. in the performance of his duties pursuant to public interest. regulation or order issued by the Director General relating to aeronautical safety standards or practices or procedures shall be punished by imprisonment for not more than three (3) years or a fine ranging from Fifty thousand pesos (Php50. papers. reports. or (vi) Testifies falsely or makes false affidavits or both before the Director General or his duly authorized representative. or knowingly uses or attempts to use any such fraudulent certificate or aviation certificate. (b) The following penalties may only be imposed by a court of competent jurisdiction after the filing of a proper criminal complaint therein by the Director General and a finding of guilt: (1) Any person who operates any aircraft without a valid or current license or ratings or in violation of rule. (5) No person shall interfere.00).000.000.000. shall be imposed upon anyone who: (i) With intent to interfere in the performance of the duties of the Director General or any person duly delegated by the Director General. papers or documents. contracts.

000. Art. An imprisonment for not more than three (3) years or a fine of not less than Fifty thousand pesos (Php50. signed at Montreal. or interferes with the operation of any true light or signal.000.00) but not exceeding Five hundred thousand pesos (Php500. (8) Any person who.000. as determined by the court. exhibits within the Philippines any light or signal at such place or in such manner that it is likely to be mistaken for a true light or signal established pursuant to this Act or for a true light or signal in connection with an airport or other air navigation facility. signed at Montreal. of his duly authorized representative. or both. as determined by the court.000. or (ii) After due warning by the Director General.000.00) but not exceeding Five hundred thousand pesos (Php500. interferes with a crewmember's or flight attendant's performance of their duties.000. shall be subjected to imprisonment from one (1) year to three (3) years or a fine of not less than Fifty thousand pesos (Php50. or who has placed. (10) Any person who. assaults. (9) and (10) of this section.00) but not exceeding Five hundred thousand pesos (Php500. knowing the information to be false.000. or (iii) Knowingly removes. or both. concerning an attempt or alleged attempt being made or to be made to do an act which would be a crime prohibited by clauses (8). aircraft material distributorship. [Convention for Suppression of Unlawful Acts Against the Safety of Civil Aviation. as determined by the court. (9) Any person who. or both. This subsection shall not apply to persons duly authorized by the Director General to carry deadly or dangerous weapons in commercial air transport nor shall it apply to other persons transporting weapons contained in baggage that is not accessible to passengers in flight if the presence of such weapons has been declared to the air carrier and duIy approved by the proper authority. as determined by the court. 23 September 1971. air carrier operations or any other civil aviation regulated activities without the required air agency certificate issued by the Director General shall be punished by imprisonment ranging from three (3) years to seven (7) years or a fine of not less than One hundred thousand pesos (Php100.000. intimidates. and (6) No person shall interfere with air navigation. while on board an aircraft. as determined by the court. or would be accessible to such person in flight. as determined by the court.000. or both.00).00).000.00). or both.aviation school.000.00) to One million pesos (Php1.000.00) but not exceeding Five hundred thousand pesos (Php500.00) but not exceeding Five hundred thousand pesos (Php500. or threatens any crewmember or flight attendant. or attempted to place aboard such aircraft any bomb or similar explosive or incendiary device. or any person who has on or about his person.000. (4) Any person found guilty of violating the conditions attendant to the issuance of the airworthiness certificate of the aircraft shall be subjected to imprisonment ranging from three (3) years to seven (7) years or a fine of not less than One hundred thousand pesos (Php100. communicates false information to an aircraft and thereby endangering the safety of an aircraft in flight shall be subjected to imprisonment from one (1) year to three (3) years or a fine of not less than Fifty thousand pesos (Php50. shall be subjected to imprisonment from one (1) year to three (3) years or a fine of not less than Fifty thousand pesos .000. aircraft maintenance facilities. 23 September 1971. as determined by the court. a concealed deadly or dangerous weapon which is.00) but not exceeding Five hundred thousand pesos (Php500.000. on or about his person or his property.00) [Convention for Suppression of Unlawful Acts Against the Safety of Civil Aviation. continues to maintain any misleading light or signal. or both. (7) Any person who destroys or damages air navigation facilities or interferes with their operation shall be subjected to imprisonment from one (1) year to three (3) years or a fine of not less than Fifty thousand pesos (Php50. shall be subjected to imprisonment from three (3) years to six (6) years or a fine of not less than One hundred thousand pesos (Php100.000. as determined by the court.00).00).00).00) but not exceeding Five hundred thousand pesos (Php500. any aircraft in or intended for operation in commercial air transport. shall be imposed upon any person who: (i) With intent to interfere with air navigation within the Philippines. the court may impose an increased penalty of imprisonment from three (3) years to six (6) years or a fine ranging from Five hundred thousand pesos (Php500. 1(e)]. (5) Any person who destroys or seriously damages the facilities of an airport or disrupts the services of an airport shall be subjected to imprisonment ranging from one (1) year to three (3) years or a fine of not less than Fifty thousand pesos (Php50.000. or both. (11) Any person who imparts or conveys or causes to be imparted or conveyed false information. extinguishes.000. Art.00). has.00). whether on board or on the ground. while on board or while attempting to board. If such act endangers the safety of air navigation. or both.00) but not exceeding Five hundred thousand pesos (Php500. 1(d)].000.

or both. 776. as determined by the court: and (14) Any person who willfully delivers or causes to be delivered to an air carrier for air transport. if qualified. SEC. or both. history of prior offenses. 14 September 1963. with appointments attested by the Civil Service Commission.00) for each violation. baggage or other property in violation of the provisions of Annex 18 of the Chicago Convention and the ICAO Technical Instruction for the Safe Transport of Dangerous Goods by Air. (10). However. who would opt to retire or to be separated from the service. (10) and (11) above which jeopardizes the safety of the aircraft or of persons or property therein. (13) Any person who knowingly and without authority removes.00). 1(b)]. That the Board shall promulgate such revised penalties in accordance with the Administrative Code of the Philippines and economic/monetary index provided by the Monetary Board.To ensure smooth transition into a corporate structure. real and personal properties. commits any other act not otherwise expressly covered under clauses (8). The provisions of paragraph (b).00).000. . duties and rights vested by law and exercised by the AT0 is hereby transferred to the Authority.Any violation of the provisions of this Act. the Director General shall take into account the nature. or the corresponding rules and regulations issued by the Authority shall be subjected to imprisonment from one (1) year to three (3) years or a fine of not less than One hundred thousand pesos (Php100.000. or which jeopardizes good order and discipline on board such aircraft shall be subjected to imprisonment from six (6) months to three (3) years or a fine of not less than Fifty thousand pesos (Php50. SEC. 83. [Convention for Suppression of Unlawful Acts Against the Safety of Civil Aviation.000. as determined by the court. SEC.The Air Transportation Office (ATO) created under Republic Act No. funds and revenues owned by or vested in the different offices of the AT0 are transferred to the Authority. or any order. . signed at Montreal. cargo.000. records and documents relating to the operations of the abolished agency and its offices and branches are likewise transferred to the Authority. 1(e)].00) but not exceeding Five hundred thousand pesos (Php500. affected officials and personnel.000. General Penalty.000.In determining the amount of any such penalty. is hereby abolished. [Convention on Offenses and Certain Other Acts Committed on Board Aircraft. Abolition of the Air Transportation Office. effect on ability to continue to do business. All assets.(Php50. ability to pay. and such other matters as justice may require. Any real property owned by the national government or government-owned corporation or authority which is being used and utilized as office or facility by the AT0 shall be transferred and titled in favor of the Authority. extent and gravity of the violation and. CHAPTER XII
 TRANSITORY PROVISIONS SEC. circumstances. All powers. shall be given the option to avail . whether hired on a permanent or temporary basis. a sectoral office of the Department of Transportation and Communications (DOTC).000. the degree of culpability. All contracts. . 85.The Director General shall adjust the monetary level of the penalties. or any term. conceals or withholds any part of an aircraft involved in an aircraft accident or any property on board such aircraft at the time of th e aircraft accident shall be subjected to imprisonment from three (3) years to six (6) years or a fine of not less than One hundred thousand pesos (Php100. Exercise by the Director General of the powers granted to him under paragraph (a) above shall not be a bar to a subsequent criminal prosecution in court for the same act pursuant to the provisiom of paragraph (b). or both. as may be authorized by the Board to impose. Penalty Considerations. with respect to the person found to have committed the violation. signed at Tokyo. Art. 84. or both. (9). and those hired on a casual or contractual basis. SEC. Inflation Adjustment to Civil Penalties. including any revision or successor thereto. . of any shipment. the incumbent Assistant Secretary of the AT0 shall continue to hold office and assume the powers of the Director General until his successor shall have been appointed and inducted into office in accordance with this Act. while on board an aircraft. as determined by the court. (11) and (12) above shall apply to any aircraft located within the special jurisdiction of the Philippines.00) but not exceeding Five hundred thousand pesos (Php500. 86.00). Transfer of Personnel of Air Tramportation Office. at least once every four (4) years: Provided.000. as determined by the court.000.00) to One hundred thousand pesos (Php100. 82.00).00) but not exceeding Five hundred thousand pesos (Php500. rule or regulation issued thereunder. condition or limitation of any certificate or license issued under this Act for which no penalty is expressly provided shall be punished by a fine ranging from Twenty thousand pesos (Php20. .000. clauses (9). Art. 23 September 1971. (12) Any person who.00) but not exceeding Five hundred thousand pesos (Php500. or if that person recklessly causes the transportation in air transport.

6656. 8291 and whenever there is an option. 89. further. among others. rules and regulations or part thereof which provides exemptions to any . (b) Retirement benefit under Republic Act No. Separability Clause. is hereby constituted in accordance with the provisions of this Act. the Committee is empowered to require the Authority to submit all pertinent information including. computed starting from the 1 st year. 90. . 91. 87. The Committee shall be composed of the Chairman of the Senate Committee on Public Services and Chairman of the House Committee on Transportation and four (4) additional members from each House to be designated by the Senate President and the Speaker of the House of Representatives. respectively. . 8291. for those who have rendered thirty-one (31) years of service and above: Provided. 92. . SEC. in aid of legislation: (a) Monitor and ensure the proper implementation of this Act.The Office of the Government Corporate Counsel shall act as the external legal counsel of the Authority before any court of law or any quasi-judicial bodies of the government without prejudice of any deputation or designation that it may issue in favor of the in-house counsel of the Authority. SEC. SEC. the portability scheme under Republic Act No.If any part or provision of this Act shall be declared unconstitutional. SEC. That for the purpose of complying with the required number of years of service under Republic Act No. (c) Review the proper implementation of the programs of the Authority and the use of its collected fund. hereinafter referred to as the "Committee". without the incentive herein provided. (b) Review the collection performance of the Authority. rights or privileges vested or acquired under the provisions of Republic Act No. 93. including provisions of any law. . computed starting from the lst year. Saving Clause. whichever is beneficial to them: (a) Retirement gratuity provided under Republic Act No. subject to existing policies and guidelines. executive orders. the one which the affected employee has chosen as the most beneficial to him/her: Provided.Unless otherwise provided in this Act. The Committee shall. executive orders. decrees. That the GSIS shall pay.00) as his retirement/separation gratuity from both the national government and the GSIS. its collection performance data and its annual audited financial statements certified by the Commission on Audit. its oversight functions shall be exercised by the Senate Committee on Public Services and the House Committee on Transportation acting separately. 7699 may be applied. 660 or applicable retirement. Implementing Rules and Regulations. the other parts or provisions hereof which are not affected thereby. but not limited to. and (3) One (1) month of the present basic salary for every year of government service and a fraction thereof. shall continue in full force and effect.All laws. as amended.000. and thereafter. Organization of the Authority. if qualified. SEC. as amended. No affected employee who opted for retirement/separation shall receive less than an aggregate of Fifty thousand pesos (Php50. rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.A Congressional Oversight Committee. 776. plus the following applicable incentives: (1) One half (1/2) month of the present basic salary for every year of government service and a fraction thereof. for those who have rendered twenty (20) years of service and below. and (c) Those with less than three (3) years of government service may opt to avail of the separation gratuity under Republic Act No.The Authority shall adopt rules and regulations to implement the provisions of this Act within sixty (60) days from the date of its approval. plus the appropriate incentive provided under paragraph (b) of this section. Repealing Clause. In furtherance of the hereinabove cited ohjectives. plus the refund of retirement premiums payable by the Government Service Insurance System (GSIS). the retirement/separation/unemployment benefits to which an affected employee may be entitled to under Republic Act No. . 8291. separation or unemployment benefit provided under Republic Act No. Legal Counsel. . SEC. on the day of separation. its rules and regulations prior to the effectivity of this Act shall remain in full force and effect.Any officer/employee who availed the benefits of the foregoing provisions shall not qualify for reemployment to the Authority within seven (7) years from the date of retirement/resignation. (2) Three-fourth (3/4) month of the present basic salary for every year of government service and a fraction thereof. 88. 1616. Congressional Oversight Committee. . for those who have rendered twenty-one (21) to thirty (30) years of service.themselves of any of the following. 660 or Republic Act No. The Congressional Oversight Committee shall be in existence for a period of five (5) years. SEC. decrees.

air carrier. license and permit. but not limited to. relating to.) ROBERTO P. 193. nothing in this Act shall diminish the powers and functions of the Manila International Airport Authority created by virtue of Executive Order No. organization or entity from payment of any Civil Aviation Authority of the Philippines imposed fees and charges.) EMMA LIRIO-REYES
 Secretary of Senate (Sgd.) PROSPERO C. SEC. (Sgd. navigation. series of 1983. NOGRALES
 Speaker of the House of Representatives This Act which is originated in the House of Representatives was finally passed by the House of Representative and the Senate on February 5. created by virtue of Executive Order No. 2008 (Sgd. Subic Bay Metropolitan Authority as regards the Subic Bay International Airport created by virtue of Republic Act No.This Act shall take effect fifteen (15) days after its complete publication in at least newspapers of general circulation. 2008 respectively. Notwithstanding the foregoing. 903.) MANNY VILLAR
 President of the Senate (Sgd. and the Mactan-Cebu International Airport Authority created by virtue of Republic Act No. Effectivity. NAZARENO
 Secretary General
 House of Represenatives Approved: March 04. 6958. series of 2003. 2008 and February 4. Approved. 7227. . communication. 94. concession. Clark International Airport Corporation as regards the Diosdado Macapagal International Airport Authority.) GLORIA MACAPAGAL-ARROYO
 President of the Philippines . (Sgd.

the Civil Aeronautics Administrator shall act as Chairman. the Board shall take into consideration. – A. cancel. joint. and franchise. To fix and determine reasonable individual. The need of each air carrier for revenue sufficient to enable such air carrier. the Board shall have the power to regulate the economic aspect of air transportation. The burden of proof to show that the proposed individual. to issue. or own any stock or bond of. In case the Under-Secretary of Commerce and Industry and/or Deputy Administrator act in the stead of the Secretary of Commerce and Industry and/or Administrator respectively. upon petition or complaint. they shall hold office and be entitled to per diem for each meeting actually attended by them in the Civil Aeronautics Board. Powers and duties of the Board. revise. charges or fares which an air carrier may demand. among other factors: a. C. charges or fares are not unduly preferential or unduly discriminatory or unreasonable. the permit shall be issued with the approval of the President of the Republic of the Philippines. The inherent advantages of transportation by aircraft. The need in the public interest of adequate and efficient transportation of persons and property by air carriers at the lowest cost consistent with the furnishing of such service. In fixing rates. In case of absence or incapacity of the Secretary of Commerce and Industry.RA 776 Section 5. facilities. Section 10. That in the case of foreign air carriers. joint or special rates. any civil aeronautics enterprise. amend. and efficient management. and jurisdiction and control over. property rights. any temporary operating permit or Certificate of Public Convenience and Necessity: Provided. and e. air carriers as well as their property. – The Civil Aeronautics shall be composed of the Secretary of Commerce and Industry as Chairman. collect or receive for any service in connection with air commerce. They shall hold office at the pleasure of the President and shall be entitled to per diem for each meeting actually attended by them in such amount as may be fixed by the President. 2. to provide adequate and efficient air carrier service. joint or special rates. in whole or in part. deny. joint or special rates. and shall have the general supervision and regulation of. under honest. in so far as may be necessary for the purpose of carrying out the provisions of this Act. alter. or new individual. or special rates. Composition of the Board. suspend or revoke. modify. 3. No member of the Board shall have any pecuniary interest in. or upon its own initiative. the Commanding Officer of the Philippine Air Force and two other members to be appointed by the President of the Philippines. The Board shall have the following specific powers and duties: 1. charges or fares proposed by an air carrier if the proposed individual. In accordance with the provisions of Chapter IV of this Act. b. To authorize charters whether domestic or international and special air services or flight heretofore . Such standards respecting the character and quality of service to be rendered by air carriers as may be prescribed by or pursuant to law. or fares under the provisions of this Act. c. charges. Except as otherwise provided herein. however. the Civil Aeronautics Administrator. The Board may adopt any original amended. equipment. The effect of such rates upon the movement of traffic. charges or fares are just and reasonable shall be upon the air carrier proposing the same. d. economical.

4. such air carrier. Such reports shall be under oath whenever the Board so Requires. or a true copy thereof. to obtain from such carrier. To require each officer and director of any air carrier to transmit a report describing the shares of stock or other interest held by such air carrier with any persons engaged in any phase of aeronautics. to the extent reasonably necessary for such inquiry. as well as of the receipt and expenditures of money. and special reports from any air carrier. monthly. and to require from any air carrier specific answers to all questions upon which the Board may deem information to be necessary. full and complete reports and other information. and the holding of the stock in. records or memoranda if they do not impair the integrity of the accounts. between domestic air carriers and any person engaged in any phase of aeronautics. 5. and memoranda of the movement of traffic. To inquire into the management of the business of any air carrier and. or between domestic air carriers and foreign air carriers. 7. To approve or disapprove increase of capital. agreement. and from any person controlling. consolidation. To prescribed the forms of any and all accounts. purchase. or under common control with. and control of. records and memoranda shall be preserved: Provided. records. periodical. sale of equipment of an air carrier engaged in air commerce. understanding or arrangement. and the length of time such accounts. in relation to any traffic affected by the provisions of this Act. 8. 6.exercised by the Department of Commerce and Industry under Commonwealth Act Numbered Ninety-seven under such terms and conditions as in its judgment the public interest requires. to prescribe the manner and form in which such reports shall be made. operating contract or acquisition and control between domestic air carriers. The Board may also require any air carrier tofilewith it any contract. or controlled by. merger. or memoranda prescribed or approved by the Board and do not constitute an undue financial burden on such air carrier. lease. To require annual. That any air carrier may keep additional accounts. other persons engaged in any phase of aeronautics. Such reports shall be under oath whenever the Board so requires. records. between such air carrier and any other carrier or person. .

roadster. either with or without drivers. bulldozers. and sedan. Such a trailer shall be called as "semi-trailer. landaulet. vehicles which run only on rails or tracks. Motor vehicles with changed or rebuilt bodies. TO CREATE A LAND TRANSPORTATION COMMISSION AND FOR OTHER PURPOSES CHAPTER I PRELIMINARY PROVISIONS ARTICLE ARTICLE I Title and Scope of Act Section 1. as far as they apply. trailers and traction engines of all kinds used exclusively for agricultural purposes. That a "truck with seating compartments at the back not used for hire shall be registered under special "S" classifications. fork-lifts. closed car. dealing in motor vehicles. (h) "Garage" shall mean any building in which two or more motor vehicles. or other public places designated by proper authority as parking spaces for motor vehicles for hire while awaiting or soliciting business. (c) "Articulated vehicle" shall mean any motor vehicle with a trailer having no front axle and so attached that part of the trailer rests upon motor vehicle and a substantial part of the weight of the trailer and of its load is borne by the motor vehicle. limousine. . and similar matters. The distinction between "passenger truck" and "passenger automobile" shall be that of common usage: Provided. styles. street-sweepers. using a chassis of the usual pneumatic-tire passenger automobile type. and cranes if not used on public highways. Words and phrases defined. (g) "Dealer" shall mean every person. does not exceed nine passengers and if they are not used primarily for carrying freight or merchandise. manufacturing. The "owner" of a government-owned motor vehicle is the head of the office or the chief of the Bureau to which the said motor vehicle belongs. constructing. graders. lawn mowers. and every such entity acting as agent for the sale of one or more makes. and tractors. but excepting road rollers. (e) "Professional driver" shall mean every and any driver hired or paid for driving or operating a motor vehicle. . shall also be classified as passenger automobile. or kinds of motor vehicles. In case of dispute. cycle. drivers. That a motor vehicle registered for more than nine passengers shall be classified as "truck": And Provided. . further. shall be classified as separate motor vehicle with no power rating. sprinklers. conductors. assembling. dealers. Title of Act." Section 2. remodeling.As used in this Act: (a) "Motor Vehicle" shall mean any vehicle propelled by any power other than muscular power using the public highways. ARTICLE II Definitions Section 3. . speedster. are kept ready for hire to the public. trolley cars. Trailers having any number of wheels." (d) "Driver" shall mean every and any licensed operator of a motor vehicle. in whose name such vehicle is duly registered with the Land Transportation Commission. jitneys. Any person driving his own motor vehicle for hire is a professional driver. amphibian trucks. (b) "Passenger automobiles" shall mean all pneumatic-tire vehicles of types similar to those usually known under the following terms: touring car.The provisions of this Act shall control. association. the Commissioner of Land Transportation shall determine the classification to which any special type of motor vehicle belongs. rebuilding. if their net allowable carrying capacity. sports car. jeep. partnership. (f) "Owner" shall mean the actual legal owner of a motor vehicle. as determined by the Commissioner of Land Transportation. public service stations. 4136 AN ACT TO COMPILE THE LAWS RELATIVE TO LAND TRANSPORTATION AND TRAFFIC RULES. the registration and operation of motor vehicles and the licensing of owners. car (except motor wheel and similar small outfits which are classified with motorcycles). but shall not include street stands.REPUBLIC ACT No. coupe. keeping the same in stock or selling same or handling with a view to trading same. or station wagons. when propelled or intended to be propelled by attachment to a motor vehicle. or corporation making.This Act shall be known as the "Land Transportation and Traffic Code. such as jeepneys. Scope of Act. cabriolet. or setting up motor vehicles. command car. whether for private use or for hire to the public.

as determined by the Commissioner of Land Transportation. in addition to those mentioned elsewhere in this Act: (1) With the approval of the Secretary of Public Works and Communications. and they shall be appointed by the President of the Philippines. to be headed by a regional director who will have immediate administration. (j) "Highways" shall mean every public thoroughfare. for the purposes of this Act. however. who shall receive an annual compensation of seven thousand pesos each. with the approval of the Secretary of Public Works and Communications. The Commissioner shall be assisted by one head executive assistant (MV regulation adviser or chief). Cebu City. eight land transportation regional directors who shall receive an annual compensation of eight thousand four hundred pesos each and eight land transportation assistant regional directors. That the present Administrator. (d) The Commission shall have its offices in Quezon City where the present Motor Vehicle Office is located. park. in connection therewith. one accounting officer. who shall receive an annual compensation of nine thousand pesos each. if the motor vehicle again moves away without delay. the registration and re-registration of . and Davao City. Pasig (Rizal). freight and/or passenger. (m) "Tourist" shall mean a foreigner who travels from place to place for pleasure or culture. Baguio City. and remains inactive in that place or close thereto for an appreciable period of time. one inspection. one administrative officer.(i) "Gross weight" shall mean the measured weight of a motor vehicle plus the maximum allowable carrying capacity in merchandise. colleges. Lipa City. with the consent of the Commission on Appointments of the Congress of the Philippines: Provided. and one personnel officer. licensing and bonding of drivers. alley and callejon. who shall receive an annual compensation of seven thousand pesos each and ten assistant regulation chiefs. Creation of the Commission. (k) "The Commissioner of Land Transportation or his deputies" shall mean the actual or acting chief of the Land Transportation Commission or such representatives. The Commissioner shall be responsible for the administration of this Act and shall have. supervision and control over activities and administration of the Commission in the respective regions. composed of one Commissioner and one Deputy Commissioner. avenue. Assistant Administrator and the personnel of the Motor Vehicles Office shall continue in office without the necessity of reappointment. but shall not include roadway upon grounds owned by private persons. and shall establish a regional branch office each in Tuguegarao (Cagayan). prescribing the procedure for the examination. Iloilo City. San Fernando (La Union). and whenever the word "Commissioner" is used in this Act. ARTICLE III Administration of Act Section 4. (b) The Commissioner and Deputy Commissioner shall hold office until removed in accordance with the provisions of the Revised Administrative Code. (l) "Parking or parked". it shall be deemed to mean the Land Transportation Commission. universities. Naga City. it shall be taken to mean the Commissioner or Deputy Commissioner. one registration regulation chief. one internal chief auditor. examination and licensing regulation chief. driveway. public boulevard. who shall be vested with the powers and duties hereafter specified. Whenever the word "Commission" is used in this Act. or other similar institutions. one law and traffic enforcement regulation chief. the following powers and duties. one provincial regulation chief. (a) There is created under the Department of Public Works and Communications an office which shall be designated and known as the Land Transportation Commission. (c) The Commissioner shall receive an annual compensation of twelve thousand pesos and the Deputy Commissioner. deputies. to issue rules and regulations not in conflict with the provisions of this Act. or to load or unload a small quantity of freight with reasonable dispatch shall not be considered as "parked". an annual compensation of ten thousand four hundred pesos. The Commissioner and the Deputy Commissioner shall be natural-born citizens and residents of the Philippines. A motor vehicle which properly stops merely to discharge a passenger or to take in a waiting passenger. appoint or designate in writing for the purpose contemplated by this Act. or assistants as he may. one utility and property regulation chief. shall mean that a motor vehicle is "parked" or "parking" if it has been brought to a stop on the shoulder or proper edge of a highway. Cagayan de Oro City.

city or municipal court for summary investigation. the replacement of lost certificates. licenses and badges issued. or otherwise unfit to be operated because of possible excessive damage to highways. improperly marked or equipped. Privately-owned motor vehicles . permits. appropriate notices of the apprehensions and the dispositions thereof shall be given to the Commissioner of Land Transportation by the law-enforcement agency and the court concerned. overloaded. and to enter.on or before the last working day of February. as provided hereunder shall become delinquent and invalid: 1.motor vehicles. licenses. revocations. (5) The Commissioner of Land Transportation and his deputies are hereby authorized to make arrest for violations of the provisions of this Act in so far as motor vehicles are concerned. 2. body design or carrying capacity subsequent to registration and all other special cases which may arise for which no specific provision is otherwise made in this Act. (2) To compile and arrange all applications. suspensions. the same shall be endorsed to the traffic court. All motor vehicles and other vehicles must be registered. Reports. (7) The Philippine Constabulary and the city and municipal police forces are hereby given the authority and the primary responsibility and duty to prevent violations of this Act. transfer of ownership. (6) The Commissioner of Land Transportation or his deputies may at any time examine and inspect any motor vehicle to determine whether such motor vehicle is registered. (4) The Commissioner of Land Transportation. CHAPTER II REGISTRATION OF MOTOR VEHICLES ARTICLE I Duty to Register. Applications. permits or number plates. (8) All cases involving violations of this Act shall be endorsed immediately by the apprehending officer to the Land Transportation Commission. with the approval of the Secretary of Public Works and Communications. permits.from June one to the last working day of June. (a) No motor vehicle shall be used or operated on or upon any public highway of the Philippines unless the same is properly registered for the current year in accordance with the provisions of this Act. (b) Any registration of motor vehicles not renewed on or before the date fixed for different classifications. or such other government employees as he may deem expedient to assist in the carrying out the provisions of this Act. unsafe. or is unsightly. Notation of all such dispositions shall be entered in the records. hearing and disposition. change of status. to issue subpoena and subpoena duces tecum to compel the appearance of motor vehicle operators and divers and/or other persons or conductors. That all apprehensions made shall be submitted for final disposition to the Commissioner and his deputies within twenty-four hours from the date of apprehension. 3. and to prescribe the minimum standards and specifications including allowable gross weight. distribution of loads. allowable length. except when the plates of such motor vehicles are returned to the Commission in Quezon City or to the Office . notifications. All other motor vehicles . allowable loads on tires. certificates. For hire motor vehicles . licenses. with the end in view of preserving and making easily available such documents and records to public officers and private persons properly and legitimately interested therein. suspended or revoked and/or motor vehicles transferred and/or drivers bonded under the provisions of this Act. note and record thereon transfers. and to use all reasonable means within their powers to secure enforcement of the provisions of this Act. bridges and/or culverts. Where such violations necessitate immediate action.from March one to the last working day of May. badges. may designate as his deputy and agent any employee of the Land Transportation Commission. but in all such cases. (3) To give public notice of the certificates. and to carry out the police provisions hereof within their respective jurisdiction: Provided. Classifications Section 5. or judgments of conviction rendered by competent courts concerning violations of this Act. and copy shall be mailed to the owner and to the driver concerned. change of tire sizes. width and height or motor vehicles.

in order to be valid. accept. and in the absence of such cancellation. The Land Transportation Commission shall collect a fee of five pesos for every annotation of a mortgage. and other encumbrances of motor vehicles. unless such is satisfactorily explained and approved by the Commissioner. manufacture.of the Motor Vehicles Registrar in the provincial or city agency of the Commission on or before the last working day of December of the year of issue. That seats shall not be installed in the rear compartment thereof and that only such number of laborers. (d) Public utility automobiles. Laborers necessary to handle freight on board private trucks may ride on such trucks: Provided. among other things. transfer or other transactions affecting motor vehicles as may be necessary for the effective enforcement of the provisions of this Act. or replacing of the original or registered serial or motor number as stamped or imprinted. . or cancellation thereof. . . attachments. shall be allowed. (f) taxis and auto-calesas. no certificate of registration shall be issued without the corresponding notation of mortgage. Section 7. date and number of the entry in a "Book of Motor Vehicles" referring to the creation. (g) garage automobiles. and (c) private motorcycles. not exceeding ten. number of stocks. e) public utility trucks. and any motor vehicle with a trace of having its motor number altered or tampered with shall be refused registration or re-registration. rules and regulations.No repair or change in the motor vehicle involving the exchange. as may be needed to handle the kind of freight carried. effacing. Application for registration under these classifications shall be accompanied by a certificate of public convenience or a special permit issued by the Public Service Commission. the time. attachment and/or other encumbrances.Every motor vehicle shall be registered under one of the following described classifications: (a) private passenger automobiles. and the date of the cancellation of the postage stamps of envelopes containing money order or check shall be taken as the date of the application and/or payment for registration: Provided.Applications and payments for registration shall be made either personally or by registered mail. shall ride on the truck: Provided. elimination. and motor vehicles registered under these classifications shall be subject to the Public Service Law. attachment and/or other encumbrances.The Commissioner of Land Transportation shall require dealers to furnish him with such information and reports concerning the sale. Cancellation or foreclosure of such mortgages. That the combined weight of cargo and passengers does not exceed the registered net capacity of the truck. Motor vehicles registered under the . That the application is properly prepared and the payment for registration is sufficient as required by law." No person shall be allowed to register as private truck any truck not actually and reasonably necessary to carry out his duly licensed business or legitimate occupation or industry regularly paying taxes. (e) Encumbrances of motor vehicles. importation. (c) Dealer's reports . Section 6. Records of encumbrances of motor vehicles shall be kept by the Land Transportation Commission in chronological sequence and shall contain. scooters. . (b) private trucks. Motor vehicles registered under these classifications shall not be used for hire under any circumstances and shall not be used to solicit. or passengers not related by consanguinity or affinity within the fourth civil degree to such owner. as well as the provisions of this Act. shall be conclusively presumed to be "for hire. attachments or to other encumbrances. a vehicle habitually used to carry freight not belonging to the registered owner thereof. further.Mortgages. or motor wheel attachments. Application and payments for registration.Registrations under this classification are intended to cover generally and successively all the motor vehicles imported or handled by dealers for sale. (i) hire trucks: and (j) trucks owned by contractors and customs brokers and customs agents. (h) garage trucks. attachments. cancellation or foreclosure of the aforesaid mortgages. or be used to transport passengers or freight for pay. (d) Change of motor number prohibited. and other encumbrances shall likewise be recorded. must be recorded in the Land Transportation Commission and must be properly recorded on the face of all outstanding copies of the certificates of registration of the vehicle concerned. Registration Classification. For the purpose of this section. (k) Undertakes (l) Dealers .

an amount based on their respective shipping weight or factory weight as indicated in the following schedule: 1. including seat and feet space. the sum of thirty pesos.00 1. each application for renewal of registration of motor vehicles shall be accompanied by an annual registration fee in accordance with the following schedule: (a) Private automobiles with pneumatic rubber tires.000 kilos or less P75. by government employees or by foreign governments shall not be registered under this classification. passenger buses and trailers with pneumatic rubber tires. or for hire. (d) Private motorcycles and scooters of two or three wheels and bicycles with motor attachments. the sum of seven pesos for every hundred kilograms of maximum allowable gross weight or fraction thereof. That the motor vehicle displays the number plates for the current year of some other country or state. (q) Special. Schedule of registration fees. be employed to carry passengers or freight in the dealer's business. further. the weight as obtained: by actual weighing shall be considered the vehicles weight: Provided. (e) The fee for registration of motor vehicles for hire shall be sixty percent more than the fee prescribed for private motor vehicles of the same category. . The registered passenger capacity of passenger automobiles operated for hire or for private use shall be determined as follows: 1. the sum of five pesos for every hundred kilograms of maximum allowable gross weight or fraction thereof. The Commissioner of Land Transportation may.00 2. provided. Such vehicles shall be operated under this classification only for the purpose of transporting the vehicle itself from the pier or factory to the warehouse or sales room or for delivery to a prospective purchaser or for test or demonstration. not less than thirty-five centimeters wide and sixty centimeters long.000 to 1. (c) Private motor trucks. If such tourist remain in the Philippines longer than ninety days.00 1.00 The factory or shipping weight of a private automobile shall be obtained from the Red Book edited by the National Market Report. without registering such motor vehicles. allow the registration under this classification of motor vehicles which do not conform to the foregoing described regular classification. except in the front seat.. (n) government trucks. Motor vehicles owned by the Government of the Philippines or any of its political subdivisions shall be registered under these classifications. use the same during but not after ninety days of their sojourn: Provided. the motor vehicle shall not be operated unless registered in accordance with this Act and the corresponding registration fees paid. including seat and feet spaces. (b) Private motor trucks. ARTICLE II Registration Fees Section 8. a horizontal rectangular area.dealer's classification shall. under no circumstances. 2. . (m) Government automobiles. That the increase registration fees herein prescribed shall not apply to jeeps and jeepneys for private use or for hire and the fees hereof shall be those prescribed for them before the approval of this Act. and (o) government motorcycles. passenger buses and trailers with solid rubber tires or with part-solid and part-pneumatic rubber tires. furthermore. not less that seventeen and a half centimeters wide by sixty centimeters long. that each continuous row of seats shall not be allowed to have more that one-half passenger. That in the case of automobiles with altered.001 kilos and above 180. of the United States of America: Provided.501 to 2. For each half passenger. For each adult passenger. changed or rebuilt bodies. (p) Tourists bringing their own motor vehicles to the Philippines may.000 kilos 135. and said number plates as well as the name and address (permanent and temporary) of the owner thereof are registered in the Land Transportation Commission prior to the operation of the motor vehicle.500 kilos 100. a horizontal rectangular area. Motor vehicles owned by government corporations.Except as otherwise specifically provided in this Act. Inc. which shall allow an area fifty centimeters wide for the operator. in his discretion.

That in the event motor vehicles exempted under this section shall be found operated on any public highways. from time to time as the need of the service may require. subject to the approval of the Secretary of Public Works and Communications. however. or reimbursement of registration fees or part thereof shall be made to any owner on account of the discontinuance of the use or operation of a motor vehicle subsequent to the payment of such registration fees: Provided. That no refund. or which are operated on highways not constructed or maintained by the Government. That the fifty per cent penalty shall apply only to the unpaid balance of the remaining period of delinquency. prepare. may promulgate. Per most heavily loaded axle group fourteen thousand five hundred kilograms. credit for. (j) The maximum allowable gross weight of a motor truck. the first to be paid on or before the last working day of February if for hire. The fee for registration of motor vehicles for hire shall be sixty percent more than the fees prescribed for private motor vehicles. city or municipal authority shall enact or enforce any ordinance or resolution regulating or prescribing the maximum gross weight of any motor vehicle. the regular registration fees and surcharges shall be collected in addition to whatever penalties may be imposed for violation of this Act. and the second to be paid on or before the last working day of August: Provided. and in March if private. One hundred pesos for each passenger automobile. The Commissioner of Land Transportation shall provide distinctive number plates for vehicles exempted from payment of regular registration fees. from time to time. Permissible maximum weights: 1. 3. Permissible weights and dimensions of vehicles in highways traffic. That the Commissioner of Land Transportation shall provide appropriate dealer's number plates corresponding to the classification of vehicles hereinbelow described. shall be determined by the Commissioner of Land Transportation. eight thousand kilograms. (g) No regular registration fees shall be charged for the general registration of motor vehicles contemplated under the dealer's classification: Provided. suitable tables of maximum allowable loads per wheel for different sizes kinds of tires. and registration fee for every set of such dealer's number plates shall be in accordance with the following schedule of rates. or trailer. (a) The maximum gross weight and measurement of motor vehicles.(f) The fee for registration of diesel-consuming vehicles shall be fifty percent more than that of vehicles using motor fuel other than diesel oil. No provincial. (k) The registration fees provided in this Act for trucks may be payable in two equal installment. as the conditions of the public highways may warrant and the needs of the service may require. and the owner of the vehicles concerned shall pay four pesos for each set of such number plates. (i) Motor vehicles not intended to be operated or used upon any public highway. Two hundred pesos for each truck or trailer. (the two axles of the group being at least one meter and less than two meters apart) An axle weight shall be the total weight transmitted to the road by all the wheels the centers of which can be included between the parallel transverse vertical planes one meter apart extending across the full width of the vehicles. (h) Registration under the "Government Motor Vehicle" classification shall be free of charge. but shall each pay an annual recording and service fee of fifteen pesos: Provided. further. or are intended not to be used or operated at all. upon which to compute the registration fee thereof. passenger bus. permissible on public highways shall be as specified hereunder. and Twenty pesos for each motorcycle and the like. shall be exempt from payment of the registration fees provided in this Act. subject to such regulations as the Commissioner with the approval of the Secretary of Public Works and Communications. upon request of the chief of bureau or office concerned. Per most heavily loaded wheel 2. unladen or with load. Section 9. He shall. . Per most heavily loaded axle three thousand six hundred kilograms.

preparation of affidavit or certified copy of records. Issuance of certificates of registration. . . customs duties or other charges shall be accepted unless proof of payment of the taxes due thereon has been presented to the Commission. . from private to for hire or vice-versa. transfer of ownership. driver's license or permit. shall issue regulations and schedules of additional fees under which special permits may be issued in the discretion of the Commissioner or his deputies for each of the following special cases. three-fourths of the annual fee for that year shall be paid. or for any similar circumstances requiring the issue. or axle group loads in excess of the limits fixed in subsection (a) of Section nine hereof or in any regulation issued by the Commissioner. revision. Special permits. replacement of a lost registration certificate. and shall be presented with subsequent applications for re-registration. Section 12.(b) No motor vehicle operating as a single unit shall exceed the following dimensions: Overall width two and five-tenths meters Overall height four meters Overall length: Freight vehicles with two axles ten meters Passenger vehicles with two axles eleven meters Vehicles with three or more axles fourteen meters (c) No motor vehicle and/or trailer combination shall exceed eighteen meters in overall projected length. The replacement of a lost or utterly spoiled certificate. Use and authority of certificate of registration. Payment of taxes upon registration. Nothing in this section shall be construed as allowing quarterly renewals of registrations in order to avoid payment of fees in advance for the entire year. badge or permit shall render the original invalid. . change of tire size. permit. axle. Section 11.If any application for the original registration is made during the first quarter of a calendar year. (a) The said certificate shall be preserved and carried in the car by the owner as evidence of the registration of the motor vehicle described therein. Fee for original registration for part of year. the total annual fee for the year shall be paid. one-fourth of the annual fee shall be paid. including any load carried on such vehicle and trailer. number plate. That in lieu of the certificate of registration a true copy or photostat thereof may be carried in the motor vehicle. a fee of two pesos shall be collected. Section 10. (d) To pull two trailers behind a motor vehicle. Records. without which special permit no vehicles shall be operated on the public highways: (a) To operate a motor vehicle or trailer outfit with wheel. ARTICLE III Registration Certificates. In case of request in writing for certification of data or facts involving two or more vehicles. or other document. Additional fees. license.In addition to the fees elsewhere provided in this Act. badge. (c) To operate a motor vehicle with any part of the load extending beyond the projected width of the vehicle. for each change of registration. driver's license.The Commissioner with the approval of the Secretary of Public Works and Communications. Section 13. . badge. (d) No articulated vehicles shall be allowed to draw or pull a trailer and no vehicle already drawing a trailer shall draw another. if made during the third quarter. fees for. or reissue of a certificate of registration.No original registration of motor vehicles subject to payment of taxes. (e) For any other special authority relating to the use of vehicles. if made during the second quarter. . or recording of encumbrances: Provided. and if made during the fourth quarter. revision of gross weight rating. number plate. Section 15. a fee of five pesos a page or part thereof shall be collected for each certification. (b) To operate a motor vehicle the size of which exceeds the limit of permissible dimensions specified in paragraph (b) of Section nine hereof. Number Plates Section 14.A properly numbered certificate of registration shall be issued for each separate motor vehicle after due inspection and payment of corresponding registration fees. transfer of ownership. not otherwise specifically provided herein. one half of the annual fee shall be paid.

improperly marked or equipped. the Commissioner may. and privately-owned motor vehicles shall bear plates so designed and painted with different colors to distinguish one class from another: Provided. while the same is valid and effective and has not been suspended or revoked. After two such suspension. provided. Number plates. one in front and one in the rear thereof. Section 16.If on inspection. furthermore. That all motor vehicles exempted from payment of registration fees. and no dealer shall allow such dealer's number plates to be used on any motor vehicle after its sale and delivery to a purchaser. Whenever it shall appear from the records of the Commission that during any twelve-month period more than three warnings for violations of this Act have been given to the owner of a motor vehicle. suspend such registration until the defects of the vehicle are corrected and/or the minimum standards and specifications fully complied with. (a) The Commissioner shall cause number plates to be prepared and issued to owners of motor vehicles and trailers registered under this Act. thereupon. in their discretion.At all times. or not conforming to minimum standards and specifications. or if already registered. the Commissioner or his deputies may. CHAPTER III OPERATION OF MOTOR VEHICLE ARTICLE I License to Drive Motor Vehicles . That in case no number plates are available.(b) The certificate of registration issued under the provisions of this Act for any motor vehicle shall. motor vehicles for hire. Except in the case of dealer's number plates which may be used successively on various motor vehicles in stock. every motor vehicle shall display in conspicuous places. That the owner thereof shall return such plates to the Land Transportation Commission within a period of seven working days after such owner has lost his exemption privilege or has transferred the vehicle to a non-exempt owner. preparation. The Commissioner shall notify the owner of the motor vehicle of any action taken by him under this section. . Whenever a motor vehicle is found to be underweight the owner thereof shall pay the difference in the registration fees corresponding to the shortage in weight plus a fifty per cent surcharge. charging a fee of four pesos for each pair including the numerals indicating the year of registry: Provided. or capable of causing excessive damage to the highways. or otherwise unfit to be operated. That the plates of motor vehicles exempted from payment of registration fees shall be permanently assigned to such motor vehicles during their entire lifetime while exempted from payment of the fees: And. finally. in his discretion. unsafe. (b) In case the design of the number plate is such that the numerals indicating the year of registry are on a detachable tag. and upon seventy-two hours notice to the owner of the motor vehicle. (c) No motor vehicle shall be operated on the public highways in a manner which would place it under a classification requiring the payment of a larger registration fee than that stated in the certificate of registration. and shall be firmly affixed to the motor vehicle in such a manner as will make it entirely visible and always legible. no person shall transfer number plates from motor vehicle to another. overloaded. and until such payment is made. preparation and issuance of . . any motor vehicle is found to be unsightly. the said number plates. be the authority for the operation of such motor vehicle. the Commissioner may refuse to register the said motor vehicle. may require the number plates thereof to be surrendered to him. Suspension of registration certificate. a written permit temporarily authorizing the operation of any motor vehicles with other means of identification: Provided. or that the said owner has been convicted by a competent court more than once for violation of such laws. Section 17. suspend the certificate of registration for a period not exceeding ninety days and. Use of number plates. No dealer's number plate shall be used on any motor vehicle after said vehicle has been sold and delivered to a purchaser. the certificate of registration of the motor vehicle concerned shall be suspended by the Commissioner. shall require the immediate surrender of the number plates. however. without charge. issue the said tag only for subsequent re-registration charging a fee of one peso for each tag issued. further. Section 18. the Commissioner or his deputies may issue. as provided in paragraph (6) of Section four hereof. The number plates shall be kept clean and cared for. re-registration of the vehicle concerned for one year may be denied.

or hire any person to operate such motor vehicle. such as. . display in plain sight on the band of his cap or on his coat or shirt. however. after such examination. within fifteen days. Use of driver's license and badge. The Commissioner or his deputies shall also ascertain that the applicant's sight and hearing are normal. A license so marked or stamped shall authorize the holder thereof to operate a private-owned motor vehicle. the Commissioner or his deputy believes that the applicant possesses the necessary qualifications and is proficient in the operation of motor vehicles. at all times while so operating a motor vehicle. except when the license is surrendered to . Operation of motor vehicles by tourists. suspended or revoked. License for enlisted men operating Government motor vehicles. An examination or demonstration to show any applicant's ability to operate motor vehicles may also be required in the discretion of the Commissioner or his deputies. unless the person sought to be employed is a duly licensed professional driver. Section 26. however. and may in their discretion. the applicant shall furnish three copies of his recent photograph to be securely attached to the license.Bona fide tourist and similar transients who are duly licensed to operate motor vehicles in their respective countries may be allowed to operate motor vehicles during but not after ninety days of their sojourn in the Philippines. as may be required by the Commission. Duty to procure license. which upon investigation by the Commissioner or his deputies indicates that the said tourist or transient is incompetent to operate motor vehicles. any tourist or transient desiring to operate motor vehicles shall pay fees and obtain and carry a license as hereinafter provided. Each such application except in the case of enlisted men operating government-owned vehicles. Issuance of driver's license. and the like. Driver's license. If any accident involving such tourist or transient occurs. but no license or delinquency fees shall be collected therefrom. syphilis. That every licensed professional driver. Renewal of license.Except as otherwise specifically provided in this Act. but prior to the issuance of said license. gonorrhea. fees. Driver's records. shall secure from the Commissioner. . lend or otherwise allow any person to use his license for the purpose of enabling such person to operate a motor vehicle. It shall be unlawful for any duly licensed driver to transfer. the Commissioner shall immediately inform the said tourist or transient in writing that he shall no longer be permitted to operate a motor vehicle. shall be accompanied by a fee of five pesos. employ. Section 20.If. and shall contain such information respecting the applicant and his ability to operate motor vehicles.Every person who desires personally to operate any motor vehicle shall file an application to the Commissioner or his deputies for a license to drive motor vehicles: Provided. Section 22. before operating a public service motor vehicle registered under classifications (d) to (j) inclusive of Section seven hereof. . . and such other information as the Commissioner may require. upon payment of the sum of one peso. require a certificate to that effect.Enlisted men operating a motor vehicle owned by the Government of the Philippines shall be licensed in accordance with the provisions of this Act. All licenses so issued shall bear the words "For Government Vehicles Only" plainly marked or stamped in red ink across the face thereof.Every license issued under the provisions of this Act to any driver shall entitle the holder thereof. nor while such license is delinquent. Section 24. examination. name and address of his new employer. The license shall be carried by the driver at all times when operating a motor vehicle. Section 23.Section 19.Any driver who changes his address shall. no person shall operate any motor vehicle without first procuring a license to drive a motor vehicle for the current year. . Section 21. advanced tuberculosis. . invalid. No owner of a motor vehicle shall engage. to operate the motor vehicles described in such license: Provided.Any license not renewed on or before the last working day of the month when the applicant was born shall become delinquent and invalid. a driver's badge which he shall. . signed by a reputable physician. and two copies to be filed and kept as provided by this Act. the number of the motor vehicle he is employed to operate. That no person shall be issued a professional driver's license who is suffering from highly contagious diseases. and shall be shown and/or surrendered for cause and upon demand to any person with authority under this Act to confiscate the same. Such driver's badge shall be of metal with a plainly readable number assigned to the licensee stamped thereon. After ninety days. a license shall be issued to such applicant upon payment of five pesos. . notify the Commissioner in writing of his new address. All driver's licenses shall bear the signature and righthand thumb print of the licensee. Section 25. while the same is valid and effective and not suspended or revoked.

. after hearing. That should the Commissioner decide not to revoke the license of a driver who has been convicted of homicide through reckless imprudence. or of local traffic rules and regulations. for the same cause. which photograph shall have been taken not exceeding three years prior to the date of applicant for renewal. in his discretion. Lost license. Suspension. together with the proper fee of five pesos and.The Commissioner before reinstating any driver's license which has been suspended or revoked under the provisions of the preceding section or of any provisions of this Act. . Any deputy of the Commissioner may. That such suspension may be appealed to the Commissioner who may. (d) A decision of the Commissioner revoking or refusing the reinstatement of a license under the provisions of this Section may be appealed to the Secretary of Public Works and Communications. in their discretion accept in lieu of the previous years license. may require such driver to post a bond in the sum of one thousand pesos conditioned upon the satisfaction and payment of any claim which may be filed or of any execution which may be issued against such driver in any case wherein said driver may be held answerable while operating motor vehicles. in apprehending any driver for violations of this Act or of any regulations issued pursuant thereto. in the case of professional chauffeurs. Section 28. to renew the license: Provided. further. or in operating or using a motor vehicle in. . after reviewing the case. (a) The Commissioner may suspend for a period not exceeding three months or. Confiscation of driver's licenses. by the Commissioner or his deputies. The bond required in this section shall be in such form as to render sureties liable at least for a period of not less than one year nor more than three years: Provided. and may order any such license to be delivered to him whenever he has reason to believe that the holder thereof is an improper person to operate motor vehicles. the commission of any crime or act which endangers the public. on penalty of refusal. That the Commissioner or his deputies may. Driver's bond. conditioned upon the payment of any claim which may be filed or any execution which may be issued against him in any case wherein said driver may be held answerable while operating motor vehicles. confirm.the Commissioner or his deputies before the last working day of the month of his birth in order to avoid payment of the delinquency fees. (b) Whenever during any twelve-month period a driver shall have been convicted at least three times for the violations of any provisions of this Act or of any regulation issued by the Commissioner or any municipal or city ordinance relating to motor vehicle traffic not in conflict with any of the provisions of this Act. the Commissioner may. Section 27. reverse or modify the action taken by such deputy. revoke or suspend the license of such driver for a period not exceeding two years. Every applicant for renewal of license to operate any motor vehicle shall present to the Commissioner. suspend for a period not exceeding three months any driver's license issued under the provisions of this Act: Provided. however. however. authorize the release of the bondsmen from further responsibility thereunder: Provided. The fee for renewal of delinquent license shall be five pesos in addition to the basic fee as hereinabove prescribed. (c) The license suspended or revoked under the provisions of subsections (a) and (b) of this section shall not be reinstated unless the driver has furnished a bond in accordance with Section twenty-nine of this Act and only after the Commissioner has satisfied himself that such driver may again safely be permitted to operate a motor vehicle.Law enforcement and peace officers duly designated by the Commissioner shall. three copies of a readily-recognized photograph of the applicant. the license issued to the applicant for the previous year. confiscate the license of the driver concerned and . revoke any driver's license issued under the provisions of this Act. That upon written application to the Commissioner for release from such a bond. The Commissioner and his deputies are hereby authorized to administer the oath in connection with such affidavit. the said driver shall post a bond in the sum of not less than two thousand pesos. Section 29. or as an accessory to. the duly signed and sworn statement of an operator to the effect that he has not operated any motor vehicle in the Philippines during the year or years to which no license was issued in his name. in person or by mail or messenger. or of the violation of the speed limit or of reckless driving at least three times within a twelve-month period. the Commissioner may after revoking or suspending the driver's license. the applicant shall obtain a duplicate in accord with Section eleven of this Act. revocation of driver's license.In case the license for the previous year has been lost or cannot be produced.

No person shall make or use attempt to make or use a driver's license. number plate. . the conductor shall be exclusively liable for violations of this section or of Section thirty-two. in letters and numerals not less than five centimeters in height. attaching a readily recognizable photograph and after presentation of a medical certificate of fitness of applicant. Number Plates. certificate. No person shall. who desire to learn to operate motor vehicles. That subject to such conditions as may be contained in permits that may be issued by the Commissioner. subject to the approval of the Commissioner: Provided. The licensed driver acting as instructor to the student driver shall likewise be responsible and liable for any violation of the provisions of this Act and for any injury or damage done by the motor vehicle on account or as a result of its operation by a student under his direction. shall not exceed one hundred kilos. (c) Riding on running boards. and shall become invalid thereafter. step board. shall get a permit or license from the Commission and pay five pesos annually for said license or permit issued in his favor. Failure of the driver to settle his case within fifteen days from the date of apprehension will cause suspension and revocation of his license. Section 33. . valid for six months to persons not under eighteen years of age. the Commissioner or his deputy may issue student-driver's permits.No person operating any vehicle shall allow more passenger or more freight or cargo in his vehicle than its registered carrying capacity. No application for driver's license shall be received unless the applicant has undergone instruction in the operation of motor vehicles for at least a month and has a valid student-driver's permit: Provided. Imitation and false representations. . . Etc. badge. That the total weight of the device. or mudguard of his motor vehicle for any purpose except to make repair or adjustment in the motor or to collect fares. baggage or freight may be carried on the top of a truck provided the weight thereof does not exceed twenty kilos per square meter and is distributed in such a manner as not to endanger the passengers or stability of the truck. in letters and numerals not less than five centimeters in height. before being employed by any public service operator. Exceeding registered capacity. however. tag. or intended to be used as or for a legal license. Student-driver's permit. Passenger or freight capacity marked on vehicle. be allowed to pay for a driver's license without presenting a student driver's permit. badge. and the same is renewable on or before the last working day of the month of his birth. Section 31. . or for hire. however. tag or permit issued under this Act which is delinquent or which has been revoked or suspended. or with intent to sell or otherwise dispose of the same to another. make one or more false or fraudulent statements in an application for the registration of vehicles.All passengers automobiles for hire shall have the registered passenger capacity plainly and conspicuously marked on both sides thereof. badge. Section 30. The period so fixed in the receipt shall not be extended. In the case of public utility trucks or buses. No student driver shall operate a motor vehicle unless accompanied by a duly licensed driver. That the conductor. No person shall falsely or fraudulently represent as valid and in force any driver's license. shall have the registered passenger gross and net weight capacities plainly and conspicuously marked on both sides thereof. All motor trucks. letter (c) hereof: Provided. That any person who has a license to operate vehicles in other countries may.Upon proper application and the payment of three pesos. . plate. whether for passenger or freight. however. ARTICLE II Illegal Use of Licenses. plate. A student driver who fails in the examination shall continue as a student driver for at least one additional month. certificate of registration. tag or permit. including the cargo. upon presentation of appropriate evidence of such license. or permit in imitation or similitude of those issued under this Act. knowingly and with intent to deceive. certificate. Passenger trucks may be allowed to construct any cargo carrying device at the rear or at the side of the truck.No driver shall permit any person to ride on the running board. or for a driver's license.No person operating a motor vehicle shall allow any passenger to ride on the cover or top of such vehicles: Provided.issue a receipt prescribed and issued by the Commission therefor which shall authorize the driver to operate a motor vehicle for a period not exceeding seventy-two hours from the time and date of issue of said receipt. private. ARTICLE III Passenger and Freight Section 32. . (b) Carrying of passengers and freight on top of vehicles.

while in use on any public highway during night-time. or nature. No vehicle not classified as a motor vehicle under this Act shall be equipped with a horn or signaling device similar to the horn customarily used on motor vehicles. colored riding lights on each of the four corners not more than ten centimeters from the top.Appropriate parking lights or flares visible one hundred meters away shall be displayed at a corner of the vehicle whenever such vehicle is parked on highways or in places that are not well-lighted or is placed in such manner as to endanger passing traffic. Trucks. (b-1) Horns.No motor vehicle with metallic tires shall be operated upon any public highway. or disagreeable sound shall be installed or used on any motor vehicle.Every motor vehicle of less than one meter of projected width shall be subject to the preceding provisions of this section. when the brakes are applied. and solid tires whenever used shall be of sufficient thickness to prevent the metal rims thereof from coming in direct contact with the road. but no red lights shall be visible forward or ahead of the vehicle. Additional lamps and light may be carried. Each bus. trailer or similar vehicle shall be equipped. one on each side. Additional lamps may be carried provided they comply with the preceding provisions of this section. however.Every motor vehicle and trailer shall. All motor vehicles shall be equipped with devices for varying the intensity of light. municipalities. or whatever style. . (g) Lights when parked or disabled. . during the above-mentioned hours. or whenever such vehicle meets another vehicle on any public highway. (a) Tires of motor vehicles. shall both be lighted.Every motor vehicle with four or more wheels shall be provided with dual hydraulic brake system so that in case of hydraulic line failure affecting the braking efficiency of any of the four wheels at least either the front or rear wheels shall retain normal braking capabilities. That no horn or signalling device emitting an exceptionally loud. (f) Motorcycle and other vehicle lights. siren. which. Every motor vehicle.Every motor vehicle shall be provided with a horn or signalling devise in good working order: Provided.Every motor vehicle of more than one meter of projected width. truck. All authorized emergency vehicles. also bear on each side in the rear a lamp showing a red light visible at least one hundred meters from the rear of the vehicle and a lamp throwing a white light upon the number plate issued for such vehicle. not later than one-half hour after sunset and until at least one-half four before sunrise and whenever weather conditions so require. No signal light shall be necessary. . when upon a highway during the hours above-mentioned. (d) Taillights. shall have one or more lights so arranged that the same shall be visible at least fifty meters from the front and the rear of such vehicle. . This requirement. character. buses. as its stop light at or near its rear center. whether in motion or not. except that one headlight and one taillight shall be required. (b) Brakes . . startling. kind. trailers. such as ambulance and police cars and fire wagons used for emergency calls shall be equipped with a bell. ARTICLE IV Accessories of Motor Vehicles . In the absence of such dual braking system every motor vehicle with four or more wheels shall be provided with safety valve devices of such design and make so that failure of the hydraulic braking system of the vehicle because of leakage in the line of other parts of the system will not affect all wheels but rather render at all times effective the braking power of either the two front wheels or the two rear wheels when brakes are applied. while in use on any public highway shall bear two headlights.Every motor vehicle shall be equipped at the rear with at least one lamp which shall throw a sustained bright red light visible under all conditions. and other similar vehicles must carry. (e) Stop lights. and no such device shall be installed or used in any other vehicle. . and thickly populated barrios or districts. . even under bright sunlight. (c) Headlights. with white or yellowish light visible from the front. and the driver must dim the headlights or tilt the beams downward whenever the vehicle is being operated on welllighted streets within the limits of cities. however. or exhaust whistle of a type approved by the Commissioner. with a lamp at least twelve centimeters in diameter with the word "stop" inscribed in the center.Section 34. does not apply to motor vehicles equipped with pneumatic braking system. make.

(2) The driver of a hospital ambulance on the way to and from the place of accident or other emergency.(h) Windshield wiper.Every motor vehicle shall be equipped with a mechanically or electrically operated device for wiping off raindrops or other moisture from its front windshield." passing school zones. 3.Whenever the load of any vehicle extends more than one meter beyond the bed or body thereof. per hour (c) The rates of speed hereinabove prescribed shall not apply to the following: (1) A physician or his driver when the former responds to emergency calls. (4) The driver of a motor vehicle belonging to the Armed Forces while in use for official purposes in times of riot. per hour 20 km. per hour 30 km. smoke or noise. or thickly populated district or barrio. municipality. limb and property of any person. in lieu of the required red flags. nor at a speed greater than will permit him to bring the vehicle to a stop within the assured clear distance ahead. On city and municipal streets. passing other vehicles which are stationery. (6) A law-enforcement officer who is trying to overtake a violator of traffic laws. (j) Mufflers. (3) Any driver bringing a wounded or sick person for emergency treatment to a hospital. having due regard for the traffic. and of any other condition then and there existing. (a) Any person driving a motor vehicle on a highway shall drive the same at a careful and prudent speed. clear of 40 km. per hour traffic. with light traffic. insurrection or invasion. and . . or for similar dangerous circumstances. approaching intersections at "blind corners. . not greater nor less than is reasonable and proper. per hour 30 km. On open country roads. (5) The driver of a vehicle. per hour Motor trucks and buses 50 km.Every motor vehicle propelled by an internal combustion engine shall be equipped with a muffler." when so designated. or any other similar place. there shall be displayed at every projecting end of such load a red flag not less than thirty centimeters both in length and width. Through crowded streets. red lights visible at least fifty meters away. per hour 20 km. the muffler shall not be cut out or disconnected. 4. (b) Subject to the provisions of the preceding paragraph. Restriction as to speed. (i) Use of red flag. when not designated "through streets". when he or his passengers are in pursuit of a criminal. the rate of speed of any motor vehicle shall not exceed the following: MAXIMUM ALLOWABLE SPEEDS 1. No motor vehicle shall be operated in such a manner as to cause it to emit or make any unnecessary or disagreeable odor. there shall be displayed. and no person shall drive any motor vehicle upon a highway at such a speed as to endanger the life. CHAPTER IV TRAFFIC RULES ARTICLE I Speed Limit and Keeping to the Right Section 35. clinic. except that during the hours fixed under subsection (c). and whenever said motor vehicle passes through a street of any city. with no " blind corners. 30 km. the width of the highway. On "through streets" or boulevards. per hour 2. with no "blinds corners" not closely bordered by habitations. Passengers Cars and Motorcycle 80 km. .

(c) The driver of a vehicle shall not overtake or pass any other vehicle proceeding in the same direction. having two or more lanes for the movement of traffic in one direction. city or municipal authority shall enact or enforce any ordinance or resolution specifying maximum allowable speeds other than those provided in this Act. upon the right. when approaching the crest of a grade. except on a highway having two or more lanes for movement of traffic in one direction where the driver of a vehicle may overtake or pass another vehicle: Provided. That on a highway within a business or residential district. . proceeding in the same direction. or because of unreasonable difficulty of operation in compliance herewith. Section 36. Overtaking a vehicle. Section 37. provided that exemption shall not be construed to allow unless or unnecessary fast driving of drivers aforementioned.Unless a different course of action is required in the interest of the safety and the security of life. the driver of a vehicle may overtake and pass another vehicle on the right. any other vehicle proceeding in the same direction in any "no-passing or overtaking zone. . any other vehicle. Nothing in this section shall be construed to prohibit a driver overtaking and passing. It shall be the duty of every provincial.Public highways shall be properly classified for traffic purposes by the provincial board. Section 38. or unless permitted to do so by a watchman or a peace officer. Driving on right side of highway. unless such left side is clearly visible. ARTICLE II Overtaking and Passing a Vehicle.No provincial. (b) The driver of a vehicle shall not overtake or pass another vehicle proceeding in the same direction. where the driver's view along the highway is obstructed within a distance of five hundred feet ahead. every person operating a motor vehicle or an animal-drawn vehicle on a highway shall pass to the right when meeting persons or vehicles coming toward him. except on a highway having two or more lanes for movement of traffic in one direction where the driver of a vehicle may overtake or pass another vehicle on the right." . having two or more lanes for movement of traffic in one direction. and shall not increase the speed of his vehicle until completely passed by the overtaking vehicle. subject to the approval of the Commissioner. Speed limits uniform throughout the Philippines. Section 41. locations. not at any intersection of highways unless such intersection or crossing is controlled by traffic signal. Section 40. (a) The driver of a vehicle shall not drive to the left side of the center line of a highway in overtaking or passing another vehicle proceeding in the same direction. Classification of highways.(7) The driver officially operating a motor vehicle of any fire department. another vehicle which is making or about to make a left turn. or attempt to pass. . municipal board or city council shall provide appropriate signs therefor. . not upon a curve in the highway.The driver of a vehicle about to be overtaken and passed by another vehicle approaching from the rear shall give way to the overtaking vehicle on suitable and audible signal being given by the driver of the overtaking vehicle. municipal board or council. between any points indicated by the placing of official temporary warning or caution signs indicating that men are working on the highway. . person or property. and is free of oncoming traffic for a sufficient distance ahead to permit such overtaking or passing to be made in safety. Nothing in this section shall be construed to prohibit a driver overtaking or passing upon the right another vehicle which is making or about to make a left turn. at any railway grade crossing. within a business or residential district. and limits of all "through streets" designated as such by the provincial board. Driver to give way to overtaking vehicle. and to the left when overtaking persons or vehicles going the same direction. every vehicle shall be conducted to the right of the center of the intersection of the highway. or attempt to overtake or pass. and shall not again drive to the right side of the highway until safety clear of such overtaken vehicle except that on a highway. Restrictions on overtaking and passing. and said provincial board. the driver of a vehicle may overtake or pass another vehicle on the right.The driver of any motor vehicle overtaking another vehicle proceeding in the same direction shall pass at a safe distance to the left thereof. (e) The driver of a vehicle shall not overtake or pass. (d) The driver of a vehicle shall not overtake or pass. municipal board or city council having jurisdiction over them. city and municipal secretary to certify to the Commissioner the names. and when turning to the left in going from one highway to another. and Turning at Intersections Section 39.

upon a highway in any of the following places: ARTICLE III Right of Way and Signals . Exception to the right of way rule. the driver of the vehicle on the left shall yield the right of way to the vehicle on the right. Section 46. and whenever the operation of any other vehicle approaching or following may be affected by such movement. or permit it to stand. (c) The driver of any vehicle upon a highway within a business or residential district shall yield the right of way to a pedestrian crossing such highway within a crosswalk. (d) The driver of a vehicle upon a highway shall bring to a full stop such vehicle before traversing any "through highway" or railroad crossing: Provided. That when it is apparent that no hazard exists. other than traffic control device. shall give a signal plainly visible to the driver of such other vehicles of the intention to make such movement. ARTICLE IV Turning and Parking Section 45. shall pass to the left of the center of the intersection. Right of way. except as otherwise hereinafter provided. (b) The driver of a vehicle approaching but not having entered an intersection. Section 44. (a) The driver of a vehicle entering a highway from a private road or drive shall yield the right of way to all vehicles approaching on such highway. and. in turning. upon highways laned for traffic and upon one-way highways. the center of the intersection shall mean the meeting point of the medial lines of the highways intersecting one another. Section 43. or by an approved mechanical or electrical signal device. except that. (a) The drive of a vehicle intending to run to the right at an intersection shall approach such intersection in the lane for traffic nearest to the right-hand side of the highway and. Signals on starting. (c) The driver of a vehicle entering a "through highway" or a "stop intersection" shall yield the right of way to all vehicles approaching to either direction on such "through highway": Provided. stopping or turning. . That nothing in this subsection shall be construed as relieving the driver of any vehicle being operated on a "through highway" from the duty of driving with due regard for the safety of vehicles entering such "through highway" nor as protecting the said driver from the consequence of an arbitrary exercise off such right of way. (a) The driver of any vehicle upon a highway. (b) The signal herein required shall be given by means of extending the hand and arm beyond the left side of the vehicle. in turning. Turning at intersections. (c) For the purpose of this section. Parking prohibited in specified places. and if any pedestrian may be affected by such movement. before starting. (a) When two vehicles approach or enter an intersection at approximately the same time. grass plot or any permanent structure. shall give a clearly audible signal by sounding the horn. (b) The driver of a vehicle upon a highway shall yield the right of way to police or fire department vehicles and ambulances when such vehicles are operated on official business and the drivers thereof sound audible signal of their approach. except at intersections where the movement of traffic is being regulated by a peace officer or by traffic signal. a left turn shall be made from the left lane of traffic in the direction in which the vehicle is proceeding. Every pedestrian crossing a highway within a business or residential district. shall yield the right of way to a vehicle within such intersection or turning therein to the left across the line of travel of such first-mentioned vehicle. the vehicle may be slowed down to five miles per hour instead of bringing it to a full stop. except when it is occupied by a monument. shall first see that such movement can be made in safety. stopping or turning from a direct line. at any point other than a crosswalk shall yield the right of way to vehicles upon the highway. provided the driver of the vehicle turning left has given a plainly visible signal of intention to turn as required in this Act. The driver of any vehicle traveling at an unlawful speed shall forfeit any right of way which he might otherwise have hereunder. (b) The driver of a vehicle intending to turn to the left shall approach such intersection in the lane for traffic to the right of and nearest to the center line of the highway.No driver shall park a vehicle. whether attended or unattended. shall keep as close as possible to the right-hand curb or edge of the highway.Section 42.

Section 49. give his true name and address and also the true name and address of the owner of the motor vehicle. Driving or parking on sidewalk. visibility and other conditions of the highway and the conditions of the atmosphere and weather. Duty of driver in case of accident. or of an ambulance giving audible signal. Section 52. the penalty shall be a fine fifty per cent of the registration fees corresponding to the portion of the year for which the vehicle is registered for use. shall hold fast to or hitch on to any moving vehicle.No person shall drive or park a motor vehicle upon or along any sidewalk. . (b) For failure to sign driver's license or to carry same while driving. roller skate or other similar device.No person shall operate a motor vehicle on any highway recklessly or without reasonable caution considering the width. or so as to endanger the property or the safety or rights of any person or so as to cause excessive or unreasonable damage to the highway. the outside or the rear end of any vehicle.Upon the approach of any police or fire department vehicle.The following penalties shall be imposed for violations of this Act: (a) For registering later than seven days after acquiring title to an unregistered motor vehicle or after conversion of a registered motor vehicle requiring larger registration fee than that for which it was originally registered. path or alley not intended for vehicular traffic or parking. the driver of every other vehicle shall immediately drive the same to a position as near as possible and parallel to the right-hand edge or curb of the highway. Section 55. . Obstruction of traffic. Reckless driving. twenty pesos fine. Parked vehicle. . 2. and shall stop and remain in such position. shall show his driver's license. ride on. . Section 47. Hitching to a vehicle. If he reports the accident to the nearest officer of the law. the driver thereof must turn off the ignition switch and stop the motor and notch effectively the hand brake. traffic. ARTICLE V Miscellaneous Traffic Rules Section 48.In the event that any accident should occur as a result of the operation of a motor vehicle upon a highway. . handle the levers or set in motion or in any way tamper with a damage or deface any motor vehicle. Right of way for police and other emergency vehicles. . . Section 51. No driver of a motor vehicle concerned in a vehicular accident shall leave the scene of the accident without aiding the victim. . Section 54.No person shall drive his motor vehicle in such a manner as to obstruct or impede the passage of any vehicle. CHAPTER V PENAL AND OTHER PROVISIONS ARTICLE I Penalties Section 56. the driver present. while discharging or taking on passengers or loading or unloading freight.No person shall drive a motor vehicle while under the influence of liquor or narcotic drug. . clear of any intersection of highways. nor. Driving while under the influence of liquor or narcotic drug. except under any of the following circumstances: 1.No unauthorized person shall sound the horn. grades. Penalty for violation. Section 50. (d) Within four meters of the driveway entrance to and fire station. If he is in imminent danger of being seriously harmed by any person or persons by reason of the accident. .No person shall hang on to. crossing. roller skate or other similar device to hold fast or hitch to his vehicle. obstruct the free passage of other vehicles on the highway. .Whenever a motor vehicle is parked unattended on any highway. Tampering with vehicles.(a) Within an intersection (b) On a crosswalk (c) Within six meters of the intersection of curb lines. the outside or rear end of his vehicle or allow any person on a bicycle. curvatures. and no person on a bicycle. If he has to summon a physician or nurse to aid the victim. and no driver shall knowingly permit any person to hang on to or ride. or for renewal of a delinquent registration. Section 53. (e) Within four meters of fire hydrant (f) In front of a private driveway (g) On the roadway side of any vehicle stopped or parked at the curb or edge of the highway (h) At any place where official signs have been erected prohibiting parking. or 3. until such vehicle shall have passed. unless otherwise directed by a peace officer.

plate. the City Court of Municipal Court trying traffic violation cases to certify to the Commission the result of any case. private motorcycles. (d) Driving a motor vehicle with delinquent. a fine of two hundred pesos and suspension of driver's license for a period of three months for the first conviction. in violation of Section seven. (h) Violations of Sections forty-nine. his address. and fines. and the offense of which he was convicted or acquitted. Said certificate shall specifically contain the name of the driver or owner of the vehicle involved. (l) For violation of any provisions of this Act or regulations promulgated pursuant hereto. (n) If. at the discretion of the Court. the provisions of any city charter to the contrary notwithstanding: . fifty pesos fine. (m) In the event an offender cannot pay any fine imposed pursuant to the provisions of this Act. and an increase of one hundred pesos in the fine and one month's suspension of the registration for each subsequent conviction. the motor vehicle operator at fault shall. number plate. a fine of not exceeding three hundred pesos. (b) No taxes or fees other than those prescribed in this Act shall be imposed for the registration or operation or on the ownership of any motor vehicle. toll fees. subsections (a). (e) Driving a motor vehicle without first securing a driver's license. .The collection of all fees. tag or permit or with intent to sell or otherwise dispose of the same to another. (b). subsections (a). Section 57. Allotment of Funds Section 59. Punishment for other offenses. be punished under the provisions of the Revised Penal Code. . badge. (b) and (b-1).(c) Driving a vehicle with a delinquent or invalid driver's license. or intended to be used as or for a legal license. (b). upon conviction. any accident occurs resulting in death or injury of any person. of this Act. badge. Liens. a fine of not less than ten or more than fifty pesos shall be imposed. plate. thirty-five and forty-six a fine not exceeding one hundred pesos: Provided. . (j) For using private passenger automobiles. badge. (f) Driving a motor vehicle while under the influence of liquor or narcotic drug. and (c). the number of his license and/or of the certificate or registration of his vehicle. or without registration or without the proper license plate for the current year. however. and (c). and motor wheel attachments for hire. taxes. there shall be imposed upon the owner of the vehicle a fine of five hundred pesos and the certificate of registration shall be suspended for a period of three months for the first conviction. suspended or invalid registration. a fine not exceeding fifty pesos. Section 58. That in the case of violation of Section 34 (b) the vehicle or vehicles affected may not be allowed to operate unless the requirements provided in this section are complied with. of this Act. (k) For permitting.It is hereby made the duty of clerks of the Court of First Instance. or false or fraudulently represent as valid and in force any driver's license. (i) For making. fifty and fifty-two. and an imprisonment of one year and permanent revocation of the driver's license for the third conviction. Duty of clerks of court. involving violations of any provision of this Act or of other laws and ordinances relating to motor vehicles. using or attempting to make or use a driver's license. certificate or registration. ARTICLE II Collection of Fees. tag or permit issued under this Act which is delinquent or which has been suspended or revoked. or for the exercise of the profession of chauffeur. a fine of not less than two hundred pesos nor more than five hundred pesos. three hundred pesos fine. whether criminal or civil. thirty-four (a). under the provisions of this Act shall be made in accordance with regulations to be prescribed by the Commissioner and approved jointly by the Auditor General.The conviction of any person for any offense under this Act shall not bar his prosecution for any other offense which may have been committed by such person concurrently with the commission of the offense of which he was convicted or in doing the act or series of acts which constituted the offense of which he was convicted. certificate. three hundred pesos fine. or imprisonment of not more than three months. Taxes and Fines. consenting to. a fine of three hundred pesos and six months imprisonment for the second conviction. by any municipal corporation. as the result of negligence or reckless or unreasonable fast driving. not hereinbefore specifically punished. he shall be made to undergo subsidiary imprisonment as provided for in the Revised Penal Code. and the date thereof. certificate. national and local taxes. or both. private trucks. (a) Collection of fees. allowing. tag or permit in imitation or similitude of those issued under this Act. or tolerating the use of a privately-owned motor vehicle for hire in violation of Section seven. (g) Violation of Section thirty-two.

however. which upon demand by the Commissioner of the Land Transportation Commission or any of his deputies executing such warrant. That the amount necessary to maintain and equip the Land Transportation Commission but not to exceed fifteen per cent of the total collections during any one year. the owner of the said vehicle shall surrender same at the time demanded. nor shall any provision of this Act be construed as limiting or abridging the powers conferred upon and exercised by the Public Service Commission with regards to the control and supervision of the operation of such motor vehicles as public service. resolutions. Any owner who fails or refuses to surrender any of such property or vehicle not so surrendered shall be punished by a fine not exceeding the amount of the fees (including penalties and interests. within their respective jurisdiction. Section 60. shall constitute a first lien upon the motor vehicle concerned. Repeal of laws and ordinances. Section 63. except when the attachment or execution is under any judicial process. or parts thereof in conflict with the provisions of this Act are repealed: Provided. as amended. Section 64. however. Approved: June 20. such owner shall punished by a fine of not more than three hundred pesos or an imprisonment not more than six months. in addition to the appropriations provided in the General Appropriations Act. to June thirtieth. city or municipal board or council shall enact or enforce any ordinance or resolution in conflict with the provisions of this Act. for the expense of this Commission for the fiscal year beginning July first. re-registration or delinquent registration of a motor vehicle. together with the costs and interests. however. to June thirtieth. remaining unpaid and all fines imposed upon any vehicle owner. Effectivity. ordinances. Section 61. which shall be apportioned and expended in accordance with the provisions of the "Philippine Highway Act of 1953": Provided. That any savings in the appropriations of the Motor Vehicles Office for the fiscal year beginning July first. executive orders.To carry out effectively the provisions of this Act. city or municipal council or board or other competent authority may enact and collect such reasonable and equitable toll fees for the use of such bridges and ferries. if any) for the collection of which such warrant has been issued. . shall be set aside for the purpose. . . . No provincial board. or prohibiting any deputy or agent of the Commission to enforce this Act within their respective territorial jurisdiction and the provisions of any charter to the contrary notwithstanding. shall not be affected thereby.Any balance of fees for registration. and also for the use of such public roads. as amended. however. the remainder of the Act. nineteen hundred and sixty-three.Monies collected under the provisions of this Act shall be deposited in a special trust account in the National Treasury to constitute the Highway Special Fund.If any provisions of this Act or the application thereof to any person or circumstance is held invalid. Section 65. nineteen hundred and sixty-four. but in none of these cases shall any toll fees be charged or collected until and unless the approved schedule of tolls has been posted legibly in a conspicuous place at such toll station. Appropriation.This Act shall take effect upon its approval. or both. re-registration or delinquent registration of a motor vehicle remaining unpaid. 1964 . the amount of two hundred fifty thousand pesos is hereby appropriated out of the fees collected under this Act. if any. from the time of such surrender. nineteen hundred and sixty-four shall likewise be available for this purpose. Disposal of monies collected. and the application of such provision to other persons or circumstances. nineteen hundred and sixty-five: Provided. with respect to the control by the Public Service Commission of motor vehicles operating as public service. as may be authorized by the President of the Philippines upon recommendation of the Secretary of Public Works and Communications. as may be authorized and approved by the Secretary of Public Works and Communications. The lien upon motor vehicles. . That nothing contained in this Act shall be construed as limiting or superseding any provisions of the Public Service Act. The Commission is hereby vested with authority to issue a warrant of constructive or actual distraint or and levy to any owner of motor vehicle who has any balance of fees for registration. That any provincial board.Provided. regulations. Section 66. ARTICLE III Final Provisions Section 62. .Act Numbered Thirty-nine hundred ninety-two. Separability. In addition. and all laws.

To determine. Powers and Functions of the Land Transportation Franchising and Regulatory Board. prescribe and approve and periodically review and adjust. reasonable fares. President of the Philippines. i. rates and other related charges. Composition of the Board. Supervision and Control Over the Board. as amended. shall exercise administrative supervision and control over the Land Transportation Franchising and Regulatory Board. in all cases in which it has jurisdiction. and in which cases the pertinent provisions of the Rules of Court shall apply. To issue subpoena and subpoena duces tecum and summon witnesses to appear in any proceedings of the Board. 1. He shall assist the Board in the performance of its powers and functions. finance or management both with the same number of years of experience and practice. economically viable capacities and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the Department of Transportation and Communications. 2. e. whether prohibitory or mandatory. AQUINO. suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles. g. He shall have the rank. 1987 CREATING THE LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD WHEREAS. 4. To promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office: Provided. do hereby order: Sec. f and g hereof. e. d. both direct and indirect. the Land Transportation Franchising and Regulatory Board hereinafter referred to as the "Board". quasijudicial powers and functions pursuant to Executive Order No. One (1) member of the Board shall be a member of the Bar and shall have engaged in the practice of law in the Philippines for at least five (5) years. decisions and/or rulings and to impose fines and/or penalties for such violations. another a holder of a degree in civil engineering. CORAZON C. .EXECUTIVE ORDER NO. 202 June 19. revise. Legal Division. The Board shall have the following powers and functions: a. 125. and the other a holder of a degree in economics. the rules of procedure and evidence prevailing in the courts of laws should not be controlling and it is the spirit and intention of said rules that the Board and the Regional Franchising and Regulatory Offices shall use every and all reasonable means to ascertain facts in its case speedily and objectively and without regard to technicalities of law and procedures. 5. There is hereby created in the Department of Transportation and Communications. f. Executive Director and Support Staff of the Board. salary and privileges of a Department Service Chief. Sec. Creation of the Land Transportation Franchising and Regulatory Board. To issue. in accordance with the pertinent provisions of. To prescribe and regulate routes of service. all in the interest of due process. THEREFORE. the Rules of Court. To conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board's rules and regulations. h. I. among others. and to prescribe the appropriate terms and conditions therefor. orders. Management Information Division. Sec. That except with respect to paragraphs d. amend. 3. Sec. To punish for contempt of the Board. Administrative Division and Finance Division. The Secretary of Transportation and Communications. The Board shall have an Executive Director who shall also appointed by the President of the Philippines upon the recommendation of the Secretary of Transportation and Communications. To issue preliminary or permanent injunction. through his duly designated Undersecretary. c. Sec. the Department of Transportation and Communications is vested with. and the penalties prescribed by. salary and privileges of an Assistant Secretary. To review motu proprio the decisions/actions of the Regional Franchising and Regulatory Office herein created. to administer oaths and affirmations. b. The Board shall be supported by the Technical Evaluation Division. all of whom shall be appointed by the President of the Philippines upon recommendation of the Secretary of Transportation and Communications. relative to the operation of public land transportation services provided by motorized vehicles. NOW. The Board shall be composed of a Chairman and two (2) members with the same rank.

Sec. order or resolution of the Board shall be appealable to the Secretary within thirty (30) days from receipt of the decision: Provided. The Regional Franchising and Regulatory Offices shall hear and decide uncontested applications/petitions for routes. To coordinate and cooperate with other government agencies and entities concerned with any aspect involving public land transportation services with the end in view of effecting continuing improvement of such services. That applications/petitions for routes extending their respective territorial jurisdictions shall be heard and decided by the Board. Thereafter. shall sit and render its decisions en banc. orders or resolutions of the Regional Franchising and Regulatory Offices shall be appealable to the Board within thirty (30) days from receipt of the decision. The decision. Sec. order.j. That the Secretary may motu proprio review any decision or action of the Board before the same becomes final. Creation of Regional Franchising and Regulatory Offices. reasonable fees and other related charges for services rendered. comfort and convenience to persons and property in their charges as well as the safety of persons and property within their areas of operations. and m. Appeals therefrom and/or Review thereof. Every such decision. 10. Sec. l. To fix. within their respective administrative regions: Provided. There shall be a Regional Franchising and Regulatory Office in each of the administrative regions of the country which shall be headed by a Board Regional Manager having the rank. the approved budget of the Board shall be included in the General Appropriations Act. equipment facilities and operating procedures and techniques as may promote safety. this 19th day of June. nineteen hundred and eighty-seven. 8. k. in the year of Our Lord. Appeals. This Executive Order shall take effect immediately. administer. . Done in the City of Manila. install and provide in their utilities and in their stations such devices. The Board. and periodically review and adjust. 6. protection. promulgate. Funds needed to carry out the provisions of this Executive Order shall be taken from the funds available in the Department of Transportation and Communications. standards of measurements and/or design. impose and collect. and rules and regulations requiring operators of any public land transportation service to equip. implement and enforce rules and regulations on land transportation public utilities. in the exercise of its powers and functions. Sec. or as may be necessary. To perform such other functions and duties as may be provided by law. Effectivity. Sec. To formulate. 9. The decisions. salary and privileges of a Department Assistant Regional Director. Appropriations. Decision of the Board. or resolution of the Board must bear the concurrence and signature of at least two (2) members thereof. 7. or proper or incidental to the purposes and objectives of this Executive Order.

Executive Director and Support Staff of the Board. (5) Punish for contempt of the Board. in accordance with the pertinent provisions of. Administrative Division and Finance Division. salary and privileges of an Assistant Secretary. Section 17. hereinafter referred to as the “Board”. and (4) The Office of the Assistant Secretary for Air Transportation. – The quasi-judicial powers and functions with respect to land transportation shall be exercised through the Land Transportation and Regulatory Board. to administer oaths and affirmations. (4) Issue preliminary or permanent injunctions. both direct and indirect. to order the search and seizure of all vehicles and documents. 292 INSTITUTING THE “ADMINISTRATIVE CODE OF 1987″ Administrative Code of 1987 TOC Book IV The Executive Branch Title XV TRANSPORTATION AND COMMUNICATIONS Section 9. whether prohibitory or mandatory. Land Transportation Franchising and Regulatory Board. – The Board shall be composed of a Chairman and two (2) members with the rank. Section 18.EXECUTIVE ORDER NO. the Rules of Court. (3) Determine. Management Information Division. He shall have the rank. prescribe. Supervision and Control Over the Board. Composition of the Board. in all cases in which it has jurisdiction and in which cases the pertinent provisions of the Rules of Court shall apply. amend. Powers and Functions of the Land Transportation Franchising and Regulatory Board. Line Offices. all of whom shall be appointed by the President of the Philippines upon recommendation of the Secretary of Transportation and Communications. programs and projects. and. salary and privileges of a Department Service Chief. finance or management both with the same number of years of experience and practice. (3) The Office of the Assistant Secretary for Telecommunications. and the pertinent laws on their respective areas of responsibilities. rates and other related charges. through his duly designated Undersecretary. in appropriate cases. CHAPTER 5 REGULATORY BOARD Section 15. and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the Department of Transportation and Communications. approve and periodically review and adjust reasonable fares. (2) Issue. Section 16. The line offices shall each have an Executive Director who shall assist the respective Assistant Secretary in the implementation and enforcement of the policies. suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles. and prescribe the appropriate terms and conditions therefor. and the penalties prescribed by. – The Board shall: (1) Prescribe and regulate routes. relative to the operation of public land transportation services provided by motorized vehicles. upon probable cause and as may be necessary for the proper disposition of the cases before it. He shall assist the Board in the performance of its powers and functions. . revise. – The Board shall have an Executive Director who shall also be appointed by the President of the Philippines upon the recommendation of the Secretary of Transportation and Communications. Legal Division. another a holder of a degree in civil engineering. (6) Issue subpoena and subpoena duces tecum and to summon witnesses to appear in any proceedings of the Board. and the other a holder of a degree in economics. – The Department shall have the following line offices: (1) The Office of the Assistant Secretary for Land Transportation. The Board shall be supported by the Technical Evaluation Division. shall exercise administrative supervision and control over the Land Transportation Franchising and Regulatory Board. economically viable capacities. Section 19. (2) The Office of the Assistant Secretary for Postal Services. One (1) member of the Board shall be a member of the Bar and shall have been engaged in the practice of law in the Philippines for at least five (5) years. – The Secretary of Transportation and Communications.

. The Board and the Regional Franchising and Regulatory Offices shall use every and all reasonable means to ascertain facts in each case speedily and objectively and without regard to technicalities of law and procedures. or resolution of the Board must bear the concurrence and signature of at least two (2) members thereof. (8) Review motu propio the decisions/actions of the Regional Franchising and Regulatory Offices. Section 20. facilities and operating procedures and techniques as may promote safety. protection. within their respective administrative regions but that applications/petitions for routes extending beyond their respective territorial jurisdiction shall be heard and decided by the Board. standards of measurements or design. orders or resolutions of the Regional Franchising and Regulatory Offices shall be appealable to the Board within thirty (30) days from receipt of the decision. Appeals therefrom or Review Thereof. and 7 hereof. Section 21. Every such decision. reasonable fees and other related charges for services rendered. implement and enforce rules and regulations on land transportation public utilities. (10) Fix. comfort and convenience to persons and property in their charges as well as the safety of persons and property within their areas of operation. promulgate. shall sit and render its decision en banc. all in the interest of due process. decisions or rulings and to impose fines or penalties for such violations. (11) Formulate. – The Board. and (13) Perform such other functions and duties as may be provided by law. (9) Promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office. order or resolution of the Board shall be appealable to the Secretary within thirty (30) days from receipt of the decision. or proper or incidental to the purposes and objectives of the Department. – The decisions. The Regional Franchising and Regulatory Offices shall hear and decide uncontested applications/petitions for routes. Decisions of the Board. except with respect to paragraphs 4. order. 5.(7) Conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board’s rules and regulations. Section 22. equipment. impose and collect. install and provide in their utilities and in their stations such devices. (12) Coordinate and cooperate with other government agencies and entities concerned with any aspect involving public land transportation services with the end in view of effecting continuing improvement of such services. 6. administer. The decision. the Secretary may motu propio review and decision or action of the Board before the same becomes final. salary and privileges of a Department Assistant Regional Director. orders. – There shall be a Regional Franchising and Regulatory Office in each of the administrative regions of the country which shall be headed by a Regional Director having the rank. or as may be necessary. and periodically review and adjust. Appeals. and rules and regulations requiring operators of any public land transportation service to equip. However. Regional Franchising and Regulatory Offices. However. the rules of procedure and evidence prevailing in the courts of law should not be controlling but rather the spirit and intention of said rules. in the exercise of its powers and functions.

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