v 06

ORDERNO.
PSB ADMINISTRATIVE
Series of 2005

S U B J E C T : P H I L I P P I N ES H I P P E R S ,B U R E A U ( P S B ) _ R E V I S E D R U L E S O N
FREIGHTFORWARDING

R U L EI
c E N E R A LP R I N C I P L EA
SN D O B J E C T I V E SD;E F I N I T I O N
OF TERMS

and Obiectives.
SEC. 1. GeneralPrinciples

WHEREAS, it is the declared policy of the State to facilitateand assist the

developmentand growth of the Philippinetrade and the national economy by
enhancingthe legitimateinterestsof the Philippine
shippers;

WHEREAS, RA No. 7844 - The Export DevelopmentAct, Section 3(f), provides

among others,that urgentattentionmust be given to policiesaffectinginfrastructurein
order to ensurethe adequatesupplyand qualityof transportation (e.9. shippingand
cargo handling)to supportthe flow of goodsand servicesin the contextof the national
exportdrive;

WHEREAS, ExecutiveOrder No. 913 and its implementingrules and regulations

under MinistryOrder No. 69 strengthenthe rule makingand adjudicatingpowersof
the Secretaryof Trade and Industryby providingthe proceduresunderwhich juridical
personand DTI initiatedcomplaintmay be availedof;

WHEREAS,ExecutiveOrder No. 514 providesfor the registrationand accreditationof

non-vesseloperatingcommon carriers,freight fonryarders,
cargo consolidatorsand
breakbulkagentsin accordancewith existingagreementsand chargereasonablefees
thereof;

WHEREAS, PSB AdministrativeOrder No. 2, Series of 1996 requires adopting

appropriatemeasuresto promoteand developthe Philippinetrade and commerce
throughthe economicaland efficientcarriageof merchandise;

NOW, THEREFORE,the followingrulesand regulations are herebyprovidedfor the

guidanceand compliance
information, of all concerned:

In pursuanceof these policiesand principles,

the PSB shall maintainand operatea
reasonable accreditationand regulation system for the covered firms, with the
followingobjectives:

a. Lay down the minimumstandardsand requirementsunder which coveredfirms

may legallydo business;

b. Upgrade the quality of services,capabilities,resourcesand expertiseof the

covered firms in order that they may meet the demands of the Philippines'new
globaltradeand upsurgingdomestictrade;and

c. Curtail acts and practicesinimicalto the fast growth of the freight fonruarding

q-*^-
industryand prejudicial
to the interestsof Philippine
shippers.
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SEc.2. Definition
tA - Thefollowing
termsshallbeo"to asfollows:

a. Accreditation- a legal recognitionconferredby the PhilippineShippers'Bureau-

Departmentof Trade and Industry(PSB-DTI)upon an entity authorizingit to
engagein seafreightforwardingbusiness.

b. Certificateof Accreditation- a documentissued by PSB officiallyauthorizingthe

entity named therein to engage in the specific seafreightfonvardingfunctions
and/orcategory/iesit can operate.

c. Non-VesselOperatinqCommon Carrier (NVOCC)- an entity,without owning or

operatinga vessel, providinga point to point servicewhich may include several
modes of transportand/or undertakesgroupageof Less ContainerLoad (LCL)
shipmentsand issuinga corresponding transportdocument.

d. InternationalFreiqhtForwarder- a local entity that acts as a cargo intermediary

and facilitatestransportof goodson behalfof its clientwithoutassumingthe role of
a carrier. lt can also performother forwardingservices,such as booking cargo
space, negotiating freight rates, preparing documents, advancing freight
payments,providingpacking/crating, trucking and warehousing,engaging as an
agent/representative of a foreign NVOCC/cargoconsolidatornamed in a Master
Bill of Lading as consignee of a consolidatedshipment, and other related
undertakings.

e. DomesticFreiohtForwarder- an entity that facilitatesand providesthe transport

of cargo and distributionof goodswithinthe Philippineson behalfof its client.

t. Shipper- the personwhose name appearsin the Bill of Ladingor other transport
documentas the partycontractingwith the carrierfor the carriageof goods by sea,
such as the exporter, importer, cargo owner, freight fonvarder, and cargo
consolidator.

g. Consiqnee- the person whose name appears in the Bill of Lading or other
transportdocumentas the party to whom the goods are to be deliveredby the
carrier.

h . PSB - the Philippine

Shippers'Bureau.

Directorof PSB - includesthe Officer-in-Charge

of PSB.

J . RAD - Registrationand AccreditationOivision-ofPSB.

k . Person- a naturalpersonor juridicalperson.

t. This Order- this PSB Administrative

Order.

m . Workingdays - workingdays of PSB.

n . SubsistinqCertificateof Accreditation- one that is existingand has not expired,

not cancelled,not under suspension,not automatically/deemed
revoked,and not
acquiredby way of transfer/alienation/inheritance.

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R U L EI I
REQUIREMENTS
FIRMS;DOCUMENTARY
COVERED FORACCREDITATION

SEC3. Coveredfirms - The five (5) categoriesnamely:Non-VesselOperating

CommonCarrier(NVOCC),CargoConsolidator (CC),International FreightFonryarder
(lFF),Breakbulk Agent (BBA)and DomesticFreightForwarder (DFF) are hereby
simplifiedinto three (3) namely:Non-VesselOperatingCommonCarrier(NVOCC),
InternationalFreightForwarder(lFF)andDomestic FreightFonvarder (DFF)whichare
definedabove. Non-Vessel Operating
Common Carrierincludes the functionsof a
Cargo Consolidator; FreightForwarderincludesthe functionsof a
International
Breakbulk Agent. Thesethree(3) categories are referredto as "coveredfirms"under
this Order;hencethey mustbe accredited firstbeforetheycan legallyengagein the
saidfunctionsand/oroperations.

SEC4. Documentary requirements - The applicantshallfilewiththe

for accreditation.
PSB a writtenapplicationunderoath, in the prescribedform (in one copy only),
togetherwitha clearcopyof eachof thefollowing
documents:

ANDPARTNERSHIPS:
A. FORCORPORATIONS

profiledocuments,
1. Company namely:

A photocopyof the SEC Certificateof Incorporation

and the Articlesof
and
Incorporation/PartnershipBy-Laws.

The categorybeingappliedfor by the applicant mustbe specifically providedin

the Primary Purposeportion of its Articlesof Incorporation/Partnership.
However,if the application is for NVOCCcategoryand there is no specific
provisionin applicants'Articlesof incorporation/Partnership allowingit to
engagein NVOCCoperations, the applicantshallbe requiredto filewithSEC
an amendment for that purpose.Uponsubmission to SECof the application
for amendment,an accreditation shall be grantedby PSB subjectto the
conditionthat withinninety(90) daysfrom the issuanceof the Certificate of
Accreditation,a copy of the duly approved Amended Articles of
Incorporation/Partnershipshallbe submittedby theapplicantto PSB.

2. AuditedFinancialStatement(latestIncomeStatement& BalanceSheetwith
supporting whichmustshowa minimum
schedules), paid-upcapitalas certified
by the Securities
and ExchangeCommission (SEC)according to the category
as follows:
Cateqorv M inimumPaid- up
CapitalRequirement

a . NVOCC P 4,000,000.00
b . InternationalFreightFonararder 2,000,000.00
c. DomesticFreightFonruarder 250.000.00

When the applicantis just a divisionof a companycomposedof two or more

divisions,it shallsubmit,in additionto the financialstatementsapplicable
to the
entire company,a statementof income and expensesapplicableonly to its
freightforwarding
operations
as a separateProfitCenter.

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an auditedpre-operating
For newlyorganizedcompanies, balancesheet is
required.

The applicant'snet.equityshall be equal to or greaterthan the above-

prescribedminimumpaid-upcapitalfor each category,and the amountshall
not be impairedby the operatinglosses,the long{erm liabilities,or other
operatingaspectsaffectingthe net equityof the firm upon applicationfor
accreditation.

3. Copy of latest Mayor'sPermit,BIR Certificateof Registrationand SSS

of Membership.
Certificate

Resolution,
4 . Boardor Partnership thecompany
as thecasemaybe,authorizing
to apply for accreditationwith the PSB and identification
of key officers
authorizedto sign,follow-up certificate.
andreceivetheaccreditation

5 . List of CorporateOfficersand Key OperatingPersonnelwith corresponding

bio-dataand passportsizepicturesof its keyofficers.

Any one (1) of the key operatingofficersmust haveat leastthree (3) years
and/orrelatedactivities,
experiencein shipping,freightfonruarding, and must
or proofof employment
submita certification frompreviousemployers.

o. abroad and/or domesticagents with their

List of agents/principals/offices
respectivecompanyprofile,anda copyof the existingcontractand/oragency
agreement.The applicant is givensixty(60) days in whichto submitsaid
requirement.

of own House/Forurarder's
7 . For NVOCC,originalblankspecimen Billof Lading
and Principal/AgentHouse/ForwardersBill of Lading.The applicantis given
sixty (60) days in which to submit at least one (1) originalcopy of
Billof Lading.
House/Forwarders
Principal/Agent

coverage,namely,a photocopy
8 . Proofsof cargoinsurance eachof the policy
andthe officialreceiptshowingpaymentof the premium.

The type of cargo insurancerequiredfor accreditation underthis Order is

eitherthe Merchandise in Transit(Floater)Insurance whichshallcoverTruck
Risks Plus Robberyand Hijacking(StandardCoverage)plus losses and
damagesdue to loadingand unloading and lossesand damageswhilstthe
vehicleis on stop overnightat an allowedterritory;or any standardglobal
comprehensive cargo liabilityinsurancefor freightfonvardersand transport
operatorscoveringdestinations betweenthe Philippinesandworldwide.

Entitieswith globalcomprehensivecargoliabititycoveragemust show proof

is authorized
that its domesticinsurancerepresentative to processclaimson
behalfof its principal
insurer.

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 The minimumamountof insurance
coverage
shallbe as follows:
Cateqory Minimum Amountof
lnsurance Coveraqe

a. NVOCC P 1,000,000.00
FreightFonvarder
b. International 500,000.00
c. DomesticFreightForwarder 250.000.00

9. lnventoryof OfficeEquipment and,if any,a list of transportequipment

and/or
photocopies with
of contracts trucking For
company/s. vehiclesownedby the
applicant,a photocopyeach of the vehicleregistration papersshallalso be
submitted.

10.Locationand Mapof Office.

11.In the prescribed form,(1) an authority to verifyand inspectthe applicant's

office/s,warehouse/s, equipment, and documents/records; and to verifyfrom
whateversources,evenafterthe Certificate of Accreditation
has beenissued,
the veracityof the entries/statements in the application
form and supporting
documents as well as the genuineness of the said documents; and (2) an
authorityto conductthe visitorialactivitiesmentionedin Sections33 and 34
hereoffor the life-spanof the Certificate
of Accreditation.

12.ForNVOCC,a copyof thefreighttariffandtransshipment

fees.

13.PSBdulyprescribed
itemizedservicecharges.

B . F ORS OL EP R O P R I E T O R S H I P S :

1. A photocopy
of the subsisting of Business
Certificate NameRegistration.

2. AuditedFinancialStatement(latestlncomeStatement& BalanceSheetwith
supportingschedules). For newly organizedcompanies, an auditedpre-
operatingbalancesheetis required.The capitalization
mustbe equivalentto
the minimumpaid-upcapitaland net equityrequirementstatedin Subsection
(A) (2)of thisSection.

3. Proofsof financialresources:
a. Copyof BankCertificate reflecting the minimumamountof capitalization
required.
b. Proofof TangibleAssetsand submission of undertaking
in the PSB-
prescribed its FairMarketValuewhichshouldbe equalto
format,indicating
or greaterthanthe requiredminimum capitalization.

4. LatestIncomeTax Returnfor two (2) preceding

years.

5. Proprietor's
Authorization
identifying
the keyofficersauthorized
to sign,follow-
up and receivethe accreditation
certificate.

6. List of Key OperatingOfficers,which includesthe Owner,Chief Operating

Officer,OperationsManageror equivalent and corresponding
bio-datawith
passportsizepictures.
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 Any one (1) of the key operatingofficersmust haveat leastthree (3) years
experiencein shipping,freightfonvarding,and/orrelatedactivities,
and must
submita certification
or proof
of employment from previousemployers.

The followingitems of Subsection(A) of this Sectionshall be applicableto Sole

Proprietorships:

Item3 - re - Mayor'sPermit,BIRandSSSRegistrations
Item6 - re - agents/principals/offices
abroadandlordomestic agents;contracts
ItemT-re-B/Lspecimen
ItemS-re-insurance
Item9 - re - officeequipmenVcontracts/vehicle papers
registration
Item10- re - location map
Item11 - re - authorityto verifyandinspect;authority
to conductvisitorial
activities
Item12 - re - freighttariff
Item13 - re - localserviiecharges

the above,the PSBmay requirethe submission

Notwithstanding of otherdocuments
as maybe necessaryin theevaluation
of the application.

SEC5. Additionalcateqories. - lf the applicant

is applying,
on a singleoccasion, for
morethanone category,his maincategoryshallbe chargedthe filingand processing
fee of P5,000.00for Non-VesselOperatingCommon Carrier, P4,000.00for
FreightForwarderor P3,000.00for DomesticFreightForwarder,and
International
everyadditionalcategoryshallbe chargeda filingand processing fee of P1,500.00
only. The sameruleshallbe appliedwhena firmwhichhas alreadyan accredited
categorylateron appliesfor additionalcategory/s.Providedhowever,that the life-
span of the Certificatesof Accreditation for the additionalcategoriesshall be
coterminouswiththat of the main/firstaccreditedcategory,
and consequentlyall shall
be renewedsimultaneously and considered as one renewalapplicationentitling
the
applicantto pay only a singlefilingand processing fee (includingsurchargeif
applicable).

SEC6. Branchofficesmustbe accredited. - Everybranchof the coveredfirmsmust

be accreditedfirst beforesaid branchcan legallyengagein business. For this
purpose,
the applicant underoath,in the prescribed
shallfile an application form (in
one copy only),togetherwith a clear copy of each of the followingdocumentary
requirements:

a. Information regarding
the branchoffice;
b. Bio-dataand recentpassport-size lD pictureof the BranchManager(BM)-
The BM shouldmeet the experiencerequirements for OperationsManageras
providedin Section4 hereof;
c. LatestMayor'sPermit;
A Insurancepolicycoverage :
o Territoriallimits- shouldincludea clausespecifying the coverageof branch
office'sareaof operations
e . Visitorial/l
nspection Authority
f. Tariffand localservicechargesEx-Portnearestto the branchoffice'sarea of
operations; and
g. Otherdocuments as may be necessary in the evaluation
of the application,
when
requiredby the PSB. / \ t

6
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 RULEIII
OF
PROCESSING APPLICATION FORACCREDITATION
(oRlGINAL
OR RENEWAL)

SEC.7. Whenapplication is deemedfiled.- The application (original

for accreditation
or renewal)shallbe deemedfileduponsubmission of all documentary requirements
and paymentof the filingandprocessing fee andsurcharge (if applicable).

SEC.8. Actionon the application.- Withinfifteen(15)workingdaysfromthe datethe

is deemedfiled,the RADshall:(1)verify,inspectand evaluatethe office/s,
application
warehouse/s, equipment,and pertinentdocumentsof the applicant;and (2)
recommend to the Directorof PSB the approvalor denialof the application,
as the
case may be. The latter,in his discretion,may referthe application
to the RMC for
comment.

SEC. 9. Automaticaccreditation. - The applicationshall be processed(including

approvalor denial)withina periodof twenty-one (21)workingdaysreckonedfromthe
dateit is deemedfiled. Aftersaidperiodif no actionhasbeentakenon the application
or the processing thereofhas not beencompleted, the applicationshallbe deemed
approvedand the applicantshall be entitled to the issuance and releaseof a
Certificate uponpaymentof the Accreditation
of Accreditation Fee.
Certificate

SEC. 10. Suspension of the runningof the 21-working d?y period.- Duringthe
processing of the application, question/s
clarificatory may be posedby PSB to the
applicantwhichmustbe answeredin writingwithinfive(5) daysfromreceiptof notice
thereof,or PSBmay requirethe submission of additional
document/s necessary in the
evaluation of the application,
which must be submitted by the applicant
withinfive (5)
daysfromreceiptof noticethereof.The runningof the 21-working dayperiodshallbe
deemedsuspended when said question/s are thus posedor when said additional
document/sare required. The suspension shallbeginfrom the date said noticeis
actuallyreceivedby the applicantand shallstopfromthe date PSBactuallyreceives
the writtenanswer/sor document/s from the applicant.For non-compliance of rules
and documentaryrequirements, the entity'sapplicationfor accreditationshall be
disapproved,

SEC.11. Ocularinspection. - The inspection

mentioned in Section8 hereofshallbe
conducted by a dulyauthorized Team. lt shallbe conducted
Inspection in the manner
providedin Section33 and 34 hereof.An Inspection (in
Report the prescribedform)
shall be submittedto the PSB Directorwithin twenty-four(24) hours after the
inspection.

RULEIV
RENEWAL
OF THEACCREDITATION

SEC. 12. Renewalperiod:renewalapplicationsclassified.- Renewalapplicationsare

herebyclassifiedas follows:

1. Reqularapplication- if filed at any time on or beforethe expirydate of the

Accreditation.

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: ' ' '.i ,'

2. Lut uoot,on,
a) From one (1) to fifteen(15) days afterthe expirydate.
b) From sixteen(16) to thirty(30) days afterthe expirydate.
c) From thirty-one(31) to forty-five(a5) days afterthe expirydate.
d) From forty-six(46) days afterthe expirydate and onwards.

In case the processingtime of a regularapplicationreachesor goes beyondthe expiry

date of the Certificatebeing renewed,the Certificatebeing renewedshall be deemed
existingduring the said processingtime and up to the date of releaseof the renewal
certificateor date of actualreceiptby the applicantof the writtennoticeof denialof his
application, as the case may be. This is in orderto avoida hiatusand disruptionof
privatebusiness(per Section18, Book Vll of the Administrative Code of 1987). And in
case of approvalof this type of application,the effectivityof the renewal Certificate
shall retroactto the expirydate of the Certificatebeingrenewed.

The firm whose applicationfor renewalis filed from the day after the expiry date to
onwards shall be delistedfrom the list of PSB AccreditedFreight Forurardersuntil
upon a renewal and Certificateis issued to the applicant. lf said applicationis
approved,the effectivityof the renewalCertificateshall be based on the date it was
approvedby the Directorof the Bureau.

SEC. 13. Processinqof the renewalapplication- The renewalapplicationshall be

subject to the standardsand documentaryrequirementsprovidedin Rule ll hereof,
and shallundergothe processingprocedureprovidedin Rulelll hereof.

R U L EV
CERTIFICATEOF ACCREDITATION

SEC. 14. Certificate when issuedand released.- When the applicant

of Accreditation.
meets all the standards and requirementsfor accreditation,and has paid the
prescribedfiling and processingfee (includingsurchargeif applicable),the Directorof
PSB shall approvethe applicationand issuethe Certificate.

The Certificateshall be signed by the Directorof PSB, sealedwith the seal of PSB,
and shall state:

a. The name of the accreditedfirm, statingwhetherit is the main/sole/branch

office,and statingits address;

b. The specificfreight fonruarding

operationsit is authorizedby the PSB to
engagein;

c. Thedateof issue;

rl The life span of the Certificate,and the exact inceptiondate (date the
andtheexactexpirydate;
shallslartto be effective)
Certificate

thatit is non-transferable
e . Thestatement andcannotbe usedby another;

A 14- 8
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 f. The statementthatthe originalcopyof the Certificate
mustbe displayedin
a conspicuousplacein the accredited
firm'smain/sole/branchoffice,as the
case may be;

g. The Certificate
Number;

h. The numberand date of the of the OfficialReceiptof the Accreditation

CertificateFee;and

i. Otherpertinent
dataas maybe required
by the PSB.

shallbe releasedto the applicantuponpaymentof

The originalcopyof the Certificate
CertificateFee. A photocopy thereofshall be kept by PSB for
the Accreditation
recordpurposes.
- TheCertificate
SEC.15.Lifespanof the Certificate. of Accreditation
shallhavea life-
spanof two (2)yearsunlesssoonercancelled underRuleXl hereof.lts life-spanmay
alsobe cut shortwhenit is automatically/deemed
revoked.

SEC. 16. Nontransferabilitv - The Certificate

of the Certificate. of Accreditation
is
issuedonlyaftercarefully the technical,
evaluating andotherqualifications
financial, of
the applicantyis-a-yisthe standardsherein. Hence,the granteeof said Certificate
shallnot transferor alienatein whatevermanner,nor authorizeanotherto use,said
Certificate.Neithercanthe Certificate
be inherited.
- the originalcopyof the subsisting
SEC.17. Displayof the Certificate. Certificate
of
shall be displayedin a conspicuousplace in the accreditedfirm's
Accreditation
office,as the casemaybe.
main/sole/branch

However,when the originalcopy is lost or destroyed,the granteeshall file an

applicationunderoathfor the issuanceof a substitutecertifiedcopyof the Certificate.
Saidsubstitutecopyshallbe displayedas providedin thisSection.

SEC.18. Riqhtof accredited firms.- Firmswithsubsisting Certificate

of Accreditation
shallhavethe rightto statein theiradvertisements throughthe printmedia,television,
radio,brochures,posters,and the like and in its letters,contracts,bills of lading,
signboards,
receipts, stickersor signsin theirvehiclestheterm-
''ACCREDITEDBY PSB, CERTIFICATE
OF ACCREDITATION
NO.
(state
EXPIRING expirvdate)"

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 . ,RULEVI
SCHEDULEOF FEESPAYABLE

Fees.- Thefollowing
SEC.19.Accreditation feesshallbe paidto PSB:

A. FORTHEMAIN/SOLE
OFFICE:

for accreditation:
1. Oriqinalapplication

Fee
a. Filingand Processing NVOCC P 5,000.00
IFF 4,000.00
DFF 3,000.00
Fee
Certificate
b. Accreditation 200.00

2. Renewalapplication
for accreditation:

Cateqorv Filinqand Surcharqe:

Processinq
Fee:
Regularapplication NVOCC P 5,000.00 P 0.00
IFF 4,000.00
DFF 3,000.00
Late application
a) lf filed from one (1) to NVOCC P 5,000.00 2,000.00
fifteen(15) days after IFF 4,000.00
theexpirydate. DFF 3,000.00
b) lf filed from sixteen NVOCC P 5,000.00 4,000.00
(16)to thirty(30)days IFF 4,000.00
afterthe expirydate. DFF 3,000.00
c) lf filed from thirty-one NVOCC P 5,000.00 8,000.00
(31) to forty-five(45) IFF 4.000.00
days after the expiry DFF 3,000.00
date.
d) lf filed from forty-six NVOCC P 5,000.00 12,000.00
(46) days after the IFF 4,000.00
expiry date and DFF 3,000.00
onwards.
Accreditation Certificate 200.00
Fee (Whetherregularor
lateapplication)

OFFICE:
B. FORTHEBRANCH

1. Filingand Processing Fee- shallbe 25%of the Filingand Processing

Feestatedin (A) (1) or (A) (2) above,as the casemaybe, plus25o/o
ot
the correspondingsurcharge if applicable.

2. Accreditation Fee
Certificate P200.00 / n \ r

(Whetheroriginalor renewal-
regularor lateapplication)
(ut^
e^F^'ft ro
tr'u
 a. For the issuanceof a substitutecertifiedcopyof a lost P 200.00
or destroyedCertificateof Accreditation
b. Forthe issuance of a PSBlD 200.00
c. Forthe issuance PSBlD (incaseof loss
of a substitute 200.00
or destruction)
d" For the issuanceof a Certificationthat a certainfirm 200.00
hasor hasno pending casewithPSB
e. Forthe issuance of anyotherCertification 200.00

of monevpaid!y mistake.
SEC.21. Creditinq - Moneypaidto PSBby mistake, such
as paymentin excess,shall be creditedto payor'saccountfor future financial
to PSB.
obligations

R U L EV I I
OBLIGATIONS
CERTAIN FIRMS
OF ACCREDITED

SEC.22. Manifestof Consolidated Shipments. - Accreditedfirmsshallsubmitto PSB

photocopies
of all inwardand outwardmanifestscoveringconsolidated shipments,
whenrequiredby PSB in protecting
the interestsof shippers
and consignees.

- Everychangein the Listof BoardDirectors

SEC.23. Changein the Listof Directors.
shallbe reportedin writingto PSBwithinfifteen(15)daysfrom the datethe change
occurred(e.9.,death)or wasdecidedor approved.

SEC.24. Chanqeof Operations Manager or ChiefOperatinqOfficeror equivalent

or
BranchManaqer. - The termination
resignation, of services,or appointmentof the
accreditedfirm's OperationsManageror Chief OperatingOfficeror equivalentor
BranchManagershallbe reportedin writingto PSBwithinfifteen(15)daysfrom the
was made.
datethe resignation/termination/appointment

SEC. 25. Changeof overseasofficers/agents/kev personnel.- Every changeof

personnel
officers/agents/key abroadshallbe reportedin writingto PSBwithinthirty
was made.
(30)daysfromthe datethe resignation/termination/appointment

firms.- In addition
of accredited
SEC.26. Otherobliqations to the obligations
stated
aboveand elsewherein this Order,everyaccreditedfirm shall have the following
obligations:

a. To renewwithoutdelayits cargoinsurancecoverage,and submitto PSB

the proofsof saidrenewalSubsection A(8)of Section4 hereofis applicable
withinthirty(30)daysfromreceiptof the renewalpolicy.

b. To submitto PSBa quarterlycargostatisticsreportwithinthirty(30)days

afterthe lapseof the quartercoveredby the report.

c. To submitto PSBannualfinancialstatements withinthirty(30)days after

the requiredfilingdate set by the Bureauof InternalRevenue(BlR)for
tax returns
corporate/individual
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 d. To submit to PSB a copy of the Amended Articles of
(if any)withinthirty(30)daysfrom the date the
lncorporation/Partnership
firmreceivedfromSECthesaiddocument.

e. To report in writingto PSB the changeof addressof the Office or

warehouseof the firm,withinfive (5) daysfromthe datethe changewas
made.

R U L EV I I I
S U N D R YP R O V I S I O N S

SEC. 27. Reqister:MonthlyList.- (a) the PSB shallestablish,maintainand operatea

Registerof accreditedfirms.

(b) PSB shall also issue monthlyan updatedlist of accreditedfirms containingthe

followingdata:

1. The namesof saidfirms:

2. The expirydate of their respectiveCertificateof Accreditation;

and

3, Other pertinentdata as may be requiredby PSB.

(c) PSB shall furnishwith copiesof said list the Bureauof Customsand government
and privateentitiesneedingcopiesthereof.

(d) Firmsnot includedin the said listof whichhave been delistedtherefromshallnot

be allowed by the Bureau of Customs, Philippine Ports Authority, and other
governmentagenciesto transactbusinesswith them.

(e) lt shall be the duty of delistedfirmsto surrendertheir PSB lDs to PSB withinfive
(5) days from receiptof noticeof delisting.

SEC. 28. PSB ldentificationCards. - PSB shall issue ldentificationCards to official

representativesof the accreditedfirm who are authorizedto transactbusinessin its
behalf. For this purpose,the accreditedfirm shallfile an applicationunderoath (in the
prescribedform) stating the name, positionin the firm, and other pertinentdata as
may be requiredby the PSB, togetherwith photo copies of recordsprovingthat the
said representativeis reallyan employeeof the accreditedfirm (e.9., SSS remittance
records), and bio-data and two (2) recent passport-size lD pictures of said
representative, and pay the PSB lD Fee providedin Section20 (b) hereof.

A maximum of three (3) lDs shall be issued for every category. The lD shall
state/contain:

a. The name,positionin the firm, signature,

and pictureof the personto
whomthe lD is issued:

b. The nameandaddressof the accredited

firmhe is representing;

c. The lD number:
R*V
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 d. rn" andexpirydates;
"*uteption
e. The signaturesof the Directorof PSB and RMC membersfrom the
government;
and

f. Otherpertinent
dataas maybe requiredby the PSB.

The life-spanof the PSBlD shallbe coterminous withthe life-span of the Certificate
of
Accreditation.Thus,the cancellation, suspension, expiration, or automatic/deemed
revocation of Accreditation
of the Certificate shallresultin the automaticcancellation,
suspension,expiration,or revocationof the PSBlD.

SEC. 29. lnitialinoof applications and documents.- When an application for

for the issuanceof a PSBlD, or any otherapplication
or an application
accreditation,
is filedwithPSB,theverypersonsigning shallalsoinitialeverypageof
theapplication
the application(exceptthe page where his signatureis) and every page of all
supporting documents,on the lowermarginof saidapplicationanddocuments.

SEC.30. Bio-data. - PSBshallprescribethe formof the bio-datafor BoardDirectors,

principalofficers(includingthe OperationsManageror Chief OperatingOfficeror
equivalent),SoleProprietors,BranchManagers, and authorizedrepresentativesto be
issuedPSB lDs. Everypersonmentioned in this Sectionmustdisclosein the sworn
bio-dataall of his presentresidentialaddresses in the Philippinesas well as the
namesof the province of whichhe is a native,andanyconviction
andmunicipality in a
caseinvolving
criminal dishonesty(e.9.esfafa)andanypending criminalcaseagainst
himinvolving dishonesty.

SEC. 31. Automaticrevocationof Certificate.- The Certificateof Accreditationis

automatically of the partnersin a
revokedin case of a changein the relationship
partnershipwhichmaterially the courseof businessor resultsin the actual
interrupts
of the partnership.
dissolution

SEC.32. Transfer/change of ownershio - Whenthe ownership

of g soleproprietorship.
of an accreditedfirm,whichis a soleproprietorship,
is transferredor changed,the new
ownermustapplyfor the transferin his nameof the Certificate of Accreditationand
submitrequirements whichare necessaryfor the adjustment of the recordsof the
accreditedfirmon filewith PSB. Saidapplication mustbe filedwithinthirty(30)days
fromthe datethe transfer/change of ownershiptook effect,otherurisethe Certificateof
Accreditation shall be deemedrevokedprovidedthat the new owner is given the
opportunityto showcausewhy it shouldnotbe deemedrevoked.

RULEIX
VISITORIAL
POWER

SEC.33. Purposesand extentof visitorialpower.- In orderthat PSB can effectively

enforceand checkcompliance withthisOrderand the circulars and orderswhichmay
be issuedunderthis Order,it may exercise,througha duly authorizedlnspection
Teamits inherentand necessaryvisitorialpowerto enter,whenevernecessary, any
establishment, office,and premises
whichis beingusedby a coveredfirm,accredited
or not, as its office,warehouse, garage,or for any o'f its businessoperations,
and
conductthereinoneor moreof thefollowino visitorial
activities:

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a. Requireil or"r"ntationof and inspect o"?"nt booksof account,
. "nu
paper,drawing,sketch,contract,
record,document, andthe like;

b. Inspectany pertinent vehicle,furniture,

facility,equipment, andthe like;

c. Inspectanypertinent
work/activity thereat;
beingundertaken

dli[""?5:l'"""1:1""ilffi
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:ii:ff"::ffi ":J,'ll,:,H:Tfi""il:;:i
in paragraph
e. Securephotocopiesof thethingsmentioned (a)above;and

anypersonwhomaybe foundat the premises

f. Interview entered.

SEC. 34. Mannerof conductinqvisitorialactivities.- The lnspectionTeam duly

to conductanyof thevisitorial
authorized activities
mentionedin the preceding
Section
shallconductthe samein thefollowing
manner:

a . Before entering the property, the InspectionTeam shall exhibit their

MissionOrder and Office lDs to the owner, or person who has charge of
said propertyat the time entranceis to be made, or to the lawfuloccupant
thereof. The InspectionTeam shall ascertainthe danger areas in that
place (e.9., high voltagearea, no smokingarea, dangerousequipment
area, toxic area,etc.)for their safety.

b . The visitorialactivitiesshall be conductedin the presenceof the owner, or

personwho has chargeof said propertyat the time entranceis to be made,
or lawfuloccupantthereof,or their respectiveauthorizedrepresentative.

The visitorialactivitiesshall be conductedat the reasonablehours,with

promptness,in a professional manner,and withoutundue disturbanceto
any legitimateworl</activity
beingundertakenthereat.

r{ A receipt shall be issued for photo copies of the things mentioned in

paragraph(a) of Section33 hereofwhich are taken by the Team.

e . After conductingthe visitorialactivities,the witness to said conduct shall

sign a certificateas to the manner the visitorialactivitieswere conducted.
Said certificate,in the prescribedform, shall contain a space where the
witnesscan write brieflyhis complaints,if any, regardingthe mannerthe
visitorialactivitieswere conducted(e.9., irregularities,discourtesy,things
damaged,and things taken for personalpurposes), Said certificateshall
state/contain:a brief descriptionof the premises,its address, name of
witness and whether he is owner, occupant,etc., the date the visitorial
activitieswere conductedand the precise time of entrance and egress.
The Team Leader shall also sign it. A copy of the certificateshall be
furnishedsaid witness.

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 RULEX
PSBFUNCTIONS

SEC. 35. Functionsrelativeto accreditation.- PSB may performthe following

functions, andas far as PSBresources
to the extentnecessary mayallow:

a. To conductstudieson the Sea FreightForuuarding Industryto determine

or
verifythe state of the Industry;its resources,problems,and prospects;
numberof peopledependenton it for livelihood; extent of foreign
participation
in the capitaland management; governmental assistance
needed;the practices, acts,methods,schemes,arrangements, and modus
operandi used in the Industry; and the lndustry's desires and
recommendations;and recommend to DTI the taking of
promotional/developmental/remedial/facilitation
measures for the Industry.

b. To preparethe draftpolicies,
measures, Memoranda
of Agreement,letters,
Orders,ExecutiveOrders,and Congressional
Administrative Bills which
may be necessaryto effectuateits recommendations mentionedin the
precedingparagraph, or whichmay be neededby PSB to carry out the
declaredin Sectiont hereof.
objectives

and promulgate
c. To prescribe andOrders.
Circulars

withthisAdministrative
d. To enforceand monitorcompliance Order,and the
andotherOrdersissuedby PSB.
Circulars

e. To enforcethe prescribedCode of Conductand EthicalStandardsfor

for thecoveredfirms.
FreightFonruarders

f. To performsuch otherfunctionsas maybeauthorizedby law, rulesand

regulations,
Circulars
and/orOrders.

SEC.36. Meansof securing dataandevidence. - The dataand evidence whichmay

be necessaryin the performanceof the functionslistedin the preceding
Sectionmay
be securedby PSBthroughoneor moreof thefollowing three(3) means:

a. Voluntary
means:

1. Consultative
meetings;
and/or

2. Written/verbal
requests.

b. Through theconductof fact-finding

investigation,
hearing,
andinquiry.The
official/s
authorized
by the Directorof PSBto conductsameshallhavethe
power:

1. To administer
oathsandaffirmations:

2. To issue subpoenaand subpoenaduces tecum to compel the

attendance of witnessand the givingof testimony,
and the production
of the relevantand necessarydata,records,documents, papersand
the like; and
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3. To take data,testimony,and evidence.

to PSB periodically
c. Requirethe submission of any pertinent
or otherwise,
paperandthe like.
report,data,document,

The personsor firmswhoare coveredby thesethree(3) meansare thefollowing:

a. Voluntarvmeans:anypersonor firm,privateor governmental.

b. Personswho can be subpoenaed: any person,privateor governmental,

who mayhaveknowledge or be in possessionof dataor evidencepertinent
into.
heard,or inquired
to the matterbeinginvestigated,

c. Personswho can be requiredto submitreports.data,etc.: Any covered

or not.
firm,accredited

R U L EX I
ADMINISTRATIVEADJUDICATION OF
O F F E N S E SU N D E RT H I SO R D E R

SEC. 37. GoverninqSystem.- The followingoffensesshall be subjectto the existing

DTI Administrative SystemprovidedunderE.O. No. 913, Seriesof 1983
Adjudication
and DTI MinistryOrder No.69, Series of 1983 as amended,and to the special
adjudicationrules providedin Sections41 to 47 hereof,without prejudiceto criminal
and civil actions:

a. Unlawfulacts and omissions,listedin Section38 hereof;

b. Unlawfulacts and omissionsrelativeto the visitorialpower,listedin Section

39 hereof:

c. Unlawful acts and omissionsrelativeto the gatheringof data/evidence,

listedin Section40 hereof:and

d. Otherviolationsof this Orderwhich are not specificallyincludedin Sections

38, 39 and 40.

SEC 38. Unlawfulacts and omissions.- The followingacts and omissionsare unlawful
underthis Order:

a. Engagingin or transactingbusinessby a firm, operatingeitheras a main,

sole,or branchoffice,withoutprioraccreditation.

by a firm that it has a subsistingaccreditation.

b. Misrepresentation

c. Using a subsisting accreditationby another with authority from an

accreditedfirm.

d. Failureto displaythe valid and originalcopy of Certificateof Accreditation

as requiredby Section17 hereof.
- hr

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e. Transactiltfbusinessthroughan accredited
l
firmYrepresentative
without
the requiredPSBl.D.as providedin Section28 hereof.

mentioned
to complywithany of the obligations
f. Refusal/Failure in RuleVll
hereof,or the submission under said Rule of report/s,
document/s or
paper/swhicharefalse,or whichcontainfalse/misleading
data.

g. Misrepresentationby the applicant,of any materialfact in obtainingthe

or anyothercertification/s
accreditation, or documents.

h. Transferringor authorizing firm to another,in whatever

of an accredited
manner,its accreditation.

i. Refusalor failureof an accreditedfirm to complywith lawful orders/

issuances
administrative and/orcircularsof PSB.

j, Violationby coveredfirmof the Codeof Conductand EthicalStandards

for
FreightForwardersmentioned in Section35 (e)hereof.

k. Overcharging.

andchargingof feesnot prescribed

l. Collecting by PSB.

m. Failureto delivercargoas requiredin the transport

document.

n. Failureto delivercargoto its rightfulowner.

o. Failureto complywithits contractual to the shipper.

obligation

p. Grantof Rebates,

q. Delinquent
freightforwarders.

SEC. 39. Unlawfulacts and omissionsrelativeto the visitorialpower.- lt shall be

unlawfulfor any person,eventhoughhe is not a BoardDirector,officer,employee,
or not)-
owner,or agentof the coveredfirm(accredited

a. to refuse/prevenVobstruct/harass/delay the entrance, presentation,

inspection,takingof pictures/video
recordings, makingof sketches,taking
of copies;mentioned 33 (a),(b),(c),(d),and(e)hereof;or
in Section

the interviewof himself or of

b. to refuse/prevent/obstruct/harass/delay
anotherperson;mentioned
in Section33 (f) hereof;or

c. to refuse/prevent/obstrucVharass/delaythe signing,by himselfor another

person,of the certificateas to the mannerthe visitorialactivitieswere
conducted;mentioned in Section3a (e) hereof.

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SEC. 40..UnlaMul aV anO omissionsrelativeto the qatherl?i0of data/evidence.- lt

-
shallbe unlawful

a. for any personto whom a subpoenaor subpoenaducestecumhas been

issued,to refuse/failto complywith the subpoenaor subpoenaduces
tecumissuedby the authorized officialof PSB;or to refuseto be swornto
or to refuseto answerpertinent
priorto givingof testimony; questions;or to
give false or misleadingtestimony;or to produce records,documents,
papersand the likewhichare false,or whichcontainfalse/misleading data
on a materialrespect;mentioned in Section36 (b)hereof;or

b. for any coveredfirm to refuse/fail

to submiton time,the requiredreport,
data,document,paperor the like;or to submita report,data,document,
paperor the like whichis false/incomplete/blurred,
or whichcontainsa
data on a materialrespect;rnentioned
false/misleading in Section36 (c)
hereof.

SEC.41. Scheduleof Sanctions/Penalties. - the following

containsa listingof the
various offenses mentionedin Section 38 hereof with their corresponding
s a n c ti o n s/p e n a lta s nfro mE.O.913and M inistrOr
ti eke y derNo.69. SaidSchedu l e
may be usedby PSBwhenconducting the MediationStageof an administrative
case,
and by the DTI Officeof LegalAffairs (OLA) when conductingthe Hearingand
DecisionStageof the administrative case:

Violation
a. Engaging in or transacting
business by a firm,
operatingeither as a main,
sole, or branch office,
withoutprioraccreditation.
Penalty/Sanction:
lssuance of cease and desist order for the non-
continuanceof operationand a monetarv fine of
Php50,000.00

by a firm
b. Misrepresentation
that it has a subsistinq
accreditation.

c. Using a subsisting
accreditation by another
with authority from an
accreditedfirm.

Violation Penaltv/Sanction:
FirstOffense SecondOffense Third Offense
d. Failureto display the valid Stern warning Fine of Php Revocation of
and original copy of from PSB and 1 , 0 0 0 . 0 0 accreditation
Certificate of Accreditation violator's certificate
as required by Section 17 submissionof a
hereof. written
voluntary
e. Transacting business assurance of
throughan accreditedfirm's compliance or
representativewithout the discontinuance
required PSB LD. as of the violation
provided in Section 28 committed
hereof.

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Refusal/Failureto comply Delay in the

with any of the obligations
mentioned in Rule Vll
hereof. or the submission
under said Rule of report/s,
document/s or paper/s
which are false. or which
contain false/misleading
data.
submissionof a report
not exceeding two (2)
monthsfrom due date
Delay exceeding two
(2) months but not
exceeding four (4)
months

Delay exceeding four

(4) months but not
exceeding six (6)
months

Delay exceeding six

(6) months but not
exceeding eight (8)
months

Delay exceeding eight

(8) months but not
exceeding ten (10)
months

Delay exceeding ten

(10) months but not
exceeding one (1)
year

Delay beyondone (1) P12,000.mat suspersionof

year period PSBaccrediHbn (6)nnnts
forsb<

8. Non-compliance
submission
false/misleading
reports
Violation Penaltv/Sanction:
FirstOffense SecondOffense Third Offense
g. Misrepresentationby the Fine: Fine: Revocation of
applicant, of any material accreditation
lf NVOCC = lf NVOCC =
fact in obtaining the certificate
Php40,000.00 Php200,000.00
accreditation,or any other = lf =
lf IFF IFF
certification/s
or documents.
Php20,000.00 P h p 1 0 0 , 0 0 0 . 0 0
lf DFF = lf DFF =
h. Transferringor authorizing
Php2,500.00 P h p 1 2 , 5 0 0 . 0 0
of an accredited firm to
another, in whatever and submission and suspension
manner.its accreditation. of written of accreditation
voluntary for a minimumof
i. Refusal or failure of an
assurance of 6 months but not
accredited firm to comply
compliance or than
with lawful orders/
discontinuance year
administrative issuances
of the violation
and/orcircularsof PSB.
committed

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Violationby coveredfirm of
the Code of Conduct and
Ethical Standards for
Freight Forwarders
mentionedin Section35 (e)
hereof.
Overcharging.
Collectingand charging of
fees not prescribedby PSB.
Failure to deliver cargo as
required in the transport
document.
Failure to deliver cargo to
its rightfulowner.
Failure to comply with its
contractualobligationto the
shipper.
Grantof Rebates.
Delinquent freight
forwarders.

SEC. 42. Modes of commencinq administrativeadiudicationproceedings. -

Administrativeadjudication proceedingsfor offenses under this Order shall be
commencedeither:

a, by PSB motu propio, by issuing a Formal Charge to and against the

offender;or

b. by any other person,by filingwith the PSB a sworn/verified

Complaint.

SEC. 43. Mediation:threel!) tvpes of decisionrenderable!y the Directorof PSB. - In

either of the two (2) modes above, the PSB shall conducta Mediationof the case.
During the MediationStage, the Directorof PSB may render the followingtypes of
Decision:

Agreementbetweenthe Complainant
a . Decisionbasedon a Compromise
(PSB or any person)and the Respondent.This type of Decisionis
andcannotbe appealed.
executory
immediately

b . Decisionbasedon a Voluntary In thisparticular

Undertaking. situation,
the
Respondent offersa writtenVoluntaryUndertaking to the Directorof PSB.
lf the latterfinds the same to be meritorious,
he may render decision
quotingthereinthe VoluntaryUndertaking, statingthat it is acceptedby
PSBunderSection6 (b) of E.O.913,and statingfurtherthatjudgmentis
renderedin accordance with the terms and conditionsof the Voluntary
Undertaking. Thistypeof decisionis immediately
executory and cannotbe
appealed,

Decisionbasedon admissionby the Respondentof all the allegations

of
the FormalCharge/Complaint.Here,the Directorof PSB shall impose
and reasonable
appropriate providedin E.O.913 and
sanctions/penalties

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 A.
. -fhis
M.O.69. type of decisionshallbe finaluJFs appealedto the DTI
t
Officerwithinten (10)daysfrom receiptof the decision.The
Adjudication
of thisdecisionshallbe as providedin M.O.69 as amended.
execution

SEC.44. Elevation g[ case.- lf Mediationfailsor the Respondent does not admitall

the allegationsin the FormalCharge/Complaint, the PSB shall elevatethe case,
througha Memorandum of Transmittalto OLA for the conductof the secondstage
(HearinganddecisionStagd)of the System.In elevating thecase,thereis no needof
filingwithOLAa Statement of Violation.

SEC.45. Whensummonsnotnecessary. - Whenthe Respondent hasappearedin the

MediationStage,eitherin compliance with the directivein the FormalCharge/Notice
evenwithoutreceiving
of Hearingor voluntarily the FormalCharge/Notice of Hearing,
jurisdiction
overhis personis alreadyacquired, hencethereis no moreneedfor OLA
to sendsummonsto the Respondent whenthe caseis thuselevated.

SEC.46. Probable causerule.- In Section16 of M.O.69, the "probable

cause"rule
shallbe followedin lieuof the "p!jm.A.
faclecase"rule.

SEC. 47. Additionalpowers.- ln additionto the powersalreadyvestedin Bureau

Directorsand MediationOfficersunder M.O. 69, the Directorof PSB and PSB
MediationOfficersshallhavethe powerprovidedin Section59 (re- contempt)
of M.O.
69 and the powersto administeroathsand affirmations and issuesubpoenaand
subpoenaducestecum.

RULEXII
TRANSITORY RMC;
PROVISIONS;
SECRETARY'S
APPROVAL; NG AND EFFECTIVITY
REPEALI
CLAUSES

SEC.48. Transitory provisions.- (a) All existingCertificates

of Accreditation
and PSB
lDs issuedunderPSBAdministrative OrderNo.2, Seriesof 1996shallcontinueto be
effectiveuntilthey reachtheir respectiveexpirydate. However,they shallhenceforth
be governedby thisOrderas to othermatters.

(b) All applications

for accreditationpendingon the datethis Ordertakeseffectshall
be processedon the basesof the criteria/standards, documentary requirements, and
fees provided under PSB Administrative Order No. 2, Seriesof 1996. But the
processing procedure that shallbe followedis that providedin Rulelll of this Order.
None of said applicantsshall be deemedaccreditedalreadyunderthe "automatic
accreditation"provisionsof PSBAO2.

SEC.49. RMC.- The Registration & Monitoring Committee(RMC)shallcontinueto

exist pendingthe creationby ExecutiveOrder of an advisorycommitteewith a
membership comingfromboththe publicand privatesectors:provided,however,that
the RMC shall henceforthperformonly purelyadvisory/consultative/recommendatory
duties.

SEC.50. Secretarv's approval.- Section36, Book lV of the AdministrativeCodeof

1987requiresthat AdministrativeOrdersof linebureauslike PSBshallbe submitted
to the Secretaryconcernedfor approvalin orderthat saidOrdersshallbe effective.
Withthe Secretaryof Tradeand Industry'sapprovalof thisOrder,it shallbe deemed
/-) ni''f'F 2r
dott r
\ "
I
 \

that the delegationscontainedin Sections41 to 47 of this Order are his

delegations, to M.O.69,
and that said Sections41 to 47 are his amendments
and in viewthereof,thisOrdershallbe publishedin two newspapersof general
circulationin compliancewith Section3 of E.O. 913, and not in just one
newspaper as providedin Section18, BookI of the Adm.Codeof 1987.

SEC.51. Reoealinq clause.- PSBAdministrative OrderNo.2, Seriesof 1996

is herebyrepealed.All otherissuanceof partsthereofwhichare inconsistent
withthisOrderare herebyrepealedor amendedaccordingly.

SEC. 52. Effectivitv. - This Order shall take effectfifteen(15) days after its
publication of generalcirculation
in full in two (2) newspapers whilecompliance
with the capitalization requirementmentionedin Section4(A)(2)shallbe made
withintwo (2) yearsfromthe effectivityof this Order.

Donein Makaticity this zsKD day of NbvEMBrK , 2005.

APPROVED

-,,q,i'|"
PETERB. FAVILA
Secretary,DTI

RECOMMENDI
NGAPPROVAL:

USEC. C. MAGLAYA
, DTI

22