Nar Vol. 19 No. 4

OCTOBER - DECEMBER 2008 NATIONAL ADMINISTRATIVE REGISTER 1905
BANGKO SENTRAL NG PILIPINAS
Date Filed: 10 October 2008
Circular No. 618, s. of 2008
Basic Standards in the Administration of Trust, Other Fiduciary

and Investment Management Accounts
Pursuant to Monetary Board Resolution No. 1007 dated 7 August 2008, the provisions
of Sections X401 and 4401Q of the Manual of Regulations for Banks and the Manual of
Regulations for Non-Bank Financial Institutions, respectively, are hereby amended as fol-
lows:
“Section X401 and 4401Q Statement of Principles. The cardinal principle common
to all trust and other fiduciary relationships is fidelity. Policies predicated upon
this principle are directed towards confidentiality, scrupulous care, safety and
prudent management of property including reasonable probability of income
with proper accounting and appropriate reporting thereon. Practices are designed
IN ACCORDANCE WITH THE BASIC STANDARDS FOR TRUST, OTHER
FIDUCIARY AND INVESTMENT MANAGEMENT ACCOUNTS IN APPENDIX
“A” to promote efficiency in administration and operation; to adhere and conform
TO the terms of the instrument or contract; and to maintain absolute separation
of property free from any intrusion of conflict of interest.”
This Circular shall take effect fifteen (15) days following its publication in the Official
Gazette or in any newspaper of general circulation in the Philippines.
Adopted: 20 Aug. 2008
FOR THE MONETARY BOARD:
(SGD.) AMANDO M. TETANGCO, JR.
Governor
--o0o--
Circular No. 619, s. 2008
20% Final Withholding Tax on Overnight RRP Transactions with BSP
Under Section 22 (Y), Chapter 1 of the National Internal Revenue Code of 1997, the
reverse repurchase agreements (RRPs) entered into by the Bangko Sentral ng Pilipinas
(BSP) with any authorized agent bank are included in the definition of the term “deposit
substitutes”. Pursuant to Monetary Board Resolution No. 1041.A.1 dated 14 August 2008,
the BSP shall withhold the 20% Final Withholding Tax (FWT) on its overnight RRPs start-
ing January 1, 2008, under the following guidelines:
1906 NATIONAL ADMINISTRATIVE REGISTER VOLUME 19/4
1) All overnight RRPs with the BSP shall be subject to the 20% FWT in the same manner
as term RRPs, which tax is deducted on each maturity date and remitted to the Bureau of
Internal Revenue.
2) The total 20% FWT on the overnight RRPs due starting 1 January 2008 until the effective
date of this Circular shall be divided equally in the remaining months of taxable year 2008.
The installments due will be deducted every end of the month from the RDDA of concerned
banks.
3) Concerned banks shall issue the corresponding debit authority to the BSP to cover the
20% FWT on their overnight RRPs with the BSP mentioned in Item 2 above.
This Circular shall take effect immediately. It shall be published in a newspaper of

general circulation.


Governor
--o0o--
Revised Rules and Regulations On Bank Protection
Pursuant to Monetary Board Resolution No. 1057 dated 14 August 2008, the provi-
sions of the Manual of Regulations for Banks (MORB) on bank protection are hereby
amended.
Section 1. The provisions of Section X171 of the MORB and its Subsections are
hereby amended to read as follows:
“Sec. X171 Bank Protection. Each bank shall adopt an adequate security
program commensurate to its operations, taking into consideration its size,
location, number of offices and business operations.
“Subsec. X171.1 Objectives. These regulations are designed to:
a. Promote maximum protection of life and property against crimes (e.g. robbery,
hold-up, theft, etc.) and other destructive causes;
b. Prevent and discourage perpetration of crimes against banks; and
c. Assist law enforcement agencies in the identification, apprehension and

prosecution of the perpetrators of crimes committed against banks.
“Subsec. X171.2 Designation of Security Officer. The board of directors of

each bank or the country head in the case of a foreign bank branch, shall
appoint or designate a qualified security officer who shall hold office under the
direct authority and supervision of the president of the bank or the country head
in the case of a foreign bank branch. Subject to prior BSP approval, banks with
limited security risk exposure due to the nature of their operations such as
single unit foreign bank branch operating in a highly secured environment or
TBs or RBs/CBs with total assets of less than P100 million, may appoint one
of their senior officers as security officer in a concurrent capacity: Provided,
That if the senior officer so appointed does not possess the necessary
qualifications, he shall be supported by a competent consultant/adviser until
such time that he acquires the necessary competency on security matters:
Provided, further, that such appointment shall not result to a conflict of interest
situation.
The security officer must: a) at least be thirty (30) years of age; (b) be a college
graduate; (c) have at least five (5) years of supervisory experience in the field of law en-
forcement and/or security operations; and (d) possess all the qualifications and none of
the disqualifications provided for under Sections X142 and X143.
The security officer shall be responsible for:
a. The development and administration of a security program acceptable to BSP;
b. The conduct of continuing security awareness program among all bank employees to
highlight that security is a common concern;
c. Investigation of bank robberies/hold-ups, recommending the filing of appropriate charges

in court as the evidence may warrant and assisting in the prosecution of the perpetrator(s)
thereof;
d. The establishment of an effective working relationship with the BSP, Philippine National
Police (PNP), and other law enforcement agencies in the prevention of bank crimes and
other natural and man-made hazards; and
e. The conduct of continuing research and studies on new techniques, methods and equip-
ment to enhance bank protection measures.
For purposes of the foregoing, a security management team headed by the security
officer may be constituted if warranted.
“Subsec. X171.3 Security Program. The security program of each bank shall
be in writing, duly approved by its board of directors or the country head in the
case of a foreign bank branch. In addition, the security program shall define
measures and procedures to detect and prevent the commission of bank crimes,
as well as provide contingency plans in case of calamities, terrorist attacks
and other emergency situations. The security program shall include the following:
a. Installation of the prescribed minimum security devices;

b. A schedule for the periodic inspection, testing and servicing of all security devices
installed in each of the bank’s offices, designation of an officer or employee responsible for
ensuring that such devices are inspected, tested, serviced and kept in good working order,
and requiring record of such inspections, testing and servicing;
c. Standard operating procedures for the safekeeping of all currencies, negotiable securi-
ties and similar valuables in vaults or safes;
d. Provision for other security measures and procedures aimed at giving added protection
to the bank, e.g., procedures for the transport of funds and other cash items, and defining
responsibility for their implementation;
e. Provision for the training and periodic re-training of employees in their respective areas
of responsibility under the security program, including the proper use of security devices
and proper employee conduct during and after an emergency situation;
f. Contingency measures for security and rescue operations in emergency situations;
g. Provision for the posting of adequate number of security personnel in all vital and/or
critical areas in the bank’s premises, and the minimum number of hours when each per-
sonnel shall be on duty; and
h. Such other provisions/measures as the president of the bank or country head in the
case of a foreign bank branch may, in consultation with its security officer, deem appropri-
ate.
“Subsec. X171.4 Minimum Security Measures.
a. Guard System. All banking offices shall be manned by an adequate number of security
personnel to be determined by the bank, taking into consideration its size, location, costs
and overall bank protection requirement: Provided, That cash centers shall be manned by
an adequate number of security guards as may be necessary during banking hours. For
this purpose “Cash centers” shall refer to branches which also handle the cash require-
ments of other branches of the same bank.
b. Security Devices. Within one hundred twenty (120) calendar days from the effectivity
of this circular in the case of existing offices and before opening for business in the case of
offices to be opened after the effectivity of this circular, banks shall effect the installation,
operation and maintenance, as individually appropriate, of the following security devices in
each banking office:
1. A time delay device in the cash vault/safe;

2. A lighting system for illuminating the area around the vault, if the vault is
visible from outside the banking office;
3. Tamper-resistant locks on exterior doors and windows;
4. A robbery alarm system or other appropriate device for promptly notifying the
nearest law enforcement office either directly or through an intermediary of an
attempted, ongoing or perpetrated robbery;
5. Anti-burglary or intrusion system capable of detecting promptly an attack on
the outer doors, walls, floor or ceiling of the bank premises, including the vault(s);
and
6. Such other devices like the closed circuit television (CCTV) and video recording
system appropriate to deter the commission of bank crimes and assist in the
identification and apprehension of the culprit/s: Provided, That the bank security
officer shall consider, among other things, the following:
i. The incidence of crimes against the particular banking office and other
business establishments in the area where the banking office is located;
ii. The amount of currency or other valuables exposed to robbery and other
man-made hazards;
iii. The distance of the banking office from the nearest law enforcement
office and the time ordinarily required for law-enforcement officers to arrive at
the banking office;
iv. The cost of the security devices;
v. Other existing security measures in effect at the banking office; and
vi. The physical characteristics of the banking office structure and its
surroundings.
Each bank shall install, operate and maintain security devices which are expected to
give a general level of bank protection equivalent, at least, to the standards prescribed
under this Circular.
c. Vaults and Safes. Vault walls, ceilings and floors, shall be made of steel-reinforced
concrete or such other equally safe materials/specifications. Vault doors shall be made of
steel or other drill and torch resistant material, equipped with a dual combination lock and
time-delay device, and provided with inner and outer grill doors: Provided, That all vaults
constructed after the effectivity of this Circular shall be equipped with a breathing/ventila-
tion device and emergency button capable of giving audible and visible signal in case of
accidental lock-up.
A vault record book shall be maintained to record all activities relative to the opening
and closing of the vault.
Safes should be sufficiently heavy or be securely anchored to the premises where

located. The door shall be equipped with a combination lock with a time-delay device if
used for safekeeping cash and other valuables. The body shall consist of steel with an
ultimate tensile strength of 50,000 pounds per square inch or the equivalent in metric
system.
Safe and vault combinations must be changed whenever the custodian is terminated
or transferred to another place of assignment. A record of the names of the holder of the
keys and combinations shall be maintained for each lock, safe, vault and compartment.
Changing of combinations shall be documented to pinpoint responsibility and to ensure
confidentiality and proper observance of this requirement.
d. Security of the Premises. For emergency purposes and where applicable, each
banking office shall be provided with a back door with steel or grill door which shall be used
as an alternative exit door for evacuation in case of fire, flood, bomb threats, wind damage,
explosion, civil disturbance, earthquake, or other emergency.
Steel grills, where applicable, shall support exterior glass doors and windows of all
banking offices for protection against any forcible entry. Access to the back door shall be
limited to authorized bank personnel. Opening and closing thereof before and after banking
hours shall be recorded in a registry.
Firearms and other deadly weapons shall not be allowed inside bank premises except
when so authorized by the bank. A signage for this purpose shall be conspicuously placed
near the main entrance door of the bank. Specific guidelines as to when to allow firearms
and other deadly weapons inside bank premises should be incorporated in the security
program.
A bank shall maintain within its premises a record of the addresses and telephone
numbers of the nearest law enforcement agencies, hospitals, rescue agencies and fire
departments.
The security officer of each bank shall conduct, at least annually, a security survey of
bank premises and make available the inspection report to BSP examiners during the
regular examination.
The bank shall conduct fire, earthquake and bomb threat drill at least once a year.
e.Automated Teller Machine (ATM) - ATM sites shall be provided with adequate secu-
rity. Where there are no security personnel assigned to secure the ATM, an anti-tampering
device shall be installed or the ATM and its immediate surroundings shall be regularly
inspected to promptly detect any attempt to rob or destroy the same.
f. Armored Car Operation - To ensure the protection of crew members and valuables, all
armored vehicles shall be built with bullet-resistant materials capable of withstanding the
firepower of high-powered firearms, e.g., M16 and M14 rifles. Moreover, armored vehicles
shall be equipped with a vault or safe or a partition wall with a combination lock designed
to prevent retrieval of the cargo while in transit. When in use the armored vehicles shall be
provided with at least two (2) armed guards and its operations must be supervised by at
least two (2) officers of the bank .
All canvass bags that contain cash and other items of value shall be provided with
padlocks for security and control purposes. Armored cars shall not be operated as mobile
bank.
“Subsec. X171.5 Reports. Banks shall conduct a review and self-assessment

of their security program to ensure their compliance with prescribed security
requirements. Any substantive amendment thereto shall be approved by the
bank’s board of directors or country head in the case of branches of foreign
banks. The self-assessment of compliance with prescribed security requirements
together with the updated security program (if amended during the year) shall
be submitted annually to the appropriate department of the Supervision and
Examination Sector on or before 30 January of the following year in accordance
with the format shown in Appendix 10. The self-assessment together with the
updated security program shall be considered category A-2 reports.
“Subsec. X171.6 Bangko Sentral ng Pilipinas Inspection. During regular

examination, the BSP reserves the right to perform a compliance assessment
of the adequacy of a bank’s security arrangements. The BSP, with approval of
the Governor, may also conduct at any time a targetted inspection of the bank’s
implementation of its security program to determine compliance with regulations.
For this purpose the BSP may avail of the services of experts as resource
persons.
“Subsec. X171.7 Common Security Service Provision. A bank, with prior BSP
approval, may share the services of a security officer or a security management
team with its related financial institutions.
“Subsec. X171.8 Sanctions. Any violation of the provisions of this Section, as

well as non-compliance with the minimum standards set forth or any directive
of the Monetary Board issued pursuant to Section X171 hereof, shall be subject
to the administrative sanctions provided under Section 37 of R.A. No. 7653 and
may, depending on the materiality or seriousness of the violation, constitute a
ground for considering the same as an unsafe and unsound banking practice.”
Section 2. Repealing Clause. CB Circular No. 566 dated 27 April 1977, as amended
by BSP Circular No. 91 dated 4 October 1995 and Memorandum Circular for All Banks
dated 27 April 1977 and all other Circulars, rules and regulations contrary to or inconsistent
with the provisions of this Circular are hereby repealed, amended and/or modified
accordingly.
Section 3. Effectivity. This Circular shall take effect fifteen (15) days following its
publication either in the Official Gazette or in a newspaper of general circulation.
Adopted: 3 Sept. 2008


Governor
--o0o--
Amendment of Subsection X169.3 of the Manual of Regulations

for Banks - Outsourcing of Other Banking Functions
Pursuant to Monetary Board Resolution No. 936 dated 24 July 2008, the Manual
of Regulations for Banks (MORB) is hereby amended, as follows:
Subsection X169.3 Outsourcing of other banking functions of the MORB is

hereby amended to read, as follows:
“Without need of prior Monetary Board approval, banks may outsource the
following functions, services or activities:
18. Automated Teller Machine (ATM) Card Plastics Embossing Service,

subject to the following conditions:
a. Only the ATM card number and the name of the depositor are printed/indicated
on the plastic card and stored in the magstripe; and
b. Account/transaction validation is done at the Host level, i.e., the bank’s

computer, as the card number stored in the magstripe is linked to the deposit
account number residing at the same host computer.
19. such other activities as maybe determined by the Monetary Board.”
This Circular shall take effect fifteen (15) days after publication in the Official Gazette
or in a newspaper of general circulation.

Governor
--o0o--
Amendment to the Manual of Regulations for Banks (MORB)

and the Manual of Regulations for Non-Bank Financial Institutions
(MORNBFI), as amended by Circular No. 549 dated 9 October 2006
Pursuant to Monetary Board Resolution No. 1087 dated 21 August 2008, the provi-
sions of Section X304, its subsections and Appendix 18 of the Manual of Regulations for
Banks (MORB), and Sections 4312Q, 4312S, 4312N and their subsections, and Appendix
Q-10 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), as
amended by Circular No. 549 dated 9 October 2006, are hereby further amended as fol-
lows:
Section 1. Subsection X304.1 of the MORB and Subsections 4312Q.1 and 4312N.1 of
the MORNBFI, as amended by Circular No. 549 dated 9 October 2006, on the general
guidelines for the grant by banks, quasi-banks (QBs) and other non-bank financial institu-
tions (NBFIs) of loans and other credit accommodations, are hereby further amended to
read as follows:
“§ X304.1/4312Q.1/4312N.1 General Guidelines. Consistent with safe and

sound banking/business practices, a bank/QB/NBFI shall grant loans or other
credit accommodations only in amounts and for the periods of time essential
for the effective completion of the operation to be financed.
“Before granting loans or other credit accommodations, a bank/QB/NBFI must

ascertain that the borrower, co-maker, endorser, surety and/or guarantor, if
applicable, is/are financially capable of fulfilling his/their commitments to the
bank/QB/NBFI. For this purpose, a bank/QB/NBFI shall obtain adequate
information on his/their credit standing and financial capacities.
“In addition to the usual information sheet about the borrower, a bank/QB/NBFI
shall require from the credit applicant the following:
1. A copy of the latest Income Tax Return (ITR) of the borrower and his co-maker, if appli-
cable, duly stamped as received by the Bureau of Internal Revenue (BIR);
2. Except as otherwise provided by law and in other regulations, if the borrower is engaged
in business, a copy of the borrower’s latest financial statements as submitted for taxation
purposes to the BIR; and
3. A waiver of confidentiality of client information and/or an authority of the bank/QB/NBFI

to conduct random verification with the BIR in order to establish authenticity of the ITR and
accompanying financial statements submitted by the client.
“THE DOCUMENTS UNDER ITEM NOS. “1” AND “2” ABOVE shall be required
to be submitted annually for as long as the loan and/or credit accommodation
is outstanding. The consistency of the data/figures in said ITRs and FINANCIAL
statements shall also be checked and considered in the evaluation of the
financial capacity and creditworthiness of credit applicants. THE WAIVER OF
CONFIDENTIALITY OF CLIENT INFORMATION AND/OR AN AUTHORITY OF
THE BANK/QB/NBFI TO CONDUCT RANDOM VERIFICATION WITH THE BIR
NEED NOT BE SUBMITTED ANNUALLY SINCE ONCE SUBMITTED THESE
DOCUMENTS REMAIN VALID UNLESS REVOKED.
“Should the document(s) submitted prove to be spurious or incorrect in any

material detail, the bank/QB/NBFI may terminate any loan or other credit
accommodation granted on the basis of said document(s) and shall have the
right to demand immediate repayment or liquidation of the obligation. Moreover,
the bank/QB/NBFI may seek redress from the court for any harm done by the
borrower’s submission of spurious documents.
“The required submission of additional documents shall cover loans, other credit
accommodations, and credit lines granted, renewed restructured or extended
after 2 November 2006, including any availment and/or re-availment against
existing credit lines, except:
1. Microfinance loans. This represents small loans granted to the basic sectors such as
farmer-peasant, artisanal fisherfolk, workers in the formal and informal sector, migrant
workers, indigenous peoples and cultural communities, women, differently-abled persons,

senior citizens, victims of calamities and disasters, youth and students, children, and
urban poor, as defined in the Social Reform and Poverty Alleviation Act of 1997 (R.A. No.
8425), and other loans granted to poor and low-income households for their microenterprises
and small businesses. The maximum principal amount of microfinance loans shall not
exceed P150,000 and may be amortized on a daily, weekly, semi-monthly or monthly
basis, depending on the cash flow conditions of the borrowers. Said loans are usually
unsecured, for relatively short periods of time (180 days) and often featuring joint and
several guarantees of one or more persons;
2. Loans to registered Barangay Micro Business Enterprises (BMBEs);
3. Interbank loans;
4. Loans secured by hold-outs on or assignment of deposits or other assets considered

non-risk by the Monetary Board;
5. Loans to individuals who are not required to file ITRs under BIR regulations, as follows:
a. Individuals whose gross compensation income does not exceed their total
personal and additional exemptions, or whose compensation income derived
from one employer does not exceed P60,000 and the income tax on which has
been correctly withheld;
b. Those whose income has been subjected to final withholding tax;
c. Senior citizens not required to file a return pursuant to R.A. No. 7432, as
amended by R.A. No. 9257, in relation to the provisions of the National Internal
Revenue Code (NIRC) or the Tax Reform Act of 1997; and
d. An individual who is exempt from income tax pursuant to the provisions of
the NIRC and other laws, general or special; and
6. Loans to borrowers, whose only source of income is compensation and the correspond-
ing taxes on which have been withheld at source: PROVIDED, THAT THE BORROWERS
submitted, in lieu of the ITR, a copy of their employer’s Certificate of Compensation Pay-
ment/Tax Withheld (BIR Form 2316) OR THEIR PAYSLIPS FOR AT LEAST THREE (3)
MONTHS IMMEDIATELY PRECEDING THE DATE OF LOAN APPLICATION.
“Loans to micro and small enterprises which are not specifically exempted
from the additional documentary requirements SPECIFIED UNDER THE THIRD
PARAGRAPH OF THIS SUBSECTION SHALL BE EXEMPTED FROM SAID
ADDITIONAL DOCUMENTARY REQUIREMENT UP TO 31 DECEMBER 2011.
“Consumer loans, with original amounts not exceeding P2 million, are exempted
from updating requirements or the required annual submission of the same
requirements forwarded during the initial submission under this Subsection but
not in their restructuring, renewal, or extensions or availment/re-availment against
existing credit lines: PROVIDED, That these loans are supported by ITRs OR
BY BIR Form 2316 OR PAYSLIPS FOR AT LEAST THREE (3) MONTHS
IMMEDIATELY PRECEDING THE DATE OF LOAN APPLICATION, AND
FINANCIAL STATEMENTS SUBMITTED FOR TAXATION PURPOSES TO THE
BIR, AS MAY BE APPLICABLE, at the time the loans were granted, renewed,
restructured, or extended.
“For purposes of this Section, the FOLLOWING DEFINITIONS SHALL APPLY:
1. Micro and small enterprises shall be defined as any business activity or enterprise
engaged in industry, agribusiness and/or services whether single proprietorship, coopera-
tive, partnership or corporation whose total assets, inclusive of those arising from loans
but exclusive of the land on which the particular business entity’s office, plant and equip-
ment are situated, must have a value of up to P3 million and P15 million, respectively, or as
may be defined by the SMED Council or other competent government agency.
2. Consumer loans is defined to include housing loans, loans for purchase of car, house-
hold appliance(s), furniture and fixtures, loans for payment of educational and hospital
bills, salary loans and loans for personal consumption, including credit card loans.”
Section 2. The provisions of Subsections X304.2 and X304.3 of the MORB requiring
that loan proceeds be used for the purpose for which loans and other credit accommoda-
tions were obtained, and prohibiting banks from requiring that loan proceeds be used to
acquire shares of stocks of the lending bank, respectively, are hereby made applicable to
QBs and other NBFIs, and accordingly incorporated as Subsections 4312Q.2 and 4312Q.3,
and 4312N.2 and 4312N.3 of the MORNBFI, respectively.
Section 3. The provisions of Subsection X304.4 of the MORB and Subsections 4312Q.4
and 4312N.4 of the MORNBFI on the required signatories to loan agreements, are hereby
amended to read as follows:
“§ X304.4/4312Q.4/4312N.4 Signatories. Banks/QBs/NBFIs shall require that

loans and other credit accommodations be made under the signature of the
principal borrower, and in the case of unsecured loans and other credit
accommodations to an individual borrower, at least one (1) co-maker, except
when the principal borrower has the financial capacity and a good track record
of paying his obligations.”
Section 4. The provisions of Section X319 of the MORB and Section 4336Q of the
MORNBFI on the guidelines for the grant of unsecured loans or loans against personal
security are hereby amended, and are also made applicable to NBFIs and incorporated as
Section 4314N of the MORNBFI, to read as follows:
“Sec. X319/4336Q/4314N Loans Against Personal Security. THE GRANT,

RENEWAL, RESTRUCTURING OR EXTENSION OF UNSECURED LOANS
SHALL, IN ADDITION TO THE REQUIREMENTS OF SECTION X304/4312Q/
4312N, BE MADE UNDER THE SIGNATURE OF THE PRINCIPAL BORROWER
AND, EXCEPT WHEN THE PRINCIPAL BORROWER HAS THE FINANCIAL
CAPACITY AND A GOOD TRACK RECORD OF PAYING HIS OBLIGATIONS,
AT LEAST ONE (1) CO-MAKER.”
Section 5. The following subsections of the MORB and MORNBFI are hereby deleted:
1.X319.1(General guidelines)
2. X319.2 (Proof of financial capacity)
3. X319.3 (Signatories)
4. 4336Q.1 (General guidelines)
5. 4336Q.2 (Proof of financial capacity)
6. 4336Q.3 (Signatories)
7. 4336Q.4 (Sanctions)
Section 6. Non-stock savings and loan associations (NSSLAs) are hereby excluded
from the coverage of Circular No. 472, as amended by Circular No. 549 and this amenda-
tory Circular. Consequently, Section 4312S of the MORNBFI and its Subsections are
hereby deleted.
Section 7. Item “I.B.1.d” of the Guidelines in Identifying and Monitoring Problem Loans
and Other Risk Assets and Setting-up of Allowance for Probable Losses under Appendix
18 and Appendix Q-10 of the MORB and MORNBFI, respectively, are hereby amended to
read as follows:
“B. Classified loans. These are loans which possess the characteristics outlined
hereunder. Classified loans are subdivided into (1) loans especially mentioned;
(2) substandard; (3) doubtful; and (4) loss.
“1. Loans especially mentioned. These are loans that have potential weaknesses
that deserve management’s close attention. These potential weaknesses, if
left uncorrected, may affect the repayment of the loan and thus increase credit
risk to the bank/QB. Their basic characteristics are as follows:
xxx
d. Loans NOT SUPPORTED BY THE DOCUMENTS REQUIRED UNDER

SUBSECS. X304.1/4312Q.1 except –
(1) Consumer loans, with original amounts not exceeding P2 million: Provided,
That these loans are current, and are supported by latest ITR or BY BIR Form
2316 OR PAYSLIPS FOR AT LEAST THREE (3) MONTHS IMMEDIATELY
PRECEDING THE DATE OF LOAN APPLICATION, AND FINANCIAL
STATEMENTS SUBMITTED FOR TAXATION PURPOSES TO THE BIR, AS
MAY BE APPLICABLE, at the time they were granted, renewed, restructured
or extended. For this purpose, consumer loans is defined to include housing
loans, loans for purchase of car, household appliance(s), furniture and fixtures,
loans for payment of educational and hospital bills, salary loans and loans for
personal consumption, including credit card loans.
x x x”
Governor
--o0o--
Memorandum No. M-2008-030
Accreditation Process of ATM Consortium as Compliance

with Outsourcing and Electronic Banking Requirements
The Monetary Board, in its Resolution No. 31, dated 10 January 2008, approved the
following guidelines relative to the requirements of Subsections X169.2 and Section X621
of the Manual of Regulations for Banks (MORB) on outsourcing of ATM and electronic
banking (e-banking) services, respectively.
1. Automated Teller Machine (ATM) Interconnection Services
The extension of a bank’s information technology systems or processes to a third
party, such as the connection of its ATM switch to BancNet and/or Megalink or any other
ATM consortium 1 or an Affiliate Switch Network 2 is considered an outsourcing activity that
requires prior BSP approval pursuant to Subsection X169.2 of the MORB.
However, no prior BSP approval shall be required for a bank connected or seeking to
connect with BancNet and/or Megalink or with an ASN of either ATM consortium, provided
that it passed/es the BSP-approved accreditation process of either BancNet or Megalink.
2. Internet and Mobile Banking Services
A bank that intends to outsource its internet and/or mobile banking services to BancNet
and/or Megalink shall no longer require prior MB approval, provided that the applicant bank
had passed the BSP-approved accreditation process for membership of BancNet and/or
Megalink, which requires, among others, a “no objection” notice from the Central Point of
Contact (CPC) in the Supervision and Examination Sector of BSP.
1
An ATM consortium is an entity that operates and maintains an ATM switch network
connecting member institutions.
2
An “Affiliate Switch Network” (ASN) is an aggregator/service provider that connects its
ATM switch with BancNet and/or Megalink and extends that connection to its subscribers
and/or members. ASNs has to pass the accreditation requirements of BancNet and
Megalink which includes service level standards, BSP access, and minimum paid-up
capital of P300 million. ASNs already interconnected with Bancnet and/or Megalink are
required to comply with the minimum paid-up capital on staggered basis of P100 million by
31 December 2008; P200 million by 31 December 2009; and P300 million by 31 December
2010.
Banks which intend to provide electronic banking services via other arrangements or
service providers will still have to comply with the existing regulations on outsourcing and
e-banking, as required under Subsec. X169.2 and Sec. X621 of the MORB on outsourcing
and e-banking services, respectively.
To ensure that the process remains effective and adaptive to the changing environment,
the accreditation process of BancNet and Megalink for availment of the ATM interconnection,
internet and mobile banking services shall be subject to periodic BSP review and
examination.
This Memorandum amends Memorandum Nos. M-2007-010 and M-2007-033 dated

07May 2007 and 8 November 2007, respectively, in so far as inconsistent provisions/
guidelines are concerned.
For your guidance
(SGD.) NESTOR A. ESPENILLA, JR.
Deputy Governor
--o0o--
Date Filed: 10 November 2008
Memorandum No. M-2008-031
Guidelines on the Availment of US Dollar Denominated

Repurchase Agreement Facility with the BSP
Pursuant to BSP Circular No. 627 dated 23 October 2008 respectively, amending the
regulations on the general guidelines governing the US dollar denominated repurchase
agreement of banks with the BSP (USD R/P), the following terms and conditions shall be
observed in the availment of the facility:
A. Eligible Borrowers
- RBUs or FCDU/EFCDUs of banks with FCDU/EFCDU authority who can
demonstrate legitimate funding needs can avail of this facility.
- Continuing eligibility is contingent on compliance with the qualifying purposes
and continuing conditions specified in sections B and G below.
B. Qualifying Purposes
- Proceeds from the borrowings shall be used for legitimate liquidity
requirements of FCDU/EFCDU or RBU for local operations as follows:
- Compliance with FCDU/EFCDU cover requirements;

- Servicing of withdrawals of FCDU/EFCDU; and
- Servicing trade-related requirements.
- Borrowing shall be for the account of the applicant bank and shall not be
used to fund liquidity requirements of foreign head office, foreign branches,
affiliates, or subsidiaries
C. Acceptable Collateral
- Eligible securities shall cover US Dollar-denominated evidences of
indebtedness issued directly by the Government of the Philippines (ROP Bonds)
held by the applicant bank as of 30 September 2008. These can be lodged in
FCDU/EFCDU’s or RBU’s Available-for-Sale (AFS), Held-for-Trading (HFT) and
Held-to-Maturity (HTM) portfolios.
- Remaining maturity of the collateral must not exceed 10 years from value
date of the repurchase agreement. The BSP, however, may accept ROP bonds
with remaining maturity exceeding 10 years in exceptional circumstances, as
may be determined by the Treasury Department, and concurred by the Governor.
ROP Bonds to be pledged have to be transferred/credited to BSP’s designated
securities account before availment of the USD R/P facility.
- The tenor of the underlying security should not be shorter than the overlying
instrument
D. Valuation of Securities
- The haircut on the underlying securities shall be determined by the Treasury

Department, with the concurrence of the Governor. Collateral cover will be
maintained through periodic margin calls as specified in the repurchase
agreement.
- Said valuation will be subject to periodic review and will be modified when
necessary.
E. Available Credit Line
- Credit lines shall be set by the BSP upon evaluation of application documents
and such other information as may be deemed necessary.
F. Rate, Term and Trading Time
- The rates of the US dollar denominated R/P facility shall be set by the
Treasury Department, with the concurrence of the Governor, taking into account
prevailing liquidity/market conditions.
- The term of the US dollar denominated R/P facility shall be set by the Treasury
Department, with the concurrence of the Governor; Provided, that, should a
bank become disqualified for the R/P facility, the outstanding repurchase
agreement shall immediately become due and payable.
- Trading time for the USD R/P transactions shall be set from 10:00 AM to 12
Noon, then from 1:00 PM to 2:00 PM.
G. Continuing Conditions
- Qualified banks should maintain net foreign exchange (FX) overbought or

oversold position of not more than 20% of its unimpaired capital or USD 50
million, whichever is lower, for the duration of the USD repo availment.
· Borrowing banks should not be net USD lenders to the swaps and interbank
markets nor conduits for another bank for the duration of the USD R/P availment.
· Borrowings must be used for the qualifying purposes outlined in Section B

for the duration of the USD R/P availment.
H. Application Requirements
Applicant bank shall submit the following information/documents, and such

other documents as may be deemed necessary, to the Treasury Department,
copy furnished the appropriate Central Point of Contact Department (CPCD) of
the Supervision and Examination Sector (SES), to aid BSP evaluate applications:
- Application for availment of the facility stating therein the amount, requested
term, specific purpose of the borrowing, including disclosure of the specific
collateral, including source, i.e. RBU or FCDU/EFCDU;
- FX position report as of latest month-end and as of two (2) banking days

prior to the date of application;
- Report on Compliance with FCDU/EFCDU Cover Requirements as of latest

month-end and as of two days prior to application date;
- Such other documents or reports supporting bank’s underlying purpose for

the availment of the US dollar denominated R/P facility (e.g., trade documents
as provided under existing FX rules and regulations);
- Notarized undertaking/certification signed by the bank’s President or Country

Manager (in the case of local branch of a foreign bank), Compliance Officer and
Head of Treasury, indicating the following:
" Specific purpose of fund utilization;
" Proceeds of borrowing shall be used exclusively to fund liquidity
requirements of FCDU/EFCDU or RBU local operations;
" The Bank is not a net US Dollar lender to the swaps and interbank
markets nor conduit for another bank at the time of application and for the
duration of the USD R/P availment.
I. Reportorial Requirements
Banks with outstanding US dollar denominated R/P agreement with the BSP are
required to submit to the appropriate Central Point of Contact Department (CPCD) of the
Supervision and Examination Sector (SES) the following :
- Report on the deployment/utilization of borrowed funds and other documents

and supplemental information, as may be required, to enable BSP to assess
the legitimacy of the utilization of such funds, within three (3) banking days
from release of the proceeds of the R/P agreement;
- FX Position Report as of end of reference week, within two (2) banking days
from the end of each reference week until the maturity of the R/P agreement;
and
- All documents and records relative to the Bank’s availment and use of
proceeds of the US dollar denominated R/P facility shall be made available to
the BSP upon request.
J. Pre-termination
- The R/P agreement may be paid at any time before maturity, subject to
mutual agreement of both parties.
- The BSP may unilaterally pre-terminate the borrowing arrangements under

the following conditions:
" The borrower becomes ineligible;

" Funds are found to have been used for ineligible purposes;
" Collateral margins, if any, are not met;
" Continuing conditions are not met.
K. Documentation
- The repurchase agreement between the bank and the BSP shall be covered
by a master repurchase agreement, repurchase agreement confirmation and
such other documentation as may be necessary to facilitate the transaction.
L. Accounting treatment.
- The US dollar denominated R/P facility shall be treated as collateralized

borrowings from the BSP and shall be accounted for in accordance with the
Financial Reporting Package (FRP) issued under Subsection X161.3 of the
MORB, as amended.
- Eligible securities booked under the HTM category shall be subject to the
tainting provision provided under Subsection X388.5 of the MORB upon default/
non-payment of the amount due three (3) banking days after the maturity of the
R/P agreement or disqualification of borrowers.
M. Penalty Clauses
· Violations of the terms and conditions of the USD R/P facility are governed by
sanctions provided under BSP Circular No. 627 dated 23 October 2008, including but not
limited, to termination of eligibility and pre-termination of any outstanding balance through
repayment and/or sale of the collateral.
For guidance.
Adopted: 23 Oct. 2008
(SGD.) DIWA C. GUINIGUNDO

Officer-in-Charge
--o0o--
Amendment of Subsection X169.3 of the Manual of

Regulations for Banks (Outsourcing of Other Banking Functions)
Pursuant to Monetary Board Resolution No. 1192 dated 11 September 2008, the
Manual of Regulations for Banks (MORB) is hereby amended, as follows:
Subsection X169.3 Outsourcing of other banking functions of the MORB is hereby

amended to read, as follows:
“Without need of prior Monetary Board approval, banks may outsource the
following functions, services or activities:
19. Automated Teller Machine (ATM) incident management service;

Provided, that the messages transmitted by the ATM machines to the
service provider’s monitoring system are purely ATM statuses and in no
way shall client or transaction information be sent;
20. such other activities as maybe determined by the Monetary Board.”
This Circular shall take effect fifteen (15) days after publication in the Official Gazette
or in a newspaper of general circulation.

Officer-in-Charge
--o0o--
Amended Branching Policy and Guidelines
Text Available at Office of the National Administrative Register,

U.P. Law Complex, Diliman, Quezon City
Adopted:13 Oct. 2008
--o0o--

Magna Carta for Micro, Small and Medium Enterprises
Pursuant to the provisions of Republic Act (R.A.) No. 6977, as amended by R.A. No.
8289 and R.A. No. 9501, now known as “Magna Carta for Micro, Small and Medium
Enterprises (MSMEs)”, the Monetary Board in its Resolution No. 1298 dated 02 October
2008, approved the revised rules and regulations governing the mandatory allocation of
credit resources to micro, small and medium enterprises as follows:
Section 1. Section X342 of the Manual of Regulations for Banks (MORB) and its
Subsections are hereby amended to read as follows:
Section X342. Mandatory Allocation of Credit Resources to Micro, Small and

Medium Enterprises. The following rules shall govern the mandatory allocation
of credit resources to micro, small and medium enterprises (MSMEs).
Subsection X342.1. Definition of terms. For purposes of this Circular, the

following definitions shall apply:
a) Lending Institutions – shall refer to all banks, namely: UBs, KBs, TBs and RBs/Coop
Banks, including government-owned banks.
b) Total Loan Portfolio – shall include all loans and receivables, other than those booked in
the FCDU/EFCDU, as defined in the Manual of Accounts Section of the Financial Report-
ing Package issued under Circular No. 512 dated 3 February 2006, as amended (gross of
allowance for credit losses) excluding the following:
1) Interbank loans receivable, other than (a) wholesale lending of a bank to

conduit banks/quasi-banks for on-lending to MSMEs, and (b) rediscounting
facility granted to another bank for loans to MSMEs;
2) Wholesale lending of a bank to conduit non-bank financial institutions without

quasi-banking authority, other than those for on-lending to MSMEs;
3) Loans granted under special financing programs, other than those for MSMEs;
4) Loans granted to MSMEs, other than to Barangay Microbusiness Enterprises

(BMBEs), to the extent funded by wholesale lending of, or rediscounted with,
another bank;
5) Agrarian reform credits/other agricultural loans granted under P.D. No. 717,
other than those eligible for compliance with the mandatory allocation of credit
for MSMES, as well as development loans incentives under R.A. No. 7721
granted by banks other than branches of foreign banks; and
6) Loans and receivables arising from repurchase agreements, certificates of

assignment/participation with recourse and securities lending and borrowing
transactions.
c) Micro, Small and Medium Enterprises – shall refer to any business activity within the
major sectors of the economy, namely: industry, trade, services, including the practice of
one’s profession, the operation of tourism-related establishments, and agri-business, which
for this purpose refers to any business activity involving the manufacturing, processing,
and/or production of agricultural produce, whether single proprietorship, cooperative, part-
nership or corporation -
(1) whose total assets, inclusive of those arising from loans but exclusive of the
land on which the particular business entity’s office, plant and equipment are
situated, must have value falling under the following categories:
Micro : not more than P3,000,000

Small : more than P3,000,000 to P15,000,000
Medium : more than P15,000,000 to P100,000,000
(2) duly registered with the appropriate agencies as presently provided by law,
except in the case of micro enterprises as defined above.
Subsection X342.2. Period covered; prescribed portions of loan portfolio to be

allocated. Banks shall for a period of ten (10) years from 17 June 2008 to 16 June 2018,
allocate at least eight percent (8%) for micro and small enterprises (MSEs) and at least
two percent (2%) for medium enterprises (MEs) of their total loan portfolio based on their
Balance Sheet as of the end of previous quarter, and make it available for MSME credit.
Banks may be allowed to report compliance on a groupwide (i.e., consolidation of

parent and subsidiary bank/s) basis so that excess compliance of any bank in the group
can be used as compliance for any deficient bank in the group: Provided, That the subsidiary
bank/s is/are at least majority owned by the parent bank: Provided, further, That the parent
bank shall be held responsible for the compliance of the group.
The consolidated report shall be submitted by the parent bank in the prescribed form
and shall be supported by the individual reports of the bank and its subsidiaries duly
signed by each bank’s authorized signatory.
For purposes of determining compliance with the mandated allocation of credit

resources to MSMEs, only eligible credit exposures as enumerated in Subsection X342.3,
other than those booked in the FCDU/EFCDU shall be considered.
Subsection X342.3. Eligible credit exposures. Funds set aside in accordance

with the foregoing requirement shall be made available for any of the following:
a) For micro and small enterprises (MSEs)
(1) Actual extension of loans to eligible MSEs, other than to BMBEs which are
covered in Item “c(3)” hereof: Provided, however, That loans granted to MSEs
other than BMBEs, to the extent funded by wholesale lending of, or rediscounted
with, another bank shall not be eligible as compliance with the mandatory
credit allocation; or
(2) Loans granted to export, import, and domestic micro and small scale traders,
other than to BMBEs which are covered in Item “c(3)” hereof: Provided, however,
That loans granted to MSEs other than BMBEs, to the extent funded by
wholesale lending of, or rediscounted with, another bank shall not be eligible as
compliance with the mandatory credit allocation; or
(3) Purchase of eligible MSE loans listed in Items “(1)” and “(2)” above on a
“without recourse” basis from other banks and financial institutions; or
(4) Purchase/discount on a “with or without recourse” basis of MSE receivables,

other than BMBE receivables which are covered in Item “c(3)” hereof; or
(5) Wholesale lending or rediscounting facility granted to participating financial

institutions (PFIs) for on-lending to MSEs, other than to BMBEs which are
covered in Item “c(3)” hereof; or

institutions (PFIs) for on-lending to export, import, and domestic micro and
small scale traders, other than to BMBEs which are covered in Item “c(3)”
hereof; or
(7) Commercial letters of credit outstanding, net of margin deposits, issued for
the account of MSEs.
b) For medium enterprises (MEs)
(1) Actual extension of loans to eligible MEs: Provided, however, That loans
granted to MEs to the extent funded by wholesale lending of, or rediscounted
with, another bank shall not be eligible as compliance with the mandatory
credit allocation; or
(2) Loans granted to export, import, and domestic medium scale traders:
Provided, however, That loans granted to MEs to the extent funded by wholesale
lending of, or rediscounted with, another bank shall not be eligible as compliance
with the mandatory credit allocation; or
(3) Purchase of eligible ME loans listed in Items “(1)” and (2) above on a “without
recourse” basis from other banks and financial institutions; or
(4) Purchase/discount on a “with or without recourse” basis of ME receivables;

or

institutions (PFIs) for on-lending to MEs; or

institutions (PFIs) for on-lending to export, import, and domestic medium scale
traders; or
(7) Commercial letters of credit outstanding, net of margin deposits, issued for
the account of MEs.
c) Alternative compliance for either or both MSEs or/and MEs
(1) Paid subscription/purchase of liability instruments as may be offered by the

SB Corporation; or
(2) Paid subscription of preferred shares of stock of the SB Corporation; or
(3) Loans from whatever sources granted to BMBEs as provided under Subsection
X365.5.
Subsection X342.4. Ineligible credit instruments. The purchase of government

notes, securities, and other negotiable instruments other than the instruments offered by
the SB Corporation, and the granting of loans to MSMEs, other than to BMBEs, to the
extent funded by wholesale lending of, or rediscounted with, another bank shall not be
deemed compliance with the foregoing requirement.
Subsection X342.5. Rights/remedies available to lending institutions not qualified to

acquire or hold lands of public domain. Lending institutions which are not qualified to
acquire or hold lands of the public domain in the Philippines shall be permitted to bid and
take part in sales of mortgaged real property in case of judicial or extra-judicial foreclosure,
as well as avail of receivership, enforcement and other proceedings, solely upon default of
a borrower, and for a period not exceeding five (5) years from actual possession, provided
that in no event shall title to the property be transferred to such lending institution. If the
lending institution is the winning bidder, it may, during said five (5) year period, transfer its
rights to a qualified Philippine national, without prejudice to a borrower’s rights under appli-
cable laws.
Subsection X342.6. Submission of reports. Banks shall submit reports on compli-

ance with the mandatory credit allocation on a quarterly basis within 15 banking days from
the end of reference quarter to Supervisory Data Center (SDC) of the BSP, using the
attached form. Said report shall be considered category A-3 report. It shall become effec-
tive starting with the reporting period ending 31 December 2008. Specific guidelines on the
modes/manner of submission of the report shall be covered by a separate issuance.
Banks shall maintain appropriate records/details of the reported loans to micro, small
and medium enterprises and shall make these available to BSP.
Subsection X342.7. Sanctions. The following administrative sanctions shall be im-

posed on banks:
a) For non-compliance/under compliance with the prescribed portions of loan portfolio to

be allocated to MSEs and MEs:
(1) For zero compliance for both MSEs and MEs – P500,000;
(2) For under-compliance:
(a) For MSEs – percentage of under-compliance multiplied by P400,000

(b) For MEs – percentage of under-compliance multiplied by P100,000
to be computed as of end of each quarter.
(3) For willful making of a false or misleading statement to the BSP –P500,000
per quarter-end report without prejudice to the sanctions under Section 35 of
R.A. No. 7653.
The imposition of the fines in Items “(1)” to “(2)” shall be without prejudice to the other
administrative sanctions under Section 37 of R.A. No. 7653.
(b) For non-submission/delayed submission of reports on compliance with both the pre-
scribed portions of loan portfolio to be allocated to MSEs and MEs, respectively:
(1) UBs/KBs - P1,200
(2) TBs - 600
(3) RBs/Coop Banks - 180
per calendar day of delay.
Subsection X342.8. Disposition of penalties collected. Ninety percent (90%) of

penalties collected under Subsection X342.7 above shall be remitted by the BSP to the
MSMED Council Fund, while the remaining ten percent (10%) shall be retained by the
BSP to cover its administrative expenses.
Section 2. Subsection X365.5 on the incentives to participating financial institutions

under R.A. No. 9178 is hereby amended to read, as follows:
“Subsection X365.5. Incentives to participating financial institutions. To encour-

age BMBE lending, the following incentives shall be granted to banks and other financial
institutions as may be applicable:
“a. All loans from whatever sources granted to BMBEs under R.A. No. 9178
shall be considered as part of alternative compliance to P.D. No. 717 or to R.A.
No. 6977, as amended. For purposes of compliance with P.D. No. 717 and
R.A. No. 6977, as amended, loans granted to BMBEs under the Act shall be
computed at twice the amount of the outstanding balance of the loans: Provided,
That loans used as alternative compliance with P.D. No. 717 which were
computed at twice their outstanding balance shall no longer be eligible as
compliance with R.A. No. 6977, as amended during the same period and vice
versa: Provided, further, That said loans may be used as alternative compliance
with both P.D. No. 717 and R.A. No. 6977, as amended at the same time at the
maximum amount of one hundred percent (100%) of their outstanding balance
each: Provided, furthermore, That funds loaned by or rediscounted with
government-owned banks and other government financial institutions to
accredited private banking and other financial institutions for on-lending to BMBEs
shall be eligible as part of alternative compliance for P.D. No. 717 or for R.A.
No. 6977, as amended, of the government-owned banks and the accredited
private banks at the maximum amount of one hundred percent (100%) of their
outstanding balance each: Provided, finally, That loans used as alternative
compliance with R.A. No. 6977, as amended, computed at either twice their
outstanding balance or their maximum amount of one hundred percent (100%)
may be used as alternative compliance for either or both the prescribed portions
of loan portfolio to be allocated to micro and small enterprises and medium
enterprises, respectively, as long as the aggregate amount used does not exceed
twice their outstanding balance or their maximum amount of one hundred percent
(100%), as the case may be.
“b. x x x .”
Section 3. Repealing Clause. This Circular supersedes Circular No. 147 dated 24
October 1997, as amended by Circular No. 209 dated September 9, 1999, Circular No.
235 dated April 3, 2000, Circular No. 285 dated June 6, 2001, Circular No. 376 dated
March 20, 2003 and Circular Letter dated 4 January 2001.


Officer-in-Charge
--o0o--
Circular No. 626
Reclassification of Financial Assets Between Categories
The Monetary Board, in its Resolution No. 1388 dated 23 October 2008 approved the
following guidelines governing the reclassification of investments in debt and equity secu-
rities between categories:
Financial institutions shall be allowed to reclassify their investments in debt and eq-
uity securities from the Held for Trading (HFT) or Available for Sale (AFS) categories to the
Held to Maturity (HTM) or Unquoted Debt Securities Classified as Loans (UDSCL) catego-
ries, subject to the following conditions:
1. The reclassification shall be done in accordance with the provisions of the October
2008 amendments to the International Accounting Standards (IAS) 39: Financial Instru-
ments: Recognition and Measurement and International Financial Reporting Standards
(IFRS) 7: Financial Instruments: Disclosures;
2. Financial assets that are reclassified from HFT/AFS to HTM/UDSCL shall thereafter be
treated in accordinace with the guidelines provided under Appendix 33 of the Manual of
Regulations for Banks and Appendix Q-20 of the Manual of Regulations for Non-Bank
Financial Institutions on the Classification, Accounting Procedures, Valuation and Sales
and Transfers of Investments in All Debt Securities and Marketable Equity Securities;
3. Reclassification from the AFS to the HTM category shall only be allowed if there was a
change in intention for holding the debt instrument, and the financial institution has the
ability to hold it until maturity; and
4. Financial institutions may reclassify from HFT/AFS to HTM/UDSCL effective 1 July

2008: Provided, That any reclassification made in periods beginning on or after 1 Novem-
ber 2008 shall take effect from the date when the reclassification is made: Provided,
Further that, financial institutions may only reclassify from HFT/AFS to HTM/UDSCL until
31 December 2008.
This Circular shall take effect immediately.

Officer-In-Charge
--o0o--
US Dollar Denominated Repurchase Agreements

with the Bangko Sentral ng Pilipinas
The Monetary Board, in its Resolution No.1373 dated 23 October 2008, approved the
following amendments to the Manual of Regulations for Banks (MORB) on the general
guidelines governing the US dollar denominated repurchase agreements of banks with the
BSP.
Section 1. The provisions of Subsection X601.1 of the MORB on repurchase

agreements (R/P) with the BSP are hereby amended by adding the following:
“X601.1 Repurchase agreements with Bangko Sentral. R/P agreements

may be effected with the BSP subject to the following terms and conditions,
xxx
US dollar denominated R/P facility may likewise be effected with the BSP, subject to
the following terms and conditions, and as may be provided under the R/P facility:
(a) Eligible borrowers. The US dollar denominated R/P facility shall only be
available to banks that are not net US dollar lenders in the swaps and interbank
markets and with legitimate foreign currency denominated funding needs as
may be provided under the R/P facility: Provided, That the borrowing shall be
for the account of the applicant bank and shall not be used to fund liquidity
requirements of foreign branches, affiliates, or subsidiaries.
(b) Collateral. Only US dollar denominated obligations of the National Government

of the Republic of the Philippines (ROP) shall be eligible as collateral.
(c) The availing banks shall comply with all the pertinent requirements of the
BSP.
Section 2. The provisions of Subsection X501.3 of the MORB on the authorized trans-
actions of FCDU/EFCDU are hereby amended by adding as Items “a(11)” and “b(15) the
following:
“Engage in US dollar denominated repurchase agreements (R/P) with the BSP,

as provided under Subsection X601.1.”
Section 3. The provisions of Subsection X501.4 of the MORB on the foreign currency
cover requirements of FCDU/EFCDU are hereby amended as follows:
“Subsection X501.4. Foreign Currency Cover Requirements. Depository

banks under the foreign currency deposit and expanded foreign currency deposit
systems shall maintain at all times a 100% cover for their foreign currency
liabilities, except US dollar denominated repurchase agreements with the BSP.
Provided: That, violation of the terms and conditions of the US dollar denominated
R/P facility shall subject the borrowings of the bank to the FCDU/EFCDU asset
and liquid asset cover requirements. x x x.
The amended report on compliance with FCDU/EFCDU cover requirements which

shall form part of the FRP is attached as Annex A*.
Section 4. Sanctions. The Monetary Board may at its discretion, impose any or all of
the following sanctions to a bank and/or its director/s or officer/s found to be responsible
for violation of the provisions of this Circular or the terms and conditions of the US dollar
denominated R/P agreement with the BSP :
a. Termination of eligibility and pre-termination of any outstanding balance through repay-

ment and/or sale of the collateral;
b. Fine of up to P30,000 per transaction per day of violation reckoned from the time the
violation was committed up to the date it is corrected;
c. Suspension of interbank clearing privileges/immediate exclusion from clearing;
d. Suspension of access to BSP rediscounting facilities;
* Text Available at Office of the National Administrative Register, U.P. Law Complex,
Diliman, Quezon City
e. Suspension of lending or foreign exchange operations or authority to accept new depos-

its or make new investments;
f. Revocation of authority to perform trust operations;
g. Revocation of quasi-banking license; and
h. Suspension for one hundred twenty (120) days without pay of the officers and/or direc-
tors responsible for the violation.
i. Other sanctions as may be provided by law.

Officer-in-Charge
--o0o--
Circular No. 628
Guidelines on the Reclassification of Financial Assets Between Categories
Further to Circular No. 626 dated 23 October 2008, the Monetary Board, in its Reso-
lution No. 1423 dated 30 October 2008 approved the following additional guidelines on the
reclassification of financial assets between categories:
Section 1. Clarification on the provisions of Amendments to IAS 39 and IFRS 7. The

following additional guidelines shall govern the reclassification of financial assets between
categories in accordance with the provisions of the Amendments to International Account-
ing Standards 39 Financial Instruments: Recognition and Measurement and International
Financial Reporting Standards 7 Financial Instruments: Disclosures:
(1) Only non-derivative financial assets may be reclassified from Held for Trading (HFT) to
Available for Sale (AFS), Held to Maturity (HTM) or Unquoted Debt Securities Classified as
Loans (UDSCL). This shall however exclude those that are Designated at Fair Value through
Profit or Loss (DFVPL).
(2) A financial asset may be reclassified out of HFT into AFS/HTM/UDSCL only in rare
circumstances and if there is a change in intention (i.e., the financial asset is no longer
held for the purpose of selling or repurchasing it in the near term). The financial assets
shall be reclassified at their fair values on the effective date of reclassification all at the
same time. Any gain or loss already recognized in profit or loss shall not be reversed. The
fair value of a financial asset on the effective date of reclassification becomes its new cost
or amortized cost, as applicable.
For the purpose of this Circular, a financial institution (FI) may reclassify all or a
portion of its financial assets from HFT to AFS/HTM/UDSCL as of the same date which
shall be any day from 1 July 2008 to 14 November 2008. For example, an FI may choose
to reclassify all financial assets booked under HFT to AFS/HTM/UDSCL as of 1 July 2008
using their fair values as of 1 July 2008. Another FI may choose to reclassify all financial
assets booked under HFT to AFS/HTM/UDSCL as of 14 November 2008 using their fair
values as of 14 November 2008.
Thereafter, the FI shall not be allowed to “retrospectively” reclassify HFT to AFS/

HTM/UDSCL. Any reclassification on or after 15 November 2008 shall take effect only from
the date when the reclassification is made.
(3) A financial asset booked under HFT that would have also met the definition of UDSCL if
the financial asset had not been required to be classified as HFT at initial recognition, may
be reclassified from HFT to UDSCL if the entity has the intention and ability to hold the
financial asset for the foreseeable future or until maturity. The financial assets shall be
reclassified at their fair values on the effective date of reclassification, not necessarily all at
the same time. Any gain or loss already recognized in profit or loss shall not be reversed.
The fair value of a financial asset on the effective date of reclassification becomes its new
cost or amortized cost, as applicable.
For the purpose of this Circular, an FI may reclassify said financial assets from HFT to
UDSCL as of any date from 1 July 2008 to 14 November 2008. Thereafter, the FI shall not
be allowed to “retrospectively” reclassify HFT to UDSCL. Any reclassification on or after 15
November 2008 shall take effect only from the date when the reclassification is made.
(4) A financial asset booked under AFS that would have also met the definition of UDSCL
if the financial asset had not been designated as AFS, may be reclassified from AFS to
UDSCL if the FI has the intention and ability to hold the financial assets for the foreseeable
future or until the maturity. The financial assets shall be reclassified at their fair values on
the effective date of reclassification, not necessarily all at the same time. Any gain or loss
that has been recognized in other comprehensive income shall not be reversed. The fair
value of a financial asset on the effective date of reclassification becomes its new cost or
amortized cost, as applicable.
For the purpose of this Circular, an FI may reclassify said financial assets from AFS to
UDSCL as of any day from 1 July 2008 to 14 November 2008. Thereafter, the FI shall not be
allowed to “retrospectively” reclassify AFS to UDSCL. Any reclassification on or after 15
November 2008 shall take effect only from the date when the reclassification is made.
(5) The financial asset reclassified in accordance with Items 2, 3 or 4 above shall thereafter
be treated in accordance with the guidelines provided in Circular No. 476 dated 13 Febru-
ary 2005, as amended on the Classification, Accounting Procedures, Valuation and Sales
and Transfers of Investments in all Debt Securities and Marketable Equity Securities (in-
corporated in the Manual of Regulations for Banks and Non-Bank Financial Institutions as
Appendices 33 and Q-20, respectively): Provided, however, that if an FI subsequently
increases its estimates of future cash receipts as a result of increased recoverability of
those cash receipts, the effect of that increase shall be recognized as an adjustment to
the effective interest rate from the date of the change in estimate rather than as an adjust-
ment to the carrying amount of the asset at the date of the change in estimate.
(6) FIs that shall reclassify based on the provision of this Section shall comply with the
disclosure requirements under the Amendments to IAS 39 and IFRS 7 in preparing their
audited financial statements.
Section 2. Alternative accounting treatment for prudential reporting purposes. The

following may be adopted for purposes of prudential reports:
(1) A financial asset booked under AFS may be reclassified from AFS to HTM/UDSCL if the
FI has the intention and ability to hold the financial assets for the foreseeable future or until
the maturity using the fair value carrying amount of the financial assets as of the effective
date of reclassification.
For the purpose of this Circular, an FI may reclassify said financial assets from AFS
to HTM/UDSCL as of any day from 1 July 2008 to 14 November 2008. Thereafter, the FI
shall not be allowed to “retrospectively” reclassify AFS to HTM/UDSCL. Any reclassification
on or after 15 November 2008 shall take effect only from the date when the reclassification
is made
(2) Financial assets that are booked under the AFS category because of the tainting of the
HTM portfolio may be reclassified to HTM or UDSCL using the fair value carrying amount of
the financial assets as of the effective date of reclassification.
For the purpose of this Circular, an FI may reclassify said financial assets from
AFS to HTM/UDSCL as of any day from 1 July 2008 to 14 November 2008.
(3) Hybrid financial assets (other than CLNs) may be included among the financial assets
that may be reclassified out of the HFT and into the AFS/HTM/UDSCL in accordance with
Items 2 and 3 of Section 1 above by, first, bifurcating the embedded derivative from the host
instrument and booking the derivatives under Derivatives with Positive/Negative Fair Value;
and second, reclassifying the host contract to AFS/HTM/UDSCL.
(4) CLNs and other similar instruments that are linked to ROPs, on the other hand, may be
included among the financial assets that may be reclassified (a) out of the HFT into AFS/
HTM/UDSCL in accordance with Items 2 and 3 of Section 1 above; or (b) from AFS to
UDSCL or HTM in accordance with Item 4 of Section 1 above and Item 1 hereof, without
bifurcating the embedded derivatives from the host instrument: Provided, That this shall
only apply for CLNs that are outstanding as of the effective date of reclassification, which
shall not be on or later than 15 November 2008.
Section 3. Applicability to Trust Institutions. The provisions of this Circular shall like-
wise be applicable to trust institutions except for the following accounts:
(1) Unit Investment Trust Funds (UITFs); and
(2) Pre-need, escrow and other accounts whose investments are regulated by or require
approval from other regulatory agencies:
Provided, That prior to the reclassification, the trust institutions shall secure the client’s
written approval/consent and reflect the change in client’s investment profile in the revised
Investment Policy Statement as provided in Appendix “A” (Basic Standards in the Admin-
istration of Trust, Other Fiduciary and Investment Management Accounts) of Circular No.
618 dated 20 August 2008. Provided, further, That in the case of managed retirement
funds/employee benefit trust accounts, such reclassification shall be aligned with the
liquidity requirements resulting from the latest actuarial valuation of the fund/account.
Section 4. Reportorial Requirements. FIs that reclassify financial assets out of the
HFT/AFS categories shall submit a report using the format prescribed in Annex A to the
Supervisory Data Center, Supervision and Examination Sector on or before 30 November
2008.
Section 5. Amendments to Circular No. 626. Item 4 of Circular No. 626 shall be amended
to read as follows:
“Financial institutions may reclassify from HFT/AFS to AFS/HTM/UDSCL effective

1 July 2008: Provided, That any reclassification made in periods beginning on
or after 15 November 2008 shall take effect from the date when the reclassification
is made.: Provided, Further That, financial institutions may only reclassify from
HFT/AFS to HTM/UDSCL until 31 December 2008.”

Governor
--o0o--
Treatment of Net Unrealized Losses in the FCDU/EFCDU Book for Purposes of

Determining Compliance with the FCDU/EFCDU Asset Cover Requirement
The Monetary Board in its Resolution No. 1422 dated 30 October 2008, approved the
following treatment of net unrealized losses arising from marking-to-market of financial
assets/liabilities and revaluation of third currencies to US dollar in the FCDU/EFCDU book
for purposes of determining compliance with the FCDU/EFCDU asset cover requirement:
“Whenever the total of the following FCDU/EFCDU book accounts:
1. Retained Earnings – Free – FCDU/EFCDU, representing cumulative

unrealized gains/(losses) from operations from prior years,
2. Items comprising the ‘Net Unrealized Gains/(Losses) from Operations’
credited/debited to ‘Undivided Profits/(Losses)’, as well as those not yet credited/
debited to ‘Undivided Profits/(Losses)’,
3. ‘Net Unrealized Gains/(Losses) on AFS Financial Assets’ recognized directly

in equity and
4. ‘Gains/(Losses) on Fair Value Adjustments of Hedging Instruments’

recognized directly in equity,results to a net “debit balance”, banks may for the
period beginning the effectivity of this Circular until 31 March 2009, add back
the “net debit amount” to total assets in the FCDU/EFCDU book for purposes
of determining compliance with the 100% asset cover requirement instead of
transferring eligible foreign currency assets from the RBU book to FCDU/EFCDU
book as required under Item c of Section 5 of Circular No. 601 dated 13 February
2008.
(SGD.) AMANDO M. TETANGCO, JR

Governor
BUREAU OF ANIMAL INDUSTRY
Memorandum Order No. 19, s. 2008
Lifting the Temporary Ban on the Importation of Domestic and

Wild Birds and Their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Arkansas
WHEREAS, based on the final report on July 18, 2008, APHIS officially notified the
Office International des Epizooties (OIE) that the H7N3 Low Pathogenic Notifiable Avian
Influenza (LPNAI) incident in Washington County, Arkansas has been successfully eradi-
cated;
WHEREAS, after enhanced surveillance of all commercial flocks and backyard poul-
try in the 10 kilometer zone around the index premises detected no further outbreaks of
LPNAI have been detected since the outbreak was confirmed on 7 June 2008;
WHEREAS, environmental testing of the single affected premises yielded negative

results;
WHEREAS, based on the evaluation of the Bureau of Animal Industry (BAI), the risk of
contamination from importing poultry and poultry products from Arkansas is negligible;
NOW, THEREFORE, I, ATTY. ARTHUR C.YAP, Secretary of Agriculture, by the pow-

ers vested in me by law, do hereby lift the temporary ban on the importation of domestic
and wild birds and their products including poultry meat, day old chicks, eggs and semen
originating from Arkansas.
All import transactions of the above products shall be in accordance with the existing
rules and regulations of the Department of Agriculture, Bureau of Animal Industry and
National Meat Inspection Service (DA-BAI-NMIS)
All orders,rules and regulations or parts thereof, which are inconsistent with the provi-
sions of this order, are hereby repealed or amended accordingly.
This ORDER shall take effect immediately.
(SGD.) ATTY. ARTHUR C. YAP

Secretary
--o0o--
Memorandum Order No. 21, s. 2008
Temporary Ban on the Importation of Domestic and

Wild Birds and Their Products Including Poultry Meat, Day Old Chicks,
Eggs and Semen Originating from Germany

--o0o--
Memorandum Order No. 23
Lifting the Temporary Ban on the Importation of Foot and Mouth Disease-
Susceptible Animals, Their Products and By-Products Originating from Mato
Grosso Do Sul and Parana, Brazil
WHEREAS, Resolution No. XVII of the International Committee upon recommenda-

tion of the Scientific Commission for Animal Diseases of the World Organization for Animal
Health (OIE) dated May 24, 2008 recognizes the restoration of Foot and Mouth Disease
(FMD) free status with vaccination of the States of Mato Grosso Do Sul and Parana,
Brazil;
WHEREAS, based on the evaluation of the Bureau of Animal Industry (BAI), the risk of
contamination from importing FMD-susceptible animals and their products from the Mato
Grosso Do Sul and Parana, Brazil is negligible;
NOW, THEREFORE, I, ATTY. ARTHUR C.YAP, Secretary of Agriculture, by the pow-

ers vested in me by law, do hereby lift the temporary ban on the importation of FMD-
susceptible animals and their products from the above-mentioned States of Brazil.
All import transactions on the importation of the above products shall be in accor-
dance with the existing rules and regulations of the Department of Agriculture, Bureau of
Animal Industry and National Meat Inspection Service (DA-BAI-NMIS)
All orders,rules and regulations or parts thereof, which are inconsistent with the provi-
sions of this order, are hereby repealed or amended accordingly.
This ORDER shall take effect immediately.

Secretary
BUREAU OF CUSTOMS
Customs Administrative Order No. 4-2008-A
Creating Parameters for the Rationalized Application of

CAO No. 4-2008 on the Non-Importation of Resin Through the
Customs Bonded Warehouse Scheme
I. OBJECTIVES:
1.1. To address the concerns of a great number of legitimate importers/exporters operating

in the country, whose consolidated business substantially contribute to and account for
the Philippine’s economic stability and positive global competitiveness.
1.2 .To balance the government’s exercise of police power under CAO No. 4-2008 with the
interest of legitimate business as far as the importation of resin through the customs
bonded warehouse system is concerned considering that it is not the government’s intent
to stifle legitimate business but rather to promote it.
II. GENERAL PROVISIONS:

Under Article 39 (1) of EO 226 or the Omnibus Investment Code registered export-
oriented companies are granted access to the utilization of the bonded warehousing sys-
tem. Said provision states the following:
“Art. 39 (l) Access to Bonded Manufacturing/Trading System- Registered export-ori-

ented enterprises shall have access to the utilization of the bonded warehousing system
in all areas required by the project subject to such guidelines as may be issued by the
Board upon prior consultation with the Bureau of Customs.”
Bonded Trading Warehouses were converted to Industry Specific Customs Bonded

Warehouses under CAO No. 7-2002, “Establishing of Industry-Specific CBWs and the
Rules and Regulations Governing its Operations.”
Recognizing that the indiscriminate implementation of CAO No. 4-2008 will have dire
consequences on the business of legitimate importers/exporters operating in the Philip-
pines, which has no adequate petrochemical industry of its own and is highly reliant on
imported resin, the creation of certain parameters for its rationalized application is war-
ranted in the light of the spiraling cost of the said oil-based commodity and other produc-
tion costs.
III. ADMINISTRATIVE PROVISIONS:
3.1 The application for exemption of CBWs to import resin shall be filed with the Bonded
Warehouse Committee upon favorable recommendation from the Office of the District Col-
lector concerned.
3.2 The application shall be accompanied by a Prior Disclosure Statement which must be
under oath by the President of the Company, the proprietor or managing partner which
contains the following details, among others:
3.2.1.Maximum cubic-space of applicant CBW’S raw materials and finished

products compartments at any given time for manufacturing including all
members for Common Bonded Warehouse and all accredited clients/end-users
for ICBW;
3.2.2.No-Sub-contracting of the subject resin;
3.2.3.Number of equipment indicating their rated and actual capacities;
3.2.4.Number of factory workers directly involved in the production;
3.2.5.Percentage of outright and constructive exports, indicating buyers, and
respective volume and value;
3.2.6.Monthly resin requirements, indicating types, grades, volume, value, as
well as names of local suppliers if sourced through bonded to bonded transfer
or constructive exports.
3.3. The following parameters shall be considered in determining who may continue to
import resin through the Customs Bonded Warehousing system:
3.3.1 BOI-registered manufacturing companies; or,
3.3.2 Industry Specific Customs Bonded Warehouses directly supplying the
resin requirements of their clients involved in the semiconductor/electronic/
automotive industry; or
3.3.3 Manufacturing Customs Bonded Warehouses or members of Common

Bonded Warehouses which are registered as exporters by the Export
Development Council; or,
3.3.4 Such other CBWs established to be legitimate exporters after due
consultation with the BOI, EDC, DTI, PEZA, Freeport Authorities, and other
relevant agencies and stakeholders.
3.4 The Bonded Warehouse Committee shall approve the application as endorsed by the
District Collector, subject to clearance from the Office of the Commissioner of Customs.
3.5 Those entities which are excluded from the foregoing enumeration but import resin
may do so through consumption and may avail of the refund or drawback mechanism cited
under Section 106 of the TCCP, as amended; if they utilize the article in their manufacture
of the products exported.
IV. ADMINISTRATIVE SANCTIONS:
Changes/amendments to the Prior Disclosure Statement without prior approval of the

Customs Bonded Warehouse Committee upon favorable recommendation of the District
Collector concerned shall be a ground for closure of the CBW without prejudice to the
institution of appropriate administrative or criminal proceedings against the individuals con-
cerned.
V. IMPLEMENTING RULES:
The Commissioner of Customs shall issue rules and regulations to effect the forego-
ing.
VI. REPEALING CLAUSE:
All other customs rules, regulations and issuances or parts thereof inconsistent with
this Order are hereby deemed modified/repealed accordingly.
VII. EFFECTIVITY:
This Order shall take effect fifteen (15) days after its due publication.
(SGD.) NAPOLEON L. MORALES

Commissioner
APPROVED:
(SGD.) MARGARITO B. TEVES
Secretary of Finance
-o0o-
Customs Administrative Order No. 6-2008
Bulk and Break Bulk Cargo Clearance Enhancement Program
Pursuant to Sections 1402 and 1403 in relation to Section 608 of the Tariff and Cus-
toms Code of the Philippines (TCCP), as amended, and R.A. 8792 otherwise known as the
Philippine E-Commerce Act, the following rules are hereby promulgated.
1. Objectives
1.1. To establish an advance clearance system for bulk and break bulk cargoes in accor-
dance with the objectives of the World Customs Organization International Convention on
the Simplification and Harmonization of Customs Procedures otherwise known as the
Revised Kyoto Convention.
1.2. To facilitate the assessment of bulk and break-bulk cargoes by enhancing the capa-
bility of the Bureau of Customs in cargo surveying by harnessing available technical sup-
port at no cost to the government.
1.3 To obtain and secure critical information required for the proper inspection, classifica-
tion, and valuation of bulk and break-bulk cargoes using measures compliant with cus-
toms international best practices and global trade standards.
1.4 To define the responsibility, accountability and liability of accredited surveying compa-
nies/surveyors under the accreditation program.
1.5. To protect and maximize revenue collection by ensuring the correct assessment of
duties and taxes on bulk and break-bulk cargoes.
2. Definition of Terms
2.1. Surveying Company – Refers to a reputable company with an international office

network in all countries supplying imported articles to the Philippines and engaged in the
business of cargo surveying of shipments.
2.2. Accredited Cargo Surveying Company – A surveying company possessing a duly

approved accreditation issued by the Bureau of Customs.
2.3. Committee for Accreditation of Cargo Surveying Companies (CACSC). – A Committee

of Bureau of Customs Officers tasked and authorized to grant and approve accreditation of
cargo surveying companies/surveyors and periodically review the performance thereof.
CACSC may also investigate violations of the provisions of this Order and thereafter rec-
ommend suspension and/or revocation of accreditation to the Commissioner of Customs,
if needed.
2.4. Bulk Cargo – Refers to cargoes in a mass of one commodity not packaged, bundled,
bottled or otherwise packed; those cargoes (dry or liquid) which are loaded (shoveled,
scooped, forked, mechanically conveyed or pumped) in volume directly into a vessel’s
hold or cargo that is unbound as loaded; without count in a loose unpackaged form.
2.5. Break-Bulk Cargo – Refers to non-containerized general cargo stored in boxes, bales,
pallets or other individual units to be loaded onto or discharged from vessels. Those
cargoes loaded individually and described in terms of quantity and weight, (e.g. steel coils,
logs, sacks of rice) and not in shipping containers nor in bulk as with oil or grain.
2.6. Bulk/Break-Bulk Cargo Surveying – Refers to the inspection, analysis and/or compu-
tation of bulk or break-bulk cargo for the purpose of determining the correct dutiable weight,
quantity, description of goods in tariff terms, and/or cargo make or quality.
2.7. Customs Survey Inspectors (CSI) – Refers to organic Bureau of Customs officers and
personnel with special qualifications and technical training in cargo inspection and survey-
ing and capable of rendering efficient and reliable survey or examination reports.
3. Coverage
3.1. Scope. All Philippine bound bulk and break-bulk cargoes/shipments loaded unto
carrying vessels and which loading is customarily supervised or witnessed by marine
cargo surveyors shall be covered by this Order.
4. Survey Reports
4.1. Need for Advance Submission of Surveyor’s Report – In order to facilitate clearance of
subject imported cargoes by the BOC, the Port Load Survey shall be submitted to the
BOC in advance as prescribed in this order. For this purpose, it is preferred that such Port
Load Survey shall be conducted only by BOC Accredited Cargo Surveying Companies.
The Accredited Surveying Company shall be advised to submit Port Load Survey Reports
in a secured electronic format and in accordance with the implementing rules and regula-
tions herein after issued by the Commissioner of Customs.
Such Port Load Survey Report shall be submitted and transmitted to the Management
Information and System Technology Group (MISTG) which shall immediately disseminate
copies to the Office of the Commissioner (OCOM), Assessment and Operations Coordi-
nating Group (AOCG), Intelligence and Enforcement Group (IEG), Post Entry and Audit
Group (PEAG), Customs Intelligence and Investigation Service (CIIS), Enforcement and
Security Service (ESS), Port Operations Service (POS) and the Office of the District Col-
lector of the Port of Destination. The MISTG shall be responsible and accountable for the
data/survey report inventory, storage and security.
Accredited cargo surveying companies tasked to conduct the survey at the port of
loading in the country of exportation shall be required to send electronic soft copies of the
ship’s loading survey report of the cargo bound for the Philippines not later than twelve (12)
hours before arrival at the port of destination.
4.2. Non-compliance.- Survey reports and findings of non-accredited surveying compa-

nies/surveyors shall not have any bearing insofar as the determination of dutiable weight,
volume, quality and description of imported articles are concerned, even if the services of
said surveyor have been retained by either or both the shipper and the consignee.
Shipments without a Surveyor’s Report or accompanied by Surveyor’s Report

from a non-accredited surveyor will be subject to a comprehensive cargo survey at the port
of destination by a team of Bureau of Customs Survey Inspectors (CSI). No permit (gen-
eral or special) to unlade shall be given unless the CSI shall have boarded the vessel and
participated in the pre-discharging conference between and among the parties i.e., Ship’s
Officers (Master and/or the Chief Mate or Cargo Mate), Shore or Terminal Officers or repre-
sentative/s of the Consignee/s and their respective Cargo Surveyors.
The shipment shall remain under continuous underguarding from this time and
until the:
a. Completion of the examination or comprehensive cargo survey by the CSI

determining the nature, description, quantity or volume, and other pertinent
specifications of the cargoes/shipments;
b. Submission by CSI of its examination report to the District Collector of the

Port of Destination;
c. Assessment and collection of the duties and taxes and other charges accruing
on the shipment shall have been effected.
During this period, the District Collector concerned may direct such other actions as
may be appropriate under the premises pursuant to the provisions of the TCCP. Copies of
the Examination Report of the CSI shall likewise be submitted to Office of the Commis-
sioner (OCOM), Assessment and Operations Coordinating Group (AOCG), Intelligence
and Enforcement Group (IEG), Post Entry and Audit Group (PEAG) Customs Intelligence
and Investigation Service (CIIS), Enforcement and Security Service (ESS) and Port Opera-
tions Service (POS).
All expenses incurred for the cargo survey under this section shall be borne and paid
for by the importer, consignee or his agent pursuant to Section 3506 of the TCCP.
4.3. Benefits for compliant importers – Shipments accompanied by a Surveyor’s Report

issued by Accredited Surveying companies may avail of the advance clearance proce-
dures to be hereinafter provided in the implementing rules and regulations of this Order. In
addition, upon prior consultation with the concerned private sector/s CACSC may recom-
mend to the Commissioner of Customs other benefits under this program that may be
granted to compliant importers within the framework of the Tariff and Customs Code of the
Philippines as amended (TCCP).
4.4. Requirement for Automation. Accredited surveying companies shall fully automate
their processes and interface with e2m-Customs System within six (6) months from the
date of accreditation. The MISTG shall monitor the compliance by accredited surveying
companies with the automation of its process as required by this Order and may recom-
mend sanctions for the consideration of the CACSC in case an accredited surveying com-
pany fails to implement the automation requirement within the prescribed period. Until full
automation is attained, accredited surveying companies shall electronically send copies
of the ship’s loading survey report of the cargo bound for the Philippines within the period
and manner as provided in Section 4.2 hereof.
4.5. Probative Value. The report and findings of accredited surveying companies shall be
used by Customs Examiners/Appraisers in the determination of dutiable weight, volume,
description, valuation and classification of imported articles, without prejudice to actual
verification as the need arises.
5. Committee for Accreditation of Cargo Surveying Companies (CACSC)
5.1. Committee. A committee is hereby created hereinafter known as the Committee for
Accreditation of Cargo Surveying Companies (CACSC) which shall be composed of:
a. Deputy Commissioner for Assessment and Operations Coordinating Group

(AOCG) – Chairman
b. Deputy Commissioner for Management Information System and Technology
Group (MISTG) – Vice Chairman
c. Deputy Commissioner for Intelligence and Enforcement Group (IEG) – Member
d. Deputy Commissioner for Revenue Collection Monitoring Group (RCMG) –
Member
e. Deputy Collector for Operations, POM – Member
f. Deputy Collector for Operations, MICP – Member
g. Deputy Collector for Operations, Batangas - Member
h. Representative from the Office of the Commissioner - Member
i. Port Operations Service (POS) Director, Member
5.2. Functions of the CACSC. The CACSC shall have the following powers and functions:
a. To grant and approve the accreditation of Cargo Surveying Companies/

Surveyors and the renewal of the same upon its expiration upon application.
b. To monitor and periodically review the performance of Accredited Surveying
Companies/Surveyors through the POS;
c. To recommend the suspension or revocation of accreditations to the
Commissioner of Customs.
d. To perform such other functions relative to its creation and in accordance
with the provisions of this Order.
e. To consult with the private sector on a regular basis.
5.3. Required Voting. No application for accreditation shall be approved or disapproved

without the consent of a majority of members present in a meeting duly called for such
purpose.
5.4. Administrative Support. The CACSC shall be assisted and supported by the Port
Operations Service (POS) which shall receive, process, and recommend all applications
for accreditation and renewal of accreditation of surveying companies for consideration
and approval by the Committee.
5.5. Period to Approve Application. The CACSC shall grant or approve all applications for
accreditation within fifteen (15) days from receipt of said application with complete sup-
porting documents from the POS Secretariat.
5.6. Port Operation Service (POS) Allied Functions. The POS shall likewise be respon-
sible for the following matters for and in behalf of the CACSC:
a. To monitor and periodically review the performance of Accredited Surveying

Companies/Surveyors and recommend the suspension or revocation of the same
to the CACSC after due notice and hearing;
b. To keep an updated record of all accredited Surveying Companies including
the pertinent documents required by the grant of accreditation;
c. To have custody, storage and maintenance of all data/survey reports;
d. To maintain a priority or rotation list of members of the CSI for assignment
on a per mission order basis, whenever necessary;
e. To perform such other functions as provided by the CACSC and in accordance
with the provision of this Order.
6. Requirements for Accreditation
6.1. Application Fee. An application non-refundable processing fee of PhP 50,000.00

shall be paid upon the filing of the request for accreditation.
6.2. Accreditation Fee. A one-time accreditation fee of Php 200,000.00 and an annual fee
of PHP 50,000.00 for the second year and third year shall be paid upon approval of the
accreditation for which a BOC Official Receipt shall be duly issued evidencing payment
thereof. Non-payment of accreditation fee within fifteen (15) calendar days from receipt of
the approval shall cause the cancellation of the accreditation. Subsequent applications
shall be treated as new submissions subject to payment anew of the applicable fees.
6.3. Criteria for Surveying Companies. Applicants for accreditation must have the following
basic qualifications:
a. Minimum track record of ten (10) continuous years in international bulk and
break-bulk cargo surveying.
b. Member in good and reputable standing of the International Federation of
Inspection Agencies (IFIA).
c. International Office network in all countries of supply to the Philippines as
shown in the updated company profile and organizational structure.
d. Must possess and maintain the basic tools and implements needed in bulk
and break-bulk cargo surveying and must have the competence and capability
to conduct laboratory testing of cargoes for qualitative analysis either using its
own or accredited laboratories.
e. Must be capable of receiving and transmitting electronic instructions from
authorized ship agents, importers or responsible customs officials.
f. Must be able to issue reports and certificates in a secure electronic format.
g. Must not have been blacklisted or its services terminated by any Government
or international entity by final and executory judgement/order in the immediately
preceding three (3) years, on the grounds of poor performance and/or irregularity
in dealings, unless proven otherwise by competent and verifiable evidence as

considered by the CACSC and duly approved by the Commissioner of Customs.
h. Must be able submit a comprehensive Capacity Building Program for the
Bureau of Customs’ official and personnel who will be directly involved in the
implementation of this program.
6.4. Documentary Requirements for Surveying Companies. The following documentary

requirements, among others, shall be submitted before any application for accreditation
shall be processed:
a. Certified copy of Articles of Incorporation or Certificate of Registration;

b. Mayor’s Business Permit;
c. Certified list of not less than twenty (20) regular clients-importers and exporters
for the last three years immediately preceding the application;
d. Certified Copy of its Audited Financial statements submitted to the Securities
and Exchange Commission, Bureau of Internal Revenue or equivalent Office for
the immediately preceding year;
e. Certified and updated list of its Corporate Officers and surveyors;
f. Duly issued Bureau of Internal Revenue Certificate of Registration;
g. Authenticated Copies of the Membership Certificate issued by the International
Federation of Inspection Agencies (IFIA);
i. Certification under oath by a responsible official of the company that it has
not been blacklisted or its services terminated by final judgement/order by any
Government or international entity on the grounds of poor performance and/or
irregularity in dealings in any country immediately preceding three (3) years.
Should there be existing case/s pending against the applicant under the
preceding grounds, a duly consularized certification from the blacklisting and/
or terminating Government or international entity stating that the judgement/
order has not become final and executory and that it is allowed to continue
doing business therein pending the same, shall likewise be submitted;
j. Certification under oath by a responsible official of the company that is has
no pending administrative, civil or criminal cases in any court or venue in the
Philippines; and
k. Such other documents as maybe required by the Commissioner of Customs
and the CACSC.
Internationally recognized and accepted equivalents of the above documents duly no-
tarized by the Philippine Consular office concerned shall be considered acceptable.
The CACSC may employ any and all other means to ascertain the credibility, busi-
ness standing, financial viability and operational capability of applicants, including the
conduct of background investigation by third parties as directed by the Committee.
6.5. Annual Bond Requirement. All accredited cargo surveying companies shall be re-
quired to post an annual cash bond of One Million Pesos (PhP 1,000,000.00) which shall
stand as guarantee/security for any or all violations of the provisions of this Order and the
undertakings as provided herein. The bond shall be constantly maintained at above-stated
amount at any given time during the accreditation period. In cases where amounts are
credited against the bond, it shall be the responsibility of the accredited surveyor to replen-
ish the same within (ten) 10 days from the date of transaction.
6.6. Effectivity of Accreditation. The accreditation of Surveying Companies/Surveyors shall

be effective for a period of three (3) consecutive years, unless sooner revoked for cause.
6.7. Renewal of Accreditation. Applications for renewal of accreditation shall be filed not
earlier than ninety (90) calendar days but not later than thirty (30) calendar days prior to
the date of expiration of accreditation. A late filing fee of ten (10%) percent of the accredi-
tation fee shall be imposed on applications received out of the prescribed period.
6.8. Non-renewal of Suspended/Revoked Accreditations. No application for renewal of

accreditation shall be accepted in cases where the Certificate of Accreditation has been
suspended or revoked for cause during the time it was subsisting, unless subsequently
lifted by the Commissioner of Customs upon the favorable recommendation of the CACSC.
6.9. Binding Effect. All accredited surveying companies and its surveyors are bound by
the provisions of this Order and the implementing Customs Memorandum Order which
shall be issued by the Commissioner of Customs.
7. Miscellaneous Provisions
7.1. Confidentiality Clause. All accredited surveying companies shall submit a Service
Level Undertaking and execute a Non-Disclosure Agreement in favour of and in such form
as required by the Bureau of Customs. All information and/or data obtained by the accred-
ited surveying company and any of its officers and employees in the performance of their
surveying or any other activity incidental thereto shall be treated with utmost confidential-
ity, the unauthorized disclosure of which shall be subject to penalties and sanctions as
determined by the CACSC in accordance with existing laws.
This section shall likewise apply to any BOC official or employee who obtains an
information and/or data by virtue of this CAO or its implementing rules and regulations.
7.2. Violation/Penalties. Any violation of any of the provisions of this Order shall cause the
suspension or revocation of the accreditation of the surveying company as the case may
be after due administrative notice and hearing without prejudice to the filing thereafter of
appropriate administrative, civil or criminal charges against erring cargo surveying compa-
nies/surveyors.
7.3. Sanctions for Bureau of Customs Personnel. In addition to the sanctions imposed
under the TCCP, as amended, and Civil Service laws, rules and regulations, any Bureau of
Customs official and/or employee found to have violated any of the provisions of this Order
shall be immediately relieved and if warranted after due administrative notice and hearing,
be transferred to another office or assigned to a less sensitive position in the Bureau.
7.4. Implementing Rules and Regulations. – The Commissioner of Customs shall issue
the necessary Customs Memorandum Order (CMO) within fifteen (15) days from effectivity
of this Order for the full and effective implementation of the same.
7.5. Separability. – If any portion or provision of this Order shall be deemed invalid and
unconstitutional for any reason, the remaining portions, insofar as they can stand on their
own, shall be given full force and effect.
7.6. Effectivity – This Order shall take effect 15 days after its complete publication in a
newspaper of general circulation.

Commissioner
Approved:
-o0o-
Customs Memorandum Order No. 33-2008
Parameters for the Application of CAO No. 4-2008-A on the Importation

of Resin Through the Customs Bonded Warehouse Scheme
I. OBJECTIVES
A. To effectively implement the provisions of CAO 4-2008-A

B. To assist the Bonded Warehouse Committee (BWC) in the disposition of applications
for authority of Customs Bonded Warehouses (CBWs) to import resin under warehousing
entry
C. To ensure that the interests of the government are amply protected by providing proce-
dures and guidelines in the evaluation of the rationalized application of CAO 4-2008-A
D. To act with dispatch on all applications pertaining to CAO 4-2008-A
II. SCOPE
This Order covers all matters pertaining to the rationalized application of CAO No. 4-
2008-A on the importation of resin through the Customs Bonded Warehouse Scheme.
III. GENERAL PROVISIONS
The following parameters shall be considered in determining who may continue to

import resin through the Customs Bonded Warehousing system:
A. BOI-registered manufacturing companies; or,

B. Industry Specific Customs Bonded Warehouses directly supplying the resin
requirements of their clients involved in the semiconductor/automotive industry; or,
C. Manufacturing Customs Bonded Warehouses or members of Common Bonded Ware-
houses which are registered as exporters by the Export Development Council; or,
D. Such other CBWs established to be legitimate exporters after due consultation with
the BOI, EDC, DTI, PEZA, Freeport Authorities, and other relevant agencies and stake-
holders.
IV. ADMINISTRATIVE PROVISIONS

A. Establishment of BWC-TST
To provide administrative, secretarial and technical support to the Bonded Warehouse

Committee, a BONDED WAREHOUSE COMMITTEE-TECHNICAL SUPPORT TEAM
(BWC-TST) shall be formed by the BWC Chairman which is to be composed by the
Customs officers designated by him. The BWC-TST shall be composed of a Head and
Five (5) Members and shall perform the following functions:
1. Receive and review the completeness of the application indorsed by the District Collec-
tors to the Chairman, Bonded Warehouse Committee;
2. Evaluate the application in panel;
3. Submit its findings/recommendations to the BWC Secretariat for inclusion in the items
for agenda for the regular Meeting/Deliberation of the BWC;
4. Attend in the Regular Meeting/Deliberation of Bonded Warehouse Committee (BWC) if

the matters for deliberation are the subject of this Order;
5. Perform such other functions as may assigned to it by the Chairman, BWC.
B. Documentary requirements for authority to import resin
All applicant CBWs are required to submit the original/certified true copy of the follow-
ing:
1. Prior Disclosure Statement under oath and signed by the President of the Company,
the proprietor or managing partner of the applicant CBW including clients/end-users for
ICBW, such as locators of freeports and economic zones, among others, or members for
Common Bonded Warehouse in the prescribed form provided in Annex “A” hereof:
2. Certification of registration, whichever is applicable, from the following offices:
- Bureau of Investments (BOI)

- Export Development Council (EDC)
- Department of Trade and Industry (DTI)
- Philippine Economic Zone Authority (PEZA)
- Freeport Authorities
- Other relevant agencies and stakeholders.
V. OPERATIONAL PROVISION
A. Application for authority of CBWs to import resin under warehousing entry shall be filed
with the District Collector concerned who shall act thereon within five (5) working days.
Upon initial evaluation of the application, the District Collector shall indorse the same to
the Chairman, BWC, whether favorable or not, stating his definite official position thereon.
B. After receipt of the subject application from the District Collector, the Chairman, BWC
shall forward the same to the Head, BWC-TST for evaluation. The Head, BWC-TST shall
confirm the completeness of the submitted subject application and thereafter, shall sched-
ule the same for panel discussion/evaluation. The BWC-TST shall submit its findings/
recommendations or evaluation report together with all pertinent documents within five (5)
working days from receipt of said application to the BWC Secretariat for inclusion to the
agenda of the regular meeting of the BWC.
C. Upon approval of the application by the BWC, the copy of the resolution of the BWC
signed by the Chairman, BWC shall be endorsed to the Office of the Commissioner for
clearance. In case of disapproval, a Notice of Disapproval clearly stating the grounds
therefore shall be signed and served to the applicant, copy furnished the District Collector.
D. Upon proper clearance from the Office of the Commissioner, the Chairman, BWC shall
endorse the subject Resolution of the BWC to the concerned District Collector for imple-
mentation
VI. REPEALING CLAUSE
All Customs Orders, Memoranda, Circulars or parts thereof which are inconsistent
with this Order are deemed superseded and/or modified accordingly.
VII. EFFECTIVITY
This Order shall take effect immediately.

Commissioner
-o0o-
Re: Accreditation of Information Validation Service Provider (IVSP)

For Integration into BOC’S Client Profile Registration System (CPRS)
By authority of Section 608 of the Tariff and Customs Code of the Philippines, as
amended, in relation to Section 602 thereof defining the general duties, powers and juris-
dictions of the Bureau of Customs and in line with the e-Customs Project, the following
rules and regulations are hereby promulgated:
1. OBJECTIVES
1.1 To provide efficient and reliable service to the trading community through Customs-
Business Partnership (CBP) by engaging the services of an IVSP to validate and organize
information disclosed by applicants in support of the following needs of BOC:
a. More accurate and reliable information;

b. Stronger accountability of stakeholders to disclose correct information to
BOC; and
c. Improved capability to assess compliance risk.
1.2 To ensure that information disclosed and documents submitted to BOC by applicants
are validated and BOC’s stakeholders are properly identified.
1.3 To enable BOC to use and manage data necessary for input compliance, risk man-
agement and accreditation of stakeholders; and
1.4 To support the enhancement of accreditation procedures for BOC stakeholders.
2. SCOPE OF SERVICES
The Commissioner of Customs shall prepare the Terms of Reference defining the
scope of services to be outsourced to the accredited IVSP which shall include the follow-
ing:
2.1. Design and implement an Information Validation System (IVS) which includes the
development of an Information Validation Report (IVR);
2.2. Develop and implement procedures for the validation of client profile information;
2.3. Develop a Client Risk Assessment System (CRAS)
2.4. Develop a database to be used by BOC in periodic risk assessments on subject

importers/clients/stakeholders;
2.5. Perform such other services required by the BOC.
3. ADMINISTRATIVE PROVISIONS
3.1. Accreditation of IVSP
3.1.1.IVSP Accreditation Committee (IAC)
The IVSP Accreditation Committee (IAC) created by the BOC shall perform
the following:
a. Facilitate and fast-track the accreditation process to minimize the impact of

the outsourcing activity.
b. Recommend relevant policies, responsibilities and liabilities of IVSP, rules

and processes related to all issues surrounding the accreditation of IVSP.
c. Recommend evaluation criteria and business model for accreditation of IVSP

for approval of the Commissioner of Customs.
3.1.2.Accreditation Criteria
The IAC shall observe the published accreditation criteria and shall recommend any
amendments thereto to the Commissioner for approval.
3.1.3.Accreditation Process
a. Through the IAC, BOC shall publish an invitation for accreditation from IVSP
companies. This invitation includes the Eligibility Requirements.
b. A non—refundable processing fee in the amount of Fifty Thousand Pesos

(P50,000.00) shall be imposed.
c. Pre-qualified IVSPs shall submit their technical and financial proposals.
d. BOC shall organize a Quality Assurance Team, composed of technical experts

from MISTG who will determine the compliance of the candidate company to
the system requirements. The testing shall also include, among others, checks
for user-friendliness of the system.
e. After the conduct of test and site visits, BOC shall identify not more than
three (3) pre-qualified to be accredited IVSP.
f. The IAC shall review and evaluate the documents submitted by the candidate
companies that pass the eligibility requirements and qualified to proceed to the
next stage of the process.
g. BOC shall pre-qualify IVSP Candidates.
h. BOC shall release to pre-qualified IVSPs the Terms of Reference (TOR) and
the Non Disclosure Understanding which will be signed by their authorized
officials.
i. BOC shall select and accredit not more than three (3) IVSPs.
3.1.4.Conditions for Accreditation
a. SLU and NDU
The selected IVSP shall sign a Service Level Undertaking (SLU) and a
Non-Disclosure Undertaking (NDU).
b. Performance bonds
The accredited IVSP shall post a Performance Bond, issued by a BOC-

accredited surety company, amounting to Ten Million Pesos (PhP 10M), which
shall be forfeited in favor of BOC in the event it is established that the accredited
IVSP is in default of any of its obligations.
c. Probationary period
The accredited IVSP shall undergo a six (6)-month probationary period

(technical evaluation) after which the BOC shall decide whether or not it will
grant full accreditation status to the IVSP.
d. Technical Acceptance Tests
The accredited IVSP must successfully pass the technical acceptance test (In-
cluding systems Integration, data security and integrity, communications, and performance)
that will be conducted by the Management Information Systems and Technology Group of
the BOC for the initial, the post probationary and the yearly technical evaluation and valida-
tion, to qualify for continuous accreditation.
e. Period and renewal of Accreditation
The selected IVSP shall be given accreditation status for a period of three (3)
consecutive years, inclusive of the probationary period, and will be renewable yearly there-
after subject to the evaluation of the quality of their performance as measured by the
Service Level Undertaking (SLU), and compliance to Eligibility requirements.
f. Accreditation and Renewal Fees
A one time accreditation fee of PhP 300,000.00 good for three (3) years and a yearly
renewal fee of PhP 100,000.00 thereafter, shall be imposed.
g. Further Accreditation Process
BOC may carry out further accreditation processes after three (3) years of operation
of the initially accredited IVSP.
h. Schedule of Fees Payable to IVSP by the transacting public
The IVSP will determine its respective fee structures based on several factors such
as market conditions and systems sustainability requirements, among others, which shall
be submitted in the financial proposal. The schedule of fees as proposed shall be one of
the bases for accreditation and shall not be increased without the prior approval by the
BOC and the Department of Finance. The BOC shall not collect those fees in behalf of the
IVSP.
i. Pre-termination
BOC may pre-terminate its Agreement with the accredited IVSP for any of the
following:
- Violation of the provisions of this Order and related rules and regulations,
including SLU and NDU.
- Violation of the Tariff and Customs Code of the Philippines, e-Commerce Act
and other related laws.
- Actions inimical to the security and integrity of the BOC e-Customs

operations.
- Other violations as may be determined by the Commissioner of BOC.
j. Reservation to Change Accreditation Criteria
BOC reserves the right to change any of the accreditation criteria as may be deemed
necessary by the Commissioner.
4. ADDITIONAL GUIDELINES
The Commissioner of Customs is hereby authorized to issue guidelines for the

effective, efficient and appropriate implementation of all initiatives to establish and operate
the IVSP.
5. REPEALING CLAUSE
All Orders, memoranda, circulars and such other issuances inconsistent herewith
are hereby repealed and/or deemed modified accordingly.
6. SEPARABILITY CLAUSE
If any part or provision of this Order is later on declared invalid or illegal, the remaining
portion shall remain valid and unaffected.
7. EFFECTIVITY CLAUSE
This Order shall take effect fifteen (15) days after publication in general newspaper
of circulation.


Commissioner
Approved:

Secretary
-o0o-
Requiring Electronic Lodgment of Goods Declarations and Imposing

Administrative Sanctions for Non-Compliance with the Requirement
1. OBJECTIVES:
1.1 To require electronic lodgment of goods declarations using the Value-Added Service
Providers (VASPs) and impose administrative sanctions for non-compliance with such
requirement
1.2 To enhance monitoring of imported shipments and the accuracy of data generated
thereby.
2. SCOPE:
2.1 This Order shall cover all kinds of goods declarations for imports, exports, transship-
ment, transit and such other transactions covered by the E2M Automation Project of the
Bureau of Customs (BOC).
2.2 This Order, however shall be implemented in phases and initially apply to formal
entries including consumption and warehousing entries.
3. GENERAL PROVISIONS:
3.1 The manual processing of import entries/transshipments is not allowed, except in the
following instances:
3.1.1.computer systems breakdown;

3.1.2.power failure which renders the computer system non-operational; and
3.1.3 in other instances not covered by the foregoing but authorized under
paragraph 3.2 hereof.
3.2 In any event, the application for the manual processing of entries for all shipments,
including transshipments, in order to be authorized and manually processed, shall have to
be accompanied by a favorable recommendation from the Office of the District Collector
concerned; concurrence by the Office of the Deputy Commissioner, Management Informa-
tion System and Technology Group (MISTG); and a CLEARANCE from the Office of the
Commissioner. No shipment shall be manually processed and released without undergo-

ing the aforementioned procedure.
3.3 Shipments manually processed shall still be electronically lodged as soon as practi-
cable. For this purpose, the Deputy Commissioner for MISTG shall, together with VASPs,
design a system to make this possible soon. Until such system is in place, the District
Collector shall submit a report on manually processed goods declarations within five (5)
days from the date of manual processing processed to the Deputy Commissioner, MISTG,
and the Office of the Commissioner.
4. ADMINISTRATIVE SANCTIONS
4.1 The importer and customs broker concerned shall see to it that the electronic lodg-
ment of the manually processed import declaration is done as soon as practicable. Oth-
erwise, failure to comply with such electronic lodgment is a ground for suspension of
accreditation with the BOC.
4.2 The District Collector; Deputy Collector; Chief, Formal Entry Division/Warehouse As-
sessment Division; Chief, Collection Division; Chief, Entry Processing Unit; examiners,
principal examiners/appraisers of FED/WAD and all other concerned Customs personnel
shall be responsible for the strict enforcement of this Order and be held administratively
liable in case of breach hereof.
5. IMPLEMENTING RULES AND REGULATIONS
The Commissioner of Customs is hereby authorized to issue a Customs Memoran-

dum Order for the effective implementation of this Order.
6. REPEALING CLAUSE:
All orders and issuances inconsistent herewith are hereby deemed automatically re-
voked.
7. EFFECTIVITY:
This Order shall take effect fifteen (15) days after publication in two (2) newspapers of
general circulation.
Commissioner
Approved:

Secretary, Department of Finance
-o0o-
Procedure for the Bulk and Break Bulk Cargo

Clearance Enhancement Program
Pursuant to Sections 1402, 1403, and in relation to Section 608 of the Tariff and
Customs Code of the Philippines (TCCP), as amended, and CAO 6-2008, the following
rules are hereby promulgated.
Section 1. Definition of Terms
1.1 Accredited Cargo Surveying Company - A surveying company possessing a duly

approved accreditation issued by the Bureau of Customs.
1.2 IFIA -Shall refer to the International Federation of Inspection Agencies.
1.3 Committee for Accreditation of Cargo Surveying Companies (CACSC) – A Committee

of Bureau of Customs (BoC) Officers tasked and authorized to grant and approve accredi-
tation of cargo surveying companies and periodically review the performance thereof. CACSC
may also investigate violations of the provisions of this Order and thereafter recommend
suspension and/or revocation of accreditations to the Commissioner of Customs, if needed.
1.4 Bulk Cargo – Refers to cargoes in a mass of one commodity not packaged, bundled,
bottled or otherwise packed.
1.5 Break-Bulk Cargo – Refers to non-containerized general cargo stored in boxes, bales,
pallet or other individual units to be loaded onto or discharged from vessels, not shipped in
containers or in bulk.
1.6 Load Port Survey Report - A report issued by an Accredited Surveying Company for
Break/Break-Bulk Cargo to be imported into the Philippines. The report shall be submitted
to the BoC directly from the Accredited Surveying Company in secure electronic format.
1.7 Customs Survey Inspectors (CSI) – Organic employees and officers of the Bureau of
Customs with special qualifications and technical training in cargo inspection and survey-
ing and capable of rendering reliable and efficient survey reports relative to the same.
Section 2. Accreditation of Surveying Companies
All cargo surveying companies engaged in the business of cargo surveying who wish
to be accredited must apply for and receive accreditation from the Committee for Accredi-
tation of Cargo Surveying Companies (CACSC).
2.1 Procedure for Accreditation of Surveying Companies.
2.1.1. Application. A surveying company wishing to apply for accreditation

shall accomplish the Application Form using the attached Form. A Service
Level Undertaking/Non-Disclosure Agreement following the attached form hereof
shall be submitted by the Surveying Company as part of the requirements for

the approval of the application. The complete application together with all the
documentary requirements including a non-refundable application fee of
PHP50,000 shall be submitted to the CACSC through the Port Operation Service
(POS).
2.1.2.Acceptance. The POS shall then make a preliminary determination as

to the completeness of the application and the full payment of the application
fee.
2.1.3.Physical Evaluation. The POS may conduct a physical inspection of the

assets and an actual evaluation of the operations of the applicant if it deems it
necessary before submitting its recommendation to CACSC.
2.1.4.Calendar. Upon the direction of the Chairman of the CACSC, the POS
Secretariat shall calendar the meeting and issue the necessary notices to all
members and interested parties. The CACSC shall evaluate and deliberate on
the application and shall issue a Decision in writing approving or denying the
application, stating the reason and area of non-compliance in case of denial.
2.1.5.Decision. The Committee shall inform the applicant in writing of the

approval of its application and shall require the applicant to pay the necessary
one time accreditation fee of PHP200,000.00 within fifteen (15) days from the
receipt of such approval together with a Cash Bond in an amount of
PHP1,000,000.00 in accordance with the attached form. Applicants may re-
submit denied applications which shall be treated as a new application subject
to the payment of the processing fee.
2.1.6.Right of Appeal. Any surveyor which having completed an application to

be accredited as a bulk or break bulk cargo surveying company under the
provisions of CAO 6-2008 and whose application for accreditation is rejected
by the CACSC shall have the right of appeal to the Secretary of Finance within
fifteen (15) days from receipt of the notice. It shall be fundamental to such
appeal and the burden of the surveyor to demonstrate that it has satisfied the
criteria for accreditation as specified in Article 6.3 (a) to (h) of CAO 6-2008.
2.1.7.Accreditation Certificate. Upon payment of the accreditation fee, the

applicant shall be issued an Accreditation Certificate, indicating therein the
Official Receipt Number and the period of validity of such accreditation.
The CACSC shall meet as necessary when there are applications submitted for
evaluation or when the Chairman or Commissioner of Customs require such to meet to
deliberate on issues concerning the Bulk and Break-Bulk Cargo Clearance Enhancement
Program. In any event, it shall be the responsibility of the POS Secretariat to issue
notices of meetings and prepare the agenda therefor.
2.2 Requirements for Application.The applicant must demonstrate capability and neces-
sary experience for at least ten (10) continuous years to undertake the survey of Bulk/
Break-Bulk Cargo in accordance with requisite international standards. Accredited Sur-
veying Companies demonstrating requisite skills to undertake the program shall commit,
during the period of their accreditation, to an ongoing training and audit program for staff
and officers actively involved in surveying activities for the Philippines.
2.3 Schedule of Charges and Fees. The surveying activities pursuant to this Order shall
entail no cost or charge to the government of the Republic of the Philippines.
For additional services to the Bureau of Customs, the Accredited Surveying Company
shall be allowed to charge a fee in accordance with international standards and practices
but in no case to exceed one-half of one percent (0.5%) of the FOB value of the cargo.
This fee shall be payable by the exporter, unless otherwise agreed upon by and between
the importer and exporter.
Section 3. Categories of Goods. – The following categories of goods shall be covered

by the CAO.
a. Liquids
b. Chemicals
c. Petroleum Products
d. Dry Cargo
e. All other Cargo shipped in Bulk/Break-Bulk, e.g. wood, steel.
Section 4. Load Port Survey Report. – The Port Load Survey Report to be issued by
the Accredited Surveying Company after a full survey of quantity and quality of the Bulk/
Break-Bulk Cargo should detail, but not be limited to the following:
a. Quantity of the consignment;

b. Quality of the consignment;
c. Port of Loading;
d. Name of Vessel;
e. Estimated time of departure from Port of Loading; and
f. Bill of Lading Number/s;
g. Surveyor’s Seal details;
h. Such additional testing results as may be required by the Bureau of Customs
necessary in determining the value, tariff classification and/or assessment of
shipments covered by this Order.
4.1 Submission of the Load Port Survey Report – The Load Port Survey Report must be
received by the BoC at least twelve (12) hours before the arrival of the cargo in the Philip-
pines and shall be transmitted to the Management Information and System Technology
Group (MISTG) of the Bureau of Customs and in accordance with the dissemination list
under 4.2 of CAO 6-2008. It must be submitted in a secure electronic format with security
features in the form of a hologram, micro-print, encrypted grid or equivalent.
MISTG shall be the official repository of all survey data under this program.
To facilitate the processing of survey data, Accredited Surveying Companies are re-
quired to provide hardware/software as part of the Capacity Building Program for the exclu-
sive use of Bulk and Break Bulk Cargo Enhancement Program.
4.2 Distribution - The following offices shall be given electronic copies of the Load Port
Survey by MISTG:
1. Office of the Commissioner

2. Deputy Commissioner for Assessment and Operations Group
3. Deputy Commissioner for Intelligence and Enforcement
4. Post Entry Audit Group
5. Directors, POS, ESS, CIIS
6. Executive Director, CSI
7. Port/District Collector where the shipment Import Entries are to be made.
4.3 Use of Load Port Survey Report - The importer may use the Load Port Survey Report
to avail of the advance clearance procedure. The Load Port Survey Report and findings of
Accredited Surveying Companies shall be used by the BoC Examiners/Appraisers in the
determination of dutiable weight, volume, description, value and tariff classification of im-
ported articles, without prejudice to actual verification as the need arises.
4.4 Advance Clearance Procedure.- Any importer obtaining the services of an accredited
cargo surveying company pursuant to the preceding Section shall be allowed to file entries
for the imported articles and pay the proper duties, taxes, and other fees therefor, prior to
its arrival in the Philippine port of destination, Provided that:
a. The entry contains a full and true statement of all the articles which are the
subject of the importation;
b. The invoice and entry contain a just and faithful account of the actual cost of
said articles, including and specifying the cost of insurance and freight and
other necessary charges, and that nothing has been omitted therefrom or
concealed to the detriment of the proper collection of revenue by the Government;
c. The invoice and all bills of lading relating to the articles are the only ones in
existence relating to the importation in question;
d. The entry, invoice and bill of lading, and the declaration thereon are in all
respects genuine and true, and were made by the person by whom the same
purportedly has been made.
As soon as the cargo arrives at the Philippine port of destination, the importer may
immediately cause the discharge and withdrawal of the same from customs premises
and/or custody provided that the declarations in the import entries are confirmed by the
Load Port Survey Report and upon presentation of the proof of payment of duties, taxes
and other fees as well as compliance within other pre-requisites for a valid importation.
In addition, upon prior consultation with the concerned private sector/s, CACSC may
recommend to the Commissioner of Customs other benefits under this program that maybe
granted to compliant importers with the framework of the Tariff and Customs Code of the
Philippines as amended (TCCP.)
Section 5. Committee for Accreditation of Cargo Surveying Companies (CACSC)

5.1 Approval and/or Denial of Accreditation – The CACSC may grant or deny any applica-
tion for accreditation on the basis of the evaluation of the documents and other require-
ments submitted by the applicant.
5.2 Performance Review – There shall be an annual performance review conducted on the
Accredited Surveying Companies to determine if they continue to satisfy the criteria as
provided for by CAO 6-2008. Should there be findings of poor performance or negligence,
it shall recommend the suspension and/or revocation of the accreditation to the Commis-
sioner of Customs, if deemed necessary.
5.3 Investigation – The CACSC may at any time, during the subsistence of the accredita-
tion, investigate violations of the provisions of this Order; and for this purpose, shall employ
all means necessary to ascertain and establish pertinent facts that will aid it in recom-
mending appropriate sanctions of suspension and/or revocation of accreditation as the
case may be.
5.4 Appeal of Suspension and Revocation – Any suspension or revocation imposed by the
Commissioner of Customs on an Accredited Surveying Company may be appealed to the
Secretary of the Department of Finance within fifteen (15) days from official receipt thereof.
5.5 Internal Rules. The CACSC is hereby authorized to draft its own internal rules of
procedure subject to the approval of the majority of all its members voting for the purpose.
Section 6. Actions Before the Department from Port of Origin
6.1 Responsibilities of the Importer – The importer must inform his exporter of the require-
ments of the Customs Administrative Order on Bulk/Break-Bulk Cargo Surveying (CAO)
and shall ensure that the cargoes are surveyed by an Accredited Surveying Company. It is
the responsibility of the importer of bulk and break bulk cargo to obtain from the Bureau of
Customs the names and overseas addresses of Accredited Cargo Surveying Companies
and to communicate this information to the seller/exporter of the goods.
6.2 Responsibilities of the Exporter – The exporter must contact the nearest office of the
Accredited Surveying Company selected by him to register his cargo falling under the
coverage of CAO 6-2008 and provide a full description, technical specification and quantity
of the cargo.
The exporter must advise the selected Accredited Surveying Company of the where-
abouts and availability of the cargo at least three (3) working days prior to the required date
of survey. The exporter must present the goods in a manner to allow a full survey to be
conducted. They must arrange and allow full access to the representative (surveyor) of the
Accredited Surveying Company to allow a full survey to be conducted and submit com-
plete copies of the final invoices to the Accredited Surveying Companies.
6.3 Responsibilities of the Accredited Surveying Company – The Accredited Survey-

ing Company must make available to all interested parties the requirements of CAO 6-
2008 and addresses of offices/representatives in each country of supply. They must ar-
range to survey the cargo within three (3) working days of receipt of the request to survey
from the exporter. They must complete the survey and seal the holds where necessary
prior to the vessel sailing and issue the Load Port Survey Report prior to the arrival of the
shipment in the Philippines within the prescribed period.
The Accredited Surveying Company must issue/transmit the Load Port Survey Report
in and secure electronic format to the MISTG, the exporter and the importer.
Capacity Building programs for BoC personnel in the form of technical training and
continuing education in cargo surveying techniques shall be provided by the Accredited
Surveying Company up to twice per year either in a Philippine or International forum. To
declare the commitment of accredited surveyors to the Capacity Building Program for
cargo surveying, a Capacity Building Undertaking Form is hereby required from all accred-
ited surveyors.
6.4 Responsibilities of the Port Collector of Customs – The Port Collector shall cause the
utilization of the Load Port Survey Report issued by an Accredited Surveying Company as
an integral part of the documentation required for the clearance of Bulk/Break-Bulk Cargo
in the determination of dutiable weight, volume, description, value and tariff classification of
imported articles, without prejudice to an actual verification as it may be deemed proper.
Section 7. High Risk Shipments. – Bulk and break-bulk shipments not covered by a
Survey Report from any of the Accredited Surveying Company shall be considered as high
risk shipments. As such, they shall be subjected to extensive actual physical examina-
tion and surveyed by the Customs Survey Inspectors (CSI).
For Customs control purposes, high risk shipments shall not be granted permits to
discharge and shall remain under continuous customs underguarding until full payment of
the correct duties and taxes have been made.
For all intents and purposes, the survey report issued by CSI shall have the same
probative value as that of a Port Load Survey issued by an Accredited Surveying Company.
Section 8. - Funding and Overtime Services. All administrative costs and expenses
in the accreditation process and field operations of CSI shall be chargeable against sav-
ings of the Bureau of Customs. For actual services rendered outside the regular working
hours, the POS and CACSC shall be entitled to claim overtime services subject to the
availability of funds and the usual rules and regulations on overtime services.
For services actually rendered outside regular working hours, CSI is hereby autho-
rized to claim overtime services against the importer and/or the owner of the cargo under
high risk survey subject to the usual rules and regulations on overtime services.
Section 9. Forms – Subject to revisions as recommended by CACSC, the following
Forms*, samples of which are appended hereto, are mandated to be used under this
program.
1. Form A - Application of Accreditation as a Bulk and Break-Bulk Cargo Surveyor.

2. Form B - Certificate of Accreditation
3. Form C - Performance Bond
4. Form D - Undertaking to Provide Annual Capacity Building
5. Form E - Undertaking of Confidentiality
6. Form F - Statement on No Pending Case

7. Form G - Statement on Blacklisting/Termination
8. Form H - Certification of Pending Blacklisting/Termination
9. Form I - List of Surveyors and their Expertise
10. Form J - Certified List of Clients for the past 3 years
11. Form K - Service Level Undertaking
Section 10. Transitory Provisions – All Bulk and/or Break Bulk shipments bound for
the Philippines having Bills of Lading (BL) dated December 1, 2008 and onwards shall
already be covered by this Order; except, when no Surveying Company shall have applied
for accreditation by November 15, 2008 or should all applications remain pending for evalu-
ation of the CACSC at that time, in which case, the coverage shall be imposed on Bills of
Lading dated fifteen (15) days after the issuance of the Certificate of Accreditation by
CACSC to at least one Surveying Company.
During this transitory period, the CSI Team/s, shall commence conducting cargo sur-
vey on bulk and break bulk shipments at random but which shall not be charged upon the
importers for the cost thereof; Provided however, that beginning January 1, 2009 or upon
full implementation of this Order pursuant to the preceding paragraph, all expenses in-
curred by the CSI Team/s shall be charged to the account of the importers and/or repre-
sentative acting for and/or on its behalf.
Guided by the principle of economy, efficiency and integrity and subject to the ap-
proval of the Commissioner of Customs, CACSC may recommend additional measures to
ensure the prompt and efficient and complete implementation of this Order.
Section 11. Suppletory Clause. – The e-Commerce law and its implementing regula-
tions, other Customs Laws, Rules and Regulations shall have suppletory effect on this
Order.
Section 12. Separability Clause – In the event that any legislation, governmental regu-
lation or court decision causes invalidation of any part, article or section of this issuance,
all other parts, articles and sections not so invalidated shall remain in full force and effect.
Section 13. Effectivity. – This Order shall take effect immediately.
Commissioner
-o0o-
Interim Enhanced Cargo Transfer System for Transit Goods

Consigned to Freeport Zone Locators, which Are Discharged at Ports
and Airports with Operating E2M Customs System and with Subic and
Clark Freeport Zones as Final Destinations
I. Objectives
To immediately contribute to the simplification, harmonization and improved security

effectiveness of Customs procedures for transit-cargoes destined for the Subic and Clark
Freeport Zones, as well as help promote the other objectives of the Joint Memorandum
Order (JMO) of the Bureau of Customs, Subic Bay Metropolitan Authority and Clark Devel-
opment Corporation dated 21 August 2008.
II. Coverage
This Order shall apply to the interim system which will govern transfer of the above-
mentioned subject importations until implementation of the harmonized Admission/Import
Permit (A/P) and Transit Declaration System provided in the BOC-SBMA-CDC JMO dated
21 August 2008.
III. General Provisions
1. Transit Cargo Transfer Documentary Requirements
1.1 Import Entry and Internal Revenue Declaration with Model of Declaration 8-
8 (Transit), duly accomplished and supported by the Bill of Lading/Airway Bill,
Invoice, Packing List and Freeport Zone Admission Document/Import Permit
(print-outs of Section 2.2 below). These required documents shall be in lieu of
the Warehousing Entry, Transshipment Permit (BOC Form 199), Transit Cargo
Manifest, Boat Note and other documents required under other Customs Orders.
A license, authorization, clearance or permit issued by the designated
government regulatory office must also be provided, following established
procedures, for any regulated or controlled commodity included in an importation.
The documents required herein must be presented to the Customs Freeport
Zone Office (CFZO) as provided in Section 3.
1.2 General Transportation Surety Bond (GTSB), one for every port of discharge
of transit goods, issued by a Customs-accredited surety company, to guarantee
the direct and faithful delivery of transit goods to the locator’s premises at the
Freeport Zone destination, as stated in the Transit-Declaration. Posting of the
GTSB shall not be required per transit cargo discharged. It is sufficient that a
GTSB is registered with the Bureau’s Bonds Division or equivalent office in the
port of discharge of the transit goods and that the GTSB conforms to with the
following:
1.2.1 The face value amount of the GTSB to be posted by a Freeport Zone
locator, in a port of discharge of transit cargoes consigned to it, shall be computed
as follows:
Total duties and taxes due on all transit

cargoes discharged in the port during the
last 3 months of the current year
Amount of GTSB _________________________________
in a port of = 3 x 91 or 92 days in the last 3 months
discharge
1.2.2 Required GTSBs must be registered with the Bureau’s Bonds Division in
each of the ports and airports where transit-goods of a Freeport Zone locator
are discharged. Certified true copies of the GTSBs must also be presented to
the Freeport Zone Authority of the locator enterprise to enable the Authority to
perform the function stated in Section IV. 2.4
1.2.3 The District Collector of the port of discharge shall have the authority to
require an increase in the amount of the GTSB posted by a Freeport Zone
locator where the value of the current transit-cargoes and corresponding taxes
and duties due to the cargoes discharged at the port have significantly increased
beyond the level during the last 3 months of the current year, which levels used
the determination of the existing GTB posted by the Freeport Zone locator.
2. Required Electronic Submissions
2.1 Freeport Zone locators and/or their authorized representatives shall lodge
applications for Transit-Declaration described above, via the internet and through
BOC-accredited Value Added Service Providers (VASPs) using the Phase 1,
E2m Customs Single Administrative Document (PSAD).
2.2 BOC-accredited VASPs shall provide the front-end system which Freeport
Zone locators shall use to electronically lodge Transit-Declaration applications
and which will allow Freeport Zone locators to print the Transit-Declaration
application with the Assessment Notice, after registration of the Transit-
Declaration application with ACOS.
2.3 VASPs accredited by Free-Port Zone Authorities shall provide the front-end
Systems, which Free Zone locators shall use to electronically encode and
lodge A/IP applications and which CFZO officials shall use to authenticate A/
IPs submitted with the Transit-Declaration.
2.4 Freeport Zone Authorities and BOC shall operate and maintain the back-
end systems and databases for processing A/IP and Transit-Declaration
applications, respectively.
3. A CFZO shall be established in each port of discharge where this Order shall be
implemented, which will initially include the Ninoy Aquino International Airport (NAIA), Port
of Manila (POM) and the Manila International Container Port (MICP). CFZOs shall be
established in other ports of discharge of transit-goods consigned to Subic and Clark
Freeport Zone locators, when required.
3.1 CFZOs, which shall be headed by designated senior BOC Officials and
manned by BOC officials and personnel, shall be under the direct supervision
and control of the BOC Deputy Collectors for Operations of the ports of discharge,
who shall be responsible for the efficient and effective monitoring and accounting
of all transit-cargoes released and transferred to their Freeport Zone destination.
3.2 CFZOs shall be responsible for processing Transit-Declarations

applications and for releasing transit-cargoes from the ports of discharge and
monitoring their direct and faithful transfer to Freeport Zone destination.
4. Physical examination of transit-cargoes at the port of discharge shall follow an Auto-

mated Risk Management and Selectivity Program (ARMSP) to be set up and operated for
the purpose. Physical examination may also be undertaken on a transit-cargo where there
are derogatory information received from competent authorities, in which case an authority
to undertake physical examination must be obtained from BOC Officers authorized to
issue Hold and Alerts under existing Orders.
5. Freeport Zone locators shall pay the BOC Cargo Transfer Fee (CTF) for every transit-
cargo processed and released from the port of discharge using Pre-Payment Accounts for
BOC Transfer Fees they shall establish and maintain in banks accredited by the BOC for
the purpose.
IV. Administrative Provisions
1. Freeport Zone locators shall register their authorized representatives with Freeport Zone
Authorities and provide them with appropriate ID cards and written authorizations to act
and sign official documents for and in their behalf.
2. Freeport Zone locators shall enroll with the Freeport Zone Authorities and accredited
VASPs mobile phones and/or e-mail addresses which will receive system-generated text
and/or e-mail messages on A/IP applications lodged in their names.
2.1 Payment of the Processing Fee for an A/IP application lodged through a
Freeport Zone Authority-accredited VASP will trigger the sending of a system-
generated e-mail and/or SMS message to e-mail addresses and/or mobile
phones enrolled by the Freeport Zone locator with the VASP.
2.2 A Freeport Zone locator should immediately inform the Freeport Zone
Authority of any unauthorized application for an A/IP, upon receipt of an e-mail
and/or SMS message indicating lodgment of an A/IP application which has not
been authorized. Denial by a Freeport Zone locator of ownership of a transit-
cargo attributed to it shall cause the immediate issuance of a Hold and Alert
Order on the transit-cargo.
2.3 A Freeport Zone locator who fails to inform the Freeport Zone Authority
that it is not the owner of transit-cargo attributed to it in an A/IP application
shall be deemed the owner of the transit-cargo and shall be subject to penalties
which may be imposed in case the transit-cargo is found to be in violation of
rules and regulations of the BOC and/or Freeport Zone Authority and other
laws.
2.4 Upon full operation of real-time scanning facilities of A/IP Barcodes, which
will confirm delivery of the transit-cargoes to Free-Port Zone destinations,
Freeport Zone Authorities shall advise the BOC to discontinue under-guarding
of transit-cargoes during transfer from the ports of discharge to their Freeport
Zone destinations, provided that Freeport Zone Authorities shall allow Freeport
Zone locators to use the Enhanced Automated Cargo Transfer System only
where they have posted the required GTSBs and registered them with the BOC
Bonds Division in the ports of discharge of their transit cargoes.
2.5 The Office of the Deputy Collector for Operations of every port of discharge
shall regularly audit transfers to ensure that all transit-cargoes are delivered to
their Freeport Zone destinations within a reasonable time after release and that
no goods are diverted into the customs territory during the transfer process, to
protect government interests.
V. Operational Provision
1. Issuance of Admissions/Import Permits
Submission and processing of AIP applications shall be through the system of and
following the procedure prescribed by the Freeport Zone Authority.
2. Lodgment of Transit-Declaration Applications
Freeport Zone locators shall lodge Transit-Declaration applications through BOC-ac-

credited VASPs and print Transit-Declaration and Assessment Notices with the system-
generated Customs Reference Numbers, which will confirm full completion of lodgment.
3. CFZO Processing of Transit-Declaration Applications
Upon presentation by a Freeport Zone locator or its authorized representative of a

Transit-Declaration application and the required supporting documents, among which is
the approved A/IP issued by the Freeport Zone Authority, the CFZO shall undertake the
following:
3.1 Receive and check completeness of the approved A/IP, Transit-Declaration

application and required supporting documents submitted;
3.2 Validate the A/IP presented using by scanning the Barcode of the A/IP
and comparing the particulars of the A/IP (hard copy) presented and the
particulars of the A/IP which appears in the computer monitor in the CFZO
workstation connected to the A/IP System of the Freeport Zone Authority.
3.3 Validate the Transit-Declaration application with the ACOS system by

using the system-generated Customs Reference Number printed on the Transit-
Declaration application to retrieve the electronic SAD and visually comparing
the hard copy of the Transit-Declaration presented to it.
3.4 Undertake ACOS processing of the Transit-Declaration application,

including Manifest write-off processing, if the port of discharge has no operating
electronic Manifest Clearance System.
3.5 Check for any Alert or Hold Order issued on the transit-cargo, pursuant to
CMO 104-92 and, in the presence of one, and notify the order-issuing office in
order that appropriate action can be undertaken.
3.6 Present the Transit-Declaration to the Head of the CFZO for approval of
the Release Clearance for the transit cargo, where no Alert or Hold Order is
found to have been issued or where physical examination, conducted on the
basis of an Alert or Hold Order or derogatory information received, proves that
the transit-cargo is compliant with customs rules and regulations and other
existing laws.
3.7 Head of the CFZO approves Release Clearance by signing in the Delivery
Box of the Transit-Declaration.
3.8 Forward the signed Transit-Declaration to the Warehouse/Arrastre Operator

for release of the transit-cargo.
4. Release of the Transit Cargo
4.1 The Customs Warehouseman or Wharfinger in the Customs Public

Warehouse/ Container Yard-Customs Freight Station (CY-CFS) shall check
and verify the identity of the person who will receive the transit-cargo upon its
release to ensure that the transit cargo is released to the Freeport Zone locator’s
duly authorized representatives.
4.2 The Customs Warehouseman or Wharfinger in the Customs Public

Warehouse/Container Yard-Customs Freight Stations (CY-CFS) shall check
the number of packages, weight and markings on the package of loose transit-
cargo and make sure that these match the particulars in the Transit-Declaration.
Where they differ, the Customs Warehouseman or Wharfinger shall submit an Irregu-
larity Report to the Deputy Collector for Operations, who shall cause the same to be
subject of examination. Upon clearance from the Deputy Collector for Operations, the
Customs Warehouseman or Wharfinger shall supervise loading of the transit-cargo on the
carrier.
4.3 The Customs Warehouseman or Wharfinger shall attach numbered seal,

to be provided by the Customs Public Warehouse/ CY-CFS Operator, on the
back door of the container van or other carrier, prior to the release of the transit-
cargo for transfer to its Freeport Zone destination.
5. Delivery of the Transit-Cargo to its Freeport Destination
5.1 The authorized representative of the Freeport Zone locator shall receive and
transport the transit-cargo to its Freeport Zone destination.
5.2 Until the BOC has implemented the Automated Risk Management and
Selectivity Program (ARMSDP) provided in Section III.4, the authorized
representative of the Freeport Zone locator shall bring the transit-cargo to the
Customs Clearance Area (CCA) for inspection by designated officials of the
BOC and Freeport Zone Authority.
5.3 Upon arrival at the CCA, the authorized representative of the Freeport Zone
locator shall present the A/IP to the official of the Freeport Zone Authority for
scanning of the Barcode, to confirm delivery of the transit-cargo to its Freeport
Zone destination.
(Note: Scanning of the A/IP Barcode will cause the A/IP System of the Freeport
Zone Authority to register in its Database, realtime, an electronic confirmation
of the delivery of the transit-cargo to its Freeport Zone destination. The CFZO
in the port of discharge shall be allowed access to the Database of the A/IP
System of the Freeport Zone Authority for the purpose of verifying which released
transit-cargoes have been delivered to their Freeport Zone destinations.)
5.4 The authorized representative of the Freeport Zone locator shall then present
the Transit-Declaration for the signature of the designated BOC official, also to
confirm delivery of the transit-cargo to its Freeport Zone destination. He shall
provide the BOC official a copy of the Transit-Declaration and retain a signed
copy for the Freeport zone locator.
5.5 When the ARMSP is already being implemented, officials of the BOC and
Freeport Zone Authority, shall conduct scanning of the A/IP Barcode and signing
of the Transit-Declaration in an area they will agree upon and shall allow
immediate delivery of the transit-cargo to the Freeport Zone locator’s venue
where the transit-cargo does not bear any sign that if has been opened or
tampered during its transfer from the port of discharge to the Freeport Zone
destination.
5.6 Designated BOC and Freeport Zone Officials shall undertake joint inspection
of a delivered transit-cargo where there are indications that the cargo may have
been opened or tampered during its transfer from the port of discharge to the
Freeport Zone destination, provided that BOC official who performed the
inspection shall prepare a formal report on the inspection conducted, which he
will jointly sign with the designated Freeport Zone Authority official.
5.7 The BOC and Freeport Zone Officials shall undertake appropriate action
against the Freeport Zone locator and/or its authorized representative in cases
where customs rules and regulations and/or other existing laws are found to
have been violated during the transfer of the transit-cargo from the port of discharge
to its delivery to the Freeport Zone destination.
VI. Repealing Clause
All rules and regulations inconsistent with this Order are hereby deemed repealed,
suspended or modified accordingly.
VII. Effectivity

Commissioner
BUREAU OF FISHERIES AND AQUATIC RESOURCES

Date Filed: 15 December 2008
Fisheries Administrative Order No. 225-2, s. 2008
Amending Section 2 and Section 3 of Fisheries Administrative Order No. 225

Series of 2007 and Providing for Additional Provision Under Section 2 Hereof
Section 1. Sections 2 and 3 of FAO No. 225, s. 2007 are hereby amended to read as
follows:
Section 2. Requirements for Import and Culture. – The import and culture
of Penaeus vannamei shall be subject to the following conditions:
a. Import shall be limited only to broodstock shrimps.
b. All imports must be certified as Specific Pathogen Free/Specific

Pathogen Resistant or SPF/SPR by the competent authority of the originating
country.
c. Only shrimp hatcheries accredited by the Bureau of Fisheries and

Aquatic Resources (BFAR) shall be allowed to import SPF or SPR Penaeus
vannamei broodstock.
d. The importing accredited hatchery may transfer nauplii and other larval
stages to another similarly accredited hatchery for rearing into postlarvae
provided such receiving accredited hatchery has been pre-identified and
has been accredited by BFAR.
e. Only shrimp farms accredited by the Bureau of Fisheries and Aquatic

Resources (BFAR) shall be allowed to culture SPF/SPR P. vannamei using
shrimp postlarvae coming from accredited hatcheries.
Section 3. Guidelines for Import and Culture. Guidelines for the import of
broodstock shrimps and the process of accreditation of hatcheries applying
for license to import and propagate the aforementioned shrimp species
and of shrimp farms wishing to culture the same shall follow the provisions
of FAO 225-, as amended and shall form part of this Order. BFAR shall update
these guidelines as required to reflect developments in technology and
industry, upon consultation with industry stakeholders.
Section 2. Effectivity. This order shall take effect fifteen (15) days after its publication
in the Official Gazette and/or in two (2) newspapers of general circulation and fifteen (15)
days after its registration with the Office of the National Administrative Register.
Adopted: 20 Nov. 2008
(SGD.) ARTHUR C. YAP

Secretary
Recommended by:
(SGD.) MALCOLM I. SARMIENTO, JR. (SGD.) JESUS EMMANUEL M. PARAS

Director Undersecretary
Bureau of Fisheries & Aquatic Resources Fisheries Livestock and Regulations
—o0o—
Fisheries Administrative Order No. 225-3, s. 2008
Amending Section 1 of Fisheries Administrative Order No. 225-1

Series of 2007
Section 1. Section 1 of FAO No. 225-1, s. 2007 is hereby amended to read as follows:
“Section 1. Shrimp Broodstock Importation - the following measures shall

be observed in the importation of P. vannamei broodstock:
a. Pre-border Biosecurity Measures
1) Prior to the issuance of special import permit to accredit shrimp

hatchery for importation of SPF/SPR P. vannamei broodstock, Proponent
shall submit a CERTIFICATE OF COMPLIANCE duly signed by the National
BFAR Director. The issuance of the Certificate shall be based on the results
of the inspection of hatchery facilities that shall be authorized to breed P.
vannamei. Inspection and accreditation shall be undertaken by National
Fisheries Research and Development Institute (NFRDI) to be assisted by
BFAR Regional Offices.
2) The broodstock to be imported must only come from Pacific White

Shrimp broodstock facilities originating from the United States of America
known to have the capacity in producing broodstock that are Specific
Pathogen Free (SPF) and/or Specific Pathogen Resistant (SPR). The SPF/
SPR facilities verified list is subject to change periodically depending on the
updated list provided by the Oceanic Institute or the United States Marine
Shrimp Farming Program Consortium.
3) The broodstock facility selected by the imported must have a

minimum two (2) years disease free status as certified by competent
authority from the country of origin. In addition, the broodstock facility
shall likewise submit its disease history for the period covering its
commercial establishment to the present.
4) The broodstock facility shall submit samples taken from the lot
where the intended stock for shipment shall be drawn. Said samples shall
be forwarded to the USMSFP Shrimp Disease Reference Laboratory, the
Aquaculture Pathology Laboratory, Department of Veterinary Science and
Microbiology, University of Arizona, for diagnostic as to their SPF status on

the following pathogens:
a. Taura Syndrome Virus (TSV)

b. White Spot Syndrome Virus (WSSV)
c. Infectious Hypodermal and Haematopoietic Necrosis Virus (IHHNV)
d. Yellow Head Virus Disease (YHVD)
e. Baculovirus Penaeid (BP)
f. Hepatopancreatic Parvo-like Virus (HPV)
g. Necrotizing Hepatopancreatitis (NHP)
h. Monodon Baculo Virus (MBV)
i. Baculoviral Mid-gut Gland Necrosis Virus (BMN)
j. Infectious Myo-Necrosis Virus (IMNV)
5) No import permit shall be issued unless the documents specified

in the pre-border Biosecurity measures shall have been complied with.
6) The imported broodstock shall be allowed entry into the country

at the Ninoy Aquino International Airport (NAIA), the broodstock shipment
should take the most direct route from its origin to the Philippines. No
trans-shipment will be allowed. Should there be an interruption in the
transport (delayed or cancelled flights), any competent authority within
the area shall be notified immediately. Said authority shall issue a
certification relating to the interruption and certify that the shipment was
not co-mingled with other shipment and that the intended shipment was
not exposed or subjected to any risk of contamination. In case of broodstock
shipment on a regular flight or chartered or special flights to other Philippine
international airports other than NAIA, an advance notice shall be given to
BFAR Central Office, to enable designated Fisheries Quarantine Officers
and Fish Health Officers to be present at the port of entry.
b. Border Inspection Measures
1. Upon arrival, the imported broodstock shall be presented for

documentary inspection at the Fisheries Inspection and Quarantine Service
(FIQS) at the NAIA.
2. After documentary inspection and verification, the imported

broodstock shall be transported directly to the BFAR accredited shrimp
hatchery facility. The importer, or its designated representative, together
with representative from the Fisheries Regulatory and Quarantine Division
(FRQD) will accompany transfer to the facility.
3. One percent (1%) but not more than ten (10) pieces of representative
broodstock sample will be turned over to BFAR Fish Health Central
Laboratory for verification of the laboratory results given prior to shipping
and accompanying Health Certificate.
c. Post-border Biosecurity Measures

Upon arrival at the facility, the broodstock shall be confined in designated

holding tanks for quarantine and subsequent maturation and breeding
purposes.
d. Testing and Disease Detection
1. At PL1-PL 3, samples shall be taken from the larval rearing tanks

for testing. As per OIE Diagnostic Manual for Aquatic Animal Disease (2006).
2. All samples shall be subjected for analysis for Taura Syndrome

Virus (TSV), Baculovirus Penaeid (BP), Necrotizing Hepatopancreatitis (NHP)
and Infectious Myo-Necrosis Virus (IMNV) at their respective BFAR Regional
Fish Health Laboratories or any accredited laboratory.
3. Regular monitoring for the four (4) above mentioned OIE

reportable diseases of P. vannamei will be conducted by their respective
BFAR Regional Fish Health Laboratories, as per OIE Manual of Diagnostic
Tests for Aquatic Animal (2006).
4. In case of conflict on results, verification shall be done solely by

BFAR Central Fish Health Laboratory in Quezon City. Results issued by
BFAR Central Fish Health Laboratory shall be final.
e. Certifying the broodstock
1. To keep the integrity and Quality of Postlarvae used for

commercial production in different farming systems, only the original
certified SPF/SPR broodstock from BFAR verified and recognized
broodstock facilities and stocked at accredited shrimp hatcheries shall be
the only source of the shrimp postlarvae. The selling of shrimp eggs and
nauplii by accredited hatcheries to other shrimp hatcheries is strictly
prohibited.
2. Replacement for spent broodstock shall always originate from

verified SPF/SPR shrimp stock only. No Philippine island-born broodstock
shall be returned to the accredited hatcheries to produce the postlarvae.
Violation of this regulation will warrant outright cancellation of hatchery
accreditation. This shall be strictly implemented.
f. Minimum Biosecurity Standards for Controlled Hatchery Facility – The

importer shall comply with the minimum biosecurity standards for
broodstock maturation, larval rearing and production of F1 offspring, prior
to the issuance of an import permit. The following standards shall be used
in evaluation of each application of proponent shrimp hatchery for
accreditation.
1. Water Treatment – The water treatment system should ensure

the provision of high quality water. The following protocol is prescribed:
a. Incoming water filtration. Initial filtering through sub-sand

well points, sand filters (gravity and pressure) or mesh bag filters into the
first reservoir for settling tank. After disinfection, final filtration using fine
mesh filter bags or membrane filters.
b. Water disinfection and sedimentation. Initial disinfection is

done through chlorination. Then disinfection using UV lights (or ozone)
did after the final filtration.
c. Water conditioning. Through the use of activated charcoal

filters and use of Ethylene Diamine Tetra Acetic Acid (EDTA) to chelate
remaining heavy metals impurities.
3. Effluent Water Treatment Hatchery and Growout – All water

discharged from the hatchery should be temporarily stored in a catching
pond and treated with hypochlorite solution (>20 ppm active chlorine for
not less than 60 minutes) or other effective disinfectant prior to discharge).
4. Physical Isolation – The different production facilities shall be

physically Isolated from one another, specifically, maturation, spawning
and hatching, larval and nursery rearing, indoor and outdoor algal culture
and live food production.
5. Aeration – Air flow should be controlled between sections of the

facility. Glass wool filters should be installed in the main aeration line
servicing all sections.
6. Sanitation and Disinfection:
a. Worker sanitation – washing/bathing routines.
b. Installation of foot baths and hand washing stations at entry

into each separate culture area (all entrance points).
c. Traffic flow control in section within the facility – one way:

entrance to exit areas.
d. Control movement of potential disease carriers near the

testing area.
e. Disinfection of equipment and materials in multiple points

of use Restrict visitors.
The facility shall be exclusively used for the P. vannamei breeding and its
fry production and that no other species should be reared in the facility.
g. The following documents shall be presented for inspection at the port

of entry by the importer/broker of P. vannamei broodstock to FIQS and BoC
personnel.
1. Certificate of Compliance
2. Two (2) years disease-free status as certified by Competent

Authority at the Federal or State level. Said certificate shall be
accompanied by the number of broodstock submitted for examination and
identification of organs/tissues where the DNA/RNA were extracted.
3. Disease History of Broodstock facility of origin
4. Laboratory results from USMSFP Reference Laboratory at the

Aquaculture Pathology Laboratory, Department of Veterinary Science and
Microbiology, University of Arizona. The results should indicate number of
broodstock submitted for examination and identification of organs/tissues
where the DNA/RNA were extracted
5. Health Certificate from appropriate Country of Origin Competent
Authority
6. Detailed travel documents
Section 2. Effectivity. This Order shall take effect fifteen (15) days after its publication
in the Official Gazette and/or in two (2) newspaper of general circulation and fifteen (15)
days after its registration with the Office of the National Administrative Register.

Secretary
Recommended by:
(SGD.) MALCOLM I. SARMIENTO, JR. (SGD.) JESUS EMMANUEL M. PARAS

Director Undersecretary
Bureau of Fisheries & Aquatic Resources Fisheries Livestock and Regulations
BUREAU OF FOOD AND DRUGS
Bureau Circular No. 2007-013-A
Amendment to Bureau Circular No. 2007-013 “Updated Guidelines

for the Implementation of the Association of South East Asian Nation (ASEAN)
Cosmetic Directive and the Association of South East Asian Nation (ASEAN)
Common Technical Documents”
Bureau Circular No. 2007-013 dated 21 December 2007 was issued providing the
“Updated Guidelines for the Implementation of the Association of South East Asian Nation
(ASEAN) Cosmetic Directive and the Association of South East Asian Nation Common
Technical Documents”.
However, a review of the said Circular reveals potential issues that may be raised
which can lead to confusion and thereby derail the effective implementation of Administra-
tive Order No. 2005-0015, hence, this amendment. In so doing and for purposes of conve-
nience, the full text of Bureau Circular No. 2007-013 is reproduced hereunder, the amend-
ments or modifications are highlighted accordingly.
“In order to align national standards with the ASEAN Cosmetic Directive (ACD) as
declared in Administrative Order No. 2005-0015 the following guidelines and all its amend-
ments are hereby adopted.
I. COSMETIC PRODUCT NOTIFICATION REQUIREMENTS
The company or person responsible for placing the cosmetic products in the
market shall notify BFAD of the place of the manufacture or of initial importation
before the product is placed in the market.
MANDATORY REQUIREMENTS
1. The Documentary and Technical Requirements for Products for Notification
a. Completed Revised Assessment Slip (Ref. BC 20.s. 2005: Subject Revised

Assessment Slips).
b. Completed ASEAN Notification Template.
An ASEAN Notification Template was developed to be used in all applications

for cosmetic notification which shall be submitted/filed only once to facilitate
compliance with the Guidelines. While the above template may be reproduced
by applicant companies, the content thereof shall not be modified,
otherwise, the notification shall be invalidated.
c. Official Receipt (OR) evidencing payment of the required fees pursuant

to existing rules on fees.
d. Valid License to Operate of the applicant.
i. For Manufacturers - List of Product Lines must be reflected.
ii. For Traders - List of Toll Manufacturer/s and List of Product Lines must be
reflected.
iii. For Importer/Distributor - List of Product Source/s for imported cosmetic

products, as well as, the Actual Manufacturer/s of the Product/s must be
reflected
iv. For Wholesaler/Distributor - List of Product Source/s must be reflected

II. PROCEDURE
A. For New Products
1. Secure the proper forms either by downloading from the BFAD Website (http://
www.bfad.gov.ph) or by photocopying the existing prototypes.
2. Completely fill up the necessary forms. Forms should be printed in an A4 size of paper.
3. Arrange the documents accordingly in a Clear Book Filler (size a4).
4. Application for notification shall be received, as well as, follow-ups or inquiries en-
tertained from Tuesday to Friday of the week until March 2008 and every Thursday and
Friday of the week thereafter.
5. Two (2) copies of Notification template in original form shall be submitted. One copy to
be retained by BFAD should be placed in a clear sheet and the other copy will be returned
to the applicant company after appropriate acknowledgement by BFAD. Applications shall
be stamped as received upon submission by the applicant of the required documents, to
acknowledge receipt thereof.
Notwithstanding the acknowledgement of receipt of the required documents, the

BFAD reserves the right to further issue a letter/notice to the company in case of clarifica-
tion or is not precluded in determining and imposing remedial actions and legal
penalties under the situation when the cosmetic product subject of the application
failed to conform to any of the existing standards or specifications set by the Bureau.
B. For Existing Products
1. Submit the original acknowledged Notification Template and a photocopy of the front
page where the acknowledgement of receipt was stamped.
For issued Certificate of Product Registrations (CPR) or Certificate of Prod-

uct Listing (CPL), the original copy shall be submitted. The applicant shall submit a
completed ASEAN Notification Template in two original copies.
All notified or approved cosmetic products which expired on 31 December

2007 shall be submitted on or before 31 March 2008, otherwise, the existing prod-
ucts shall be automatically classified as new, hence, the procedure in Part II-A
shall be followed.
2. A letter informing BFAD on the specific criteria on the ASEAN Cosmetic Directive (ACD)
in which the cosmetic product does not comply, if any.
3. Fill up the assessment slip identified above.
4. Application for notification of existing product shall be received as well as, follow-ups
or inquiries entertained from Tuesday to Friday of the week until March 2008 and every
Thursday and Friday of the week thereafter.
5. Upon submission of the official receipt evidencing payment of the required fees,
the original copy of acknowledged Notification Template shall be stamped for addi-
tional validity in accordance with Part V below.
For CPR/CPL, the Notification Template shall be acknowledged as evidence

of receipt, the validity thereof shall also be in accordance with Part V below.
Notwithstanding the granting of additional validity of the Notification, the

BFAD reserves the right to further issue a letter/notice to the company in case of
clarification or is not precluded in determining and imposing remedial actions and
legal penalties under the situation when the cosmetic product subject of the applica-
tion failed to conform to any of the existing standards or specifications set by the
Bureau.
III. NOTIFICATION LEADTIME
The notification shall be processed and completed preferably within a maximum of

three (3) working days provided that the notification application complies with the require-
ments of this Bureau.
IV. GUIDELINES FOR THE CHANGES OF INFORMATION(s) IN THE PRODUCT NOTI-

FICATION OR CPR/CPL.
1. Change(s) in the Product Notification that require(s) mere letter-request and the
necessary documents that affect the change(s)
a. Product Presentation (single product, palettes in a range, etc.)

b. Name and/or address of company without change of distribution rights
c. Authorize person representing the company
d. Pack sizes, packaging materials and labels.
The above change(s) shall require appropriate fees in accordance with

existing rules on fees.
2. Change(s) that require(s) the submission of a new Product Notification and man-
datory requirements specified in Part 1 above.
a. Product name, brand name or variant name

b. Company change due to change of distribution rights
c. Product types
d. Intended use
e. Formulation
f. Change or addition of claims
Manufacturer/s and assembler/s (name and address)
3. Existing valid CPR/CPL’s with change(s) in information mentioned in the two (2)
preceding paragraphs (1 and 2) except, letter c of paragraph 1, shall require the
submission of a new product notification and mandatory requirements.
V. NOTIFICATION VALIDITY
For initial submissions, covering new products, the notification shall be valid
for a period of one (1) to three (3) years maximum at the option of the applicant.
Those products with CPR/CPL or products with issued notification for the year
2007 shall be granted an additional validity based on the date of application for
the year 2007.
Those applications or notifications submitted prior to the year 2007 shall have
one year validity.
VI. Updates on the ASEAN Cosmetic Directive (ACD)
Appendix I September 2007

ASEAN Illustrative List
Appendix II December 2006

ASEAN Labeling Requirement
Appendix III June 2007

ASEAN Claim Guideline
ASEAN Cosmetic Directive June 2007

Guidelines for Product Information File (PIF)
ASEAN Guidelines for the

Safety Assessment of a Cosmetic Product December 2006
ASEAN Microbial Limit June 2007
Updated Annexes of Ingredients June to

September 2007
Company/s or person/s responsible for placing the cosmetic product/s in the market
are responsible for continually checking any updates and amendments to the ACD for
proper guidance and compliance through the following websites:
www.bfad.gov.ph (under ASEAN Cosmetic Harmonization)

www.aseancosmetic.org
www.asean.org
VII. EFFECTIVITY
This order issued shall take effect immediately.

Adopted: 21 Jan. 2008
(SGD.) Prof. LETICIA BARBARA B. GUTIERREZ, M.S.

Director
--o0o--
Bureau Circular No. 2007-006-A
Amendment to Bureau Circular No. 2007-006 Providing for the

“Additional Requirement for Importation of Processed Food Products
for Distribution in the Philippines.”
Prompted by the proliferation of unsafe imported processed food products in the mar-
ket and pursuant to the mandate to (a) establish standards and quality measures for
foods, drugs, and devices and cosmetics, and (b) adopt measures to ensure pure and safe
supply of foods and cosmetics, and pure, safe, efficacious and good quality drugs and
devices in the country, this Bureau issued Bureau Circular No. 2007-006 dated 12 July
2007 obligating the concerned establishments to submit a copy of Certificate of Free Sale
issued by the Regulatory Agency of the country of origin of the imported food product
sought to be registered in addition to the existing requirements for the issuance of a
license to operate as food importer and registration of the imported product.
However, questions were raised concerning the above requirement, which reveal po-
tential issues that lead to confusion and derail the effective implementation of the aforesaid
Bureau Circular, hence; the directives stated therein are hereby modified and expounded
accordingly.
I. Directive
1. A Certificate of Free Sale (original copy) or similar certificate attesting that

the food product is either freely sold in the country of origin and/or for export
shall only be required to be submitted as additional requirement for the registration
of a food product sought to be imported into the Philippines for distribution. This
requirement is applicable for initial or renewal (whether regular or automatic)
applications; provided that, for initial applications which are already pending
from the date of issuance of this Circular and those registrations which are due
for renewal whether regular or automatic, the same shall be processed
accordingly, however, the importers shall be given ninety (90) days from the
date of issuance of the Certificate of Registration (new registration) or date of
renewal of the registration (regular renewal) or expiry date of the registration
(automatic renewal) within which to submit the above-required certificate. Failure
to comply shall be a ground for the revocation of the registration.
2. The Certificate of Free Sale or similar certificate shall indicate whether the
food product is registered, freely sold in the country of origin, and/or is for
export. If it is not registered and/or not to be sold in the country of origin, such
facts must likewise be indicated apart from the information that the food product
is solely for export. If exported in more than one country other than the Philippines,
the country(ies) shall be identified [maximum of five (5) major countries of export]
excluding the Philippines.
3. The Certificate of Free Sale or similar certificate must be issued by the

health regulatory agency or if not issuing, the trade regulatory agency, or any
government agency responsible for the regulation of the food product, of the
country of origin of such food product offered for import into the Philippines. The
certificate must bear the official seal of the issuing agency and need not be
authenticated.
4. If there is no government agency that issues a Certificate of Free Sale or

similar certificate, any relevant organization or association duly registered and
recognized in the country of origin shall issue such certificate. The fact that no
government agency issues said certificate must be indicated apart from the
information required in item two (2). The certificate must bear the official seal of
the issuing organization and the certificate must be authenticated by the
Philippine consulate in that country.
5. If the food products is being manufactured in a country different from the
country of origin, the principal state (country of origin) shall be the one
responsible in issuing the above-required certificate.
6. Processed food products shall not be imported and admitted into the
Philippines if they are not duly registered with the Bureau of Food and Drugs
and the importer (consignee) thereof is not a holder of a valid license to operate
issued by this Office. Both the Certificate of the Product Registration covering
the product sought to be imported, as well as, the License to Operate of the
importer must be presented to the Bureau of Customs for the release of the
food product being imported or offered for import.
For the guidance of all concerned.
Adopted: 24 March 2008
Director IV
--o0o--
Bureau Circular No. 2008-001
Grace Period for the New Updates and Amendments

of the ASEAN Cosmetic Directive (ACD)
In the interest of service, and for the information of all, the Bureau of Food and Drugs
(BFAD) hereby adopts the Final report of the ASEAN Cosmetic Scientific Body (ACSB)
and ASEAN Cosmetic Committee (ACC) Meeting as attachments*.

www.asean.org
This order shall take effect immediately after its posting at the BFAD website.
Adopted: 02 May 2008

Director
--o0o--
Seminar Fees for the Participants of Seminars on

Licensing of Establishments and Product Registration
I. Background:
Executive Order No. 292 also known as the Administrative Code of 1987 mandates the
Bureau to provide consultative, training and advisory services to all agencies and organiza-
tions involved in food and drug manufacturing and distribution with respect to assuring
safety and efficacy of food and drugs. To successfully provide such activities, however,
funding is deemed indispensable.
In line with this, the General Appropriations Act, FY 2008 has authorized departments,
bureaus, offices or agencies to collect seminar and conference fees from government and
private agency participants, at such standard rates as deemed appropriate by the DBM
and CSC, to defray the cost of training facilities, subject to pertinent budgeting, account-
ing and auditing rules and regulations. Section 10 of the General Appropriations Act 2008
declares, to wit:
“Sec. 10. Seminar and Conference Fees. Departments, bureaus, offices or

agencies which conduct training programs in relation to their mandated functions
are authorized to collect seminar and conference fees from government and
private agency participants, at such standard rates as the DBM and the CSC
shall deem appropriate. The proceeds derived from such seminars or conferences
may be used for the conduct of seminars, conferences and trainings, subject
to pertinent budgeting, accounting and auditing rules and regulations:
PROVIDED, That any excess shall be deposited with the National Treasury
and shall accrue to the General Fund pursuant to Section 44, Chapter 5, Book
VI of E.O. No. 292: PROVIDED, FURTHER, that upon the conclusion of the
seminar or conference, the office authorized to conduct the same shall submit
to the DBM a report of the fees collected and of the expenses incurred.”
II. Details:
Thus, for the purposes of the above mandated functions, a seminar fee shall be col-
lected from government and private participants for the cost of supplies and materials,
meals and other expenses to be incurred solely in the conduct of the seminar, subject to
pertinent budgeting, accounting and auditing rules and regulations. The seminar fees shall
be as follows:
Title of Seminar Fee
Licensing Seminar for Drug Distributors and Outlets PhP600.00

(AO 56, s. 1989) - Regulation Division I
Licensing Seminar for Drug Manufacturers and Traders PhP600.00

(AO 56, s. 1989) - Regulation Division II
Current Good Manufacturing Practice (cGMP) for Food PhP600.00

Manufacturers, Packers and Repackers (AO 153, s. 2004) -
Regulation Division II
Good Manufacturing Practice (GMP) on Production for PhP3,000.00

Drug Manufacturer, Drug Trader, Drug Distributor -
Regulation Division II
Requirements for Registration of Pharmaceutical Products PhP3,000.00

(AO 67 s. 1989) including Bureau Circular 2007-011
(Adoption of the ACTD and ACTR on the Pharmaceutical
Product Registration for Human Use)
Training on ASEAN Cosmetic Group Modules for Cosmetic PhP3,000.00

Laboratories
Training on ASEAN Cosmetic GMP Modules for Soap PhP2,000.00

Manufacturers and Traders
Training on the Implementation of the ASEAN Cosmetic PhP1,200.00

Directive and Post Market Activities
Requirements for Registration of Processed Food Products PhP1,200.00

and Food Supplements
Other seminars whose nature shall be similar to the above shall also be charged with
fees based on current cost-estimates.
Please be guided accordingly.
Adopted: 10 June 2008

Director IV
--o0o--
Grace Period for the 2nd Updates and Amendments

of the ASEAN Cosmetic Directive (ACD)
In the interest of service, and for the information of all, the Bureau of Food and Drugs
(BFAD) hereby provides the Final report of the 9th ASEAN Cosmetic Scientific Body (ACSB)
and 10th ASEAN Cosmetic Committee (ACC) Meetings as attachments*.

www.asean.org
You are hereby directed to take note of the cited grace period as agreed during
the 10th ACC Meeting.
This order shall take effect immediately after its posting at the BFAD website.
Director
--o0o--
Testing of Infant Formula and Other Milk Product for the

Presence of Melamine
Following the recent reported findings and confirmation of the presence of melamine in
infant formula and milk products produced in China, the Bureau of Food and Drugs has
since then been monitoring and collecting aforecited products in the market for testing/
analyses in the Laboratory Services Division. At present the BFAD is still in the process of
developing and validating the applicable test procedures for the presence of the said ingre-
dient.
In this regard, clients may utilize the testing capabilities of the recognized laboratories
for the testing of melamine in their products. The list of recognized laboratories can be
downloaded in the BFAD website at www.bfad.gov.ph. This Bureau also allows the testing/
analyses be conducted by reputable testing laboratories abroad. All test results, however,
shall be evaluated and verified by BFAD and may be used to meet specific BFAD require-
ments and other industry requirements whenever necessary.

Director
BUREAU OF IMMIGRATION
Memorandum Order No. MCL-08-039
Philippine Citizens with Dual or Multiple Citizenship
Effective immediately, all immigration officers and concerned personnel are hereby
directed to apply the following rules in the inspection of Filipinos who possess dual or
multiple citizenship:
A. PROOF OF PHILIPPINE CITIZENSHIP
For purposes of this Memorandum Order, only the following shall be considered as
substantial proof of Philippine citizenship:
1. Genuine and valid Philippine passport; or
2. Original Identification Certificate (IC) issued either by this Bureau or by the different
Philippine Consulates pursuant to Memorandum Circular No. AFF-05-002; or
3. Original Certificate of Re-acquisition/Retention of Philippine Citizenship (CRPC) issued

by this Bureau. (Note: green-colored certificate for petitioner/principal and blue-colored
certificate for dependents, samples of which are hereto attached).
B. ARRIVAL AND STAY
1. Filipinos with dual or multiple citizenship shall present, upon arrival in any port of entry
in the Philippines, either a Philippine or foreign passport.
2. Filipinos with dual or multiple citizenship who present a foreign passport, may be admit-
ted for an indefinite period of stay, being a Filipino, provided, he/she also possesses and
shows a genuine and valid: (1) Philippine passport, or (2) Identification Certificate (IC), or
(3) Certificate of Re-acquisition/Retention of Philippine Citizenship (CRPC). In the foreign
passport, the immigration officer shall put either of the following notation on the provision
for the authorized stay in the arrival stamp:
a. “PP” - if a Philippine passport is also presented, or
b. “IC” - if an Identification Certificate is presented , or
c. “CRPC” - if a Certificate of Re-acquisition/Retention of Philippine Citizenship

is presented.
C. DEPARTURE
Filipinos with dual or multiple citizenship, who presented a foreign passport at the
time of their admission into the Philippines may be cleared for departure without need of
surrendering a certificate, permit or proof of payment of imposable immigration fees, pro-
vided, he/she also shows a genuine and valid (1) Philippine passport, or (2) Identification
Certificate (IC), or (3) Certificate of Re-acquisition/Retention of Philippine Citizenship (CRPC).
However, if the Filipino does not have a Philippine passport, an Emigration Certificate of
Clearance (ECC) fee of PhP710.00 shall be charged for using a foreign passport upon
departure, if the authorized stay in the said foreign passport is not updated.
D. In the arrival, stay and departure of Filipinos with dual or multiple citizenship where the
Filipino presents a Philippine passport and a foreign passport, the arrival or departure
stamp shall be stamped on both passports. In the foreign passports, the immigration
officer shall put either of the following notation on the provision for the authorized stay in
the arrival or departure stamp:
a. “PP” - if a Philippine passport is also presented, or

b. “IC” - if an Identification Certificate is presented, or
c. “CRPC” - If a Certificate of Re-acquisition/Retention of Philippine Citizenship
is presented.
This Memorandum Order supersedes Memorandum Order No. AFF-04-025 dated 14

December 2004 and all inconsistent issuances by this Bureau.
For strict compliance.
(SGD.) MARCELINO C. LIBANAN

Commissioner
BUREAU OF INTERNAL REVENUE
Revenue Regulations No. 13-2008
Consolidated Regulations on Advance Value Added Tax

on the Sale of Refined Sugar; Amending and/or Revoking All Revenue
Issuances Issued to this Effect, and for Other Related Purposes
SECTION 1. Scope - Pursuant to the provisions of Sections 6 and 244, in relation to

Sections 106, 109, 110, and 111 (B) (1) all of the National Internal Revenue Code of 1977
(Code), as last amended by Republic Act No. 9337, in relation to Executive Order No. 18
dated May 28, 1986 (“Creating A Sugar Regulatory Administration”), Sugar Order No. 1
issued every crop year to allocate the volume of and classifying the cane sugar produced
each production year, and Sugar Order No. 4, series of 2006-2007 (Conversion of “C” or
Reserve Sugar into “D” or World Market Sugar and the Revised Sugar Classification and
Percentage Allocation), these regulations are hereby promulgated (a) to prescribe the
updated policies and procedures for the advance payment of value added tax (VAT) on the
sale of refined sugar, including those made by a duly accredited and registered agricultural
cooperative of good standing, (b) to prescribe policies and procedures for the recognition of
classification of sugar and sugar products, (c) to provide for a monitoring system in the
processing of raw sugar into refined sugar and the withdrawal thereof from the sugar refin-
eries/mills, and (d) for other related purposes.
SECTION 2. Definition of Terms - For purposes of these regulations the following

terms will be construed to mean:
a. Refined Sugar - refers to sugar whose content of sucrose by weight, in the dry state
corresponds to a polarimeter reading of 99.5o and above.
Cane sugar produced from the following shall be presumed, for internal revenue
purposes, to be refined sugar:
(1) product of a refining process,

(2) products of a Sugar Refinery, or
(3) product of a production line of a sugar mill accredited by the Bureau of Internal Revenue
(Bureau or BIR may be used interchangeably in these regulations) to be producing and/or
capable of producing sugar with polarimeter reading of 99.5o and above, and for which the
quedan issued therefor as verified by the Sugar Regulatory Administration (SRA) identifies
the sugar to be of a polarimeter reading of 99.5o and above.
Nonetheless, sugar produced from sugar production lines accredited by the Bu-
reau to be capable of producing sugar with polarimeter reading of 99.5o or above shall be
prima facie presumed to be refined sugar.
For this purpose, the Revenue District Office (RDO) having jurisdiction over the
physical location of the sugar mill shall accredit the sugar mill production line as to their
capability of producing sugar with a polarimeter reading of 99.5o or above. The result of
said accreditation shall be published in a newspaper of general circulation.
b. Raw Sugar - refers to sugar whose content of sucrose by weight in dry state, corre-
sponds, to a polarimeter reading of less than 99.5o . Cane sugar produced each production
year shall be classified, for internal revenue purposes, as follows:
1. “A” is raw sugar which is intended for export to the United States Market.
2. “B” is raw sugar which is intended for the Domestic Market.
3. “C” is raw sugar which is reserved for, but have not yet matured for release to
the Domestic Market.
4. “D” is raw sugar which is intended for export to the World Market.
5. “E” is reclassified “D” sugar for sale to Food Processors/Exporters operating

Customs Bonded Warehouse (CBW) or to an enterprise located within the
special processing export zone.
For this purpose, the Bureau shall require all sugar refineries/mills to submit to
the Regional Director (RD)/Revenue District Officer (RDO) where the mill site is physically
located a Weekly Production Report (Annex G) which corresponds to the Weekly Report
on Raw and Refined Sugar (SRA SMS form no. 1 and 2) required by the Sugar Regulatory
Administration (SRA), indicating the volume and classification of each sugar produced as
certified by the SRA. If the miller is registered as a Large Taxpayer, a copy of the said
Weekly Production Report shall also be filed to the Large Taxpayers Service.
The Bureau shall assign a Revenue Officer on Mill Sites (ROOMS) who shall likewise
monitor the volume of each class of sugar produced by all sugar refineries/mills through
the sugar quedans issued, by submitting a sugar quedan register per sugar classification
certified by the SRA [(Annex G-1 for A, G-2 for B, G2-C, G3-D and G4-E)] (The ROOMs
shall be provided by the BIR Office where the sugar central is registered).
c. Sugar Refinery/Mill includes refiner and/or miller of refined sugar as defined in Sub-
section (a) hereof.
d. Sugar “Owners” as used in this regulations may refer to persons who have legal title
over the refined sugar and may include any of the following:
1. Sugar Planters;
2. Traders;
3. Sugar Millers;
4. The Cooperative/s
SECTION 3. Requirement to Pay in Advance VAT on Sale of Refined Sugar - In
general, the advance VAT on the sale of refined sugar provided for under Sec. 8 hereof,
shall be paid in advance by the owner/seller before the refined sugar is withdrawn from any
sugar refinery/mill. Before the issuance of Certificate of Advance Payment of VAT [(Annex
“E”*)], the owner/seller shall file Declaration for Advance Payment on Refined Sugar (An-
nex “B-1”*) to the RD/RDO having jurisdiction over the place where the sugar mill is physi-
cally located and shall submit the following attachments:
1. Listing/Abstract of official Warehouse Receipt Quedan (Annex “B-2”) in soft and hard
copy;
2. Proof of Payment of Advance VAT on Sale of Refined Sugar.
The Sugar Refinery/Mill shall be required to submit Monthly Report on the Quantity of
Refined Sugar Milled/Produced and the Amount of Advance VAT Paid and Duly Remitted
(Annex “J”*) in order to confirm and/or verify that the requirements of this Section are
complied with.
In cases where ownership of refined sugar is transferred by a cooperative, or by any

owner to another person where the transaction would not qualify for the exemption pro-
vided for under Sec. 4 hereof, the advance VAT on the sale of refined sugar shall be paid by
the transferee-owner/seller to the RDO where the sugar central is located through the
Authorized Agent Bank (AAB), whether manually or through Electronic Filing and Pay-
ment System (EFPS) of the Bureau, or to the Revenue Collection Officer (RCO) or depu-
tized/authorized City of Municipal Treasurer in places where there are no Accredited
Agent Banks (AABs), before any refined sugar can be withdrawn from any Sugar Refinery/
Mill. Before the issuance of Certificate of Advance Payment of VAT (Annex “E”), the
owner/seller shall file an application using Annex B-1 to the RD/RDO having jurisdiction
over the sugar mill and shall submit the following attachments:
1. Listing/Abstract of official Warehouse Receipt Quedan (Annex “B-2”) in soft and hard
copy;
2. Proof of Payment of Advance VAT on Sale of Refined Sugar.
The transferor/seller shall be required to submit monthly report of sugar sold (List of
Buyers of Sugar marked as Annex “H” hereof) in order to confirm and/or verify that the
requirements of this Section are complied with.
SECTION 4. Exemption from the Payment of the Advance VAT - Notwithstanding the
provisions of the foregoing Section, the following withdrawals shall be exempt from the
payment of the advance VAT.
(a) Withdrawal of Refined Sugar by Duly Accredited and Registered Agricultural Producer
Cooperative of Good Standing - In the event the refined sugar is owned and withdrawn
from the Sugar Refinery/Mill by an agricultural cooperative of good standing duly accred-
ited and registered with the Cooperative Development Authority (CDA), which cooperative
is the agricultural producer of the sugar cane that was refined into refined sugar, the
withdrawal is not subject to the payment of advance VAT. The cooperative shall file an
application for withdrawal using Annex “A-1”. Upon presentation of the Authorization Allow-
ing the Release of Refined Sugar (Annex “A”*) and other documents prescribed in Sec. 5
hereof, the Sugar Refinery/Mill shall release the same but only after notifying the Revenue
Officer on Mill Sites (ROOMS) of the time and date of the release of the sugar from the
Sugar Refinery/Mill and the names and plate numbers of the sugar carrying vehicles/
trucks so that the release can be given proper supervision and that the advance VAT was
collected from the transferee should evidence show that the refined sugar has already
been sold under a circumstance that makes the sale thereof of a taxable transaction.
A cooperative shall be considered in good standing if it is a holder of a “Certificate of

Good Standing” issued by the CDA. A copy of the same shall be submitted to the BIR on
or before April 30 of the following year.
A cooperative is said to be the producer of the sugar if it is the tiller of the land it
owns, or leases, incurs cost of agricultural production of the sugar and produces the sugar
cane to be refined.
Sale of sugar in its original form is always exempt from VAT regardless of who the
seller is pursuant to Sec. 109 (A) of the Tax Code. On the other hand, sale of sugar, in its
processed form, by a cooperative is exempt from VAT if the sale is made to members of
the cooperative. Whereas, if the sale of sugar in its processed form is made by the cooperative
to non-members, said sale is exempt from VAT only if the cooperative is an agricultural
producer of the sugar cane that has been converted into refined sugar as herein defined
and discussed.
Thus, withdrawal of refined sugar by the agricultural cooperative for sale to members
is not subject to advance VAT whereas sale to non-members of said refined sugar is not
subject to advance VAT only if the cooperative is the agricultural producer of the sugar
cane that is the primary raw material in the manufacture of refined sugar.
It is hereby made clear that if the refined sugar is owned and withdrawn from the
Sugar Refinery/Mill by a duly accredited cooperative of good standing with the CDA, which
cooperative is not the agricultural producer of the sugar cane, the withdrawal of the refined
sugar shall, in all instances, be subject to advance payment of VAT, unless the buyer who
withdraws the refined sugar from the Sugar Refinery/Mill is a member of the cooperative.
(b) Withdrawal of Refined Sugar by Duly Accredited and Registered Agricultural Coopera-
tive which is sold to another Agricultural cooperative - If the owner of the refined sugar as
reflected in the quedan is an agricultural cooperative which is the producer of the sugar
cane, the sale of the resulting refined sugar to another agricultural cooperative is not
subject to VAT pursuant to Sec. 109 (L) of the Tax Code. The buyer-cooperative shall file
an application as prescribed under Sec. 4 (a) hereof. Upon presentation of the Authoriza-
tion Allowing the Release of Refined Sugar (Annex “A”) and other documents prescribed in
Sec. 5 hereof, the Sugar Refinery/Mill shall release the same but only after notifying the
ROOMs assigned at the Sugar Refinery/Mill of the time and date of the release of the
sugar from the Sugar Refinery/Mill and the names and plate numbers of the sugar-carrying
vehicles/trucks so that the release can be given proper supervision and that the advance
VAT has been paid by the Transferee should evidence show that the refined sugar has
already been sold by the buyer cooperative to another taxable entity. However, if the seller-
cooperative is not an agricultural producer but merely purchases the sugar cane or the raw
sugar from planter-members or transfer the raw sugar to cooperative through assignment,
its sale of the resulting refined sugar to another agricultural cooperative shall be subject to
VAT and its withdrawal from the Sugar Refinery Mill will only be allowed upon payment of
the advance VAT in the RDO having jurisdiction over the place of business of the coopera-
tive.
Moreover, it is to be repeatedly emphasized that when the purchaser-cooperative

of the refined sugar subsequently sells the same to another, whether or not a cooperative,
the sale is always subject to VAT unless the buyer is a member of the seller cooperative.
SECTION 5. Documents Required as a Condition for Withdrawal or Transfer of

Ownership of Refined Sugar. The proprietor of a Sugar Refinery/Mill shall not allow any
withdrawal of refined sugar from its premises without the payment of advance VAT required
under Sec. 3 hereof. Any person making the withdrawal or transfer shall submit proof of
such payment as prescribe in Sec. 6 hereof.
a. Withdrawal or Transfer by duly accredited and registered agricultural producer

cooperative - A duly accredited and registered agricultural producer cooperative which is
allowed to withdraw refined sugar without the payment of the advance VAT shall submit to
the Sugar Refinery/Mill the Authorization Allowing the Release of Refined Sugar ( Annex
“A”) which shall be issued by the Regional Director/Revenue District Officer having jurisdic-
tion of the place where the sugar central or mill is physically located after submission of
the following document:
i. Sworn Statement (Annex “C”);

ii. Listing/Abstract of official Warehouse Receipt Quedan (Annex “B-2”); in soft
and hard copy
iii. Weekly Production Report (in soft and hard copy) prior to withdrawal
b. Withdrawal or Transfer by duly accredited and registered CBW Food Processor/

Exporter, for export or sale to a Locator within a special export processing zone of
refined “E” sugar - Withdrawal or transfer of the refined “E” sugar shall be allowed by the
Sugar Refinery/Mill only upon presentation of Certificate of Advance VAT payment (Annex
“E”).
In the event that the refined “E” sugar is actually exported or sold to registered enter-
prise in an economic zone, the advance VAT paid may be claimed for refund or issuance of
Tax Credit Certificate by the payor pursuant to Sec. 204 of the Tax Code.
SECTION 6. Proof of Advance Payment of VAT - The concerned RD/RDO having

jurisdiction over the owner of the sugar refined in Sugar Refinery/Mill shall issue a Certificate
of Advance Payment of the VAT (Annex “E”) as required under Sec. 3 hereof. This certificate
shall serve as the authority of the Sugar Refinery/Mill to release the refined sugar described
therein, and together with the Payment Form (BIR Form No. 0605 or its equivalent) and the
BIR prescribed deposit slip duly validated by the AAB (manual/EFPS) or the Revenue
Official Receipt (ROR) issued by the RCO or the deputized/authorized City or Municipal
Treasurer, as the case may be, shall serve as proof of the payment for the advance VAT
which can be credited against the VAT liability/payable in the Monthly VAT declaration or
Quarterly VAT return to be filed.
SECTION 7. Proof of Exemption from the Advance Payment of VAT - If a duly

accredited and registered agricultural producer cooperative of good standing which is allowed
to withdraw refined sugar without advance payment of VAT claims ownership of the refined
sugar stocked in the Sugar Refinery/Mill, the latter shall not release the said refined sugar
unless an Authorization Allowing the Release of Refined Sugar (Annex “A”) is first secured
from the concerned RD/RDO having jurisdiction over the owner of the refined sugar. In
securing such authorization, the cooperative-owner shall, in addition to that of satisfying
VAT-exemption requirements under RR No. 20-2001, submit to the concerned RDO a
Sworn Statement (Annex “C”) to the effect that:
a. The cooperative-owner of the refined sugar is an agricultural producer as defined in this

Regulation; and
b. The refined sugar is the property of the cooperative at the time of removal and it will not
charge advance VAT or any other tax to the future buyer.
If the cooperative invokes ownership over the sugar cane and the refined/milled sugar,
the sugar quedans must be in the name of the duly registered agricultural cooperative.
For exempt withdrawals, the Sugar Refinery/Mill shall require the submission of the
Authorization Allowing the Release of Refined Sugar (Annex “B”), the duly accomplished
Sworn Statement (Annex “D”) specifying therein the transferee, and the name of the owner
of the sugar as reflected in the quedan.
SECTION 8. Basis for Determining the Amount of Advance VAT Payment -
a. Base Price - The amount of advance VAT payment shall be determined by applying the
VAT rate of 12% on the applicable base price of P850.00 per 50 kg. bag for refined sugar
produced by a Sugar Refinery, and P760.00 per 50 kg. bag for refined sugar produced by
a Sugar Mill.
b. Subsequent Base Price Adjustments - The base price upon which the advance pay-
ment of VAT will be computed under the preceding paragraph shall be adjusted when
deemed necessary by the Commissioner, upon consultation with the Chairman of the
SRA.
SECTION 9. Credit for Advance VAT Payments - In addition to the input tax credits
allowed under Section 110 of the Code, the amount of advance VAT payments made by
sellers of refined sugar under these regulations shall be allowed as credit against their
output tax on the actual gross selling price of refined sugar. The Certificate of Advance
Payment of the VAT (Annex “E”) issued under Sec. 6 hereof and a copy of the payment
form shall be attached to the Monthly VAT declaration/Quarterly VAT return to support the
claim for credit of advance VAT payment.
SECTION 10. Presumptive Input Tax - Persons or firms engaged in the manufacturing
of refined sugar for their own account shall be allowed a presumptive input tax, which is
creditable against the output tax, equivalent to four (4%) percent of the gross value in
money of their purchases of primary agricultural products which are used as inputs to their
production. Primary agricultural products shall be limited to sugar cane which is the main
raw material for the finish product “refined sugar.”
SECTION 11. Place and Time of Remittance of Advance Payment of VAT - The
advance payment shall be made by the owner-seller of the refined sugar before the refined
sugar is withdrawn and remit the same to any AAB (manual/EFPS) or RCO or deputized/
authorized City or Municipal Treasurer of the RD/RDO having jurisdiction over the mill
sites. However, if the owner-seller of the refined sugar is under the jurisdiction of the Large
Taxpayers’ Service (LTS) or Large Taxpayers District Office (LTDO), the remittance shall
only be done through the Electronic Filing and Payment System (EFPS) or made to an
Accredited Agent Bank (AAB) authorized to receive payment from large taxpayers to en-
sure proper crediting of payment.
SECTION 12. Information Returns to be Filed by the Proprietor or Operator of a Sugar

Refinery/Mill, Cooperatives - Every proprietor or operator of a Sugar Refinery/Mill with pro-
duction line accredited by the Bureau to be capable of producing sugar with a polarimeter
reading of 99.5o or above, or mill producing sugar with polarimeter reading on 99.5o or
above shall render an Information Return (Annex “F”) to the RD/RDO having jurisdiction
over the physical location of the Sugar Refinery/Mill not later than the 10th day following
the end of the month. The aforesaid Information Return shall reflect the following informa-
tion:
a. Name, Address, TIN and RDO number of the owners of the refined sugar;
b. Number of bags of refined sugar released as Owned by Others;
c. Number of bags of refined sugar released as Owned by the Sugar Refinery/Mill;
d. Amount of advance VAT paid by each owner.
e. Base price subjected to advance payment of VAT for each sugar owner; and
f. Base price not subjected to advance payment of VAT for each sugar owner.
The RDO that has jurisdiction over the physical location of the Sugar Refinery/Mill, in
turn, shall give one copy of said information return to the RDO that has jurisdiction over the
owner-seller of the refined sugar as well as the RDO/LTDO/LTS that has jurisdiction over
the sugar refinery/mill.
The cooperatives shall submit to the RD/RDO on or before September 15 of every year
the list of their members as received by the Cooperative Development Authority (CDA) and
can be updated as the need arises. In case, where the person withdrawing the sugar is not
a member listed in the submitted list, he shall be required to pay the VAT due from such
withdrawal prior to its release from the refinery and/or mill.
Every cooperative shall likewise submit monthly information return to the RDO having
jurisdiction over the cooperative on or before the 15th day of the following month. The
Information Return (Annex “I) referred to herein shall contain the following:
a. Name, Address, TIN and RDO number of the buyer of the refined sugar;
b. Number of bags of refined sugar sold to each buyer;
c. Amount of advance VAT paid on the withdrawal for destination to each buyer.
d. Base price subjected to advance payment of VAT on the withdrawal for

destination to each buyer; and
e. Base price not subjected to advance payment of VAT on the withdrawal for
destination to each buyer;
In relation to these requirements from cooperatives, no

“ Authorization Allowing the Release of Refine Sugar” shall be issued to any cooperative
who:
1. Failed to submit the List of Buyers;

2. Who submitted the list of buyers but which buyers were discovered to have
invalid TIN;
3. Submitted a List of Inventory, in lieu of List of Buyers on the allegation that

the refined sugar remains unsold.
Failure on the part of the sugar cooperative to comply with the submission of the
abovementioned requirements or the supply of any incorrect information to any of its filed
application, or declaration, shall constitute a basis for the mandatory audits of the books
of accounts and records of the cooperative as well as the books and records of entities
transacting business with the cooperative.
The RDO that has jurisdiction over the cooperative shall share the information return
to the RDO that has jurisdiction over the buyers.
SECTION 13. Issuance of Tax Credit Certificate (TCC) for Unutilized Advance VAT
Payments - The advance payments made by the seller/owner of refined sugar shall be
allowed as credit against their output tax on the actual gross selling price of refined sugar.
However, advance payments which remain unutilized at the end of taxpayer’s taxable year
where the advance payment was made, which is tantamount to excess payment, may, at
the option of the owner/seller, be available for the issuance of TCC upon application duly
filed with the BIR by the seller/owner within two (2) years from the date of filing of the 4th
quarter VAT return of the year such advance payments were made, or if filed out of time,
from the last day prescribed by law for filing the return.
Unutilized advance VAT payments which have been the subject of an application for
the issuance of TCC shall not be allowed as carry over nor credited against the output tax
of the succeeding quarter/year.
Issuance of TCC shall be limited to the unutilized advance VAT payment and shall not
include excess input tax. Issuance of TCC for input tax attributable to zero-rated sales
shall be covered by a separate application for TCC following applicable pertinent rules.
SECTION 14. Penalty Clause - Any violation of the provisions of these regulations
shall be subject to penalties provided in Sections 254 and 275, and other pertinent provi-
sions of the Code, as amended.
In accordance with the provisions of the NIRC of 1997, a person who fails to file, keep
or supply a statement, list or information required herein on the date prescribed therefore
shall pay, upon notice and demand by the Bureau of Internal Revenue (BIR), an administra-
tive penalty of One Thousand Pesos (P1,000) for each such failure, unless it is satisfacto-
rily shown that such failure is due to reasonable causes and not due to willful neglect. For
this purpose, the failure to supply the required information shall constitute a single act or
omission punishable thereof. However, the aggregate amount to be imposed for all such
failures during the year shall not exceed Twenty Five Thousand Pesos (P25,000).
In addition to the imposition of administrative penalty, willful failure by such person to

keep any record and to supply the correct and accurate information at the time required
herein, shall be subject to the criminal penalty under the relevant provisions of the Tax
Code of 1997, upon conviction of the offender.
The imposition of any of the penalties under the Tax Code of 1997 and the compromise
of the criminal penalty on such violations, notwithstanding, shall not in any manner relieve
the violating taxpayer from the obligation to submit the required documents.
Finally, the corresponding administrative penalty shall be imposed on every violation of

the provisions of these Regulations, upon due notice and demand by the BIR. A subpoena
duces tecum for the submission of the required documents shall be issued on the second
offense. A third offense shall set the motion of a criminal prosecution of the offender.
In cases where a violation hereof is allowed to be compromised, the submission of the

unsubmitted lists should always form part of the obligation of the taxpayer to be embodied
in the compromise agreement.
SECTION 15. Repealing Clause - The provisions of all internal revenue issuances as
well as rulings inconsistent herewith are hereby amended or revoked accordingly.
SECTION 16. Effectivity - These regulations shall take effect after fifteen (15) days
following its publication in a newspaper of general circulation.

Recommending Approval:
(SGD.) LILIAN B. HEFTI

Commissioner of Internal Revenue
--o0o--
Revenue Memorandum Circular No. 72-2008
Prescribes and Clarifies the Guidelines and Procedures in the Issuance

of Taxpayer Identification Number (TIN) to Securities and Exchange
Commission’s (SEC) Registrants Pursuant to Memorandum of Agreement
(MOA) Between the SEC and the BIR in the Implementation of the Electronic
Exchange of Information Among Government Agencies, In Relation to the
Implementation of Revenue Memorandum Order No. (RMO) 30-2005
Hereunder are clarifications in the form of basic questions and answers concerning
the issuance of TIN to SEC registrants relative to the implementation of RMO No. 30-2005:
Q1: Who are to be issued pre-generated TIN?
A1: All newly formed corporations, partnerships, associations and other organiza-
tions subject to SEC registrations, with no existing TIN are to be issued pre-generated TIN
by SEC-Head Office, which must be indicated on the SEC Certificate of Registration.
However, for corporations, partnerships, associations and other organizations registered
at SEC-Extension Office, the concerned RDO shall issue system or pre-generated TIN to
the same until SEC-Extension Office is capable of issuing pre-generated TIN.
Q2: In case where a corporation, partnership, association or other organiza-

tion subject to SEC registration was issued a pre-generated TIN by SEC and such
corporation and/or partnership immediately proceeds to the RDO, but the TIN has
not yet been uploaded to the ITS database, how will the RDO manage such
scenario?
A2: For computerized RDO, the pre generated TIN issued by SEC shall be encoded to
ITS Registered System.
For non-computerized RDO, the pre-generated TIN shall be encoded to stand

alone Taxpayer Record Update (TRU) Encoding Program. Thereafter, the RDO shall
submit the same for uploading to the System Operations Division (SOD), thru-e-mail at
tru-sod@bir.gov.ph with subject line “SEC registrants for uploading” on or before the 25th
day of the month.
Q3: In REG-ITS, whenever an RDO cannot view / encode the registration de-
tails of the corporation, partnership, association and other organization subject to
SEC registration, with the message “Record already exists” and/or “Unable to
insert” and/or “Unable to capture” respectively, how will the RDO resolve such
scenario?
A3: The RDO shall report it to its respective Helpdesk for escalation to and immediate
resolution by ISDS. Upon resolution by ISDS, the Helpdesk shall instruct the RDO to
either view or encode again to ITS.
Q4: If a corporation, partnership, association and other organization, with is-

sued pre-generated TIN by SEC, was uploaded to a different RDO other than the
RDO where the corporation and/or partnership should have been registered/up-
loaded, will the RDO fix such problem?
A4: For computerized RDO, the RDO where the taxpayer’s TIN was incorrectly up-
loaded shall immediately transfer the registration of the taxpayer to its rightful RDO, upon
discovery of the wrong upload or upon request of the taxpayer.
For non-computerized RDO, the RDO shall request the SOD – BIR National Office, to
transfer the registration of the corporation and/or partnership.
In both cases, the provisions of RMO- 40-2004 shall be followed for such transfer.
Q5: What will the RDO do in cases where the corporation, partnership, asso-
ciation and other organization subject to SEC registration, uses a different busi-
ness address or trade name from the business address or trade name indicated in
the issued SEC registered Certificate?
A5: The RDO will require the taxpayer to immediately update its registered address or
trade name thru BIR Form No. 1905 and submit required supporting documents for proper
updating in the Registration System.
Q6: In case the RDO mistakenly issues another TIN for a corporation, partner-
ship, association and other organization subject to SEC registration, with pre-
generated TIN issued by SEC, which TIN shall be retained?
A6: If both TINs have no transactions yet, the pre-generated TIN issued by SEC shall
be retained. But, if both TINs have transaction, the one with more transactions shall be
retained.
Q7: What is the sanction/penalty for issuing multiple TINs?
The RDO, particularly the TSS personnel, shall be responsible for the mistakenly
issued TIN, subject to the sanction/penalty provided under RMO 11-2000 regarding the
issuance of multiple TINs, to wit:
for first offense - Reprimand

for second offense - Suspension for 30 days
All revenue officials and employees are enjoined to give this Circular as wide a
publicity as possible.
(SGD.) SIXTO S. ESQUIVIAS IV

Commissioner of Internal Revenue
BUREAU OF PLANT INDUSTRY

BPI Quarantine Administrative Order No. 01 s. 2008
Guidelines for the Implementation of the Australian Fumigation

Accreditation Scheme (AFAS) in the Philippines
WHEREAS, the Australian Quarantine Inspection Service (AQIS) recorded nu-

merous interceptions of shipment from different exporting countries, including the Philip-
pines due to failure of fumigation done at the country of origin:
WHEREAS, the Philippines is exporting to Australia commodities such as handi-

crafts furniture and wood packaging materials, which are subject to Methyl Bromide Fumi-
gation as a phytosanitary requirement;
WHEREAS, The Australian Fumigation Scheme (AFAS) was developed by AQIS

which aims to : (1) provide system for monitoring and registering fumigation providers, (2)
enhance technical expertise through training and administration capacity building, (3)
maintain a high standard of fumigation performance and compliance and, (4) reduce me-
thyl bromide use.
WHEREAS, in May 2006, AQIS and the Bureau of Plant Industry (BPI) signed a
Memorandum of Agreement for the implementation of AFAS in the Philippines to address
fumigation failures;
NOW THEREFORE, pursuant to the authority vested in me as the Director of the

Bureau of Plant Industry by PD 1433 otherwise as the Plant Quarantine Decree of 1978,
this Administrative Order is hereby promulgated as follows:
Section 1. Definitions
AFAS – Australian Fumigation Accreditation Scheme

AFAS Accredited Officer - an officer of the BPI-PQS who has been assessed
as competent in accordance with AFAS requirements.
AFAS Accredited Fumigator – a fumigator (private individual) who has been
assessed as competent in accordance with AFAS requirements.
AFAS Registered Treatment Provider – an AFAS registered fumigation
company
AQIS – Australian Quarantine and Inspection Service.
AQIS Methyl Bromide Fumigation Standard – the approved methodology
for performing effective methyl bromide fumigation treatments.
BPI-PQS – Bureau of Plant Industry-Plant Quarantine Service, the agency
responsible for the administration and management of AFAS in the Philippines.
Joint System Review (JSR) – the annual review of AFAS operations conduct
jointly by AQIS and BPI-PQS
Philippines AFAS Training Team – team recognized by AQIS to conducted
fumigation training in accordance with AFAS requirements
Section 2. Coverage. The guideline is for all methyl bromide fumigation treatments
bound for Australia
Section 3. Measures for Implementation
3.1 Philippine AFAS Training Team
BPI shall establish the AFAS training team, composed of both the BPI and the fumiga-
tion industry, to provide training for fumigators and other BPI-PQS officers. The team will
be given a “Train-the-Trainer’ training by AQIS.
3.2 Accreditation
Criteria for Accreditation
BPI-PQS Officers
3.2.1 Selected BPI-PQS Officers shall undergo the AFAS fumigation training in
accordance with the AQIS Methyl Bromide Fumigation Standard.
3.2.2 The training will cover both the theoretical and practical fumigation
procedures and will be conducted by the Philippine AFAS Training Team
recognized by AQIS.
3.2.3 Upon completion of the training the PQ officers will undergo an assessment
and if successful will be recognized as an AFAS accredited officer.
3.2.4 Competent AFAS accredited officers will be given an accredited number

and their respective PQ station will be assigned an AFAS registration number.
Fumigators (Private Individual)
3.2.5 Interested fumigators should submit to the Secretariat a duly accomplished

registration form, passport size picture and a copy of their FPA license for
evaluation.
3.2.6 Fumigators shall undergo AFAS fumigation training in accordance with

the AQIS Methyl Bromide Fumigation Standard.
3.2.7 The training will cover both the theoretical and practical fumigation
procedures and will be conducted by the Philippine AFAS Training Team
recognized by AQIS.
3.2.8 Upon completion of the training, the fumigators will undergo an assessment
and if successful, will be recognized as an AFAS accredited fumigator.
3.2.9 Competent AFAS accredited fumigators will be issued a certificate of

accreditation with a corresponding accreditation number.
3.2.10 If a fumigator is considered ‘not yet competent’, the fumigator may

request BPI for reassessment of up to three (3) times only. Otherwise, the
fumigator will be required to undergo re-training.
The certificate will:
- Include the name of the authorities (BPI and AQIS) issuing the certificate
- specify the relevant standard or standards for example, the AQIS Methyl
Bromide Fumigation Standard, against which competency has been
demonstrated
- include the accreditation number (eg. PHL0001)
- show the name of the person accredited
- have a current photo of the accredited person attached
- show the country where the course was conducted
- show the date of accreditation
- show the name of the authorized endorsing officer of the BPI
- include the signature of the authorized endorsing officer of the BPI
- reflect the official stamp of the BPI-PQS
AFAS accreditation is specific to individuals and recognizes their

competency. An individual’s accreditation stays with them if they change station/
fumigation companies.
Fumigators training course. The fumigation training will be conducted by the

Philippines AFAS Training Team in collaboration with third party organization/association
and will involve both theoretical and practical training. The third party organization/
association, as recognized by BPI through a memorandum of agreement, shall be
responsible in collecting approved training fees to defray the cost of food, venue, training
materials, equipment, training facilities and other miscellaneous expenses.
Suspension/Cancellation of Fumigation Accreditation. BPI has the authority to

cancel fumigator accreditation. In cases where an AFAS accredited fumigator conducted
treatments not in accordance with AFAS requirements, or the AFAS accredited fumigator
is implicated in fraudulent activities, the said fumigator will be notified in writing of the
reasons for cancellation of his accreditation and what options (appeals process) are available
to him to have his accreditation reinstated. The BPI will inform AQIS of the cancellation of
a fumigator’s accreditation. BPI will also maintain an up to date list of accredited fumigators.
Fumigation Technicians
BPI, in coordination with a third party organization/association, will conduct AFAS

fumigation training specifically for fumigation technicians who are under the responsibility
of the accredited fumigators. The training will include practical applications and procedures
in accordance to the AQIS MB Fumigation Standard.
3.2.11 Interested participants should submit to the Secretariat a duly accomplished reg-
istration form, passport size picture and a recommendation letter from their company.
3.2.12 Participants shall undergo training in accordance to the AQIS MB Fumigation

Standard conducted by the Philippines AFAS Training Team.
3.2.13 A Certificate of completion will be given by BPI.
3.3 Registration of Treatment Providers
3.3.1 Eligibility Requirements for Registrations. To be eligible for AFAS registration,

each treatment provider shall undergo an assessment to determine if they meet the follow-
ing requirements:
- clear understanding of their obligations as a participant in AFAS

- have a documented organizational structure prominently displayed that
clearly defines the roles and responsibilities of all company personnel.
- must employ sufficient AFAS accredited fumigators to ensure that the number
of treatments being performed can be adequately supervised
- have a copy of the AQIS MB Fumigation Standard
- adequate and sufficient equipment is available to perform the treatments in
accordance with AFAS requirements
- have record management procedures in place that will provide access to all
documentation relating to individuals treatments for at least two years from the
date of treatment
3.3.2 Registration Assessment. Each treatment provider applying for AFAS registra-
tion should submit the following documentary requirements (bring original and copy of
documents for verification) to the nearest PQ station:
- Duly accomplished application form

- SEC/DTI Registration
- Mayor’s Permit (current)
- 2x2 photo of the owner
- Company profile and structure
- Tax Identification Number (TIN)
- Latest Income Tax Return (ITR)
- Latest Financial Statement
- FPA license (company)
- List of fumigation equipment and materials with corresponding serial number
and identifying mark
- List and qualifications of AFAS-accredited fumigator and other fumigation
personnel
The treatment provider will be assessed by BPI accredited officer to determine if

they meet the registration requirements. The assessment will be based on the registration
requirements set under AFAS.
3.3.3 Register of Treatment Providers. BPI will establish and administer a register of
treatment providers participating in AFAS. The register must contain the following mini-
mum information on each provider:
- AFAS registration number

- company name
- address, telephone number, facsimile number and email address if applicable
- name and position of person(s) with management responsibility
- name(s) and accreditation numbers of AFAS accredited fumigators employed by
the company
- current registration status (see registration Status under 3.3.5)
Where companies have multiple branches, each branch is considered a separate

entity and each will be assigned a separate AFAS registration number. The registration
status of individual branches within a single company may be different at any one time.
3.3.4 AFAS Registration Number. Each registered treatment provider will be assigned
a unique AFAS registration number by the BPI. The AFAS number must be quoted in all
correspondence and included on all fumigation certificates accompanying treated con-
signments to Australia.
The format of the registration number is as follows: AFASPH0001
WHERE: PH is the ISO 2 –letter country code
0001 is a unique numeric identifier
The AFAS registration number issued to a treatment provider must not be used by or
reissued to another treatment provider under any circumstances
3.3.5 Registration Status. Registered treatment providers will fall into one of four cat-
egories:
Acceptable
The treatment provider has no current restrictions for treating goods for export to Aus-
tralia. Treatment certificates are accepted. Consignments are dealt with according to the
Import Conditions database (ICON) requirements or the import permit issued by Australia.
Under Investigation
The treatment provider is placed Under Investigation pending inquiries if BPI or AQIS
inspectors find live or evidence of live insect(s), that is, fresh frass in a consignment or
other evidence that may indicate an ineffective treatment. All future consignments treated
by provider listed as ‘Under Investigation’ may either be referred for a full unpack and
inspection to confirm adequacy of treatment or refumigation either in the Philippines or in
Australia
Suspended
A treatment provider is considered ‘Suspended’ when one major violation is commit-

ted:
Major violations (which leads to fumigation failure): underdosing, fumigation of unsheeted

containers without pressure testing, non-use of vaporizer, no gas concentration readings,
no aeration, fumigation without AFAS-accredited fumigator and audit failure.
Minor violations include all other violations of the AQIS Methyl Bromide Fumigation
Standard.
For minor violations, 1st offense is warning, 2nd offense is suspension.
Treatment certificates of ‘Suspended’ treatment providers are not accepted and con-
signments must be re-treated in Australia or re-exported to the country of origin or de-
stroyed. A ‘Suspended’ treatment provider will have its ‘Acceptable’ status restored once
it has passed a reinstatement audit. Once treatment provider has been ‘Suspended’ for a
third time, this status becomes permanent and the treatment provider may no longer treat
consignments for Australia.
Withdrawn
A treatment provider can withdraw voluntarily from AFAS without penalty, when they no
longer employ an AFAS accredited fumigator. Treatment certificates are not accepted and
consignments are either re-treated in Australia or re-exported to the country of origin or
destroyed. A treatment provider can be reinstated as ’Acceptable’ when they re-employ an
accredited fumigator and meet all other AFAS requirements to the satisfaction of the BPI
and concurrence of AQIS.
3.3.6 Change of Treatment Provider Registration Status and Other Details.

BPI will advise the registered treatment provider of any change to their registration
status, including the reason for the change and the date from which it will take
effect. Where a registered treatment provider has been suspended by the BPI
or has voluntarily withdrawn from AFAS, they are required to pass a reinstatement
audit to regain the status of ‘Acceptable’ treatment provider.
Registered treatment providers are responsible for notifying the BPI of:
- changes to address or other contact details

- changes in management
- changes to accredited personnel employed by the registered treatment provider.
BPI will update their register accordingly and forward the amendments to AQIS for
updating the Offshore Treatment Providers List on the AQIS website.
3.3.7 Publishing the Treatment Providers List. BPI will provide AQIS with a list
of AFAS registered treatment providers and their details including their current
status. Based on the Agreement. AQIS will publish the initial list on its website
so that it is publicly available on the date of official AFAS implementation. AQIS
updating is done if there are changes to the details on one or more registered
treatment providers.
3.4 Accreditation of Commercial Fumigation Sites
An accreditation for commercial fumigation site intending to fumigate container-

ized cargo shall be secured from BPI-PQS. Only accredited sites for container fumigation
can be used for treatment of products/shipment bound for Australia
3.4.1 The owner/representative of the fumigation site may apply for accreditation
and submit the following documentary requirements:
- Duly accomplished application form
- SEC/DTI Registration
- Mayor’s Permit (current)
- 2x2 photo of the owner and representative
- Company profile and structure
- Tax Identification Number (TIN)
- Latest Income Tax Return (ITR)
- Latest Financial Statement
- Lay-out of the site/capacity
3.4.2 An evaluation of the site will be conducted by BPI accredited officers

based on the site requirements set under the AQIS MB Fumigation Standard.
3.4.3 If the site is compliant, a Certificate of Accreditation will be issued by
BPI.
3.4.4 It is the responsibility of the owner/representative to submit monthly reports
to the BPI-PQS on the details of fumigation (bound for Australia) done at their
site.
3.4.5 Renewal of accreditation should be done yearly.
For sites to be used for lose cargo fumigation, it is the responsibility of the
AFAS registered treatment provider and its accredited fumigator to ensure that
the requirements set under the AQIS MB Fumigation Standard is complied.
3.5 Fumigation Requirements and Procedures
The fumigation requirements and procedure must be in accordance to the AQIS

Methyl Bromide Fumigation Standard. This includes the following:
- Fumigation consideration – risk assessment, commodity, dosage and

temperature
- The fumigation site
- Preparing the commodity
- The fumigation enclosure
- Preparing the fumigation enclosure
- Calculating the dosage of fumigant required
- Performing the fumigation
- Monitoring and maintaining fumigant concentrations
- Completing the fumigation
All fumigation treatments must be conducted by an AFAS registered treatment

provider and supervised by its accredited fumigator. All documentations to every fumiga-
tion work must be properly kept for audits.
3.6 Treatment Certificates
Treatment Certificates must accompany all goods treated by the registered treatment
provider. The certificate must be on the official letterhead of the registered treatment
provider. All details must be legible and written in English. Erasures and alterations are
not acceptable. The treatment certificate must contain the following details:
- AFAS registration number prominently displayed

- certificate number
- description and quantity of goods being treated
- consignment link (container number etc.)
- name and address of the shipper/exporter
- country of origin and the port of loading
- name and address of the consignee
- port of entry
- date of treatment (date of aeration or completion of the fumigation)
- place of treatment
- fumigant used
- dosage
- exposure period
- minimum ambient temperature during treatment
- date, time and threshold limit value (TLV) at clearance
- date the certificate was issued
- name and signature of the accredited fumigator responsible for supervising
the treatment
Certificates for treatment can only be issued by an accredited fumigator listed as

employed by an registered treatment provider. As an exemption, an accredited fumigator
may issue certificates for and in behalf of another BPI registered treatment provider NOT
his present employer, provided there is written approval issued by the BPI-PQS Chief
recognizing this arrangement.
If a Phytosanitary Certificate is also required in addition to the treatment certifi-

cate, exporters/ registered treatment provider must apply to BPI-PQS for inspection and
phytosanitary certification, at least 48 hours prior to the scheduled treatment.
3.7 Endorsement of Treatment by BPI-PQS Accredited Officers.ndorsement of Treat-

ments by BPI-PQS Accredited Officrs.
An AFAS accredited officer may issue a fumigation certificate if an AFAS registered
treatment provider is currently not listed as ‘Acceptable’ or if an AFAS registered treatment
provider’s accredited fumigator is not available or a treatment provider is not yet registered
provided that:
- the AFAS accredited officer monitors the treatment to ensure that it is effective
and conducted in accordance with AFAS requirements
- BPI-PQS AFAS registration number is on the certificate
- AFAS accredited officer signs and dates the certificate
- treatment certificate bears the official stamp of the BPI-PQS
This endorsement may only be allowed in emergency cases where methyl bromide
fumigation is deemed very necessary and with prior approval from the BPI-Director
3.8 Monitoring
3.8.1 AFAS registered treatment providers are required to submit in advance

(at least 48 hours) their schedule of fumigation to the nearest BPI-PQS Station.
3.8.2 To guide all the stakeholders in this scheme in its initial implementation,
there will be mandatory supervision by AFAS accredited officers for AFAS
fumigations conducted by AFAS registered treatment provider for the first six
(6) months
3.8.3 After six (6) months, random monitoring of at least once a week will be
implemented.
3.9 Audit of Registered Treatment Providers
BPI will establish and maintain an audit program to monitor the performance of registered
treatment providers and ensure compliance with AFAS requirements. There will be
announced and unannounced audits (minimum of one audit per month) to be conducted by
the BPI Evaluation and Audit Team.
Audits shall be done in accordance with AFAS protocols and the Fumigator Audit
Procedure, to assess the on-going capacity of registered treatment providers to conduct
fumigation treatments. Audits will include documentations of the following:
- Fumigation equipment/materials purchased/inventory

- Fumigation worksheet/record to every fumigation work
- Fumigation Certificates issued
- Other relevant records that may be requested by the BPI Evaluation and
Audit Team
Any registered treatment provider that cannot demonstrate capacity to conduct

treatments in accordance with AFAS protocols shall be promptly suspended or face can-
cellation of registration. The registration shall not be reinstated after BPI-PQS has con-
ducted further audit whereby the treatment provider is able to demonstrate a capacity to
conduct fumigation treatments in accordance with AFAS protocols.
BPI shall promptly notify AQIS of the suspension or de-registration of any regis-
tered treatment provider.
3.10 Joint System Reviews
The annual Joint System Review (JSR) provides an opportunity for the BPI and
AQIS to jointly assess the effectiveness of AFAS and where appropriate, identify potential
improvements to its operations.
With agreement of both parties, the JSR may involve one or more of the following:
" review the administrative arrangements put in place by BPI, such as

- training, assessment and accreditation of BPI-PQS officers
- training assessment and accreditation of fumigators
- registration of treatment providers
- maintenance of the treatment providers registry
- records management procedures
" review the audit program implemented by BPI
" jointly conduct audits of registered treatment providers.
3.11 Maintenance of Records
BPI-PQS shall maintain for a period of not less than two (2) years all records
relating to the assessment, registration and auditing of treatment providers and the en-
dorsement of fumigation treatments by AFAS accredited officers during emergency cases.
Section 4. Implementation Date
AFAS implementation in the Philippines will commence on December 1, 2008.
This order shall take effect immediately after publication.

(SGD.) JOEL S.RUDINAS, CESO IV
Director
Approved:
Secretary of Agriculture
--o0o--
-o0o-
BPI Quarantine Administrative Order No. 02, s. 2008
Rules and Regulations for the Importation, Exportation and Domestic

Movement of Irradiated Plants and Plant Products and the Use of
Irradiation as Phytosanitary Treatment
WHEREAS, the Philippines is a member of the International Plant Protection

Convention (IPPC), an international treaty securing action to prevent the spread and
introduction of pests of plants and plant products, and to promote appropriate measures
for their control.
WHEREAS, contracting parties of the IPPC adopts International Standards for

Phytosanitary Measures (IPSMs) which are standards, guidelines and recommendations
recognized as the basis for phytosanitary measures by World Trade Organization (WTO)
members under the Agreement on the Application of Sanitary and Phytosanitary (SPS
Agreement).
WHEREAS, in 2003 the Interim Commission on Phytosanitary Measures (ICPM)

of the IPPC approved ISPM No. 18, providing technical guidance on the specific procedures
for the application of ionizing radiation as a phytosanitary treatment for regulated pests or
articles.
WHEREAS, the Bureau of Plant Industry (BPI), being the National Plant Protection
Organization (NPPO), is responsible for the Phytosanitary aspects of evaluation, adoption
and use of irradiation as a phytosanitary measure, and to the extent necessary, should
cooperate with other national or international regulatory agencies such as the Philippine
Nuclear Research Institute (PNRI) which has the mandate to regulate irradiation facilities
using radioactive sources such as cobalt-60 and cesium-137 and the Bureau of Health
Devices and Technology (BHDT) which has the mandate to regulate irradiation facilities
using radiation emitted by electronic and electrical devices such as electron beam and X-
ray.
WHEREAS, irradiation is increasingly accepted internationally as a quarantine

treatment, providing effective means of disinfesting/disinfecting plants and plant products
for quarantine purpose.
NOW, THEREFORE, pursuant to the provisions of Section 17 of the Presidential

Decree No. 1433, the Director of Bureau of Plant Industry hereby issue this Order governing
the importation, exportation and domestic movement of irradiated plants and plant products
and the use of irradiation as phytosanitary treatment.
GENERAL PROVISION
Section 1. Definition of Terms and Abbreviations
The following terms when used in this Administrative Order shall mean as follows:
Absorbed dose- Quantity of radiation energy absorbed per unit of mass of a specified
target. The SI unit is gray (Gy)
Commodity - A type of plant, plant product, or other article being moved for trade or other
purpose
Consignment - A quantity of plants, plant products and/or other articles being moved from
one country to another and covered, when required, by a single phytosanitary certificate
Domestic movement - Movement of commodity from one locality to another within the
country
Dose mapping - Measurement of the absorbed dose distribution within a process load
through the use of dosimeters placed at specific locations within the process load
Dosimeter – A device that, when irradiated exhibits a quantifiable change in some property
of the device which can be related to the absorbed dose in a given material using appropri-
ate analytical instrumentation and techniques
Dosimetry - A system used for determining absorbed dose, consisting of dosimeters,

measurement instruments and their associated reference standards, and procedures for
the system’s use
Efficacy – A defined, measurable and reproducible effect by a prescribed treatment
Exportation – The act of transporting commodities from a local port to a foreign port
Gray (Gy) - Unit of absorbed dose where 1 gray (Gy) is equivalent to the absorption of 1
joule per kilogram
Kilogray (kGy)) – Unit of absorbed dose which is equivalent to 1,000 gray (Gy)
Importation – The act of bringing into the country foreign commodities for planting, con-
sumption, manufacturing, domestication or for any other purpose
Inspection - Official visual examination of plants, plant products or other regulated ar-
ticles to determine if pest are present and/or to determine compliance with phytosanitary
regulation
Ionizing radiation – Charged particles and electromagnetic waves that as a result of physi-
cal interaction create ions by either primary or secondary processes
Irradiation – Treatment with any type of ionizing radiation
Lot – A number of units of single commodity, identifiable by its homogeneity of composi-

tion, origin, etc., forming part of a consignment
Minimum absorbed dose - The localized minimum absorbed dose (Dmin) within the pro-
cess load
Non-Target Quarantine Pest - A pest quarantine importance that is not known to be

neutralized by the irradiation
Pest – Any species, strain or biotype of plant, animal or pathogenic agent injurious to
plants and plant products
Phytosanitary certification – Use of phytosanitary procedures leading to the issuance of a

Phytosanitary Certificate
Plant products – Unmanufactured material of plant origin (including grain) and those manu-
factured products that, by their nature or that of their processing, may create a risk for the
introduction and spread of pests
Plants – Living plants and parts thereof, including seeds and germplasm
Target Quarantine Pest – A pest of quarantine significance that will be neutralized by the
approved dose
Treatment – Official procedure for the killing, inactivation or removal of pests or for render-
ing pests infertile or for devitalization
Abbreviations:
BPI – Bureau of Plant Industry

BHDT – Bureau of Health Devices and Technology
IPPC – International Plant Protection Convention
ISPM – International Standard for Phytosanitary Measures
NPPO – National Plant Protection Organization
PNRI – Philippine Nuclear Research Institute
PQS – Plant Quarantine Service
Section 2. Coverage
This Order covers the (a) importation, exportation and domestic movement of
irradiated living plants, and parts thereof, plant products or unmanufactured material of
plant origin and semi-processed plant products or manufactured products that, by their
nature or that of their processing, may create a risk for the introduction and spread of
pests, and (b) the use of irradiation as a phytosanitary treatment.
IMPLEMENTATION RULE
Section 3. Irradiation Facility Approval
Irradiation facility should be approved by the NPPO in the country where the facil-
ity is located prior to applying phytosanitary treatments. It covers both local and foreign
facility, both for import, export and local trade.
A. Requirements for Approval
1. Local Facility
a. Documentary requirements
i. Duly accomplished application form

ii. Copy of Securities and Exchange Commission (SEC) Registration or
Department of Trade and Industry (DTI) Business Permit, whichever is applicable
iii. Copy of Mayor’s Permit
iv. Company/facility profile
v. Tax Identification Number (TIN) and latest Income Tax Return (ITR) where
applicable
vi. Location map of the treatment facility
vii. License from PNRI (if using radioactive source such as cobalt-60 and cesium-
137) or BHDT (if using electrically generated radiation such as electron beam
or X-ray)
viii. Documented Standard Operating Procedures describing in detail the
treatment facility system and procedures including all processes from handling,
treatment, and post treatment safeguarding of commodity
ix. List of probable commodities to be treated at the facility
b. Passed the facility inspection conducted by a BPI authorized officer
c. Passed the actual facility testing to be supervised by a BPI authorized officer
d. Facility compliance agreement completed and signed by all appropriate

officials
e. Other requirements that maybe deemed necessary
2. Foreign Facility
a. Letter of intent for facility approval from the NPPO where the facility is located
b. Certificate of approval by the NPPO of the country where the facility is located
c. Philippine verification of the facility and final approval
B. Procedure for Facility Approval
1. Local Facility
a. Interested local facility/company should file an application for approval to the BPI
b. Original and photocopy of the above-mentioned requirements should be presented
c. Interested local facility / company should request for facility inspection and testing at
the BPI-PQS
d. A duly authorized Plant Quarantine Officer/Inspector shall inspect and evaluate the
treatment facility and shall conduct actual testing
e. The Plant Quarantine Officer/Inspector shall submit a report of the inspected facility and
the result of the actual testing conducted to the Chief of the Plant Quarantine Service
f. Signing of Facility Compliance Agreement. The agreement shall be concluded between
the company/facility and the BPI which shall include the following:
- BPI’s approval of the facility;

- Monitoring programme administered by BPI;
- Audit provisions including unannounced visits;
- Free access to documentation and record of the treatment facility; and

- Corrective action to be taken in cases of non-compliance.
g. Recommendation by the PQS Chief prior to the final approval of the BPI Director
h. Certificate of Approval shall be issued with the assigned code
2. Foreign Facility
For foreign facility, the NPPO of the country where the facility is located shall endorse
the application for facility approval to the BPI. The BPI shall review and evaluate the
application and if necessary shall conduct an actual visit of the facility for verification and
final approval.
C. Treatment
The use of irradiation as a phytosanitary measure shall prevent the introduction or

spread of regulated pests. This may be realized by achieving certain responses in the
targeted pest(s) such as: mortality, preventing successful development (e.g. non-emer-
gence of adults), inability to reproduce (e.g. sterility) or inactivation.
Ionizing radiation may be provided by radioactive isotopes (gamma rays from cobalt-
60 or cesium-137), electrons generated from machine sources (up to 10 MeV) and X-ray
machine (up to 5MeV).
Treatment dose for a specific commodity must be determined based on science through
bilateral agreement between Philippines and its trading partner. For local trade, the NPPO
shall issue and adopt guidelines for specific target pest that may be developed in the
future.
The following are the treatment requirements:
- Treated commodities shall be certified and released only after dosimetry

measurements confirm that the DMin was met
-Re-treatment of consignments may be allowed, provided that the maximum
absorbed dose is within the limits allowed by the importing country
- Treatment shall be done only by facilities approved by the Bureau of Plant
Industry
- Treatment shall be done in the presence of Plant Quarantine Officer/Inspector
- Dose rate, treatment time, temperature, humidity, and ventilation should be
carefully considered when conducting treatments
D. Dosimetry
1. Calibration
- All components of the dosimetry system shall be in accordance with
international dosimetry standards
- BPI shall assess performance of the dosimetry system
2. Dose mapping
- Dose mapping shall be done in accordance with documented standard

operating procedures.
- Dose mapping shall be conducted to fully characterize the dose distribution

within the irradiation chambers and commodity, and demonstrate that the
treatment consistently meets the prescribed requirements under defined and
controlled conditions.
- Independent dose mapping shall be done for incomplete as well as first and
last process loads (for continuous irradiation) to determine if the absorbed-
dose distribution is significantly different from a routine load and to adjust the
treatment accordingly.
3. Routine Dosimetry
- As part of the verification process, an accurate measurement of absorbed

dose in a consignment should be ensured to determine and monitor treatment
efficacy.
- The required number, location and frequency of the measurements should

be prescribed based on the specific equipment, processes, commodities,
relevant standards and phytosanitary requirements.
- Dosimeters verification shall be carried out to evaluate for stability against

the effects of variables such as light, temperature, humidity, storage time, and
the type and timing of analyses required.
E. Packaging and Labeling
1. Packaging
In order to avoid infestation after irradiation, commodities should be packed in materi-

als that provide an effective barrier to re-infestation. Packaging shall conform to the re-
quirements of the NPPO of the importing country. The size and shape of containers are
determined, in part, by the operating characteristics of the irradiation facility. These char-
acteristics include the product transport systems and the irradiation source, as they affect
the dose distribution within the container.
2. Labeling
Packages/boxes shall be marked with at least the following identifying feature to allow
identification of treatment lots and trace-back:
- name of product and quantity

- treatment facility code
- packing facility identification number and location
- treatment facility identification number and location
- grower/production area code
- treatment lot numbers
- prescribed treatment
- date of packing
- treatment date
- radura symbol (optional)
All packages should be labeled “Treated with Radiation” or “Treated by

Irradiation”
F. Verification
Adequacy of treatment facilities and processes shall be verified through monitoring

and audit of facility treatment records that include, direct treatment oversight. The level of
oversight should be sufficient to detect and correct deficiencies promptly.
G. Documentation by the treatment Facility
BPI shall be responsible for monitoring records and documentation of the treatment
facility and ensuring that records are available to concerned parties.
1. Documentation of procedures
Documented procedures help ensure that commodities are consistently treated as

required. At a minimum, an agreed written procedure should address the following:
- consignment handling procedure before, during and after treatment;

- orientation and configuration of the commodity during treatment;
- critical process parameters and the means for their monitoring;
- dosimetry;
- contingency plans and corrective actions to be taken in the event of treatment
failure or problem with critical treatment processes;
- procedures for handling rejected lots; and
- labeling, recordkeeping, and documentation requirements.
2. Facility records and traceability

Treatment facility operators shall keep records which shall be available to BPI for
review when necessary and shall be kept for at least one year. Records that maybe re-
quired include:
- minimum and maximum absorbed doses (target and measured);
- name of clients and their details;
- commodity treated;
- purpose of treatment;
- lot size, volume and identification, including number of articles or packages;
- date of treatment; and
- any observed deviation from treatment specification.
Section 4. Accreditation of Exporter and Packing Facility
All exporters intending to export irradiated plants and plant products shall apply
for accreditation at the nearest Bureau of Plant Industry-Plant Quarantine Service (BPI-
PQS) office with the following requirements and procedure:
A. Requirements for Accreditation
1. Documentary Requirements
i. Duly accomplished application form

ii. Copy of Securities and Exchange Commission (SEC) Registration or
Department of Trade and Industry (DTI) Business Permit, whichever is applicable
iii. Copy of Mayor’s Permit
iv. Company / facility profile
v. Tax Identification Number (TIN) and latest Income Tax Return (ITR) where
applicable
vi. Location map of the packing facility
2. Standard Operating Procedure of the packing house
3. Other requirements that may be deemed necessary
B. Procedure for Accreditation
1. All interested exporters shall file an application for accreditation to the nearest BPI-PQS
with the above-mentioned requirements.
2. BPI shall validate the application and whenever necessary, the BPI-PQS shall conduct
an interview which shall cover Plant Quarantine Law and Rules and Regulations.
3. Interested exporters should request for packing facility inspection to BPI-PQS.
4. A duly authorized Plant Quarantine Officer/Inspector shall inspect and evaluate the
packing house facility.
- Packing house facility should be in good condition;

- Packing house should be hygienically maintained and sprayed with
insecticides; to include surrounding premises so as to exclude the entry of
pests;
- Packing house must be equipped with net (Less than 1.6x1.6mm) for any
opening to prevent entry of pests;
- Packing house must have sufficient water supply for cleaning;
- Packers should wear hairnets within the packing house; and
- Packing house should have sufficient lighting.
5. The Plant Quarantine Officer/Inspector shall submit a report of the inspected packing
house facility to the Chief of the Plant Quarantine Service.
6. Recommendation by the Chief PQS for final approval of the BPI Director.
7. Upon completion of the abovementioned requirements, BPI-PQS will issue a Certificate

of Accreditation with assigned code.
8. Any accredited exporter who violates the Plant Quarantine Law, rules and regulations of
this protocol will be delisted as an accredited exporter and its Certificate of Accreditation
shall be revoked. Re-accreditation shall only be possible upon compliance of all corrective
measures based on thorough plant quarantine investigation.
Section 5. Suspension and Reinstatement of Facility
A. Suspension
The following are the grounds for suspension:
1. Exporter/Packing Facility
- Non compliance with the set standards for a packing house facility
- Tampering/alterations of the Phytosanitary Certificate
- Tampering/alterations of labels of the packages or boxes intended for export
- Problems detected by the Plant Quarantine Officer during audit.
- Failure to inform the BPI-PQS of the changes made in the packing facility
and in the operational procedures that may substantially affect the export
- Packing of commodity without the presence of the Plant Quarantine Officer
2. Treatment Facility
- Repeated non-compliance (twice) of treatment facilities with the set standards

and regulations shall result to suspension of the facility
- Problems detected by the Plant Quarantine Officer during audit.
- Conduct of treatment without the presence of the Plant Quarantine Officer.
- Failure to inform the BPI-PQS of the changes made in the facility and in the
operational procedures that may substantially affect any aspect of the treatment
process
B. Re-instatement of Facility
Re-instatement of the packing house and treatment facility shall only be granted
when corrective measures have been undertaken
C. Procedure for re-instatement
1. The packing/treatment facility shall request for re-instatement to the BPI.

2. BPI shall review and evaluate the request.
3. BPI shall visit the facility (packinghouse and/or treatment facility) and conduct
inspection.
4. BPI shall conduct actual testing of the treatment facility (calibration, dose
mapping and routine dosimetry) for certification.
5. Approval of BPI for re-instatement.
Section 6. Inspection and Phytosanitary Certification
A. Export Inspection
1. Packinghouse Facility
a. A BPI Plant Quarantine Officer shall be assigned to inspect the packing

process at the packing area.
b. BPI Plant Quarantine Officer shall verify that all cartons are properly packed,
sealed and labeled.
c. The BPI Plant Quarantine Officer shall carry out inspection on specified
sample size based on protocol agreed with a trading partner.
2. Irradiation Facility
a. Treated commodities shall be separated from non-treated commodities.

b. Treated commodities shall be safeguarded in holding rooms to prevent
unauthorized entry and re-infestation.
c. Documentation verification shall be done by the BPI to check for
completeness and accuracy as the basis for certifying the treatment.
d. Treated commodities shall be properly labeled and must bear the appropriate
markings prior to release.
B. Phytosanitary Certification
BPI shall issue Phytosanitary Certificate signed by a deputized Plant Quarantine

Officer upon compliance with the requirements.
C. Import Inspection
Import inspection shall be carried out in accordance with bilateral agreement between
Philippines and the exporting country taking in consideration the following:
- target pest/s
- non-target pest
- verification of efficacy of the treatment
1. All Importers should apply for inspection/clearance at least 24 hours prior to

arrival of the consignment for all commodities treated with irradiation.
2. Upon arrival, commodities shall be subjected to inspection and clearance
by the Plant Quarantine Officer/ Inspector.
3. All shipment should have the proper label/markings.
4. The following measures shall be followed in the event of the following situations:
Detection of target pest(s) when mortality is not the required response
- Detection of live stages of target pests should not be considered treatment

failure resulting in non-compliance, unless the integrity of the treatment system
is inadequate
- Laboratory or other analyses may be performed on surviving target pest(s) to
verify treatment efficacy
Detection of target pest(s) when mortality is the required response
- Live target pests maybe found when transport times are short, but should
not normally result in consignment refusal, unless the established mortality
time has been exceeded
Detection of pests other than target pests(s)
- Should be assessed for risk posed and appropriate measures done, taking
into consideration the effect of treatment on the non-target pest(s)
- Consignment maybe detained and any appropriate action may be taken by

the BPI
D. Notification of Non-Compliance and Emergency Actions
The BPI should immediately notify the NPPO of the exporting country if they have
identified non-compliance with specified phytosanitary requirements. This is to give the
exporting country an opportunity to investigate instances of apparent non-compliance, and
correct as necessary. The following maybe considered as significant failures;
- Failure to comply with documentary requirements, including:

a. Absence of phytosanitary certificates
b. Uncertified alterations or erasures to phytosanitary certificates
c. Serious deficiencies in information on phytosanitary certificates
d. Fraudulent phytosanitary certificates
- Prohibited consignments
- Evidence of failure of specified treatments
- And other significant failures
Notification should include information as stipulated in ISPM No. 13 “Guidelines for

the Notification of Non-compliance and Emergency Action”.
For non-compliance, the exporting country should investigate significant instances of

non-compliance to determine the possible cause with a view to avoid recurrence. Upon
request, the result of the investigation should be provided to the BPI.
Emergency actions may be undertaken by the Philippines based on the current

phytosanitary situation of the consignment.
APPENDICES
Bilateral agreements and detailed procedures (eg. Operational Work Plan and official
forms) shall form part of this Order.
LEGAL SANCTIONS
Any deficiencies in complying with the rules and regulations for the movement of
irradiated plants and plant products and the use of irradiation as phytosanitary treatment
or any violations of any provisions of this Administrative Order shall be ground for the
imposition of fines, suspension or revocation of the accreditation after due notice.
REPEALING CLAUSE
All existing rules and regulations inconsistent with this Order are hereby modified,
revoked or repealed accordingly.
EFFECTIVITY
This Order shall take effect fifteen (15) days after its publication in a national newspa-
per of general circulation.
(SGD.) JOEL S. RUDINAS, CESO IV
BPI Director
Approved:

Secretary
CAREER EXECUTIVE SERVICE BOARD

Resolution No. 746
Very Satisfactory Rating As A Requirement for the

Conferment of Career Executive Service Eligibility
WHEREAS, Article IV, Part III of the Integrated Reorganization Plan (IRP), approved
under Presidential Decree No. 1 dated September 24, 1972, created the Career Executive
Service Board (CESB) to serve as the governing body of the Career Executive Service
(CES) and to promulgate rules, standards, and procedures on the selection, classification,
compensation and career development of members of the Career Executive Service;
WHEREAS, Section 1, Article VII of CESB Resolution No. 459 dated 21 January
2003, re: Revised Rules on the Career Executive Service (CES) Eligibility provides that
“CES Eligibility shall be conferred to any person who passes the four stage CES Eligibility
Examination, and meets such other requirements as may be prescribed by the Board.xxx”;
WHEREAS, pursuant to these cited provisions, the Board expressed its concern
that applicants for CES eligibility should have at least acquired a “Very Satisfactory” rating
for the year immediately preceding the conferment of CES eligibility;
WHEREAS, the inclusion of this requirement is likewise pursuant to the objective

of the CES to form a continuing pool of well-selected career administrators who shall
provide competent and faithful service;
WHEREFORE, the abovementioned premises considered, the Board RESOLVES

as it is hereby RESOLVED, to require applicants for CES eligibility to have at least acquired
a “Very Satisfactory” rating under the Career Executive Service Performance Evaluation
System (CESPES) or its equivalent performance rating tool, for the year immediately
preceding the conferment of CES eligibility.
(SGD.) BERNARDO P. ABESAMIS

Chairperson
(SGD.) MARIA PAZ W. FORONDA

Vice Chairperson
(SGD.) CESAR D. BUENAFLOR (SGD.) ELMOR D. JURIDICO

Member Member
(SGD.) ANTONIO D. KALAW (SGD.) ROLANDO L. METIN

Member Member
(SGD.) JAIRUS D. PAGUNTALAN

Member
Attested by:
(SGD.) MA. THERESA C. NICOLAS

Board Secretary
-o0o-
Resolution No. 754
Endorsement of the Department Secretary/Agency Head As An

Additional Requirement for Original and Promotional Appointments
To Career Executive Service (CES) Ranks
WHEREAS, Presidential Decree No. 1 dated September 24, 1972, created the
Career Executive Service Board (CESB) to serve as the governing body of the Career
Executive Service (CES) and to promulgate rules, standards, and procedures on the
selection, classification, compensation and career development of members of the Career
Executive Service;
WHEREAS, CESB Resolution No. 718 dated February 21, 2008 provides for the
rules and procedures on original and promotional appointments to CES ranks;
WHEREAS, under Article III Section 1 of CESB Resolution No. 718, a CESO or
CES Eligible is required to submit certain documentary requirements, in addition to the
basic requirements for original and promotional appointments to CES ranks;
WHEREAS, the Board deemed it necessary to require the endorsement of the

Department Secretary/Agency Head as an additional requirement for original and promotional
appointments to CES ranks;
WHEREFORE, foregoing premises considered, the Board RESOLVES, as it is hereby

RESOLVED, to amend Article III, Section 1 of CESB Resolution No. 718 s. 2008 and to
include the endorsement of the Department Secretary/Agency Head as an additional
requirement for original and promotional appointment to CES ranks.
RESOLVED FURTHER, that the Board shall send an official communication to the
Department Secretary or Agency Head allowing him/her thirty (30) days to make the
necessary action, whether he/she is willing to endorse the qualified CES Eligible for original
or promotional appointment to CES rank.
RESOLVED FURTHERMORE, that in case the Department Secretary or Agency

Head fails to act within the thirty (30) day period provided above, the Board shall consider
the performance rating obtained by the CES Eligible for the year immediately preceding
the recommendation for appointment to CES ranks, provided the same is at least “Very
Satisfactory”.
Adopted: 11 July 2008

Chairperson
Vice Chairperson
(SGD.) CESAR D. BUENAFLOR (SGD.) ELMOR D. JURIDICO

Member Member

Member Member

Member
Attested by:

Board Secretary
-o0o-
Resolution No. 759
Original and Promotional Appointments to Career Executive

Service (CES) Ranks of Officials with Pending Cases
WHEREAS, on February 21, 2008 the Board passed CESB Resolution No. 718,
entitled “Rules and Procedures on Original and Promotional Appointments to Career Ex-
ecutive Service (CES) Ranks”;
WHEREAS, among the requirements for appointment to CES rank is the submission
of clearance from the Ombudsman and the Sandiganbayan, among others, to ensure that
no pending case is filed against the official/s concerned;
WHEREAS, in the Office of the President (OP) Search Committee meeting attended
by the CESB Executive Director, the Search Committee expressed willingness to process
recommendations for appointment to CES rank of those officials with pending cases in
the Ombudsman, provided the case does not involve moral turpitude;
WHEREAS, jurisprudence defined moral turpitude as “an act of baseness, vileness,

or depravity in the private and social duties which a man owes his fellow men, to society in
general contrary to the accepted and customary rule of right and duty between man and
woman, or conduct contrary to justice, honesty, modesty, or good morals; essentially, it
includes all crimes of which fraud is an element;
WHEREAS, to achieve efficiency, effectiveness, and uniformity in the processing of

applications for appointment to and promotion in CES ranks, there is a need for a uniform
set of guidelines to be implemented by the OP Search Committee and the Career Execu-
tive Service Board;
WHEREFORE, the above mentioned premises considered, it is RESOLVED as it is

HEREBY RESOLVED, to adopt the following guidelines on Original and Promotional Ap-
pointment to Career Executives Service (CES) Ranks of Officials with Pending Cases:
1. On cases filed with the Ombudsman:
a. If the case filed does not involve moral turpitude, the Board shall recommend
the appointment or promotion in rank of the official, after an exhaustive review of
the case.
b. If the case involves moral turpitude, the board shall not endorse the
appointment or promotion in CES rank until such time the official is finally
cleared or exonerated of the charges filed.
2. On cases filed with the Sandiganbayan: Such instances would constitute a bar to the
appointment to or promotion in CESO rank until such time the official is finally cleared or
exonerated of the charges filed.
3. On cases filed with the regular courts or quasi—judicial bodies:
a. If the case filed does not involve moral turpitude, the Board shall recommend
the appointment or promotion in rank of the candidate.
b. If the case involves moral turpitude, the Board shall not endorse the
appointment or promotion until such time the case is declared with finality.

Chairperson

Vice Chairperson
(SGD.) RICARDO L. SALUDO (SGD.) ELMOR D. JURIDICO

Member Member
Member Member

Member
Attested by:

Board Secretary
-o0o-
Resolution No. 760
Supplemental Guidelines in the Conduct of Performance

Validation On-the-Job
WHEREAS, the Board adopted CESB Resolution No. 459 series of 2002, provid-
ing for a four-stage examination process for the conferment of Career Executive Service
Eligibility: 1) Management Aptitude Test Battery (MATB); 2) Assessment of Managerial
Capability and Competence (Assessment Center); 3) Interview by the Board; and 4) Per-
formance Validation On-the-Job;
WHEREAS, the Performance Validation On-the Job is conducted purposely to

look into the applicant’s personal qualifications particularly his/her managerial capabilities
and potentials, leadership qualities, integrity, and performance record and accomplish-
ments;
WHEREAS, there have been instances where the results of the validation point to
an inadequacy of information to form a conclusion or judgment on the managerial capabil-
ity and performance of the applicant;
WHEREFORE, the abovementioned premises considered, the Board RESOLVES, as

it is hereby RESOLVED, that, in addition to the rules provided under Article VI of CESB
Resolution No. 459 s. 2002, applicants for CES eligibility shall not be allowed to undergo
the performance validation stage unless there is proof of continuous performance on-the-
job for at least (1) year.

Chairperson

Vice Chairperson
(SGD.) RICARDO L. SALUDO (SGD.) ELMOR D. JURIDICO

Member Member

Member Member

Member
Attested by:

Board Secretary
-o0o-
Resolution No. 764
Accreditation of the MNSA and MPSA Degrees Conferred by the NDCP and
PPSC, Respectively, as Equivalent to the CES Written Examination –
The First of the Four Stage CES Eligibility Examination Process
WHEREAS, Presidential Decree No. 1 dated September 24, 1972, created the
Career Executive Service Board (CESB) to serve as the governing body of the Career
Executive Service (CES) and to promulgate rules, standards, and procedures on the
selection, classification, compensation and career development of members of the Career
Executive Service;
WHEREAS, the aforementioned law likewise provides that “a person who meets
such managerial experience and other requirements and passes examinations as may be
prescribed by the Board shall be included in the register of career executive eligibles and
upon appointment to an appropriate class in the Career Executive Service, become an
active member of the Service;”
WHEREAS, the existing policy provides that CES eligibility shall only be conferred
to those who pass the four-stage examination process composed of the following: first
stage: Written Examination; second stage: Assessment Center; third stage: Performance
Validation on-the-job; and, fourth stage: Board Interview;
WHEREAS, Executive Order No. 771 dated 4 February 1982 provides that
“Graduates of the National Defense College of the Philippines (NDCP) belonging to the civil
service, and graduates of the Career Executive Service Development Program (CESDP)
who have not yet been appointed to a CESO rank shall be granted initially rank CES rank
V or higher depending upon the recommendation of the Ministry or agency head concerned
and evaluation of the Career Executive Service Board…”
WHEREAS, Executive Order No. 400 dated February 11, 1997 also provides that
“Graduates of Master in Public Safety Administration (MPSA) of the Philippine Public
Safety College (PPSC) belonging to the government service shall be granted the rank of
CESO VI with the corresponding salary grade of 25 and other privileges in the CES;
WHEREAS, the current policy of the Board only allow MNSA graduates who took
the MATB as the qualifying exam for their masteral degree to proceed to the Assessment
Center;
WHEREAS, given the present policy, graduates of MNSA or MPSA degree will no
longer be able to proceed to the CES eligibility process since both NDCP and PPSC are
no longer using MATB as their qualifying examination for the said degrees;
WHEREAS, numerous request were made to the Board to revisit its current policy on
the matter, taking into consideration its previous issuances and the interest of the CES
community;
WHEREAS, the accreditation will encourage MNSA and MPSA graduates to take the
opportunity to be conferred CES eligibility and subsequently be appointed to CESO ranks;
NOW THEREFORE, foregoing premises considered, the Board RESOLVES, as

it is hereby RESOLVED to restore the accreditation of the Master in National Security
Administration (MNSA) and the Master in Public Safety Administration (MPSA) degrees
conferred by the National Defense College of the Philippines (NDCP) and the Philippine
Public Safety College (PPSC), respectively, as equivalent to the Career Executive Service
(CES) Written Examination – the first of the four stage CES eligibility examination pro-
cess;
RESOLVED FURTHER, that the National Defense College of the Philippines

(NDCP), and the Philippine Public Safety College (PPSC) shall be provided copies of this
Resolution.
Chairperson

Vice Chairperson
(SGD.) ELMOR D. JURIDICO (SGD.) RICARDO L. SALUDO

Member Member
(SGD.) ANTONIO D. KALAW

Member
CEBU PORTS AUTHORITY

CPA Administrative Order No. 01-08 s. 2008
Mandatory Weighing of Outbound Foreign Container Vans
Pursuant to the provisions of R.A. 7621, the General Port Rules and Regulations
(GPRR) of the Cebu Port Authority, the Philippine Dockwork Health and Safety Standards
and to ensure the safe handling of containers, the following policy and its implementing
guidelines, on the mandatory weighing of outbound foreign container vans to be loaded the
CIP, are hereby prescribed:
Section 1. Statement of Policy - It is hereby the declared policy of the Authority that
all loaded outbound foreign container vans shall be required to undergo weighing process
to ensure its safe handling, safety of workers and equipment.
Section 2. Coverage - This mandatory policy covers only loaded outbound foreign
container vans to be loaded at the Cebu International Port (CIP).
Section 3. Guidelines - The following guidelines are hereby prescribed:
3.1 Cargo agent/representative upon application for entry permit of containers bound for
CIP, shall observe the same documentary process/flow and submit to the Authority the
prescribed export documentary requirements for foreign cargoes and this time with copies
of the Weight Slip/Receipt (S/R) duly issued by the CPA licensed/accredited Weighing
Service Provider, attached;
3.2 The Weight Slip/Receipt shall contain among others, the following information:
3.2.1 Truck Plate Number

3.2.2 Trucking Company
3.2.3 Container Van Owner
3.2.4 Container Number
3.2.5 Container Weight
3.3 After verification and validation, all copies of the Weight Slip/Receipt shall be stamped
with “Checked and Verified” by the CPA-CIP Cargo Control Officer;
3.4 The duly approved entry permit together with the validated WS/R shall now be pre-
sented to the next CPA control station (CIP Main Gate) for appropriate action;
3.5 Duly approved copies of the WS/R shall be retained at the following CPA Control
Stations:
3.5.1 CPA-CIP Cargo Control Section

3.5.2 CIP Main Gate
Section 4. No Weight Slip/Receipt, No Entry - No outbound loaded foreign container

van shall be allowed entry into the CIP without a duly validated WS/R.
Section 5. Responsibility of Concerned Personnel
5.1 CPA-CIP Cargo Control Officer
5.1.1 Receive application for Entry Permit together with the prescribed
documentary requirements including the WS/R from the cargo agent;
5.1.2 Checks and verifies all submitted documents. If all are found in order,
stamps “ENTRY GRANTED” on the appropriate export document and
“CHECKED AND VERIFIED” on the WS/R;
5.1.3 Retains file copies of export documents including a copy of the WS/R for
future reference and consolidation; and
5.1.4 Returns the processed documents to cargo agent.
5.2 CIP Main Gate – The Gate Guard on duty shall perform the following:
5.2.1 Receives the duly approved export entry permit and other documents
from the cargo agent and checks if the same are in order and further cross-
checks if the data in the documents match the container to be entered
5.2.2 If in order, retains copies of the entry permit and the WS/R, returns other
documents to the cargo agent;
5.2.3 Allows entry of container van; and
5.2.4 At the end of the shift, submits all collected documents to the CPA-CIP
Cargo Control, Section for reconciliation.
5.3 CY Receiving Checker (OPASCOR)
5.3.1 Upon receipt of a container van at the CY, the OPASCOR checker on
duty shall record the weight of the container as reflected on the WS/R in the
Receiving Tally Sheet;
5.3.2 Checker/Dispatcher shall inform the shore crane operator of the specific
details on weight, size, etc. of each container to be loaded for its safe handling;
and
5.3.2 The checker shall furnish the ship’s receiving Officer with a copy of the
Receiving Tally Sheet for Proper Stowage Planning.
Section 6. Separability Clause
Should any provision of this Order be declared illegal or unconstitutional by any court
of competent jurisdiction, those provision to which such declaration does not apply, shall
remain in full force and effect.
Section 7. Repealing Clause
All Orders, Circulars, Memoranda, guidelines, rules and regulations inconsistent
herewith, are hereby repealed or modified accordingly.
Section 8. Effectivity - This Circular shall take effect fifteen (15) days after publication
in a newspaper of general circulation.
Adopted: 28 Feb. 2008
(SGD.) ANGELO C. VERDAN

General Manager
--o0o--
CPA Administrative Order No. 02-2008
Treatment of Cargoes Released for Withdrawal But Later Cancelled
Pursuant to the provisions of R.A. 7621, the General Port Rules and Regulations
(GPRR) of the Cebu Port Authority, and as approved by the Cebu Port Commission, the
following policy and its implementing guidelines on the treatment of cargoes released for
withdrawal but later cancelled, are hereby prescribed:
Section 1. Statement of Policy - It is the declared policy of the Authority that all
cancelled withdrawals of cargoes shall be subject to penalty to avoid operational and
administrative inconveniences for other port users and cargo handling service providers.
Section 2. Coverage - This mandatory policy covers withdrawals of cargoes, either

containerized or non-containerized, either direct inbound or transshipment, at the Cebu
International Port (CIP).
Section 3. Guidelines - The following guidelines are hereby prescribed:

3.1. Consignees or consignees’ brokers/representatives shall apply for cargo withdrawal
permits with Cebu Port Authority only when the processing of documents and clearances
with Bureau of Customs, OPASCOR, and other concerned offices shall have been settled;
3.2. Cancellation of approved cargo withdrawal permits duly issued by Cebu Port Authority
shall be subject to penalty as hereby prescribed.
3.2.1 Two Hundred Fifty Pesos (P250.00) for every 20- footer container
3.2.2 Three Hundred Fifty Pesos (P350.00) for every 40-footer container
3.3. Payment of penalty shall be settled with Cebu International Port Management Office
1 of Cebu Port Authority prior to revalidating and granting of withdrawal permits.
Section 4. Separability Clause - Should any provision of this Order be declared
illegal or unconstitutional by any court of competent jurisdiction, those provisions to which
such declaration does not apply, shall remain in full force and effect.
Section 5. Repealing Clause - All Orders, Circulars, Memoranda, guidelines, rules

and regulations inconsistent herewith, are hereby repealed or modified accordingly.
Section 6. Effectivity - This Administrative Order shall take effect fifteen (15) days
after 2 publications in a newspaper of general circulation.
Adopted: 12 March 2008

APPROVED:
General Manager
--o0o--
CPA Memorandum Circular No. 03, s. 2008
Guidelines on the Entry/Exit and Storage of Dangerous Cargoes
The general safety and security of the port facilities, cargoes and persons within
the port premises and the protection of the environment are the primary responsibilities of
the Authority. In this regard, the entry/export and storage of dangerous cargoes in the
ports shall be restricted, particularly prior to unloading to the designated dangerous cargo
area by the CARGO HANDLING SERVICE PROVIDERS (CHSP).
For this purpose, the following guidelines are hereby reiterated and prescribed for
the compliance by all concerned.
1. The pertinent provisions of existing regulations, insofar as safe movements of danger-

ous cargoes are concerned, are hereby reiterated:
1.1 CPA Administrative Order No. 01-2000 entitled “CPA General Port Rules
and Regulations (GPRR) “ particularly Art. VI, Section 3 a & b on Declaration of
Dangerous Cargoes; and Section 4 a & b on Defective Packaging
1.2 Dockwork Safety and Health Standards, particularly Art, XVII, Sections 2-D
and 4.
1.3 CPA MC No. 06-2006 entitled “Implementing Rules on Prevention of Spillage

of Oil & Petroleum Products in the Port & Port Facilities” particularly Art. II
Section 3- Designated Area for Cargo Containing Oil or Petroleum Products.
1.4 International Maritime Dangerous Goods (IMDG) Code, as amended.
2. The Port Operations personnel concerned, thru the authorized cargo handling service
providers, shall closely monitor and control the movement of any IMO classified dangerous
cargo in the port.
3. All inbound IMO classified dangerous cargo shall be properly and officially declared by
the Master of the vessel carrying it. If possible, an advance copy of the Dangerous Cargo
Manifest shall be submitted a day before its arrival, to the Authority.
4. A Copy of the Dangerous Cargo Manifest and other pertinent documents shall be sub-
mitted to the Port Management Office concerned immediately upon arrival of a vessel.
5. Dangerous cargoes that are not declared in the DCM shall be denied handling and
unloading into the port.
6. Dangerous cargoes that are not properly packed, marked/labeled shall likewise be
denied handling and unloading into the port;
7.All unloading dangerous cargoes shall only be stored at duly designated Dangerous
Cargoes Storage Areas (DCSA);
8. All outbound IMO classified dangerous cargo shall be properly marked/labeled, packed
and documented before being allowed entry into the port premises.
9. Dangerous cargoes not properly declared marked/labeled and packed shall be denied
entry into the port; (ANNEXES A,B,C,D,E,F)
10. No entry permit shall be issued by the Authority on any dangerous cargo if a shipper
fails to present/submit a copy of a duly approved Philippine Coast Guard (PCG) Special
Permit to Load/Shipout Dangerous Goods;
11. CHSPs shall not accept and handle any dangerous cargo that is not properly packed,
marked/labeled and documented;
12. All outbound dangerous cargoes shall be stocked at the duly designated Dangerous
Cargo Storage Area (DCSA) prior to loading.
13. All Operations and Port Police personnel shall ensure the full compliance by the autho-
rized CHSP, the shipping companies/agents and the concerned cargo shippers/consign-
ees of these guidelines.
14. The Port Security, Safety and Environment Department shall institute additional and
appropriate measures or guidelines, when deemed necessary, to ensure the compliance
of this Circular.
15. CHSP and Shipping Companies/Agents found accepting/unloading/discharging/stacking

dangerous goods without proper packing/identification/marking/labeling/placarding and not
placed at the designated dangerous cargo area shall be fined as indicated in CPA Admin-
istrative Order No. 01-2000 (GPRR), without prejudice to filing of appropriate criminal
charges.
All orders, rules and other guidelines inconsistent with or contrary to this Circular are
hereby repealed/modified accordingly.
This Memorandum Circular shall take effect immediately after two publications, once
a week, in a newspaper of general circulation.

APPROVED.
General Manager
-o0o-
Memorandum
Revised Berthing Policy
Attached is CPA Administrative Order No. 03-2008 dated May 20, 2008 which
shall take effect on June 16, 2008.
For your information and guidance.

(SGD.) ANGEL C. VERDAN
General Manager
“Attachment “
CPA Administrative Order No. 03, s. 2008
Revised Berthing Policy
Pursuant to Sections 7 and 9 of RA 7621 and CPA Board Resolution No. 299-
2008 adopted during the 51st Regular Board Meeting of the 5th Cebu Port Commission
held on 21 May 2008, and in the interest of rationalizing berthing fees and maximizing the
use of berthing space, the following berthing fee policy is hereby promulgated, as follows:
Section 1. Policy Statement - It is hereby the declared policy of the Cebu Port
Authority that the basis for computing the fee on the actual use of the Authority’s berthing
facilities at the Baseport and elsewhere within its jurisdiction, shall now be on a per GRT-
hour basis. From hereon, the Fee shall be known as “Berthing Fee” both for domestic
and foreign operations.
Section 2. Rationale - The rationale of this policy is anchored on the following:
2.1 To rationalize berth window allocation

2.2 To increase berthing capacity at the Baseport
2.3 To optimize berth utilization
2.4 To establish a more equitable charging rate
2.5 To improve berth efficiency; and
2.6 To minimize berth congestion.
Section 3. Scope - This policy covers all foreign and domestic vessels calling at
all ports owned and operated by the Cebu Port Authority.
Section. 4 Exemptions - The existing berthing fee computation and charging

shall remain unchanged for the following:
4.1 Vessels engaged in domestic trade calling at private ports; and,
4.2 Vessels with Bay and River Trade Certificate of Conveyance (CTC), duly issued
by the Maritime Industry Authority (MARINA).
Section 5. Features - The revised mode of computation and charging of the

berthing fee contain the following features:
5.1 Computation of the fee is on a per GRT-hour basis;

5.2 Gives discount/rebate on the first six (6) hours stay for domestic vessels at berth;
5.3 Gives premium to the first sixteen (16) hours stay of foreign vessels at berth and the
first twelve (12) hours stay of domestic vessels at berth;
5.4 Encourages shorter Turn-Around-Time (TAT); and
5.5 Imposes surcharge on inefficient vessels (those exceeding 16 or 12 hours, as the case
may be, of port time).
6.1 Anchorage – means any place with sufficient depth of water were vessels can anchor
or may ride at anchor within the harbor;
6.2 Berth – means that part of a pier or wharf that is occupied by a vessel or any place
where a vessel may tie up;
6.3 Berthing Fee – the amount charged on a vessel for the actual occupancy of a berth
facility per GRT;
6.4 Idle Time – the time spent by a vessel at berth without performing any operation due to
the following reasons:
6.4.1 breakdown of ship’s gear or cargo handling equipment;

6.4.2 waiting for cargo (outgoing);
6.4.3 force majeure (e.g heavy rains, typhoons, earthquake)
6.5 Minimum Charge – the fixed/base component computed as part and parcel of the total
berthing fee from a vessel;
6.6 Non-working Time – the time spent by the cargo handling operator for meal and coffee
breaks;
6.7 Pier – means any structure built into the sea but not parallel to the coast line and
includes any stage, stair, landing stage, jetty, floating barge and any bridge or other struc-
ture connected thereto;
6.8 Regular Charge – the variable component computed as part and parcel of the total
berthing fee due from a vessel in relation to its actual time at berth;
6.9 Surcharge – the add-on variable component computed as part and parcel of the berthing
fee for the time spent at berth in excess of twelve (12) or sixteen (16) hours, as the case
maybe;
6.10 Turn-Around-Time (TAT) - the time it takes between the arrival of a vessel and its
departure;
6.11 Vessel – a ship, boat or any seaborne craft used or capable of being used as a means
of transportation on water;
6.12 Wharf – a continuous structure built parallel to, or along the margin of, the sea or
alongside river banks, canals or waterways where vessels may lie alongside to receive or
discharge cargo, embark or disembark passengers;
6.13 Working Time – computed as twenty-four (24) hours less the non-working time.
Section 7. Domestic Operations, Excluding Fast Craft
7.1 Prescribed Rates

a) Minimum Charge for twelve (12) hours or a fraction thereof – 0.672 x GRT
b) Discount for time at berth not exceeding 6 hours – 4.00%
c) Surcharge/ per hour in excess of twelve (12) hrs until vessel leaves berth –
8.33%
7.1 Computation for Domestic Operations – Based on the prescribed rates in the preced-
ing subsection, berthing fees for all domestic vessels, except fast craft shall the computa-
tion demonstrated in Annex “A”*
Section 8. Foreign Operations
8.1 International vessels shall be charged the following fees;
8.1.1 Berthing fee - the existing rate of 0.039 x GRT X USD: PHP Exchange
Rate;
8.1.2 Surcharge of 12.50% - in excess of sixteen (16) hours up to 24 hours at
berth;
8.1.3 Surcharge after the first 24 hours so computed to equal to 100% (double
the existing fee) every 24 hours;
8.1.4 Harbor fee – the existing harbor fees as currently charged shall be adopted:
8.2 Computation for Foreign Operations – based on the prescribed rates in the preceding
subsection, berthing fees for all international vessels shall follow the computation demon-
strated in Annex “B”*
Section 9. Fast Craft Operations - The length of berth space permanently blocked
for the exclusive use of fast ferry operators shall be rented out at P560.00 (VAT inclusive)
per linear meter per month.
Section 10. Anchorage Fee – the existing anchorage fee as currently charged shall
be adopted for both domestic and foreign vessels.
Section 11. Exemptions – the per-hour charging time spent by a vessel at berth under
the following circumstances shall be deducted from the computation of berthing fee:
11.1 Non-working time;

11.2 Force majeure;
11.3 Equipment breakdown where the vessel is not at fault.
Provided, However, if the stoppage of work is due to ship’s gear breakdown, failure to
deliver cargoes (waiting for cargoes) or any circumstances attributable to the vessel, the
number of hours spent as idle time shall be included in the computation of the Berthing
Fee.
Section 12. Productivity Rates
To complete the loading and/or discharge operations of the vessel within the most
cost-effective time frame, the cargo handling service provider (CHSP) concerned shall be
obligated to expeditiously load and discharge all cargoes to and from vessels, weather and
ship’s gear permitting, at the following rates per gross gang hours, to wit:
12.1 DOMESTIC VESSELS
12.1.1 Purely Manual Operation: twenty (20) mt

12.1.2 Mechanized Operation: twenty-four (24) mt
12.1.3 Transtainer: twenty-four (24) TEUs
12.1.4 Forklift: fourteen (14)
12.1.5 Ro-Ro Operations thirty (30) mt
The above mentioned productivity rates shall be subject to periodic review at the op-
tion of the Authority.
12.2 FOREIGN VESSELS

VESSEL
COMMODITY PACKAGING PRODUCTIVITY RATE
MT
Rice 50 Kg per bag 400 bags 20
Corn 50 Kg per bag 400 bags 20
Salt 40 Kg per bag 500 bags 20
Cement 40 Kg per bag 500 bags 20
Soda Ash in bulk (w/o bulk terminal) 20
Soya Beans in bulk (w/o bulk terminal) 20
Rock
Phosphate in bulk (w/o bulk terminal) 20
Steel Billets 5 MT per bundle 14 bundles 70
Steel Coils 8 MT per bundle 22 rolls 176
Steel Wire 500 Kg per roll 70 rolls 35
Lumber Bundles 18
Containerized TEU 25
The above Productivity Per Gross Gang Hour is subject to CPA regulations requir-
ing the use of vessels’ gear that may be prescribed by the Authority for CIP.
Section 13. Saving Clause
Any provision of this memorandum circular declared by a competent authority to

be invalid shall not affect the other parts to which such declaration does not relate.
All CPA rules and regulations, policies, guidelines, memoranda or circulars incon-
sistent herewith are hereby repealed accordingly.
Section 15. Effectivity

This Administrative Order shall take effect immediately after two publications, once a
week, in a newspaper of general circulation.
General Manager
CIVIL AVIATION AUTHORITY OF THE PHILIPPINES

Implementing Rules and Regulations (IRR) of

Republic Act No. 9497 Otherwise Known as
Civil Aviation Authority Act of 2008
Text Available at Office of the National Administrative Register (ONAR),

--o0o--
Civil Aviation Regulations

COMMISSION ON AUDIT
Resolution No. 2008-010
Release of Certified Copy of Information, Documents, Data,

Official Records or Reports or Furnishing Copies Thereof to Other Parties
WHEREAS, under COA Memorandum No. 2003-035 dated November 7, 2003, all
requests for certified copy of information, documents, data and other official records
originating from any Office, Cluster, Division, Section or Unit of the Central Office shall be
referred to the concerned Director/Cluster Director for approval or prior clearance, subject
to the limitations provided under COA Memorandum No. 87-22E dated August 27, 1987;
WHEREAS, the release of such information or documents approved or authorized by

the Director/Cluster Director may not be consistent with the recent developments in the
Central Office, and may cause discrepancy and variation in the policy direction of the
COA, which might be prejudicial to the realization of the mandate of this Commission; and
WHEREAS, there is pending study on the appropriate policy on the subject that will
be consistent with the recent development in the Central Office;
NOW, THEREFORE, it is hereby resolved that all requests for certified copy of
information, documents, data and other official records originating from any Office, Cluster,
Division, Section or Unit of the Central Office, or request from the media shall be referred/
forwarded to the Office of the Chairman for approval or prior clearance, until a new policy
is duly issued on the above-captioned subject.
(SGD.) REYNALDO A. VILLAR

Chairman
(SGD.) JUANITO G. ESPINO, JR.

Commissioner
--o0o--
Custody of All Financial Records of the Barangays and the

Rendition of Accounts by the Barangay Treasurer
WHEREAS, under Section 2(1), Article IX-D of the 1987 Constitution, COA is
mandated to keep the general accounts of the Government and, for such period as may be
provided by law, preserve the vouchers and other supporting papers pertaining thereto;
WHEREAS, under the General Accounting Policies of the Accounting System

Manual for Barangay it is directed that “all financial records of the barangays, such as
copies of Registries, Summaries, Reports and supporting documents like paid Disbursement
Vouchers (DVs), Payrolls, duplicate copies of Official Receipts (ORs) issued, Validated
Deposit Slips (VDSs), General Appropriations Ordinance (GAO), etc. shall be kept by the
Barangay Record Keeper (BRK) and shall be made available anytime to the COA Auditor
for examination/audit”; and
WHEREAS, the directive under the aforesaid General Accounting Policies of the
Accounting System Manual for Barangay is not in line with the mandate of this Commission
to preserve the vouchers and other supporting documents pertaining thereto.
NOW THEREFORE, it is hereby resolved that the barangay treasurer shall 1)

systematically file all copies of documents pertaining to the financial transactions that are
entrusted to him, 2) submit to the municipal/city accountant who shall record the financial
transactions in the General Journal thru Journal Entry Voucher (JEV) based on the certified
copies of the Reports and supporting documents submitted by the Barangay Treasurer
and post the same to the General Ledger/Subsidiary Ledger, and the municipal/city
accountant to subsequently forward to the COA Auditor concerned all the financial records
of the barangay within ten (10) days from date of receipt of said documents. The accounts
shall consist of the originals or the Auditor’s copies as designated in the document
distribution schedules duly prescribed by existing regulations, of debit/credit advices,
disbursement vouchers, payrolls, journal vouchers, request for obligation of appropriations,
report of accountability for accountable forms, trial balances, the supporting documents of
all the foregoing, and such other reports as the Commission on Audit may require from
time to time. Unless otherwise provided by law or regulations, the originals of the required
supporting documents pertaining to each transaction shall be submitted.

Chairman
(SGD.) JUANITO G. ESPINO JR.

Commissioner
--o0o--
Circular No. 2008-002
Seminars on Pre-Audit System and Other Topics

Related to Pre-Audit on Government Transactions
Conducted by Private Groups or Entities
It has come to the attention of this Commission that private groups or entities have
been conducting seminars about laws, rules and regulations peculiar to government op-
erations, targeting government officials and employees as participants. Of recent note is
an “EXECUTIVE FORUM” initiated by a certain “CORONA MANAGEMENT CENTER OF
THE PHILIPPINES” lining up several topics including, among others, modules on “THE
RETURN OF THE “PRE-AUDIT SYSTEM” the review and approval by the COA auditor of
the audited agency’s financial transaction before their consummation/completion” and
“DOCUMENTARY REQUIREMENTS OF AGENCY’S DISBURSEMENTS (cash advance,
infra projects, first payment of salaries and other selected transactions) SUBJECT TO
COA’s PRE-AUDIT”.
Under Section 2(2), Article IX-D of the 1987 Constitution, the Commission shall have
exclusive authority to promulgate accounting and auditing rules and regulations. Pursuant
to this mandate, the Commission is presently considering the reinstitution of selective pre-
audit on government transactions. The initiative is still the subject of deliberation and the
mechanics as well as the guidelines are yet to be promulgated. Upon approval and promul-
gation thereof, the Commission, consistent with its exclusive authority under Section 2(2),
supra, shall take the sole authority and responsibility to disseminate, orient and train all
concerned on the guidelines on selective pre-audit through the Professional Development
Center or any of the Commission’s Regional Training Centers. Any plan or undertaking by
any private group or entity to conduct a seminar or forum about this topic is premature and
unauthorized.
To obviate the incurrence of unnecessary expenditure over this premature and unau-
thorized activity, all heads of agencies are hereby enjoined from authorizing and sending
participants at government’s expense to the “EXECUTIVE FORUM” or any similar activity
or training sponsored by “CORONA MANAGEMENT CENTER OF THE PHILIPPINES”, or
any similar group or entity, particularly on the topics; “THE RETURN OF THE “PRE-AUDIT
SYSTEM” - the review and approval by the COA auditor of the audited agency’s financial
transaction before their consummation/completion” and “DOCUMENTARY REQUIREMENTS
OF AGENCY’S DISBURSEMENTS (cash advance, infra projects, first payment of salaries
and other selected transactions) SUBJECT TO COA’s PRE-AUDIT” or any other topics
related to pre-audit.
All expenses that may be incurred in violation of this directive shall be disallowed in
audit, without prejudice to the initiation of administrative disciplinary action against any
person authorizing the attendance as well as the participant as may be warranted under
existing laws.
Any previous issuance inconsistent with this circular is considered modified, revoked
or superseded.
Chairman
(SGD.) JUANITO G. ESPINO, JR.
Commissioner
COMMISSION ON HIGHER EDUCATION

CHED Memorandum Order No. 40 s. 2008
Manual of Regulations for Private Higher Education of 2008
1. Pursuant to the pertinent provisions of the 1987 Constitution, Act No. 2706 as amended
by Act No. 3075, Commonwealth Act No. 180, Batas Pambansa Bilang 232, Republic Act
No. 7722 and other applicable legislations by virtue of the 318th Commission en banc
Resolution No. 398-2008 dated 28 July 2008, the Commission hereby adopts and promul-
gates this Manual of Regulations for Private Higher Education of 2008* for information,
guidance and compliance of all concerned.
2. The Manual shall apply to all private higher education institutions operating under au-
thority of the Commission.
3. It shall be the responsibility of all school officials of private higher education institutions
to implement the provision of this Manual.
4. The CHED Regional Offices shall monitor and ensure the effective implementation of
this Manual.
5. This Manual of Regulations for Private Higher Education of 2008 shall take effect fifteen
(15) days after publication in the Official Gazette or in a newspaper of general circulation.

For the Commission:
(SGD.) ROMULO L. NERI
Acting Chairman
COOPERATIVE DEVELOPMENT AUTHORITY

Memorandum Circular No. 2008-09
Amendment to Section 17 of MC No. 2007-03, Series of 2007
Section 17 of the Guidelines for the Implementation of Conciliation-Mediation for Co-

operative Disputes at the Cooperative Development Authority (MC No. 2007-03) provides
that both parties must complete the conciliation-mediation proceedings within 30 days
from the date of signing of the Agreement to Conciliate-Mediate. With valid reason, the
proceedings may be extended but not beyond 45 days.
Comparatively, Section 8 of Republic Act No. 6939, otherwise known as the Coopera-
tive Code of the Philippines provides:
“SEC. 8. Mediation and Conciliation. – Upon request of either or both parties,

the Authority shall mediate and conciliate disputes within a cooperative or
between cooperatives: Provided, that if no mediation or conciliation succeeds
within three (3) months from request thereof, a certificate of non-resolution
shall be issued by the commission prior to the filing of appropriate action before
the proper courts.”
Now therefore, to clarify the manifest discrepancy and to harmonize MC No. 2007-03
with that of RA 6939, Section 17 of MC No. 2007-03 is hereby amended to contain the
following language:
“SECTION 17. DURATION OF CONCILIATION-MEDIATION - The conciliation-

mediation proceedings must be completed within ninety (90) days from the
date of signing of the Agreement to conciliate-mediate by both parties.”
Please be guided accordingly.
APPROVED.
For the Board of Administrators
(SGD.) LECIRA V. JUAREZ

Chairperson
-o0o-
Repeal of MC No. 99-004 Which Admits Minors as Regular

Members of Cooperatives
Article 26 of Republic Act No. 6938 otherwise known as the Cooperative Code of the
Philippines provides as follows:
“Art. 26. Who May be Members of Cooperative – Any natural person, who is a
citizen of the Philippines, a cooperative, or nonprofit organization with juridical
personality shall be eligible for membership in a cooperative if the applicant
meets the qualifications prescribed in the by-laws; Provided, That only natural
persons may be admitted as members of a primary Cooperative.”
It is to be noted that the law does not qualify cooperative membership in so far as the
age requirement is concerned. Hence, MC No. 99-004 entitled “Admission of Youth as
Regular Member of Cooperative” was issued on 13 October 1999 by the then Chairman
Jose C. Medina, Jr.
However, in his book entitled “Cooperative Code of the Philippines, Theory, Law and
Practice“, Aquilino Q. Pimentel, Jr. one of the primary advocates for cooperativism,
commented that as to cooperative membership qualifications, in as much as primary
cooperatives are concerned, only natural persons who are Filipino citizens and of legal
age may qualify for membership. (Cooperative Code of the Philippines, Theory, Law and
Practice, 1994 ed., p.56, italics supplied)
This commentary is grounded on Article 1327 of the Civil Code of the Philippines,
which states that unemancipated minors are incapable of giving consent to a contract.
The same basis in law goes on to say that minority is a restriction on a person’s capacity
to act.
Minors lack the civil personality to bind themselves into agreements. They do not
have the capacity to exercise the corresponding obligations necessarily implicated with
such acquired interest. Save, of course, in some of the instances as the law may have
provided. Suffice to say nonetheless, that cooperative membership or any act relative act
thereto is not embraced within any of the exception to this general rule.
Premises considered, MC No. 99-004 is hereby repealed. Accordingly, minors may

became members of the laboratory cooperatives as defined and regulated under Article 27
of Republic Act. No. 6938 and Rule 9 of the Rules and Regulations Implementing Certain
Provisions of the Cooperative Code of the Philippines. However, those primary cooperatives
that previously admit minors as members may continue to do so up and until April 1, 2009
only. No more admission of minors as members shall be made after this period.
APPROVED per BOA Resolution No. 335, S-2008 dated November 7, 2008.
Adopted: 07 Nov. 2008.
By:

Chairperson
-o0o-
Enjoining All Cooperatives to Adopt January 1-December 31

As Fiscal Year (as Amended)
Section 8 of Revenue Regulations No. 20-2001 dated November 11, 2004 pro-
vides:
“Sec. 8- ANNUAL RETURN AND DOCUMENTS TO BE FILED WITH THE

BUREAU OF INTERNAL REVENUE – A copy of the Certificate of Good
Standing issued by the CDA to the cooperative, shall together with the Annual
Information Return (for non-taxable cooperative) or Income Tax Return (for taxable
cooperative) and Financial Statement, be submitted to the Bureau of Internal
Revenue on or before the 15th day of the fourth month following the close
of taxable year.”
To coincide with the above, the period of securing the Certificate of Good Standing
(CGS) from the Cooperative Development Authority has been made on or before April 15 of
the current year. Section 11 of Memorandum Circular No. 2008-03 re-Amended Guide-
lines Governing the Issuance of Certificate of Good Standing (CGS) provides:
“Section 11. Period of Filing – Subject to the requirements under Section 7 of

this Memorandum, a cooperative shall secure a CGS for regular purpose from
the Authority on or before April 15 of the current year.”
Now therefore, to be able to comply with the manifest intention of the BIR and CDA, all
cooperatives registered with the CDA are enjoined to adopt January 1-December 31 as
their fiscal year.
This circular shall take effect immediately. Likewise, this supersedes Memorandum
Circular No. 98-001 and all other memoranda issued in relation thereto.
Approved by BOA Resolution No. 282, S-2008 dated September 26, 2008.
By:
Chairperson
DANGEROUS DRUGS BOARD

Board Regulation No. 3, s. 2008
Amending Board Regulation No. 1 Series of 2007 Entitled “Guidelines on

the Disposition of Confiscated, Seized and/or Surrendered Dangerous Drugs,
Plant Sources of Dangerous Drugs, Controlled Precursors and Essential
Chemicals, Instruments/Paraphernalia, and/or Laboratory Equipment in
Connection with Cases Under Investigation, Preliminary Investigation or
Reinvestigation
WHEREAS, Section 3 of Dangerous Drugs Board (DDB) Regulation No. 1, Series of

2007, provides the procedure for the disposal of the Confiscated, Seized and/or Surren-
dered Dangerous Drugs, Controlled Precursors and Essential Chemicals, Instruments/
Paraphernalia and/or Laboratory Equipment in Connection with cases under investigation,
preliminary investigation or reinvestigation;
WHEREAS, several queries from PDEA and other law enforcers were received asking
to clarify the issue of who the proper prosecutors that will sign the petition for destruction
of seized drug-related pieces of evidence in case the search warrant was issued by a
Court from other judicial jurisdiction;
WHEREAS, there is a need to amend Section 3 para. (a) of Board Regulation No. 1,
series of 2007, to clarify and designate the concerned prosecutor that will confirm or sign
the conformity in the Petition for Destruction of Confiscated/Seized or Surrendered drug-
related evidence;
WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, to amend the DDB

Regulation No. 1, Series of 2007 as herein provided:
Section 3. Disposal of Seized Dangerous Drugs, Controlled Precursors and Es-

sential Chemicals, Instruments/Paraphernalia, and/or Laboratory Equipment. Dan-
gerous drugs, controlled precursors and essential chemicals, instruments/paraphernalia,
and/or laboratory equipment confiscated, seized and/or surrendered and covered by this
Regulation shall be disposed of as follows;
a. Upon the receipt of the final certification of the forensic laboratory examination results
issued by the government forensic laboratory, pursuant to Section 21 of RA 9165 and
Section 4 of Board Regulation No. 1, Series of 2002, the PDEA may file a petition for the
immediate destruction of the confiscated, seized and/or surrendered dangerous drugs,
plant sources of dangerous drugs, controlled precursors and essential chemicals, instru-
ments/paraphernalia and/or laboratory equipment with the Regional Trial Court presided
over by the Executive Judge of the province or city where the confiscation/seizure and/or
surrender took place. If the confiscation, seizure or surrender was by virtue of a search
warrant, the appropriate motion shall be filed with the prior written conformity of the Provin-
cial or City Prosecutor “OF THE PROVINCE OR CITY, AS THE CASE MAY BE , WHERE
THE CONFISCATION / SEIZURE and/or SURRENDER TOOK PLACE OR THE CHIEF
STATE PROSECUTOR OR HIS DULY DESIGNATED REPRESENTATIVE” which shall be
indicated in the pleading. The trial court where the criminal case is subsequently filed
shall take judicial notice of the proceedings thereof.”
xxx
This Regulation shall take effect fifteen (15) days after its publication in two (2)
newpapers of general circulation and after its registration with the Office of the National
Administrative Register (ONAR), UP Law Center, Quezon City.
(SGD.) Secretary VICENTE C. SOTTO III

Chairman, Dangerous Drugs Board
Attested by:
(SGD.) Undersecretary EDGAR C. GALVANTE

Secretary to the Board
-o0o-
Amending Board Regulation No. 4, Series of 2003 Entitled

“Implementing Rules and Regulations Governing Accreditation of
Drug Abuse Treatment and Rehabilitation Centers and
Accreditation of Center Personnel
WHEREAS, Section 76 of Republic Act 9165 enumerates the functions of the Depart-
ment of Health (DOH) which shall include but not limited to the following function:
1. Oversee and monitor the integration, coordination and supervision of all drug rehabilita-
tion, intervention, after-care and follow-up programs, projects and activities as well as the
establishment, operations, maintenance and management of privately-owned drug treat-
ment and rehabilitation centers and drug testing networks and laboratories throughout the
country in coordination with DSWD and other agencies.
Xxx
WHEREAS, the Dangerous Drugs Board (DDB) promulgated Board Regulation No. 4,
Series of 2003, providing for the Implementing Rules and Regulations Governing Accredita-
tion of Drug Abuse Treatment and Rehabilitation Center and Accreditation of Center Per-
sonnel”;
WHEREAS, there is a need to update implementation strategies and utilize new

technologies recently made available to develop and improve success rates of treatment
and rehabilitation centers;
WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, to amend Dangerous

Drugs Board (DDB) Regulation No. 4, Series of 2003, as hereunder provided:
Section 1. Section A (Definition of Terms) of DDB Regulation No. 4, Series of 2003, is

hereby amended by inserting the definition of the word “Application Service Provider”
and “Authorized Capacity” between the definition of the word “Accreditation” and the
definition of the word “BHFS”, as follows:
“Application Service Provider” refers to Integrated Drug Testing Operations Manage-

ment Information System maintained and supervised by the Department of Health to man-
age and distribute software-based services and solutions for facilities across a wide area
network from central data center.
“Authorized Capacity” refers to the number of clients of which can be catered to by the
facility based on the ideal personnel to clientele ratio.
Section 2. Section 4 (Definition of Terms) of DDB Regulation No. 4, Series of 2003, is

hereby amended by inserting the definition of the word “Board” between the definition of
the word “BHFS” and the definition of the word “Bureau”, as follows:
“Board” refers to the Dangerous Drugs Board created under Section 77, Article IX of RA
9165
Section 3. Section 6 (Technical Requirements for Accreditation) of DDB Regulation

No. 4, Series of 2003, is hereby amended, to include the Application Service Provider
(ASP) as a technical requirement such that the Section shall now read as follows:
For a Center to be accredited, it shall comply with the following technical require-
ments: (refer to Annex A*)
xxx
15. Maintenance of ASP – The Center shall maintain a set of Information Technology
(IT) equipment whose specification shall conform to the minimum requirement set by the
DOH as the need arises and after due consultation with the stakeholders. New IT equip-
ment requirements shall be disseminated through a DOH Memorandum Circular which
shall be posted in the DOH website.
Section 4. Section 8 (Procedural Guidelines for Certificate of Accreditation Issuance

of Permit to Construct – for residential Centers) DDB Regulation No. 4, Series of 2003, is
hereby amended, such that the entire Section shall now read as follows:
The applicant shall secure a Permit to Construct from the BHFS for construction of a
new facility, alteration, expansion or renovation of an existing health facility, change in
classification or increase in a bed capacity. It is a pre-requisite for accreditation.
1. The applicant accomplishes the required documents and submits them to the CHD for
endorsement to the BHFS. Upon filing of application, the applicant pays the correspond-
ing fees to the Cashier of the DOH in person, or through postal money order.
Documentary requirements - Permit to Construct
1.1 Letter of application to the BHFS Director

1.2 Letter of endorsement to the BHFS (if filed at the CHD)
1.3 Four (4) sets of Site Development Plan and Floor Plan signed and sealed
by licensed architect and/or engineer
1.4 DTI/SEC Registration (for private facilities) Enabling Act/Board Resolution
(for government facilities)
2. The BHFS reviews the documents and approves/disapproves the issuance of Permit to
Construct.
2.1 If approved, the BHFS issues a Permit to Construct to the applicant.

2.2 If disapproved, the BHFS returns the documents, together with their findings
and recommendations to the applicant. Failure to comply within thirty (30)
days shall be a ground for denial of application. Hence, the applicant has to re-
file his application and pays the required fees.
Issuance of Certificate of Accreditation
Prior to the Operation of a Center, it must secure a Certificate of Accreditation.
1. The applicant accomplishes the required documents and submits them to the BHFS or
CHD for endorsement to the Bureau. Upon filing of application, the applicant pays the
corresponding fees to the Cashier of the DOH in person or through postal money order or
thru authorized collecting agencies and/or banks specified by the DOH.
Documentary requirements
1.1 The BHFS Application Form filed either at the Bureau or CHD
1.2 Letter of endorsement to the Bureau Director if filed at the CHD
1.3 Permit to Construct
1.4 List of personnel including bio-data
1.5 List of Equipment
1.6 Procedure Manual to include among others the schedule of the
structured activities
1.7 Training Plan
2. The BHFS conducts on site survey to determine compliance with standards/technical

requirements.
3. The BHFS approves/disapproves the issuance of Certificate of Accreditation.
3.1 If approved, the BHFS accredits the Center and issues an initial Certificate
of Accreditation to the applicant upon deposit of twenty thousand pesos
(20,000,00) cash bond.
3.2 If disapproved, the BHFS sends the findings and recommendations to the
applicant. Failure to comply within fifteen (15) days shall be a ground for denial
of the application. Hence, the applicant has to re-file his application and pay
the required accreditation fees.
Section 5. Section 10 (Content of Certificate of Accreditation) of DDB Regulation No.

4, Series of 2003, is hereby amended, such as the entire Section shall now read as
follows:
The Certificate of Accreditation shall state on its face the name of the owner or opera-
tor of the Center, the service capability, the authorized capacity, the period for which it is
valid, and the location at which said services shall be provided. It shall be signed by the
Bureau Director.
Section 6. Section 15 (Violations) of DDB Regulation No. 4, Series of 2003, is hereby

amended, such that the entire Section shall now read as follows:
Violations of the “Comprehensive Dangerous Drugs Act of 2002” or the rules and regu-
lations issued in pursuance thereto include but not limited to the commission of the
following acts:
1. Conviction of the owner or manager of the Center for any criminal offense committed as
an incident to its operation.
2. Person who violates the confidentiality of records.
3. Failure to comply with the prescribed guidelines in the Manual of Operations for Treat-
ment and Rehabilitation Centers.
4. Failure to follow the prescribed flow of activities described by the ASP provider which will
be issued through a DOH-Circular.
5. Failure to comply admission requirements as prescribed by RA 9165 and Board issu-
ances.
Section 7. Section 20 (Moratorium) of DDB Regulation No. 4, Series of 2003, is hereby

amended, such that the entire Section shall now read as follows:
All accredited Centers shall be given three (3) months from approval and publica-
tion of these implementing rules and regulations to meet the new accreditation require-
ments.
All DDB accredited physicians who were given lifetime-accreditation, and were
allowed to continue the conduct of examination and treatment of drug dependents from
approval and publication of these implementing rules and regulations, shall be allowed to
perform the same functions until June 30, 2009. Likewise, the rest of the DDB Accredited
Center Personnel who were given lifetime-accreditation shall also be allowed to continue
performance of their functions until the same date. Thereafter, they must renew their
Certificate of Accreditation regularly.
Section 8. This Regulation shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation and after its registration with the Office of the
National Administrative Register (ONAR), UP Law Center, Quezon City.
(SGD.) Secretary VICENTE C. SOTTO III

Attested by:

Secretary of the Board
-o0o-
Creating the Committee on Appeals of the Board

and Prescribing the Procedures in Making an Appeal
WHEREAS, the Dangerous Drugs Board was created pursuant to Section 77, Article
IX of RA 9165 otherwise known as the “Comprehensive Dangerous Drugs Act of 2002” to
serve as the policy-making and strategy-formulating body in the planning and formulation
of policies and programs on drug abuse prevention and control;
WHEREAS, to effectively carry-out this mandate, the Board is clothed with powers
which include, but not limited to, the power to promulgate such rules and regulations
deemed necessary to carry-out the purposes of the Act;
WHEREAS, in the valid exercise of its rule-making power, the Board had issued vari-
ous regulations wherein violations thereof carry the imposition of administrative sanctions
which include, among others, suspension and/or revocation of licenses or permits issued,
fines, or if so warrants, violators may be held liable under Section 32 of RA 9165;
WHEREAS, it has been noted that in a number of cases, violations committed were
either due to unintentional lapses, simple negligence or the commission of acts amount-
ing to violations of validly issued Board Regulations without any tint of malice, and as
such, the Board feels that outright imposition of the sanction provided in such regulations
so violated may be seen as an act to hamper the operations of legitimate industries or
individuals, and recognizing this, the Board deemed it proper to create a single Commit-
tee on Appeals to receive, pass-upon and make recommendation(s) to the Board, all
cases of appeal and the adoption of guidelines or procedures in handling these cases;
WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, to create the Commit-

tee on Appeals and prescribing herein the procedure on how to make an appeal as follows;
Section 1. Committee on Appeals – a Committee on Appeals is hereby created to be

composed of the following:
Chairman - President or Representative of the Integrated Bar of the

Philippines
Vice-Chairman - Secretary or Representative from the Department of
Justice
Members: - Secretary or Representative from the Department of
National Defense
DDB designated Permanent Board Member
DDB Executive Director
The Chairperson shall select one (1) DDB employee to act as secretary.
Section 2. Duties and Responsibilities – the Committee on Appeals shall have the
following duties and responsibilities, to wit;
a) To receive and evaluate all cases brought on appeal;

b) If facts and circumstances so warrants, to conduct a formal inquiry on the case subject
of the appeal;
c) To submit to the Board its findings and recommendations within fifteen (15) days from
receipt unless a longer period is required but in no case to exceed 30 days;
d) To perform other tasks relating to cases on appeal as directed by the Board.
Section 3. Meetings/Quorum/Manner of Voting – the committee on appeal shall meet

at the call of the chairperson or by any two (2) of its members at least once a month or as
the necessity arises;
Section 4. Venue – the committee shall meet at the office of the Dangerous Drugs
Board.
Section 5. Honoraria - the members of the committee shall receive an honorarium per
meeting, subject to existing rules.
a) Appeal – a legal proceeding by which a complaint/petition is filed with the Dangerous

Drugs Board (DDB) for consideration.
b) Board – refers to the Dangerous Drugs Board (DDB) under Section 77, Article IX of RA
9165.
c) Board Regulation – refers to any of the Regulations duly issued by the Board.
d) PDEA – refers to the Philippine Drug Enforcement Agency created by virtue of Section
82, Article IX of RA 9165.
e) Permit – refers to the permit issued by the PDEA in relation to the implementation of
Board Regulation No. 3, S. 2003.
f) License – a written permission or authorization to operate or undertake activities related
to the handling of dangerous drugs and/or controlled precursors and essential chemicals.
g) Permit and/or License Holder – refers to the person who is duly issued a permit or
license by the PDEA.
h) Persons – refers to a natural or juridical person.
Section 7. Coverage – Appeals shall apply only to those cases of matters covered
by any Board Regulation and other Board issuances. Violation of the penal provisions of
RA 9165 and PD 1619 are not covered.
Section 8. Who is Entitled to Appeal – any person or entity who is aggrieved by the
implementation of validly issued regulations and/or such other issuances promulgated by
the Board.
Section 9. When to Appeal – Within fifteen (15) days from receipt or knowledge of any
adverse order, of a person that he had been aggrieved either by the action or inaction of
PDEA or other government agencies authorized to enforce any validly issued regulation
and/or such other issuances by the Board may by himself, counsel or duly authorized
representative file the appeal.
Section 10. Where shall the Appeal be Filed – All appeals shall be filed with the Board
through the Executive Director or through registered mail.
Section 11. How to Appeal – the appeal is taken by filing a verified petition with the
Board, stating therein the name of the petitioner, address, brief statement of the case or
acts subject of the appeal, and the relief prayed for.
The petition shall be accompanied with all pertinent documents to include certified
true copies of any order or act of the Board. The petitioner shall pay an appeal fee in the
amount of two thousand five hundred pesos (P2,500.00).
Section 12. Action of the Committee
a) Upon receipt of the petition, the committee chairman, if the facts and circumstances
surrounding the case subject of the appeal so warrant, shall convene the committee to
evaluate, investigate or conduct a formal hearing of the case brought on appeal and submit
to the Board it recommendations.
b) The proceedings before the committee shall be summary in nature and the Rules of
Court shall apply only in a suppletory character.
Section 13. Finality of Decision

The action of the Board, affirming or reversing the recommendation of the Committee
on Appeals shall be final. The petitioner shall be notified accordingly, of the action of the
Board.
If for any reason, any section or provision of the regulation or any portion thereof, or the
application of such section, provision or portion thereof to any person, group or circum-
stances is declared invalid or unconstitutional, the remainder of this regulation shall not be
affected by such declaration and shall remain in force and effect.
Board Regulation No. 6, S. 2006 and Board Resolution No. 19, S. 2007 are hereby
REPEALED and all other Board Regulation(s) and other issuances or part thereof incon-
sistent with the provisions of this Regulation are hereby likewise repealed and modified
accordingly.
This Regulation shall take effect fifteen (15) days after its publication in two (2) news-
papers of general circulation and after its registration with the Office of the National Admin-
istrative Register (ONAR), UP Law Center, Quezon City
(SGD.) VICENTE C. SOTTO III

Secretary
Attested by:

-o0o-
Guidelines on the Transfer/Re-Assignment of Police Witnesses
WHEREAS, the government’s drive for success against the ill-effects of dangerous
drugs and the traffic thereof cannot be attained by mere arrest of violators, it must be
coupled with vigorous efforts to bring behind bars those who are found guilty for violating
the penal provision of RA 9165, otherwise known as the Comprehensive Dangerous Drugs
Act of 2002;
WHEREAS, notwithstanding the arrest of violators, the effort to address drug related
problems proved futile because of the low percentage of convictions caused primarily by
the non-appearance of police witnesses as a result of their transfer or reassignment to
other Police Regional Offices or areas of responsibility;
WHEREAS, the non-appearance and failure to officially notify the court or the office
of the public prosecutor where a drug related case has been filed and is pending for
preliminary investigation or trial of such transfer or re-assignment to another territorial
jurisdiction of police witnesses by his immediate superior oftentimes lead to the dismissal
of the case;
WHEREAS, it is imperative to provide guidelines on the transfer and re-assignment

of police witnesses in order to strengthen the prosecution of drug cases by ensuring the
attendance of government witnesses from the inception of the case until it is finally decided
by the prosecutor or by the court as the case may be;
WHEREAS, Pursuant to the powers of the Board under Section 81 (b), Article IX of
RA 9165, otherwise known as the “Comprehensive Dangerous Drugs Act of 2002”, and in
relation to Section 91, Article XI of the same Act, law enforcement agencies and other
government officials and employees appearing as witnesses in a drug case must constantly
be aware of their responsibilities when testifying as prosecution witnesses;
NOW, THEREFORE, be it RESOLVED, as it is hereby RESOLVED, to provide the

following guidelines on the transfer and re-assignment of law enforcers including other
government officials and employees serving as prosecution witnesses in drug related cases;
Section 1. Coverage – These guidelines are for the strict observance and compliance
of all PDEA and other deputized law enforcement units, employees and officials charged
with the enforcement of RA 9165, otherwise known as the “Comprehensive Dangerous
Drugs Act of 2002” to include other government officials and employees appearing in Court
or stand to appear in Court as prosecution witnesses in dangerous drug cases filed before
the city or provincial prosecutor’s office and those that are filed in court.
a) ACT – refers to RA 9165 otherwise known as the “Comprehensive Dangerous Drugs Act
of 2002”.
b) DDB – refers to the Dangerous Drugs Board
c) PDEA – refers to the Philippine Drug Enforcement Agency
d) COURT (RTC) – refers to the Regional Trial Court of the Province/City
e) Dangerous Drugs – include those listed in the Schedules annexed to the 1961 Single
Convention on Narcotic Drugs, as amended by the 1972 Protocol and in Schedules to the
1971 Single Convention on Psychotropic Substances
f) Controlled Precursors and Essential Chemicals – include those listed in Tables I and
II of the 1988 UN Convention Against IIlicit Traffic in Narcotic Drugs and Psychotropic
Substances.
g) Drug Case – refers to criminal case for violation of RA 9165 filed before the office of the
provincial/city prosecutor for preliminary investigation or with the Regional Trial Court.
h) Drug Offender – a person charged for violation of RA 9165.
i) Prosecution – legal process of pursuing criminal charges against a drug offender.
j) Prosecution Witness – refers to an operative, officer or employee of the PDEA and

other law enforcement units or officers and employees of other government agencies called
upon to testify before the office of the city/provincial prosecutor or the Court.
k) Other Law Enforcement Units – includes PNP, NBI, Customs officials or employees
authorized to undertake law enforcement operations.
Section 3. Guidelines –
a) These guidelines shall be strictly followed by all PDEA personnel and other deputized
law enforcement units authorized to conduct anti-drug operations to include other govern-
ment agencies with respect to its officers and/or employees who are appearing or stand to
appear as prosecution witnesses in a drug case.
b) PDEA and other law enforcement units shall maintain proper coordination with the
Courts and with the office of the provincial/city prosecutor throughout the country where
drug cases have been filed and shall regularly monitor the status of the case(s). Hence,
there shall be a particular section in every PDEA unit and other law enforcement units that
will be designated to officially receive and be responsible to all subpoena/orders to ensure
service of notices to all concerned.
1) Each police operative/officer of PDEA and other drug law enforcement units
including other government officials and/or employees shall inform his/her
immediate superior of the drug case(s) where he/she is appearing or stand to
appear and to serve as a prosecution witness, the status of the case, the
nature of his/her testimony, the date(s) of hearing and court where he/she may
testify;
2) Prosecution witness(es) shall not be transferred or re-assigned to another

unit or place of work outside of his/her present territorial jurisdiction EXCEPT
for compelling reasons;
3) In the event that the transfer or re-assignment of prosecution witness is

unavoidable or re-assigned for compelling reasons, he/she or his immediate
superior shall inform or notify the court and the prosecutor handling the case as
well as the office of the city or provincial prosecutor where the case is pending
of the order of transfer or re-assignment within twenty-four (24) hours from its
approval;
4) Upon the issuance of the Order for transfer/re-assignment, the immediate

superior of the police officer and/or the superior officer of other prosecution
witness(s) concerned shall immediately coordinate with the prosecutor handling
the drugs case and to the court where the case is pending trial relative to the
transfer or re-assignment;
5) The initial coordination herein mentioned shall be done thru telephone or

other means of communication whichever is available within the day the order
was received to be followed by formal letter coordination within ten (10) days
from receipt of the Order. The letter coordination shall include therein the
compelling reason(s) for such transfer and the assurance that said witness(es)
shall appear and testify before the office of the city/provincial prosecutor or the
court(s) as the case may be, provided that:
a. When the transfer is to another jurisdiction within the same region, the regional
director of the PDEA or other drug enforcement agencies or units shall be
responsible for such coordination.
b) When the transfer is to another jurisdiction outside of the Region, the

administrative service of the PDEA or other drug enforcement agencies or units
shall be responsible for such coordination.
6) The superior officer or immediate officer concerned in their respective units shall also
issue the appropriate letter orders to the prosecution witnesses with a directive for him/her
to attend all scheduled hearings where his/her testimony is needed, which letter order
shall be the basis for the grant of financial and or logistical support needed for his/her
attendance at the hearings.
7) The superior officer of the prosecution witness concerned shall ask officially in writing
the prosecutor handling the case to have his/her testimony be heard in a marathon hearing
to minimize the need of his/her appearance to avoid unnecessary inconveniences and
expenses on his/her part and of the government.
8) The superior or immediate officer shall also ensure that the prosecution witnesses is
properly informed of their responsibilities towards the courts and the significance as
witness(es) to ensure a successful prosecution of the case.
9) The prosecution witnesses shall secure a certificate of appearance from the city/provin-
cial prosecutor’s office or court where the case is being heard, stating therein the date of
his/her appearance, the title and docket number of the case, the date of the next hearing
and if his/her appearance is still needed. The prosecution witness shall likewise make a
written report to his/her superior officer relative of his/her appearance in the court or in the
city/provincial prosecutor.
10) The PDEA and other law enforcement agencies and/or units shall monitor the case
and regularly submit a monthly report of prosecution witnesses who failed to appear with-
out any valid reason during the scheduled hearing and/or preliminary investigation. The
Legal Prosecution Service shall request their respective superior officers to direct the
concerned officers to explain their non-appearance. Other agencies/units where these
prosecution witnesses may belong shall adopt the same or similar case monitor.
11) Appropriate criminal as well as administrative charges shall be filed against these
prosecution witnesses who failed to appear without valid reason(s) and/or their immediate
superior who failed to inform the court and the prosecutor handling the case and the office
of the Provincial or City Prosecutor of the transfer/re-assignment within one (1) day ahead
of the scheduled hearings/ trials.
12) The immediate superior of prosecution witnesses shall submit a quarterly report to
the PDEA who in turn shall submit to the Board a summary of the same on the appear-
ances of operatives/officers as prosecution witnesses before the court(s) and/or office of
the Provincial/City Prosecutor including their names, fact of transfer/re-assignment, court
where they are appearing and the nature of their testimony and in what case/s where their
testimony is needed.
Section 4. Penalty Clause – any violation of this Regulation shall be subject to

administrative sanctions, as well as the penal provisions under Section 32 of RA 9165,
without prejudice to any other criminal liability provided for in RA 9165 and the Revised
Penal Code.
Section 5. Effectivity - This Regulation shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation and after its registration with the
Office of the National Administrative Register (ONAR), UP Law Center, Quezon City.
(SGD.) VICENTE C. SOTTO III

Secretary
Attested by:

DEPARTMENT OF AGRARIAN REFORM

Administrative Order No. 07, s. 2008
Guidelines Relative to the Supreme Court Ruling on the Sutton

Case Regarding Lands Which are Actually, Directly and Exclusively
Used for Livestock Raising
The Supreme Court of the Philippines declared in the case entitled, “Department of
Agrarian Reform (DAR) versus Delia T. Sutton, et. al. (G.R. No. 162070, 19 October 2005)
that the DAR has no authority to regulate livestock farms which have been exempted by
the Constitution from the coverage of agrarian reform.
The Supreme Court’s decision in the above-cited case was based on its appreciation
of the intent of the framers of the Constitution relative to livestock raising lands, etc., as
shown in the following statement/quote from the text of the decision: “the deliberations of
the 1987 Constitutional Commission show a clear intent to exclude, inter alia, all lands
exclusively devoted to livestock, swine and poultry raising.” Clearly, the Supreme Court
decision reaffirmed “exclusivity” of use as a requisite for land devoted to livestock, poultry
and swine raising to be deemed excluded from the coverage of CARP.
To guide the Department in the coverage of agricultural lands under CARP based on
the above-cited Supreme Court decision, the following policy guidelines are hereby is-
sued:
1. Private agricultural lands or portions thereof actually, directly and exclusively used for
livestock purposes other than agricultural like cattle raising as of 15 June 1988 and
continuously and exclusively utilized or devoted for such purpose up until the time of
inventory as provided under Item 3 of this Order, shall be excluded from CARP coverage.
2. Conversely, landholdings or any portions thereof not actually, directly and exclusively
used for livestock raising are subject to CARP coverage if one or more of the following
conditions apply:
2.1 There is agricultural activity in the area, i.e., cultivation of the soil, planting of
crops, growing of fruit trees, including the harvesting of such products, and other
farm activities and practices, whether done by a natural or juridical person and
regardless of the final use or destination of such agricultural products; and/or
2.2 The land is suitable for agriculture and it is presently occupied and tilled by
farmer/s.
3. The Municipal Agrarian Reform Officer (MARO), together with a representative of the
DAR Provincial Office (DARPO), shall conduct an inventory and ocular inspection of
all agricultural lands with livestock raising activities.
4. A report on the inventoried and inspected lands with the following information shall be
submitted by the MARO and the DARPO representative to the Provincial Agrarian
Reform Officer (PARO):
* Name of landowner;
* Location of property, title number and area;
* Actual land use;
* Existence of agricultural activity;
* Type of animals raised and/or agricultural commodities produced; and
* Other information vital to the determination of coverage of the land or portions thereof
under CARP.
5. In case any of the conditions under Items 2.1 and 2.2 of these guidelines are evident,
the PARO shall immediately proceed with the issuance of Notice of Coverage (NOC)
on the subject landholding or portions thereof.
6. Pursuant to DAR Administrative Order (A.O.) No. 04, Series of 2005, the landowner
has thirty (30) days from receipt of the Notice of Coverage within which to file protest
on the coverage. He shall be given another thirty (30) days from date of the filing
thereof within which to present evidence or documents with probative value to support
his protest.
7. The processing and settlement of all protests on the coverage of the subject landholding
under these guidelines shall be governed by DAR A.O. No. 03, Series of 2003 entitled,
“2003 Rules for Agrarian Law Implementation Cases.”
8. Any act of a landowner to change or convert his/her agricultural land for livestock
raising shall not affect the coverage of his/her landholding under CARP. Any
diversification or change on the agricultural use of the landholding, or shift from crop
production to livestock raising shall be subject to the existing guidelines on land use
conversion.
9. In line with the principle on regularity in the performance of mandated and official
functions, all processes undertaken by DAR pursuant to A.O. No. 09, Series of 1993
and A.O. No. 1, Series of 2004 are valid. Accordingly, the EPs or CLOAs issued to
agrarian reform beneficiaries (ARBs) for such lands likewise remain valid.
10. Any petition to nullify the coverage of said lands under CARP and the EPs/CLOAs
issued therefore shall not be given due course. Further, in consonance with the doctrine
on indefeasibility of EPs/CLOAs being titles of ownership under the Torrens System of
registration, and pursuant to DAR Memorandum Circular No. 19, Series of 2004 entitled,
“Reaffirming the Indefeasibility EPs and CLOAs as Titles under the Torrens System,”
no order or decision for CARP exclusion which carries with it the cancellation or recall
of EPs/CLOAs shall be issued.
All issuances of the DAR which are inconsistent herewith are hereby revoked, amended,
or modified accordingly. This Administrative Order shall take effect ten (10) days after its
publication in two (2) newspapers of general circulation.
(SGD.) NASSER C. PANGANDAMAN
Secretary
—o00—
Administrative Order No. 08, s. 2008
Revised Guidelines and Procedures Governing the Substitution of

Beneficiaries of Lands Within Landed Estates Acquired by the
Department of Agrarian Reform Under Republic Act No. 3844,
as Amended, and for Other Purposes
Article I
Prefatory Statement
Landed estates under R.A. No. 3844, as amended, were acquired and distributed by
the government way back in 1963 to 1972 but a substantial number of these beneficiaries
are no longer in possession of the land allocated to them due to, among others, abandon-
ment, waiver of rights, and illegal transfer or sale of rights.
Limitation on land rights as provided for in R.A. No. 3844, as amended by R.A. No.
6839, para. 15, Section 16, provides that all agricultural lands either public or private,
distributed by the government to the beneficiaries of the Agrarian Reform Program shall be
sold only by the said beneficiaries to the government.
The same Code likewise provides the prohibition for further subdivision of awarded lot
purposely to maintain the economic viability of agricultural lands (Sec. 63, R.A. No. 3844).
It is this context that necessitates the formulation of policy and procedures to ensure
the proper disposition of previously awarded lands to new beneficiaries to fast tract the
issuance of new titles to align with the applicable provisions as provided for by the new law,
particularly R.A. No. 6657, as amended.
In view therefore, these new policy guidelines and procedures are hereby adopted.
Article II
Policy Statement
1. Except through hereditary succession to one heir, the sale, transfer, or waiver rights of
lands covered by this Order shall be made only in favor of the government.
2. Award to the beneficiary who violated the applicable provision of the law and its rules
and regulations, or those who voluntarily waived their rights to the government, shall
be cancelled and whatever payments made on account of the lot subject of cancellation
shall be forfeited in favor of the government and shall be treated as rental for the use of
the land, and the land shall be declared open for disposition to other qualified farmer/
applicant.
3. Farmers as defined under para. (F), Section 3 of R.A. No. 6657 shall be given the
preference to apply for the lands covered by this Order. Employees of the Department
of Agrarian Reform and other government agencies, as a policy, shall be prohibited
directly or indirectly to acquire lands covered by this Order or in any lands under the
Agrarian Reform Program, except where the parents of the applicant were original
tenant or allocatee/awardee of lands subject of application. For government agencies,
the provisions of DAR Administrative Order No. 04, series of 2006 shall apply.
4. The maximum area to be awarded to the new beneficiary shall not exceed three (3)
hectares of farm lot, and one thousand (1,000) square meters of home lot. In case
where the area applied for exceed the maximum limit, the tolerable limit of 10% in
excess as provided for under A.O. No. 03, series of 1985 shall apply. However, an
allocatee or qualified registered claimant before 1972 who has not yet been issued a
CLT or Order of Award and who remains in possession of the land shall be entitled to
the maximum award prescribed under R.A. No. 3844.
5. Agrarian reform beneficiaries or qualified farmer/applicant who owns agricultural land

below the award ceiling as provided for under R.A. No. 6657 may still apply as beneficiary
under this Order provided that the combined area owned/awarded and that being applied
for shall not exceed three (3) hectares.
6. Awardees or beneficiaries of the agrarian reform program who illegally sold, transferred,
abandoned, or waived their rights to the land awarded to them shall no longer be
eligible to apply for lands covered by this Order.
Article III
General Provisions
Section 1. Coverage. This Order shall cover the substitution of awardee/beneficiary

and the issuance of Order of Award in Landed Estates acquired under R.A. No. 3844, as
amended, over which the previous CLT/CLOA/Order of Award has been cancelled by final
order of the competent authority, and lands within landed estates not yet awarded and
distributed.
Sec. 2. Qualifications of Applicant. An applicant for a farmlot must be:
a. a Filipino citizen, at least 18 years of age at the time of filing of the application;
b. Landless as defined under Sec. 25 of R.A. No. 6657;
c. a bonafide farmer as defined under para. (F), Sec. 3 of R.A. No. 6657 and has the
willingness, ability and aptitude to cultivate and make the land productive;
d. if married, his/her spouse is not an owner or awardee of agricultural land except in
cases where the area does not exceed the award ceiling including the area of the lot
subject of the application.
An applicant for a farmlot, or an awardee/allocatee of a farmlot may likewise apply for

a homelot provided that he/she must be:
a. a Filipino citizen at least 18 years of age at the time of filing of the application;
b. neither he/she or his/her spouse is an owner/awardee of any residential lot or homelot;
c. preferably a farmer by occupation.
Sec. 3. Operating Procedures.
a. The applicant shall accomplish and submit to the MARO the Application to Purchase
Lot (Form No. 1) in five (5) copies duly sworn to before the Municipal Agrarian Reform
Officer, together with the following documents:
1. Certificates of landholdings in the name of the applicant and spouse, if married,

issued by the Municipal/City and Provincial Assessors’ Office;
2. Joint Affidavit of applicant and spouse regarding the extent of their landholdings
(Form No. 2);
3. BARC Chairman or Barangay Chairman Certification attested by the MARO
certifying that the applicant is a bonafide farmer who derives his livelihood primarily
from farming (Form No. 3).
b. The Municipal Agrarian Reform Office (MARO) shall:
1. Evaluate the documents submitted and verify the record of the lot;
2. Conduct lot inspection and investigation and determine whether or not the applicant
is qualified to acquire the lot;
3. Post the Notice of Application (Form No. 1-A) for 15 days at the MARO and
barangay hall and thereafter, if there is no protest to the application filed, issue a
certification to that effect;
4. Prepare the Sketch of the Lot (Form No. 4) indicating therein the area subject of
the application, improvements, and previous awardee/allocatee, if any, thereof;
5. Prepare the Investigation Report (Form No. 5) with his/her comments and
recommendation; and,
6. After retaining the file copies of the documents, forward the Application to Purchase
Folder (APF), which contains all the documents to the PARO, for review.
c. The Provincial Agrarian Reform Office (PARO) shall:
1. Review the documents submitted in the APF and verify the record of the subject
lot;
2. Issue Legal Clearance (Form No. 6) whether or not the lot subject of the application
is involved in any adverse claim/conflict or has a pending case;
3. If in order, prepare the Order of Award (Form No. 7) affixing the initial of the Provincial
Agrarian Reform Program Officer;
4. After retaining the file copies, forward the APF to the Regional Office with comments
and recommendations, for further review, and final action.
d. The Regional Agrarian Reform Office (RARO) shall:
1. Review the documents submitted in the APF and verify the record of the subject
lot;
2. Issue the Legal Clearance (Form No. 8) and in case where the lot subject of the
application had been involved in a cancellation proceeding, indicate in the same
form whether or not the Order has become final and executory, and attach the
certified copy of the Order of Cancellation, original copy of the cancelled Certificate
of Land Transfer (CLT) or cancelled Order of Award, or the Waiver of Rights executed
by the former awardee and/or the report leading to the cancellation.
3. Verify the correctness of the Sketch Plan based on the approved Plan certified by
the Chief, Surveys Division;
4. If the application finds merit, the Regional Director issue and sign the Order of
Award and forward the same together with the APF to the Records Division for
proper disposition.
e. The RARO Records Division shall:
1. Assign the Control Number to the approved Order of Award and distribute the
copies in the following order:
a) Original Copy – to the Awardee

b) Duplicate Copies each to the following:
i. DAR Regional Office

ii. DAR Provincial Office
iii. DAR Municipal Office
iv. Land Bank of the Philippines
v. BLAD-DARCO
vi. RMD-DARCO
2. Maintain and safekeep the APF for future reference.
f. The awardee shall:

1. Submit to the LBP-FO the original copy of the Order of Award or CLT together with
the request for the computation of the cost of the awarded land.
2. Pay the cost of the lot in installment or cash basis for issuance of CTS or DAS, as
the case maybe, by the LBP.
g. The LBP shall:
1. Collect land amortization payments and prepare the necessary CTS or DAS in
case of full payment for signature of the LBP authorized official;
2. Upon full payment, the LBP through its authorized representative, issue the DAS
and owner’s duplicate copy of the TCT to the awardee for registration and issuance
of a new TCT.
Article IV
Final Provisions
Sec. 1. Miscellaneous Provisions. For purposes of this Order, the Municipal Agrarian
Reform Officer who has direct jurisdiction over landed estates acquired under R.A. No.
3844, is hereby authorized to administer the Oath on the Application to Purchase filed by
the farmer/applicant.
Waiver of Rights executed by the allocatee, awardee or beneficiary, shall be verified

before a Notary Public.
The Regional Director is authorized to issue permit to further subdivide the lot, pro-
vided that the economic viability of subject land shall be maintained.
Sec. 2. Suppletory Provisions. The Regional Director concerned shall continue to

exercise the authority to cancel, amend, and/or make necessary correction through the
issuance of the Order of Cancellation/Amendment of Certificate of Land Transfer, Order of
Award, or allocation of farmer beneficiaries who violated the rules and regulations, other
grounds and reasons that necessitate action pertaining thereto, provided that due process
has been properly observed, pursuant to the applicable provisions of DAR A.O. No. 3,
series of 1990, as amended, and A.O. No. 3, series of 2003.
Sec. 3. Amendatory/Repealing Clause. All other Orders, Circulars, and Regulations

inconsistent herewith are hereby modified or repealed accordingly.
Sec. 4. Effectivity. This Order takes effect ten (10) days after its publication in two (2)
newspapers of general circulation.
(SGD.) NASSER C. PANGANDAMAN

Secretary
—o0o—

Joint DAR-CDA Administrative Order No. 09, s. 2008
Revised Rules and Regulations on ARB Membership Status and

Valuation and/or Transfer of Paid-Up Share Capital in Agrarian Reform
Plantation-Based Cooperatives

DEPARTMENT OF AGRICULTURE
Administrative Order No. 30 s. 2008
Revision of Administrative Order No. 25 – Guidelines on the Certification

of Good Agricultural Practices (GAP) for Fruits and Vegetable (FV)
Farming – On Fees, Duration of Renewal of Certificate and Modular
Approach to Certification
Pursuant to Administrative Order No. 25 s. 2005 specifying the Guidelines for the
Certification of Good Agricultural Practices (GAP) for Fruits and Vegetable Farming, the
Bureau of Agriculture and Fisheries Products Standards (BAFPS) in collaboration with the
regional field unit offices of the Department carried out numerous training programs to
disseminate information on GAP to the concerned stakeholders and create awareness. In
the course of the activities conducted, the Bureau as the Secretariat of the Program was
informed of the difficulties faced by farmers regarding certification fees and cost of analy-
ses. In a related note, the Department has also initiated the benchmarking process of the
PhilGAP with that of GLOBALGAP so as to ease the process of exporting our high quality
and safe fresh and vegetables.
This Administrative Order revises the provisions stipulated in Sections 4.4, 5.1.2
and 6.1 of A.O. No. 25 pertaining to fees and renewal of GAP certificate
1. Fees
1.1 The cost of certification pertaining to the administrative expenses to be incurred by the
Committee and the GAP Inspectors during the evaluation, inspection and audit shall be
free of charge and will be shouldered by the BAFPS.
1.2 For farmer applicants applying for its first certification, the cost of analyses for the first
sampling shall be free and will be borne by BAFPS. However, in cases when the results of
analyses proved that the practices of the farmer applicant fell below the standards set, the
inspectors shall be compelled to conduct another sampling after the corrective actions
has also been complied with. The cost of analyses for the subsequent sampling shall be
borne by the farmer applicant.
1.3 Farmer applicant applying for renewal of certificate, the cost of analyses for the first
sampling shall be free and shall be borne by BAFPS. The cost of analyses for subsequent
samplings shall be borne by the applicant, in cases where the chemical and microbial
results of the analyses of the first sampling are non-compliant with the standard.
1.4 Re-certification requires the re-audit of farm on the GAP-FV guidelines and will be
conducted one (1) month prior to the expiry of the existing certification.
1.5 During conduct of regular monitoring of GAP certified farmers, the costs of analyses
shall be free of charge.
2. Renewal of GAP Certificate
2.1 GAP certified farms shall renew GAP certificate by submitting a new application one
(1) year after it has been issued.
2.2 Application for renewal shall be done one (1) month prior to the anniversary date of the
certificate. Re-certification requires the re-audit of farm on the GAP-FV guidelines and
shall be conducted one (1) month prior to the expiry of the existing certification. Audit for
the purpose of re-certification shall be conducted preferably during the harvesting season
so as to cover as many points in the checklist as possible. In situations where there is no
crop or produce present at the time when the annual inspection is due, and providing that
the farmer has already signified his intention for re-certification at the end of the period of
validity of the previous certificate, the Department may opt to extend the validity of the
previous certificate by up to 3 months longer than the 12 month period (15 months in total).
This is to give ample time when the farm may be inspected with presence of crop/produce.
An extension can only be granted if the farmer applicant re-registered before the expiry
date.
2.3 Upon receipt of the renewal request, a new certificate shall be issued and an inspec-
tion shall be performed within the following thirty (30) days, preferably during the growing or
packing season.
2.4 An applicant may, at his option, seek certification on any one or all or two or three
combination of the four modules of GAP certification i.e. on food safety, produce quality,
environmental safety and workers health and safety. The certificate to be issued shall
explicitly state the specific modules applied for.
This Order shall take effect fifteen (15) days after its filing with the UP Law Center.
Adopted: 05 August 2008
APPROVED:

Secretary
Departure of Agriculture
DEPARTMENT OF ENERGY
Department Circular No. DC2008-09-0004
Department of Energy (DOE) Assessment and Accreditation

Program of Energy Service Company (ESCO)
WHEREAS, pursuant to Section 5 of R.A. 7638, the Department of Energy shall

have the following powers and functions, among others:
(a) Formulate policies for the planning and Implementation of a comprehensive program
for the efficient supply and economical use of energy consistent with the approved na-
tional economic plan and with the policies on environmental protection and conservation
and maintenance of ecological balance, and provide a mechanism for the integration,
rationalization, and coordination of the various energy programs of the Government;
(b) Formulate and implement programs, including a system of providing incentives and
penalties, for the judicious and efficient use of energy in all energy-consuming sectors of
the economy;
(c) Formulate such rules and regulations as may be necessary to implement the objec-
tives of this Act; and
(d) Exercise such other powers as may be necessary or incidental to attain the objectives
of this Act.
WHEREAS, it is recognized that Energy Efficiency (EE) opportunities abound in

Industrial, Commercial and Institutional sectors in the country.
WHEREAS, the promotion of ESCOs in the country can create an accurate and
achievable energy savings projects from various stakeholders, freeing them from financial
and technical burden in undertaking retrofitting/improving EE.
WHEREAS, ESCO intends to provide contribution towards establishing or enhancing

collaboration and partnership among organizations for the promotion and adoption of EE
products and technology to include services, which are meant to create or facilitate business
opportunities in the Philippines.
WHEREAS, ESCO provides energy service business to develop and implement

turnkey comprehensive EE projects. Also, it offers project engineering design, financing,
project management and after performance-based project approach.
WHEREFORE, all ESCOs are hereby required to secure accreditation from the
Department of Energy following the Accreditation Criteria (hereto attached as Annex “A”)*.
Accredited ESCO shall submit, thereafter, reports on status of the projects undertaken
thereof.
*Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman,
Quezon City.
For this purpose Application Form (hereto attached as Annex “B”*) should be used in
the application and shall be submitted in the address indicated below. Processing of the
application shall be five (5) working calendars days and applicant will be notified accordingly.
All application should be submitted to the following address:
ENERGY EFFICIENCY AND CONSERVATION DIVISION

ENERGY UTILIZATION MANAGEMENT BUREAU
DEPARTMENT OF ENERGY
Energy Center, Merritt Rd.; Fort Bonifacio, Taguig City
Trunkline: 479-2900 Locals 272 and 274
Direct Line: 840-2283
All clarifications or request for assistance in the preparation of the Application Form
and the submission of reports shall be coursed through the above-mentioned office at said
address and contact numbers.
This Circular shall take effect fifteen (15) days after its complete publication in a news-
paper of general circulation.
(SGD.) ANGELO T. REYES

Secretary
--o0o--
SCHEDULE OF FEES AND CHARGES
In compliance with Executive Order No. 197, dated 13 January 2000, and Executive
Order No. 218 dated 15 March 2000, on the fees and charges collected by National Gov-
ernment Agencies and Government-Owned and Controlled Corporations, the following is
the amended fees and charges to be collected by the Department of Energy (DOE) effec-
tive immediately after publication in two (2) newspaper of general circulation:
Name of Fee Issuing Bureau Amount (Peso)
1 Certificate of Endorsement (CoE) to Electric Power (Existing Fees and

Energy Regulatory Commission Industry Charges: P100 per
(ERC) issued by the Department of Management megawatt of installed
Energy (DOE) to a Generating Bureau (EPIMB) capacity or a minimum
Company and/or New Generating of P10,000.00)
Facility in compliance with Part II Rule
5 of the Implementing Rules and
Regulations of Republic Act No. 9136
Quezon City.
Amended Fees and

Charges:
Less than 1 MW = PhP500.00

1MW to less than 10MW =
Php1,000.00/MW
10 MW and above =
PhP10,000.00 or
PhP100.00/MW whichever
is higher
Approved by:
(SGD.) ANGELO T. REYES

Secretary
DEPARTMENT OF ENVIRONMENT AND NATURAL

RESOURCES
DENR Administrative Order No. 2008-22
Revised Guidelines on the Deputation of Environment

and Natural Resources Officer (ENRO)
Pursuant to Executive Order No. 192, and to directly involve the citizenry in the
protection and conservation of the country’s environment and natural resources, the following
guidelines on the deputation of environment and natural resources officers are hereby
issued for the guidance of all concerned:
Section 1: Scope and Coverage. This Order shall apply to individuals or groups that
are willing to be involved in the protection and conservation of the country’s environment
and natural resources through the issuance of a deputation order by the DENR. This does
not include protected areas with existing systems on deputation as defined in their specific
Republic Acts.
Section 2. Definition of Terms: For purposes of this Order, the following terms shall
be construed to mean as follows:
a) Deputy Environment and Natural Resources Officer (DENRO) – individuals or groups

duly deputized by the DENR, for a period of one year or longer, over a specific area of
jurisdiction and sector (e.g. Forestry, Mines) as stated in the deputation order.
b) Special Deputy Environment and Natural Resources Officer (SDENRO) – persons or

entities duly deputized by the DENR, to act on specific case or cases for a specified
period under a special deputation order. SDENROs must have knowledge and technical
capability on the enforcement of particular environment and natural resources laws, rules
and regulations.
Section 3. Functions and Duties of DENRO/SDENRO
3.1 Assist in the enforcement of laws, rules and regulations governing environment, forest-
lands, mineral lands, protected areas (i.e. national parks, marine resources and sanctuar-
ies) and other lands of the public domain under the jurisdiction of the DENR within their
locality;
3.2 Assist in the issuance of apprehension receipts, seizure orders and notices of admin-
istrative hearings including the proceedings necessary for the conduct of the administra-
tive adjudications of illegally procured, transported, owned/possessed and/or utilized for-
est products, wildlife (flora and fauna), minerals and other natural resources.
3.3 Arrest, even without warrant, any person who has committed or is committing in his/
her presence any of the offenses provided in environmental and natural resources laws,
rules and regulations.
3.4 Deliver within the period prescribed by law from the time of arrest and seizure, the
offender including the apprehended natural resources products, tools/equipment and con-
veyances and coordinate with the appropriate official designated by law to conduct prelimi-
nary investigation prior to the filing of information in Court through the CENRO or PENRO
or Regional Executive Director, where it is most expediently available.
3.5 Act as witness in Court for the speedy prosecution of criminal complaints against
violators of environmental and natural resources laws, rules and regulations.
3.6 Assist in the conduct of environment and natural resources information campaign,
such as meetings, public assembly, and other extension activities within their areas of
jurisdiction in coordination with DENR officers and personnel of other government or private
agencies involved in similar work; and
3.7 Submit monthly accomplishment reports to the CENRO or to the Field Operations
Office or in the case of SDENRO the Regional Technical Director/Regional Director or
Bureau having jurisdiction over their area of responsibility, using the standard reporting
form attached as “Annex 1”*.
Section 4. Individual/s and Groups Qualified for Deputation
4.1 Filipino citizen (natural born or naturalized) of legal age.
4.2 Duly elected or appointed local government officials, except for members of the Pro-
tected Area Management Board as may be designated by the DENR Secretary.
4.3 Military and Police Officers;
Quezon City.
4.4 Environment and Natural Resources Officers (ENROs) of the local government units;
4.5 Company Foresters and Concession Guards of TLA Holders and other tenurial instru-
ment holders such as Forest Land Grazing Management Agreement (FLGMA) and Social-
ized Industrial Forest Management Agreement (SIFMA) and Industrial Forest Manage-
ment Agreement (IFMA);
4.6 Qualified employees of Financial or Technical Assistance Agreement (FTAA) and Min-
eral Production Sharing Agreement (MPSA) holders and other holders of environment and
natural resources agreements;
4.7 Participants of the Community-Based Forest Management Program (CBFMP) Com-

munity Based Program in Protected Areas (i.e., Protected Areas Community Based Re-
sources Management Agreement holders), Ancestral Domain Management Program
(ADMP), and other members/officers of Multi-Sectoral Committees created under and/or
by virtue of DENR rules and regulations.
4.8 Members of DENR-accredited non-government organizations as defined under DENR

Adm. Or. No. 52, s. 1992 (“Amending Department Administrative Order No. 120, s. 1989,
Otherwise Known as the “General Rules and Regulations on the Participation of Non-
Governmental Organizations in the DENR Program”);
4.9 Other Individuals that may de deputized upon the discretion of the Secretary.
Section 5. Additional Qualification
Prospective DENRO/SDENRO should possess the following qualifications
5.1 Resident of, or assigned to, the area specified in the deputation order;
5.2 Know how to read and write;
5.3 Physically fit mentally sound;
5.4 Of good moral character;
5.5 Should have passed the orientation or training courses under Section 8 hereof;
5.6 Willing to perform the functions and duties of DENRO/SDENRO without compensa-
tion; and
5.7 Not engaged in business which involves licensing requirements from DENR or has no
conflict of interest with the task he/she may perform under the deputation.
Section 6. Deputation Procedure for DENRO
6.1 General Procedures

6.1.1.Application for deputation of individuals and members of groups with

community and up to region-wide membership shall be processed and approved
in the respective regions.
6.1.2.Application for deputation of members of groups with multi-regional and/

or nationwide membership shall be processed at the Central Office.
6.1.3.The application period is January 1- March 31. However, the Secretary

may deputize an individual or group/organization, any time as deemed necessary.
6.2 Specific Procedures
6.2.1 For Individuals
a. Applications shall be submitted to the nearest CENR Office accompanied by the follow-
ing documents:
i. Endorsement from the organization head/employer, or barangay clearance

signed by the Barangay Chairman
ii. Biodata with ID picture
iii. Certificate of good moral character issued by the Barangay Chairman of
the area or from the Parish Priest/Minister/Imam where the applicant resides
iv. Police Clearance
v. Sworn statement that the applicant is willing to perform the functions and
duties of a DENRO/SDENRO without compensation
b. The CENRO shall receive the application, check the completeness of the documents
and validate that the applicant has no record of violations of any ENR rules and regulations.
Only applicants with complete documents and found to have no record of violations of any
ENR rules and regulations shall be recommended for training.
Non-qualifying applicants shall be informed in writing stating reasons for rejection

of application such as derogatory records, failure to comply with provisions of agreements
in previous dealings with DENR and other governing agencies and other similar grounds.
c. The CENRO within two (2) working days from the submission of application shall
forward the application and all pertinent documents to the PENRO.
d. Within two (2) working days, the PENRO shall evaluate the documents and forward the
applications to the RED.
e. The RED shall authorize the Regional HRD Staff to conduct training of qualified applicants
which will commence fifteen (15) days after the end of the application period.
f. The trainees shall be evaluated by the Regional HRD Staff based on performance criteria
to be developed by the Office of the Undersecretary for Field Operations. Those who do
not pass the performance evaluation shall be informed in writing within 5 days after the
last day of the orientation/training.
g. The RED shall issue all deputation orders to successful trainees after clearance from
the office of the Undersecretary for Field Operations.
6.2.2.For members of groups/organizations with community and up to region-

wide membership
a. Group applications shall be submitted to the Regional Office accompanied by the fol-
lowing documents:
i. Certified copy of Certificate of Registration with the SEC, CDA, NCIP or

other accrediting office;
ii. Certificate of Organization’s accreditation issued by the DENR;
iii. Sworn Statement by the president/head of the group that the members who
will be deputized are willing to perform the functions and duties of DENRO/
SDENRO without compensations;
iv. List of members who will be deputized and their biodata with group
certification that they are:
~ physically and mentally fit; and
~ of good moral character
b. The Office of the RED shall validate that the applicant has no record for violations of any
ENR rules and regulations. Only applicants with complete documents and found to have
no record of violations of any ENR rules and regulations shall be recommended for training
Non qualifying applicants shall be informed in writing stating the grounds for rejec-
tion of the application such as derogatory records, failure to comply with provisions of
agreements in previous dealings with DENR and other governing agencies and similar
c. The RED shall authorize the Regional HRD Staff to conduct training of qualified appli-
cants which will commence fifteen (15) days after the end of the application period.
d. The trainees shall be evaluated by the Regional HRD Staff, based on performance
criteria to be developed by the Office of the Undersecretary for Field Operations. Those
who do not pass the performance evaluation shall be informed in writing within 5 days
after the last day of the orientation/training.
e. The RED shall issue all deputation orders to successful trainees after clearance from
the Office of the Undersecretary for Field Operation:
6.2.3. For members of groups/organization with multi-regional and/or nation wide mem-
bership
a. Group applications shall be submitted to the Office of the Undersecretary for Field
Operation accompanied by the same documents as in Item a, Sec. 6.2.2.
b. The Office of the Undersecretary for Field Operations shall receive the application and
validate that the applicant has no record of violations of any ENR rules and regulations.
Only applicants with complete documents and found to have no record of violations of any
ENR rules and regulations shall be authorized for training.
Non qualifying applicants shall be informed in writing stating reasons the grounds for
rejecting the application such as derogatory records, failure to comply with provisions of
agreements in previous dealings with DENR and other governing agencies and similar
c. The Undersecretary for Field Operations shall authorize the conduct of the training to
qualified applicants which shall commence fifteen (15) days after the end of the application
period. However, for the group/organization that has regional memberships, members may
be allowed to attend the training/orientation conducted by the Regional HRDS.
d. The group/organization members who have undergone the training/orientation shall be

evaluated by the Regional/Central Office HRDS, based on a set of criteria that have been
developed. Those who pass shall be recommended for deputation. Those who are not fit to
be deputized based on the evaluation by the HRDS shall be informed in writing within 5
days after the last day of the training.
e. The Secretary or his/her authorized representative shall issue the group/ organization
deputation order for those who passed the training.
Section 7. Deputation Procedures for SDENRO. SDENROs shall be deputized by

the Regional Executive Directors, based on the recommendation of the Regional Technical
Director or Regional Director concerned. At the Central Office, the Secretary or his/her
authorized representative shall issue the Deputation Order, upon the recommendation of
the Undersecretary for Field Operations and the Bureau Director concerned.
7.1 Within Three (3) months of the effectivity of this Order, and continuously thereafter,
the Offices of the Regional Executive Directors and Bureau Directors shall come up with
a list of potential SDENRO based on the required technical expertise pertaining to their
sectors; provided that said potential SDENRO shall posses the additional qualifications
listed in items 5.2 to 5.7, Section 5 hereof.
7.2 Potential SDENROs shall be invited by the REDs and Bureau Directors to become
members of the pool of SDENROs, and upon their agreement, will undergo an orientation
program to be conducted by the Regional/Bureau Human Resource Development Staff.
The modules for the program shall be assigned by the HRDS Central Office and shall be
ready for implementation within three (3) months from the effectivity of this Order.
7.3 Those who have undergone the orientation program shall comprise the pool of SDENRO
from where the RTDs/RDs/Bureau Director may recommend a SDENRO for deputation
the need arise.
7.4 The Offices of Regional Executive Directors/Bureau Directors shall maintain a data
base of the potential SDENRO, copy furnished the Office of the Undersecretary for Field
Operations.
Section 8. Orientation and Training
8.1 The Human Resource Development Service of the DENR in coordination with the
concerned bureaus and the Office of the Undersecretary for Field Operations shall prepare
standard orientation and training modules and materials to be used in the training and
orientation for prospective DENRO/SDENRO. The training/orientation module shall consist
of, but not limited to, basic knowledge on environmental and natural resources laws, rules
and regulations, investigation report preparation, preparation of and filing cases in court
and surveillance techniques.
8.2 To update DENRO, SDENRO and members of the SDENRO pools on environment
and natural resources sector including laws, rules and regulations, training shall be
conducted once a year Failure of the DENRO or the SDENRO to attend the training shall
be a ground for the automatic revocation of their deputation orders. Failure of the SDENRO
pool members to attend training shall be ground for dropping him/her from the pool. The
Regional Executive Director shall be responsible for the regular evaluation of the DENROs/
SDENROs. The Regional Human Resources Development Division shall submit a report
to the HRDS Central Office for purposes of monitoring the said activity.
Section 9. Performance Evaluation of DENRO/SDENRO. The performance and

compliance of the DENRO shall be evaluated by the CENRO or the Undersecretary for
Field Operations. The performance of the SDENRO shall be evaluated by the respective
RTDs/RDs/Bureau Directors. The Office of the Undersecretary for Field Operations (OUFO)
shall formulate the criteria, standard and evaluation system to be used in the performance
evaluation.
Section 10. Revocation/Termination of the Deputation Order. The Deputation Order

of DENRO/SDENRO may be revoked by the approving authority on any of the following
grounds:
10.1 when the specific case that gave rise to the approval and issuance of the Special
Deputation Order is terminated or ceases to exist even prior to the expiration of the said
deputation order.
10.2 when the DENRO/SDENRO is found to be ineffective in the implementation of DENR

laws, rules and regulations based on the performance evaluation as provided for in Section
9 hereto;
10.3 when found guilty in an administrative proceeding that he/she violated the Terms of
Reference (TOR) for deputation; the DENR can also file a case against him/her.
10.4 when the DENRO/SDENRO fails to attend the training referred to in item 8.1, Section
8 hereof; and
10.5 when the DENRO/SDENRO fails to submit monthly accomplishment reports for
three (3) consecutive months.
Section 11. Renewal of Deputation Orders for DENROs. The results of the Regional
Offices performance evaluation and attendance to the training as provided in item 8.1,
Section 8 hereof shall be the bases for the renewal of the Deputation Order for DENROs
with prior clearance from the Office of the Undersecretary for Field Operations.
11.1 General Procedures

11.1.1 Application for renewal of deputation of individuals and members of groups with
community and up to region-wide membership shall be processed and approved within the
respective regions.
11.1.2 Application for renewal of deputation of members of groups with multi-regional

and/or nationwide membership shall be processed at the Central Office.
11.2 Specific Procedures
11.2.1 At least one month before the expiry of the Deputation Order, DENROs
shall manifest their intention to remain as DENROs by submitting an application
for renewal to the CENRO/Regional Office/Undersecretary for Field Operations
as the case may be. The renewal application shall be accompanied by a
medical certificate and Sworn Statement that the applicant is willing to continue
to undertake the functions and duties of a DENRO without compensation. The
group’s renewal application shall be accompanied by Sworn Statement by the
president/head of the organization or Copy of the Board Resolution indicating
that a member/s listed is/are willing to continue to be deputized without
compensation, list of members that are willing to continue to be deputized and
medical certificates of the listed members. Only DENROs with complete renewal
applications and documentation shall be accepted.
11.2.2 The CENRO/Office of the Undersecretary for Field Operations shall

evaluate the application for renewal and validate that the DENROs have no
record of violations during the period he/she was appointed as DENROs. The
renewal application shall be transmitted to the RED or the Secretary or his/her
authorized representative recommending for approval/disapproval of the
application.
11.2.3 The RED or the Secretary or his/her authorized representative shall

issue the deputation order before the date of termination of the original deputation
order.
Section 12. DENRO/SDENRO Desks. A Special desk for DENRO/SDENRO shall

be created in the Office of the Undersecretary for Field Operations that shall keep the
master list of all the DENROs/SDENROs, the database of SDENROs pool members and
other documents pertaining to such matters. Copies of Deputation and Special Orders
shall also be furnished to the said Office by the Regional Offices. A Regional Desk shall
also be created to provide guidance and direction over DENROs/SDENROs operating
within its jurisdiction.
Monthly reports on the activities and accomplishments of DENROs/SDENROs

shall likewise be submitted to the Office of the Undersecretary for Field Operations for
monitoring purposes.
Section 13. Funding. All expenses relative to the implementation of this Order
which includes the conduct of orientation and trainings, processing of the applications and
maintenance of data bases shall be charged to the respective funds of the Regional Offices
and other concerned DENR Offices.
Section 14. Transitory Provision. All deputized DENRO/SDENRO prior to the approval
of these guidelines shall remain deputized, but will be subject to the procedure for renewal
set forth in this Order. Applications for Deputation that were received prior to issuance of
these guidelines shall still be processed in accordance with these guidelines.
Section 15. Repealing Clause. All orders, circulars, memoranda inconsistent herewith
are hereby repealed and/or amended accordingly.
Section 16. Effectivity. This order shall take effect fifteen (15) days after its complete
publication in a newspaper of general circulation and fifteen (15) days upon submission of
a copy to the Office of the National Administrative Register (ONAR).
(SGD.) JOSE L. ATIENZA JR.

Secretary
--o0o--
DENR Memorandum Circular No. 2008-05
Guidelines in the Preparation of Integrated

Watershed Management Plans
Pursuant to the Presidential Decree No. 705, otherwise known as the “Revised
Forestry Code of the Philippines” as amended, Executive Order No. 318, otherwise Known
as Promoting Sustainable Forest Management in the Philippines, DENR Administrative
Order No, 2005-23 entitled “Adoption and Implementation of Collaborative Approach to
Watershed Management”, and DENR Administrative Order No. 99-01 entitled “Adoption
of Watershed and Ecosystem Planning Framework”, and Joint DENR Memorandum
Circular No. 2003-01 entitled “Strengthening and Institutionalizing DENR-DILG-LGU
Partnership on Devolved and other Forest Management Functions”, the following guidelines
for the preparation of the Integrated Watershed Management Plans (IWMP) are hereby
promulgated for the information and guidance of all concerned.
Section 1. Basic Policies
The government has adopted sustainable development as a national policy for all
environment and natural resources plans and programs. Towards this end, it has employed
as one of its main strategies the integrated watershed management or the watershed
ecosystem management (WEM) approach.
It is the policy of the Department of Environment and Natural Resources (DENR)

to ensure the attainment and optimization of environmental, socio-cultural, economic
benefits from all watershed programs and projects through holistic, participatory
management and effective implementation of interventions to sustain their production of
multiple goods and services for the present and future generations.
Section 2. Objectives
The Objectives of this Memorandum Circular are:
2.1 To ensure that watershed management plans are consistent with the Watershed and
Ecosystem Management (WEM) framework;
2.2 To strengthen convergence and collaboration between and among various agencies,
and other stakeholders;
2.3 To develop and maintain an effective database management system for watershed
information; and
2.4 To upgrade the technical and operational capabilities of the DENR, LGUs, and other
stakeholders.
Section 3. Coverage
This Circular shall cover the preparation of integrated watershed management

plans of all watersheds regardless of their classification, size, use, and administrative
jurisdiction.
4.1 Forest – land with an area of more than 0.5 hectare and tree crown (or equivalent
stocking level) of more than 10 percent. The trees should be able to reach minimum
height of 5 meters of maturity in situ. It consists either of closed forest formations where
trees of various storeys and undergrowth cover a high proportion of the ground cover or
open forest formations with a continuous vegetation cover in which tree crown cover
exceeds 10 percent. Young natural stands and all plantations established for forestry
purposes, which have yet to reach a crown density of more than 10 percent or tree height
of 5 meters are included under forest.
4.2 Watershed - a land area drained by a stream or fixed body of water and its tributaries
having a common outlet for surface run-off. This include small watersheds with area of
10,000 ha and below; medium scale watershed with area of more than 10,000 ha to
50,000 ha; and large scale watershed with area above 50,000 ha.
4.3 Watershed Characterization – the process of describing the biophysical and socio-
economic characteristics and features of a watershed in order to have an understanding of
the various processes therein.
4.4 Watershed and Ecosystem Management (WEM) – the holistic, collaborative, mul-
tiple use and sustainable management of all resources within a planning unit known as
watershed.
4.5 Watershed Management – the process of guiding and organizing land and other
resource uses in a watershed to provide desired goods and services without adversely
affecting soil, water and other natural resources.
4.6 Vulnerability – degree to which a system is susceptible to, or unable to cope with
adverse effects of natural and man-made (anthropogenic) hazards.
4.7 Vulnerability Assessment – an analysis of the relationship between natural and

anthropogenic hazards and recipient subject (watershed). The vulnerability assessment
identifies the strength and weaknesses of the recipient subject in relation to the identified
hazard.
Section 5. Watershed Characterization.
Watershed characterization shall involve the gathering of information describing

the biophysical and socio-economic condition of a watershed and determination of issues,
vulnerability, and opportunities for development interventions.
The characterization process specifically involves the following activities:
5.1.1 Gathering of the necessary primary and secondary data/information

5.1.2 Determination of the present state of the watershed
> Geographical location
> Physical, biological and socio-economic conditions
> Vulnerability assessment
5.1.3 Identification of issues, problems, and opportunities in the various
ecosystems within the watershed
> Forest ecosystem
> Upland ecosystem
> Grassland ecosystem
> Lowland/Urban ecosystem
> Costal and marine ecosystem
Refer to the annotated outline of the Watershed Characterization Report in Annex

B.*
Section 6. Analysis of data and information gathered in the characterization

phase
The data gathered shall be analyzed based on integrated and participatory manage-
ment, development, and rehabilitation requirements of the watershed addressing the multi-
dimensional issues from the forest down to the coastal areas, as the case may be. As
such, the nature and extent of best watershed uses shall be based on the quantity and
quality of stream flow, rate of sedimentation, level of biodiversity, and economic activities
to be maintained by stakeholders under sustainable watershed management.
Any analysis tool could be used singly or in combination depending on the availability
of information, the peculiarity of the watershed, and the capacity of the watershed man-
agement planning team.
Some of the tools often used are as follows:
a. SWOT Analysis
SWOT Analysis is a strategic planning tool used to evaluate the strengths,

weaknesses, opportunities, and threats in a development initiative. It involves specifying
the objective of the project in identifying the internal and external factors that are favorable
and unfavorable to achieve that objective.
b. Problem Tree Analysis
Problems tree analysis or Situational analysis helps to find solutions by mapping

out the cause and effect around an issue.
c. Geographic Information System (GIS)
A Geographic Information System (GIS) is a decision support system involving

the integration of spatially-referenced data. The GIS output could be used as inputs for
watershed planning purposes such as identifying areas needing immediate intervention.
d. Land Use Determination Matrix
Land Use Determination Matrix is an analyses tool that uses data gathered during
the characterization phase. It shall be based on the development and rehabilitation
requirements of the watershed in relation to the problems on deforestation and soil erosion.
e. Other Analysis Tools
Other appropriate tools can provide additional analysis and determine several
options for development interventions in a watershed.
Section 7. Integrated Watershed Management Plan
Watershed management plan shall be holistic, integrated, and participatory. It

shall fully take into account the well-being of the affected communities, including indigenous
peoples.
Among the activities in the preparation of the Integrated Watershed Management

Plan shall be the following:
7.1 Creation of a multisectoral and multidisciplinary planning team
7.2 Preparation of Activity Plan.
7.3 Gathering and analysis of all identified primary and secondary data, including support-
ing maps.
7.4 Conduct of levelling-off workshops, meetings, and consultations.

7.5 Carrying out follow-thru surveys and validation
7.6 Preparation of Integrated Watershed Management Plan. (long, medium and short term)
Refer to the Annotated outline of the Integrated Watershed Management Plan in

Annex C.*
Section 8. Approval of the Plan
The Region shall approve the IWMP of watersheds within their jurisdiction. Should a
watershed transcend more than one Region, this shall require approval of Central Office.
IWMP approved by the Regions may be subject to review and affirmation by a Watershed
Multisectoral Technical Evaluation Committee (WMTEC) at the Central Office. The neces-
sary approval sheet shall form part of the Plan.
The plan may be legitimized for adoption through:
> Resolution
> MOAs/MOUs
> Any formal endorsement by watershed stakeholders concerned.
Section 9. Human Resources Development
The capacity building strategies for the IWMPT and various stakeholders such as
training, cross visits, and study tours shall be undertaken for the effective implementation
of this Circular.
Section 10. Implementation of the Plan
The approved IWMP shall be implemented by the DENR local office/agencies/stake-

holders concerned. Funding support shall be sourced from national appropriations, stake-
holders, and Overseas Development Assistance.
Section 11. Monitoring and Evaluation
Monitoring and evaluation of the development and management activities shall be

conducted by Central Office/Third Party on a periodic basis.
The reporting system will be undertaken taking into consideration the performance
analysis in the management of the watershed vis-a-vis the approved integrated manage-
ment interventions and activities, resources, time frame, and impacts.
Section 12. The Watershed Management Planning Team (WMPT)
12.1 Composition of WMPT
Watershed Management Planning Teams (WMPTs) shall be formed where a particular

watershed is located to serve as the working groups in the conduct of watershed charac-
terization and preparation of the integrated watershed management plan. The Team shall
be multidisciplinary and multi-sectoral. It shall be composed of representatives from the
Regional Office(s), PENRO(s), CENRO(s), sectors, LGUs, and watershed stakeholders
concerned.
When a particular watershed straddles two or more regions, the region which covers
the largest portion shall lead in the preparation of the plan.
In cases where the Protected Area Management Board (PAMB) or a Watershed

Management Council (WMC) already exists, the said PAMB or WMC shall be expanded
to serve as the WMPT responsible in the preparation of the Integrated Watershed Manage-
ment Plans.
To formalize and operationalize the creation of the WMPT, the stakeholders may forge
any collaborative arrangement (e.g. MOA) indicating respective roles and responsibilities.
12.2 Roles and Responsibilities
The WMPT shall be guided by the activities enumerated in Section 7 of herein

Circular.
12.3 Activity Plan of the WMPT
An activity plan indicating the sequence, schedule, timing and duration of activities,
data, information, and interventions required, including financial and logistical requirements,
for the preparation of the integrated watershed management plan shall be prepared by the
WMPT.
Refer to the Indicative Activity Plan Format in Annex A*
The provisions of any administrative order, memorandum, and other related

issuances, which are inconsistent with this Circular are hereby repealed, superseded or
amended accordingly.
If any clause, sentence or provision of this Circular shall be held invalid or

unconstitutional, the remaining parts shall not be affected thereby.

Secretary
-o0o-
Administrative Order No. 2008-23
Addendum to DENR Administrative Order No. 2008-14

Dated August 05, 2008, Re: Guidelines on the Conduct
of Bidding and Awarding of Cadastral Survey Contracts
Pursuant to R.A. 9184
In the interest of the service and pursuant to the provisions of Republic Act No.
9184, the Government Procurement Reform Act”, an additional statement under item
Section 6. Bidding Observers of DENR Administrative Order No. 2008-14 is hereby included,
to be read as follows:
“To enhance the transparency of the bidding process, the RBAC shall, in
all stages of the bidding process, invite, in addition to the representative of the
COA, at least two (2) observers to sit in its proceedings x x x x.” (italics provided)
This Order takes effect immediately.
Adopted: 04 November 2008

Secretary
-o0o-
Memorandum Order No. 2008-03
Special Recovery Permit for Stumps of Uprooted,

Typhoon Damaged Trees in the Province of La Union
In view of the effect of typhoons in the Province of La Union resulting in extensive

damage to properties and loss of livelihood as well as to hasten the rehabilitation of major
infrastructures, plantations, and eco-parks in the said area, a special wood recovery
permit is hereby authorized for stumps of uprooted and typhoon damaged trees subject
to the following guidelines:
1. The subject of this Order shall be stumps to be recovered from uprooted and typhoon
damaged trees in public properties under tenurial instruments by the DENR;
2. The applicant must submit, in addition to the usual requirements, the following docu-
ments:
a) certification from the concerned DENR Regional Office, that the applicant is
a bona fide resident of the area where the stumps are to be recovered;
b) a complete, comprehensive inventory report conducted with and validated

by the DENR-CENRO concerned as to the actual site and existence of the
wood stumps to be recovered which shall serve as basis for the volume to be
issued to the applicant;
c) a Deed of Donation with the Natural Resources Development Corporation,

the corporate arm of the DENR for the turn-over; orderly recovery, proper
management and disposition thru bidding of the wood stumps inventoried and
to be recovered;
3. The DENR CENRO concerned shall supervise the monitoring and issue the correspond-
ing transport documents subject to the NRDC’s documents pertaining to its disposition
such as Notice of Award and Deed of Sale;
4. The Special Wood Recovery authority and Transport Permit shall be valid for thirty (30)
working days upon the issuance of the transport documents of subject recovery stumps.
Any deviation or non-compliance with the above policy shall be considered as

violation of forestry laws and shall be dealt with accordingly.
Adopted: 07 November 2008

Secretary
-o0o-
DENR Memorandum Order No. 2008-04
Clarificatory Guidelines in the Implementation of

Department Administrative Order No. 2008-20 In
Re: Mineral Ore Export Permit
To provide for a full and thorough implementation of Department of Environment

and Natural Resources (DENR) Administrative Order (DAO) No. 2008-20 pertaining to the
“Issuance of Mineral Ore Export Permit (MOEP) for Transport/Shipment Outside the
Philippines of Mineral Ores, Including Tailings,“ the following clarificatory guidelines are
hereby issued for the guidance and compliance of all concerned:
SECTION 1. Mining Rights Holders Covered by the MOEP Requirement
The mining rights holders covered by the MOEP requirement as provided in Section
1 of DAO No. 2008-20 shall refer to the following:
a. Holders of mining contracts or mining permits issued either by the National Govern-
ment or the Local Government Unit concerned, including Small-Scale Mining Contracts,
Small-Scale Mining Permits and other types or forms of mining permits or authorities
issued for mining purposes; and
b. Accredited traders, dealers and/or retailers of mineral/s and/or mineral products, includ-
ing tailings.
SECTION 2. Mineral Commodities Requiring MOEP
The MOEP requirement shall be complied with by mining rights holders as defined
above, in connection with the transport or shipment to destinations outside the Philippines
of the following mineral commodities:
a. Unprocessed, raw or run-of-mine mineral/s or ore/s;

b. Crushed and/or sized sand and gravel and or other unconsolidated materials;
c. Iron, Manganese and/or chromium ore/s, whether unprocessed or processed; and
d. Mine wastes and/or mill tailings.
The “processed” materials that are not covered by the MOEP requirement (except
for those in Item c above) refer to those minerals or ores that have undergone milling,
beneficiation, upgrading, leaching, cyanidation, and calcination, and/or related process/
es, to become concentrates, bullions or downstream products.
SECTION 3. Filing and Validation of an MOEP Application
The application for an MOEP shall be filed directly in the Office of the DENR
Secretary within 60 calendar days before the actual date of transport or shipment of the
mineral/s or ore/s. The applicant may file the said application in the Mines and
Geosciences Bureau (MGB) Regional Office concerned: Provided, that the said Regional
Office shall immediately forward the same application to the Office of the DENR Secretary.
The required inter-agency validation of the mineral/s or ore/s to be transported or

shipped, within the 60-day period, shall be undertaken by the DENR/MGB or the DENR/
MGB/Department of Finance/Bureau of Internal Revenue (BIR).
SECTION 4. Payment of Excise Tax
In consideration of the BIR’s excise tax payment calendar, the bond posted in
the said Office to guarantee payment of the excise tax due shall be considered sufficient
compliance for the issuance of the MOEP in relation to the payment of excise tax. However,
the proof of payment of the excise tax shall be submitted within 30 days after the end of
the calendar quarter when the mineral/s or ore/s were removed from the mine/s or extraction
site/s.
In the case of small-scale mines, however, the proof of payment of excise tax
shall be a prior requirement in the issuance of an MOEP.
SECTION 5. Issuance of an MOEP

Within 10 days from the compliance with all the pertinent requirements the MOEP
shall be issued by the DENR Secretary or his duly authorized representative.
SECTION 6. Volume or Tonnage of Mineral/s or Ore/s for Shipment under an MOEP
While the volume or tonnage of mineral/s or ore/s to be allowed for shipment under an
MOEP shall not exceed the estimated quantity of such material/s stockpiled as deter-
mined during the validation process, the said MOEP may be issued authorizing the ship-
ment of the same material/s in a quantity equivalent to a one-year requirement of the
applicant. For this purpose, the MGB Regional Office concerned shall ensure that every
shipment is verified in the field and every pertinent verification is submitted immediately to
the Office of the DENR Secretary.
SECTION 7. Repealing Clause
Any memorandum orders and circulars inconsistent herewith are hereby modified/
repealed accordingly.
SECTION 8. Effectivity
This Memorandum Order shall take effect 15 days after its publication in a news-
paper of general circulation and receipt of a copy hereof by the Office of the National
Administrative Register.
(SGD.) JOSE L. ATIENZA, JR.

Secretary
-o0o-
DENR Administrative Order No. 2008-24
Guidelines for the Assessment and Delineation of Boundaries

Between Forestlands, National Parks and Agricultural Lands
Pursuant to the provisions of Section 4, Article XII of the 1987 Philippine Constitution,
Executive Order No. 192, Republic Act No. 3092, Republic Act No. 7586 and Presidential
Decree No. 705, as amended, Executive Order No. 318, DENR Administrative Order No.
2000-24 and other pertinent laws, rules and regulations, the following guidelines and
procedures are hereby prescribed for the guidance and compliance of all concerned.
ARTICLE 1
GENERAL PROVISION
Section 1. Basic Policy. It is the policy of the State to ensure protection and sus-
tainable development of forestlands, national parks and the resources therein, as well as
to accelerate the disposition and adjudication of agricultural lands. Consistent with this
policy, the government shall undertake the assessment and delineation of boundaries
between forestlands, national parks and agricultural lands.
Section 2. Objective. This Order seeks to provide the guidelines for the assess-
ment, and delineation of boundaries between forestlands, national parks and agricultural
lands.
Section 3. Coverage. This Order shall cover the technical and administrative
mechanisms for the assessment, validation and delineation of boundaries between
forestlands, national parks under the National Integrated Protected Areas System (NIPAS),
and agricultural lands.
Section 4. Definition of Terms. The following terms as used in these guidelines

shall be defined as follows:
a) Agricultural lands – refer to alienable and disposable lands 1 of the public domain which
have been the subject of the land classification system and declared as not needed for
forest purposes.
b) Boundary maps – are cartographic representation of the land surface showing among
others, lines depicting the borders between different classification of such land, the geo-
graphic and/or grid references, and the technical description of such lines and related
references.
c) Delimitation survey – refers to the establishment of land classification boundaries, and

the monumenting thereof through ground survey.
d) Delineation – the conduct of site investigation, field reconnaissance and assessment,

and staking of boundaries between forestlands, national parks and agricultural lands, veri-
fied in the field in accordance with the criteria set forth under this Order.
e) Forestlands 2 – includes the public forest 3, the permanent forest or forest reserves 4
and forests reservations 5 .
f) Indicative map – a map indicating the land classification (LC) lines surveyed during the
previous land classification work 6 as shown in existing official Land Classification Maps,
and proposed amended boundaries, if there be any.
g) Geographic Information System (GIS) – an integrated system of hardware, software,

personnel and procedures for the capture, storage, analysis, manipulation and display of
geographically-referenced spatial data.
1
As defined in Sec. 3 (c) Presidential Decree (PD) 705)
2
PD 705, Sec. 3 (d)
3
PD 705, Sec. 3 (a)
4
PD 705, Sec. 3(b)
5
PD 705, Sec. 3 (g)
6
PD 705 Sec. 13
h) Land Classification Map – a map showing the classification of lands of the public do-
main based on the land classification system undertaken by the then Department of Ag-
riculture and Natural Resources, through the Bureau of Forestry, the Ministry of Natural
Resources, through the Bureau of Forest Development, and the Department of Environ-
ment and Natural Resources.7
i) Map conversion – the process of transforming spatial information indicated on maps to

digital format in order to organize these information into GIS-compatible datasets.
j) Protected area (PA) - refers to identified portions of land and/or water set aside by reason
of their unique physical and biological significance, managed to enhance biological diver-
sity and protected against destructive human exploitation.
k) Progress Map – map showing the current and cumulative extent of areas assessed and
surveyed pursuant to this Order.
l) Public Forest – the mass of lands of the public domain which has not been the subject
of the present system of classification for the determination of which lands are needed for
forest purposes and which are not 8.
m) Watershed – is land area drained by a stream or fixed body of water and its tributaries
having a common outlet for surface run-off 9
ARTICLE II
ADMINISTRATIVE PROVISIONS
Section 5. Organizational Structure. To provide guidance and to ensure the

effective and efficient implementation in the assessment and delineation of boundaries of
forestland, national parks and agricultural lands, the following committees and working
groups shall be organized, the functional structure shown in ANNEX A* hereof.
a) National Assessment and Delineation Committee (NADC)

Chairperson : Undersecretary for Field Operations
Vice Chairperson : Undersecretary for Policy and Planning
Members : All Undersecretaries
Administrator, NAMRIA
All Bureau Directors
The NADC shall set the policy directions in the implementation of the assess-
ment and boundary delineation activities. It shall conduct regular meetings to assess
progress of work and endorse survey results and propose bills to the Secretary for submis-
sion to Congress for the enactment of laws pertaining to the final boundaries. In addition,
the NADC shall perform the following functions:
7
PD 705, Sec. 13
8
PD 705, Sec. 3 (a)
9
PD 705, Sec. 3 (m)
1) Evaluate and endorse to the Secretary all draft bills and the corresponding
Forestlands, National Parks and Agricultural Lands Boundary Maps (FNPABM)
and the technical descriptions for endorsement to Congress;
2) Recommend policies and procedural guidelines to accelerate and effectively

carry out the delineation and assessment of boundaries;
3) Ensure that outputs and results of the delineation and assessment work are
integrated in the over-all ENR planning process.
4) Perform other functions that may be assigned by the Secretary.
b) NADC Technical Working Group (NADC TWG)
Chairperson : Director, Forest Management Bureau

Vice-Chairperson : Director, RSRDAD, NAMRIA
Members : Bureaus’ representatives (at least division chief
level), representatives of the Legal Service, Planning
and Policy and Legislative Affairs Office
Secretariat : FMB and NAMRIA technical staff
The NADC TWG shall have the following functions and responsibilities:
1) Prescribe technical standards to field teams in the preparation of indicative

maps, prepare LC index maps and national map inventory sheets;
2) Review maps and other documents, including draft legislative bills submitted
by the RADCs for endorsement to the NADC;
3) Assist in planning and target-setting based on existing resources and priorities;
4) Organize and provide technical support in the conduct of appropriate training

programs, preparation of training materials, data analysis, monitoring of program
implementation, and formulation of policies and procedures on delineation and
assessment;
5) Assure conformance to quality standards of the delineation and assessment

work, the conduct of periodic performance monitoring, including field validation
as deemed necessary;
6) Formulate recommendations to resolve operational problems pertaining to

special field conditions on the request of the RADCs;
7) Manage records, survey returns, maps, draft bills and other pertinent
documents, and disseminate said documents as appropriate;
8) Submit periodic progress reports to the NADC and the DENR Secretary;
9) Undertake other related activities and functions that may be assigned.

c) Regional Assessment and Delineation Committees (RADC)
Chairperson : Regional Executive Director

Members : Regional Technical Directors and Regional
Directors, Chief of Legal, Chief of Planning,
PENROs and CENROs concerned, RADT
coordinators, and in the case of Palawan,
representative of the Palawan Council for
Sustainable Development (PCSD)
Secretariat : Land Evaluation Party (LEP) team leaders,
Regional FIS and GIS staff, Forest Resources
Development Division and Forest Resources
Conservation Division Chiefs
The RADC shall review, assess, recommend and promulgate the operational policies
at their respective regions, formulate an operations plan and supervise the
implementation of the assessment and delineation activities in the region. The
RADC shall mobilize appropriate staff and existing resources from DENR units in
the region to develop a Regional Land Classification Information System (LCIS) to
manage the data and information generated by the RADTs.
The RADC may organize a Regional Technical Working Group, to be staffed by

appropriate staff from the different units of DENR in the regional office, to assist it in
overseeing and administering the work in the whole region.
The RADC shall be responsible for the drafting of proposed bills declaring the final
boundaries.
d) Regional Assessment and Delineation Teams (RADT)
The RADC shall organize such number of Regional Assessment and Delineation Teams
as it deems necessary. It shall likewise designate the Regional LEP coordinator as the
RADT Coordinator.
Each RADT shall be composed of at least the following:
- Forester (Team Leader)

- Crew Members (2 Foresters or technical personnel of appropriate training
and qualification) and Survey Aides (at most 5)
The Team shall be supported by the GIS Unit and the FIS team of the Regional
Offices.
The RADTs shall have the following functions:
1) Gather the necessary data, inventory, compile and integrate available

reference maps, textual and tabular information needed for the assessment
and delineation of boundaries of forestlands, national parks and agricultural
lands;
2) Generate indicative maps, progress maps, boundary maps, control maps;
3) Conduct field assessment, surveys and related work in furtherance of the

delineation and assessment work;
4) Coordinate with identified groups that have interests at stake in the delineation
and assessment work in any area;
5) Prepare the requisite documentation and reports as required by the
delineation and assessment process; and
6) Undertake related activities that may be assigned by RADC.
The RADC is authorized to instruct the following DENR units or staff to support the
work of the RADTs as may be necessary:
- Geodetic Engineer(s) from any unit of the Department within the region
- Representative of the CENRO within whose area of responsibility the
delineation and assessment work are currently being undertaken
- Representative(s) from the Regional Public Affairs Office
- Representative(s) from the Regional Forest Resource Assessment (FRA)
Team
- Cartographers(s) from any unit of the Department within the region
- Applications software developers and data encoders from any unit of the
Department within the region
The RADC may call on representatives of the following as and when

necessary:
- Representative(s) from the provincial and municipal governments within whose

administrative jurisdiction the delineation and assessment work are currently
being undertaken
- Representative(s) from the Regional Office of the National Commission on
Indigenous Peoples
- Representatives of other appropriate organizations or individuals who may
serve as resource person(s)
ARTICLE III
DATA GENERATION AND MANAGEMENT
Section 6. Data Gathering and Compilation. All available reference maps and
other relevant information shall be gathered, compiled and integrated, within 120 calendar
days upon issuance of this Order by the Regional Assessment and Delineation Committee
(RADC), and the National Assessment and Delineation Committee Technical Working
Group (NADC TWG), as herein created. These data shall include all available tabular/
textual data and relevant maps on forest cover, slope, photographic/image maps, soil,
ancestral domains/lands, topographic maps, National Parks/NIPAS Maps, land use,
geohazard, settlements, infrastructure, proposed agricultural areas (A & D) within
unclassified public lands, projection maps per DAO 2000-45, cadastral/administrative
maps (including provincial and municipal index maps), isolated survey plans, titled
properties, patented/subsisting public land applications, land classification (LC) maps
archived at the mentioned offices, maps of Certificate of Land Ownership Award (CLOA)/
titles issued by DAR and other maps showing the significant natural and man-made
features. Survey returns, result of natural resource inventories, sub-classification and
inventory of agricultural lands (Per DAO 1990-55) and inventory and re-examination of
reservations (per DAO 1990-47), and existing Land Data Record Sheets (LDRS as
prescribed under LOC No. 131) shall likewise be collected and compiled accordingly.
The collection and compilation of other textual data or maps not mentioned above but
are available at the office of national government agencies shall be the responsibility of
the NADC TWG.
For proper identification and accounting purposes, LC inventory sheets shall be prepared
by NAMRIA, in collaboration with the Regional Assessment and Delineation Team (RADT)
following the tabular format in Annex B*. The table shall indicate the location, area,
status of LC survey (completed/ongoing), dates of approvals or endorsements for approval
and other relevant technical reports and details. The outputs of such inventory shall be
forwarded to the NADC TWG for proper documentation and recording purposes.
The results of latest satellite imagery analysis by NAMRIA shall be made available to
RADTs. The NADC TWG shall initiate the development of an algorithm for land use suit-
ability to serve as guide for decisions in recommending the final land uses of areas sub-
jected to the delineation and assessment work. The 1:50,000-scale topographic maps
shall be used as the standard base map. The database framework recommended in the
LAMP Forestland Boundary Delineation Policy Study shall be evaluated and used as an
initial framework to develop the national forestland database.
Section 7. Missing, Worn-out or Damaged LC Maps and Other Relevant Data.

The NADC TWG shall exert its best effort to locate missing LC maps or reconstruct the
same using available data. Information about LC maps that are either lost or cannot be
reconstructed shall be published in two newspapers of general circulation for two
consecutive weeks. If no information about the said LC maps is received within 30 calendar
days upon publication, the same shall be officially declared null and void. The affected LC
Blocks shall then be resurveyed by the RADT in accordance with existing guidelines. The
output shall be submitted to NAMRIA for evaluation and thereafter, to NADC, for approval.
Damaged or worn out LC maps shall be reconstructed and/or retraced and certified
by NAMRIA using available data and following accepted cartographic standards.
All tabular/textual data and maps mentioned in Section 7 hereof shall be properly
forwarded by the RADC to the NADC TWG for proper evaluation.
Section 8. Indexing and Integration. The NADC TWG shall generate index maps
(national, regional and provincial) showing the coverage of all LC maps and relevant details
indicated therein. All LC maps, tabular or textual data and other related spatial information
that were previously indexed and complied by the DENR field offices under DAO 2000-24
shall be forwarded to the NADC TWG, through the RADC, for proper integration. The
integration of maps shall be made consistent with the Philippine Reference System of
1992(PRS92). The necessary geo-referencing of the different data sets shall be undertaken
for consistency using the standard topographic base maps. GIS techniques shall be
used in the integration and analysis of different tabular or textural and other related spatial
information.
* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman,
Quezon City
ARTICLE IV
INDICATIVE MAP
Section 9. Indicative Map. Based on the results of the GIS integration of the different
maps, textual data and other data that can be used in analysis, the Indicative Map shall be
generated by the RADC and submitted to the NADC TWG for verification and evaluation.
This indicative map shall indicate the preliminary boundary lines of the area based on the
technical description of the LC map and proposed forestland boundaries. No point(s) shall
be omitted or LC lines be simplified during the process. The Indicative Map and the derived
coordinates of corner and control points shall serve as the guide of the RADT during the
conduct of field assessment.
The Indicative Map shall be generated following the process flow illustrated in Annex
C* and accepted mapping procedures and standards. Following are the steps in the
generation of the Indicative Map:
a) LC Base Map Preparation (Replotting) – The replotting of land classification lines

and corners shall be carried out using the manual or digital process, see Annexes D*
(manual) and D-1 (digital).
b) Extraction of Topographic Feature – This shall include: (a) digitizing rivers and roads
following standard guidelines as set under DAO No. 2006-12 (Guidelines on the Develop-
ment and Management of a Standard Seamless National Digital Topographic Database);
and (b) generation of the slope map (see Annex E*).
c) Photographic or Satellite Image Processing – Aerial photographs and satellite data

shall be used to derive land cover information. If these are not available, existing land use
and land cover maps may be utilized. This step shall be complemented by field validation
surveys or ground-truthing by field offices (See Annexes F* and F-1*)
d) Integration of ENR and Other Datasets – Other relevant datasets such as maps and
textual information which depict regulatory, settlement areas and other details of mineral,
hydrologic, socio-cultural, biodiversity conservations tourism and recreational, productive
and protective values of a particular LC block or Project area shall be analyzed prior to
integration into the Indicative Map.
ARTICLE V
FORESTLAND ASSESSMENT AND DELINEATION
Section 10. Preliminary Forestland Assessment – Using secondary data, an assess-

ment shall be undertaken to determine the preliminary boundaries of the forestland, as
overlaid in the Indicative Map. The assessment shall be guided by the following param-
eters:
a) Sections 15 and 16 of PD No. 705, as amended (ANNEX G*);

b) Geohazards areas;
c) Socio-cultural and heritage areas; and

d) Built-up areas.
For the assessment of the whole forestland, secondary data must be secured. Pre-
liminary boundaries of areas proposed for release as alienable and disposable or reversion
to forestland shall also be determined.
Section 11. Field Assessment – The RADT shall conduct field assessment along the
existing LC lines, at least 500 meters on both sides of the line.
The assessment shall be undertaken by the RADT to locate the points of the prelimi-
nary boundaries as determined in the Indicative Map, place stakes and corner markers
(PVC orange-colored pipe with cement, 5 centimeters diameter by 1 meter in height, with
specifications shown in Annex H*), sketch the subject area, and locate witness corners
such as important natural and man-made features. The positions of corner markers shall
be observed and recorded using precalibrated hand-held Global Positioning System (GPS)
receivers. Areas where field assessment cannot be undertaken, for valid reasons, shall be
properly noted, located (with map coordinates), described and sketched by the RADT in
the Indicative Map and the corresponding field notes.
The boundaries of protected areas under declared under NIPAS shall be indicated in
all maps used and generated under this Order.
For areas delineated under DAO No. 2000-24, these shall be subjected to assess-
ment along the boundary lines and marked on the ground pursuant to this Order.
Section 12. Preparation and Submission of Reports. The RADTs shall prepare and
submit a Consolidated Monthly Field Assessment Report to the RADC using the pre-
scribed form in Annex I*. A consolidated quarterly accomplishment report shall be sub-
mitted by RADC to NADC-TWG. It shall include a Progress Map which bears the original
and validated LC lines (layout to be prescribed by NAMRIA).
Reporting shall be done in the following manner:
1) Using the same form, the RADC shall consolidate the regional reports and
submit to the NADC through the NADC TWG.
2) Corresponding maps, sketches, photos, survey returns and other important
reference documents shall accompany the report.
3) Submission of report shall be done as follows:
a) RADT report to the RADC, every end of the month;
b) RADC report to the NADC through the NADC TWG, every 15th day of the
month; and
c) The NADC TWG shall make an assessment of the report and present it to
the NADC during its regular meetings.
Section 13. Synchronization of Activities. All ROs, PENROs, and CENROs and
other units of the Department and attached agencies are enjoined to synchronize all
cross-sectoral activities related to the program.
Section 14. Information, Education and Communication (IEC) Campaign. The NADC
TWG, in coordination with the Public Affairs Office and other concerned DENR units, shall
develop and implement an IEC Program, to include training modules, brochures, primers,
briefing kits and other information materials on Forest Boundary Assessment and Delinea-
tion. The RADC shall conduct a massive campaign through the Regional Public Affairs
Offices (RPAO) giving emphasis on the objectives, importance, outcomes, and benefits
that will be derived from the activity. The campaign shall reach out to the grassroots level
and shall be closely coordinated with other government agencies and instrumentalities.
The RADT as well as other DENR Field Units concerned shall seek assistance from the
local officials in the pursuit of a successful IEC campaign.
Section 15. Coordination with Stakeholders. Coordination with stakeholders shall be

undertaken prior to the conduct of the activities and after completion of the activities. The
person-in-charge of the coordination are the PENR/CENR Officer and RADT representa-
tives.
The RADT in coordination with the PENRO/CENRO shall inform and discuss with the
concerned LGU the purpose, objectives, procedures and schedules of the assessment
and delineation activities, including the roles of LGUs and other stakeholders.
All activities shall be closely coordinated with other agencies concerned such as but
not limited to the National Commission on Indigenous Peoples (NCIP), Department of
Agriculture (DA), Department of Agrarian Reform (DAR) Local Government Units (LGUs),
and Department of Interior and Local Government (DILG).
Section 16. Preparation of the Draft Bill. Based on the result of the assessment the
RADC shall prepare the draft bill, together with the Forestland, National Parks, Agricultural
Land Boundary Map (FNPABM) and submit the same to the NADC through the NADC
TWG, for review and evaluation and for endorsement to the Secretary. The Secretary shall
endorse the draft bill to the Representative/s concerned of the province for his/her sponsor-
ship in Congress.
Section 17. Demarcation and Delimitation Survey. After the legislation for the assess-
ment of boundaries of each province shall have been passed by Congress, DENR and the
local government units shall establish the permanent boundary monuments on the ground
and delimit the boundary of the forestlands, national parks, and agricultural lands, in ac-
cordance with existing survey standards and practices.
ARTICLE VI
INSTITUTIONAL MECHANISM
Section 18. Capability-Building. The DENR shall pursue a Department-wide Orientation/

Re-orientation and capability-building for the effective implementation of this Order. These
activities shall involve the RADT members, RADT coordinators, REDS, RTDs, PENRO,
CENRO, Regional Planning Officers, among others.
ARTICLE VII
MISCELLANEOUS PROVISIONS
Section 19. Appropriations. Funding requirements for the conduct of the forestland
assessment and delineation activities: capability-building; IEC; consultations; technical
assistance to public hearings; operations of the NADC, NADC TWG, RADC & RADT shall
be included in the regular budgetary allocation of the Department, particularly on forest
boundary delineation budget. Additional funds may be sourced from other funding institu-
tions.
Section 20. Unclassified Lands of the Public Domain. This Order shall also cover the
survey of unclassified public lands with the assistance of NAMRIA. The results of original
land classification surveys shall, however, be submitted to NADC TWG for evaluation and
subsequent endorsement to the Secretary for approval.
Section 21. Certification of status of Lands of the Public Domain Within a Province.
Upon the passage of the law defining the final boundary of the forestland within a province,
the same shall be the basis for the issuance of certifications of legal status of the land. It
shall form part of the control maps and reports for all public land applications filed before
the Department.
Pending the enactment of the appropriate law, the DENR can still issue certifications
of legal status using existing land classification maps.
Section 22. Field Manual. The Field Manual shall be prepared and issued by the NADC
TWG 60 days after approval of this Order. The NADC TWG Chair is hereby authorized to
issue amendments and modifications of the Field Manual.
Section 23. Repealing Clause. This Order amends and/or supersedes all existing
DENR guidelines, instructions, rules or regulations contrary hereto.
Section 24. Effectivity. This Order shall take effect upon acknowledgement of the
Office of the National Administrative Register (ONAR), and fifteen (15) days after its publi-
cation in a newspaper of general circulation.
Adopted: 08 Dec. 2008
(SGD.) JOSE L. ATIENZA, JR.

Secretary
DEPARTMENT OF HEALTH
Dated Filed: 09 October 2008
One-Stop Shop System for the Regulation of Medical

Facilities for Overseas Workers and Seafarers, Non-
Hospital-Based Dialysis Clinics and Non-Hospital-Based
Ambulatory Surgical Clinics with Ancillary Services
I. Background / Rationale
The harmonization and streamlining of systems and processes for health regulation
has been identified as one of the supply side strategies in the Department of Health’s
current reform initiative which is the FOURmula One for Health. Its objective is to make
health regulation more rational and client-responsive.
Initial efforts on harmonization and streamlining of regulatory systems and processes

involved the establishment of a One-Stop Shop licensure system for hospitals, which featured
the issuance of a single license to the hospital that included its ancillary services, a unified
inspection process, automatic renewal of license and intensified monitoring and surveillance
activities.
It is envisioned that the One-Stop Shop system shall eventually cover other regulated
health facilities that provide ancillary services, such as dialysis clinics, ambulatory surgical
clinics and medical facilities for overseas workers and seafarers. This system is expected
to improve services being provided by the regulatory offices in the DOH as well as reduce
transaction costs on the part of license applicants.
II. Objective
This Order establishes and sets the guidelines for the One-Stop Shop system for the
regulation of medical facilities for overseas workers and seafarers, non-hospital-based
dialysis clinics and non-hospital-based ambulatory surgical clinics that provide ancillary
services.
III. Scope and Coverage
This Order shall apply to the DOH regulatory offices, namely the Bureau of Food and
Drugs, Bureau of Health Devices and Technology, Bureau of Health Facilities and Ser-
vices, and Centers for Health Development, which are involved in the enforcement of regu-
latory standards for health facilities.
IV. Definition of Terms
For purposes of this Order, the following terms shall be defined as follows:
1. Ancillary Facilities/Services – include but not limited to the following: clinical labora-
tory, HIV testing, drinking water analysis, pharmacy, and medical and dental x-ray facili-
ties; exclude facilities using radioactive material that are currently regulated by the PNRI.
2. Applicant – refers to a health facility that is applying for either a License to Operate or
a Certificate of Accreditation.
3. Automatic Renewal of License or Accreditation – refers to the immediate process-

ing and issuance of the License to Operate or Certificate of Accreditation without inspec-
tion of the health facility, upon the submission of required documents.
4. BFAD – refers to the Bureau of Food and Drugs

5. BHDT – refers to the Bureau of Health Devices and Technology
6. BHFS – refers to the Bureau of Health Facilities and Services
7. Certificate of Compliance – an internal document to be issued by the respective

regulatory offices to attest compliance of the licensee to the bureaus’ specific rules and
regulations.
8. CHD – refers to the Center for Health Development
9. CO – refers to the Department of Health Central Office
10. COA – refers to the Certificate of Accreditation issued to a medical facility for overseas
workers and seafarers
11. DOH – refers to the Department of Health
12. Health Facility – refers to a medical facility for overseas workers and seafarers (both
hospital-based and non-hospital-based), or a non-hospital-based dialysis clinic or non-
hospital-based ambulatory surgical clinic that provides ancillary services
13. HFERC – refers to the Health Facility Establishment Review Committee
14. LGU – refers to the Local Government Units such as municipalities, cities and prov-
inces.
15. LTO – refers to License to Operate issued to a dialysis clinic or an ambulatory surgical
clinic
16. One-Stop Shop System - a system of the DOH to harmonize the regulation of
medical facilities for overseas workers and seafarers, non-hospital-dialysis clinics, non-
hospital-based ambulatory surgical clinics, and their ancillary facilities/services
17. PNRI – refers to the Philippine Nuclear Research Institute
18. PTC – refers to the Permit to Construct, issued to a health facility upon submission of
complete documentary requirements and compliance with regulatory standards for physi-
cal plant as demonstrated in the evaluation of floor plans.
V. Policies and Guidelines
1. General Guidelines
a. The CO shall set up and operate a One-Stop Shop Unit for the licensure or
accreditation of health facilities covered under this Order.
b. There shall be one LTO or COA to cover the operation of the health facility as
well as its ancillary facilities/services.
c. Ancillary facilities/ services that are located within the premises of the health
facility shall be included in the LTO or COA.
d. The health facility and its ancillary facilities/ services shall comply with existing
standards and requirements for licensure or accreditation.
e. The LTO or COA of a health facility shall be automatically renewed except

for medical facilities for overseas workers and seafarers.
f. For health facilities that are non-compliant with licensing or accreditation

standards and requirements and those found violating existing rules and
regulations, automatic renewal of LTO or COA shall not apply. The LTO or COA
shall be renewed only when the health facility has already complied with the
licensing or accreditation standards and requirements and any sanctions that
have been imposed for violations.
g. The Director of the BHFS shall issue the LTO or COA of the health facility.
h. Sanctions for violations involving ancillary facilities/ services, regardless of

ownership, shall be borne by the health facility.
2. Specific Guidelines
a. Issuance of a Single License to Operate or Certificate of Accreditation
i. A single LTO or COA, whichever applies, shall be issued to cover the operation
of the health facility and its ancillary facilities/ services, which include but are
not limited to the clinical laboratory, HIV testing, drinking water analysis,
pharmacy, and medical and dental x-ray facilities; and exclude facilities using
radioactive material that are currently regulated by the PNRI.
a. For non-hospital-based dialysis clinic and non-hospital-based ambulatory

surgical clinic, ancillary facilities/ services within its premises shall not be issued
a separate LTO. The ancillary facilities/ services shall be included in the LTO of
the whole health facility.
b. For non-hospital-based medical facility for overseas workers and seafarers,

all ancillary facilities/ services within its premises shall not be issued a separate
COA. The ancillary facilities/ services shall be included in the COA of the
whole health facility.
c. For hospital-based medical facility for overseas workers and seafarers, if

the ancillary facilities/ services are already part of the hospital license, this
shall be indicated in the COA.
ii. The category of the health facility, and its clinical and ancillary facilities/
services shall be indicated on the LTO or COA.
iii. Any changes in the service capability of the health facility, including those
involving ancillary facilities/ services, shall be reflected on the LTO or COA
iv. For non-hospital based dialysis clinics and non-hospital-based ambulatory

surgical clinics that have ancillary facilities/ services that are not fully owned by
the health facility, a Memorandum of Agreement between the owner of the
health facility and the owner of the ancillary facility/ service shall be required.
The ancillary facility/ service provider may append its own name to the name of
the health facility.
v. For medical facilities for overseas workers and seafarers, all ancillary facilities/
services must be owned by the Health facility.
b. Organizational Arrangement
i. The BHFS shall designate personnel who will act as the One-Stop Shop
Secretariat. The One-Stop Shop Unit that will house the Secretariat shall be
located at Bldg 15, San Lazaro Compound, Sta. Cruz, Manila. The Director IV
of the BHFS or his/her duly authorized representative shall oversee the day-to-
day operation of the Secretariat.
ii. The One-Stop Shop Secretariat shall evaluate the completeness of the
application, answer queries of applicants, and perform other related functions.
c. Permit to Construct
i. The PTC is a prerequisite for the issuance of the LTO or COA.

ii. The One-Stop Shop Secretariat shall receive and evaluate completeness of
documentary requirements for the application for PTC.
iii. The HFERC shall act on applications within five (5) working days upon receipt
of the following documentary requirements: (a) Application for PTC; (b) Three
(3) sets of Site Development Plans and Floor Plans signed and sealed by an
Architect and/or Engineer; (c) Proof of Ownership such as DTI/SEC Registration;
and (d) proof of payment of PTC fee.
d. Initial License or Accreditation
i. The One-Stop Shop Secretariat shall receive and evaluate completeness of

documentary requirements for the application for an LTO or COA, whichever
applies.
ii. For applications for initial LTO or COA, the whole licensing/ accreditation
process, commencing from the date of official receipt of a complete application
until the issuance or denial of the LTO or COA, shall be completed within thirty
(30) calendar days. Otherwise, the initial LTO or COA shall be issued in favor
of the applicant. The initial inspection of the health facility to assess compliance
with regulatory standards and requirements shall be conducted within this 30-
calendar-day-period.
iii. A complete application means that the required documents as listed in the
Application Form for Initial License to Operate or Certificate of Accreditation
have been submitted.
iv. The One-Stop Shop Secretariat shall distribute to BHFS, BHDT and BFAD
the required documents for review and evaluation.
v. The One-Stop Shop Secretariat, in close coordination with the BHFS, BHDT
and BFAD, shall organize the inspection team. Two (2) weeks lead-time shall
be given to BHFS, BHDT, and BFAD to make available representative(s) to the
team. Further, each bureau shall create a pool of inspectors whose priority is
inspection of health facilities covered under the One-Stop Shop system.
vi. The BHFS, BHDT and BFAD shall each issue the Certificate of Compliance
respectively within ten (10) working days after the return of the inspection team
if the health facility has complied with the standards and technical requirements.
It shall be forwarded to the One-Stop Shop Secretariat. In the event of non-
compliance of the applicants the concerned bureau(s) shall notify the applicant
of deficiencies.
vii. The Certificate of Compliance shall indicate the authorized services of the
health facility.
viii. The One-Stop Shop Secretariat shall process the LTO or COA for signature
of the BHFS Director.
ix. The One-Stop Secretariat shall endorse to the BHFS-Records Unit the LTO
or COA and other pertinent documents for release.
e. Validity of the License to Operate
i. The LTO or COA shall be valid for three years from January 1 of the first year
of the validity period to December 31 of the third year of the validity period.
f. Renewal of License or Accreditation
i. The DOH CO shall automatically renew the LTO or COA of the health facility,
except medical facilities for overseas workers and seafarers.
ii. The renewal period for health facilities covered by this Order shall be from
October 1 to November 30 of the third and last year of validity of existing LTO or
COA.
a) During the first year of implementation of the One-Stop Shop System, the
validity of LTO or COA for the health facility and its ancillary facilities/ services
shall be synchronized.
b) The LTO or COA of all existing health facilities shall be renewed by January
1, 2009. All existing health facilities shall apply for a renewal of LTO or COA for
the 2009-2011 period beginning on October 1, 2008 to December 31, 2008.
c) All health facilities with an LTO or COA that is due to expire in 2008 shall
have the validity of the LTO or COA automatically extended to December 31,
2008, without paying any additional fee for the extension.
d) All health facilities with an LTO or COA that is due to expire between
2009 to 2011 shall be granted pro-rated discounts on the renewal fee, as follows:
1) 2009 expiration – discount equivalent to 1/3 of renewal fee.

2) 2010 expiration – discount equivalent to 2/3 of renewal fee.
3) 2011 expiration – discount equivalent to the full amount of the renewal fee.
Since the renewal fee shall be a composite fee, these discounts shall also be
applied to the fees corresponding to the ancillary facilities/services of the health
facility.
e) An additional 10% discount on the renewal fee shall be granted if the

application is filed between October to November 2008.
f) The BHFS shall send, before October 1, 2008, an Application Form for
Renewal of LTO or COA to all existing health facilities covered by this Order.
iii. Automatic renewal of LTO or COA shall be done immediately or not later
than five (5) working days after the following documents are received by the
One-Stop Shop Secretariat: (a) Notarized Application Form for Renewal of LTO
or COA; (B) Sworn Statement that the health facility is compliant with the
standards and technical requirements set forth by the DOH; and (c) proof of
payment of corresponding fee.
iv. For the second and third year of LTO or COA validity, the following
documents shall be submitted by health facilities with a clinical laboratory,
without paying additional fees, beginning on the first day of October until the
last day of November of the current year: (a) Notarized Application Form for
Renewal of LTO of clinical laboratory; and (b) Sworn Statement that the clinical
laboratory is compliant with the standards and technical requirements set forth
by the DOH. Otherwise, clinical laboratory services shall be removed from the
LTO or COA of the health facility.
v. When there are changes in the circumstances of the LTO or COA that
warrant a new LTO or COA application based on existing rules and regulations,
the health facility shall be subject to the usual process for the issuance of
initial LTO or COA, including inspection prior to the issuance of LTO or COA.
vi. Sanctions for filing of application for renewal of LTO/ COA after the expiration
date shall be in accordance with existing rules and regulations.
g. Fees
i. The LTO or COA fee shall be a composite fee, consisting of all the fees that
correspond to each clinical and ancillary service being provided by the health
facility.
ii. All fees shall follow the schedule of fees currently prescribed by the DOH.
iii. The applicant, upon filing an application, shall pay the corresponding fee to
the DOH Cashier in-charge of the One-Stop Shop System in person or through
postal money order.
h. Monitoring
i. The health facility shall comply with regulatory standards and requirements
at all times.
ii. To ensure compliance to regulatory requirements and to compensate for the
automatic renewal of LTO or COA, the BHFS, BHDT, BFAD and CHDs shall
intensify monitoring activities through unannounced monitoring visits.
iii. Monitoring of health facility shall be done at least once a year.
iv. The BHDT and BFAD and CHDs shall furnish the BHFS a copy of monitoring
reports and recommendations.
v. Violations found during monitoring shall be appropriately acted upon by the
concerned office.
i. Database Management
i. The BHFS shall maintain a database of all licensed or accredited health

facilities, indicating the category, service capability for both clinical and ancillary
services and other relevant information.
j. Violations and Sanctions
i. Violations relative to existing laws, rules and regulations on the regulation of

the health facility and its ancillary facilities/ services, and any other analogous
circumstances, shall be subject to the corresponding sanctions, such as
imposition of fines, preventive suspension or revocation of LTO or COA, or closure
of health facility, as defined by the relevant existing laws, rules and regulations
as well as by this Order.
ii. Non-compliance with licensing or accreditation standards and requirements

for equipment shall be considered a violation if deficiencies are not corrected
within thirty (30) calendar days after receipt of official notice. Non-compliance
with licensing or accreditation standards and requirements for manpower and
physical plant shall be considered immediately as a violation.
iii. With respect to the operation of ancillary facilities/services, the following

shall be considered as a violation:
a) Continued operation of an ancillary facility/service even when it is non-

compliant with regulatory standards and technical requirements.
b) Continued operation of an ancillary facility/ service despite a cease and
desist order with respect to the operation of the facility.
c) Continued operation of a regulated facility without a valid license.
iv. For non-hospital-based dialysis and ambulatory clinics:
a) If there are violations relative to existing laws, rules and regulations

governing the operation of the health facility;
1) Appropriate sanctions shall be imposed based on existing laws, rules and

regulations for the health facility and relevant provisions in this Order.
2) The health facility shall discontinue the provision of all services, including
ancillary services, until such time that all violations have been corrected and
sanctions have been imposed and complied with.
b) If there are violations relative to existing laws, rules and regulations

governing the operation of ancillary facilities/ services only:
1) The health facility shall discontinue the provision of the ancillary facility/
service.
2) The health facility may be issued an LTO based on compliance with existing
rules and regulations, but the ancillary service shall be removed from the list of
authorized services that shall be provided by the health facility.
v. For medical facilities for overseas workers and seafarers:
a) If there are violations relative to existing laws, rules and regulations

governing the operation of the health facility and/or its ancillary facilities/services:
1) Appropriate sanctions shall be imposed based on existing laws,

rules and regulations for the health facility and relevant provisions in this Order.
2) The health facility shall discontinue the provision of all services,

including ancillary services, until such time that all violations have been corrected
and sanctions have been imposed and complied with.
vi. If upon survey or monitoring visits, the health facility is found to be violating
existing rules and regulating and as well as other violations stipulated in this
Order, the BHF may immediately preventively suspend the operation of the
said health facility. Preventive suspension shall not be more than sixty (60)
days.
vii. For health facilities whose LTO or COA has been suspended, the LTO or
COA shall not be automatically renewed until the suspension order has been
lifted.
viii. For violations of existing laws, rules and regulations relative to the regulation
of ancillary facilities/ services, sanctions shall be borne by the health facility,
whether or not the ancillary facility/ service involved is owned by the health
facility.
ix. Any changes in the service capability of a health facility as a result of

sanctions imposed due to violations, including those involving ancillary facilities/
services, shall be reflected on the LTO or COA.
x. The order to impose sanctions shall be issued and enforced by BHFS.

Assistance from the CHD and LGUs may be sought in the enforcement of
sanctions.
k. Investigation and Hearing of Charges or Complaints
i. Upon filing of charges or complaints by any individual, corporation,

association, or organization, against any health facility, or any of its personnel
who has violated or is violating the provisions of laws and/or rules and regulations
for the regulation of the health facilities and their ancillary facilities/ services,
the BHFS shall investigate and verify whether the health facility concerned, or
any of its personnel, is guilty of the charges or complaints.
ii. If, upon investigation and hearing, the health facility concerned, or any of its
personnel is found violating the provisions of existing laws, and/ or rules and
regulations for the regulation of health facilities and their ancillary facilities/
services, the BHFS Director shall impose the corresponding sanctions: provided
that, if any of the personnel of government health facilities are involved, they
shall be subject to appropriate disciplinary/administrative action in accordance
with Civil Service rules: provided further that, if any of the involved personnel of
health facilities are professionals subject to the Professional Regulation

Commission, then the report finding that said personnel are guilty shall be
considered as a formal complaint against them and shall be immediately filed
with their respective Professional Regulatory Boards. These actions, of course,
are without prejudice to taking the case to judicial authorities for appropriate
action.
ii. The BHFS may ask the assistance of the BFAD or BHDT in the conduct of
the investigation, if the charge or complaint involves ancillary facilities such as
pharmacy or X-ray facility. It shall provide a copy of the investigation report to
the regulatory bureau/s concerned.
l. Appeal
i. Any health facility that has been denied an LTO or COA, or whose LTO or
COA has been suspended or revoked, after having filed a Motion for
Reconsideration with the BHFS, may elevate the case to the Office of the
Secretary, who shall now refer the same to the appropriate bureau for review
and recommendation. These offices may request for further clarifications and
documents or even request for Memoranda to be submitted by the party
concerned. In any case, the bureau concerned shall accordingly submit its
findings and recommendations to the Office of the Secretary for decision.
ii. The decision of the Office of the Secretary shall be final and executory.
VI. Repealing Clause
Provisions from previous issuances that are inconsistent or contrary to the provisions
of this Order are hereby rescinded and modified accordingly.
VII. Separability Clause
In the event that any provision or part of this Order is declared unauthorized or ren-
dered invalid by any court of law or competent authority, those provisions not affected by
such declaration shall remain valid and effective.
VIII. Effectivity
This Order shall take effect (15) days after its approval and publication in the official
gazette or newspaper of general circulation.
(SGD.) FRANCISCO T. DUQUE III, M.D., MSC.

Secretary Health
-o0o-

Administrative Order No. 2005-0027-A
Amendment to Administrative Order No. 2005-0027

“Rules and Regulations Governing the Regulation
of HIV Testing Laboratories”
Tuberculosis (TB) is one of the most common opportunistic infections among People
Living with HIV (PLHIV). Since TB significantly contributes to the mortality of PLHIV, one
strategy identified to address this concern was to put up a TB DOTS laboratory with HIV
testing capability as exemplified in Administrative Order (AO) No. 2008-0022 “Policies and
Guidelines in the Collaborative Approach of TB and HIV Prevention and Control”.
Another major public health concern is the Sexually Transmitted Infections (STI) which
has been shown to increase the risk of HIV. Performance of rapid serologic tests of HIV
will enhance the availability of testing in Social Hygiene Clinics (SHC).
In view of the above, Section V. A. 1. of AO No. 2005-0027 “Rules and Regulations

Governing the Regulation of HIV Testing Laboratories” is hereby amended to allow TB
DOTS Centers and SHC to operate an HIV testing laboratory under the direct supervision
of the National AIDS/ STI Prevention and Control Program and the National Reference
Laboratory – STD/AIDS Central Cooperative Laboratory/San Lazaro Hospital. Further-
more, these laboratories are exempted from securing a license to operate a clinical labo-
ratory, provided strict adherence to program policies and participation in their respective
Quality Assurance Programs are observed.
(SGD.) FRANCISCO T. DUQUE III, M.D., MSc.

Secretary Health
-o0o-
Schedule of Fees for the One-Stop Shop System for the

Regulation of Medical Facilities for Overseas Workers and
Seafarers and Non-Hospital-Based Dialysis Clinics and Non-Hospital-
Based Ambulatory Surgical Clinics with Ancillary Services
I. Background / Rationale
With the establishment of the One-Stop Shop System for the regulation of medi-
cal facilities for overseas workers and seafarers and non-hospital-based dialysis clinics
and non-hospital-based ambulatory surgical clinics with ancillary services, the Depart-
ment of Health (DOH) regulatory bureaus are moving towards the harmonization and stream-
lining of regulatory systems and processes, which is one of the reform strategies under
the FOURmula One for Health.
One of the important features of the One-Stop Shop system is the issuance of a
single license to operate (LTO) or certificate of accreditation (COA) to the health facility, for
the operation of its clinical services as well as its ancillary facilities/ services, such as, but
not limited to, the clinical laboratory, HIV testing, drinking water analysis, pharmacy, and
medical and dental x-ray facilities. The One-Stop Shop system does not include facilities
using radioactive material that are currently regulated by the Philippine Nuclear Research
Institute. With the single LTO or COA, there shall also be single LTO or COA fee, which is
a composite fee consisting of all the fees that correspond to each clinical and ancillary
service being provided by the health facility.
The schedule of fees that is prescribed in this Order is based on existing admin-
istrative issuances on the regulatory fees for health facilities, in particular, Administrative
Orders No. 2007-0001, 2007-0023 and 2008-0007. Thus, in this Order there are no new or
no increase in regulatory fees for the health facilities covered by the One-Stop Shop sys-
tem
II. Objective
This Order prescribes the schedule of fees in relation to the regulation of medical
facilities for overseas workers and seafarers and non-hospital-based dialysis clinics and
non-hospital-based ambulatory surgical clinics with ancillary services under the One-Stop
Shop System.
III. Scope
This Order shall apply to all medical facilities for overseas workers and seafarers and
non-hospital-based dialysis clinics and non-hospital-based ambulatory surgical clinics with
ancillary services that are applying for a permit to construct, license to operate, and/or
accreditation under the One-Stop Shop System.
IV. Definition of Terms
For purposes of this Order, the following terms shall be defined as follows:
1. Ancillary Facilities/ Services – include but not limited to the following: clinical labora-
tory, HIV testing, drinking water analysis, pharmacy, and medical and dental x-ray facili-
ties; exclude facilities using radioactive material that are currently regulated by the PNRI.
2. Applicant – refers to a health facility that is applying for either a License to Operate or
a Certificate of Accreditation.
3. COA – refers to the Certificate of Accreditation issued to a medical facility for overseas
workers and seafarers
4. DOH – refers to the Department of Health

5. Health Facility – refers to medical facilities for overseas workers and seafarers, and
non-hospital-based dialysis clinics and non-hospital-based ambulatory surgical clinics that
provide ancillary services
6. LTO – refers to the License to Operate issued to a dialysis clinic or an ambulatory

surgical clinic
7. One-Stop Shop System – a system of the DOH to harmonize the regulation of medical
facilities for overseas workers and seafarers, non-hospital- dialysis clinics, non-hospital-
based ambulatory surgical clinics, and their ancillary facilities/ services.
V. General Guidelines
1. Health facilities shall be required only a single LTO or COA fee that would cover clinical
services and ancillary facilities/ services.
2. The LTO or COA fee shall be a composite fee, consisting of all the fees that correspond
to each clinical and ancillary service being provided by the health facility.
3. PTC, LTO and COA fees shall be based on the schedule of fees as provided in the Order.
4. Because of the extension of the validity period of ancillary facilities/ services from one
year to three years and taking into account the costs involved in at least once-a-year
monitoring visits:
a. For pharmacies and X-ray facilities, the initial and renewal fee shall be three
times the amount prescribed in A.O. No. 2007-0023.
b. For clinical laboratories, the initial and renewal fee shall be the sum of three
consecutive yearly fees prescribed in A.O. No. 2008-0007.
5. Government-owned health facilities shall be exempt from payment of the fee for phar-
macy.
VI. Fees, Surcharges, and Discounts
A. Schedule of Fees
The DOH shall charge fees for services rendered in relation to the regulation of health
facilities and their ancillary facilities/ services under the One-Stop Shop System. The fees
shall be based on the schedule presented in the tables below.
Table 1. Schedule of Fees – Permit to Construct
Dialysis Clinic PHP 1,400.00

Ambulatory Surgical Clinic PHP 1,400.00
: Medical Facility for Overseas Workers and Seafarers PHP 1,500.00
Table 2. Schedule of Fees – Bond

Health Facility Bond (PHP)

Medical Facility for Overseas Workers and Seafarers 50,000
Table 3. Schedule of Fees – License to Operate/Accreditation Fee
Initial (PHP) Renewal (PHP)

Period Covered Period Covered
2009-2011 2010-2012 2009-2011 2011-2013

& onwards & onwards
Health Facility
Dialysis Clinic - basic 9,500 9,500 9,500 9,500
Clinical laboratory 1
- Limited Service
Capability 7,000 7,500 5,500 6,000
- Primary 7,000 7,500 5,500 6,000
- Secondary 8,500 9,000 7,000 7,500
- Tertiary 10,000 10,500 8,500 9,000
Pharmacy 2: 3,000 3,000 3,000 3,000
Medical X-ray 3,4 see Table 4
Ambulatory Surgical
Clinic –Basic 14,000 14,000 14,000 14,000
- Clinical laboratory 1
- Limited Service
Capability 7,000 7,500 5,500 6,000
- Primary 7,000 7,500 5,500 6,000

- Secondary 8,500 9,000 7,000 7,500
- Tertiary 10,000 10,500 8,500 9,000
- Pharmacy 3,000 3,000 3,000 3,000
- Medical X-ray 3,4 See Table 4
Medical Facility for Overseas

Workers and
Seafarers – basic 13,500 13,500 13,500 13,500
- Clinical laboratory 1
- Limited Service 7,000 7,500 5,500 6,000

Capability
- Primary 7,000 7,500 5,500 6,000
- Secondary 8,500 9,000 7,000 7,500
- Tertiary 10,000 10,500 8,500 9,000
- Pharmacy 2 3,000 3,000 3,000 3,000
Medical X-ray 3,4 See Table 4
Table 4. Schedule of Fees – License to Operate for a Facility with an X-ray Emitting
Equipment
mA Range Initial (PHP) Renewal (PHP)
100 mA and less 2,400 1,200
101 mA up to 300 mA 3,300 1,650
301 mA up to 500 mA 4,200 2,100

:
501 mA up to 700 mA 5,100 2,550
:
Greater than 700 mA 6,000 3,000
:
1
Add the corresponding laboratory fee to the basic LTO/COA fee. If the health facility has HIV
testing and/or water-testing services, or has a blood service facility, no additional fee is required.
2
Add the Pharmacy fee to the basic LTO/COA fee. This amount is good for one (1) pharmacy only.
Payment of PHP3,000.00 is required for each additional pharmacy, both for initial LTO/ COA and
renewal of LTO/ COA. Government-owned pharmacies are exempted from this fee.
3
Add the Medical X-ray fee to the basic LTO/ COA fee. This amount is good for one (1) x-ray
machine only. Payment of the corresponding amount is required for each additional machine,
both for initial LTO/ COA and renewal of LTO/COA.
4
Add the fee for Acceptance/Performance Testing of radiological equipment in the amount of
PhP7,920.00 to the basic LTO/COA fee. This amount is good for one (1) machine and for one
visit only. Payment of the same amount is required for each additional machine and for each
additional visit.
B. Payment of Fees
The applicant, upon filing an application, shall pay the corresponding fee to the DOH
Cashier in-charge of the One-Stop Shop System in person or through postal money order.
C. Re-Inspection Fee
If additional site visits or inspections are needed before the initial LTO/ COA can be
granted, a re-inspection fee that is equal to one hundred percent (100%) of the initial LTO/
COA fee shall be charged to the applicant for each re-inspection conducted, over and
above the initial LTO fee.
D. Discount on Renewal Fee
A ten percent (10%) discount on the renewal fee shall be granted if a complete appli-
cation for renewal is filed during the period beginning on the first day of October until the
last day of November of the last year of validity of the LTO/COA.
E. Surcharge
If an application for renewal of LTO/ COA is filed after the expiration date, a surcharge
equal to fifty percent (50%) of the renewal fee shall be imposed, over and above the re-
newal fee.
F. Review of Schedule of Fees
The schedule of fees for the One-Stop Shop system shall be regularly reviewed by the
Bureau of Health Facilities and Services, Bureau of Health Devices and Technology and
Bureau of Food and Drugs, in consultation with the Centers for Health Development and
Stakeholders.
VII. Repealing Clause
Provisions from previous issuances that are inconsistent or contrary to the Provisions
of this Order are hereby rescinded and modified accordingly.
VIII. Separability Clause
In the event that any provision or part of this Order is declared unauthorized or ren-
dered invalid by any court of law or competent authority, those provisions not affected by
such declaration shall remain valid and effective.
IX. Effectivity
This Order shall take effect fifteen (15) days after its approval and publication in the
official gazette or newspaper of general circulation.
(SGD.) FRANCISCO T. DUQUE III, M.D., M.SC.

Secretary of Health
--o0o--
Department Memorandum No. 2008-0210
GAMCA Referral Decking System
The Department of Health first issued Administrative Order No. 106, series of 2002,
holding in abeyance the implementation of Administrative Order No. 5, series 2001, which
is the “referral decking system” of the GCC Approved Medical Centers Association, Incor-
porated, otherwise referred to as GAMCA. This was reiterated in Administrative Order No.
159, series 2004, reminding the concerned OFW Clinics of the continued suspension of
the referral decking system. On 30 August 2004, by virtue of Administrative Order No. 167,
series 2004, AO No. 5, s. 2001 was explicitly revoked thus supposedly ending the so-
called “referral decking system”. To this date however, this anomalous practice still exist
and is being implemented by the GAMCA Clinics in contravention and in complete defi-
ance of the earlier Administrative Orders issued by this Department, and all to the detri-
ment of the outgoing Filipino workers which government has sworn to uphold and protect.
THUS ABOVE PREMISES CONSIDERED, the Department of Health hereby reiter-

ate the revocation of Administrative Order No. 5, series 2001; hence OFW Clinics, duly
accredited/licensed by the Department of Health and/or by the Philippine Health Insurance
Corporation (PHILHEALTH), belonging to and identified with GAMCA, are hereby directed
to FORTHWITH STOP, TERMINATE, WITHDRAW OR OTHERWISE END the insidious
practice known to be, as the “referral decking system”. Violations can no longer be toler-
ated and immediate compliance is hereby enjoined. FAILURE to abide with this Order
shall compel this Department to revoke and/or suspend the licenses/accreditations of the
violating Clinics issued by the Department of Health and/or recognized by the PHILHEALTH.
The Bureau of Health Facilities (BHFS) is hereby directed to immediately serve and
accordingly implement this Order and unless otherwise directed, BHFS shall periodically
apprise this Office at the end of every month its progress in implementing the same.
All issuances, orders, and/or memoranda inconsistent herewith are deemed super-
seded, repealed, or amended accordingly.
This Order takes effect immediately.
FOR STRICT COMPLIANCE

(SGD.) FRANCISCO T. DUQUE III, M.D. MSc.
Secretary of Health
--o0o--
Addendum to the Rules and Regulations

Implementing Republic Act No. 9288, Otherwise
Known as the “Newborn Screening Act of 2004”
Newborn Screening (NBS) is an essential public health strategy that enables the early
detection and management of several inborn errors of metabolism, which if left untreated,
may lead to mental retardation and even death. In line with the mandate and thrust of
ensuring quality life for all, promoting people’s right to health, ensuring children’s right for
survival and full development, the Department of Health (DOH) issued policies, Adminis-
trative Order No.1-a s. 2000 and Administrative Order No. 121 s. 2003, pursuing the nation-
wide implementation of NBS. Consequently, Republic Act 9288 known as the Newborn
Screening Act of 2004 was enacted in April 2004 which establishes the National Compre-
hensive Newborn Screening System (NCNBSS) to ensure that NBS is geographically
accessible and affordable to every baby born in the Philippines. To ensure that the law is
implemented at all levels, DOH issued the following:
a. Administrative Order 2005-0005 standardizing the NBS fee at P550.00 and setting the
maximum allowable service fee at P50.00; and
b. Directives to Bureau of Health Facilities and Services and Philippine Health Insurance
Corporation (PHIC) to include NBS in hospital licensing and PHIC accreditation to ensure
that health facilities i.e. hospitals, birthing facilities, rural health units, shall ensure that
adequate and sustained NBS services such as information, education, communication,
screening, recall and management of identified cases are provided in the hospital.
However, despite efforts to enforce the law, NBS coverage in the country remains at a
dismal rate of 17% of the 1.5 million newborns as of December 2007 which is far below the
targeted goal of screening all babies born in the country. Only 1,610 health facilities are
enrolled as NBS facilities as of 2007. Of these health facilities 1, 020 are hospitals, which
is only 57.6% of the total 1,771 licensed hospitals. Out of the enrolled health facilities only
1,325 (82.3%) are active in the collection of newborn screening. Charging exorbitant fees
way beyond the maximum allowed NBS fee of P600.00 are widely reported thus, defeating
the purpose of making NBS accessible and affordable to all.
The following additional Rules and Regulations are hereby promulgated to fully imple-
ment Rule VII Sec. 24 Licensing and Accreditation of Republic Act 9288 otherwise known
as “Newborn Screening Act of 2004”:
xxx
d) The NBS coverage goal is eighty five percent (85%) in 2010. DOH and PHIC
shall ensure that such target coverage will be attained by the hospitals and
other birthing facilities.
e) The following administrative fines shall be imposed on health facilities that

refuse to provide NBS services and collect more than the maximum allowed
NBS fee:
First Offense - Warning

Second offense - administrative fine of fifty thousand pesos (P50,000.00)
Third offense - administrative fine of one hundred thousand pesos
(P100,000.00)
f) The DOH and PHIC shall formulate their respective guidelines on fine
imposition.
Xxx
(SGD.) FRANCISCO T. DUQUE, III, MD, MSc.

Secretary of Health
--o0o--
Implementing Health Reforms for Rapid

Reduction of Maternal and Neonatal Mortality

-o0o-
Dated Filed: 06 November 2008
Joint DOH-DTI-IPO-BFAD Administrative Order No. 2008-01
The Implementing Rules and Regulations of Republic Act 9502

Otherwise Known As the “Universally Accessible Cheaper and
Quality Medicines Act of 2008"

-o0o-
Policies and Guidelines for the Accreditation of Training Institutions, Training

Programs and Training Providers for Massage Therapy in the Philippines
I. RATIONALE
Traditional medicine throughout the world recognizes the significance of therapeu-

tic massage in managing stress, illnesses or chronic ailments. Massage therapy is con-
sidered the oldest method of healing that applies various techniques like fixed or movable
pressure, holding, vibration, rocking, friction, kneading and compression using primarily
the hands and other areas of the body such as the forearms, elbows or feet to the muscu-
lar structure and soft tissues of the body.
Massage therapy can lead to significant biochemical, physical, behavioral and

clinical changes in massage as well as the person giving the massage. It contributes to a
higher sense of general well-being. Recognizing this, many healthcare professionals have
begun to incorporate massage therapy as a complement to their routine clinical care. 1
Efficacy of massage therapy in patient ranges from preterm neonates to senior citizens.
Although the country has the training standards and regulations through the Technical
Education and Skills Development Authority (TESDA), it lacks control / regulations over
the training institutions, thus anyone who calls him/herself a massage therapist is one,
regardless of training or experience.
The Department of Health created the Committee of Examiners for Massage

Therapy (CEMT) to regulate the practice of massage therapy in accordance to the provi-
sions of the Sanitation Code of the Philippines (PD 856) and Executive Order No. 102 s.
1999. Reorganization and Streamlining of the Department of Health. It provides the CEMT
the function to ensure that only qualified individuals enter the regulated profession and that
the care and services which the massage therapists provide are within the standards of
practice.
To effectively carry out the provisions of Section XIII of PD 856 – “Massage Clinics
and Sauna Bath Establishments”, the need to regulate potential training providers and
training institutions for massage therapy is necessary for the enhancement and mainte-
nance of its professional standards.
The formulation of guidelines on accreditation of training institutions and training

providers conducting training programs and other related activities for massage therapy in
the Philippines is in consonance with the objective to regulate and monitor existing and
would-be-training providers and training institutions and to enhance and maintain high
standards in the practice of the profession. This comprises the conduct of learning and
development activities.
II. OBJECTIVES
A. General:
1. To set the standards for the accreditation of training institutions and training providers for
massage therapists in the Philippines; and
2. To institutionalize the continuing education program for massage therapists in the coun-
try.
B. Specific:
1. To formulate standards that are locally doable and globally competitive;

2. To ensure the adherence of training institutions and training providers to the standards;
3. To identify areas of improvement in the line of work; and
4. To encourage participation of all stakeholders.
III. SCOPE
This Order shall cover all training institutions and training providers duly registered
by the Securities and Exchange Commission (SEC) or Department of Trade and Industry
(DTI) conducting training programs/reviews/seminars/courses and other related activities
for massage therapists.
IV. DEFINITION OF TERMS
To provide the implementers / stakeholders a common frame of reference in the inter-

pretation of the guidelines, the following terms are herein defined as used in the Order.
A. Accreditation –This refers to the act of recognition or a method of determining that an

eligible organization, institutions, individual or program complies with approved standards.
B. Allied Medical Professions – This refers to health professions other than Doctor of
Medicine, but not limited to the following: Nurses, Midwives, Physical Therapists, Medical
Technologists, Occupational Therapists, Radiologic Technologists, Bachelor of Science in
Public Health, and Sanitary Engineers.
C. Assessment – This refers to the process of gathering data or information from the client.
D. Certificate of Registration – This refers to a certification in writing issued by the Depart-

ment of Health Committee of Examiners for Masseurs (Massage Therapists) who have
been authorized to perform massage (massage therapy) procedures and to supervise
massage attendants/masseurs.
E. Certified Training Provider (CTP) – This refers to a person who meet the standards
established by the National Accredited Training Center of the DOH, and is in-charge of
providing knowledge and skills necessary in updating the massage therapist’s compe-
tence. The certified training provider is a holder of a certificate of training from the National
Accredited Training Center and is entitled to use CTP (Certified Training Provider) after his/
her name.
F. Committee of Examiners for Massage Therapy (CEMT) – This refers to a Committee

created through a DOH Department Personnel Order with the prime responsibility of en-
suring adequate, competent and globally competitive massage therapists.
G. Continuing Massage Therapy Education (CMTE) – This refers to the acquisition of

knowledge, skills, ethical and moral values after the initial registration of massage thera-
pist, which improves and enhances his/ her technical competence in the massage therapy
profession.
H. Continuing Massage Therapy Education (CMTE) Council – This refers to a group of

experts in massage therapy and in training regulations. It is created to accredit training
institutions, training providers and programs in accordance to the provisions of this Order.
I. Convention / Seminar – This refers to the gathering of massage therapists which shall
include, among others, conferences, symposia, workshops, technical lectures/ subject
matter meetings, assemblies or round table discussions.
J. Evaluation – This refers to the observation and interpretation of the client’s condition
based on the assessment.
K. Fellowship – This refers to the completion of a post doctoral training program in a

specific field pre-approved by a duly recognized institution, scientific meeting and the like.
L. In-Service Training – This refers to training or specialization for a minimum period of one
(1) week.
M. Massage – This refers to the method wherein the superficial soft parts of the body are
rubbed, stroked or knead for remedial or aesthetic or hygienic purposes. It also includes
the practice of reflexology, synchrotherapy, and other similar techniques that use instru-
ments and other parts of the body.
N. Massage Therapist (Masseur/Massagist) – This refers to a trained person who has

passed the massage therapist’ (masseur’/massagist’) licensure examination and is a holder
of a valid certificate of registration for masseur (massage therapist) issued by the Depart-
ment of Health Committee of Examiners for Massage Therapists (masseurs/massagists).
O. Massage Therapy – This refers to a system of assessment, evaluation and manual

application techniques used in a scientific manner taking into account the muscle loca-
tions, stress points and other anatomical considerations of the human body. It includes
adjunctive external application of water, heat and cold, stretching, passive and active joint
movement within the normal physiologic range of motion as a means of promoting pain
relief, injury rehabilitation or health improvement in a safe, non-sexual environment that
respects the clients self-determined outcome for the session.
P. National Accredited Training Center (Service Provider) – This refers to the institution
offering training courses. The said institution has been certified by the Department of
Health (DOH) as the accrediting agency to have met the established standards and re-
ceived a certificate of recognition from DOH. The national accredited training center shall
be named service provider. Likewise, the national accredited training center shall have
a full time national accredited trainer.
Q. National Accredited Training Provider (or national accredited trainer) – This refers to a
person after meeting the established standards of accreditation certified by the Depart-
ment of Health (DOH), is in-charge in providing knowledge and skills necessary in develop-
ing and/or updating the massage therapist’s competence.
R. Resource Speaker / Person – This refers to a licensed massage therapist or an expert

in a specific field who acts as a discussion leader or lecturer in a convention, seminar or
similar gathering.
S. Self-Directed Learning Package – This refers to learning methodology using accredited

course manuals/modules, self-instructional materials/programs such as but not limited to
printed manual, audio and video tapes, films, computer-assisted learning study kits and
the like.
T. Training Institution – This refers to a facility/establishment that renders training services

relative to the practice of massage therapy.
V. ACCREDITATION GUIDELINES
1. Training Institution
No training institution shall open or operate without a sanitary permit issued by the
local health officer. Application, renewal, noting validity posting, and recording of sanitary
permit shall follow the provisions of Section 3- Sanitary Permit (pp.3-4), IRR of Chapter XIII
“ Massage Clinics and Sauna Bath Establishments” of PD 856.
1.1 Criteria
A. Physical
1.1.1 The facility shall have provision of continuous supply of potable water
for the facility;
1.1.2 Vermin abatement control program shall be provided for the facility;
1.1.3 The facility shall provide adequate toilet facilities to potential attendees;
1.1.4 The facility shall have the following to facilitate learning and development;
(Section 61, Sanitary Requirements p. 22 of PD 856 and Section 5- Structural
Requirements pp. 6-10 of the IRR of Chapter XIII of PD 856;
# Floor area that can accommodate at least 20 persons and shall cater to the
following:
- Reception / Receiving area
- Conference room
- Laboratory / Practical room
- Massage table shall be 1.80 meters in length, 0.80 meter in width
and 0.70 meter in height
- Towels, linens, robe/gown, pillow
- Oil, alcohol, BP apparatus
- Classroom that can accommodate at least 15 students at a time
- Chairs and tables
- Adequate lighting
- Well ventilated
- Teaching paraphernalia (audio visual equipment, computer, LCD,
television set with VCD/DVD player, board)
- Library with the following amenities:
- At least 10 massage related books (legal/original copies)
- Reference book per subject matter/ course arranged in shelves
- Tables and chairs
# Lockers for faculty/students and storage for supplies
B. Human Resource
1.1.5 The facility shall have full-time DOH accredited training provider;
1.1.6 The facility shall be complemented with a full-time staff that attends to
day-to-day activity (as per IV. Implementing Mechanism, AO # 147 s 2002,
“Revised Guidelines Governing the Management of Health Human Resource

Training and Development Programs in the Department of Health”);
1.1.7 The facility shall ensure that the full-time accredited providers/s and the
full time staff are enrolled in PHILHEALTH and that they enjoy the full benefits
for full-time employees
1.1.8 The facility shall have instructors, lecturers and resource speakers with
good moral character and technical competence and are preferably, holders of
valid and updated DOH Massage Therapist’s license.
C.Compliance to Requirements
1.1.9 The facility shall have an established mechanism for measuring the quality
of the training being offered or administered
1.1.10 Must be a duly registered institution of good standing by the Securities
and Exchange Commission (SEC) for corporations and partnerships, or the
Department of Trade and Industry (DTI) for single proprietorship, and has never
been convicted of a crime, by the law enforcement agencies.
1.1.11 The facility shall practice waste management program:
1.2 Procedure
1.2.1 Any training institution seeking accreditation shall accomplish and submit
to the CEMT an appropriated, filled up application form (Annex A)
1.2.2 The application shall include, but not limited to, the following information
and documents:
- License to Operate
- Business Permit
- Sanitary Permit
- Department of Trade and Industry (DTI) or
- Securities and Exchange Commission (SEC)
- Floor plan lay out including location/vicinity map of training institution signed
by the owner
- Creation Design of the institution that includes:
- Rationale – the reason/justification for the conduct of the training

course
- Objectives (general, specific) highlighting the products of learning
that establish direction
- Contents – topics/subject matters that complement the
achievement of the objectives and session plans with short
description of each topic
- Methodologies – the procedures used in imparting the message
to receivers
- Operating details
- target participants
- venue and date
- amenities
- list of personnel and resource persons / lecturers and accredited training

providers including their updated curriculum vitae and relevant certificates
1.2.3 If the Committee finds the program, activity or source to be relevant to the profes-
sion and in accordance with the set guidelines, the Committee shall issue a certification
within thirty (30) days after inspection;
1.2.4 There shall be a non-refundable filing fee payable only to the Department of Health;
1.2.5 A non-refundable fee shall be paid upon approval of the application for accredita-
tion of the facility
1.3 Inspection and Monitoring
1.3.1 All new applications for accreditation of training institution shall be subject to
ocular and facility inspection at the least one month after application has been filed. No
accreditation shall be issued unless inspection has been conducted by the Committee of
Examiners for Massage Therapy (CEMT)
1.3.2 Annual Inspection shall be conducted by the Committee of Examiners for Mas-
sage Therapy (CEMT), for the first two years after approval of accreditation and every other
year thereafter.
1.3.3 Records shall be made available to determine compliance with accreditation re-
quirements
1.4 Terms and Conditions
1.4.1 There shall be a separate accreditation fee for each branch of training institution
1.4.2 The certificate of accreditation is non-transferable
1.4.3 Accreditation is temporarily cancelled upon change of location of the facility or change
of ownership / business name. An ocular inspection with the approval of the CEMT in the
case of such change will suffice re-accreditation
1.4.4 The certificate of accreditation of the training institution shall be displayed in a con-
spicuous place readily seen by the public for the purpose of information and guidance
1.4.5 The effectivity of the certificate of accreditation shall be for three (3) years and renew-
able thereafter
1.4.6 There shall be sufficient number of passers in the examination given by the Commit-
tee or equivalent to 50% of enrollees who took the licensure examination in the training
institution to facilitate renewal of accreditation
2. Training Provider
2.1 Qualification
2.1.1 Duly licensed Massage Therapist;

2.1.2 College graduate on health allied or equivalent or has earned at least 80
units in teaching-learning principles and methodologies from a respectable
school or institution and has attended the Training or Trainers Course conducted
by the DOH accredited training institution
2.1.3 Shall submit the following documents:
- Certificate of recent physical and medical examination conducted
by a physician from a government health facility
- Certified True Copy of Transcript of Records or diploma or scholastic

records; or certificate of the 80 units of teaching-learning principles
and methodologies earned from the DOH accredited training
institution
- Certified True Copy of Trainer’s Course by the DOH accredited
training Institution
2.2 Accreditation Fee

2.2.1 There shall be a non-refundable fee payable to the DOH upon filing of
application for accreditation of training provider.
2.2.2 A non-refundable fee shall be paid to the DOH upon approval of application
2.3 Quality Assurance
2.3.1 The applicant for training provider shall pass the proficiency test (oral and
practical) administered and covered by the DOH CEMT rules and regulations
with at least 75% overall final rating
2.3.2 Shall file the corresponding requirements under oath or notarized
VI. RENEWAL, SUSPENSION AND CANCELLATION OF CERTIFICATE OF ACCREDI-

TATION
1. Renewal of Certificate of Accreditation
The training institutions and training providers shall renew its accreditation every three
(3) years.
1.1 A notarized request signed by the President of the training institution or the train-
ing provider for the renewal of the certificate of accreditation stating, among others, (a) that
the training institution/training provider continues to maintain the purpose for which it
was established, i.e., for the upliftment of the standards of training institutions including
training provider; (b) that the membership (licensed massage therapists) to the accredited
training institution does not fall below 50% of those who have been issued their cards for
the current year; and (c) that the trainees of the accredited training provider does not
fall below 50% of those who have successfully passed the licensure examination of the
current year.
1.2 Copy of the Certificate of Registration issued by the Securities and Exchange Com-
mission (SEC) for corporations and partnerships, or the Department of Trade and Industry
(DTI) for single proprietorships (for training institution only).
1.3 List of current officers of the training institution including the complete list of members
indicating their DOH registration numbers and dates of registration (for training institu-
tion only).
1.4 Updated list of trainees indicating numbers and dates of their registration, who have
been under the accredited training provider (for training provider only)
1.5 Report on significant achievements, changes, advancements as training institution /

training provider in attaining the objectives of the program.
1.6 Official receipt of payment of the prescribed renewal fee from the DOH cashier.
2. Suspension of Accreditation
A certificate of accreditation of an accredited training institution/training provider shall

be suspended by the Committee of Examiners for Massage Therapy (CEMT) under any of
the following grounds/causes.
2.1 The accredited training institution / training provider has ceased to possess any of the
qualifications for accreditation;
2.2 The accredited training institution/ training provider no longer serve the best interest of
the massage therapists for which it was accredited;
2.3 The three (3) – year enrollment in the accredited training institution / training provider
falls 50% or below of those who have been issued their annual registration cards;
2.4 The accredited training institution/ training provider has committed acts detrimental to
its members / co-massage therapists and to the profession;
2.5 The accredited training institution / training provider has not renewed its certificate of
accreditation for two (2) renewable periods; and
2.6 The accredited training institution / training provider continued providing training with-
out complying with standards.
3. Cancellation of Accreditation
3.1 The accredited training institution’s/ trainer’s continue violation of any of #s 1-6 of “2.
Suspension of Accreditation”, after two (2) times suspension for the same cause;
3.2 The accredited training institution’s/ trainer’s violation of three (3) or more grounds /
causes all at the same time;
However, due process shall be observed before accreditation of training institution /

provider is suspended / cancelled.
- The training institution / provider shall:
a. receive a formal letter informing of the offense

b. be given a chance to explain their reason for non-suspension/cancellation
- The CEMT shall:
a. review and evaluate the offense vis-à-vis the reasons and supporting documents
submitted
b. conduct forum with the training institution/provider for further question (if
necessary)
c. provide copy of the decision personally to the training institution/provider
4. Effect of Non-renewal, Suspension or Cancellation of Accreditation
An accredited training institution / training provider whose certificate of accredita-

tion has been suspended or not renewed or whose accreditation has been cancelled,
cannot represent the massage therapists for which such training institution / training pro-
vider has been established during the suspension, cancellation or non-renewal of certifi-
cate.
Training programs/ activities conducted by the training institution / training pro-

vider which accreditation has been suspended, not renewed or cancelled shall not be
honored during renewal of license by the massage therapists.
VII. CONTINUING MASSAGE THERAPY EDUCATION (CMTE)
One of the powers of the Committee of Examiners for Massage Therapy (Mas-
seur) is to monitor the conditions affecting the practice of the massage therapy profession
or occupation whenever necessary, adopt such measures as may be deemed proper for
the enhancement of the profession or occupation and/ or maintenance of high profes-
sional, ethical and technical standards, hence, the creation of the Continuing Massage
Therapy Education Council (CMTEC).
All registered massage therapists are required to upgrade their competencies

through attendance in continuing education programs and likewise, submit 30 credit units
before the renewal of their Massage Therapist’s card (Please see annex for Matrix for
CMTE Programs, Activities or Sources).
The CMTEC shall provide from the list of accredited trainers/resource speakers
from the different training facilities to create a range of continuing massage therapy
education topics which will be approved by the CMTEC.
A. Creation / Composition
The CEMT shall create a council upon effectivity of this Order. This shall be known as
the Continuing Massage Therapy Education (CMTE) Council who shall assist the CEMT in
implementing the CMTE program. Likewise, the Committee coordinates directly to the
Centers for Health Development (CHDs) through the Human Resource Development Units
(HRDUs).
The CMTE Council shall be composed of a chairperson and two (2) members and will
be assisted by the CEMT Secretariat. The chairperson shall be chosen from among the
members of the CEMT by the members themselves. The first member shall be chosen
from among the members of the DOH Accredited Training Institutions for Massage Therapy
by the members themselves. The second member shall be chosen from among the
DOH licensed massage therapists who are in active with valid and updated certificate of
registration.
The term of office of the chairperson and members shall be for three (3) years and
renewable thereafter. However, they shall continue to function as such in the CMTE Coun-
cil until their respective successors have been appointed by the CEMT.
B. Powers and Functions
The CMTE Council shall exercise powers and functions which shall include but shall
not be limited to the following:
1. Accept, evaluate and approve applications for accreditation;

2. Accept, evaluate and approve applications for accreditation of CMTE programs, activi-
ties or sources as to their relevance to the profession and determine the number of CMTE
credit units to be earned on the basis of the contents of the program, activity or source
submitted by the CMTE providers;
3. Determine the appropriateness of the training fee vis-a-vis the training course / pro-
grams, activities and sources to be offered
4. Monitor the implementation of CMTE program, activities or sources;
5. Assess periodically and upgrade criteria for CMTE programs, activities or sources;
6. Perform such other related functions that may be incidental to the implementation of the
CMTE programs, activities or sources.
The HRDU shall exercise powers and functions which shall include but shall not
be limited to the following:
1. Establish credibility and strong partnership between CHD and the Committee;
2. Create productive and efficient work environment within CHD and the massage thera-
pists;
3. Responsible in assessing/evaluating authenticity and completeness of all documents
required for application for the renewal of accreditation;
4. Facilitate approval of renewal of accreditation for accredited training institutions, provid-
ers and programs;
5. Conduct technical updates for accredited training institutions and providers;
6. Attend to queries regarding the Massage Therapy Program and accreditation;
7. Receive complaints/charges filed against a training institution/provider; and
8. Coordinate/facilitate investigation of cases/complaints filed against a training institu-
tion/provider.
The Local Health Authority shall issue sanitary permit to accredited training insti-
tutions/providers
C. Accreditation of Programs, Activities or Sources; Equivalent Credit Units;
Credit Requirements
1. Accreditation of Programs, Activities or Sources
The accredited training institutions / trainers are considered CMTE Providers. CMTE
providers may submit to the CMTEC programs, activities or sources to be approved and
accredited for CMTE units such as seminars, conventions, fellowship, self-directed learn-
ing package, in-service training and resource speaker / person.
2. CMTE Credit Units
The total CMTE credit units for registered massage therapist shall be thirty (30) CU for
three (3) years. Any excess credit units earned shall not be carried over to the next three
– year period except for post-graduate degrees.
VIII. VIOLATION AND PENALTY
Any violation of this Administrative Order governing accreditation of training centers/

institutions and training providers for Massage Therapists and/or PD 856 and its imple-
menting laws shall be a ground for denial or revocation of issued accreditation.
IX. INVESTIGATION OF CHARGES OR COMPLAINTS
The Committee of Examiners for Massage Therapy (CEMT) or the Center for Health
Development (CHD) CEMT coordinator shall investigate the complaint or charges and
verify whether the training center/institution, trainer is liable thereof. If proven liable, the
corresponding penalty shall be imposed.
X. REPEALING CLAUSE
This Order supercedes other Orders inconsistent with the above-mentioned poli-
cies and guidelines for the accreditation of training institutions, training programs and
training providers for massage therapists.
XI. EFFECTIVITY
This accreditation guidelines shall take effect upon approval and publication in
UP Gazette.
(SGD.) FRANCISCO T. DUQUE III, MD, MSc

Secretary of Health
DEPARTMENT OF TRADE AND INDUSTRY
Department Administrative Order No. 11, s. 2008
Further Amending Certain Provisions of Department

of Trade Administrative Order No. 80, Series
of 1982, as Amended
WHEREAS, Act No. 3883 (Business Name Law) as amended, mandates the
Department of Trade and Industry (DTI) to regulate the registration and use in business
transactions of names other than true names, prescribes the duties of the Director of
Bureau of Commerce (now Bureau of Trade Regulation and Consumer Protection) in its
enforcement, and provides penalties for its violation, among others;
WHEREAS, juridical persons registered under the Corporation Code of the Philip-
pines, Cooperative Code of the Philippines and similar laws confer upon these persons
the right to carry on or engage in business under its own registered names; this fact
notwithstanding, these juridical persons are still allowed to register its names under the
Business Name Law;
WHEREAS, Securities and Exchange Commission (SEC) Item 4 of the Memo-

randum Circular No. 14 Series of 2000 entitled “Revised Guidelines in the Approval of
Corporation and Partnership Names” provides that “business or tradename of any firm
which is different from its corporate or partnership name shall be indicated in the articles of
incorporation or partnership of said firm.”;
WHEREAS, Executive Order No. 428 issued on May 2005, directs departments,
Bureaus, Offices and other Agencies in the Executive Branch, including Government-Owned
and Controlled Corporations to simplify rules and regulations to facilitate doing business
and encourage more investments in the country;
WHEREAS, Executive Order No. 557 issued on 08 August 2006, establishes an

Anti-Red Tape Task Force chaired by the DTI Secretary, aimed to streamline government
processes and reduce the cost of doing business in the Philippines;
WHEREAS, in consonance with the objectives of Executive Order Nos. 428 and
557 and for purposes of efficiency, the Department of Trade Administrative Order (DTAO).
No. 80 series of 1982, implementing Act. No. 3883 as amended, is hereby further amended
accordingly.
WHEREFORE IN VIEW OF THE FOREGOING, this Order is hereby prescribed

and promulgated for the information, guidance and compliance of all concerned:
SECTION 1. Section 11, Rule V of DTAO No. 80 series of 1982 is hereby

“Section 11. THE FOLLOWING NAMES SHALL NOT BE REGISTRABLE:
a.) xxx
b.) (i) NAMES WHICH SO NEARLY RESEMBLES A BUSINESS NAME
PREVIOUSLY REGISTERED WITH THE DEPARTMENT OF TRADE AND
INDUSTRY, THE SECURITIES AND EXCHANGE COMMISSION (SEC) OR ANY
OTHER GOVERNMENT OFFICE AUTHORIZED BY LAW TO REGISTER
NAMES AS LIKELY TO CAUSE CONFUSION OR MISTAKE IN THE MINDS
OF THE PUBLIC AND PREJUDICE THE INTEREST OF THE OWNER OF THE
REGISTERED BUSINESS NAME TAKING INTO CONSIDERATION THE
FOLLOWING:
1. nature of the business

2. products/ services handled
3. use of dominant/descriptive words
4. spelling, sound and meaning
5. such other factors as may be determined by the Secretary of the Trade and
Industry.
(ii) NAMES OF JURIDICAL PERSONS SUCH AS CORPORATIONS, AND

PARTNERSHIPS REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION, COOPERATIVES REGISTERED WITH THE COOPERATIVE

DEVELOPMENT AUTHORITY (CDA) AND OTHER NAMES REGISTERED
WITH THE GOVERNMENT AGENCIES ALLOWED TO REGISTER NAMES;
(iii) NAMES OF JURIDICAL PERSONS OTHER THAN ITS REGISTERED

NAMES WITH THE PROPER GOVERNMENT AGENCY OR SUCH “ADOPTED
NAMES” WHICH ARE REQUIRED TO BE INDICATED IN THE ARTICLES OF
INCORPORATION/ PARTNERSHIP, COOPERATIVE, AND THE LIKE.
xxx”
SECTION 2. Section 10 Rule IV of DTAO No. 80, series of 1982 as amended

by Section IV, Article III of DAO No. 6, Series of 1999 is hereby amended to
read as follows:
“In case of renewal of REGISTRATION, the five (5)-year PERIOD OF VALIDITY

of the Certificate of Registration shall be reckoned from the date of APPROVAL
OF THE APPLICATION FOR SUCH RENEWAL.
ANY BUSINESS NAME WHOSE REGISTRATION IS NOT RENEWED WITHIN

SIX (6) MONTHS FROM ITS EXPIRATION DATE SHALL BE AUTOMATICALLY
CANCELLED FROM THE BUSINESS NAME RECORDS.”
SECTION 3. The second Section 12 in Rule VI of DTAO 80, series of 1982 is hereby
deleted.
SECTION 4. Original and renewal registration of the names of juridical persons,

including adopted names, shall no longer be allowed upon effectivity of this Order.
SECTION 5. All Department Administrative Orders, other issuances or parts thereof

inconsistent with this order are hereby repealed or amended accordingly.
SECTION 6. This Order shall take effect fifteen (15) days after its publication in a
newspaper of general circulation and upon filing with the University of the Philippines Law
Center three (3) certified copies hereof pursuant to Sec. 3 (1) of Chapter II, Book VII of
Executive Order No. 292, as amended.
APPROVED:
(SGD.) PETER B. FAVILA

Secretary
Department of Trade and Industry
RECOMMENDED BY:
(SGD.) ZENAIDA CUISON MAGLAYA (SGD.) VICTORIO MARIO A. DIMAGIBA

Undersecretary Director
Consumer Welfare and Trade Bureau of Trade Regulation and
Regulations Group and Consumer Protection
-o0o-
Department Administrative Order No. 09
Rules and Regulations to Implement Republic Act No. 6977,

As Amended by Republic Act No. 8289, and further Amended by
Republic Act No. 9501 Otherwise known as the Amended
“Magna Carta for Micro, Small and Medium Enterprises”

DEPARTMENT OF TRANSPORTATION AND

COMMUNICATIONS
DOTC Administrative Order No. 2008-01
Citizen Suit Policy Enforcement Guidelines
Section 1. Legal Basis - Pursuant to Section 41 of Republic Act No. 8749, also
known as the “Philippine Clean Air Act of 1999,” and Rule LII of DAO 2000-81, the
Department of Transportation and Communications (DOTC) hereby promulgates the following
guidelines for the operationalization of the citizen suit provision thereof.
Section 2. Objectives - This Order is being issued for the purpose of establishing a
system for the implementation and operationalization of the citizen suit policy in the
Philippine Clean Air Act (hereafter referred to as ‘the Act’) within the jurisdiction of the
DOTC. The citizen suit policy seeks to achieve the following:
(a) promote the participation of the citizens in the enforcement of the Act;
(b) serve as stimulus to government officials to take the necessary and
appropriate action to abate and/or control pollution; and
(c) maximize the value of public pressure to promote a shift in the behavior of
polluters.
Section 3. Definition of Terms.
For purposes of this Order, the following terms shall mean:
1. Citizen Suit refers to a proceeding brought before the proper forum by citizens(s) who
seek to enforce the rights or obligations created under the Act.
2. Civil Action refers to one by which a party sues another for the enforcement or protec-
tion of a right, or the prevention or redress of a wrong.
3. Criminal Action refers to one by which the State prosecutes a person for an act or
omission punishable by law.
4. Administrative Action refers to one by which a party can avail of a non judicial remedy
against an officer for a non-performance of a duty or function.
5. Department refers to the Department of Transportation and Communication.
6. Notice of Intent to Sue refers to the 30-day notice given by any citizen who intends to
file citizen suit against any violator of the Act.
7. Officer as distinguished from “clerk” or “employee” refers to a person whose duties, not
being of a clerical or manual in nature, involves the exercise of discretion in the perfor-
mance of the functions of the government. When used with reference to a person having
authority to do a particular act or perform a particular function in the exercise of govern-
mental power, “officer” includes any government employee, agent or body having author-
ity to do the act or exercise that function.
8. Prospective citizen/plaintiff refers to any person who served a Notice of Intent to Sue
with the intention of filing a citizen suit pursuant to the Act.
9. Parties directly affected refers to the real party in interest who is the party who stands
to be benefited or injured by the judgment in the suit, or the party entitled to the avails of
the suit.
Section 4. Scope and Coverage - This Order shall apply to any administrative, civil
or criminal action or remedy that any citizen intends to file with the proper forum pursuant
to the citizen suit provision under the Act involving mobile sources against any of the
following parties:
(a) Any private natural or juridical person, including government owned and controlled cor-
porations, who violates or fails to comply with the provisions of the Act;
(b) The Department in case of orders or rules issued inconsistent with the Act. For this
purpose, unless the inconsistency is so blatant as to manifest evident bad faith, the action
available herein shall only be civil in nature, such as for declaratory relief and/or injunction.
The government official who was made a respondent in said civil action shall be sued in his
official capacity and shall not be liable for damages.
(c) Any officer of the Department who willfully or grossly neglects to perform the duties
provided for under the Act, or who abuses his authority or in any manner improperly per-
forms his duties under the Act and its Implementing Rules and Regulations.
Provided, that, upon filing of the action before the appropriate forum, the rules of
procedure for each forum or court shall apply, Provided, also that, any suit filed by any
person directly affected by the alleged act or DOTC against violators of the Act shall be
independent from the Traffic and Adjudication System for administrative case and the
Ombudsman for cases against public officers.
Section 5. Notice of Intent to Sue - Pursuant to Section 4 of Rule LII of DAO 2000-
81, administrative, criminal or civil remedies against any party initiated as to a citizen suit
shall be filed with the proper forum only after a 30-day Notice of Intent to Sue is given by
the prospective citizen/plaintiff to the alleged violator, with a copy furnished to the Department.
The 30-day notice shall be a condition precedent to the filing of the case and given for
purposes of allowing the alleged violator the opportunity to undertake the necessary
measures to abate the pollution. Provided, that any person directly affected by the alleged
act, or the Department through the LTO can motu propio file action against violators of the
Act without the required notice.
Section 6. Service of Notice of Intent to Sue - Notice of Intent to Sue shall be served
by the prospective citizen/ plaintiff upon the Department or the LTO for issuing an Order or
Rule issued inconsistent with the Act or its Implementing Rules and Regulations, or upon
its officers who fail to perform an act or duty which is not discretionary under the Act in the
following manner:
(a) Service of notice shall be accomplished by registered mail, return receipt requested,
addressed to, or by personal service upon the officer and the Secretary of the Department
(b) Notice given in accordance with the provisions of this Order shall be considered to have
been served on the date of personal receipt. If service was accomplished by registered
mail, the date of receipt will be considered to be the date of mailing noted on the return
receipt card.
Section 7. Contents of Notice of Intent to Sue.
(a) Failure to act. Notice regarding an alleged failure of an officer of the Department to
perform an act or duty which is not discretionary under the Act shall identify the provisions
of the Act which require such act or create such duty, shall describe with reasonable
specificity the action taken or not taken by the officer which is claimed to constitute a
failure to perform the act or duty, and shall state the full name, address, and telephone
number of the person giving the notice.
(b) Illegal Order or Rules. Notice regarding an alleged Order or Rules issued by the Depart-
ment not consistent with the Act shall identify the provision(s) if the Act which has been
violated by the said Order or Rules.
The notice shall state the name, address, and telephone number of the legal counsel,
if any, representing the person giving the notice.
Section 8. Written Response to Receipt of Citizen Suit Notice - Within 30 days

from receipt of the Notice of Intent to Sue, the official of the Department who issued the
order or rules inconsistent with the Act, shall respond to the Notice in writing and served
to the prospective citizen/plaintiff. If the violation contemplates an officer who fails to
perform an act or duty required under the Act, the response shall be served to the prospective
citizen/plaintiff and the Secretary of the Department. Failure to respond to the Notice shall
merit the filing of a citizen suit in the proper forum.
Section 9. Department’s Response to Receipt of Citizen Suit Notice -Within ten

(10) days upon receipt of a copy of a citizen’s Notice of Intent to Sue, the Department shall
respond in writing to the prospective citizen/ plaintiff and the respondent-officer stating any
action taken or planned with respect to the alleged violation. The Department may motu
propio file appropriate administrative charges against the respondent-officer. Notwithstanding
the response given by the Department, the prospective citizen/ plaintiff may file
administrative, civil or criminal in the proper forum after the lapse of 30 days from Notice.
Section 10. Citizen Action against Violation of Vehicle Emission Standards - The
following guidelines shall govern action against violation of Vehicle Emission Standards
(VES):
(a) Report of Violation of VES. Any citizen may report alleged violations of vehicle emis-
sion standards by submitting to the Investigation Division of the LTO a picture or a video of
the smoke-belching vehicle, together with other relevant information such as plate num-
ber, date and location where the vehicle was caught on camera, and an affidavit signed by
the photographer who took the picture stating that the photographer did not manipulate
the picture.
(b) Issuance of Show Cause Order. On the basis of the photograph and other documentary
support, the LTO shall issue a Show Cause Order to the owner of the vehicle subject of the
report requiring the owner of the vehicle to show cause why an administrative case should
not be filed against him/her for alleged violation of the VES. Provided, that, in the absence
of an affidavit issued by the photographer/ video-taker, or in cases of anonymous com-
plaints, the LTO shall verify the information submitted, or complaint filed, to determine
whether or not a Show Cause Order will be issued by the LTO on the basis of the same.
(c) Response to the Show Cause Order. Within 30 days from receipt of the Show Cause
Order, the owner of the vehicle shall respond to the Show Cause Order and submit proof of
compliance with Vehicle Emission Standards consisting of a vehicle Emission Testing
Result issued by accredited/authorized Private Emission Testing Center (PETC) conducted
not later than 30 days from submission of the same to LTO.
(d) Failure to Respond to the Show Cause Order. Failure to respond to the Show Cause
Order within 30 days from receipt of the Show Cause Order shall merit the following ac-
tions:
(1) An annotation shall be caused to be placed in the vehicle registration record

of the subject vehicle, and registration of the said vehicle shall be allowed only
upon securing a clearance from the Investigation Division of the LTO; and,
(2) LTO shall alarm all enforcers of VES of the alleged violation for apprehension
of subject vehicle by including the same in the LTO alarm list.
(e) Test for Compliance with VES. The LTO or its deputized enforcers who apprehended
vehicles pursuant to this Section shall test the same for compliance with the VES.
(f) Complaint against non-compliant vehicles. If the apprehended vehicle fails to comply
with the VES after a test conducted pursuant to this Section, a complaint shall be filed by
the LTO in accordance with Rule LI of the Implementing Rules and Regulations of the Act.
This Section is without prejudice to the roadside inspection system being undertaken
by the Department and other deputized teams pursuant to Section 46 of the Act.
Section 11. Separability Clause - If any clause, provision or section of these Guidelines
shall be declared unconstitutional or invalid, the remaining parts of these rules shall not be
affected thereby, shall remain in full force and effect.
Section 12. Repealing Clause - All orders, rules and regulations inconsistent with or
contrary to the provisions of these guidelines are hereby repealed or modified accordingly.
Section 13. Effectivity - These rules shall take effect immediately upon filing with the
Office of the National Administrative Register (ONAR), and publication in two (2) national
newspapers of general circulation.
APPROVED.
(SGD.) LEANDRO R. MENDOZA
ENERGY REGULATORY COMMISSION

Resolution No. 14, s. 2008
A Resolution Requiring Practicing Members of the Bar to Indicate

In All Their Pleadings Filed Before the Energy Regulatory Commission
(ERC), the Number and Date of Issue of Their Mandatory Continuing
Legal Education (MCLE) Certificate of Compliance
or Certificate of Exemption
WHEREAS, the Supreme Court of the Philippines En Banc issued a Resolution dated
June 3, 2008 in Bar Matter No. 1922 requiring practicing members of the bar to indicate in
all their pleadings filed before the courts or quasi-judicial bodies, the number and date of
issue of their MCLE Certificate of Compliance or Certificate of Exemption, as may be
applicable, by August 25, 2008 and that failure to disclose the required information would
cause the dismissal of the case and the expunction of the pleadings from the records;
WHEREAS, the Supreme Court of the Philippines En Banc issued another Resolu-
tion dated September 2, 2008 amending the effectivity date of the implementation of Bar
Matter No. 1922 to January 1, 2009 instead of August 25, 2008.
WHEREAS, Section 38 of Republic Act No. 9136, otherwise known as the Electric
Power Industry Reform Act of 2001 or EPIRA, sanctions the creation of an independent
quasi-judicial regulatory body to be named the Energy Regulatory Commission (ERC);
WHEREAS, Section 4(o), Rule 3 of the Implementing Rules and Regulations (IRR) of
the EPIRA empowers ERC to issue such rules that are essential in the discharge of its
functions as an independent quasi-judicial body;
WHEREAS, this Resolution seeks to exact strict compliance with the said require-
ment of the Supreme Court from all practicing members of the Bar who file their pleadings
before the ERC.
NOW THEREFORE, the ERC, after thorough and due deliberation, RESOLVED, as it
hereby RESOLVES to REQUIRE practicing members of the Bar to indicate in all their
pleadings filed before the ERC, the number and date of issuance of their MCLE Certificate
of Compliance or Certificate of Exemption, as may be applicable and that non-compliance
herewith shall cause the dismissal of the case and expunction of the pleadings from the
records.
This Resolution shall take effect on January 1, 2009 following its publication in a
newspaper of general circulation in the Philippines.
Let copies of this Resolution be furnished the University of the Philippines Law-Center-
Office of the National Administrative Register (UPLC-ONAR).
(SGD.) ZENAIDA G. CRUZ-DUCUT

Chairperson
(SGD.) RAUF A. TAN (SGD.) ALEJANDRO Z. BARIN

Commissioner Commissioner
(SGD.) MARIA TERESA A.R. CASTANEDA (SGD.) JOSE C. REYES

Commissioner Commissioner
FIREARMS AND EXPLOSIVES DIVISION

Standard Operating Procedure No. 13
Licensing of Firearms
I – GENERAL
1. Purpose – This SOP prescribes the procedure to be followed in the licensing of

firearms.
2. Scope – This SOP applies to Filipino citizens only of at least 21 years of age and
good moral character; elective or appointive government officials and employees; active or
retired personnel of the Philippine National Police (PNP), Armed Forces of the Philippines
(AFP), Bureau of Jail Management and Penology (BJMP), Bureau of Fire Protection (BFP)
and Philippine Coast Guard (PCG); commissioned officers and enlisted personnel of the
Reserved Force of the AFP on inactive status; private firms, establishments or corpora-
tions; as well as government agencies or offices and government-owned or controlled
corporations.
3. References-
a. Sections 881, 887, 888, 893, 894 and 899 of the Revised Administrative Code
b. Executive Order No. 215, dtd 03 Dec 1965
c. Letter from the Executive Secretary to the Chief of Constabulary, dtd 21 Jan 1966,
clarifying Executive Order No. 215
d. Presidential General Order No. 7-8 dated 17 January 1973
e. Presidential General Order No. 7-C, dated 21 February 1973
f. Sections 3 and 6, Rules and Regulations Implementing Presidential Decree No. 1866,
dtd 29 June 1983
g. EO 256 dtd 21 December 1995 as amended and its Implementing Rules and Regula-
tions
h. Revised Rules on the Revocation of Firearms’ License dated September 11, 2006.
II – KINDS OF FIREARM LICENSES:
1. Regular License (RL) – Issued to a private individual for his personally owned firearm,
and to security agencies/company guard forces for firearms used by their security guards.
2. Long Regular License (LRL) – Issued to private firms, establishments or corporations for
firearms to be used by their employees, not to include security guards.
3. Short Regular License (SRL) – For a private employee who was issued by his employer
a firearm covered by LRL.
4. Special Permit (SP) – Issued to government officials and employees for privately owned
firearms.
5. Long Certificate of Registration (LCR) – Issued to government agencies or offices and

government-owned or controlled corporations for firearms to be used by their officials and
employees, excluding security guards.
6. Short Certificate of Registration (SCR) – For a government official or employee who was
issued by his employer a firearm covered by LCR.
III – NUMBER AND TYPE OF FIREARMS THAT MAY BE POSSESSED:
1. Each individual may hold under license a maximum of only one (1) low-powered rifle
caliber .22 or shotgun not heavier than 12 gauge and one (1) pistol or revolver, not higher
than caliber .38 except caliber .357 and caliber .22 center fire magnum and those which
may later be classified by the Chief, Philippine National Police (C, PNP) as high-powered
regardless of the type, make or caliber.
2. Officers and enlisted personnel in the active service and in the retired list of the PNP,
AFP, BJMP, BFP and PCG may hold under license a maximum of only one (1) low-
powered rifle caliber .22 or shotgun not heavier than 12 gauge and one (1) sidearm of any
type or caliber.
3. Commissioned officers and enlisted personnel in good standing of the Reserve Force of
the AFP who are on inactive status may hold under license a maximum of only one (1) low-
powered rifle caliber .22 or shotgun not heavier than 12 gauge and one (1) sidearm not
heavier than caliber .45, except caliber .357 and caliber .22 center fire magnum and those
which may later be classified by the C, PNP as high-powered regardless of the type, make
and caliber.
IV – SOURCE OF FIREARMS:
1. Firearms may be procured/purchased from the following sources:
a. Licensed firearm holder, through transfer or sale

b. Licensed firearm dealers, through purchase
c. Importation/Purchase abroad
2. If the firearm was acquired through transfer or sale from duly licensed holder, the firearm
should be delivered by the transferor/vendor to the transferee/buyer only after the latter has
secured the corresponding license.
3. The importation or purchase of firearms and ammunition abroad by individuals has been
suspended by order of the President.
V – REQUIREMENTS FOR LICENSING:
All firearm license applicants, except private firms/establishments or corporations

and government agencies or offices and government-owned or controlled corporations,
shall submit neuro-psychiatric clearance issued by any licensed psychiatrist from a PNP-
accredited Testing and Evaluation Center, Drug Test Clearance and Certificate of Atten-
dance to a gun safety seminar from the PNP or duly accredited gun clubs, or government-
accredited psychiatrist. In addition the following requirements shall be submitted:
1. FOR REGULAR LICENSE (RL)
a. PNP Form No. 2

b. Permit to purchase firearm and/or ammunition
c. Application for Firearm License
d. Information Sheet
e. Clearance from the Chief of Police and City/Municipal Court, and certificate of good
conduct from the Mayor of the City/Municipality where he resides.
f. Clearance from the Directorate for Intelligence or Regional Intelligence and Investigation
Division (RIID) of the Police Regional Office
g. For licensed security agencies/company guard forces, only a,b,c and d above will be
accomplished before submission of application to SAGSD for completion of SAGSD re-
quirements and processing of application.
h. Deed of Sale or Affidavit of Transfer, if the firearm will be acquired from a duly licensed
holder.
i. If a –
1) Businessman – Certificate of Registration of Business or Business Permit

and Income Tax Return (ITR).
2) Proprietor, Administrator or Lessee of Agricultural Land – Treasurer’s Certificate

showing the assessed value of the agricultural land. If the applicant is an
administrator or lessee, he/she shall, in addition to the Treasurer’s Certificate
mentioned above, append to the application the Power of Administration or
Contract of Lease.
3) Professional – Current Professional License and Income Tax Return
4) Official/Employee of Private Firm, Establishment or Corporation – Certificate

from the employer, duly notarized, showing the position of the applicant and his
monthly salary and Income Tax Return with BIR Form 2316.
5) U.S. Army or Navy Pensioner – Certificate or notice from the USVA as to

amount of pension being received
6) Retired Government Employee – A copy of his retirement papers and pension

award, irrespective of the amount of the pension.
7) Veteran of the AFP on CDO Status – Copy of Special Order of Separation
2. FOR LONG REGULAR LICENSE (LRL)
a. The same requirements as specified in sub-para 1a,b,c, and d above. However, the
forms should be accomplished in the name of the private firm, establishment or corpora-
tion.
b. Certificate of Registration of Business or Business Permit
c. Income Tax Return
d. Cover Letter or certificate from the owner/manager of the private firm, establishment or
corporation stating the name and designation of the official/employee who will use the
firearm (excluding security guards).
e. Clearance from the PNP Directorate for Intelligence
f. Drug Test of signatory on application
3. FOR SHORT REGULAR LICENSE (SRL)
a. The same requirement as specified in para 1a,b,c,d,e, and f above
b. Certificate from the Owner/Manager of the private firm, establishment or corporation that
the applicant is the user of the firearm applied for which is covered by LRL (excluding
security guards)
c. Copy of the LRL issued to the private firm, establishment or corporation.
4. FOR SPECIAL PERMIT (SP)
a. Permit to purchase firearm and/or ammunition
b. Information Sheet
c. Application of Firearm License
d. Deed of Sale or Affidavit of Transfer, if the firearm will be acquired through transfer from
a duly licensed holder.
e. Hereunder are the requirements for the following personnel:
Senators/Congressmen
Current Oath of Office
Official/Employees of the Senate/House of Representatives
a. Clearance from the PNP Directorate for Intelligence of RIID.
b. Copy of Appointment attested by the Civil Service Commission.
c. Certificate of Duty Status issued by the Secretary of the Senate or House of Represen-
tatives
Appointive Officials
a. Clearance from the PNP Directorate for Intelligence or RIID.
b. Copy of appointment attested by the Civil Service
c. Certificate of Duty Status issued by the Head of Office
Provincial Officials/Employees
a. Clearance from the PNP Directorate for Intelligence or RIID.
b. Copy of appointment attested by the Civil Service or Oath of Office in case of elected
officials
c. Certificate of Duty Status issued by the Head of Office.
PNP/AFP/BJMP/BFP/PCG in the Active Service
a. Copy of Order of Appointment, Commission or Enlistment.

b. Certificate of Duty Status issued by the Head of Office
Retired PNP/AFP/BJMP/BFP/PCG Personnel
a. Copy of Special Order of Retirement
b. If retired for three (3) years or more, clearance from the PNP Directorate for Intelligence
or RIID
Commissioned Officers/Enlisted Personnel in the Reserve Force on Inactive Status
a. Copy of General Order of Commission/Special Order of Enlisted
b. Clearance from the PNP Directorate for Intelligence
c. Certificate of AADT from the CO of concerned Reserve Command for Enlistment Per-
sonnel
5. FOR GOVERNMENT AGENCIES OR OFFICES AND GOVERNMENT OWNED

OR CONTROLLED CORPORATIONS APPLYING FOR LCR
a. Permit to purchase firearm and/or ammunition
b. PNP Form No. 3 – To be signed by the Department Secretary/Bureau Director or

Head of Office with equivalent rank.
d. Approved Purchase Order
e. Deed of Sale or Affidavit of Transfer, if the firearm will be acquired from a duly licensed
holder.
f. Cover Letter or certificate from the Department Secretary/Bureau Director or Head of

Office with equivalent rank stating the name and designation of the official/employee who
will use the firearm (excluding government security guards).
g. Drug Test of signatory on application form
6. FOR GOVERNMENT OFFICIALS/EMPLOYEES APPLYING FOR SCR
a. PNP Form No. 3 – To be signed by the Department Secretary/Bureau Director or

Head of Office with equivalent rank.
b. Information Sheet
d. Certificate of Duty Status from Head of Office

e. Clearance from the PNP Directorate for Intelligence or RIID

f. Copy of Appointment attested by the Civil Service or Oath of Office, in case of elective
officials
g.Certificate from the concerned government agency that applicant is the end-user of the
firearm.
VI – FILING OF APPLICATION
Application for firearm license may be filed directly to the PNP Firearms and
Explosive Division (FED) or through the Provincial/City Police Directors by the applicant
himself. Otherwise, he must append a duly accomplished and notarized authorization
form.
VII – BALLISTIC TEST AND STENCIL
1. Each firearm shall be test-fired for ballistics, and the make, caliber and serial number
shall be stenciled for record purposes.
2. For applicants in Metro Manila, the firearms shall be test-fired and stenciled by FED.
The Ballistic Test Report and Stencil Form shall be appended to the application before
processing.
3. In the provinces, the test-firing and stenciling shall be made in the Office of the Provin-
cial/City Police Director concerned. The Ballistics Test Report and Stencil Form shall be
appended to the application before same is forwarded to FED.
VIII – PROCESSING OF APPLICATION:
1. All applications to possess firearms shall be processed by FED in accordance with

existing laws, policies and regulations. After approval, the Temporary License to Possess
Firearm, shall be issued by Chief, FED PNP for Chief, PNP and shall be valid until the
issuance of the computerized license card.
2. In the case of Regular License (RL), Long Regular License (LRL), and Short Regular
License (SRL), a firearm bond to cover the penalty cost in case of loss firearm, either from
a surety company or from a duly authorized bank shall be posted by the applicant before
the Temporary License to Possess Firearm is issued.
3. Subsequently, the computerized license for new application which is good for a
period of four (4) years and two (2) years for the renewal thereof shall be renewable at
the birth month of the licensee. The license shall be renewed only upon submission by the
licensee of the following documents:
a. Affidavit that he/she has not committed any acts that will constitute a ground
for revocation of license as contained in paragraph X thereof and that the firearm
has not been involved in the commission of any crime.
b. Certificate of attendance to gun safety seminar
c. Certificate of Duty Status for government officials/employees
d. Firearm Bond
IX – LICENSE FEES:
1. The Temporary License to Possess Firearm shall be released by FED only after the
licensee has paid the annual license fees prescribed in Executive Order No. 256, as
amended, as follows:
a. Riffle Caliber .22 -P180.00
b. Shotgun (all gauges) - 210.00
c. Pistol/Revolver Caliber .22 (Ordinary) - 240.00
d. Pistol/Revolver Caliber .25; .32; .38; .380; 9mm; 7.65
6.35; and Magnum .22 rim fire - 360.00
e. Pistol/Rev Caliber .357,. 40 . 41,44,.45 Magnum .22
center fire - 400.00
f. HP Rifles - 800.00
g. License Card - 150.00
2. Since the computerized license is good for four (4) years for new application and
two (2) years for the subsequent renewal, the fees will be multiplied depending on
the number of years except for the license card which will be in the same amount.
3. In the case of SRL and SCR, the licensee need not pay the license fees, provided that
the copy of the Official Receipt of payment of the license fees made by the holder of the
LRL and LCR are attached to the application, and provided further that the license fees
paid by the latter cover the same period of validity of the SRL and SCR. The applicant,
though, has to pay for the cost of the license card.
Note: the extension of the validity of firearm license to four (4) years shall be
optional on the part of juridical entities.
X. REVOCATION/TERMINATION OF LICENSE
1.A firearm shall be revoked under any of the following causes:
a. Loss of firearm through negligence
b. Carrying of firearm outside of residence without the appropriate Permit To Carry issued
by C, PNP or his authorized representative.
c. Carrying of firearms in prohibited places.
d. Conviction by a competent court of a crime involving moral turpitude for any offense
where the penalty carries an imprisonment of more than six (6) months or a fine of at least
P1,000.00.
e. Unauthorized loan of firearm to another person.

f. If government official or employee, dismissal for cause from the government service.
g. Commission of crime where the firearm was involved.
h. Submitting/supplying false statements/information in the application form or submitting

spurious or fake documents with the application.
i. Tampering and duplicating Serial Number of Firearms Licenses.
j. Death of the licensee, or loss of Filipino citizenship, or any of the qualifications required
for licensing.
k. Pendency of a criminal complaint before the Prosecutor’s Office or case before the
court for violation of the Revised Penal Code or any special law criminal in nature and
revocation is recommended by the City Director, Provincial Director, Regional Director or
Director, CSG.
l. Other analogous cases and cases not herein mentioned that would warrant revocation of
license to ensure public order and safety.
2. Guidelines and Procedures in the Revocation of License:
a. Upon receipt of a report from the licensee of a firearm, along with the affidavit of loss, the
FED shall immediately cause the revocation of the license. Notice of revocation shall be
disseminated by the FED to all PNP operating units for record purposes. Should the
firearm be recovered, the unit or office which recovered the same shall conduct
investigation to determine whether or not the firearm while loss was used in the commis-
sion of any offense. The report and the firearm shall thereafter be forwarded to the
FED for appropriate disposition, such as whether to release the firearm to the owner
thereof under a new license or, if used in the commission of any offense, forfeit the same
in favor of the Government.
b. The death of the licensee, if unknown to the FED, shall immediately be reported by any
relative who is aware that the deceased has a licensed firearm. Upon receipt of the
information, the FED shall verify its veracity and, if accurate, shall immediately cause the
revocation of the license. If any heirs of the licensee would claim the firearm for and in his
behalf, the FED shall determine the claimant’s fitness to be a licensee of the firearm. If
not, other heirs may be considered subject to the same requirement. In all cases, how-
ever, the claim shall only be acted upon by the PNP after the appropriate settlement of the
estate of the licensee has been made. In case of loss of Filipino citizenship or of any of
the required qualifications to possess a licensed firearm, along with the report why it was
surrendered, shall be submitted to the FED for the cancellation of the license.
c. Carrying of firearms outside of residence without PTCFOR or bringing the same to

places not covered by the PTCFOR is absolutely prohibited and the violation hereof shall
ipso facto result in the cancellation of the license. For such purpose, the report submitted
by the apprehending unit or office shall serve as basis for the cancellation of the license.
Once cancelled, the firearm, if recovered shall be surrendered immediately to the FED or
police office nearest to the residence of the licensee. Upon good cause shown and sub-
ject to the discretion of the Chief, PNP or his authorized representative, the license may
be revived or, if already expired, a renewal thereof could be made subject to existing laws,
rules and regulations
d. The cancellation of firearm license of a licensee who has been convicted by the court of
a crime involving moral turpitude where the penalty imposed is imprisonment for more than
six (6) months or a fine of at least P1,000.00, or both, shall immediately be implemented
upon being furnished with a copy of the court’s decision. The fact that the licensee filed an
appeal with a higher court or was admitted to probation is of no moment and will not affect
the cancellation of the privilege. Upon the cancellation of the license, the firearm shall be
surrendered to the FED or the police office nearest to the residence of the licensee. How-
ever, if acquitted on appeal, the firearm shall be restored to its owner subject to the renewal
of his license under existing rules and regulations. The extinction of criminal liability due
to any of the causes mentioned in Article 89 of the Revised Penal Code shall not restore
the privilege.
e. Loaning of licensed firearms, whether between and among members of law enforcement
organizations, like the PNP, NBI, etc., civilian organizations, like gun clubs, regardless of
the purpose is absolutely prohibited. A licensed firearm shall, at all times, for the personal
use of the licensee only and in no case said firearm shall be used or in the possession of
another person. A licensed firearm recovered from a person other than the licensee thereof
shall immediately be confiscated and its license nullified accordingly, without prejudice to
the filing of appropriate criminal complaint as warranted by evidence. The confiscated
firearm shall be forfeited in favor of the Government regardless whether the person from
whose possession the same was recovered is held criminally liable or not. Unless the
licensee thereof is able to prove that the firearm was in the possession of another person
without his negligence or fault and he has made the appropriate report for its want and lost,
then he could apply for the recovery thereof at FEG-CSG.
f. The dismissal of a government official or employee for cause militates against his
fitness to remain a licensee of a firearm. As such, upon the rendition of a decision dis-
missing him from the government service, the cancellation of license shall also be made
regardless whether a motion for reconsideration or appeal, as the case may be, has been
filed. Hence, it is incumbent upon the licensee to immediately surrender his firearm to the
FED or the police office nearest to his residence. The fact that the licensee filed an appeal
or a motion for reconsideration of the adverse decision is of no moment and will not stay
the cancellation of the privilege. Upon the cancellation of the license, the firearm shall be
surrendered to the FED or the police office nearest to the residence of the licensee. How-
ever, if exonerated on appeal, the firearm shall be restored to its owner subject to the
renewal of his license under existing rules and regulations. The extinction of administra-
tive liability shall not result in the restoration of the privilege.
g. Where a licensed firearm had been used or involved in the commission of a crime,
whether directly or indirectly, its license shall be immediately cancelled. Thereafter, the
police unit which took custody of the firearm as evidence shall turn-over the same to the
FED if not anymore needed in any criminal proceeding. The non-filing of a criminal com-
plaint against the licensee will not bar the cancellation of the license.
h. The firearm license of a person with a pending criminal case for violation of the Revised
Penal Code or any special law shall also be cancelled. During the pendency of the case
the firearm shall remain in the custody of the court or any other authorized government
agency. Upon the dismissal of the case, the court then will turn-over the firearm to FED-
CSG. In the event, however, that the licensee is cleared by the Prosecutor’s Office or
acquitted by the court, the renewal of the license could be facilitated subject to existing
requirements for such purpose and the subject firearm will be returned to licensee.
i. The cancellation of firearm’s license shall carry with it the revocation of the PTCFOR. A
PTCFOR, on the other hand, can be cancelled for violation of any of the conditions im-
posed for its issuance or as seen fit and warranted by the Chief, PNP in the interest of
peace and order, and to ensure public safety and security.
3. Upon the death or legal disability of the holder of a firearm, it shall be the duty of
the nearest relative, legal representative or any person who shall knowingly come into
possession of such firearm or ammunition, to deliver the same to the Provincial/City Police
Director in the province or to C, FED in Metro Manila within ninety (90) days and such
firearm and ammunition shall be retained pending issuance of a license therefore in accor-
dance with law.
4. In case of the loss of a firearm held under Special Permit (SP), Certificate of
Registration (CR), or Short Certificate of Registration (SCR), it shall be the duty of the
Department Secretary/Bureau Director or Head of Office with equivalent rank to immedi-
ately notify the C, PNP thereof. It shall be his duty to require any holder of firearm under
SP, CR or SCR in his Department/Bureau or Office to surrender or otherwise account for
the firearm before the holder thereof resigns, retires, or otherwise severs his connection
with the government.
5. For holders of firearms under Short Regular License (SRL), it shall be the duty of
the employer (holder of LRL) to immediately notify the C, PNP when the firearm holder
resigns, retires, or otherwise severs his connection with the private firm, establishment or
corporation, and to immediately recall the firearm covered by the SRL.
XI - RESCISSION:
All procedures and policies not in conformity with this SOP are hereby rescinded or
modified accordingly.
XII – EFFECTIVITY
This SOP shall take effect immediately.
(SGD.) JESUS A. VERZOSA

Police Director General
Chief, PNP
GOVERNMENT PROCUREMENT POLICY BOARD

REVISED GUIDELINES FOR CONTRACT PRICE ESCALATION
1. SCOPE AND APPLICATION
1.1 These Guidelines shall govern requests for price escalation during implementation of
contracts for the procurement of goods and infrastructure projects under extraordinary
circumstances pursuant to and in accordance with Section 61 of Republic Act No. 9184
(R.A. 9184), otherwise known as “Government Procurement Reform Act” and its Imple-
menting Rules and Regulations Part A (IRR-A). No contract price escalation for consulting
services shall be allowed.
1.2 These Guidelines shall apply to all branches, constitutional commissions and offices,
agencies, departments, bureaus, offices and instrumentalities of the Government, includ-
ing government-owned and/or controlled corporations (GOCCs), government financial in-
stitutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs).
2. PURPOSE
These Guidelines are being formulated to meet the following objectives:
2.1 To prescribe the rules and regulations in the approval by the Government Procurement
Policy Board (GPPB) of request for price escalation;
2.2 To ensure that the task mandated by Section 61 of R.A. 9184 shall be undertaken
competently, objectively and expeditiously by the GPPB and the National Economic and
Development Authority (NEDA); and
2.3 To establish the legal and technical parameters for an objective determination of events
that will result to extraordinary circumstances in accordance with the Civil Code of the
Philippines.
3. DEFINITION OF TERMS
3.1 Price Escalation. Refers to an increase in the contract price during contract implemen-
tation on the basis of the existence of “extraordinary circumstances” as determined by the
NEDA and upon prior approval of the GPPB.
3.2 Extraordinary Circumstances. Refers to an event or occurrence, or series of events or

occurrences during contract implementation which give/s rise to price escalation as may
be determined by the NEDA, in accordance with the provisions of the Civil Code of the
Philippines, as enumerated in Section 4 hereof.
3.3 Extraordinary Inflation or Deflation. Refers to the decrease or increase of the purchas-
ing power of the Philippine currency which is unusual or beyond the common fluctuation in
the value of said currency, in accordance with the two (2) standard deviation rule computed
under Section 5.2.2 of these Guidelines, and such decrease or increase could not have
been reasonably foreseen or was manifestly beyond the contemplation of the parties at
the time of the establishment of the obligation.
3.4 Fortuitous Event. Refers to an occurrence or happening which could not be foreseen
or even if foreseen, is inevitable. It is necessary that the contractor or supplier is free from
negligence. Fortuitous events may be produced by two (2) general causes; (1) by nature,
such as but not limited to, earthquakes, storms, floods, epidemics, fires, and (2) by acts
of men, such as but not limited to, armed invasion, attack by bandits, governmental prohi-
bitions, robbery, provided that they have the force of an imposition which the contractor or
supplier could not have resisted.
3.5 WPI. Refers to the Wholesale Price Index, which measures the monthly changes in
the general price level of commodities, usually in large quantities, that flow into the whole-
sale trading system.
3.6 CPI. Refers to the Consumer Price Index, which measures the monthly changes in
the average retail prices of goods and services commonly purchased by a particular group
of people in a particular area.
3.7 PPI. Refers to the Producer Price Index, which measures the average change in the
unit price of a commodity as it leaves the establishment of the producer.
4. EXTRAORDINARY CIRCUMSTANCES
For purposes of these Guidelines, the Term “extraordinary circumstances” shall

refer to the following articles of the Civil Code of the Philippines:
4.1. Article 1174, as it pertains to Ordinary Fortuitous Events or those events which ordi-
narily happen or which could be reasonably foreseen but are inevitable, such as, but not
limited to the following:
a. Typhoons
b. Thunderstorms;
c. Flooding of lowly areas; and
d. Vehicular accidents;
Provided that the following requisites are present:
(i) The cause of the extraordinary circumstance must be independent of the

will of the parties;
(ii) The event must be either unforeseeable or unavoidable;
(iii) The event must be such as to render it difficult but not impossible for the
supplier or contractor to fulfill his obligation in a normal manner or within the
contemplation of the parties;
(iv) The supplier or contractor must be free from any participation in or aggravation
of the injury to the procuring entity; and
(v) The allowance for price escalation should an ordinary fortuitous event occur
is stipulated by the parties or the nature of the obligation requires the assumption
of risk.
4.2 Article 1250, as it pertains to Extraordinary Inflation or Deflation, as defined in Section

3.3 hereof.
4.3 Article 1680, as it enumerates Extraordinary Fortuitous Events or those events which
do not usually happen, such as, but not limited to the following;
a. Fire;
b. War
c. Pestilence;
d. Unusual flood;
e. Locusts; and
f. Earthquake;
Provided that the circumstances before, during and after the event shall be taken into
consideration.
5. REVIEW AND APPROVAL PROCESS
In the review and approval of a request for price escalation, the requesting procuring
entity shall comply with the following conditions before the same can be acted upon;
5.1 Endorsement. The head of the procuring entity concerned shall endorse the request
for price escalation to the NEDA, through its Director-General, accompanied by the fol-
lowing documents:
a. A certification from the head of the procuring entity stating that the request
for price escalation is justified in accordance with R.A. 9184, its IRR, and these
Guidelines;
b. A description of the Nature of the requested price escalation as well as the
identification of the specific legal and technical parameters stated in these
Guidelines that have been complied with by the request. For the technical
requirements, supporting documents shall contain information/data in accordance
with Section 5.2.2 hereof;
c. Certified copy of the original contract including the original scope of work
and the original contract price, as awarded;
d. Original cost estimates and/or bill of materials of the items, goods or
components affected by the request for price escalation and the proposed
escalated prices thereof, as applicable to the type of contract, including a
summary computation by the requesting entity of the proposed escalated prices
in accordance with Sections 5.2.2 or 5.3, as deemed applicable;
Provided however, that the procuring entity shall maintain a detailed computation of
the proposed price escalation;
e. Original and, if applicable, revised schedule of contract implementation;

f. Original request for price escalation submitted by the contractor/supplier to
the procuring entity, including information on the quantity of materials/components
and/or scope of work being proposed for price escalation;
g. Data on the price indices of the materials or goods, including the source of
data used in the detailed computation of the proposed price escalation as
referred to in item (d) above, covering a historical thirty (30)-month period
reckoned from the date of bid opening; and
h. Other information/documents as may be required by NEDA/GPPB.
5.2 Two-Stage Review Process. The review process shall commence only after the NEDA
has acknowledged the completeness of the request in accordance with this Section. A
Request for price escalation shall only be granted if it satisfies both the First and Second
Stage reviews.
5.2.1. First Stage: Legal Parameters. This stage shall establish the legal
basis for extraordinary circumstances that will allow contract price escalation.
The determination shall strictly be in accordance with any of the extraordinary
circumstances mentioned in Section 4 of these Guidelines.
5.2.2. Second Stage: Technical Parameters. After establishing the legal basis
under the First Stage review, the request for price escalation shall be further
reviewed in accordance with the technical parameters stipulated herein.
a. Standard Deviation. The escalation in the price of an item, good, or

component, as requested, should at least be two (2) standard deviations from
the mean calculated based on the historical trend of applicable price indices
covering a historical data of thirty (30)-months reckoned from the date of bid
opening. In computing for the standard deviation, the following shall be observed:
(i) The prevailing monthly price index to be used in computing the mean shall be deter-
mined based on the volatility of the price concerned. Data for a locally available good,
item, or component shall be those issued/published by the appropriate entity.
(ii) In case of an international good, item, or component wherein appropriate data is not
available from domestic sources, data shall be those issued/published by the appropriate
foreign entity.
(iii) In case of variation orders involving work items exactly the same or similar to those in
the original contract, the applicable price indices for said work items prevailing on the date
of bid opening of the original contract shall be used.
(iv) In case of variation orders involving new work items, the applicable price indices for
said new work items prevailing on the date the variation order was approved shall be used.
b. Ten Percent (10%) Increase. If there are no available historical data for
the appropriate price indices such that Section 5.2.2.a above becomes
inapplicable, the request for price escalation of an item, good or component
shall be reviewed pursuant to this section wherein the subject applicable price
index of a request should have registered an increase of more than ten percent
(10%), as determined from the prevailing price index on the date of bid opening.
In case there are no applicable price indices for the item, good, or component, the
applicable general wholesale price index shall be used.
5.2.3. Detailed Technical Parameters/Applicable Price Indices for Goods. The detailed
computation and validation of price escalation for goods as described in Section 5.2.2
above shall use the most appropriate price index of the commodity group under the three
types of price indices, WPI, CPI, and PPI; Provided that, based on availability and
applicability, the WPI for the commodity group shall first be utilized, followed by the CPI,
and lastly the PPI. The indices for commodity groups shall be those presented under
Annex A*, as classified and issued by the National Statistics Office (NSO). For an item,
good or component wherein the prevailing price index cannot be established, the review
shall be conducted utilizing the most relevant and applicable index.
5.2.4. Detailed Technical Parameters/Applicable Price Indices for Infrastructure

Projects. The detailed computation and validation of price escalation for infrastructure
projects as described in Section 5.2.2 above shall use the fluctuation factor K representing
the increase or decrease of the value of an item as a result of price fluctuation.
a. The value K varies for each time of work and is represented by the following:
K = a+ b (XI/Xo) + c (Yi/Yo) + d(Zi/Zo) +…n (Ni/No)
Where:
a = is a 0.15 fixed coefficient representing contractor’s profit, and other non-

adjustable items.
b,c,d,…n = are the coefficient representing the proportionate value of each pay
item to total. b + c + d… + n = 0.85
Xi, Yi, Zi,…Ni = are variables representing the current price indices of the cost of
labor, materials and other components of the contract during the period under consideration
at the time of the request for price escalation, based on the original or duly approved
revised schedule of contract implementation, subject to Section 8 hereof.
Xo,Yo,Zo,…No = are variables representing the current price indices of the cost of
labor, materials and other components of the contract on the date of bid opening or approval
of variation order.
The sum of a + b + x + … n must be equal to 1 (100%)
b. The fluctuation factor and its application in the parametric formula shall include,
among others, those listed in Annex B*.
5.3 Amount of Price Escalation to be Granted. After this determination, the amount of
escalation to be granted in the case of goods should only be the remaining amount over
and above the thresholds as computed under Sections 5.2.2.a or 5.2.2.b hereof. In the
case of infrastructure projects, the amount to be granted shall be determined based on the
following:
Where K>1.05, P=Po(K-0.05)

Where 0.95<K<1.05, P=Po
Where K<0.95, P=Po(K+0.05)
Where P - escalated bid/unit price

Po - original bid/unit price
K - fluctuation factor
5.4 Period and Frequency of Request for Price Escalation. Requests for price escalation
shall only be made for cost items already incurred by the contractor/supplier, as supported
by official receipts, sales invoices, or other documentary evidence. No request for price
escalation shall be made for prospective application. Further, price escalation shall only
be granted to those items included in a specific request; Provided further, that request for
price escalation shall be made not less than six (6) months reckoned from the date of the
effectivity of the contract, and not less than six (6)-month period thereafter, except for price
escalation being requested at the completion of the contract.
5.5 Misrepresentation. Any misrepresentation made by the procuring entity or the con-
tractor/supplier in any stage of the processing of a particular request for price escalation
shall cause the automatic denial/disapproval of said claim.
5.6 Recommendation/Approval. Pursuant to Section 61.2 of the IRR-A of R.A. 9184, the
burden of proving the occurrence of extraordinary circumstances that will allow for price
escalation shall rest with the procuring entity requesting for such escalation. NEDA shall
only respond to such request after receiving the necessary proof and documentation.
Upon completion of its review pursuant to Section 5.2 hereof, NEDA shall submit its rec-
ommendations to the GPPB for appropriate action. The GPPB shall then approve/act upon
the request for price escalation during one of its meetings, to be attended by the head of
the procuring entity concerned or his duly authorized representative/s.
6. REVIEW OF CONTRACT PRICES AFTER COMPLETION OF THE CONTRACT
Upon completion of the contract, the procuring entity shall calculate the amount of
price escalation supposedly due the contractor/supplier/consultant to consider likewise
any downward movement in prices during the entire contract implementation period. If the
resulting amount of price escalation is lower than the amount of price escalation already
paid, the amount of overpayment shall be deducted by the procuring entity from the retention
money, in case of infrastructure projects, or the warranty security, in case of goods on or
before its expiration.
7. AUTHORITY TO APPROVE CONTRACT PRICE ESCALATION
7.1 The head of the procuring entity shall not pay any contract price escalation until after
the GPPB has approved the claim.
7.2 The approval by the GPPB of the request for contract price escalation shall in no way
be construed as an approval or validation of any irregularity committed by the requesting
entity during the procurement process.
8. OTHER CONDITIONS FOR APPROVAL
8.1 In case the project is behind schedule based on the approved Project Evaluation
Review Technique/Critical Path Method (PERT/CPM) network or schedule, price escala-
tion on the portion of work that should have been, but was not, actually accomplished
within the period shall be based on the applicable price index for the period in which it
should have been accomplished. Payment of the computed amount shall not be made
until said unaccomplished portion of the work is completed and upon prior approval of the
GPPB and the head of the procuring entity.
8.2 Where advance payment has been made, no price escalation shall be granted for the
following:
a. That portion of work accomplished during the period corresponding to a

value equal to the amount of recoupment of advance payment; and
b. The amount of materials for which advance payment was made.
9. AMENDMENT AND ADDENDA
The GPPB may amend these Guidelines as may be necessary. Nevertheless, the
GPPB may formulate supplemental guidelines in the form of addenda or annexes for the
review process as stipulated in Section 5.2 hereof without need of amending these Guidelines.
10. TRANSITORY CLAUSE
10.1 Claims for price escalation for contracts completed after the effectivity of these
Guidelines shall be filed within two (2) years from completion of the contract concerned.
10.2 Claims for price escalation for contracts the Invitation to Apply for Eligibility and to
Bid (IAEB) for which were issued after the effectivity of R.A. 9184 and completed before the
effectivity of these Guidelines shall be filed not later than two (2) years from the date of
effectivity of these Guidelines.
10.3 The thirty (30) – month historical data prescribed in computing for two (2) standard
deviations as provided in Section 5.2.2.a shall apply to price escalation claims for con-
tracts the IAEB for which were issued after the effectivity of these Guidelines
11. EFFECTIVITY CLAUSE
These Guidelines or any amendments thereof shall take effect immediately after
publication in the Official Gazette or a newspaper of general nationwide circulation and
upon filing with the University of the Philippines Law Center of three (3) certified copies of
these Guidelines.
GOVERNMENT SERVICE INSURANCE SYSTEM

Dated Filed:31 October 2008
Resolution No. 69
GSIS New Housing Loan Program
RESOLVED, to APPROVE the GSIS New Housing Loan Program, a re-configuration

from Real Estate Mortgage (REM) to Deed of Conditional Sale (DCS) scheme, where the
GSIS shall purchase for the qualified member a residential property which the member
shall repay thru a loan availed from the GSIS.
RESOLVED FURTHER, to APPROVE the proposed Policy and Procedural Guidelines

(PPG) on the New Housing Loan Program*, a copy of which is hereto attached and made
an integral part of this Resolution.
All Orders, Circulars, Policy and Procedural Guidelines which are inconsistent herewith
are hereby superseded, modified or repealed accordingly.
The PPG shall take effect upon Board approval.
RESOLVED FINALLY, to DIRECT the Vice President (Public Affairs Office), in

Coordination with the Vice President (Business Development and Accounts Recovery
Office), to conduct an information drive regarding the New Housing Loan Program.
Adopted: 23 April 2008 (Board Meeting No. 8)
-o0o-
Resolution No. 97
Amending Board Resolution No. 48 dated March 5, 2008

Re:50% Condonation of Computed Interest on Loans
in Default as of December 31, 2007
RESOLVED to APPROVE the recommendation of the Senior Vice President (Corpo-

rate Services Group) to Amend Board Resolution No. 48 dated March 5, 2008, specifically
on the 50% condonation of computed interests on loans in default as of December 31,
2007, in favor of the decrease in interests imposed on such loans, from 18% per annum
compounded monthly to 6% per annum compounded monthly.
As amended, Board Resolution No. 48 dated March 5, 2008 shall now read as follows:
“RESOLUTION NO. 48
RESOLVED, to APPROVE the recommendations of the Senior Vice President

(Corporate Services Group) for the implementation of a condonation program
on outstanding service loans declared in default and restructuring of the remaining
balance through the consolidated loan program:
1. Proposed unilateral condonation of penalties and surcharges and interests

on service oriented loans declared in default as of December 31, 2007, as
follows:
- 100% condonation of penalties and surcharges

- Reduction of interest rates imposed on loans in default from 18% p.a.
compounded monthly to 6% p.a. compounded monthly.
*Not Filed with ONAR.

2. Restructuring of the remaining balance of the loan, after deducting the

condoned amounts through the Consolidated Loan Program
RESOLVED, FURTHER, to DIRECT the Senior Vice President (Corporate

Services Group, in coordination with the Vice President (Public Affairs Office)
to conduct an information drive regarding this program.
RESOLVED, FINALLY, to DIRECT the SVP (CSG) to submit a report to the

Board, after six (6) months, as to the impact of this program, including the
financial implication on the Funds of the Sytem.”
Adopted: 18 June 2008 (Board Meeting No. 11)
--o0o--
Resolution No. 99
Housing Loan Redemption Insurance (HLRI)

Single Premium Rate for the GSIS New
Housing Loan Program
RESOLVED, to APPROVE the recommended Housing Loan Redemption Insurance

(HLRI) Single Premium Rate for the GSIS’ New Housing Loan Program equivalent to:
Premium Rate per P 0.56

P1,000 Amount of Loan Regardless of borrower’s
age and loan term
Premium Paying Period Full Term of the Loan,

Payable Monthly
The proposed HLRI single premium rate shall be incorporated in the existing Policy
and Procedural Guidelines (PPG) of the HLRI and shall apply to prospective housing loan
borrowers under the New Housing Loan Program.
RESOLVED FINALLY, to DIRECT the Senior Vice President (Corporate Services

Group), in coordination with the Vice President (Public Affairs Office) to conduct an
information drive regarding the HLRI Single Premium Rate under the New Housing Loan
Program.
Adopted: 18 June 2008 (Board Meeting No. 11)

INSURANCE COMMISSION
Circular Letter No. 23-2008
Applicability of IC AML Circulars to Foreign Branches

and Subsidiaries
This refers to all Circular Letters (CLs) Issued by this Commission concerning the
prevention and detection of money laundering transactions within the insurance industry.
Although there were no explicit instruction in the said previously issued CLs, it should
by understood that the same shall also extend to the foreign branches and controlled
subsidiaries of the companies/associations when applicable and when there are no legal
constraints in the foreign country of operations. The companies/associations concerned
shall notify the Commission when there are legal and other constraints in complying with
this circular.
For easy reference, attached is a matrix of IC AML Circulars* issued by the Commis-
sion as of this date.
(SGD.) EDUARDO T. MALINIS

Insurance Commissioner
--o0o--
Implementation of Department Order 27-06
This is to remind all concerned of the requirement of Department Order 27-06.
It may be recalled that in view of the compliance of insurance/reinsurance companies

with the requirement in IMC 10-2006, the scheduled increases due December 31, 2007
have been deferred for a year. Hence, we reiterate that by December 31, 2008 insurance/
reinsurance companies should now comply with the increases previously scheduled for
December 31, 2007.
Adopted: 29 October 2008

--o0o--
Circular Letter 27-2008
Licensing of Insurance Agents for Accident and Health Insurance
Several request have been received by the Insurance Commission for the issuance of
a limited license for agents to sell accident and health insurance policies only. It is
observed that there are insurance companies selling or focusing their sale on accident
and/or health insurance policies. The present qualifying examination for life and non-life
agents covers all lines in the category of non-life and life insurance; thus requiring the
examinee to study and comprehend all the lines of insurance even though his/her principal
insurance company is focused on the sale of a particular line such us accident and health
insurance only.
In order to simplify the qualifying examination, the Insurance Commission authorizes

the issuance of an agent’s license limiting his transactions to “Accident and Health” insurance
only subject to the following conditions:
1. The applicant must undergo the training on accident and health insurance, whose sat-
isfactory completion shall be certified by the company to the Insurance Commission;
2. The applicant must be of good moral character, trustworthy, and must not have been
convicted of any crime involving moral turpitude; and
3. The applicant must pass the qualifying examination specifically designed for Accident
and Health insurance agents;
The application for the issuance of the limited license shall be upon forms prescribed
for the regular insurance agents and subject to the usual agent’s licensing requirements.
The license for Accident and Health shall entitle the licensee to sell or solicit insur-
ance coverage for sickness, bodily injury, or accidental death and may include benefits for
disability income. Life or non-life insurance company with an approved accident and/or
health insurance product may apply or endorse for their agents the Accident and Health
type of license.
This Circular amends all other circulars inconsistent herewith and takes effect imme-
diately.

--o0o--
Reclassification of Financial Assets
In line with the October 2008 amendments made by the International Accounting Stan-
dard Board (IASB) on IAS (PAS) 39 – Financial Instruments: Recognition and Measure-
ment and IFRS (PFRS) 7 – Financial Instruments: Disclosures, all insurance/reinsurance
companies and mutual benefit associations are allowed to reclassify their investments
strictly in accordance with the provisions of the said amendments.

INTELLECTUAL PROPERTY OFFICE

Office Order No. 180, s. 2008
Final Abandonment of Inactive Trademark Applications Listed

in Office Order No. 132, s. 2008 (01 September 2008)
Office Order No. 132, s. 2008 declared that the inactive trademark applications listed
in the order would be abandoned if the trademark applicants or trademark agents do not
communicate with the Intellectual Property Office of the Philippines (IP Philippines) signi-
fying their intention to pursue the prosecution of the applications.
The IP Philippines did not receive any communication for the trademark applications
listed below within the deadline set in the order (15 October 2008). Therefore, in accor-
dance with Office Order No. 132, s. 2008, the following applications listed below are de-
clared ABANDONED WITH FINALITY as of 28 November 2008.
Class of
Application No. Mark Date Filed Applicant Goods/
Services
4-1972-002125 EX-LAX 06/21/1972 EX-LAX 05
4-1973-024251 HABITAT 09/03/1973 LACSON & DE LANGE CO. 20
4-1973SR-2265 AMIGO LABEL 02/13/1973 GOLDMARK FOOD PRODUCTS, INC. 29, 30
4-1979-038875 SPECTRA 07/19/1979 GENTRONICS INC. 09
4-1981-044132 SUPERGA 02/27/1981 DANILO L. DOMINGO 25
4-1985-057446 VESPA 09/24/1985 MING TYAN IRON WORKS CO. LTD. 11
4-1986-058079 SLUGGER 01/06/1986 ANNA MARIE EVANGELISTA 25
AGRI PLANTERS
4-1987-062206 07/23/1987 TRANS-PHILIPPINES CORP. 01
PREMIUM
4-1989-070396 EAC\TRANSPORT 12/28/1989 THE EAST ASIATIC COMPANY LTD. A/S 39
4-1990-073644 BEER HAUSEN & DES. 10/16/1990 ASIA BREWERY, INC. 32
4-1992-083654 ROSE 12/07/1992 TITA T. TECSON 24
4-1993-084993 COUGAR 03/12/1993 ASIACRAFT, INC. 12
4-1993-084996 COUGAR CUB 03/12/1993 ASIACRAFT, INC. 12
4-1997-119903 AMIGO LABEL 04/21/1997 JBC FOOD CORPORATION 30
4-1997-121167 NIFELAN 06/03/1997 ELAN CORPORATION PLC 05
4-1997-121179 TOM YUM 06/03/1997 REGENT FOODS CORPORATION 30
4-1997-121180 TOM YUM LABEL 06/03/1997 REGENT FOODS CORPORATION 30
MAGIC AMAH WITH
MAGIC AMAH HOUSEHOLD (TAIWAN) CO.,
4-1997-125780 CHINESE 10/17/1997 05
LTD.
CHARACTERS
BASIC
4-1997-125791 CONSOLIDATED, INC. 10/20/1997 BASIC CONSOLIDATED, INC. 35
& LOGO
PATHFINDERS “WE
4-1997-127040 BUILD LIVES BY 12/04/1997 HOUSE OF REFUGE FOUNDATION, INC. 42
GIVING OURS”
JOHNNY BRAVO &
4-1999-000664 02/01/1999 THE CARTOON NETWORK INC. 16
LOGO
4-2000-001833 AERONAUT 03/09/2000 MONTRES TUDOR S.A. 14
4-2000-001836 CYBERNAUT 03/09/2000 MONTRES TUDOR S.A. 14
THE HUB BY GLOBE
4-2000-009686 11/24/2000 GLOBE TELECOM (PIE AVIOLA) 38
TELECOM
GENTXT BY GLOBE
4-2000-009688 11/24/2000 GLOBE TELECOM (PIA AVIOLA) 38
TELECOM
EXPLORE BY GLOBE
4-2000-009689 11/24/2000 GLOBE TELECOM (PIE AVIOLA) 38
TELECOM
Three (3) certified copies of this Office Order shall be filed with the University of the
Philippines Law Center, and one (1) certified copy each to the Department of Trade and
Industry, the Senate of the Philippines, the House of Representatives and The National
Library. This Office Order shall be posted immediately on the IP Philippines website.
This Office Order shall likewise be published in two (2) newspapers of general circula-
tion.
(SGD.) LENY B. RAZ
Director, Bureau of Trademarks
LAND TRANSPORTATION FRANCHISING AND REGULA-

TORY BOARD
Adoption of Taxi Sequence Numbering System in Region 7

There is a persistent clamor among the stakeholders in the taxi transportation service
for the adoption of a numbering system to insure easy identification and monitoring of
authorized taxi units.
Consistent with the mandate prescribed under Executive Order 202, particularly para-
graphs “k” and “l” thereof and in line with the best interest of the service, LTFRB 7 hereby
adopts a taxi sequence numbering system for mandatory implementation in Region 7:
1. All taxi units operating in Region 7 shall have a permanent number in accordance with
the following specifications:
A. Color – Red
Height/Vertical Length – 6 inches
Width/Horizontal Length – 3 inches
Thickness/Linear Extent (side to side) – 1 inch
B. The number shall be placed (painted or by sticker) on

B–1 middle portion left rear door
B–2 middle portion right rear door
B–3 top center portion rear/back glass
C. No other body numbers shall be allowed on B-1, B-2 and B-3 above.
2. All operators/franchise grantees shall secure from LTFRB 7 the permanent numbers
to be assigned to individual authorized units which shall be issued a confirmation
verification certificate of the number upon payment of the amount of P40.00. The
confirmation shall be carried in the unit at all times.
3. The permanent numbers are required to be in place within 30 days from the effectivity
of this Memorandum Circular.
4. Failure to comply shall be subject to the following penalties:
A. P1,000.00 per unit
B. Continued non-compliance for 30 days after the lapse of the deadline – P2,000.00
and/or suspension of units from operation.
C. In excess of 30 days after deadline – cancellation of authority including other

authorized units of offender.
D. Failure to carry confirmation:
First Offense – P500.00
2nd/3rd Offense – P1,000.00 and/or suspension for 60 days
All issuances inconsistent herewith are hereby superseded and modified accordingly.
This Memorandum Circular shall take effect 15 days following its publication in a
(SGD.) THOMPSON C. LANTION

Chairman
(SGD.) GERARDO A. PINILI (SGD.) MA. ELLEN DIRIGE-CABATU

Board Member Board Member
—o0o—
Amendment to MC 2007-040, RE: Yearly Testing

and Resealing of Taximeters
On November 20, 2007, this Board has issued Memorandum Circular 2007-040, Re:
YEARLY TESTING AND RESEALING OF TAXIMETER.
After almost a year of implementation of the said Memorandum, this Board has ob-
served that complaints for fast meter or defective meter have been increasing.
In view thereof, this Board hereby amends MC 2007-040, by reverting to the previous
rule pursuant to Section 68 of Revised Order No. 1, Re: RULES AND REGULATIONS FOR
ALL PUBLIC SERVICES, that all taximeters shall be presented to the Board (Commis-
sion) for testing and resealing twice a year, with the following period scheme:
1. Those units ending with Plate Numbers 1 and 6 shall be tested and resealed on
months of January and June depending on the middle number of the unit;
months of February and July depending on the middle number of the unit;
months of March and August depending on the middle number of the unit;
months of April and September depending on the middle number of the unit;
Months of May and October depending on the middle number of the unit;
All issuance inconsistent herewith are hereby superseded and amended accordingly.
This Memorandum Circular shall take effect immediately.

Chairman

—o0o—
Centralized Control and Supervision of

Taxi Services Within Mega Manila Area
In order to have an effective and centralize supervision and control over taxi services
within Mega Manila area, and for proper organization of records with the full implementa-
tion of the computerization program, all records of Certificates of Public Convenience to
Operate Taxi services, whether operating Air-Conditioned or Non Air-Conditioned under the
custody of LTFRB-National Capital Region shall be transferred to the LTFRB Central Office
starting November 10, 2008.
In relation thereto, pending applications/petitions, including all motions and other plead-
ings shall be completely and properly transferred by the LTFRB-NCR to the LTFRB Central
Office on or before November 30, 2008. All applications/petitions and all other pleadings
involving Taxi (Air-Conditioned/Non-Airconditioned) Services operating within the National
Capital Region should not be accepted by the LTFRB-NCR Receiving Section, and shall
exclusively be filed with the Technical Evaluation Division-Receiving Section of this Board
starting November 10, 2008. Confirmation of taxi units shall remain with the LTFRB-NCR
until November 30, 2008, thereafter, the same shall be filed with the LTFRB Central Office.
All issuances inconsistent herewith are hereby superseded and amended accord-
ingly.
This Memorandum Circular shall take effect fifteen days following its publication in a

Chairman

—o0o—
Amendment on MC 2006-043, Re: Turn Over

and Surrender of Yellow Plates
It has been observed by this Board that for hire (yellow) plates, which were already
dropped from public service as authorized are being rampantly use by operators with
unauthorized units. In order to address this problem, this Board hereby amends and modi-
fies Memorandum Circular 2006-043, Re: TURN OVER AND SURRENDER OF YELLOW
PLATES dated June 8, 2006, by directing all applicants/petitioners of dropping and substi-
tution of units to surrender the plates upon filing of the application/petition. Those appli-
cants/petitioners filing any form of petition/application involving dropping and substitution
which requires notice and hearing, may surrender the for hire (yellow) plates of the units to
be dropped at any time before the hearing, and presentation of Receipt of Return Plate is
mandatory during the submission of the formal offer of exhibits/evidence and will form part
of the same.
ingly.

Chairman

—o0o—
Amendment on MC 2004-021, Re: Petition for

Change Venue of Registration
Due to the clamor of grantees of Certificates of Public Convenience, whose place of

registration were too far or not within the principal office and/or residence of the operator,
this Board hereby amends and modifies Memorandum Circular 2004-021, Re: Petitions/
Motions for Change Venue of Registration, so as to allow change venue of registration of
grantees under justifiable circumstances to be determined by this Board, particularly if the
propose venue of registration is the place where the principal office address of the operator
is situated. Provided, however, that grantees shall register their authorized units exclu-
sively on one regional/district of Land Transportation Office for proper organization of records
and effective supervision.
ingly.


Chairman

—o0o—
Coasters as Part of the GT Express Service

Program in Visayas and Mindanao
In order to have a uniform policy in the implementation of Garage Terminal Express

Service Program, this Board hereby includes coasters under GT Express Program in
Visayas and Mindanao regions.
ingly.
This Memorandum Circular shall take effect fifteen (15) days following its publication
in a newspaper of general circulation.

Chairman

—o0o—
Opening of Applications for New CPC for Tourist Metered

Taxi Service for Mactan International Airport, Cebu City
On November 9, 2007, this Board has issued Memorandum Circular 2007-037, Re:
OPENING OF APPLICATIONS FOR NEW CPC FOR TOURIST METERED TAXI SER-
VICE FOR NAIA.
In view of the request received by Regional Office No. VII from airline passengers from
Mactan International Airport, Cebu City for the availability of transport service similar to the
Tourist Metered Taxi Services for Ninoy Aquino International Airport (NAIA), this Board
hereby supplements and modifies Memorandum Circular 2007-030, by opening for the
Applications for Issuance of New CPC to Operate Metered Taxi Service for Mactan Interna-
tional Airport, subject to the same conditions and requirements as provided for under the
said Memorandum Circular.
ingly.

Chairman

—o0o—
Lifting of Moratorium on the Acceptance of Applications/Petitions for

Issuance of a Certificate of Public Convenience to Operate a Tourist
Transport Service Within the Province of Palawan
Brief Background:
Palawan is known to be the country’s last frontier. It has managed to preserve its
fascinatingly natural habitat through the years. At present, two of the country’s bets in the
search for the “World’s New Seven Wonders of Nature” are found in Palawan – the Tubbataha
Reef National Park and the Subterranean National Park. While these two tourist destina-
tions are continuously gaining worldwide recognition, several other tourist spots in Palawan
likewise deserve the same distinction.
As of the present time, however, the demands and needs of domestic and foreign
tourists for public land transportation which will bring them to the different scenic spots in
Palawan are not properly addressed. Thus, there is the continued proliferation of colorum’s
operation.
The local officials of the City of Puerto Princesa and the Province of Palawan have
made proper representations to this Board to look into the matter of the public land trans-
port system which would take into full account the welfare, safety and convenience of
foreign and domestic tourists in Palawan and in furtherance of the national government’s
total effort to boost the local tourism industry.
Policy Issuances:
The Board issued Memorandum Circular No. 2003-028 imposing a nationwide morato-
rium on the acceptance of applications/petitions for the issuance of new franchises, ex-
cept Trucks-for-Hire services.
The Board issued Memorandum Circular No. 2008-009 dated 13 May 2008 simplifying
the classification of Tourist Transport Services into the following: Tourist Bus Transport
Services, Tourist Car Transport Services and Tourist Air-conditioned Jeep Transport Ser-
vices.
Pursuant to Section 5.b of Executive Order No. 202 dated 19 June 1987, the Board is
empowered to issue certificates of public convenience or permits authorizing the operation
of public land transportation services provided by motorized vehicles and to prescribe the
appropriate terms and conditions therefor.
THE BOARD RESOLVES, AS IT IS HEREBY RESOLVED, in coordination and coop-

eration with the local government unit concerned, to LIFT the moratorium on the accep-
tance of applications/petitions for new franchises under the new categories/classifications
of Tourist Transport Services (MC No. 2008-009) in the entire Province of Palawan, subject
to the following terms and conditions:
a. Submission of endorsement and/or accreditation from the City or Provincial Tourism
Offices;
b. The vehicle must pass the LTO, MVIS and PETC for roadworthiness and emission
standards, respectively.
c. The vehicle must have a communication device on-board at all times for dispatching,
emergency and tourist spots information;
d. The vehicle must be equipped with a fire extinguisher, first-aid/medical kit and waste
disposal bin;
e. The vehicle must have the proper markings of a tourist transport vehicle and other
markings required by the Board such as: case number, vehicle denomination, LTFRB
hotline numbers for complaints, etc.;
f. The vehicle shall not be more than fifteen (15) years old, subject however to the Board’s
existing policy on the preservation of the five-year period of the certificate of public
convenience;
g. The vehicle owner/operator shall be responsible in coordinating with the management

of the tourist destinations for the setting-up of terminals and/or loading and unloading
areas which shall at least be in compliance with LTFRB standards; and
h. The drivers and tour guides shall undergo the necessary training and shall be duly
accredited by the Tourism Offices of the city and/or provincial government.
All applications/petitions for issuance of new certificates of public convenience to

operate Tourist Transport Services within the Province of Palawan shall be received, pro-
cessed, evaluated and heard by a Special Project Task Force which shall hold Office in
Puerto Princesa City. The acceptance of applications shall only be for a period of THREE
(3) MONTHS from the date of effectivity of this memorandum circular.
Pending approval by the Board of the application/petition for issuance of a Certificate

of Public Convenience, the Board, through the Regional Director of LTFRB-Region IV, may
issue a Provisional Authority (PA) for the operation of a tourist transport service. The Pro-
visional Authority shall only be valid for a period of THREE (3) MONTHS and renewable for
the same period. The application/s for issuance of PA must be accompanied by a Certifi-
cate of Cover for Passenger Accident Insurance and Third-Party Liability Insurance duly
issued by the Board’s accredited insurance consortia/companies.
The fare rates shall be regulated by the Board and shall not be increased or decreased
without its prior approval. The corresponding fare matrix shall be issued and must be
conspicuously posted inside the tourist transport vehicle.
In addition to the regular fees and charges relative to the filing of a petition/application
for issuance of a new certificate of public convenience, the Board shall charge a legaliza-
tion fee in the amount of TEN THOUSAND PESOS (P10,000.00) per unit.
This Memorandum Circular supersedes any and all issuances inconsistent herewith
and shall be effective fifteen (15) days after its publication in a newspaper of general circu-
lation or in the Official Gazette.

Chairman

—o0o—
Acceptance of Applications/Petitions for New Certificates of

Public Convenience (CPCs) for Liquefied Petroleum Gas (LPG)
Fed Engine Air-Conditioned Public Utility Buses (PUBs)
Pursuant to Department Order 2005-010, Re: POLICY GUIDELINES ON THE EXER-

CISE OF AUTHORITY AND FUNCTIONS BY THE LAND TRANSPORTATION FRANCHIS-
ING AND REGULATORY BOARD, wherein this Board can now amend or modify, in part or
in its entirety, existing Department Order/s previously issued by DOTC governing the pow-
ers and functions of this Board, and in support of the Philippine Clean Air Act to promote an
environment friendly transportation service, and in support for the promotion of alternative
fuel fed engine that will redound to the benefit of the riding public, this Board will accept for
filing, on experimental basis. Applications for Certificate of Public Convenience to Operate
Liquefied Petroleum Gas (LPG) Fed Engine Public Utility Buses, for limited number of
units not to exceed ten (10), and subject to the sound discretion of this Board, and RMC
allocation on the proposed route of operations.
ingly.

Chairman

—o0o—
Modifications on MC 2005-039, Re: Full Implementation of MC 2003-020

(Directive for a Uniform Pertinent Data Printed on the Receipt of
Taximeters) with Modifications
In view of the Resolution of the High Court dated April 22, 2008, which denied the
Petition for Review on Certiorari filed by PNTOA, Et. Al., assailing the decision of the Court
of Appeals in the case of Philippine National Taxi Operators Association (PNTOA), Et. Al.
vs. Land Transportation Franchising and Regulatory Board promulgated on August 15,
2007, this Board resolves to implement Memorandum Circular 2005-039, RE: FULL IMPLE-
MENTATION OF MC 2003-020 (DIRECTIVE FOR A UNIFORM PERTINENT DATA PRINTED
ON THE RECEIPT OF TAXIMETERS). Thus, this Board hereby reiterates the following
data with modifications thereto that should appear on the receipt of the taxi meter, to wit:
Name of Operator
Business Name
Address
Telephone Number
Tax Identification Number
Plate Number
Date
Start
End
Distance
Waiting
Fare in Philippine Peso
Name of Driver on Duty
However, as a modification with MC 2005-039 this Board will temporarily allow previ-
ously used printer for issuing receipt and manual issuance of receipt duly registered with
the Bureau of Internal Revenue, as an alternative to the meter with receipt or taxi meter
issuing receipt, but only for a period of one (1) year from date of issuance hereof.
However, Tourist Metered Taxi Services or those operating from Ninoy Aquino Interna-
tional Airport terminals are strictly required to use taxi meter issuing receipt.
For gradual implementation of this Memorandum Circular, inspection of compliance

with this shall coincide on the testing and resealing date of the units. No units shall be
tested and resealed unless compliance herewith is fully complied with.
Failure to comply with this Memorandum Circular shall be subject to fine of P2,500.00/
apprehension.
ingly.
This Memorandum Circular shall take effect on January 1, 2009.

Chairman

—o0o—
Amendment on MC 2005-005, re: Penalty for

Non Compliance with MC 88-017
Due to the present economic condition and financial crisis affecting public land trans-
portation sector, this Board hereby amends MC 2005-005, Re: PENALTY FOR NON COM-
PLIANCE WITH MC 88-017, and reduces the penalty as imposed by this Board which rate
shall now be:
* The penalty for late filing of inventory of units in the amount of P500.00 per month per
unit shall now be reduced to FIVE HUNDRED PESOS (P500.00) PER MONTH
regardless of the number of units;
* All affected operators with outstanding penalties for inventory of units as of the
effectivity of this Memorandum Circular are given, by way of amnesty, fifty percent
(50%) discount on accrued penalties based on this Memorandum, provided, the
same are settled or paid on or before December 15, 2008.
* For uniform standard of collection, and to avoid confusion as to the interpretation as

to the reckoning point of the imposition of penalty, the period of reckoning for the
start of imposition of penalty for non compliance with MC 88-017 shall be 2007.
ingly.
This Memorandum Circular shall take effect fifteen (15) days following its publication
in a newspaper of general circulation or in Official Gazette.

Chairman

—o0o—
Opening of CPC to Operate Taxicab Service Within

Iloilo City to Any Point in Panay Island
Due to the urgent request of Taxi Operators in Iloilo City to replace numerous taxicab
units that were damaged by Typhoon Frank and consistent to the agency’s mandate to
provide adequate, safe, convenient and upgraded Taxi Service that is fuel-efficient and
environment friendly, this Board, hereby partially lifts the moratorium on application for
issuance of CPC to operate Taxi Airconditioned Service within Iloilo City to any point of
Panay Island, subject to the following terms and conditions:
1. The units proposed to be authorized should all be brand-new and LPG Fed Engines;
2. The units proposed to be authorized should be equipped with Taxi Meter Issuing Receipt,
Two-way Radio System and Top Light;
3. The units proposed to be authorized should not exceed One Hundred Fifty (150) units
or correspondingly equivalent to the actual number of units rendered unroadworthy as
determined by the Regional Office;
4. The application should be received on a “First-Come-First-Serve Basis” with priority,

however, to existing operators;
5. For transparency and proper notice, the Regional Director is hereby directed to publish
aforesaid Memorandum Circular in a newspaper of general circulation in the Region
and the same shall take effect ten (10) days thereafter.
All issuances inconsistent herewith are hereby suspended and amended accordingly.


Chairman

—o0o—
Consolidated Order, Re: Provisional Authority to Reduce Fare Rates
CASE NOS. 2008-1654/2008-0692
NATIONAL COUNCIL FOR

COMMUTERS PROTECTION, INC.,
Petitioner.
x————————————————x
CONSOLIDATED ORDER
It is a legal truism set forth by the Supreme Court years ago that “the Commission
(now, this Board) considers that public service cases are partly commercial in nature, not
purely judicial and therefore, the time factor should be taken into account” (Javellana vs. La
Paz Ice Plant Cold Storage, 64 Phil. 893). It is further a truism that this Board, as a
regulatory body would have abdicated its fundamental duty, it does not respond with dis-
patch to the exigencies and current demands of the community in the area of public utility
regulation. Hence, aside from the power to issue franchises for public land transportation
service and the power to regulate the operation of the same, this Board has this equally
important power of transport fare determination and/or adjustments as the occasion so
warrants.
In the matter of the volatile fluctuations in the prices of oil at present in the world
market, this Board has responded to the demands of fare adjustments. In the middle of
this year, when said oil prices climbed to as much as almost $150.00 per barrel in the
world market, this Board authorized upward adjustment of fares. This had to be done to
enable transport operators to maintain their viability since it would ultimately result to
public detriment if they stopped operations due to continuing losses. On the other hand,
when the prices of oil in the world market started to tumble from almost $150.00 to about
$50.00 per barrel, this Board did not hesitate to provisionally authorized reduction of fare
as per Order dated November 4, 2008. Now, the prices of oil per barrel continue to plummet
so much so that there is again a pronounced clamor for further reduction of transport fares
to reflect this trend.
This Board cannot shirk from its bounded task and responsibility. While, this Board,
as a regulatory agency, have in mind the interest and concerns of public land transport
operators, it should be more mindful of its mandate that “their primary purpose is to serve
the interest of the public and are for the benefit of the state and its citizen” (73B CJS 294).
And then too, this Board has also in minds the following Supreme Court ruling “x x x In the
exercise of its Authority, the Commission’s (now, this Board’s) first consideration is public
interest and convenience” (In Re: Gregorio, 77 Phil 906). The action undertaken by this
Board in light of this new reduction of oil prices is in pursuance of this consideration.
Prompted by the series of rollbacks the past few weeks for all oil prices by indepen-
dent oil players as well as the so called “Big 3”, this Board is now constrained to issue this
Order after weighing the rights of public land transport operators vis-à-vis the interest of the
public in general, which is of paramount importance. This is in connection with the Order
dated November 4, 2008, granting the Urgent Petition for Issuance of Provisional Reduc-
tion of Fare for PUJ and PUB services, and the basic petition for reduction for PUB and
PUJ, and Petition for Reduction of Fares for Taxi services filed on November 12, 2008,
which are now pending and was set for hearing on December 3, 2008.
In the previous Order granting the provisional reduction of fare for PUJ and PUB ser-
vices, the rationale of the reduction was the sudden and dramatic drop of oil prices in the
world market from the insurmountable amount of almost $150 per barrel to the most wel-
come low of over $50 per barrel of Dubai crude which is the basis for international pricing.
This single factor alone has a far reaching impact upon the prices of oil and other oil
products in the domestic market as well as upon transport fares.
After a month of implementation of the provisional reduction of fares, another roll back
was initiated by independent oil firm Eastern Petroleum by two pesos (P2.00)/liter for
gasoline, and one peso (P1.00)/liter for diesel. The recent rollback brought down the price
of Eastern diesel to P35.98 per liter. A total of P23.00 has been deducted from its peak
level of P58.00 per liter last July. Other oil players, independent and the big three included
are expected and likely to follow.
In the world market, the slumping demand in the face of a global economy downturn
has sent prices crashing by about two-thirds from record highs above $147.00 a barrel just
four months ago. It was principally due to the serious deterioration in the world economy
and its serious consequence on the oil price. According to OPEC, the prices will not begin
to rise before the second half of 2009 (Philippine Star, December 2, 2008).
Thus, this Board, taking into proper account and consideration the authorities men-
tioned above and all the circumstances and incidents that transpired in local and world
economy/market, has resolved to issue this Consolidated Order supplementing the Order
dated November 4, 2008, granting provisional fare reduction for PUB and PUJ Services,
and now also to Taxi Services.
This is a most anticipated development for our people who have been reeling from the
economically debilitating almost weekly oil price increases a few months ago. This Board
being a regulatory agency for the people is duty bound to act accordingly by immediately
ordering the downward adjustment of fare rates especially when so warranted by favorable
events in the world market. This will redound to public need and convenience which is of
paramount consideration and in consonance of the time honored principle of “Salus Populi
Est Suprema Lex”.
Sec. 16, c) of the Public Service Act, as amended or Com Act No. 146, as amended,
provides:
“That the Commission may, in its discretion, approve rates proposed by

public services provisionally and without necessity of hearing; but it shall
call a hearing thereon within thirty (30) days thereafter, upon publication
and notice to the concerns operating in the territory affected x x”
If the Board has the power under the above provision to authorize provisionally up-
wards adjustment of rates, it can also do so to authorize provisional reduction thereof,
especially when this urgently warranted. As the High Court held in a reduction of rate case:
“The duty which the court (or this Board) owes to the public is not less than that
which it owes to the carriers” (Manila Railroad CO. vs A L Ammen Trans. Co. Inc. 48
Phil. 900; 1926).
WHEREFORE, in view of the foregoing premises, this Board hereby imposes provi-
sional reduction of fare rates supplementing the previous Order dated November 4, 2008,
and incorporating therein provisional reduction for taxi services, under the following terms
and conditions:
1. Public Utility Jitneys (PUJ) operating within the Mega Manila, Regions III (Central
Luzon) and IV (Southern Luzon) are provisionally authorized to reduce fare in
the amount of fifty centavos from the previous provisional fare of P8.00 to
P7.50 for the first four (4) kilometers, and from P1.50 to P1.40 for the succeeding
kilometer/s. Thus, resulting in the provisionally authorized fare of P7.50 for the first
four (4) kilometers and P1.40 for every succeeding kilometer/s.
2. For Public Utility Jitney (PUJ) Services in all other regions, the provisional fare
reduction of fifty centavos (P.50) shall be deducted to their present provisional
fare rate for the first four (4) kilometers/first five (5) kilometers, and the ten
centavos (P.10) shall be deducted for every succeeding kilometer/s. Fare
Reduction for PUJ shall be effective nationwide.
3. Public Utility Bus (PUB) Regular/Ordinary Services operating within the Mega Manila
area, Regions III (Central Luzon) and IV (Southern Luzon) are provisionally authorized
to reduce fare in the amount of fifty centavos (P.50) from the previous provisional
fare of P9.50 to P9.00 for the first five (5) kilometers, and from P1.95 to P1.85 for
the succeeding kilometer/s. Thus, resulting in the provisionally authorized fare of
P9.00 for the first five (5) kilometers, and P1.85 for the succeeding kilometer/s.
4. Public Utility Bus (PUB) Air-Conditioned Service operating within the Mega Manila,
Regions III (Central Luzon) and IV (Southern Luzon) are provisionally authorized to
reduce fare in the amount of fifteen centavos for the succeeding kilometer/s
or from P2.35 to P2.20, the provisionally authorized fare of P11.00 shall remain.
Thus, resulting in the provisionally authorized fare of P11.00 for the first five (5)
kilometers, and P2.20 for the succeeding kilometer/s.
5. In the case of Provincial Public Utility Buses (Regular), the provisional reduced fare
of eight pesos and fifty centavos (P8.50) for the first five (5) kilometers for PUB
Ordinary Buses shall remain, and a reduction of five centavos (P.05) for every
succeeding kilometer/s or from P1.40 to P1.35 for every succeeding kilometer/
s, thus resulting in the provisionally authorized fare of P8.50 for the first five (5)
kilometers and P1.35 for every succeeding kilometer/s.
6. For Provincial Public Utility Buses (Air-Conditioned), the provisional reduction

of P.05 for every kilometer shall be imposed. Thus resulting in the provisional fare
as follows:
Regular Air-Conditioned Bus - P1.55/km

Deluxe Air-Con Bus - P1.65/km
Super Deluxe Air-Con Bus - P1.75/km
Luxury Air-Con Bus - P2.20/km
7. Fare Reduction for PUB Services shall be effective nationwide.
8. Taxi services operating nationwide are provisionally authorized to reduced the taxi fare
rates by ten pesos (P10.00) or by omitting the P10.00 add on to the flag rate;
9. All Public Utility Bus (PUB) and Public Utility Jitney (PUJ) services are directed to
grant to qualified senior citizens utilizing their services a fare discount of not less than
20% of the provisionally reduced fares upon presentation of their senior citizen
identification card.
10. Students are entitled to a student fare discount for PUB and PUJ services of not less
than 20% of the provisionally adjusted fares EVERYDAY, during school days, upon
presentation of their ID cards or registration cards, both duly validated by their schools,
bearing their pictures with their names and schools indicated therein.
11. The fare discount of not less than 20% of the provisionally adjusted fares shall also
apply to disabled persons.
12. No payment for Adjustment of Rate and revision of Fare Matrix shall be imposed and/
or collected.
13. In the imposition of the provisional fare, grantees of Certificate/s of Public Convenience
concerned shall comply with the rules and regulations of the Board, the provisions of
the Public Service Law (C.A. 146) as amended, and also the requirements for public
transport services.
14. The PROVISIONAL AUTHORITY to Reduce Fare Rates shall be effective starting
DECEMBER 15, 2008 until March 15, 2009, without prejudice to the operator/driver
implementing the fare reduction immediately, or until full and final disposition of the
above Petition for Fare Reduction, or unless modified/revoked and/or cancelled by the
Board.
Let a copy of this Order be published in a newspaper of general circulation for proper
information dissemination.
SO ORDERED.

Chairman

—o0o—
Mandatory Posting of Fare Guide, and Reiteration of

Imposition of Penalties for Overcharging/Undercharging and/or
Collection of Unauthorized Fares or Rates
With the recent issuance of the Consolidated Order dated December 4, 2008, provi-
sionally reducing fare rates for PUB, PUJ, and Taxi services, wherein no fare matrix will be
issued, and instead fare guide shall be distributed by this Board for proper guidance and
for protection of the riding public, this Board hereby adopts pertinent portions of Memoran-
dum Circular No. 2005-024, Re: MANDATORY DISPLAY OF FARE MATRIX AND PEN-
ALTIES FOR NON COMPLIANCE THEREOF, for the posting of fare guide together with
the fare matrix issued, to wit:
“Accordingly, any operator found violating the MANDATORY DISPLAY

OF FARE GUIDE SIDE BY SIDE WITH FARE MATRIX DULY ISSUED BY THIS
BOARD shall be subject to the following penalties:
No Fare Guide and Fare Matrix Displayed
First Offense - PhP 500.00

Second Offense - PhP 1,500.00
Third Offense - Cancellation of CPC
On the matter of overcharging, undercharging and collection of unauthorized fares or

rates, this Board hereby reiterates and modifies Memorandum Circular 2007-005, Re:
SCALE OF FINES AND PENALTIES, to wit:
“Overcharging/Undercharging or collecting unauthorized fares or rates
First Offense - PhP 3,000.00

Second Offense - PhP 4,000.00
Third Offense - PhP 5,000.00
Fourth Offense - PhP Suspension of CPC
Fifth Offense - Cancellation of Franchise
ingly.


Chairman

—o0o—
Amendment and Supplement to MC 2004-043
This Board hereby amends and modifies pertinent portion MC 2004-043, Re: ORDER
FOR ALL OWNERS/OPERATORS OF PRIVATE VEHICLES CLASSIFIED AS TRUCK,
ALUMINUM VAN OR CALLED BY OTHER NAME/S OR HAS OTHER CONFIGURATION,
EXCEPT TRICYCLES REGISTERED WITH THE LTO WHICH ARE BEING USED FOR
HAULING PURPOSES TO SECURE A CERTIFICATE OF PUBLIC CONVENIENCE TO
OPERATE A TRUCK FOR HIRE SERVICE FROM LTFRB, by removing therein the sixty
(60) day period from effectivity thereof within which to file Application for Exemption. Thus,
this Board now allows for filing acceptance for application/petition for exemption pursuant
to aforesaid Memorandum Circular.
Further, as supplement to the said Memorandum Circular and in order to ensure that
those granted with Order for Exemption to Operate Truck for Hire are operating their units
exclusively in the furtherance of their business pursuant to Memorandum Circular 2004-
043, all Orders for Exemption to be issued shall be valid and subsisting for a period of one
(1) year from issuance thereof, while those issued are likewise given similar one (1) year
period, without prejudice to them filing another Application/Petitions for Exemption for
every year, and fully satisfying the requirements provided for by existing Memorandum
Circular/s.
ingly.

Chairman

—o0o—

Prohibition on the Use of Unauthorized Trade Name and Requiring

Mandatory Inspection of Proposed Units to be Authorized
It has been observed by this Board that sufficient number of authorized units, particu-
larly of Public Utility Buses (PUBs) and Taxi Services have been operating under trade/
business name not authorized to the holder/grantee of Certificate of Public Convenience
creating confusion to the riding public.
There are likewise public utility vehicles using trade name under “operated by” notice
without approval and consent of the Board.
In order to rectify the same, this Board resolves to mandate all applicants of new
franchises, and those who have filed all forms of applications/petitions involving dropping
and substitution of units or registration in lieu of, to subject the units proposed to be
authorized as for hire for actual inspection prior to confirmation, to be conducted by per-
sonnel of the Legal Division. Otherwise, confirmation of the units shall be disallowed.
The use of trade/business name under “operated by” notice is not allowed.
Likewise, the Land Transportation Office is directed not to register all units, whose
trade/business name is/are different or not authorized from the holder/grantee of franchise
starting January 1, 2009. Those who/which have no business/trade name are given until
December 31, 2008 to apply for approval of the same by this Board. Public Utility opera-
tors with authorized units bearing unauthorized trade or under “operated by” notice are
likewise ordered to make the necessary corrections of their trade names.
All applicants/vendees or those who/which have bought Certificates of Public Conve-

nience are not allowed to use their trade/business name until and unless application for
approval of sale and transfer has been approved by this Board.
Failure to comply with this Memorandum Circular shall be subject to the following
scale of penalties:
1st Offense - PhP3,000.00

2nd Offense - PhP5,000.00
3rd Offense - Suspension of thirty (30) days of CPC
4th Offense - Cancellation of CPC
ingly.
Chairman

—o0o—
Additional Requirement to be Presented During the Hearing of

All Forms of Applications for Corporations and Cooperatives
As an additional requirement to establish financial capacity, all applicants which are

juridical entity, regardless of the nature of application are hereby required to submit as part
of the formal offer of evidence, Certificate of Good Standing from Securities and Exchange
Commission (SEC), if the applicant is a corporation or partnership, and Certificate of
Good Standing from Cooperative Development Authority (CDA) and/or Office of the Trans-
port Cooperative (OTC), if the applicant is a cooperative.
ingly.

Chairman

—o0o—
Removal of Power Locks and Windows System for Taxi Services,

and Reiteration of Use of Coin Box
Acting on the reports of taxi passengers against discourteous taxi drivers, and to
protect the public from dangerous incidents involving drivers of taxi services and its pas-
sengers, this Board hereby orders all holders of Certificate of Public Convenience to oper-
ate Taxi Air-Conditioned services with power locks and power windows system to remove
the same, and shall adopt a manual locking and manual window riser system.
However, as an alternative, operators concerned, may opt not to remove the power
locks system and windows system provided however, that they should defuse control of
the power locks and windows system at the front and back passenger seats.
Further, for easy identification of the taxi units, instead of painting the name of opera-
tor, business name and telephone number, sticker should now be posted inside the front
and back doors of the unit/s.
It is likewise reiterated that all taxi units must have a coin transparent box to put in
loose change to be located beside the gear stick or in any conspicuous place very visible
to the passenger;
ingly.
Chairman

LAND TRANSPORTATION OFFICE
Memorandum Circular No. AHS-2008-1029
Amended Criteria in the Evaluation of Accredited Physician’s Performance
In compliance to the requirement of ISO 9000-2001 and in line with the objective of the
office for a continuous, effective and efficient public service, Memorandum Circular No.
RIB-2007-889 dated 10 October 2007 is hereby amended. The following are the estab-
lished criteria in monitoring the performance of LTO Accredited Physicians, to wit:
Violations pursuant to Administrative Order No. RIB-2007-012
1. Issues pre-signed medical certificate in the clinic. – 30%
2. Allowing other person/physician to conduct the required medical examination. – 30%
3. Recommending issuance of a professional driver’s license to a person with disability.

– 10%
4. Failure of the physician to hold clinic within the same municipality or city of the Licensing
Center/Agency where he is accredited. 2%
5. Issuing medical certificate in spite of an expired Accreditation Certificate. – 2%

6. Overcharging of professional fee for medical certificate issued to driver’s license

applicants. – 2%
7. Failure to secure permission/approval to transfer his clinic from the Regional Committee
on Accreditation of Physicians. – 2%
8. Non-compliance with the prescribed form in the issuance of medical certificate per
Administrative Order No. RIB-2007-012 dated 17 May 2007. – 2%
9. Improper accomplishment of the medical certificate in accordance to prescribed form

per Administrative Order No. RIB-2007-012 dated 17 May 2007. – 2%
10. Failure to submit report to the Regional Committee on Accreditation of Physicians

within fifteen (15) days at the end of every month, copy furnished LTO Central Office
Accreditation Committee. – 2%
11. Failure to file leave of absence within ten (10) days prior to his proposed leave to the
District Office, Regional and Central Office Committee on Accreditation. – 2%
12. Failure to indicate in the medical certificate the limitations/conditions of the applicant.
– 2%
13. Complaints received by the office in relation to his performance as accredited physician.
– 2%
14. Incomplete/Absence of medical equipments (Snellen’s chart, Ishihara plate, Blood

Pressure apparatus, height and weighing scale) found upon inspection as called for
Administrative Order No. RIB-2007-012 dated 17 May 2007. – 5%
15. Failure to display the accredited physician’s valid Accreditation certificate with recent
photograph. – 5%
Explanatory Notes:
Each of the violations listed above has a corresponding percentage of merit/demerit

points. The accredited physician who was found to have committed an offense shall be
given the corresponding demerit points. If not found to have violated an offense, the corre-
sponding percentage shall be credited as the equivalent merit point.
The highest possible performance rating is 100%.
An accredited physician who garnered a total merit points below seventy (70) percent
do not meet the required performance evaluation criteria as LTO Accredited physician and
shall be a ground for revocation/cancellation of accreditation.
The Regional Committee on Accreditation of Physicians are hereby required to submit

quarterly evaluation report to the Chairman, Central Office Committee on Accreditation of
Physicians, copy furnished to the accredited physician in their own respective areas.
It is understood that the herein performance evaluation report shall form part in the
renewal of application for accreditation.
(SGD.) ALBERTO H. SUANSING

Assistant Secretary
—o0o—
Initial Registration of Foton Pick-Ups and Light Trucks
Reports have reached this office that there are District/Extension Offices who refused
to accept the initial registration of Foton Pick-Ups and Light Trucks imported into the
country by the United Asia Automotive Group, Inc. (UAAGI), and LTO accredited importer
and dealer thru Subic Bay Freeport Zone (SBMA) unless a Certificate of Compliance to
Emission Standards (CCES) is submitted.
The CCES is a requirement in the registration of used imported and rebuilt motor
vehicles pursuant to LTO Memorandum dated 10 July 2001 and RIB-2007-820 dated
02 March 2007. The Foton Pick-Ups and Light Trucks are imported brand new motor
vehicles which requires Certificate of Conformity (COC) issued by the DENR in order to
be registered.
Since the UAAGI, an accredited importer/dealer was already issued a Certificate of

Conformity No. 07-1235 issued by the DENR pursuant to Sec. 22 Chapter II of R.A. 8749
(Clean Air Act of 1999) in relation to Part IX, Rule XXXI of DENR AO 2000-81, Memorandum
Circular No. AHS-2008-937 dated 21 February 2008 shall apply and quoted hereunder:
“The initial registration of imported motor vehicles except those motor vehicles im-
ported pursuant to the Motor Vehicle Development Program (MVDP), shall be done at the
LTO District Office in the region nearest the BOC Port of Entry per MC No. AHS-2008-929
dated 06 February 2008 or in any of the four district offices in the NCR authorized to
initially register imported motor vehicles except exempt motor vehicles which is central-
ized at Diliman District Office. The four district offices in the NCR authorized to initially
register imported motor vehicles are: Diliman, Pasay, Caloocan and Quezon City District
Offices.”
It is understood however, that all the mandatory supporting documents in the registra-
tion of imported brand new motor vehicles shall be strictly complied.
Any official or employee found violating this memorandum circular shall be subject to
disciplinary action in accordance with existing office and Civil Service rules and regula-
tions.
All orders, circulars and memoranda which are in conflict herewith are hereby deemed
superseded.

Assistant Secretary
—o0o—
Memorandum Order No. AHS-2008-01
Revised Rules and Regulations for the Use and Operation

of Motorcycles on Highways
After a series of public consultations with stakeholders the following revisions of Ad-
ministrative Order No. AHS-2008-15 are hereby promulgated for the observance of all con-
cerned:
1. A licensed operator of a motorcycle or scooter shall be referred to as “rider.”
2. Horn, brake, side mirror, headlight and turn signals are not accessories but are basic
and vital parts of a motorcycle or scooter.
3. Section VI of AHS-2008-15 shall read thus:
“Sec. VI. Only one (1) back rider shall be allowed on a motorcycle or scooter who
must be provided with a seat and foot rest.
The motorcycle or scooter shall not carry a cargo, the width of which is more than
2 ft. from the side of the motorcycle and the height shall not be higher than the
height of the rider when seated on the motorcycle.”
4. The aforecited provision allowing only one back rider shall be mandatory only along
national and highly urbanized city roads while awaiting the result of the study on its
applicability along municipal and barangay roads, based on the classification of roads
and travel demand.
5. Section XI a) of AHS-2008-15 shall read thus:
“Sec. XI a) For failure of rider and/or back rider to wear helmet, a fine of One
Thousand Five Hundred Pesos (P1,500.00) with accessory penalty of driver/rider
attending a seminar on traffic safety management to be conducted by the LTO.”
6. There shall be a five-year moratorium imposed on the mandatory use of prescribed

standard helmet effective September 30, 2008.
7. Implementation of paragraph 3, Section 8 of AO No. AHS-2008-015 requiring prior

approval of the LTO and the DTI in modifying original standard design of a motorcycle
or scooter is hereby suspended, together with Section 11d thereof.
8. Wearing ordinary closed shoes while operating motorcycle shall not be penalized.
9. All previous orders and issuances inconsistent herewith are deemed revoked and
superseded.
For guidance and strict compliance.

Assistant Secretary
—o0o—
Department Order No. 2008-38
Revised Schedule of LTO Administrative Fees and Charges

on Driver’s License/Conductor’s Permit
In compliance with Executive Order No. 218 dated 15 March 2000 as implemented by
DOF-DBM Joint Circular 2000-2 dated 04 April 2000 the following revised schedule of LTO
administrative fees and charges on Driver’s License revising DOTC Department Order No.
93-693, are hereby approved for implementation:
Fees and Charges Approved Rates
I. Issuance of Driver’s License/Conductor’s Permit
1. Professional (renewable every three years) P 350.00

2. Non-Professional DL (renewable every three years) 350.00
3. Conductor’s License (renewable every three years) 350.00
4. Student Permit 150.00
5. Application Fee 100.00
Student Permit
Non-Professional
Professional
6. Revision of Record 100.00
Change Address
Change Birthday
Change Name
Change Citizenship
7. Additional Restriction Code and Change of Status
of License (each) 100.00
8. Conversion Fee 100.00

Foreign DL to Phil. DL
Non-Professional to Professional DL
9. Certification Fee 100.00
Driver’s License Data
Authentication of Driver’s License Data
Driving Experience/Employment Abroad
10. Duplicate Driver’s License Fee 50.00/yr
(unexpired portion)
11. Replacement Fee 225.00
12. Driver’s License Penalties (every year)
Less than one year 75.00
More than one year 150.00
More than two years 225.00
13. Double License 2,500.00
14. Storage of License 500.00
15. Underage 5,000.00
16. Accessory Penalty (Seminar for apprehended Drivers) 200.00
All other existing fees, penalties and fines not herein listed shall be continued to be
enforced at the same rate.
The revised rate herein prescribed shall be published once a week for two (2) consecu-
tive weeks in two newspapers of general circulation in the Philippines and shall take effect
fifteen (15) days thereafter.
All Department Memorandum Orders, Circulars and other Administrative issuances in

conflict with this department order are hereby deemed revoked, amended or revised ac-
cordingly.
II. EFFECTIVITY. This order shall take effect fifteen (15) days after receipt of copies
thereof by the Office of the National Administrative Register (ONAR), U.P. Law Center,
Diliman, Quezon City and publication thereof in two (2) newspapers of general nationwide
circulation.
FOR GUIDANCE AND STRICT COMPLIANCE.

Assistant Secretary
Approved:

Secretary
—o0o—

Department Order No. 2008-39
Revised Schedule of LTO Fines and Penalties

for Traffic and Administrative Violations
In compliance with Executive Order No. 218 dated 15 March 2000 as implemented by
DOF-DBM Joint Circular 2000-2 dated 04 April 2000 the following revised schedule of
administrative fees, charges, fines and penalties of the Land Transportation Office revising
DOTC Department Order 93-693, are hereby approved for implementation:
FINES/PENALTIES FOR TRAFFIC AND APPROVED

ADMINISTRATIVE VIOLATIONS: RATES
A. Violations in Connection with Licensing
1. Driving without license 1,500.00
2. Driving with delinquent or expired license 400.00
3. Driving with suspended or revoked or

improper license 1,000.00
4. Failure to carry Driver’s License 200.00
5. Failure to sign Driver’s License 200.00
6. Driving under the influence of liquor 5,000.00

- and two (2) months suspension of Driver’s License 5,000.00
- for the second offense 6,000.00
and three (3) months suspension of Driver’s License
- for subsequent violations after the 2nd offense 7,000.00
and six-month suspension of Driver’s License;
after 3rd offense automatic revocation of Driver’s license
7. Driving under the influence of drugs 10,000.00

- and automatic revocation of license
8. Allowing an unlicensed/improperly licensed person to

drive motor vehicle 1,000.00
- suspension of plates, registrations and Driver’s
License for 2 months
9. Possession and use of fake/spurious Driver’s License 2,000.00
- if the driver has been issued an authentic license,
it shall be suspended for one (1) year in addition to
the fine.
- if the driver has not been issued an authentic license,
he shall be disqualified, to secure a Driver’s License
for a period of two (2) years.
10. Conviction of the driver of a crime using a motor vehicle 3,000.00
11. Student driver operating a MV without being

accompanied by a licensed driver 500.00
12. Unlicensed conductor of a motor vehicle for hire 500.00
13. Operating/driving a motor vehicle which is unregistered/

improperly registered or with invalid registration
- if committed by the driver without the knowledge
and consent of the owner/operator 2,000.00
- if the driver is also the owner/possessor of the
subject motor vehicle 4,000.00
- in both cases the motor vehicle shall be impounded
or the plates if any shall be confiscated and shall not
be released until properly registered.
14. Operating a motor vehicle with unregistered substitute 5,000.00

or replacement engine, engine block or chassis
- if the subject MV shall be impounded until such parts
are properly registered.
15. Failure to carry certificate of registration or official

receipt of registration 150.00
16. Operating/allowing the operation of MV with a

suspended/revoked Certificate/Official Receipt of
registration 1,000.00
- the subject MV shall be impounded and its plate
held during the suspension
- in addition to the original suspension the said MV
and plates shall further be suspended for two (2) years
17. Tourist operating or allowing the use of non Philippine

registered motor vehicle beyond the 90 day period of
his sojourn in the country 5,000.00
- the MV shall not be allowed to operate by the
confiscation of its plates, OR & CR until properly registered
- in addition, if the driver is a holder of local driver’s
license, the same shall be suspended for one (1) month
B. Violations in Connection with Number Plates
18. MV number plates not firmly attached 200.00
19. Obscure plates 200.00
20. License plates different from body number on

Public Utility Motor Vehicle 500.00
21. Improper display of a motor vehicle permanent plate 500.00
22. Display/Use of an expired commemorative plates

or stickers 2,000.00
23. Tampered/Marked plates or stickers 2,000.00
24. Illegal transfer or use of MV regularly issued MV 10,000.00

plates, tags or stickers except security plates on
authorized motor vehicle
- Owners/Operators are conclusively presumed to have
committed the illegal transfer
- Driver’s of MV involved in illegal transfer of plates
or stickers shall suffer the suspension of their DL
for three (3) months
- If the MV with illegally transferred plates or
stickers is used in the commission of a crime, its
owner shall suffer the penalty of P12,000.00 fine
and suspension of plates and registration certificate
and Official Receipt for two (2) years
C. Violations Relative to Equipments, Parts, Accessories,

Devices and Markings of Motor Vehicles
25. Operating MV with metallic tires in any public highways 5,000.00
26. Defective brake 500.00

27. Improper/Defective Horn or signaling device 300.00
28. Use or installation of unnecessary lights in front and

rear of a Motor Vehicle 300.00
29. Operating motor vehicle without head, tail, plate

and/or brake lights 300.00
30. Without muffler 150.00
31. Without wiper 150.00
32. Dirty or unsightly or unsanitary MV 300.00
33. Dilapidated or defective MV 1,000.00

- to hold release of plates until defect is corrected
34. Failure to paint or improper painting of authorized 500.00

route or PUJ, Filcabs, Shuttle Services, trucks for
hire, taxis and similar for hire motor vehicles operating
with fixed routes
- to hold plates until defect is corrected
35. Non painting of business or trade name 500.00

- to hold plates until defect is corrected
36. Use of unauthorized or improvised plates 300.00
37. Without or defective hand brakes 200.00

- to hold plates pending correction of defect
38. Without or defective speedometer 200.00

39. Without or defective windshield wiper 200.00

40. Without rear view mirror 200.00

41. Without interior light 200.00

42. Without name or business name and address of

operator inscribed on both sides of MV for hire 500.00
- to hold plates or OR/CR until defect is corrected
43. Unauthorized use of bell, siren or exhaust whistle 15,000.00

- forfeiture of the said gadgets in favor of the government
44. Without functional spare tire 300.00
45. Without red flag or red lights on projecting end 500.00

of load extending more than a meter beyond the
bed or body, and in the evening red lights visible
at least 50 meters away
46. Failure to paint plate number on a motor vehicle for hire 500.00
- to be imposed upon the owner/operator
47. Failure to carry EWD 150.00
48. Failure to install EWD 4 meters from the front

and rear of the stalled motor vehicle 500.00
49. Without capacity markings 375.00

- to be imposed upon owner
50. Unauthorized installation of jalosies, painted

windshield or colored windshield 600.00
- to be imposed upon the owner/driver
51. Installation of dim/colored lights, strobe lights,

dancing lights or similar lights 600.00
- to be imposed upon the owner/operator of the motor vehicle
52. Use or installation of heavily tinted colored/painted

windshield or window glass 600.00
sunvizor or light tinted are allowed
53. Without permanent tail gate with inscription

“Not for Hire” sign in a private jeepney/jitney 500.00
- to be imposed upon the owner
54. Use/installation of a glaring/stainless object upon

at the front and/or rear of a motor vehicle 500.00
- to be imposed upon the owner/driver
D. Weights and Load Limits:
55. Load extending beyond the projected width

without permit 500.00
- to be imposed upon the driver
56. Axle overloading – an amount equivalent to 25%

of MVUC at the time of infringement on owner/
operator or driver of trucks and trailers for loading
beyond their registered gross weight, vehicle weight.
The penalty shall be waived for loads exceeding
the registered GVW by a tolerance of less than 5%.
No motor vehicle shall be allowed to proceed on
the roadway if either a dual-wheel axle load shall exceed
thirteen thousand five hundred (13,500) kgs, or the
vehicle load exceeds 150% of the maximum allowable
gross weight.
57. Operating a passenger truck (bus) with cargo exceeding

160 kgs. 300.00
- to be imposed upon either the driver/operator/conductor
58. Allowing more passengers and/or freight or cargo

in excess of carrying capacity of MV 300.00
- to be imposed upon either the driver/operator or conductor
59. Baggage or freight carried on top of truck exceeds

20 kgs. Per sq. meter and not distributed in such a
manner as not to endanger the passenger or stability
of the truck. 400.00
E. Prohibited or Illegal Operation of Motor Vehicles

60. Out of Line
For Operators/Owners:
1st Offense 6,000.00
& addt’l P1,500.00 per day reckoned from the day of
apprehension until the case was settled and suspension
of registration and/or impoundment of MV for three (3) months
2nd Offense 6,000.00

apprehension until the case was settled and suspension
of registration and/or impoundment of MV for six (6) months
3rd Offense 6,000.00

apprehension until the case was settled, revocation of
registration and forever banned from applying for a franchise
and/or revocation of franchise if franchise holder
For Drivers:
1st Offense 250.00
& suspension of DL for three (3) months
2nd Offense 500.00

& suspension of DL for six (6) months
3rd Offense 750.00
& suspension of DL for one (1) year
61. Colorum operation
For Operators/Owners
1st Offense 6,000.00

& add’l P1,500.00 per day reckoned from the
day of apprehension until the case was settled
and suspension of registration and/or impoundment
of MV for three (3) months
2nd Offense 6,000.00

& add’l P2,000.00 per day reckoned from the
day of apprehension until the case was settled
and suspension of registration and/or impoundment
of MV for six (6) months
3rd Offense 6,000.00

& addt’l P2,500.00 per day reckoned from
the day of apprehension until the case was
settled, revocation of registration and forever
banned from applying for a franchise and/or
revocation of franchise if franchise holder
For Drivers:
1st Offense 250.00
& suspension of DL for three (3) months
2nd Offense 500.00
& suspension of DL for six (6) months
3rd Offense 750.00

& suspension of DL for one (1) year
62. Operating a motor vehicle with expired franchise (CPC)

driver 500.00
operator/owner/possessor of MV 1,000.00
per day from the date of expiry to date
of the CPC
- the plate, OR/CR of the subject MV shall be

suspended for six (6) months from the date of
apprehension in addition to the fines.
63. Operating or using a for hire for driver 1,000.00

motor vehicle different from
its types of service mentioned for operator 3,000.00
in the CPC
- for hire MOTOR VEHICLES used by the members
of the family of the operator, during emergency cases
is allowed.
2nd offense and suspension for driver 2,000.00
plates, OR, CR for six (6) months for operator 4,000.00
for subsequent offenses and for driver 3,000.00

suspension of DL, plate, OR/ for operator 5,000.00
CR for one (1) year
F. Breach of Condition of Franchise and Related Violations
64. Employing insolent, discourteous drivers and conductors 400.00

- to be imposed against the owner/operator/
possessor of MV
65. Discourtesy of drivers and/or conductors towards

the passengers 500.00
In addition to the suspension of conductor’s/
driver’s license for two (2) months
66. Unreasonable refusal to convey passengers 1,500.00

- to be imposed against the driver and/or the
operator in addition to the suspension of the
license of the driver for two (2) months. If
the operator has knowledge or consent to the
infraction committed, the plate, OR & CR
shall likewise be suspended for two (2) months.
67. Non issuance of fare ticket for operator 375.00

- to be imposed against the for conductor 1,000.00
operator and the conductor
68. Unauthorized use of commercial or trade name 500.00

- to be imposed against the operator
69. Undue preference or unjust/unreasonable

discrimination against passenger 600.00
- to be imposed against the driver.
Aside from the penalty the license of the driver
shall be suspended for two (2) months.
if the owner/operator has consent thereto the plate,

OR/CR of the subject MV shall be suspended for
two (2) months.
70. Overcharging/Undercharging of fare 750.00
- for the driver or the conductor as the case may
be and suspension of driver’s or conductor’s
license for two (2) months.
- the operator shall also be liable for equal fine
if found to have participated thereto and the plate,
OR/CR for the same period stated above
For each subsequent violation the license of the

driver or conductor and/or the plate, OR/CR of
the subject MV shall be suspended for three (3) months.
71. Breach of Condition in the CPC except when 500.00

already penalized under any provisions of this Circular
G. Frauds and Falsities
72. Use of fake plates/stickers/pursuant documents 2,000.00 to 4,000.00

- to be imposed upon the owner and/or driver
of the subject MV
73. Misrepresenting a copy of a document pertinent to a 1,500.00

motor vehicle before the Traffic Adjudication Service
- to be imposed upon the driver or owner
H. Traffic Violations
74. Parking 200.00

a) within an intersection
b) within 5 meters of the intersection
c) 4 meters from the driveway entrance
d) within 4 meters from a fire hydrant
e) in front of a private driveway
f) on the roadway side of any unmoving or parked

MV at the curb or edge of the highway
g) at any place where signs of prohibitions have been installed
75. Reckless Driving

1st offense 1,000.00
2nd offense 1,500.00

- and suspension of DL for two (2) months
3rd offense 2,000.00

- and suspension of DL for six (6) months
Succeeding offense 5,000.00

- and revocation of DL
such as but not limited to the following:

a. Disregarding Traffic Signs
b. Allowing passengers on top or cover of a motor vehicle except in a truck
helper
c. Failure to provide canvass cover to cargos or freight of trucks requiring the
same
d. Permitting passenger to ride on running board, stepboard or mudguard of
MV while the same is in motion.
e. Failure to dim headlights when approaching another motor vehicle
f. Driving for hire motor vehicle in slippers
g. Driving in a place not intended for traffic or into place not allowed for parking.
h. Hitching or permitting a person or a bicycle, motorcycle, tricycle or skate
roller to hitch to a motor vehicle.
i. Driving against traffic – failure to pass to the right when meeting persons or
vehicles coming towards him.
j. Illegal turn – failure to conduct the motor vehicle to the right of the intersection
of the highway when turning to the left in going from one highway to another.
k. Illegal overtaking – failure to pass to the left when overtaking persons or
vehicles going to the same direction except when there are two or more
lanes for the movement of traffic in one direction
l. Overtaking at an unsafe distance – failure to pass at a safe distance to the
left of another motor vehicle when overtaking that vehicle
m. Cutting an overtaken vehicle – driving to the right side of the highway after
overtaking before his motor vehicle is safely clear of such overtaken vehicle
n. Failure to give way to an overtaking vehicle – failure to give way to another
vehicle approaching from the rear that wishes to overtake his vehicle when
the former has given suitable and audible signal
o. Increasing speed when being overtaken – increasing the speed of the motor
vehicle before the overtaking vehicle has completely passed
p. Overtaking when left side is not visible or clear of oncoming traffic – driving
to the left side of the center line of a highway in overtaking or passing another
vehicle proceeding in the same direction where the left side is not clearly
visible and is not free of oncoming traffic for a sufficient distance to pass in
safely.
q. Overtaking upon a crest of a grade – overtaking or passing another vehicle

proceeding in the same direction when approaching the crest of a grade
r. Overtaking upon a curve – overtaking or passing another vehicle proceeding
in the same direction upon a curve in a highway where the driver’s view
along the highway is obstructed within a distance of 500 feet ahead
s. Overtaking at any railway grade crossing – overtaking or passing another
vehicle proceeding in the same direction at any railway grade crossing.
t. Overtaking at an intersection – overtaking or passing another vehicle
proceeding in the same direction at any intersection of highways except on a
highway having two or more lanes for movement of traffic in one direction
where the driver of a vehicle may overtake another vehicle on the right.
u. Overtaking between “men working” or “caution” signs – overtaking or passing
or attempting to overtake or pass another vehicle proceeding in the same
direction between warning or caution signs indicating that men are working
on the highway.
v. Overtaking at no overtaking zone – overtaking or passing or attempting to
overtake or pass another vehicle proceeding in the same direction in any “no
passing or overtaking” zone
w. Failure to yield the right of way – failure of the vehicle on the left to yield the
right of way to the vehicle on the right when these vehicles approach or enter
an intersection at approximately the same time.
x. Failure to yield the right of way – failure of a vehicle approaching but not
having entered an intersection to yield the right of way to a vehicle within
such intersection or turning therein to the left across the line of travel of the
first mentioned vehicle when such vehicle has given a plainly visible signal
of intention to turn.
y. Failure to yield the right of way – failure of the driver of any vehicle upon a
highway within a business or residential district to yield the right of way to a
pedestrian crossing such highway within a crosswalk except at intersection
where the movement of traffic is regulated by a peace officer or by traffic
signal.
z. Failure to stop before traversing a “through highway” or railroad crossing –
failure of the driver of a vehicle upon a highway to bring to a full stop such
vehicle before traversing any “through highway” or railroad crossing.
a.a.Failure to yield right of way – failure of a vehicle entering a highway from a
private road or drive to yield the right of way to all vehicles approaching on
such highway.
a.b.Failure to yield the right of way to ambulance, police or fire department vehicles
– failure of a driver upon a highway to 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.
a.c.Failure to yield right of way at a “through highway” or a “stop intersection” –
failure of a vehicle entering a “through highway” or a “stop intersection” to
yield the right of way to all vehicles approaching in either direction on such
“through highway.”
a.d.Failure to give proper signal – failure to give the appropriate signal before
starting, stopping or turning from a direct line.
a.e.Illegal turn – failure of the driver of a motor vehicle intending to run to the
right at an intersection to approach such intersection in the lane for traffic
nearest to the right-hand side of the highway and, in turning, to keep as

close as possible to the right-hand curve or edge of the highway.
a.f. Illegal turn – failure of the driver of a vehicle intending to turn to the left, to
approach such intersection in the lane for traffic to the right of and nearest to
the center line of the highway, and in turning, to pass to the left of the center
of the intersection except upon highway laned for traffic and upon one-way
highway.
a.g Failure to stop motor and notch handbrake of motor vehicle when unattended
– failure to turn off the ignition switch and stop the motor and notch effectively
the handbrake when parking a motor vehicle unattended on any highway.
a.h.Unsafe towing
76. Obstruction – obstructing the free passage of other 200.00

vehicles on the highway while discharging or taking
passengers or loading and unloading freight, or
driving a motor vehicle in such a manner as to
obstruct or impede the passage of any vehicle
I. Violations Involving Taxi Units except those already provided in this circular
77. Fast, tampered, defective or non operational

tampered, broken, fake or altered meter seal
1st offense 3,000.00
- and suspension of DL for three (3) months
2nd offense 4,000.00
- and suspension of DL for four (4) months
3rd offense 6,000.00
- and suspension of DL for six (6) months;
after third violation, DL will be revoked and
franchise will be recommended for cancellation.
For the said infraction, the operator of the subject MV shall be summoned. Upon
determination that he is also liable for the said infraction, the plates, OR/CR of
the subject MV shall be suspended for the said duration of the suspension,
suffered by the driver in addition to the fine equivalent to the amount paid by the
driver.
78. Tampered, broken, joint, reconnected, fake
or altered sealing wire 1,500.00
- to be imposed upon the driver or owner whoever
maybe responsible. The license of the driver or the
plate, OR/CR of the MV shall be suspended for
one month for the 1st offense. Two (2) months
for the 2nd offense and three (3) months for the
3rd offense.
- after third violation DL will be revoked and
franchise will be recommended for cancellation.
79. Violation of Color scheme, adoption of MV color

or design without authority 500.00
- to be imposed upon the owner
80. Old meter seal/or loose triplex seal 500.00

- to be imposed upon the owner and/or driver
81. Flagged up meter and/or operating on contractual basis 750.00

- to be imposed against the driver
The license of the driver shall be suspended for
Forty five (45) days.
82. No taximeter 1,200.00

- to be imposed against the driver & 1,200.00
in the total amount of
- to be imposed against the operator 2,400.00
or the total amount of
83. Failure to paint the word aircon 750.00

- to be imposed against the owner/operator only
84. Unauthorized installation of aircon 750.00

- to be imposed against the owner/operator/driver
85. No Identification Card 150.00
86. No taximeter light 200.00
87. Failure to provide top light indicating availability 200.00

- to be imposed upon the driver and/or owner
88. Failure to print owner/operator’s name, address and/

or capacity markings, type of service on taxi units 500.00
- to be imposed upon the owner/operator or driver
J. Other Non-Traffic Violations
89. Unauthorized installation of aircon on buses 750.00
90. Non painting of the word aircon for buses 750.00
91. Operating aircon MV with defective aircon 500.00
92. Smoke Belching defined under RA 8479

- for the 1st offense and to pass the smoke emission test 1,000.00
- for the 2nd offense and to pass the smoke emission test 3,000.00
- for 3rd and subsequent offenses and to pass the 5,000.00
smoke emission test and to suspend of plates, CR/OR/
registration of MV for one (1) year
93. Operating a right hand drive motor vehicle 50,000.00
94. Failure to install seatbelt as defined under RA 8750 1,000.00

95. Failure to wear/unbuckled seatbelt 250.00
96. Allowing a child six years old and below on passenger seat 250.00
97. Display of Sign Board (PUB & PUJ ONLY)

without front panel route 500.00
The foregoing shall be without prejudice to the institution of appropriate criminal charges
in proper courts with proper jurisdiction.
All other existing fees, penalties and fines not herein listed shall be continued to be
enforced at the same rate.
The revised rates herein prescribed shall be published once a week for two (2) con-
secutive weeks in two newspapers of general circulation in the Philippines and shall take
effect fifteen (15) days thereafter.
All Department Memorandum Orders, Circulars and other Administrative issuances in

conflict with this department order are hereby deemed revoked, amended or revised ac-
cordingly.
V. EFFECTIVITY – This order shall take effect fifteen (15) days after receipt of copies
thereof by the Office of the National Administrative Register (ONAR), U.P. Law Center,
Diliman, Quezon City and publication thereof in two (2) newspapers of general nationwide
circulation.
FOR GUIDANCE AND STRICT COMPLIANCE.

Assistant Secretary
Approved:

Secretary
—o0o—
Guidelines for the Creation of LTO Offices, Conversion of Extension Offices

Into Regular Offices and Upgrading of LTO District Offices’ Classification

—o0o—
Amendment of Section 7 (Computer Fee) of Memorandum Circular

No. 575-2005 Prescribing the Implementing Rules and Regulations of
Administrative Order No. 010-2005 on the Initial Registration Scheme
for Brand New Motor Vehicles Valid for Three (3) Years
In compliance with the DOTC Memorandum dated October 6, 2008, Section 7 of LTO
Memorandum Circular No. 575-2005, dated February 14, 2005, is hereby amended to read
as follows:
“SECTION 7. COMPUTER FEE
Pursuant to the LTO IT Project Build-Own-Operate Agreement, Computer Fees

equivalent to three (3) motor vehicle registration transaction for the three (3) years
period shall be collected for all brand new motor vehicles covered by this
Memorandum Circular.”
All memoranda, circular and orders in conflict herewith are deemed superseded and/
or repealed accordingly.
The effectivity of this Memorandum Circular shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general nationwide circula-
tion and the filing of three (3) certified copies hereof with the U.P. Law Center.

Assistant Secretary
—o0o—
Inventory Management System (IMS) – Accountable Items Tracking

Program (AITP) and Accountable Item Uploader (AIU) Phase 2

—o0o—
Issuance of Student Permit in All Driver’s

License Renewal Centers (DLRCs) Nationwide
To effectively de-clog regular agencies of transactions and shorten the waiting time of
the transacting public, all Driver’s License Renewal Centers will be allowed to process
Student Permit effective November 15, 2008.
All orders/memoranda in conflict herewith are hereby deemed superseded.

Assistant Secretary
—o0o—
Amendment of Memorandum Circular No. AHS-2008-1010

Dated 22 July 2008 Re: Conduct of Mobile Emission Test
and Use of LTO Emission Test Machine for E-Patrol
In reference to LTO Memorandum Circular No. AHS-2008-1010 entitled, “Conduct

of Mobile Emission Test and Use of LTO Emission Test Machine for E-Patrol,” the imple-
mentation of item number 4 relative to the utilization of LTO emission test machines (gas
analyzers and opacity meters) in the operation of E-Patrol is hereby amended. Private
Emission Testing Centers (PETCs) shall participate in the E-Patrol operations.
All orders/circulars/memoranda inconsistent herewith are hereby deemed superseded.
Strict compliance is hereby enjoined.

Assistant Secretary
—o0o—
Memorandum
Validation Guidelines and Procedures for

Manual Transactions Beyond April 18, 2004
To continuously ensure that all manually-processed transactions have been encoded

and successfully uploaded in the LTO IT System database prior to payment of computer
fees to Stradcom, all Records Officers must still perform strict validation of records under
close supervisions by the Agency Heads. The following guidelines must be observed:
1. Manual transactions processed beyond April 17, 2004 shall be subjected to the
validation guidelines defined under MC on “Offline and Manual Transactions Validation
Guidelines and Procedures.” (See Annex A*)
2. All transactions must be validated one by one. Random checking is discouraged.
3. Only manual transactions from automated district offices are subject to the validation
procedures.
4. Only transactions with CAIF are subject to the validation procedures.
All orders/memoranda in conflict herewith are hereby deemed superseded.

Assistant Secretary
—o0o—
Memorandum
Moratorium on Apprehensions for Overloading of Motor Vehicles

Carrying Agricultural and Perishable Food Products
As this Office contribution to lower food prices and to ensure the efficient operation of
food supply chain nationwide, it is hereby directed that an indefinite moratorium on the
apprehension, for overloading violation, of motor vehicles carrying agricultural and perish-
able food products, including sugar cane and livestock be imposed, effective immediately.
Further, all concerned must see to it that the order is not subverted or misused in trans-
porting other cargoes being passed off as agricultural products to elude apprehension.
* Not Filed.

Assistant Secretary
—o0o—
RE: Expanded Coverage of Inspection
In line with the objective of our Motor Vehicle Inspection System Program to develop a
systematic and comprehensive vehicle testing system for motor vehicles for inspection by
the following Motor Vehicle Inspection Centers (MVIC) are hereby expanded as follows:
1. Region 3 MVIC – all motor vehicles for registration at San Fernando District Office;
2. North MVIC – all motor vehicles for registration at Diliman District Office;
3. South MVIC – all motor vehicles for registration at Pasay District Office; and
4. Cebu MVIC – all motor vehicles for registration at Mandaue Public Utility Vehicle
Registration Center.

Assistant Secretary
—o0o—
Re: Criteria for Lot Acquisition of Motor Vehicle Inspection Centers
It was observed during the 1st Phase of the Motor Vehicle Inspection System Program
that there is a necessity to issue clear cut guidelines and/or criteria by which lot acquisi-
tion for Motor Vehicle Inspection Centers yet to be established is to be governed.
To avoid unnecessary delay in the implementation of the Motor Vehicle Inspection

System Program in its 2nd and succeeding phases, the following criteria for lot acquisition
are hereby set for the guidance of all concerned:
1. The lot must be registered in the name of the vendor free from liens and encumbrances
with the following documents:
a. Original Certificate of Title

b. Latest Tax Declaration City
c. Latest Tax Clearance
d. Original lot plans/survey signed by the Geodetic Engineer
e. Price Assessment of the lot from the City/Municipal Assessor’s Office
f. Zonal Valuation
g. Vicinity Map
2. The lot must be quadrilateral in shape (rectangle). The average elevation of the section
of the lot with reference to the access road along the lot frontage shall be more or less
the same as that of the elevation of road center line. Cutting/backfilling shall not be
allowed.
3. The lot ground surface must be stable and must be free from erosion and no natural
drainage such as ditches, dikes or channels running within and/or bisecting any section
of the lot.
4. The proposed location must have available data communication link, local water system
and 3-phase supply of electricity.
5. The lot must be located along the national highway and within the area of jurisdiction
of the District Office/Regional Office concerned.
6. The vendor shall shoulder all expenses relative to the transfer of TCT from vendor of
LTO including sales/capital gain taxes.
7. The proposed MVIC lot should be within a 5km radius from the existing District/Regional
Office.
8. (For 3 lane MVIC only) The lot area must be at least 8,000 square meters with a
minimum frontage dimension of sixty (60) meters.
9. (For 5 lane MVIC only) The lot area must be at least 10,000 square meters with a
minimum frontage dimension of sixty (60) meters.
Attached is the standard format*, to be accomplished by the Regional BAC when

evaluating proposals for lot acquisition. Accomplished form shall be submitted to the Chair-
man, Special Bids and Awards Committee for evaluation and recommendation for the
approval of the undersigned.

Assistant Secretary
MACTAN-CEBU INTERNATIONAL AIRPORT AUTHORITY
Administrative Order No. 1, Series of 1990 as Amended
Prescribing Fees, Charges and Corresponding Rules and Regulations for the
Properties, Facilities and Services of the Mactan-Cebu International Airport
Authority, Incorporating All Board Resolutions Effecting Amendments

U.P. Law complex, Diliman, Quezon City
MARITIME INDUSTRY AUTHORITY

MARINA Advisory No. 2008-15
Authentication of Certificates/Documents by MARINA
Notice is hereby given that effective 03 November 2008, the following rules shall be
implemented:
1. Authentication shall be made only on Qualification Document Certificates (QDCs) and

Seafarer’s Identification and Record Book (SIRBs) issued by MARINA;
2. Seafarers are no longer required to apply for authentication of training certificates/medi-

cal certificates. For purposes of application for issuance/renewal of SIRBs/QDCs, seafar-
ers shall be required to present the original training certificates and official receipts cover-
ing the training and submit certified true copies of said documents by the issuing office/s;
3. SIRBs and QDCs of any seafarers found to have submitted fraudulent documents, shall
be revoked as provided for under MC 2008-04.
(SGD.) MARIA ELENA H. BAUTISTA

Undersecretary for Maritime Transport, DOTC
and Officer-in-Charge, MARINA
—o0o—
Coming Into Force of the Bunkers Convention

—o0o—
Implementation/Operationalization of the
MARINA Central Receiving Unit
Notice is hereby given that effective 15 November 2008, all applications except those
SIRB-related, shall be filed and received at the MARINA Central Receiving Unit (CRU),
located at the Third Floor, Masagana Building.
1. Receiving of Applications/Documents
1.1 Color-coded checklist of requirements for each office shall be available outside
the CRU.
1.2 Screening officers shall check the completeness of the documents submitted by
the applicant and issue the corresponding Authority to Accept Payment (ATAP).
Applications with incomplete documents shall not be accepted.
1.3 The applicant shall present the ATAP and pay the corresponding fees at the cashier;
1.4 Paid applications together with complete set of documents shall be received by
the Record Officer.
2. Applicant/liaison officers are strictly off-limits inside any of the MARINA offices.
3. Follow-up can only be entertained at CRU, using the document tracking system available
in computer station provided for the purpose.
4. Processing of applications shall follow the standard/set processing time.
—o0o—

Reiteration of Cash Bond Requirement Under FSAA 2008-07

for Temporary Carriage of Heavy Grade Oil by Single Hulled Tankers
Notice is hereby given that by virtue of Regulation IV.1 of MARINA Memorandum Cir-
cular No. 2007-01, oil tankers including tankers below 600 tons shall be double hulled by
April 2008.
On 23 April 2008, Flag State Advisory No. 2008-07 was issued providing the conditions
for grant of temporary permit to single hulled vessels to carry heavy grade oil products.
MARINA records show, however, that the following single hulled vessels previously granted
Special Permit to carry heavy grade oil products have not complied with FSA No. 2008-07,
in particular, the posting of the required cash bond of five million pesos (Php 5,000,000.00)
per vessel:
Name of Vessel Owner/Company/Charterer
1. M/Tkr “LINPORS” 3N2J Shipping and Trading Services, Inc./

Chelsea Shipping Corp.
2. M/Tkr “PORS 1” 3N2J Shipping and Trading Services, Inc./
Chelsea Shipping Corp.
3. M/Tkr “BMI ANGELITA” Bunkers Manila, Inc./Chelsea Shipping Corp.
4. M/Tkr “BANGUNGON” Paros Maritime, Inc./Magsaysay Ship
Management, Inc.
5. M/Tkr “KUHOL” Laguna Lake Carriers, Inc./Magsaysay Ship
Management, Inc,
6. M/Tkr “Diwal” Laguna Lake Carriers, Inc./Magsaysay Ship
Management, Inc,
7. M/Tkr “CHELSEA PASSION”Chelsea Shipping Corp. (Ex-owner: MIS Maritime
Ex. “MIS-1” Corp.)
8. M/Tkr “BANAGAN” Paros Maritime, Inc./Magsaysay Ship
Management, Inc.
Be informed further that pursuant to the Orders of the Office of the President (OP)
dated October 20, 2008 and November 18, 2008 O.P. Case No. 08-J-396 (Chelsea Ship-
ping Corporation vs. MARINA, et. al.) this Authority is restrained only from collecting the
reduced penalty of twenty five thousand pesos (Php 25,000.00) per day of operation. Thus,
this Authority will still require the posting of cash bond to qualified applicants who will
apply for extended use of their single hulled tanker or barges to carry heavy grade oil
products.
Wherefore, all Maritime Enforcers are ordered to apprehend the above vessels or any
single hulled tanker or barge carrying heavy grade oil products without the approved exten-
sions to carry heavy grade oil products.
This also serves as a Notice to oil companies that the above tankers are not allowed
to carry heavy grade oil products.
This Advisory takes effect immediately.

—o0o—
MARINA Circular No. 2008-07
Revised Rules on the Collection of Annual Tonnage Fee
MARINA MEMORANDUM CIRCULAR NO. 2008-05 entitled, “Rules on the Collection

of Annual Tonnage Fee”, is hereby amended, to wit:
III. GENERAL PROVISIONS
1. All owners/operators/charterers of Philippine-registered ships operating in the domestic

trade shall be required to pay tonnage fee based on the following schedule:
P25.00 per gross tonnage (GT) – if payment is made within the first quarter
(January 1 – March 31)
P30.00 per gross tonnage (GT) – if payment is made within the second quarter
(April 1 – June 30)
P35.00 per gross tonnage (GT) – if payment is made after the second quarter
(July 1 – December 31)
In all cases, however, the minimum payment shall be P500.00 per ship.
2. Annual tonnage fee shall be assessed on the total GT as of 31st day of December of
the year immediately preceding the calendar year.
IV. SANCTIONS AND PENALTIES
Any shipowner/operator or charterer who fails to pay annual tonnage fee on or before
December 31 of each year shall be imposed a 50% surcharge, plus 1% interest for every
month of delinquency, or 50% plus 1% for every month of delinquency, for fees or
balance not paid within 60 days from the due date, and non-renewal/non-issuance of appli-
cable licenses/certificates, including the company’s certificate of accreditation.
V. REPEALING CLAUSE
All other provisions of MC 2008-05 which are inconsistent with this Circular are hereby
repealed/amended accordingly.
VI. EFFECTIVITY
This Circular shall take effect fifteen (15) days after its publication once in a newspa-
per of general circulation.
BY AUTHORITY OF THE BOARD:

NATIONAL AGRICULTURAL AND FISHERIES COUNCIL

Joint Department Order

Department of Agriculture Administrative Order No. 01, s. 2008
Department of Health Administrative Order No. 2008-0030
Renaming the National Codex Committee (NCC) to the National

Codex Organization (NCO) and Amending Its Terms of Reference (TOR)
WHEREAS, the creation of the NCC by virtue of a Joint DA-DOH Administrative Order
(DA-AO No. 02 S2005/DOH-AO No. 2005-0028) dated 25 November 2005 paved the way
for the establishment of the National Codex Committee as the organizational structure
responsible for responding to Codex-related issues and concerns;
WHEREAS, the issuance of the Joint Administrative Order, and approval of its Terms
of Reference, involving key agencies of the Departments of Agriculture and Health that deal
with food safety and consumer health protection, resulted in the creation of the NCC
Technical Committee, Sub-Committees and Task Forces as the venue for informed dis-
cussions, deliberations and decisions on Codex food safety standards and other texts
that would impact on the country’s food industry and economy;
WHEREAS, the NCC structure and procedures provide the guidelines for coordinated
and cost effective country representation in Codex meetings to ensure that issues that are
important to the country are properly addressed;
WHEREAS, the NCC Sub-Committees/Task Forces serve as the focal and respon-
sible group for developing country positions that consider national interests and capabili-
ties as well as for determining the appropriate country delegates to Codex meetings;
WHEREAS, in its two (2) years of operation the NCC identified areas for improvement
in its structure, policies and procedures for addressing operational problems and for better
achieving the NCC’s objectives for manpower capacity building;
NOW, THEREFORE, WE, the respective Heads of the Department of Agriculture and
the Department of Health, by virtue of the powers vested in us by the Constitution and
existing laws, do hereby instruct the following:
Section 1. Renaming the NCC to National Codex Organization (NCO) and its struc-
ture. The National Codex Committee (NCC) is hereby renamed as the National Codex
Organization (NCO) as the national focal Body on Codex-related concerns.
Section 2. Permanent Location of the Office of the National Codex Organization (NCO).
The Departments of Health and Agriculture agreed to permanently house the NCO at a
Management Support Office. This is currently located at the Food Development Center of
the National Food Authority (FDC-NFA). It shall provide the necessary personnel and logis-
tical support. The location and hosting of the MSO can be changed as determined by the
DA and DOH.
Section 3. Organization and Composition of the National Codex Organization. The

NCO is hereby constituted according to its amended Terms of Reference (TOR) which
shall form part of this document attached as Annex A*. The NCO shall be composed of the
following: 1) Executive Council, 2) Technical Committee, 3) Management Support Office,
4) Sub-Committees/Task Forces, and, 5) Codex Contact Point.
Section 4. Functions and Responsibilities of the NCO. The functions and responsibili-
ties of the Executive Council, Technical Committee, Management Support Office, Sub-
Committees/Task Forces, and Codex Contact Point shall follow the approved TOR.
Section 5. Management Support Office (MSO). The MSO, in close coordination with
the Technical Committee, shall provide management and technical support to the Techni-
cal Committee and the Sub-Committees/Task Forces to facilitate the discharge of their
responsibilities as defined in the Terms of Reference and to enhance the development of
manpower capacity.
Section 6. Codex Contact Point (CCP). The Bureau of Agriculture and Fisheries Prod-
uct Standards (BAFPS) is the Codex Contact Point in the Philippines. It will act as the link
between the NCO and the Codex Secretariat in Rome.
Section 7. Inter-Agency Participation and Coordination. All concerned attached agen-

cies and bureaus of the Department of Health and Department of Agriculture are hereby
directed to coordinate all Codex-related activities with the NCO, cooperate and provide full
support to the NCO and ensure proper coordination with other concerned government
agencies and the private sector for an effective performance of their functions.
Section 8. Responsibilities of Agency Chairs and Agency Head of the MSO. All con-
cerned agencies and bureaus of the Department of Health and Department of Agriculture,
that chair an NCO Sub-Committee or Task Force and in accordance with Sections 8.3 and
8.4 of the TOR, shall provide logistical support including technical secretariat and internet
access, support the cost of meetings and agency participation in Codex meetings. The
list of Agency Chairs and Agency Heads of the NCO shall form part of this document
attached as Annex B.*

Section 9. Appropriation. The national government, shall provide a budget allocation
for the operations of the NCO including Philippine participation in Codex meetings. The
Departments of Health and Agriculture and its concerned agencies shall provide regular
funds for the operation of the NCO Committees which they Chair and the NCO MSO for the
proper performance of its functions.
Section 10. Organizational, Administrative and Implementing Guidelines. The NCO

shall adopt the TOR, herein attached as Annex A, as the organizational, administrative
and implementing guidelines of this Administrative Order. The Technical Committee shall
likewise develop an NCO Manual of Operations (MOP) as part of its implementing guide-
lines and ensure that its Sub-Committees and Task Forces are current and relevant to
Codex subsidiary bodies (attached as Annex B). The Departments involved shall thereby
issue separate Special Orders pursuant to this AO to consider changes in the Chairman-
ship of the Sub-Committees and Task Forces.
Section 11. Mandatory Review. The NCO Terms of Reference (TOR) shall undergo
mandatory review every five (5) years to consider new developments.
Section 12. Repealing Clause. All Administrative Orders, Rules and Regulations and
other Administrative issuances or parts thereof, inconsistent with the provisions of this
Administrative Order are hereby repealed and modified accordingly.
Section 13. Effectivity. This Order shall take effect immediately.
Adopted: 22 Oct. 2008.
(SGD.) ATTY. ARTHUR C. YAP (SGD.) FRANCISCO T. DUQUE III

Secretary Secretary
Department of Agriculture Department of Health
NATIONAL TELECOMMUNICATIONS COMMISSION

Memorandum Circular No. 06-10-2008
Rules on the Mandatory Interconnection of

Cable Landing Stations to Backhaul Networks
WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in
nation building;
WHEREAS, the promotion of competition in the telecommunications market is a key

objective of Republic Act No. 7925 (RA 7925, for brevity), otherwise known as “The Public
Telecommunications Policy Act of the Philippines,” which mandates that “a healthy com-
petitive environment shall be fostered, one in which telecommunications carriers are free
to make business decisions and interact with one another in providing telecommunica-
tions services, with the end in view of encouraging their financial viability while maintaining
affordable rates.”
WHEREAS, RA 7925 further defines the role of the government to “promote a fair,
efficient and responsive market to stimulate growth and development of the telecommuni-
cations facilities and services”;
WHEREAS, the existing authorized cable landing stations are connected to the na-
tional networks through the backhaul facilities of the operator of the cable landing stations,
that is, PLDT cable landing station in Nasugbu, Batangas is connected to the national
networks through the backhaul facilities of PLDT, Globe Telecom cable landing station in
Nasugbu, Batangas is connected through Globe Telecom backhaul network, and Digitel
cable landing station in Cavite is connected through the backhaul network of Digitel;
WHEREAS, traffic passing through the international optical submarine cable systems
landing in the PLDT cable landing station is transmitted to the national networks through
PLDT’s own backhaul network. Similarly, traffic passing through the international optical
submarine cable systems landing in the Globe Telecom cable landing station is transmit-
ted to the national networks through Globe Telecom’s own backhaul network and traffic
passing through the international optical submarine cable systems landing in the Digitel
cable landing station is transmitted to the national networks through Digitel’s own backhaul
network. Since the backhaul networks are necessary to bring traffic to and from the inter-
national optical submarine cable systems, the cost of the backhaul networks is part of the
prices of international circuits;
WHEREAS, opening the backhaul network service to other suppliers will bring prices
to market level to the benefit of the consumers;
NOW THEREFORE for and in consideration of the above premises and pursuant to
the powers vested upon the National Telecommunications Commission (Commission) by
EO 546 series of 1979, EO 59 series of 1993 and RA 7925 the following guidelines are
hereby promulgated:
1. The following terms as used in this Circular shall mean:

Backhaul Network Operator – refers to duly enfranchised and authorized inter-exchange
carriers or international gateway facilities or international carriers.
Interconnection – refers to the linkage by wire or wireless systems of the backhaul
networks and cable landing stations for the purpose of connecting to international
cable systems.
Access – refers to the access by the backhaul network operator to the facilities of
cable landing station operator for the purpose of connecting to the international cable
systems.
2. The interconnection of backhaul networks to all cable landing stations shall be

mandatory.
3. Each backhaul network operator shall provide the trunks/circuits necessary to
interconnect its backhaul network to the cable landing stations. Each backhaul network
operators shall ensure that the number of trunks/circuits is sufficient to meet at least
the minimum prescribed grade of service of P01.
4. The cable landing station operator shall provide sufficient space within its premises
and terminating equipment to interconnect the backhaul networks to the international
cable systems.
5. If interconnection would require the installation of radio equipment, said radio equipment
shall be provided by the backhaul network providers. The cable landing station operator
shall provide the required space and termination equipment.
6. The cable landing station operator shall allow ingress of personnel from the backhaul
network operators for the sole purpose of repair and maintenance of the radio facilities
installed within its premises. A letter-request to the cable landing station operator
shall be made for each ingress. The request shall allow the cable landing station
operator at least 24 hours to prepare.
7. The cable landing station operator and the backhaul network operator shall negotiate
and enter into an interconnection agreement. The negotiation and agreement shall
comply with the rules and guidelines on interconnection. The interconnection agreement
shall be submitted to the Commission not later than thirty (30) days from the date of
the agreement for approval.
8. This Circular amends or supersedes any Circular, Order and Memorandum or any
part/s thereof inconsistent herewith.
9. This Circular shall take effect fifteen (15) days after its publication in a newspaper of
general circulation and three (3) certified true copies furnished the UP Law Center.
(SGD.) RUEL V. CANOBAS

Commissioner
(SGD.) JORGE V. SARMIENTO (SGD.) JAIME M. FORTES, JR.

Deputy Commissioner Deputy Commissioner
—o0o—
Memorandum Circular No. 07-11-2008
Amending and/or Modifying Memorandum Circular No. 04-06-2008

Enjoining Radio & Television (TV) Stations, Cable Television (CATV)
Facilities’ Compliance with Department Order No. 5 Series of 1948 and
Department Order No. 88 Series of 1973 for the Purpose of Clarifying
Certain Policy Issues with Respect to the Employment of Licensed
Radio Operators/Technicians
Whereas, the National Telecommunications Commission (NTC) is vested with the

authority and jurisdiction to formulate and implement policies, plans, programs, rules and
regulations in the establishment, maintenance and operation of radio and TV broadcast
facilities, systems and services and CATV facilities throughout the country;
Whereas, under Department Order No. 5, S. 1948 on the Rules and Regulations
Governing Commercial Radio Operators, the actual operation of any radio, TV and/or CATV
station for which a station license is required shall be carried out only by a licensed radio
operator/technician;
Whereas, Department Order No. 88, S. 1973 and implemented under Memorandum
Circular No. 37, requires the services of a duly Registered Electronics and Communica-
tions Engineer (ECE) in the operation and maintenance of radio stations;
Whereas, the NTC takes cognizance of the fact that a number of radio and TV broad-
casting stations and CATV operators are not employing licensed radio operators/techni-
cians and ECEs;
Whereas, the NTC recognizes the need to amend and/or modify Memorandum Circu-
lar No. 04-06-2008 in order to clarify certain policy issues with respect to the employment
of licensed radio operators/technicians;
Wherefore, pursuant to the powers vested in the NTC and for the reference and guid-
ance of all concerned, it is hereby ORDERED that all radio and TV broadcasting stations
and CATV operators must comply with the provisions of Department Order No. 5, series of
1948, by employing a licensed radio operator/technician at all times during and while in
operation. Further, the operation of all radio and TV broadcast stations and CATV opera-
tors must be under the supervision of a Professional Electronics and Communications
Engineer (PECE) or Registered Electronics & Communications Engineer (ECE) pursuant
to the provisions of Department Order No. 88, series of 1973.
Any Circular, Memorandum or Order previously issued or parts thereof inconsistent

herewith are deemed amended, revised or repealed accordingly.
This Circular shall take effect fifteen (15) days after publication in a newspaper of
general circulation and three (3) copies hereof deposited with the University of the Philip-
pines (U.P.) Law Center.
(SGD.) RUEL V. CANOBAS

Commissioner
(SGD.) JORGE V. SARMIENTO (SGD.) JAIME M. FORTES, JR.

Deputy Commissioner Deputy Commissioner
OFFICE OF THE PRESIDENT
Administrative Order No. 233
Reiterating the Prohibition on the Acquisition and

Use of Luxury Vehicles and Directing Revisions of
Guidelines on Government Motor Vehicles Acquisition
WHEREAS, the current Administration is steadfast in its goal to utilize government

resources judiciously;
WHEREAS, the Government must set the highest standard of parsimony and efficiency
in public spending;
WHEREAS, the Philippines is a major user of imported oil with the transport and
automatic industries accounting for about sixty percent (60%) of the country’s total
petroleum consumption;
WHEREAS, the Government should set aside and provide the example in the efforts
to reduce the country’s dependence on imported fuels and to foster energy self-reliance
by promoting the use of alternative fuels;
WHEREAS, the acquisition of government motor vehicles should be guided by the

principles of functional suitability, affordability and practicability, and must strictly comply
with RA No. 8749, known as “The Clean Air Act of 1999”;
WHEREAS, the recent trends in the automotive industry have rendered the current
guidelines on motor vehicles’ specifications outdated;
WHEREAS, the process of acquiring new motor vehicles could be further streamlined;
NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic

of the Philippines, by virtue of the powers vested in me by law, do hereby order:
1.0 All government offices, including Government-Owned or Controlled Corporations

(GOCCs), Government Financial Institutions (GFIs), State Universities and Colleges (SUCs)
and Local Government Units (LGUs), are hereby prohibited from acquiring and/or using
luxury vehicles for their operations.
2.0 For the purpose of this Order, a “luxury vehicle” shall refer to any motor vehicle with the
following technical specifications:
2.1 Car (sedan or hatchback) with an engine displacement exceeding 2200cc, if

gasoline-fed; or 3000cc, if diesel-fed; and with an engine exceeding 4 cylinders;
2.2 Passenger van or pick-up type vehicle with an engine displacement exceeding
2200cc, if gasoline-fed; or 3000cc, if diesel-fed; and with an engine exceeding 4
cylinders;
2.3 Crossover Utility Vehicle (CUV)1/Multi-Purpose Vehicle (MPV)/Asian Utility Vehicle

(AUV) with an engine displacement exceeding 2000cc, if gasoline-fed; or 2500cc, if
diesel-fed; and with an engine exceeding 4 cylinders;
2.4 Sports Utility Vehicle (SUV) with an engine displacement exceeding 2700cc, if
gasoline-fed; or 3000cc, if diesel-fed; and with an engine exceeding 4 cylinders;
3.0 The following vehicles are not covered by this Order.
3.1 Those used for security reasons and purposes for the President, Vice-President,
Senate President, Speaker of the House of Representatives and Chief Justice of the
Supreme Court;
3.2 Vehicles donated by Foreign Governments and Bilateral and Multilateral Institutions,
if compliance with this Order is violative of the terms and conditions of such donation;
3.3 Vehicles used for visiting foreign dignitaries maintained by the Office of the President
(OP)-Proper and the Department of Foreign Affairs; and
3.4 Vehicles acquired for on-going projects funded from existing official development
assistance programs;
4.0 In this connection, all government agencies are hereby directed to account for all their
motor vehicle units, prepare a disposal program for all luxury motor vehicles and submit a
report to the Department of Budget and Management (DBM) and OP, thru the General
Government Administration Office (GGAO) , on compliance with his provision.
5.0 The government office concerned shall proceed to immediately dispose of such ve-
hicles by public auction or sale in compliance with applicable laws, rules and regulations.
6.0 All proceeds from such sale shall be turned over to the National Treasury, in the case
of national government agencies/SUCs; or to their respective corporate operating funds, in
the case of GOCCs and GFIs; or to their respective local funds, in the case of LGUs. The
same shall be automatically appropriated for the purchase of new ones, subject to the
provisions of this Order, and for the repair of existing serviceable vehicles. Agencies con-
cerned are required to submit a Special Budget pursuant to Section 35, Chapter 5, Book
VI of Executive Order No. 292 (Administrative Code of 1987) and a report of vehicles sold
and the utilization of the sales proceeds to the DBM and OP-GGAO.
1
A new classification from the auto industry, CUV is categorized as a light commercial
vehicle but with higher specifications than an AUV. It has the cargo and passenger carrying
space of passenger wagon/minivan, the aerodynamics and sleekness of a car, and the
rugged looks and feel of SUV. MPV has a similar feature and is just a sub-classification
of an AUV.
7.0 The authority to approve the acquisition of the following types of motor vehicles is
delegated to the agency head concerned and the Secretary of Budget and Management
chargeable against the respective agency’s appropriations authorized for the purpose:
7.1 Specific-purpose vehicles, such as, medical ambulances, military and

police patrol vehicles, armored vehicles, prisoners’ vans, and fire trucks;
7.2 Heavy equipment, such as, road construction equipment, cargo transport
equipment, farm machineries, waste management/environmental sanitation
equipment, and similar vehicles/equipment;
7.3 Locally-assembled owner- or passenger-type jeep;
7.4 Motorized bancas/boats;

7.5 Vehicles for mass transport when necessary in the interest of public
service; and
7.6 Motorcycles and tri-wheel vehicles.
8.0 Local Chief Executives, including Punong Barangays, are hereby authorized to ap-
prove the acquisition of the types of motor vehicles enumerated under Section 7.0 hereof
to be sourced from their unencumbered local funds. However, for acquisitions of said ve-
hicles to be sourced from the national government funds under the annual General Appro-
priations Act, the concerned LGU shall seek the approval of DBM for motor vehicles enu-
merated under Section 7.0 hereof or OP for motor vehicles enumerated under Section 9.0
hereof.
9.0 All government agencies enumerated under Section 1.0 hereof shall seek approval of
OP for the purchase of the following types of vehicles regardless of funding sources:
9.1 Car (sedan or hatchback) with engine displacement not exceeding 2200cc, if
gasoline-fed; or 3000cc, if diesel-fed;
9.2 Passenger van or pick-up type vehicle with an engine displacement not exceeding
2200cc, if gasoline-fed; or 3000cc, if diesel-fed;
9.3 CUV/MPV/AUV with an engine displacement not exceeding 2000cc, if gasoline-

fed; or 2500cc, if diesel-fed;
9.4 SUV with an engine displacement not exceeding 2700cc, if gasoline-fed; 3000cc
if diesel-fed;
9.5 All types of aircrafts; and
9.6 All types of sea-crafts, not otherwise classified under Subsection 7.4 hereof.
10.0 All government agencies enumerated under Section 1.0 hereof shall henceforth pur-
chase at least fifty percent (50%) of their mobility requirements using alternative fuels,
such as, bio-fuels-ready vehicles that run on higher blends, flexi-fuel, natural gas, solar
and electric vehicles.
11.0 The Department of Energy (DOE) and the Department of Transportation and Commu-
nications (DOTC), with the assistance of other concerned government agencies, shall
continue to develop and implement programs to promote the use of alternative fuels.
12.0 The Department of Budget and Management (DBM), in coordination with the DOE
and DOTC, is hereby directed to provide necessary guidelines to effectively implement the
provisions of this Order within sixty (60) days from its issuance.
13.0 The provisions of AO No. 339 (s. 1997), AO No. 3 (s. 2001), AO No. 4 (s. 2001), AO
No. 103 (s. 2004), AO No. 110 (s. 2004), and AO No. 121 (s. 2005), which are inconsistent
with this Order are hereby modified or repealed accordingly.
(SGD.) GLORIA MACAPAGAL ARROYO
BY THE PRESIDENT:
(SGD.) EDUARDO R. ERMITA
Executive Secretary
--o0o--
Prohibiting the Use of Government Vehicles

for Purposes Other than Official Business, and for Other Purposes
WHEREAS, pursuant to Republic Act No. 7638, it is a declared policy of the State to
ensure a continuous, adequate, reliable and economic supply of energy through the judicious
conservation, renewal and efficient utilization of energy, to keep pace with the country’s
growth and economic development;
WHEREAS, the present Administration adheres to the principle that public office is
a public trust and inherent in this principle is the judicious and responsible stewardship in
the utilization of the government’s resources;
WHEREAS, the continuous rise in the prices of oil in the world market calls for the
government to exert efforts to promote the judicious use of our energy resources through
intensified conservation effort and efficient utilization thereof; and
WHEREAS, there is a need to strengthen the government’s effort against the use of
government vehicles for purposes other than official business in line with the government’s
energy saving and anti-graft and corruption campaigns.
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines,

by virtue of the powers vested in me by law, do hereby order:
SECTION 1. All government agencies and offices are prohibited from using
government vehicles for purposes other than official business: Provided, That in every
case, the trip ticket authorizing the use of the vehicle shall be displayed on the windshield
or in another conspicuous place on the vehicle: Provided, further, That vehicles used by
intelligence and investigative agencies of the government shall not be covered by the
foregoing proviso.
The use of government vehicles on Sundays, legal holidays, or out of the regular
office hours or outside the route of the officials or employees authorized to use them, or by
any person other than such officials or employees, shall unless properly authorized, be
prima facie evidence of violation of this Section in the administrative proceeding against
the officials or employees responsible of such violation.
All government agencies and offices shall limit the use of government vehicles to
essential activities and shall review their travel program and schedules to minimize
unnecessary trips.
SECTION 2. The use of government vehicles for private social functions such as
receptions, balls, theatres, and for other personal purposes is absolutely prohibited. Likewise,
use thereof by the spouses, children, relatives, friends, and the like of the officials entitled
thereto, even if they are in the company of said officials, is strictly prohibited.
SECTION 3. The use of government vehicles by bureaus and offices shall be authorized
only through the issuance for each trip of a serially numbered ticket, duly signed by an
authorized official. These motor vehicles shall be used strictly for official business, bear
government plates only, and after office hours or during weekends and holidays kept in a
garage designated/provided therefor by the bureau or office to avoid their unauthorized use.
During weekends and holidays, the guard on duty shall keep the keys. If the vehicles
are spotted elsewhere during said days, the guard shall be held liable along with those
caught using the vehicle in accordance with the service contract entered into by the
Government and security agency concerned.
SECTION 4. The public is hereby encouraged to report any unofficial use of

government vehicles to the Presidential Action Center (PACE) through the following contact
information:
" Letters, telegrams and written correspondences
PRESIDENTIAL ACTION CENTER

Arlegui Street, San Miguel
Manila
" Text messages
09198984621, 09198984622, 09198984623

09178398462, 09178982462, 09178985462
The report shall contain, among others, the type of vehicle, plate number, and the
place and time where the government vehicle is found, preferably with pictures.
SECTION 5. All department and agency heads of the government shall undertake a
vigorous information dissemination campaign in their respective departments and agencies,
while the Director-General of the Philippines Information Agency (PIA) is hereby directed
to inform the public of the provisions of this Order.
The Land Transportation Office (LTO) is particularly enjoined to closely coordinate

and render assistance for the prompt and efficacious implementation of this Order,
particularly in the identification of the reported government vehicles.
SECTION 6. Strict compliance by all officers and employees of the Government,

including those of the government-owned or controlled corporations, with the provisions of
this Order is enjoined. Anyone found violating any of the provisions of this Order, shall be
sternly dealt with in accordance with existing laws, rules and regulations.
SECTION 7. This Administrative Order shall take effect immediately.
BY THE PRESIDENT:
(SGD.) JESUS G. DUREZA

Acting Executive Secretary
--o0o--
Executive Order No. 739
Reorganizing the Peace and Order Council
WHEREAS, the Communist rebels have spent years as a low-level threat;
WHEREAS, it is time for their disruption and violation of human rights to be put to
rest so that the nation can move ahead;
WHEREAS, the Communist rebels impede the progress and development of a number
of rural areas, for example, the tri-boundary of Davao Oriental, Compostela Valley and
Surigao del Sur, and are responsible for a wide range of human rights abuses;
WHEREAS, if the Philippines is to become a first world country, it must put a stop to
their ideological nonsense and their criminal acts once and for all;
WHEREAS, the creation of an office in the regions has been recommended to focus
on convergence and the orchestration of internal security operations (ISO) efforts of civil
authorities and agencies, military and police;
WHEREAS, the imposition of sanctions has been recommended against local chief
executives who are giving material and political support to the Communists rebels;
WHEREAS, the provision of livelihood and infrastructure development programs and

projects in the remote rural and indigenous population areas has been adopted as a policy
to isolate them from the Communist rebels’ “Agitate/Arouse, Organize and Mobilize” and
ideological, political and organization works;
NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by virtue

of the powers vested in me by the Constitution and the laws, do hereby order and direct the
following:
SEC. 1. Reorganization of the Peace and Order Council - The Peace and Order
Council is hereby reorganized on the national, regional, provincial, city and municipal
levels of government to be constituted as follows:
(a) The National Peace and Order Council (NPOC) shall have the same composition
as the National Security Council (NSC) except for the chairmanship. The Chair of the NSC
shall be the President of the Philippines, while the Chair of the NPOC shall be the Secretary
of Interior and Local Government (SILG). The members of both Councils shall be composed
of the following:
The SILG
The Director-General of the National Security Council
The Executive Secretary
The Secretary of Foreign Affairs
The Secretary of National Defense (SND)
The Secretary of Justice
The Press Secretary
The Chairman of the Dangerous Drugs Board
The Presidential Adviser on the Peace Process
The Director-General, Presidential Management Staff
The Director-General, Philippine Information Agency
The Chairperson of the Presidential Anti-Graft Commission
The Chief of Staff of the Armed Forces of the Philippines (CSAFP)
The Chief of the Philippine National Police (PNP)
The Director of the National Bureau of Investigation
Three (3) representatives from the private sector who shall be appointed by the
President of the Philippines.
(b) The Regional Peace and Order Council (RPOC) shall be composed of the region’s
Provincial Governors, the Mayors of the Highly Urbanized Cities, the Presidents of the
Leagues of Municipalities, the regional counterparts of the departments, offices and agencies
enumerated in paragraph (a) above, wherever applicable, with the Chairman and Vice-
Chairman to be appointed by the SILG with the approval of the President of the Philippines
from among the members of the Council. In addition, there shall be one representative of
the Mayors of the Component Cities to be chosen from among themselves. The Chairman
of the RPOC shall appoint the three (3) representatives of the private sector, upon consultation
with the members of the Council and with the approval of the SILG. The regional counterpart
of the CSAFP shall be the Commander of the Infantry Division. Departments, offices and
agencies with no regional and/or field offices shall not sit in the RPOC.
(c) The Provincial Peace and Order Council (PPOC) shall be composed of the provincial
counterparts of the departments, offices and agencies as enumerated in paragraph (a)
above, wherever applicable, with the Provincial Governor as Chairman and the Vice Governor
as Vice Chairman. In additional there shall be one representative of the Sangguniang
Lalawigan to be chosen by it from among its members. The Chairman of the PPOC shall
appoint the three (3) representatives of the private sector, upon consultation with the
members of the Council and with the approval of the Commander of the Infantry Division
and the Regional Director of the PNP. The provincial counterpart of the CSAFP shall be the
Brigade Commander or, in the case of Palawan, the Commander of the Western Command.
Departments, offices and agencies with no provincial and/or field offices shall not sit in the
PPOC.
(d) The City or Municipal Peace and Order Council (CPOC or MPOC) shall be
composed of the city or municipal counterparts of the departments, offices and agencies
as enumerated in paragraph (a) above, wherever applicable, with the Mayor as Chairman
and the Vice Mayor as Vice Chairman. In addition, there shall be one representative or the
Sangguniang Panlungsod or Sangguniang Bayan, as the case may be, to be chosen by
the said Sanggunian from among its members. The Chairman of the CPOC or MCOP shall
appoint the three (3) representatives from the private sector, upon consultation with the
members of the Council and with the approval of the Brigade Commander or, in the case of
Palawan, the Commander of the Western Command, and the Regional Director of the
PNP. Departments, offices and agencies with no city, municipal, and/or field offices shall
not sit in the CPOC or MPOC.
SEC. 2. Responsibility of the NPOC - The NPOC shall be responsible for the following
functions:
(a) To contribute to the strategies of the National Security Council that would effectively
respond to peace and order problems;
(b) To coordinate and monitor peace and order plans;
(c) To provide a forum for inter-disciplinary dialogue and deliberation of major issues
and problems affecting peace and order;
(d) To perform such other duties and functions as the President may direct.
SEC. 3. Duties and Functions of Sub-National Councils - The RPOCs, PPOCs,

CPOCs, and MPOCs shall have the following duties and functions:
(a) Provide a forum for dialogue and deliberation of major issues and problems affecting
peace and order, including insurgency;
(b) Recommend measures which will improve or enhance peace and order and public
safety in their respective areas of responsibility, including anti-insurgency measures;
(c) Initiate and/or oversee the convergence and the orchestration of internal security
operations efforts of civil authorities and agencies, military and police;
(d) Apply moral suasion to and/or recommend sanctions against local chief executives
who are giving material and political support to the Communist rebels;
(e) Monitor the provision of livelihood and infrastructure development programs and
projects in the remote rural and indigenous population areas adopted to isolate them from
the Communist rebels’ “Agitate/Arouse, Organize and Mobilize” and ideological, political
and organization works;
(f) Perform all other functions assigned by law, the said President or the NPOC.
The Civilian Volunteer Organizations (CVOs) shall be managed and supervised by

the respective Regional, Provincial, City or Municipal Director of the PNP.
SEC. 4. Peace and Order Council Secretariat - There shall be a Peace and Order
Council Secretariat which shall handle the administrative and technical activities of the
Peace and Order Council that is organized in the various administrative levels of government.
The Secretariat shall also undertake liaising and coordination of activities with appropriate
agencies of the government.
The SILG shall act as the Secretary-General of the RPOC. The Regional Director of
the Department of Interior and Local Government (DILG) shall head the RPOC Secretariat.
At the provincial, city and municipal levels, the Secretariat of the PPOC, CCOC and
MPOC shall be headed by the most senior DILG officer stationed in the province, city or
municipality.
The Secretariat at each level shall be assisted in its functions and duties by the
regular staff of the Council Chairman.
SEC. 5. Regional ISO Convergence Office - There is hereby created in each region
a Regional ISO Convergence Office under the RPOC. It shall focus on the convergence
and the orchestration of internal security operations (ISO) efforts of civil authorities and
agencies, military and police.
The Infantry Division Commander shall act as the Executive Officer. He shall be
assisted by the Presidential Assistant for the Region.
SEC. 6. Kalayaan Barangay - The Kalayaan Barangay list drawn up by the Department
of Defense may be amended, with the approval of the Unified Area Commander, to conform
with the need to provide livelihood and infrastructure development programs and projects in
the relevant remote rural and indigenous population areas adopted to isolate them from the
Communist rebels’ “Agitate/Arouse, Organize and Mobilize” and ideological, political and
organization works.
SEC. 7. Repealing Clause - All prior issuances on the organization and functions of
the Peace and Order Council inconsistent herewith shall be deemed superseded by this
Order.
SEC. 8. Effectivity - This Order shall take effect immediately.

BY THE PRESIDENT:

Executive Secretary
--o0o--
Creating a Task Force on Cotabato Flood Control
WHEREAS, there is an urgent need for interventions to control the flood brought
about by Typhoons Frank and Cosme in the provinces of North Cotabato, South Cotabato,
Saranggani and Sultan Kudarat, as well as the City of Cotabato and parts of the Autonomous
Region of Muslim Mindanao;
WHEREAS, these areas are within the Lower Cotabato River Basin which are known
to be prone to flooding as a result of the heavy siltation of the major rivers of the Mindanao
River Basin and the Ligawasan Marsh;
WHEREAS, under Section 31, Chapter 10, Title III, Book III of the Administrative
Code of 1987, the President as continuing authority to reorganize the Executive Branch;
NOW, THEREFORE, I, Gloria M. Arroyo, President of the Republic of the Philippines,

do hereby order:
SECTION 1. Creation - The Task Force on Cotabato Flood Control (Task Force) is
hereby created.
SECTION 2. Mandate - The Task Force shall integrate flood control efforts in the
areas of the Autonomous Region of Muslim Mindanao (ARMM) and Region XII that were
flooded by typhoons Frank and Cosme. It shall likewise ensure that public funds for Cotabato
flood control shall be spent judiciously and effectively through efficient prioritization of
programs and consistent monitoring of projects. It shall serve as the clearing house for all
proposals related to Cotabato flood control. Upon consolidation and evaluation, it shall
approve the appropriate requests. It shall notify the Department of Budget and Management
(DBM) of its approval as basis for the release of the fund.
SECTION 3. Powers - The Task Force shall have the following powers:
a. To generate proposals from the implementing agencies for Cotabato flood control efforts
as well as infrastructure support;
b. To work with the Department of Public Works and Highways of the National Government
and the ARMM for the important intervention that need to be implemented for Cotabato
flood control;
c. To work with the Regional Disaster Coordinating Council (RDCC) of the ARMM and the
RDCC of Region XII on common or overlapping project activities related to Cotabato flood
control;
d. To regularly monitor the status of programs, projects and activities related to Cotabato
flood control in the areas flooded by typhoons Frank and Cosme in the Cotabato River
basin to ensure their prompt and efficient execution;
e. To recommend courses of action to ensure cohesiveness in objectives and coordinated

action to improve the implementation of flood control repair and construction works and
activities in said areas;
f. To coordinate and consult with concerned national and local officials, both elective and
appointive, as well as accredited non-government organizations in the prosecution of pro-
grams and projects.
g. To mobilize the assistance and support of any government agency or instrumentality as

well as civil society and donor community to address identified gaps and requirements in
Cotabato flood control efforts; and
h. To formulate policies, plans and programs for Cotabato flood control as well as infra-
structure support with regard to flood control fund or funds for a similar purpose that may
be allocated for Cotabato flood control.
SECTION 4. Composition - The Task Force shall be composed of the following:
a. A representative of civil society to be designated by the President of the Philippines as

Chair of the Task Force;
b. The Governor of the ARMM;
c. The Chairman of the Region XII RDCCI;
d. The Secretary of Public Works of ARMM; and
e. The Regional Director of Region XII DPWH.
SECTION 5. Organization of the Secretariat - The Task Force shall maintain a

Secretariat to be headed by an Executive Director. It may request that personnel from
different government agencies and instrumentalities be detailed by their respective heads.
SECTION 6. Assistance of Government Entities - All departments, agencies, bureaus,

offices and instrumentalities are hereby enjoined to extend full assistance and cooperation,
and to provide necessary information and data to the Task Force.
SECTION 7. Secretariat - Technical and administrative personnel shall be provided

the Task Force by member agencies on detail basis. The Executive Director shall have the
following powers and functions:
a. Administer and manage the day-to-day affairs and operations of the Task Force;
b. Coordinate the activities of agencies and instrumentalities in the implementation of

projects;
c. Coordinate and liaise with accredited non-government organizations, international agen-

cies and other groups or individuals involved in flood control;
d. Conduct studies on flood control to minimize the adverse effects to lives, properties and
livelihood of residents in the Cotabato River Basin that may be caused by similar floods;
e. Work with the DPWH on engineering plans for Cotabato flood control;
f. Monitor the implementation of projects and programs in connection with Cotabato flood
control;
g. Report to the Task Force, which shall meet at least monthly, on the status, situation
and developments concerning projects and programs; and
h. Perform such other functions as may be assigned by the President of the Philippines.
SECTION 8. Reportorial Requirements - The Task Force shall submit to the DBM a
quarterly report on the funds allocated indicating the amount released, obligated and
disbursed for Construction or repair and reconstruction of infrastructure projects being
financed, and the accomplishments for the expended appropriations.
SECTION 9. Term - The Task Force shall exercise its powers and functions for a
period of two (2) years unless otherwise directed by the President.
SECTION 10. Funding - The funding for the administrative and operational expenses
of the Task Force shall be sourced from the Contingent Fund.
SECTION 11. Repealing Clause - All other executive issuances, rules and regulations
or parts thereof that are inconsistent with the provisions of this Executive Order are hereby
repealed, amended or modified accordingly.
SECTION 12. Effectivity - This Executive Order shall take effect immediately.
BY THE PRESIDENT:

Executive Secretary
--o0o--

Creating the Sorsogon Bay Rehabilitation and Development Council
WHEREAS, Section 33 of the Local Government Code encourages and provides the
means for cooperative undertakings among Local Government Units;
WHEREAS, Sorsogon Bay is plagued by Red Tide;
WHEREAS, concerted action is needed to mitigate the effect of Red Tide not only by
the local government units along the bay, but also by the national government agencies;
WHEREAS, to enable the government to translate into reality this thrust, the local
government units (LGUs) of Magallanes, Casiguran, Juban, Sorsogon, Castilla and Pilar
together with the communities must unify their efforts consistent with the principles of
sustainable development and people empowerment;
WHEREAS, there is a need to create a body that shall provide the unity of efforts to
formulate policies, mechanisms and strategies that will address the issues in Sorsogon
Bay, while at the same time not usurping the implementation functions of the agencies
and LGUs mandated by law to implement such policies, mechanisms and strategies;
WHEREAS, there is a need for strong collaboration between and among the concerned
agencies and LGUS for the integrated management, protection, development and
conservation of Sorsogon Bay;
WHEREAS, the Mayors of Sorsogon City, Castilla, Casiguran, Magallanes, Pilar,

and Juban on 24 July 2008 endorsed to the Office of the President the creation of the
Sorsogon Bay and Development Council;
NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the

powers vested in me by law, do hereby order:
SECTION 1. There is hereby created under the Department of Agriculture the

Sorsogon Bay Rehabilitation and Development Policy Council, hereinafter referred to as
the “Council”, composed of the following:
A designated Undersecretary from the Department of Agriculture (DA) as Chairman

and designated Assistant Secretary from the Department of Environment and Natural
Resources (DENR) as Vice-Chairman, the Presidential Assistant for Region V, The Region
V Director of the Department of Interior and Local Government, the Governor of Sorsogon
Province, the Mayors of the City of Sorsogon and the municipalities of Casiguran, Castilla,
Juban, Magallanes and Pilar, and three (3) representative from the private sector to be
appointed by the President of the Philippines upon the recommendation of the
Representatives of the First and Second Districts of Sorsogon and the Integrated FARMC.
The Secretaries of the DA and the DENR shall issue the corresponding designation
and shall submit the same to the Region V Office of the DA which shall act as the Secretariat.
SECTION 2. The Council shall be an advisory and coordinating body to the Secretaries
of the DA and the DENR and shall exercise the following functions:
a. Formulate a five-year Sorsogon Bay Rehabilitation and Development Master Plan for the
Sorsogon Bay area covering the surrounding coastal areas of Sorsogon City and the mu-
nicipalities of Casiguran, Castilla, Juban, Magallanes and Pilar.
b. Propose and coordinate projects and programs for the rehabilitation and enhancement
of its ecological balance, protection and rational utilization and development of its coastal
and marine resources, and for the empowerment and just sharing by the people of the
localities of the fruits of development.
c. Where needed and appropriate, call on the National Government Agencies to extend
and/or facilitate assistance to the LGUs concerned in the areas of training, technical and
technological know-how, planning, management and supervision, feasibility studies/re-
search, financial, funding sources, project development and evaluation, procurement and
marketing for the speedy implementation of the identified plans and projects for the Bay
area;
d. Coordinate with appropriate National Government agencies and LGUs to strictly enforce
fisheries laws, rules and regulations and prevent illegal fishing activities as well as recom-
mend national and local legislation to further the same;
e. Conduct public consultations as well as enhance public awareness on the protection,

development and optimum utilization of coastal, marine and fisheries resources;
f. Encourage the active participation of the private sector in the planning and implementa-
tion of projects in the Bay area;
g. Promote investment opportunities and economic projects suitable for and consistent
with the planned rehabilitation and development of the Bay area;
h. Assist the agencies and LGUs mandated to regulate business establishments which
have direct environmental impact over Sorsogon Bay.
i. Perform any other functions as may be assigned by the President.
SECTION 3. The Council may call upon any government agency, office or bureau for
assistance to facilitate the discharge of its functions.
SECTION 4. The amount of One Million Pesos to be drawn from the budget of the
Department of Agriculture or its agencies shall be released for the operations of the Council
and intial operation for 2008. Appropriations for the succeeding years shall be incorporated
in the budget proposals under the Department of Agriculture.
SECTION 5. All executive issuances, orders, rules and regulations or parts thereof
inconsistent with this Order are hereby revoked or modified accordingly.
SECTION 6. This Order shall take effect immediately.

BY THE PRESIDENT:

Executive Secretary
--o0o--
Authorizing the Secretary of Energy to Negotiate and

Conclude Joint Venture, Co-Production, or Production-Sharing
Agreements for the Exploration, Development and Utilization
of Mineral Resources
WHEREAS, Section 2 of Article XII of the 1987 Constitution provides that the
exploration, development and utilization of natural resources shall be under the full control
and supervision of the State, and that the Senate may directly undertake such activities, or
may enter into co-production, joint venture, or production-sharing agreements with Filipino
citizens, or corporation or associations at least sixty percentum (60%) of whose capital is
owned by such citizens, which agreements may be for a period not exceeding twenty-five
years, renewable for not more than twenty-five years, and under such terms and conditions
as may be provided by law;
WHEREAS, Section 2 of Article XII of the 1987 Constitution further provides that the
President may enter into agreements with foreign-owned corporations involving either
technical or financial assistance for large-scale exploration, development, and utilization
of minerals, petroleum, and other mineral oils according to the general terms and conditions
provided by law;
WHEREAS, there are existing and expected proposals from interested parties,
including foreign-owned corporations, for agreements involving the exploration, development,
and utilization of minerals that require immediate consideration to encourage investment
in the industry which plays a pivotal role in the economic development of the country; and
WHEREAS, in order to enable the Government to consider and conclude such

agreements, it is necessary in the national interest to provide the legal basis and authority
for entering into such contracts or agreements;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic

of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order:
SECTION 1. The Secretary of Energy (hereinafter referred to as “the Secretary”) is

hereby authorized to negotiate and enter into, for and in behalf of the Government, joint
venture, co-production, or production-sharing agreements for the exploration, development,

and utilization of mineral resources with any Filipino citizen, or corporation or association
at least sixty percent (60%) of whose capital is owned by Filipino citizens, subject to
existing laws, rules and regulations.
SECTION 2. The Secretary is further hereby authorized to accept, consider, evaluate

proposals from foreign-owned corporations or foreign investors, and negotiate and enter
into, for and in behalf of the Government, contracts or agreements involving either technical
or financial assistance for large-scale exploration, development, and utilization or minerals,
subject to existing laws, rules and regulations.
SECTION 3. The Secretary shall furnish the Office of the President copies of any
contract or agreement which may be entered into pursuant to Sections 1 and 2 hereof.
SECTION 4. Any contract or agreement entered into by the Secretary pursuant to

Sections 1 and 2 hereof shall be reported to Congress by the Executive Secretary in behalf
of the President within thirty (30) days from its execution.
SECTION 5. The Secretary shall promulgate such supplementary rules and regulations
as may be necessary to effectively implement the provisions of this Executive Order.
SECTION 6. All other executive orders, rules, regulations and other issuances or
parts thereof, which are not inconsistent with the provisions of this Executive Order, shall
continue in force and effect.
SECTION 7. This Executive Order shall take effect immediately upon its publication
in a national newspaper of general circulation.
BY THE PRESIDENT:
(SGD.) JESUS G. DUREZA
Acting Executive Secretary
--o0o--
Ordering Budget Maximizers Without Revamping Expenditure Parameters
WHEREAS, certain budget maximizers can get more productivity per peso without
revamping expenditure parameters or overhauling the budget of the agencies affected;
WHEREAS, if implemented, such budget maximizers would only entail internal

reconfiguration of an agency’s program thrusts;
WHEREAS, such budget maximizers are in fact adjustments that would add efficiency
and energy to the government’s spending program for next year.
WHEREAS, if small companies can tell the Philippine Economic Zone Authority how
many jobs their investment can create, all the more for the institutions with the biggest
capital expenditure resources in the country;
WHEREAS, irrigation spending can churn out temporary jobs during the construction
phase and permanent jobs out of new lands opened up for farming;
WHEREAS, if we can come up with a budget-based employment tally, then we can

present this as emergency employment program, which is needed to blunt the effects of
rising inflation;
WHEREAS, if the project’s beneficiaries are tapped during its construction,

substandard work can be prevented;
WHEREAS, if the Administration is called to account for the reformed VAT spending,
then it should be able to point to the contents of the Revenues Allocated for Public Services
(REAPS) as the reformed VAT rebates. This way a major revenue source of budget funds
can be protected from agitation that it can be scrapped.
WHEREAS, REAPS can create Pro-reformed VAT constituencies created out of

beneficiaries. If Part 4 of the government pay hike series will be taken from REAPS or a big
road project in, for example, Samar, is specifically listed as a VAT divided recipient, then a
sector and an area shall be put in the pro-VAT column.
WHEREAS, REAPS need not appear in the official budget documents, but it can be
highlighted in government presentations, as some sort of an “off budget document” reference.
WHEREAS, putting access of the disabled to the budget fortifies it against criticisms
that it cannot met all the needs of the people;
WHEREAS, conditional cash transfers, textbook budget, Philhealth cards, hiring of

new teachers and scholarship programs and construction for the disabled and elderly all
fall under regular program activity projects (PAPs) of the agencies. Accommodating them
in the latter will not require a rewrite of the budget, so what is already printed need not be
changed. The Golden Acres, for instance, can be funded out of the Budget of the Department
of Public Works and Highways during the budget execution phase. By tweaking the programs
of agencies, their offerings can be expanded and enlivened;
WHEREAS, if there are price spikes in food and fuel, then the budget to be relevant
must be able to answer this question: Paano tinutugunan ng budget ang pandaigdigang
krisis sa pagkain at langis? We can come up with an appropriate response if we create a
crosssectoral box that will enumerate PAP’s in each of the two;
WHEREAS, by combining food production, price subsidy, supply stability and hunger
mitigation under Food Security we maximize spending in this crucial sector. Cross-sectoral
inventory of activities is the yeast that lifts up spending in a sector;
WHEREAS, tailoring regular projects to new uses will bring relevance to the usual
laundry list of government projects as enumerated in the budget;
WHEREAS, building a thousand laboratories that will incubate future scientist will
be more meaningful than building more rooms beyond the 45:1 student: classroom ratio
required for elementary schools:

of the Philippines, by the powers vested in me by law, do hereby order:
SECTION 1. Creating Job Benchmarks. Employment odometer shall be put back in

the budget. Agencies that will receive capital outlays shall run numbers on how many job
infrastructure funds will generate. The Department of Public Works and Highways shall
measure how many jobs it can create in a year in asset creation, eg, new roads, and asset
preservation, eg, Oyster and Kanan Project maintenance. The same shall be done by the
Department of Agriculture for irrigation spending during the construction phase and out of
new lands opened up for farming. Provided that: the Republic Act 6685 which requires fifty
percent (50%) of unskilled labor to be selected from out of the residents of where the
project will be located.
SECTION 2. Putting all the Fruits of VAT in One Basket. All the fruits of the value
added tax shall be put in one basket. It shall be called Revenues Allocated for PUBLIC
Services, or REAPS. The most popular, high-impact, big ticket projects and programs
shall be selected and put together in one basket. All social-services, all new activities both
retail, eg, LRT expansion, shall be placed there. The amount shall be One Hundred Billion
Pesos (P100,000,000,000.00), which corresponds to 80 percent of the Reformed VAT
intake.
SECTION 3. Bringing the Disabled and Elderly to the Mainstream. Affirmative action
shall be taken for the disabled and elderly in the budget. In the Conditional Cash Transfer
(CCT), for example, the menu of recipients shall be expanded to include the handicapped.
Part of the Department of Education textbook budget shall be earmarked for Braille books
and instructional materials for special education (SPED) classes. Philhealth cards shall
be set aside for those on wheelchairs. The budget of the National Orthopedic Hospital
shall be increased. In the hiring of new teachers, a quota shall be set for SPED specialists.
Slots in the TESDA, GATSPE and other scholarship programs shall be set aside for the
disable. The Golden Acres shall be replicated in at least four regions.
SECTION 4. Focusing on Food and Fuel. A crossectoral box shall be created that
will enumerate all program agency projects in food and fuel. Under Food security, all
initiatives shall be listed under the following brackets: Food Production (FILEDS, Agrarian
Reform Fund); Price Subsidy (NFA). Supply Stability (Tindahan Natin); Hunger Mitigation
(Food for School, CCT). The same shall be used with respect to fuel prices. One aspect
can be Conservation (CFL shift in public offices, to be funded out of the National Government
Maintenance, Operating and Overhead Expenses; Bike-for-School; LPG conversion; LRT
extension, or even MRT ridership subsidy); Alternative Fuels (jathropa; or even reforestation
activities in hydroelectric dam watersheds); Electrification (barangay energization).
SECTION 5. Tailoring Regular Projects to New Uses. Instead of building new

classrooms beyond the 45:1 student: classroom requirement for elementary school, the
same amount shall build a science laboratory. Instead of merely allocating funds for hospital
equipment, the equipment that will be distributed shall be specified, i. e. 50 x-rays or “We
shall build 50 radiology rooms or 50 dialysis machines will be scattered all over the public
health system, especially in primary care hospitals so they can be transformed into
secondary care hospitals.” MVUC funds shall be maximized by clustering pedestrian and
road safety signages and warnings around schools and calling it the “Safe Kids Initiative.”
SECTION 6. This Administrative Order shall take effect immediately.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Mandating the Speedy Implementation of Republic Act No. 9485

Otherwise Known as the “Anti-Red Tape Act of 2007” and its Implementing
Rules and Regulations and Strengthening the Application Thereof
WHEREAS, the Office of the President (OP) Memorandum Circular No. 35 dated
March 17, 2003 directed all government agencies, including government-owned and controlled
corporations, to implement the publication of service guides and the posting of workflow
charts in compliance with Republic Act No. (RA) 6713;
WHEREAS, Administrative Order No. 161 dated October 5, 2006, as amended by

Executive Order No. 605 dated February 23, 2007, enjoined the implementation of a
government-wide Quality Management Program which mandated, among others, the
streamlining of services and the establishment of citizen’s charters;
WHEREAS, RA 9485, otherwise known as the Anti-Red Tape Act of 2007, took effect
on September 5, 2008 following the issuance of the Implementing Rules and Regulations
(IRR) by the Civil Service Commission under the CSC Resolution No. 081471 dated July
24, 2008;
WHEREAS, Section 6 of RA 9485 provides that all government agencies including

departments, bureaus, offices, instrumentalities, or government-owned and/or controlled
corporations, or local government or district units shall set up their respective standards to
be known as the Citizen’s Charter within one year after the effectivity of said law;
WHEREAS, Section 7 of the same law provides that the implementation of RA 9485
shall be the primary responsibility and accountability of the head of office or agency;
WHEREAS, Section 1, Rule VI of the IRR of RA 9485 provides that all offices and
agencies are enjoined to undertake on a continuing basis programs to promote customer
satisfaction and improve service delivery, and other similar activities for officers and
employees in frontline services;
WHEREAS, there is a need to expedite the implementation of the abovementioned
provisions for the effective realization of the State’s policy of work to fix the corruption that
has, unfortunately, long plagued our nation;

of the Philippines, by the powers vested in me by law, do hereby order:
SECTION 1. Streamlining and Posting of Procedures. All departments, bureaus,

offices and instrumentalities of the government, including government financial institutions
and government-owned and controlled corporations, hereinafter referred to as “agencies,”
shall streamline and post the procedures for the twenty (20) most heavily utilized processes
or services not later than December 31, 2009.
The posted procedures shall include the information prescribed in Section 1, Rule IV
of the IRR of RA 9485 and such other relevant data, instructions and materials which the
concerned agency deems proper for information of its clientele and the public in general.
SECTION 2. Public Assistance and Complaints Desks and Hotlines. All agencies
shall establish in their respective offices a public assistance and complaints desk and
provide the public hotline number/s which should be purposely set up to effectively receive
feedback and monitor customer satisfaction in conformity with Rule VI of the IRR of RA
9485 not later than December 31, 2009.
All agencies shall develop a scheme within its office to ensure that the public assistance
desk/complaints desk shall be attended to at all times and the hotline number/s shall be
accessible to the public.
Agencies are mandated to interconnect their current and future public assistance
systems with the government-wide citizen’s helpline once the same is established.
SECTION 3. Campaign Against Fixers. All agencies shall mount a campaign that
will set up a system to eliminate fixing activity in their place of work and commence legal
proceedings against fixers such as the filing and prosecution of criminal and/or administrative
cases not later than March 31, 2009.
SECTION 4. Collaboration with the Civil Service Commission, Development Academy

of the Philippines and Clientele. Agencies shall work with the Civil Service Commission
(CSC), the Development Academy of the Philippines (DAP), and the agencies’ respective
clientele in streamlining procedures and eradicating fixers.
For streamlining of local government services, the Department of the Interior and
Local Government shall assign its field staff to serve as anti-red tape facilitators in
discussions with the CSC and the clientele of local government units (LGUs) in their
respective areas.
SECTION 5. Institution of a Performance Evaluation System Based on Output.

Agencies shall institute a Performance Evaluation System based on objectively measured
output and performance of personnel and units, such as the Performance Management
System-Office Performance Evaluation System developed by the CSC.
SECTION 6. Report of Compliance. Agencies shall submit an initial written report

not later than October 31, 2008 to the Anti-Red Tape Task Force established under Executive
Order No. 557 dated August 8, 2006, through its Chairman, the Secretary of Trade and
Industry, with copies to the Department of Budget and Management and the CSC on the
present status of their compliance with past anti-red tape directives/issuances such as RA
6713, OP Memorandum Circular No. 35, and Administrative Order No. 161 as amended.
SECTION 7. Allocation of Funds. Agencies are hereby directed to allocate a portion

of their maintenance, operations and overhead expenditures (MOOE) budget as funding for
the implementation of the Anti-Red Tape Act of 2007, including the conduct of seminars
and other services provided by the CSC and DAP.
The following agencies, identified for priority anti-red tape measures, shall allocate
two percent (2%) of their total budget from all sources for their measures to comply with
Anti-Red Tape Act of 2007 as well as measures identified by the CSC:
a. Bureau of Customs
b. Bureau of Fire Protection
c. Bureau of Food and Drugs
d. Bureau of Immigration
e. Bureau of Internal Revenue
f. Department of Environment and Natural Resources
g. Laguna Lake Development Authority
h. Philippine Health Insurance Corporation
i. Social Security System
j. Government Service Insurance System
SECTION 8. Effectivity. This Administrative Order shall take effect immediately.
BY THE PRESIDENT:

Executive Secretary
--o0o--

Authorizing the Secretary of the Department of Transportation and

Communications to Implement the Voluntary International
Maritime Organization Member State Audit Scheme
WHEREAS, the Philippines is a member state of the International Maritime

Organization (IMO) and is a contracting party to the IMO Mandatory Instruments;
WHEREAS, the IMO Assembly, in accordance with Resolution A.946(23), adopted

the Voluntary IMO Member State Audit Scheme (VIMSAS), establishing an Audit Scheme,
on a voluntary basis, to determine the extent that member states are implementing and
enforcing applicable IMO Instruments, and thereby promoting the consistent and effective
implementation of IMO Instruments with a view to enhancing global and member state
performance;
WHEREAS, the IMO Assembly, in accordance with Resolution A.973(24) and

A.996(25), adopted the Code for the Implementation of Mandatory Instruments, which
serves as a guide to member states on how to be a good flag, coastal and/or port state,
and provides a standard against which a member state should be audited;
WHEREAS, the Philippines offered to be audited under the Audit Scheme during the
24th Session of the IMO Assembly, which was confirmed in the letter of the Secretary of
the Department of Transportation and Communications (DOTC) to the IMO Secretary-
General on the offer to be audited in the second half of 2009;
WHEREAS, the Philippines is a leading maritime nation being the largest supplier of
seafarers to the international maritime community, and its decision to volunteer for audit is
part of its continuing commitment to maritime safety and environmental consciousness;
WHEREAS, there is a need to effectively and carefully plan, manage, direct, coordinate
and monitor the efforts of national government agencies involved in the implementation of
IMO Mandatory Instruments relative to the IMO Audit Scheme;
WHEREAS, the DOTC, including its attached agencies, is primarily responsible for
the adoption, implementation and enforcement of the IMO Mandatory Instruments, including
the continuous improvement of the same.

SECTION 1. Lead Agency for the Implementation of the International Maritime

Organization (IMO) Audit Scheme. The Department of Transportation and Communications
(DOTC) shall serve as the lead agency in the implementation of the Voluntary IMO Member
State Audit Scheme (VIMSAS) in the Philippines. It shall carry out the planning, coordination
and implementation of the following activities, among others:
1. Preparations for Audit

2. Provision of Assistance during Audit

3. Preparation and Implementation of Corrective Action Plan for Audit Findings
4. Periodic In-House Evaluation of Performance
SECTION 2. Role of the DOTC Secretary. The DOTC Secretary is hereby authorized
to direct, manage and coordinate all activities, mobilize available government resources
and call on the assistance of all government agencies concerned for the implementation of
the IMO Audit Scheme in accordance with applicable laws.
SECTION 3. Cooperation and Support of Government Agencies. All departments,

bureaus, offices and other government agencies and instrumentalities, including government-
owned and/or controlled corporations are hereby directed to extend full cooperation, support
and assistance to the DOTC and the DOTC Secretary regarding all matters and requests
specifically related to and covered by this Order.
The following departments, agencies and corporation shall form the core of the inter-
agency group for the implementation of the IMO Audit Scheme:
Secretary of the DOTC Chairman

Undersecretary for Maritime Transport, DOTC Vice-Chairman
As members, the following departments/agencies/entities included and represented

by an Assistant Secretary or an official of equivalent rank, namely the: Department of
Foreign Affairs (DFA), Department of Environment and Natural Resources (DENR),
Department of National Defense (DND), Department of Labor and Employment (DOLE),
Commission on Higher Education (CHED), Commission on Maritime and Ocean Affairs
(CMOA), Maritime Industry Authority (MARINA), Philippine Coast Guard (PCG), Philippine
Ports Authority (PPA), Maritime Training Council (MTC), Technical Education and Skills
Development Authority (TESDA), Professional Regulation Commission (PRC), Philippine
Navy (PN), National Disaster Coordinating Council (NDCC), and National Mapping and
Resource Information Authority (NAMRIA).
The DOTC shall provide a Secretariat for the inter-agency group to be headed by an
Assistant Secretary and composed of officials of the DOTC and its attached agencies with
rank equivalent to a Director.
The Department of Budget and Management (DBM) is hereby directed to provide

and/or assist in facilitating the release of the necessary funding for the conduct of the IMO
State Audit Scheme.
SECTION 4. Separability Clause. Any portion or provision of this Administrative Order

that maybe declared unconstitutional shall not have the effect of nullifying its other portions
or provisions, as long as such remaining portions can still be given effect.
SECTION 5. Repealing Clause. All administrative orders, rules and regulations and
other issuances or parts thereof, which are inconsistent with this Administrative Order, are
hereby revoked, amended, or modified accordingly.
SECTION 6. Effectivity. This Administrative Order shall take effect immediately after
its publication in a national newspaper of general circulation.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Creating a System for the Bulk and Break Bulk Cargo Clearance
Enhancement Program of the Bureau of Customs
WHEREAS, an advance clearance system for bulk and break bulk cargoes is required
in accordance with the objectives of the World Customs Organization International
Convention on the Simplification and Harmonization of Customs Procedures otherwise
known as the Revised Kyoto Convention;
WHEREAS, to facilitate the assessment of bulk and break bulk cargoes, the capability
of the Bureau of Customs in cargo surveying should be enhanced by harnessing available
technical support, if possible at no cost to the government;
WHEREAS, there is a need to obtain and secure critical information required for the
proper inspection, classification and valuation of bulk and break bulk cargoes using measure
compliant with customs international best practices and global trade standards;
WHEREAS, the responsibility, accountability and liability of accredited surveying

companies/surveyors should be defined under the accreditation program.
WHEREAS, revenue collection should be protected and maximized by ensuring the

correct assessment of duties and taxes on bulk and break bulk cargoes
WHEREAS, Section 31, Chapter 10, Title III, Book III of Executive Order Number
292, otherwise known as the Administrative Code of 1987 expressly grants the President
the continuing authority to reorganize the executive branch of the government;
NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Republic of the

Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Creation of Committee for Accreditation of Cargo Surveying Companies

(CACSC) - A committee is hereby created hereinafter known as the Committee for
Accreditation of Cargo Surveying Companies (CACSC) to be composed of the following:
1. Authorized representative from the Office of the President;

2. Authorized representative of the Secretary of Finance;
3. Deputy Commissioner of Customs authorized by the Commissioner; and

4. Two authorized representative(s) of duly recognized industry associations.
SECTION 2. Function - The CACSC shall have the function of overseeing the Deputy
Commissioner authorized by the Commissioner to undertake the following:
A. To grant, approve, defer or deny the application for accreditation of Cargo Surveying
Companies/Surveyors or the renewal of the same;
B. To monitor and regularly review the performance of accredited Cargo Surveying
Companies/Surveyors;
C. To recommend suspension or revocation of accreditations to the Commissioner of
Customs;
D. To perform such other functions relative to the implementation of this Administrative
Order;
E. To consult with the Ports Transparency Alliance created pursuant to Letter of
Instructions No. 5 of the President of the Philippines dated 12 March 2008 to the
Department of Finance and the Bureau of Customs (BOC).
SECTION 3. Required Voting - No application for accreditation shall be approved or

disapproved without the consent of a majority of members of CACSC present in a meeting
duly called for such a purpose.
SECTION 4. Period to Approve Application - The CACSC shall approve or disapprove

all applications for accreditation within fifteen (15) days from receipt of said application
with complete supporting documents in accordance with the requirements for accreditation.
SECTION 5. Documentary Requirements - The following documentary requirements

for accreditation of surveying companies shall be submitted before any application for
accreditation shall be processed:
a. Certified Copy of Articles of Incorporation and Certificate of Registration;

b. Local Business Permit;
c. Certified list of not less than twenty (20) regular clients-importers and exporters
for the last three (3) years immediately preceding the application;
d. Certified Copy of the Audited Financial Statements submitted to the Securities
and Exchange Commission, Bureau of Internal Revenue (BIR) or equivalent Office
for the immediately preceding year;
e. Certified Copy of the updated list of corporate officers and surveyors;
f. Certified Copy of the BIR Certificate of Registration;
g. Authenticated Copies of the Membership Certificate issued by the International
Federation of Inspection Agencies;
h. Certification under oath by a responsible official of the company that it has not
been blacklisted or its services terminated by any Government or international entity
on the grounds of poor performance and/or irregularity in dealings in any country three
(3) years immediately preceding the application;
i. Such other documents as may be required by the Commissioner of Customs and
the CACSC.
All documents obtained abroad shall be duly notarized by the Philippine Consular
office concerned before they are considered acceptable.
SECTION 6. Effectivity of Accreditation - The accreditation of Surveying Companies/

Surveyors shall be effective for three (3) consecutive years, unless sooner revoked for
cause.
SECTION 7. Renewal of Accreditation - Applications for renewal of accreditation

shall be filed not earlier than ninety (90) calendar days but not later than thirty (30) days
prior to the date of expiration of accreditation. A penalty determined by the Committee
shall be imposed on applications filed beyond the prescribed period.
SECTION 8. Suspended or Revoked Accreditation - No certificate of application for

renewal of accreditation shall be accepted if the Certificate of Accreditation has been
suspended or revoked for cause during the time it was subsisting, unless subsequently
lifted by the Commissioner of Customs upon the favourable recommendation of the CACSC.
SECTION 9. Confidentiality Clause - All accredited surveying companies shall provide

a Service Level Undertaking and execute a Non-Disclosure Agreement in favour of and in
such form as required by the BOC.
SECTION 10. Violation/Penalties - Any violation of the provisions of this Order shall
cause the suspension or revocation of the accreditation of the surveying company after
due process, without prejudice to the filing of appropriate administrative, civil or criminal
charges against erring cargo surveying companies/surveyors thereafter.
SECTION 11. Sanctions for BOC Personnel - Any official or employee of the BOC
found to have violated any of the provisions of this Order shall be immediately relieved and
placed under administrative suspension after due process.
SECTION 12. Definition of Terms
12.1 Surveying Company - A reputable company with an international office network

in all countries supplying imported articles to the Philippines and engaged in the business
of cargo surveying of shipments.
12.2 Accredited Cargo Surveying Company - A surveying company possessing a

duly approved accreditation issued by the BOC.
12.3 CACSC - A committee created, tasked and authorized to oversee the granting
and approval of accreditation of cargo surveying companies/surveyors and periodic review
of the performance thereof.
12.4 Bulk Cargo - Cargoes in a mass of one commodity not packaged, bundled,
bottled or otherwise packed; those cargoes (dry or liquid) which are loaded (shovelled,
scooped, forked, mechanically conveyed or pumped) in volume directly into a vessel’s
hold or cargo that is unbound as loaded; without count in a loose unpackaged form.
12.5 Break Bulk Cargo - Non-containerized general cargo stored in boxes, pallets or
other individual units to be loaded onto or discharged from vessels. Those cargoes loaded
individually and described in terms of quantity and weight (e.g. steel coils, logs, sacks of
rice), and not in shipping containers nor in bulk as with oil or grain.
12.6 Break/Break Bulk Cargo Surveying - The inspection, analysis and/or computation
of bulk or break bulk cargo for the purpose of determining the correct dutiable weight,
quantity, description of goods in tariff terms, and/or cargo make or quality.
12.7 Customs Survey Inspectors (CSI) - A team of BOC officers and personnel with
special qualifications and technical training in cargo inspection and surveying and capable
of rendering efficient and reliable survey or examination reports.
SECTION 13. Separability - If any portion or provisions of this Order shall be deemed
invalid and unconstitutional for any reason, the remaining portions, insofar as they can
stand on their own, shall be given full force and effect.
SECTION 14. Effectivity - This Order shall take effect fifteen (15) days after its
complete publication in a national newspaper of general circulation.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Authorizing the Department of Agriculture the Use of P4.0 Billion from Fees,
Revenues and Receipts from Service Contract (SC) No. 38 for the Rice Self-
Sufficiency Programs of the Government
WHEREAS, Section 8 of PD No. 910 dated March 22, 1976, as amended by R.A.
No. 7638, provides that all fees, services and receipts from any or all sources including
receipts from service contracts and agreements collected by the Department of Energy
(DOE) shall form part of a Special Fund to be used to finance energy resource development
and exploration programs and projects of the government, and for such other purposes as
may be directed by the President;
WHEREAS, in the State of the Nation Address by the President on July 28, 2008, it
was declared therein that there will be release of funds from the Malampaya national
revenues/royalties to support the rice self-sufficiency programs of government;
WHEREAS, Executive Order No. 683, S. 2007, authorizes the Department of Budget
and Management (DBM) to release funds from SC No. 38 revenues upon the endorsement
and submission, among other requirements, by the Department of Energy (DOE) and/or
PNOC Exploration Corporation of a directive from the Office of the President.

of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order:
SECTION 1. Subject to existing laws, and the usual government accounting and
auditing rules and regulation, the Department of Budget and Management (DBM) is hereby
authorized to release the amount of FOUR BILLION (P4.0B) PESOS from the Malampaya
revenues (Service Contract No. 38) to the Department of Agriculture to be used in the rice
self-sufficiency programs of government, as follows:
a. Agricultural Guarantee Fund Pool (P2.0 Billion) - established under Administrative Order
No. 225-A (s. 2008) and held in trust with the Land Bank of the Philippines (Account No.
T.A. No. 05-206) shall be used to mitigate the risk involved in agriculture lending by provid-
ing guarantee-cover to unsecured loan financing extended by financial institutions and
other parties to new small farmers engaged in rice and food production projects/activities,
thereby facilitating the provision of credit in the sector; and
b. Rice Self-Sufficiency & other Commodity Program (P2.0 Billion) - to augment DA funds
to provide seeds and location specific interventions in addressing rice self-sufficiency tar-
gets and securing availability of food commodities at stable prices.
SECTION 2. The Department of Agriculture shall be accountable for the implementation

of the rice self-sufficiency programs and the expenditures thereon, subject to applicable
laws and existing budgeting, accounting and auditing rules and regulations.
SECTION 3. This Order shall take effect immediately.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the
Republic of the Philippines to be affixed.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Creating a Presidential Task Force for the Mindanao

River Basin Rehabilitation and Development
Text Available at the Office of the National Administrative Register

--o0o--
Further Expanding the Delineated Legazpi Port Zone as

Provided for Under Executive Order No. 347, Series of 1996,
As Amended by Executive Order No. 166, Series of 1999

--o0o--
Transferring the Operation, Management, Maintenance

and Development of the MacArthur Park Beach Resort from the
Philippine Tourism Authority to the Provincial Government of Leyte
WHEREAS, the super region called Central Philippines, which includes the province
of Leyte, has the competitive edge in tourism in the natural wonders of the super region
and the natural warmth of its people;
WHEREAS, the role of the National Government is to provide the roads to those
wonders and the means to take the tourists there rather than to manage resorts;
WHEREAS, the Philippine Tourism Authority operates and manages the MacArthur
Park Beach Resort (the Resort) located in Palo, Leyte;
WHEREAS, the land where the resort stands is fully owned by the province of Leyte;
WHEREAS, the province of Leyte has been investing much in improving its economic
and social condition;
WHEREAS, the Provincial Government of Leyte believes that it can do more, given
the opportunity, particularly in the area, of tourism generation and development;

of the Philippines, by virtue of the powers vested in me by law, hereby order:
SECTION 1. Transfer of Operation, Control, Management, Maintenance and

Development - The operation, control, management, maintenance and further development
of the MacArthur Park Beach Resort, including all facilities and improvements thereon, are
hereby transferred from the Philippine Tourism Authority (PTA) to the Provincial Government
of Leyte.
SECTION 2. PTA Employees - The PTA Employees at the MacArthur Park Beach
Resort shall be transferred to the Provincial Government of Leyte, which may rationalize
the personnel complement of the Resort in accordance with Civil Service rules and
regulations.
SECTION 3. Control and Supervision - The Provincial Government of Leyte shall

have full control of the operation, management, maintenance and further development of
the Resort.
SECTION 4. Prohibited Acts - The Provincial Government of Leyte shall not

encumber, mortgage or alienate any structure of the Resort unless approved by the Secretary
of Tourism.
SECTION 5. Revenues - All revenues and collections generated from the Resort
shall accrue to the treasury of the Provincial Government of Leyte and shall first be used
for the operation, management and maintenance of the Resort. Any net profit not needed
for management, operation and maintenance of the Resort shall be shared equally by the
province and the PTA.
SECTION 6. Promotions and Technical Assistance - The Department of Tourism

shall provide the same promotional support and technical assistance for the Resort as
privately-run resorts.
SECTION 7. Repealing Clause - All other executive issuances, rules and regulations
or parts thereof which are inconsistent with the provisions of this Executive Order are
hereby repealed, amended or modified accordingly.
SECTION 8. Effectivity - This Executive Order shall take effect immediately.
BY THE PRESIDENT:
Executive Secretary
--o0o--
Placing the Mindanao Economic Development Council (MEDCo) Under the

Oversight of the National Economic and Development Authority (NEDA)
WHEREAS, the Mindanao Economic Development Council (MEDCo) was created

pursuant to Executive Order No. 512 dated 19 March 1992, as amended, to promote and
coordinate the active and extensive participation of all sectors to effect the socio-economic
development of Mindanao;
WHEREAS, Executive Order No. 496 dated 23 January 2006 placed MEDCo under
the oversight of the Office of the Presidential Adviser on the Peace Process (OPAPP);
WHEREAS, the National Economic and Development Authority (NEDA) is primarily

responsible for formulating continuing, coordinated and fully integrated social and economic
policies, plans and programs;
WHEREAS, for administrative expediency and economy, and consistent with the
policy that all socio-economic programs and activities of the government shall be
programmed within the context of well-formulated and consistent long, medium and short-
term development plans and policies to promote both the growth of the equitable distribution
of the benefits of such growth to the members of society, there is a need to place MEDCo
under the oversight of NEDA;

SECTION 1. The Mindanao Economic Development Council (MEDCo) is hereby

placed under the oversight of the National Economic and Development Authority (NEDA).
NEDA shall provide general supervision to MEDCo in the formulation of continuing and
integrated socio-economic development plans, policies and programs, and in the exercise
and implementation of its regular functions provided under Executive Order No. 512, Series
of 1992, as amended by Executive Order No. 244, Series of 2000.
SEC. 2. Executive Order No. 496, Series of 2006 and all issuances, rules and
regulations or parts thereof which are inconsistent with this Executive Order, insofar as
MEDCo is concerned, is hereby repealed or modified accordingly.
SEC. 3. This Executive Order shall take effect fifteen (15) days following its publication
in a national newspaper of general publication.
BY THE PRESIDENT:

Executive Secretary
--o0o--

Creating a Task Force Against Illegal Recruitment
WHEREAS, the Presidential Anti-Illegal Recruitment Task Force (PAIRTF) created

pursuant to Executive Order (EO) No. 325, series of 2004, and tasked, among others to
develop and execute strategies and schemes against the modus operandi of illegal recruiters,
was automatically dissolved after a year from its effectivity;
WHEREAS, EO No. 548, series of 2006, created the Task Force Against Illegal
Recruitment (TFAIR) under the supervision of the Commission on Filipino Overseas (CFO),
which carried the same functions as that of the dissolved PAIRTF;
WHEREAS, EO No. 548-A, series of 2007, amending EO 548, series of 2006,

redefined the mandate of the CFO and redirected its efforts to anti-human trafficking activities;
and likewise reiterated the anti-illegal recruitment functions of the Philippine Overseas
Employment Administration (POEA) pursuant to the Omnibus Rules and Regulations
Implementing Republic Act No. 8042, otherwise known as the Migrant Workers and Overseas
Filipino Act of 1995;
WHEREAS, the continued incidence of illegal recruitment has remained a serious

and persistent problem that has reached alarming proportion as to cause public concern;
WHEREAS, it is of critical importance that the State safeguards public interest and
protect the Filipino workers from losing their hard earned money and property to unscrupulous
recruiters and syndicates, and save the Government from incurring expenses due to
repatriation of victims of illegal recruitment;
WHEREAS, there is a need to create a new Task Force Against Illegal Recruitment
under the supervision of Vice President Noli De Castro, being the Presidential Adviser on
Overseas Filipino Workers, in order to ensure a more focused, coordinated and effective
Program of Action to curb illegal recruitment;
WHEREAS, the Administrative Code of 1987 provides that the President has the
continuing authority to reorganize the administrative structure of the Executive Branch of
the government.

SECTION 1. Creation of a Task Force. There is hereby created a Task Force Against
Illegal Recruitment (TFAIR), which shall be under the control and supervision of Vice President
Noli De Castro, for policy and program coordination.
SECTION 2. Composition. The TFAIR shall be composed of the following:
Chairman : Vice President Noli De Castro

Vice Chairman : Commissioner, Bureau of Immigration
Members : Secretary, Department of Foreign Affairs
Secretary, Department of Justice

Secretary, Department of Labor and Employment
Head, Philippine National Police (PNP)
Criminal Investigation and Detection Group (CIDG) Anti
Transnational Division
Director, National Bureau of Investigation
Administrator, Philippine Overseas Employment Agency
General Manager, Manila International Airport Authority
The Chairman may designate other members as he may deem necessary to carry
out the function of TFAIR.
SECTION 3. Functions. The TFAIR shall coordinate programs and initiatives of all
government agencies concerned in addressing the problem of illegal recruitment, which
shall include, but not limited to the following:
a. development and execution of strategies and schemes against the modus operandi
of illegal recruiters, such as “escort” services, within our international airports and other
ports of departure;
b. development and execution of strategies against syndicates responsible for

tampering and sale of spurious passports and travel documents; and
c. ensuring the prosecution of illegal recruiters and syndicates as well as their

protectors.
SECTION 4. Powers. In pursuit of its functions as defined in the preceding Section,

the TFAIR shall have the responsibility and authority to:
a. conduct surveillance and entrapment operations of persons alleged to be engaged

in illegal recruitment including, but not limited to, “escort” services at international airports
and other points of departure, and to effect warrants of arrests through its law enforcement
arm;
b. cause or direct the immediate investigation and speedy prosecution of cases

involving illegal recruitment and monitor progress of such cases;
c. coordinate with existing bodies, agencies and other instrumentalities currently

involved in the campaign against illegal recruitment; and
d. perform other powers and functions as may be necessary for the effective discharge
of its function or as may be directed by the President.
SECTION 5. Operational and Law Enforcement Arm. The PNP-CIDG Anti-

Transnational Crime Division shall serve as the operational and law enforcement arm of the
TFAIR.
SECTION 6. Secretariat. The POEA shall serve as the Secretariat of the TFAIR, and
shall prepare and submit periodic reports to the Office of the President, through the TFAIR
Chairman.
SECTION 7. Office. The PNP-CIDG Anti-Transnational Crime Division shall provide

sufficient space at its Headquarters at Camp Crame, Quezon City to serve as the principal
office to the TFAIR.
SECTION 8. Assistance and Cooperation. All other government agencies are hereby
directed to actively cooperate with and support the anti-illegal recruitment campaign, as
well as coordinate and cooperate with the TFAIR. For this purpose, the Chairman may call
upon the heads of government agencies for assistance, as may be necessary.
SECTION 9. Funding. Initial Funding for the operations of the TFAIR shall be sourced
from the available funds of the Presidential Anti-Organized Crime Commission. All other
government agencies involved in the Campaign against illegal recruitment are authorized
to allocate from their existing funds such amounts as may be necessary from the additional
funding requirements that may be needed by the TFAIR, subject to the usual government
accounting and auditing rules and regulations.
SECTION 10. Repealing Clause. All orders, rules and regulations and issuances, or
parts thereof, which are inconsistent with this Executive Order, are hereby repealed,
amended or modified accordingly.
SECTION 11. Effectivity. This Executive Order shall take effect immediately upon its
publication in a national newspaper of general circulation and shall remain in full force for a
period of two (2) years.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Transferring the Council for the Welfare of Children/National Early

Childhood Care and Development Coordinating Council from the
Department of Social Welfare and Development to the
Office of the President
WHEREAS, Presidential Decree No. 603 (1974) created the Council for the Welfare
of Children (CWC) under the Office of the President with the primary function of coordinating
and monitoring the implementation and enforcement of all laws relative to the promotion of
child and youth welfare;
WHEREAS, Executive Order No. 233 (1987) redefined the role, structure and
membership of the Council in order to enable it to more effectively carry out its responsibilities
in ensuring the cooperation of the government agencies concerned with child and youth
welfare and development and it was made as an attached agency of the Department of
Social Welfare and Development (DSWD);
WHEREAS, by virtue of Republic Act No. 8980 (2000), the Council shall also function
as the National Early Childhood Care and Development Coordinating Council (NECDCC)
which was organized to ensure that sustained inter-agency and multi-sectoral collaboration
from the national, provincial, city/municipal to barangay levels to institutionalize a national
system for Early Childhood Care and Development (ECD) and the Council/NECCDCC
shall be under the Office of the President;
WHEREAS, Executive Order No. 630 (2007) provides for the transfer of the Council
for the Welfare of Children/National Early Childhood Care and Development Coordinating
Council from the Office of the President to the Department of Social Welfare and
Development;
WHEREAS, in order to effectively oversee and supervise the Government’s efforts

towards strengthening the efforts in institutionalizing a national system for Early Childhood
Care and Development (ECCD);
WHEREAS, under Section 31, Chapter 10, Title II, Book III of the Administrative
Code of 1987, the President has the continuing authority to reorganize the administrative
structure of the Office of the President;

SECTION 1. The Council for the Welfare of Children/National Early Childhood Care
and Development Coordinating Council is hereby transferred from the Department of Social
Welfare and Development to the Office of the President.
SECTION 2. The Chairperson of CWC/NECCDCC shall be appointed by the President.
SECTION 3. All orders, issuances, rules and regulations or parts thereof inconsistent
with this Executive Order are hereby repealed or modified accordingly.
SECTION 4. This Executive Order shall take effect fifteen (15) days after completion
of its publication in a newspaper of general circulation.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Declaring and Delineating the Cuyo Port Zone Under the

Administrative Jurisdiction of the Philippine Ports Authority

--o0o--
Memorandum Circular No. 166
Enjoining All Officials and Employees of the Government Including

Government-Owned and Controlled Corporations, State Universities and
Colleges, and Government Employees’ Associations to Support
the Botika ng Bayan (BnB) Project
The Government recognizes the rising cost of living because of the high prices of
goods and services, including medicine and other health products.
In upholding the Government’s commitment to continuously address the needs of

the people through good governance and the availability of safe, effective, and affordable
medicine, the Arroyo Administration encourages and supports all endeavors related to
minimizing the cost of medicine for every Filipino.
As part of said commitment, all officials and employees of the Government, including
government-owned and controlled corporations, state universities and colleges, and
government employees’ associations, are hereby called upon to support the Botika ng
Bayan (BnB) Project, and the efforts of the Philippine Government Employees Association
(PGEA), in cooperation with the Philippine International Trading Corporation - Pharma, Inc.
(PTIC-PI), which are related to the BnB Project.
IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the
Republic of the Philippines to be affixed hereto.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Memorandum Circular No. 168
Directing the Cabinet to Implement Pro-Poor Programs in All Regions
WHEREAS, the generation of employment and livelihood opportunities for targeted

income groups is the country’s best preparation in thwarting the problems brought about
by the global credit crunch;
WHEREAS, the inspired and coordinated efforts to prop up the banking system and
prevent a credit freeze should not divert the Administration’s attention from putting in place
an economic imperative - the protection of the most vulnerable sectors of society through
the generation of jobs and livelihood opportunities;
WHEREAS, the cushion and lifeline provided by the emergency work programs in
the early 1930’s and in the early 1960’s remain relevant today.
IN VIEW OF THE FOREGOING, all members of the Cabinet are directed to draw up
and prepare emergency work programs and doable and fundable livelihood projects within
the following parameters:
1. The intended beneficiaries of these emergency work programs shall be the middle
class, middle-low income class and the poorest of the poor.
2. Each program should be closely coordinated with the LGUs and non-government orga-
nizations in all regions and provinces, with the possibility of counterpart scheme being
entertained;
3. All departments and national agencies are directed to mobilize all their remaining
resources, including contingency funds, to finance the pro-poor programs;
4. The livelihood and job programs shall be prepared by factoring in the context and eco-
nomic and social environment of each region;
5. To ensure efficiency in the execution of the programs, each department shall act as
program steward of a particular region. Departments with frontline tasks of implementing
poverty alleviation work and vital social overhead (DA, DOLE, DSWD, DPWH, DENR,
DOTC, DOT, etc.) shall be program stewards to more than one region;
6. Exceptional technologies or products manufactured at the grass roots level on a small

scale basis that may be encountered in the drafting of programs shall be identified in a
formal report so that niches for these can be found in the broader market.
7. In consultation with the Cabinet Secretaries concerned, the Presidential Management

Staff shall propose to the Executive Secretary the assigned region or regions to a particu-
lar department. The steward concept shall result in effective monitoring of the program
delivery and implementation.
All members of the Cabinet shall submit their respective proposed job and livelihood
generating programs on or before October 28, 2008.
BY AUTHORITY OF THE PRESIDENT:

Executive Secretary
--o0o--
Administrative Order No. 241-A
Amending Administrative Order No. 241, Series of 2008
WHEREAS, Administrative Order No. 241 dated 02 October 2008 was issued to
expedite the implementation of Republic Act No. 9485, otherwise known as the “Anti Red
Tape Act of 2007”, and its Implementing Rules and Regulations which the Civil Service
Commission promulgated through its Resolution No. 081471 dated 24 July 2008;
WHEREAS, there is an imperative need to further speed up the enforcement of the

said law for the effective realization of the State’s policy of promoting integrity, accountability,
proper management of public affairs and public property as well as its goal of establishing
effective practices aimed at preventing graft and corruption in the government and ensuring
its guaranteed performance level for the clientele and the public in general;

of the Philippines, by virtue of the powers vested in me by law, do hereby amend
Administrative Order No. 241 dated 02 October 2008, as follows:
SECTION 1. Section 1, 1st paragraph of Administrative Order No. 241 is hereby

“SECTION 1. STREAMLINING AND POSTING OF PROCEDURES. All

departments, bureaus, offices and instrumentalities of the government, including
government financial institutions and government-owned and controlled
corporations, hereinafter referred to as “agencies”, shall streamline and post
the procedures for the twenty (20) most heavily utilized processes or services
not later than December 31, 2008.”
SECTION 2. Section 2, 1st paragraph of Administrative Order No. 241 is hereby

“SECTION 2. PUBLIC ASSISTANCE AND COMPLAINTS DESKS AND

HOTLINES. All agencies shall establish in their respective offices a public
assistance and complaints desk and provide the public hotline number/s which
should be purposely set up to effectively receive feedback and monitor customer
satisfaction in conformity with Rule VI of the IRR of RA 9485 December 31,

2008.”
SECTION 3. Repealing Clause. All administrative orders, rules and regulations and
other issuance or parts thereof, which are inconsistent with this Administrative Order, are
hereby revoked, amended, or modified accordingly.
SECTION 4. Effectivity. This Administrative Order shall take effect immediately.
(SGD.) GLORIA MACAPAGAL-ARROYO
BY THE PRESIDENT:

Executive Secretary
--o0o--
Executive Order No. 721-A
Amending Executive Order No. 721 Entitled “Encouraging Large

Corporations to Provide for Rice Requirements of the Employees”
WHEREAS, there are global clouds on the horizon that are driving up the price of oil
and food, particularly rice;
WHEREAS, the issue of rice management is a global concern that this Administration
has seen coming, and it has worked to head off for some time now;
WHEREAS, this Administration’s response to the global rice issue is based on

ensuring the supply of rice, making sure that distribution of rice gets to the people who
need it most, efficiently and cost-effectively, and being vigilant against unscrupulous vendors,
who divert subsidized rice and sell it as commercial rice.

of the Philippines, by virtue of the power vested in me by law, do hereby order:
SECTION 1. For a period to be recommended by the Department of Agriculture

(DA), but in no case less than two years from the effectivity of this Executive Order, large
corporations shall be encouraged to provide the rice requirements of their respective
employees either by engaging in the production of rice as hereafter provided, or by importing
rice to meet the requirements.
SECTION 2. For purposes of this Executive Order, large corporations shall pertain to
corporations duly organized and existing under Philippine laws that have five hundred (500)
employees or more, provided that, said corporations have reported profit in the last four
years before this Executive Order, and they can engage in the production or importation of
the rice requirements of their employees without substantially affecting their financial viability.
The National Food Authority (NFA) is hereby ordered to generate a list of the large
corporations, as defined herein.
SECTION 3. Large corporations with existing landholdings determined to be suitable

for rice production by the DA that decide to engage in said production shall be encouraged
to do so, within a period to be determined by the DA.
Large corporations without landholdings for rice production that decide to engage in
rice production, pursuant to this Executive Order, may engage in rice production and may
lease public agricultural lands or idle agricultural lands, subject to the agreement of the
landowner thereof.
Large corporations that decide to import rice shall signify their intention to do so with
the NFA and shall be governed in such importation by law.
For purposes of this Section, large corporations may register with the NFA at any
time during the effectivity of this Executive Order.
SECTION 4. Rice importations pursuant to this Executive Order shall be coursed

through the NFA and shall be eligible for fiscal privileges, within the authority of the NFA to
provide. However, the NFA may charge reasonable fees for services rendered for such
importation.
SECTION 5. Any rice production, pursuant to this Executive Order, which is in excess
of the consumption requirements of the employees of a subject large corporation, may be
sold in the local markets.
SECTION 6. The DA, upon consultation with the Department of Agrarian Reform, the
Department of Environment and Natural Resources, the Board of Investments, and the
Department of Finance, shall develop a package of fiscal or non-fiscal incentives, as may
be allowed by law, for the effective implementation of this Executive Order.
SECTION 7. Large corporations may enter into any agreement or form associations
for the purpose of engaging in rice production pursuant to this Executive Order.
SECTION 8. The DA shall formulate and issue Implementing Rules and Regulations
(IRR) of this Executive Order in consultation with concerned government agencies and the
private sector.
SECTION 9. Moral suasion and not compulsion shall be applied to the large
corporations in carrying out the purposes of this Executive Order.
SECTION 10. Executive Order No. 721 is hereby amended and superseded by this
Executive Order.
SECTION 11. This Executive Order shall take effect immediately after publication in
a newspaper of general circulation.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Prescribing Guidelines for the Issuance of A Special Visa to

Non-Immigrants for Employment Generation
WHEREAS, there are foreigners who want to maintain a lawful presence in the
Philippines by actually, directly or exclusively engaging in lawful, viable, and sustainable
trade, business, industry, or activity offering local employment;
WHEREAS, according to the April 2008 survey of the National Statistics Office
(NSO), there are 2.9 million Filipinos who are currently unemployed;
WHEREAS, creation of job opportunities for the Filipino is one of the advocacies of
the Arroyo Administration under its 10-point Agenda;
WHEREAS, Commonwealth Act (CA) No. 613, otherwise known as the Philippine
Immigration Act of 1940, as amended, authorizes the President, when public interest so
warrants, to admit as non-immigrants, foreigners not otherwise provided for by the Act,
who are coming for a temporary period only, under such conditions as may prescribed;
WHEREAS, public interest, particularly on an aspect of employment generation for

Filipinos warrants the admission of these foreigners as special non-immigrants under Section
47 (a)(2) of CA No. 613, as amended;

SECTION 1. Special Visa for Employment Generation (SVEG) - The SVEG is a

special visa issued to a qualified non-immigrant foreigner who shall actually employ at
least ten (10) Filipinos in a lawful and sustainable enterprise, trade, or industry. Qualified
foreigners who are granted the SVEG shall be considered special non-immigrants with
multiple entry privileges and conditional extended stay, without need of prior departure
from the Philippines.
The privileges of this Executive Order may extend to the qualified foreigner’s spouse
and dependent unmarried child/children below eighteen (18) years of age whether legitimate,
illegitimate or adopted.
SECTION 2. Who may avail - Non-immigrant foreigners who wish to avail of the
SVEG should comply with the following conditions:
a. The foreigner shall actually, directly or exclusively engage in a viable and sustainable
commercial investment/enterprise in the Philippines, exercises/performs management acts
or has the authority to hire, promote and dismiss employees;
b. He evinces a genuine intention to indefinitely remain in the Philippines;
c. He is not a risk to national security; and
d. The foreigner’s commercial investment/enterprise must provide actual employment

to at least ten (10) Filipinos in accordance with Philippine labor laws and other applicable
special laws.
The above-mentioned requirements must be continually satisfied by the foreigner for

him/her to continue to be a holder of the SVEG.
SECTION 3. Application for SVEG - (a) Upon payment of regulatory fees, the
Commissioner of Immigration shall receive and resolve SVEG applications within fifteen
(15) days from the date of filing. Documentary proofs required by the Commissioner of
Immigration shall be evaluated and reviewed without strict observance to the technicalities
of evidence and procedure.
(b) Upon favorable review, the Commissioner of Immigration shall issue a Notice of
Approval directing the foreigner-applicant to report for registration and documentation at
the Bureau of Immigration. An Alien Certificate of Registration (ACR) I-Card and an
Identification Certification (IC) shall be issued upon payment of appropriate fees. The ACR
I-Card and the IC shall indicate among others, the following:
“Status Adjusted without Departure as a Special Non-immigrant with Multiple

Entry Privileges and Conditional Extended Stay in the Philippines under (this
Executive Order)”
(c) Otherwise, the Commission shall issue a Notice of Disapproval informing the
foreigner applicant of the denial of his application. Within fifteen (15) days from receipt of
such disapproval, the foreigner-applicant may file a Motion for Reconsideration (MR) for
the review of his application. Only one (1) such Motion shall be entertained.
(d) The Commissioner of Immigration shall monitor the continued compliance by the
foreigners of the requirements of the SVEG.
(e) All fees collected by the Bureau of Immigration shall be acknowledged by bonded
collecting officers via issuance of official receipts. These collections shall be accounted for
as government funds and subject to strict auditing procedures.
SECTION 4. Revocation of the SVEG - (a) The Commissioner of Immigration shall

revoke the SVEG granted: (i) If the SVEG holder fails to maintain compliance of any of the
conditions set forth in Section 2 hereof; (ii) If it was obtained through fraud or willful
misrepresentation of material facts; (iii) Upon conviction of the foreigner by final judgment
for a crime or offense in the Philippines; or (iv) A final determination by competent authority
that the foreigner poses a risk to national security.
(b) A foreigner whose special non-immigrant status is revoked under Sections 4

(a)(i), 4(a)(ii) or 4(a)(iv) hereof shall be deported via summary proceedings. In the case of
revocation under Section 4(a)(iii), the foreigner shall be deported after the service of sentence.
(c) A foreigner deported by the BI Board of Commissioners under this Section shall
be transported to the country whence he came, or to the foreign port where he embarked
for the Philippines, or to the country of his nationality of or of which he is a citizen or
subject, or to the country in which he resided prior to his coming to the Philippines.
SECTION 5. Implementing Rules and Regulations and the One-Stop-SVEG Facility

- Within thirty (30) days from the signing of this Executive Order, the Commission of
Immigration, together with representatives from the Department of Justice (DOJ), the
Department of Finance (DOF), the Department of Trade and Industry (DTI), the Department
of Foreign Affairs (DFA), the Department of Labor and Employment (DOLE), the National
Intelligence Coordination Agency (NICA) as well as other concerned government agencies,
local or foreign chambers of commerce, and stakeholders as determined by the
Commissioner of Immigration, shall promulgate the necessary Implementing Rules and
Regulations (IRR) to ensure the orderly issuance of the SVEG.
Such IRR shall provide for the establishment of a One-Stop-SVEG Facility within the
Bureau of Immigration with the participation of the departments and agencies
abovementioned, to assist interested foreigners in the processing of documentary
requirements to support their SVEG application (i.e. Alien Employment Permit from the
DOLE, etc.)
The IRR shall take effect fifteen (15) days after the completion of its publication in at
least two (2) newspapers of general circulation. Copies of the IRR shall be sent to the
Office of the President, the Secretary of Justice, and the National Administrative Register
at the U.P. Law Center.
SECTION 6. Reportorial Requirements - The Commissioner of Immigration shall

submit regular monthly reports on the implementation of this executive order to the Office
of the President and the Secretary of Justice.
Certified copies of the SVEG issued by the Commissioner of Immigration pursuant

to this Executive Order, including the supporting documents thereon, shall likewise be
furnished to the Secretary of Justice for proper departmental recording and review.
SECTION 7. Construction - Nothing in this Executive Order shall be construed to

diminish or otherwise preclude the President as Chief Executive, and the Secretary of
Justice as Department Head, from exercising their respective powers and authorities over
the Bureau of Immigration, pursuant to the provisions of the Revised Administrative Code
and other existing laws, executive issuances, rules, and regulations.
SECTION 8. Separability Clause - If any provision of this Executive Order is declared

invalid or unconstitutional, the provisions not affected thereby shall continue in force and
effect.
SECTION 9. Repealing Clause - The provisions of other executive issuances,

departmental/administrative orders, circulars, instructions, directives and memoranda
inconsistent herewith are hereby repealed or modified accordingly.
SECTION 10. Effectivity - This Executive Order shall take effect fifteen (15) days
after completion of its publication in at least two (2) newspapers of general circulation.
BY THE PRESIDENT:

Executive Secretary
--o0o--
Declaring and Delineating the San Ricardo Port Zone Under the
Administrative Jurisdiction of the Philippine Ports Authority
WHEREAS, the Port of San Ricardo, Barangay Benit, Municipality of San Ricardo,
Province of Southern Leyte, is being proposed for development;
WHEREAS, the development of the said port will promote rapid development of the
areas concerned through improved trade, commerce and tourism activities;
WHEREAS, the port zone delineation, which has a total area of 78,137.97 square
meters, more or less, is necessary to establish the territorial jurisdiction of the San Ricardo
Port for its proposed developments;

SECTION 1. The territorial jurisdiction of the Port of San Ricardo, Barangay Benit,
Municipality of San Ricardo, Province of Southern Leyte, is hereby delineated and
established and particularly described as follows:
“Beginning at point marked 1 on the plan, thence to point 2 at a distance of

44.00 meters with bearing N180 02’E, thence to point 3 at a distance of 102.00
meters with bearing N360 29’E, thence to point 4 at a distance of 302.00 meters
with bearing S70 49’E, thence to point 5 at a distance of 234.00 meters with
bearing S120 11’W thence to point 6 at a distance of 360.00 meters with bearing
N740 33’W, thence to point 1, the point of beginning with a distance of 88.00
meters with bearing N190 28’E, all in all comprising a total read of 78,137.97
square meters more or less.”
SECTION 2. The San Ricardo Port Zone, as delineated and established, is hereby
placed under the administrative jurisdiction of the Philippine Ports Authority, which shall,
consistent with the regional industrial plans of the Government, implement a program in
the proper zoning, planning, development and utilization of the port.
SECTION 3. All orders, proclamations and issuances or portions thereof, which are
inconsistent with this Executive Order, are hereby repealed or modified accordingly.
SECTION 4. This Executive Order shall take effect immediately.

BY THE PRESIDENT:
Executive Secretary
--o0o--
Placing the Office on Muslim Affairs Under the

Oversight of the Office of the President
I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by

virtue of the powers vested in me by law, do hereby order:
SECTION 1. The Office on Muslim Affairs is placed under the oversight of the Office
of the President.
SECTION 2. Executive Order No. 697, dated 18 January 2008, is hereby repealed.
All other issuances, rules and regulations or parts thereof which are inconsistent with this
Executive Order are hereby repealed or modified accordingly.
SECTION 3. This Executive Order shall take effect immediately.
BY THE PRESIDENT:
Executive Secretary
--o0o--
Temporarily Modifying the Rates of Import Duty on Wheat

Under Section 104 of the Tariff and Customs Code of 1978
(Presidential Decree No. 1464), As Amended
WHEREAS, a reduction on tariff on food wheat would help stabilize the price of bread
and other baked food products;
WHEREAS, a reduction on tariff on feed wheat would help lower the cost of feed
ingredients and keep the prices of poultry and livestock products stable;
WHEREAS, setting the rate on food and feed wheat at the same level aims to prevent
technical smuggling;
WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree
No. 1464), as amended, empowers the President of the Republic of the Philippines to
increase, reduce, or remove existing rates of import duty, as well as to modify the form of
duty and the tariff nomenclature, under Section 104 of the Code.
SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under
Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the
Most-Favored-Nation (MFN) rate of import duty in accordance with the schedule indicated
opposite each article.
SECTION 2. The nomenclature and the rates of import duty on tariff headings not
enumerated and those listed but represented by the symbol “x x x” shall remain in force
and effect.
SECTION 3. Upon the effectivity of this Executive Order, all articles listed in Annex
“A*” which are entered and withdrawn from warehouses in the Philippines for consumption
shall be levied the MFN rate of duty of 0% ad valorem for six (6) months subject to further
review.
SECTION 4. All Presidential issuances, administrative rules and regulations, or

parts thereof, which are contrary to or inconsistent with this Executive Order are hereby
revoked or modified accordingly.
SECTION 5. This Executive Order shall take effect thirty (30) days following its
complete publication in the Official Gazette or in a newspaper of general circulation in the
Philippines.

(SGD.) GLORIA M. ARROYO
BY THE PRESIDENT:

Executive Secretary
--o0o--
Temporarily Modifying the Rates of Import Duty on Cement

and Cement Clinker Under Section 104 of the Tariff and
Customs Code of 1978 (Presidential Decree No. 1464), as Amended
WHEREAS, it is important to ensure the stability of prices and adequacy of supply

of cement for government’s infrastructure programs including low cost/mass housing
projects;
WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree
No. 1464), as amended, empowers the President of the Republic of the Philippines to
increase, reduce, or remove existing rates of import duty, as well as to modify the form of
duty and the tariff nomenclature, under Section 104 of the Code.

SECTION 1. The articles specifically listed in Annex “A” hereof, as classified under
Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the
Most-Favored-Nation (MFN) rate of import duty in accordance with the schedule indicated
opposite each article.
SECTION 2. The nomenclature and the rates of import duty on tariff headings not
enumerated and those listed but represented by the symbol “x x x” shall remain in force
and in effect.
SECTION 3. Upon the effectivity of this Executive Order, all articles listed in Annex
“A*” which are entered and withdrawn from warehouses in the Philippines for consumption
shall be levied the MFN rate of duty of 0% ad valorem for six (6) months subject to further
review.
SECTION 4. All Presidential issuances, administrative rules and regulations, or
parts thereof, which are contrary to or inconsistent with this Executive Order are hereby
revoked or modified accordingly.
SECTION 5. This Executive Order shall take effect thirty (30) days following its
complete publication in the Official Gazette or in a newspaper of general circulation in the
Philippines.
(SGD.) GLORIA MACAPAGAL -ARROYO
BY THE PRESIDENT:

Executive Secretary
--o0o--
Modifying the Rates of Duty on Certain Imported Articles as Provided

for Under the Tariff and Customs Code of 1978, As Amended, in
Order to Implement the Commitment to Reduce Tariff Rates on Certain
Products Included in the Agreement Between the Republic of the
Philippines and Japan for an Economic Partnership
WHEREAS, a dynamic and rapidly changing global environment brought about by

globalization and technological progress presents many new economic and strategic
challenges and opportunities to the Philippines and Japan;
WHEREAS, the Agreement between the Republic of the Philippines and Japan for
an Economic Partnership was signed by the Heads of Government of the aforesaid countries
on 9 September 2006;
WHEREAS, this economic partnership would create larger and new markets, improve
efficiency and enhance consumer welfare that would boost the vibrancy of economies, and
thereby expand trade and investment not only between the Philippines and Japan but also
in the region;
WHEREAS, the objective of the Agreement, among others, is to liberalize and facilitate
trade in goods through the reduction or elimination of duties to be implemented in accordance
with the terms and conditions set out in the respective schedules of the Philippines and
Japan;
WHEREAS, the Senate of the Philippines, pursuant to Senate Resolution No. 131,
concurred in the ratification of the agreement on 08 October 2008;
WHEREAS, Section 402 of the Tariff and Customs Code of 1978, as amended,
empowers the President of the Republic of the Philippines, upon the recommendation of
the National Economic and Development Authority, to modify the rate of duty for the promotion
of foreign trade.

SECTION 1. The articles specifically listed in the Annex* (Articles granted tariff
concessions under the Agreement) hereof, as classified under Section 104 of the Tariff and
Customs Code of 1978, as amended, shall be subject to rates of duty as indicated in
Columns 4 to 14 of the Annex. The rates of duty so indicated shall be accorded to imports
originating from Japan as a Party to the Agreement.
SECTION 2. The rates of duty represented with a symbol “R” shall be subject to
negotiations in the fourth year from entry into force of the Agreement.
SECTION 3. As indicated in the Notes for Schedule of the Philippines under the
Agreement, the rates of duty represented with a symbol “S” shall be subject to negotiations
in year 2009.
SECTION 4. Upon the effectivity of this Executive Order, the articles specifically
listed in the aforesaid Annex which are entered or withdrawn from warehouses in the
Philippines for consumption shall be levied the rates of duty prescribed subject to compliance
with the Rules of Origin as provided for in the Agreement.
SECTION 5. All presidential issuances, administrative rules and regulations, or

parts thereof, which are inconsistent with this Executive Order are hereby repealed or
modified accordingly.
SECTION 6. This Executive Order shall take effect fifteen (15) days after its complete
publication in a newspaper of general circulation in the Philippines.

BY THE PRESIDENT:

Executive Secretary
--o0o--
Modifying the Rates of Import Duty of Certain Articles Under the Tariff
and Customs Code of 1978 (Presidential Decree No. 1464, As Amended),
In Order to Implement the ASEAN Integration System of Preferences
(AISP) Package of the Philippines
WHEREAS, at the 4th ASEAN Informal Summit held in Singapore in November 2000,
the ASEAN Heads of Government/State agreed on the Initiative for ASEAN Integration (IAI)
in order to narrow the development gap between the older and newer members of ASEAN
and to enhance the new members’ integration with the rest of the ASEAN;
WHEREAS, to implement the decision of the ASEAN Heads of Government/State,

the ASEAN Economic Ministers, at their meeting in Siemreap, Cambodia on 3-5 May
2001, decided to implement the ASEAN Generalized System Preferences Scheme (now
AISP) on bilateral basis;
WHEREAS, the preference is a unilateral offer made by preference-giving countries

(Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) to the preference-
receiving countries (Cambodia, Lao PDR, Myanmar and Vietnam);
WHEREAS, on 5 August 2008, the NEDA Board approved the proposed elimination
of the tariff on products listed in “Annex A” imported from Cambodia and Myanmar, under
the AISP;
WHEREAS, Section 402 of the Tariff and Customs Code of the Philippines (P.D.
1464), as amended, empowers the President of the Republic of the Philippines, upon the
recommendation of the National Economic and Development Authority, to modify, decrease
or remove existing protective rates of import duties for the promotion of foreign trade.

SECTION 1. The Articles specifically listed in “Annex A*” (Articles Granted

Concession Under the AISP Package of the Philippines), hereof, as classified under Section
104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the AISP rate
of duty indicated in Column 5 of “Annex A” when imported from Cambodia and Myanmar
(preference-receiving countries) indicated in Column 6 of “Annex A”.
SECTION 2. From the date of effectivity of this Order, all articles listed in “Annex A”
entered into or withdrawn from warehouses in the Philippines for consumption shall be
imposed the rates of duty therein prescribed subject to qualification under the Rules of
Origin of forty percent (40%) single country content (Cambodia or Myanmar) as provided
for in the Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN
Free Trade Area signed on 28 January 1992.
SECTION 3. All presidential issuances, administrative rules and regulations, or

parts thereof, which are contrary or inconsistent with this Executive Order are hereby
repealed or modified accordingly.
SECTION 4. This Executive Order shall take effect immediately following its complete
publication in the Official Gazette or in a national newspaper of general circulation.
BY THE PRESIDENT:

Executive Secretary
PHILLIPINE COCONUT AUTHORITY
Rules and Regulations Implementing Executive Order No. 664

Entitled “Establishing Emergency Measures to Control
and Eradicate the Spread and Damage of Brontispa in the Philippine
Coconut Industry and Designating the Philippine Coconut Authority
as the Lead Agency for the Purpose
ARTICLE I. GENERAL PROVISIONS
SECTION 1. Period of Emergency. Pursuant to Section I of Executive Order No.

664 effective immediately and until the growth, proliferation and spread of the Coconut Leaf
Beetle (Brontispa Longissima) is effectively controlled or eradicated, or until such time as
may be determined by the Philippine Coconut Authority (PCA) in close coordination with
the Bureau of Plant Industry (BPI), nationwide emergency control program, which includes
such control and containment measures prescribed in these rules are hereby adopted for
immediate implementation.
SECTION 2. Definition/Description of terms;
Biological Control- a control measure that utilizes natural enemies to regulate pest
population keeping it below damaging levels
Boled Palm – a planting material usually bigger than a seedling, boled or uprooted with
the soil around the roots intact and intended for transplanting.
Brontispa longissima (Gestro) – Scientific name of the coconut leaf beetle
Calamity – a state of extreme distress or misfortune produced by some adverse

circumstances or events or any great misfortune or cause, or loss or misery caused by
natural forces such as earthquakes, typhoons, floods, hurricanes, epidemics or other
disaster causing widespread loss of, and/or extreme damage to human lives, livestock,
crops and property
Coconut Leaf Beetle/Coconut Hispine Beetle/ Brontispa – common names of all

leaf-scraping beetles including B. longissima under the sub-family Hispinae of the
Coleopteran Order Chrysomelidae with CLB or CHB as abbreviations
Contact Insecticide – an insecticide that must come in contact with the target organism
in order to be effective
Control/Contain – a measure aimed at reducing significantly the population and

occurrence of a pest
Copra - dried meat or endosperm of a coconut which serves as raw material for the
extraction of coconut oil (CNO)
Emergency Control – a measure or set of measures urgently implemented to abate the

spread and proliferation of a very dangerous pest
Endemic Pest –a pest naturally occurring in an area
Eradication – a control measure meant to totally eliminate pest population(s) in an area
Exotic Pest – alien pest
Germinated Seednut – a seed that has grown into a small plant and usually showing a
small shoot or with a small leaf sheath
Host Plant – a plant that harbors the pest; normally, the pest feeds and reproduce on it
Importation – an activity that brings foreign commodity into a country
Infestation/ Infested – manifest occurrence of a pest with usual signs of damage; it may
be sporadic (scattered, patched, unevenly distributed, occurs irregularly in a long path);
pocket (relatively isolated), or contiguous (widespread in a given area)
Invasive Pest – usually an exotic pest introduced in a foreign land and rapidly attacks
host crops causing significant damage
Law Enforcement – activities prescribed to implement policies like trade regulations

and quarantine
Muscardine Fungi – a kind of entomopathogenic fungi that infect insects
Natural Enemy – any organism that prey on another; it may be a predator, pathogen or
parasite/parasitoid
Planting Material - a seed, slightly germinated seed or seedling of a plant
Quarantine Measure – a set of procedures designed to confine pest infestation, prevent

and control its spread, and eradicate it whenever/wherever feasible as stipulated in PD
1433
Systemic Insecticide - an insecticide introduced and translocated into the system of a

plant so that the target pest will be able to ingest it and enabling the pesticide to take its
effect
Trunk Injection – applying systemic insecticide by boring holes pouring the solution in
it and plugging the holes in the trunk of a palm
SECTION 3. Coverage of Emergency Control Measures – The emergency program

and control measures shall be applied nationwide with priority to the following areas and
provinces initially declared pursuant to BPI Administrative Order No. 03 Series of 2005, as
amended by BPI Administrative Order No. 01, Series of 2007;
i. NCR (Quezon City, Manila, Makati, Pasig, Taguig, Pasay, Paranaque,

Caloocan, Valenzuela, Malabon, Marikina, Muntinlupa, Las Pinas,
Mandaluyong);
ii. Ilocos Norte (Mun. of Pagudpud, Carmen, Bangui, Burgos);
iii. La Union (San Fernando City)
iv. Pangasinan ((Urdaneta City, Mun. of Labrador, Sual, Alcala, Villasis);
v. Cagayan (Tuguegarao City)
vi. Isabela (Mun. Of Alicia)
vii. Nueva Viscaya (Mun. of Sta. Fe, Aritao, Dupax Sur);
viii. Pampanga (San Fernando City, Mun. of Sta. Ines);
ix. Zambales (Subic);
x. Bulacan (Malolos City, Mun. of Bulacan, Balagtas, Baliuag, Bocaue,
Guiguinto, Plaridel, San Rafael, Marilao, Meycauayan, Obando, Pulilan);
xi. Nueva Ecija (Cabanatuan City, Mun. of Pantabangan, Carangalan, San
Leonardo, Rizal);
xii.Tarlac (Tarlac);
xiii. Aurora (Mun. of Ma. Aurora, Baler, Dinalungan, San Luis);
xiv. Laguna (Mun. of Calamba, Los Banos, Calauan, Bay, Victoria, Liliw, Sta.
Rosa, Binan, Nagcarlan, San Pablo City, Alaminos, Pangil, Pakil, Majayjay,
Pila, Sta. Cruz, Luisiana, Cavinti, Pagsanjan, Magdalena, Mabitac, Kalayaan,
Sta. Maria, Lumban);
xv. Batangas (Batagas City, Lipa City, Tanauan City, Mun. of Santo Tomas,
Taal Lemery, Calaca, Agoncillo, Talisay, Malvar, Mataas Na Kahoy, Balete,
San Juan, Rosario, San Jose, San Vicente);
xvi. Cavite (Trece Martirez City, Tagaytay City, Mun. of Silang, Gen. Trias,
Gen. M. Alvarez, Carmona, Dasmarinas, Imus, Bacoor, Indang, Alfonso, Amadeo,
Gen. E. Aguinaldo, Naic, Tanza);
xvii. Quezon (Lucena City, Mun. of Tayabas, Lucban, Pagbilao, Plaridel, Real
Tiaong, Sariaya, Candelaria, San Antonio, Atimonan, Gumaca, Calauag, Lopez);
xviii. Rizal (Pililla, Tanay, Antipolo, Taytay, Jala-Jala, Teresa, Binangonan);
xix. Palawan (Puerto Princesa City, Mun.of Bataraza, Brooke’s Point,
Balabac, Rizal, Quezon, Aborlan);
xx. Albay (Legaspi City, Mun. of Daraga, Camalig, Oas, Guinobatan);
xxi. Camarines Sur (Naga City, Mun. of Libmanan, Ragay, Lupi, Sipocot,
Pasacao, Pamplona, Minalabac, San Fernando, Bonbon, Magarao, Calabanga,
Pili, Milaor, Bula, Ocampo, Tigaon);
xxii. Camarines Norte (Mun. of Daet, Sta. Elena, Mercedes, Talisay);
xxiii. Sorsogon (Sorsogon City, Mun.of Casiguran, Magallanes, Barcelona,
Bulusan, Juban, Irosin, Matnog, Gubat)
xxiv. Iloilo (Ilioilo City, Mun. of Sta. Barbara, Cabanatuan, San Miguel,
Alimodian);
xxv. Aklan (Boracay Island, Mun. of Malay);
xxvi. Guimaras (Mun. of Nueva Valencia);
xxvii. Bohol (Mun. of Dauis, Tagbilaran, Panglao, Baclayon, Alburquerque);
xxviii.Eastern Samar (Mun. of Mercedes, Borongan, Giporlos, Salcedo);
xxix. Northern Samar (Mun. of Allen, Capul, San Antonio, Lavezares, Victoria,
Catarman, Bobon, San Jose, Biri);
xxx. Samar (Mun. of Paranas, Gandara, Calbayog City);

xxxi. Leyte (Tacloban City, Ormoc City, Mun. of Valencia);
xxxii. Zamboanga Sur (Zamboanga City, Brgy. Cabatangan, Pasonanca,
Montecino Drive/Sta. Maria);
xxxiii. Bukidnon (Malaybalay City, Mun. of Lantapan, Bukaug);
xxxiv.Davao (Davao City, Mun. of Buhangin, Talomo, Tugbok, Langub, Maa,
Magtuod, Catalugan Grande, Matina Pangi, Waan, Matina Biao, Tigato); and,
xxxv. Tawi-Tawi (Island Mun. of Mapun).
Other areas that may be declared infested in the future by PCA in coordination with
BPI shall be automatically included in the scope and operation of the control program.
SECTION 4. Notice to Local Government Units. These Rules, upon its promulgation,
shall serve as Notice [to all Governors, Mayors and barangay Chairpersons and their
respective Disaster Coordinating Councils, of the declaration of the presence of the inva-
sive pest for purpose of declaration of local state of calamity and the corresponding coor-
dination, assistance and implementation of the emergency measures mandated by EO
664 and these Rules.
SECTION 5. Determination of Brontispa-Free Area. Any of the above-listed areas

may be declared by BPI as Brontispa-free after effective eradication and thorough survey
by PCA and the affected Local Government Unit.
Manifestations of effective eradication:
a. Emergence or growth of new undamaged frond at least a month after treatment.

b. No Stage of the beetle is present in the unopened fronds.
c. No more recurring or new infestation in the area.
SECTION 6. Determination of Effective Control/Management of the Beetle. In

widespread infestations, eradication is no longer possible. The coconut leaf beetle can be
declared only as effectively managed or controlled on the following bases: (1) average
damage on frond per tree after treatment no longer goes beyond 10% (2) average beetle
population is at minimum of 5-10 per tree or lower, (4) natural enemies are well-established
and sufficient to regulate beetle population, and, (3) these observations are consistent in a
three-year period.
SECTION 7. World Distribution of Coconut leaf Beetle (CLB) Brontispa longissima.

For purposes of quarantine measures and regulations in the entry of coconut materials,
palms and ornamental palm plants infested by Brontispa, the following source countries
based on validated international report are hereby declared as inimical source of Brontispa
longissima.
i. China (Guangdong Province, Hainan Islands, Hongkong)

ii. Taiwan
iii. Maldives
iv. Lao-PDR
v. Malaysia
vi. Myanmar
vii. Thailand
viii. Cambodia
ix. Indonesia
x. Singapore
xi. Vietnam
xii. American Samoa
xiii. French Polynesia
xiv. Nauru
xv. New Caledonia
xvi. Northern Marianas
xvii. Papua New Guinea
xviii. Samoa
xix. Solomon Islands
xx. Vanuatu
xxi. Wallis and Futuna
xxii. Western Samoa
xxiii. Australia (Queensland, Northern Territory)
xxiv. Fiji
xxv. Guam
xxvi. Tahiti
SECTION 8. Determining pest presence. In determining the presence of Coconut

Leaf Beetle in any establishment (e.g. plant nurseries, plant garden, seed farms) or local-
ity, the primary factors to be considered are the following:
(a) the physical withering or dying of the young leaves or fronds of coconut and other palm
species;
(b) physical or verified report of B. longissima infestation in the area, and
(c) collection and identification of pest specimen by an expert.
ARTICLE II. PREVENTIVE MEASURES THROUGH INFORMATION DISSEMINATION
SECTION 9. The PCA, DA, BPI and LGUs shall effectively cooperate to determine
affected and threatened areas throughout the country. In order to minimize expenses on
costly surveys, massive information campaign through print and broadcast media, wide-
spread distribution of Information-Education-Communication (IEC) materials and conduct
of seminars and trainings shall be undertaken to educate and warn stakeholders, estab-
lish an efficient feedback mechanism to cut such costs and enable quick action to eradi-
cate pocket CLB infestations.
SECTION 10. Other stakeholders should assist in the dissemination of information

about the pest, how to control it and prevent its further spread.
SECTION 11. PCA shall lay down in all localities a network of action teams consist-
ing of all willing stakeholders that shall link together to exchange information about the
pest and feed back such information to the PCA field units. The highest local PCA unit
shall in turn report CLB occurrences to the head office.
ARTICLE III. PROHIBITIONS AND RESTRICTIONS

SECTION 12. Prohibitions. During the period of the emergency or until such time as
may be determined by PCA in accordance with Section 1 of the Rules, the following acts
shall be strictly prohibited:
(a) Importation or entry in any part of Philippine territory of coconut planting materials in
the form of seed nuts or seedlings and any other palm species by land, water, sea or air for
commercial, research, domestic or household use without an application to import ap-
proved by the Philippine Coconut Authority under the Rules.
(b) Domestic transport or movement of coconut planting materials and other palm species,
or any product or part thereof, which harbors or are likely to harbor Brontispa without an
application to transport duly approved and a permit thereof issued by Philippine Coconut
Authority.
Section 13. Exemptions. The prohibited activities in the preceding Section shall be
allowed only in the following cases:
(A) Importation of coconut planting materials of whatever kind or form upon compliance
with the following requirements and conditions:
(i) the country of origin shall file with the PCA copy furnished the BPI an
application for the recognition and accreditation of source country as a pest-
free and providing sufficient scientific proof and evidence thereof;
(ii) PCA and BPI shall review the application and determine whether the applied
area meets the conditions for pest-free area based on International Plant
Protection Convention (IPPC) standard;
(iii)A declaration of accreditation of pest-free area shall be issued by BPI with
concurrence by PCA;
(iv)A BPI Plant Quarantine Clearance issued after the accreditation of pest-free
area following PD 1433 and inspection of the commodity upon its entry to the
importing country;
Nothing in these Rules shall prevent the PCA and BPI from detaining, confiscating,
destroying or otherwise ordering the return of any imported coconut planting materials
found at any port of entry or disembarkation which have not complied with the foregoing
requirements, or when such imported commodity evidently show, by visual or sensory
examinations, manifestation, traces, or presence of Brontispa.
(B) Importation of germinated oil palm seeds, provided that the seeds are only slightly
germinated with no leaf sheath and the requirements and conditions in the existing BPI
Regulations are complied with;
(C) Importation of ornamental palm plants and other palm species, provided that the BPI
shall have ensured compliance with the requirements and conditions in the same proceed-
ing paragraph;
(D) Domestic transport or movement of coconut and oil palm planting materials and fronds
from any local source or origin by land, air, or sea, to any non-infested area of the country
and only after the issuance of a Permit to Transport exclusively by the Regional Manager
or the duly designated Provincial Coconut Development Manager of the PCA stationed at
the place of origin;
Permit to Transport maybe issued only upon the satisfaction of the following condi-
tions;
(i) Application of Permit to Transport filed by the owner of the material or the
transport operator with the preceding offices, stating the nature of the materials
to be transported, address of source or origin including farm, nursery, seed or
plant garden, or distributor, whether commercial or private, volume of material
in pieces, mode of transportation, name and address of consignee.
(ii) After evaluation and inspection, if necessary of the application, and
confirmation that the planting materials are free of Brontispa pest, without
prejudice to the exercise of the similar requirements and obligations enumerated
in sub paragraph (A) iv of these Rules.
(iii)For plant and plant products other than coconut and oil palm, the owner or
transport operator shall obtain a BPI Quarantine Clearance pursuant to existing
Quarantine rules.
(E) Domestic transport of ornamental and other palms shall be permitted provided that
clearance is obtained from the BPI attesting that the commodities have undergone quaran-
tine procedures at source.
ARTICLE IV. EMERGENCY CONTROL MEASURES
SECTION 14. To provide an immediate and effective control measures to affected

areas mentioned in Section 2, the PCA, following its Technoguide, shall judiciously apply
the following treatments takings into consideration the effect of the treatment to the palms,
human health and the environment:
A. Applying through trunk injection of systemic, spraying with contact (inorganic or botani-
cal) or dusting of powdered insecticides duly approved by/registered with Fertilizer and
Pesticide Authority (FPA)
B. Spraying of small palms less than four (4) years old with muscardine fungi in quaran-
tined areas, infested sites near bodies of water, rice fields, wells, human and animal habi-
tations, feeding grounds and pens, and such other areas susceptible to the breeding of
CLB.
C. Dusting of copra and other coconut food products and raw materials with diatomaceous
earth.
D. Where appropriate, PCA shall employ any treatment (e.g. Spraying, dusting) to trans-
port carriers and cargoes prior to movement of coconut and other palm materials specifi-
cally;
i. On site or source as farms, nurseries, seed or plant gardens and other

stations or establishments used to stock, store, or display the plant materials,
or planting materials to be transported (such as fronds and leaflets, seedlings,
boled palms and such other parts of the palm, which are possible carriers of
the pest), and
ii. Intermediate Quarantine areas such as those identified by BPI-PQS (i.e.
post-entry/pre-transport holding facilities)
iii. Storage facilities such as copra bodega, warehouse and the like
iv. Transport facilities and equipment like trucks, buses, private vehicles, vans,
large containers, cargo/bulk carriers, etc.
E. In addition to the treatment mentioned above, cargoes should be covered with tarpaulin
or any similar materials prior transport.
F. Release of biocontrol agents specifically known and proven to prey on Brontispa

longissima
G. Burning of all positively infested palms and palm parts intercepted at checkpoints.
H. Large palms that are not practical to burn on site shall be treated with contact insecti-
cide first and returned to origin.
I. Where practical, infested frond or leaflet of palms shall be pruned and burned.
In the event of massive infestation as determined by PCA based on the survey

conducted and recurrence of infestation in the treated areas and in consonance with the
emergency nature of containment program, PCA may procure or enlist the services of a
qualified and reputable professional pest control operator.
SECTION 15. Inspection and Registration
A. The PCA Regional Managers shall do the following on Coconut and Oil Palm
i) Require the registration of all nurseries, seed gardens and plant gardens
distributing commercially seed nuts, seedlings, fronds, planting materials;
ii) Require the registration of persons, entities or operators of facilities/equipment
dealing with the transport of planting materials.
iii) Designate and deploy extension or quality control officers as roving inspectors
to monitor the proper establishment and operations of the coconut nurseries,
seed gardens, plant gardens, and distributors of seed nuts, seedlings and planting
materials
iv) Designated inspectors shall report immediately and directly to the Regional
manager, the BPI or law enforcement agency such incidents determined in the
course of inspection which requires the immediate application of the emergency
measures and quarantine controls as authorized under these Rules.
ARTICLE V. QUARANTINE MEASURES

SECTION 16. Quarantine Checkpoint. The PCA and BPI shall conduct survey and
mapping of places and highways serving as transport route and channel of traffic in the
domestic movement of infested materials, and, thereby determine the location and num-
ber of necessary quarantine stations and checkpoints.
SECTION 17. Based on such survey and mapping under the preceding section and
upon the recommendation of BPI, the latter shall establish such number of quarantine
stations or national checkpoints. The BPI shall enlist the assistance of other law enforce-
ment/regulatory agencies (such as the Bureau of Animal Industry, etc.) that already have
their own existing checkpoints. The Bureau Director shall designate sufficient quarantine
personnel with authority to enforce quarantine measures including the detention, confisca-
tion, destruction of materials and such other administrative remedies authorized under
existing Quarantine Orders promulgated by the Bureau transported materials in violation of
the control measures under these Rules.
Unless otherwise determined and identified by PCA and BPI, National check-
points as determined by PCA shall be initially established in the following provinces:
Nueva Vizcaya 1
Beguet 1
Ilocos Norte 2
Ilocos Sur 1
Mindoro 2
Marinduque 1
Bataan 1
Tarlac 1
Romblon 2
Masbate 1
Catanduances 1
Northern Samar 2
Eastern Samar 1
Tacloban 1
Biliran 1
Southern Leyte 2
Ilioilo 2
Aklan 1
Negros Occidental 2
Negros Oriental 1
Cebu 3
Bohol 2
Siquijor 1
Camiguin 1
Bukidnon 4
Davao City 4
Cagayan de Oro 1
Zambaonga City 1
Lanao del Norte 1
Palawan 2
Basilan 1
Tawi-tawi 1
50
Mobile Checkpoints
Luzon 4
Visayas 2
Mindanao 4
10
SECTION 18. Role of LGUs. The Local Government Units as espoused in the
Local Government Code of 1991 (Item I Sec. 3 Book I) shall share with the National
Government the responsibility in the management and maintenance of ecological balance
within their territorial jurisdiction. As such, the LGUs in the provinces, cities, municipalities
and barangays where the infestation is reported shall provide the necessary logistic and
manpower support for the implementation of the emergency measures. Extension of
appropriate resources or financing through complementation of funding especially the
use of Calamity Funds in heavily infested areas, shall be undertaken to support general
information and educational campaign, establishment and operation of checkpoints, and
recruitment of volunteers for deputation as quarantine officers or aides by the Bureau
Director. As emphasized also in the same Code (Sec. 17. Basic Services and Facilities),
every province must provide “agricultural extension and on-site research services and
facilities including prevention and control” of this plant malady. Furthermore, the Chief
Executive of localities shall carry-out emergency measures necessary to abate the further
spread and multiplication of this pest.
ARTICLE VI. LAW ENFORCEMENT
SECTION 19. In the exercise of their functions under these Rules, the PCA and
the BPI shall jointly or individually request the Philippine National Police or any other law
enforcement agencies such as the Customs or Port, Maritime Police, Highway Patrols,
or Traffic Enforcers of the MMDA to investigate violations of this Rules and to enforce
such preventive sanctions against violators in accordance with these Rules.
SECTION 20. Enforcement Coordination. The PCA and BPI shall notify the Pro-
vincial/City/Municipal Police Officers/Stations and other law enforcement agencies and
the provincial and City/Municipal mayors to ensure proper and coordinated actions.
SECTION 21. Material Detention. The law enforcement officers in coordination

with PCA and BPI are authorized to conduct investigations, apprehensions, pursuits, con-
fiscation and detention of materials transported in violation of the requirements of these
Rules. The PNP shall strictly do the confiscation of materials while PCA and/or BPI shall
do the destruction.
No detained or confiscated material shall be destroyed without the recommenda-

tion and presence of either the authorized BPI or PCA representative.
All companies engaged in land, water or air transportation shall assist the Direc-
tor of the BPI or his authorized representatives in the strict enforcement of the provisions of
this implementing rules and regulations by not allowing or accepting shipments, convey-
ing or shipping of palm seedlings, plants and any other plant parts capable of harboring the
pest.
SECTION 22. In case where resistance is encountered, PCA and BPI personnel
shall seek the assistance of PNP and local authorities.
ARTICLE VII. COORDINATION AND MONITORING AND REPORTNG
SECTION 23. Responsibility of PCA. The PCA through its Regional Managers
shall be principally responsible for the formulation of specific programs and projects to
implement the nationwide/region-wide emergency control measures to prevent the entry,

proliferation, spread or otherwise control and eradicate the invasive quarantine pest of
coconut known as Brontispa longissima (Gestro) or Coconut Leaf Beetle.
SECTION 24. The PCA and BPI shall collaborate for the institution of effective
chemical disinfectations and biological control measures which includes mass produc-
tion/rearing of natural enemies such as Metarrhizium sp. and earwigs.
SECTION 25. The PCA Agriculturist or any member of Small Coconut Farm-
ers Organization, (SCFOs) and other PCA-accredited farmers/ non government organiza-
tions, shall require into all incidents or perceived violations of the Act and these Rules, by
conducting spot-investigations or verifications thereof.
The Barangay Chairman, City or Municipal Mayor or Law Enforcement agents

shall be immediately informed of the incident for their appropriate preventive action.
The PCA Agriculturist shall submit a complete report to the concerned PCDM/
Division Chief, copy furnished the Regional Manager.
ARTICLE VIII. SANCTIONS AND PENALTIES

SECTION 26. Penalties. The Provision on Administrative Penalties under Sec-
tion 6 the Executive Order is hereby adopted in toto and declared an integral part of these
Rules.
ARTICLE IX. REPEALING CLAUSE

All Administrative Order, Memoranda, Circulars and other issuances inconsistent
with these Rules and Regulations are hereby modified and repealed accordingly.
ARTICLE X. EFFECTIVITY
These Revised Rules and Regulations shall take effect fifteen (15) days after
publication in two (2) newspapers of national and general circulation.

(SGD.) OSCAR G. GARIN
Administrator
PHILIPPINE DOMESTIC CONSTRUCTION BOARD
Constructors’ Performance Evaluation System (CPES)

Implementing Guidelines for Infrastructure Projects
Text Available at Office of the National Administrative Register

PHILIPPINE HEALTH INSURANCE CORPORATION
PhilHealth Circular No. 20, s. 2008
Expanded Coverage of PhilHealth Normal Spontaneous

Delivery/Maternity Care Package In PhilHealth Accredited
Hospitals and Non-hospital Facilities (Lying-In Clinics)
I. COVERAGE
A. Inclusion
1. Starting 1 January 2009, PhilHealth extends its coverage of normal spontaneous deliveries
(NSD) to the first four (4) births.
2. This amendment applies only to normal (uncomplicated) vaginal deliveries in both

accredited hospitals and lying-in clinics.
3. For non-hospital providers (e.g., lying-in clinics, birthing homes, midwife-managed clinics)
of the maternal care package, the first prenatal visit of patient must not exceed the 16
weeks age of the gestation. Patients who do not satisfy this criterion should be referred
to accredited hospitals to qualify for the normal spontaneous delivery package.
4. Normal birth is characterized by spontaneous onset of labor; low risk at the start of labor
throughout labor, and delivery; infant in vertex position; and 37-42 weeks of completed
pregnancy.
B. Exclusion
1. Deliveries of the 5th and subsequent births are not covered by PhilHealth.
2. Pregnancies resulting to abortions are not covered by the limitation of coverage of NSD
of the first four births.
3. The following conditions remain to be excluded in PhilHealth accredited non-hospital

facilities:
a. maternal age under 19 years old

b. first pregnancy of patients aged 35 years and older.
c. multiple pregnancy
d. ovarian abnormality (ovarian cyst)
e. uterine abnormality (myoma uteri)
f. placental abnormality (placenta previa)

g. abnormal fetal presentations (e.g., breech)
h. history of three (3) or more miscarriage/abortion
i. history of one (1) stillbirth
j. history of major obstetric and/or gynecologic operation (e.g., cesarean
section, uterine myomectomy)
k. history of medical conditions (e.g., hypertension, pre-eclampsia, eclampsia,
heart disease, diabetes, thyroid disorder, morbid obesity, moderate to severe
asthma, epilepsy, renal disease, bleeding disorders)
l. Other risk factors that may arise during present pregnancy (e.g. premature
contractions, vaginal bleeding) that warrants a referral for further management.
II. CODING
A. Hospitals
_____________________________________________________________________________________________________________________
CODE DESCRIPTIVE TERMS RVU
________________________________________________________________________________________________________________________
59400 Routine obstetric care for hospitals
(Normal Spontaneous Delivery Package) P
______________________________________________________________________________________________
59409 Vaginal delivery only (with or without episiotomy) 50
_________________________________________________________________________________________________________________________
59411 Breech extraction 80
__________________________________________________________________________________________________
59514 Cesarean delivery 150
____________________________________________________________________________________________________
59612 Vaginal delivery only, after previous
cesarean delivery (with or without episiotomy) 80
________________________________________________________________________________________________________
59812 Treatment of incomplete abortion, any trimester,
completed surgically 60
_______________________________________________________________________________________________________________
B. Non-hospital Facilities:
______________________________________________________________________________________________________
CODE DESCRIPTIVE TERMS RVU
___________________________________________________________________________________________________________
59401 Routine obstetric care including prenatal
care, delivery and newborn care for non-hospital
facilities (Maternity Care Package), 1st claim P
________________________________________________________________________________________________
59430 Postpartum care (Maternity Care Package),
2nd claim P
_____________________________________________________________________________________________________________________
III. EXAMPLES:
A. Pregnancy Outcome Lying-in Clinics Hospitals
1st normal delivery Covered (Package) Covered

(Package)
2nd normal delivery Covered (Package) Covered
(Package)
3rd normal delivery Covered (Package) Covered
(Package)
4th normal delivery Covered (Package) Covered
(Package)
5th normal delivery Not Covered Not Covered
B. Pregnancy Outcome Lying-in Clinics Hospitals
1st breech delivery Not Covered Covered

(59411)
(Package)
(Package)
(Package)
C. Pregnancy Outcome Lying-in Clinics Hospitals
1st ceasarian delivery Not Covered Covered

(59514)
2nd normal delivery Not Covered Covered
(59612)
3rd normal delivery Not Covered Covered
(Package)
4th normal delivery Not Covered Covered
(Package)
D. Pregnancy Outcome Lying-in Clinics Hospitals
1st preterm delivery Not Covered Covered

(59409)
(Package)
(Package)
(Package)
E. Pregnancy Outcome Lying-in Clinics Hospitals
1st stillbirth Not Covered Covered

(59409)
2nd normal delivery Not Covered Covered
(Package)
3rd normal delivery Not Covered Covered
(Package)
(Package)
F. Pregnancy Outcome Lying-in Clinics Hospitals
1st normal delivery Covered (Package) Covered

(Package)
2nd abortion Not Covered Covered
(59812)
(Package)
(Package)
(Package)
6th normal delivery Not covered Not covered
G. Pregnancy Outcome Lying-in Clinics Hospitals
1st abortion Not Covered Covered

(59812)
2nd abortion Not Covered Covered
(59812)
3rd abortion Not Covered Covered
(59812)
(Package)
(Package)
(Package)
(Package)
8th normal delivery Not Covered Not covered
This Circular shall take effect for all admission starting January 1, 2009.
The provisions of previous Circulars, Office Orders and other related issuances that
are not inconsistent with any provisions of this Circular remain in effect.
For the information and guidance of all concerned.
(SGD.) DR. REY B. AQUINO

President and CEO
--o0o--
Accreditation of Medical Director/Chief of Hospital or Hospital Administrator

prior to Accreditation of an Institutional Health Care Provider (IHCP)
Section 47.m of the Implementing Rules and Regulations on the National Health
Insurance Act (R.A. 7875) as amended by R.A. 9241 on Payment of Claims, states that
“Professional fees for services rendered by salaried health care providers may be retained
by the health care institution in which the services are rendered for pooling and distribution
among health personnel.”
PHIC Circ. 14 s. 2008 provides that . . . in behalf of salaried physicians in government

or private hospitals, claims signed by the Medical Director/Hospital/Administrator/Chief of
Clinic shall be reimbursed when “Pay to Director/Administrator/Chief” as indicated in item
nos. 19, 24 and 29 of PhilHealth Claim Form 2.
Further, the Medical Director has the full responsibility to plan, direct, implement and
control the operations of the hospital and its services.
However, it has been noted by this Corporation that there are some medical directors
of accredited hospitals who are not accredited by PhilHealth. Therefore, as a pre-condition
for accreditation of hospitals, ASCs and FSDCs, the Medical Director/Chief of Hospital or
Hospital Administrator who is a physician and who signs the PhilHealth claim forms in
behalf of salaried physicians in government and private training hospitals/institutions, shall
be accredited prior to the approval of the application for accreditation of the concerned
institution.
All previous policies and guidelines and other administrative issuances with provisions
inconsistent herewith are hereby amended accordingly.
This Circular shall take effect fifteen (15) days after publication in the official gazette
or any newspaper of general circulation.

President and CEO
--o0o--
Tiered Payment of Professional Fees of Accredited Physicians
Pursuant to PhilHealth Board Resolution No. 922, s. 2006, the following rules on
payment of professional fees are hereby issued:
1. Computation of professional fees of accredited physicians surgical procedures and

other services is based on relative value unit (RVU) of the procedure multiplied by peso
conversion factor (PCF).
2. To give incentives to appropriately trained and qualified physicians, computation of

professional fees for surgeries and other RVU-linked services shall be based on a range
of PCF depending on Claims Code Group listed in Annex A of PhilHealth Circular No. 11
series of 2005.
a. Payment for general practitioners and other physicians with no hospital training
(Group 1 - Accreditation Code 1100) shall be based on the baseline peso conversion
factor (PCF).
b. Physicians who completed residency training but are not specialty board certified
(Group 5 - Accreditation Codes 1501 to 1503 and Group 6 - Accreditation 1601), shall
have a PCF 20% higher than baseline PCF.
c. Fellows and diplomates of specialty societies recognized by the Philippine

Medical Association (Groups 2 and 3 - Accreditation Code 1201 to 1313) shall have a
PCF 40% higher than baseline PCF.
Surgeon’s Fee Group 1 Group 5 & 6 Group 2 & 3
Appendectomy
RVU: 100 100 x 40 pesos 100 x 48 pesos 100 x 56 pesos
PCF: 40 pesos = 4,000 pesos = 4,800 pesos = 5,600 pesos
3. Professional fees of accredited physicians providing anesthesia service are based on

30% of RVU of the procedure multiplied by the PCF.
a. Physicians who completed residency training (Group 5 and Group 6) shall

receive an additional payment equivalent to 20% of computed benefit.
b. Fellows and diplomates of specialty societies recognized by the Philippine

Medical Association (Groups 4 - Accreditation Code 1400) shall receive an additional
payment equivalent to 40% of computed benefit.
Anesthesiologist’s Fee Group 1 Group 5 & 6 Group 4
Appendectomy 1,200 pesos 1,200 pesos

4,000 pesos + 20% + 40%
x 30% = 1,200 pesos = 1,440 pesos = 1,680 pesos
= 1,200 pesos
4.Payment for doctors practicing in areas with shortage in health human resources shall
be based on a PCF 10% higher than their designated PCF. The list of PhilHealth
designated areas will be published in a subsequent issuance.
Surgeon’s Fee Group 1 Group 5 & 6 Group 2 & 3

Appendectomy
RVU: 100
PCF: 40 pesos = 4,400 pesos = 5,280 pesos = 6,160 pesos
5. This rule on tiered payment applies only to RVU-linked services and does not cover
payment for daily visits and management.
6. Moreover, it is reiterated that the following procedures and services are limited to the
following subclass of doctors (as identified by the first four numbers of the new
accreditation number convention):
Procedures and Services Diplomate/Fellow Basis
1. Radiology services Philippine College of Radiology

(RVS Codes 70010-77789) Accreditation Code 1207
2. Pathology (RVS Codes Philippine Society of Pathologist PhilHealth Cir. No. 37,
88174-88332 Accreditation Code 1206 s. 2006
Philippine Academy of Family

Physicians,
Philippine College of Physicians,
3. Preoperative inpatient Philippine Pediatric Society, PhilHealth Cir.No. 11,

consultation Philippine Neurological Association s. 2007
(RVS Codes 99256) Accreditation Code, 1201,
1202, 1203, 1210
This Circular shall take effect for all claims with admission dates starting January 1,
2009. All other issuances inconsistent with this circular are hereby modified or repealed
accordingly.

President and CEO
--o0o--
Addendum to PhilHealth Circular No. 14, s. 2008

Re: Guideline on Reimbursement of Professional Fees

U.P. Law Complex Diliman, Quezon City
--o0o--
Amendments on the Guidelines on Application for

Accreditation of Institutional Health Care Providers (IHCPs)

--o0o--
Outpatient Malaria Package
In support of the United Nations’ Millenium Development Goal to halt or reverse the
incidence of malaria and other diseases by 2015, PhilHealth has approved the
implementation of an outpatient malaria package through Board Resolution No. 924, s.
2006. This benefit aims to decrease prevalence of malaria by increasing the proportion of
the population having access to effective malaria treatment measures.
A. Benefit Package
1. The Outpatient Malaria Package shall have a case rate of 600 pesos, subject to the
limitations provided therein.
2. This amount shall be paid directly to an accredited provider to cover the services the
patient requires: diagnostic malaria smears and other laboratory procedures; drugs and
medicines; and consultation services, including patient education and counseling.
3. Under this benefit package, the diagnosis and chemotherapy of malaria shall be in
accordance to the Department of Health’s National Policy on Diagnosis and Chemotherapy
for Malaria.
4. Availment of this package shall be charged one (1) day to the annual 45-day benefit
limit.
5. In addition, availment of this package is also covered by the rule on single period of
confinement; meaning, only one (1) benefit shall be paid for the same illness or condition
that are not separated by more than 90 days. For this reason, a patient shall only be
provided with a new package after 90 days from start of previous availment of the package.
B. Inclusion Criteria
1. PhilHealth shall only pay for services rendered to patients diagnosed with malaria
confirmed either through:
a. Microscopy - detection of malaria parasites in Giemsa-stained blood smear,

or;
b. Rapid Diagnostic Test (RDT) in areas with no access to microscopy centers
or during outbreaks.
2. The package applies to any species of malaria (Plasmodium falciparum, vivax, malariae
or ovale) and may be availed by all qualified PhilHealth members and dependent in accred-
ited RHUs.
C. Exclusion Criteria
1. The following are considered as exclusions to the Outpatient Malaria Package:
a. Diagnosis of malaria with no laboratory confirmation

b. Negative malaria smear or RDT
c. Re-treatment cases within 90 days from previous availment of the package
d. Chemoprophylaxis for persons at risk for developing malaria
e. Severe and complicated malaria cases and all other concerns requiring
immediate referral to higher category of care/hospital such as:
i. Cerebral malaria vi. Pulmonary edema

ii. Malaria with rupture of spleen vii. Circulatory collapse or shock
iii. Malaria with nephropathy viii. Pregnant women
iv. Severe Anemia ix. Children under one (1) year of
v. Thrombocytopenia age
2. Treatment for malaria which requires hospitalizations shall be covered under the regular
inpatient hospitalization benefit of PhilHealth.
D. Eligibility Rules for Members and Dependents
1. Employed and Individually Paying Program (IPP) members including KASAPI must
have paid at least three (3) months of contribution within the immediate six (6) months
prior to the month of start of treatment.
2. Sponsored and Overseas Workers Program members are entitled to the package if the
start of treatment falls within the validity period of their membership as stated in the ID
card/enhanced Member Data Record.
3. Retirees and pensioners shall be entitled to avail of the package upon presentation of
PhilHealth ID.
E. Claims Availment and Processing
1. Claims for the Outpatient Malaria Package must be submitted to PhilHealth within 60
days from last day of treatment
2. Claims with incomplete requirements shall be returned to the facility for completion.
The following documents are required for processing claims:
a. Malaria blood smear - Since microscopy is considered as the definitive standard in the
diagnosis of malaria, the following must be submitted:
i. A photocopy of result of malarial smear done prior to initiation of treatment

(Day 1) must be submitted by all facilities with functional microscopy center.
However in areas with no microscopy centers, a result of RDT (signed by RDT-
trained health care worker) must be submitted in lieu of the malarial smear.
ii. A photocopy of result of follow-up malarial smear done on Day 3 of treatment

for all species of Plasmodium.
iii. A photocopy of result of follow-up malarial smear done on Day 7 and Day 14
of treatment for Plasmodium vivax and ovale.
b. PhilHealth Claim Form 1 - properly accomplished by member and employer.
c. PhilHealth Claim Form 2 - properly accomplished by health care providers. Fill in all
blanks and write “NA” if the information required is not applicable (see Annex A* - Sample
Claim Form 2)
i. Part I: Items 1 to 14 should be properly filled out. Special attention should be

given in the following boxes:
1. In Item No. 2, write Outpatient Malaria Package or OMP on Accreditation

Category.
2. In Item No. 10, write the initial impression of malaria in the space for
Admission Diagnosis.
3. In Item No. 11, Date Admitted corresponds to the date of the start of
treatment (Day 1) while date discharged corresponds to the date of the last day
of treatment (Day 4 for P. falciparum and P. ovale and Day 14 for P. vivax and P.
malariae). Write “Not Applicable” or “NA” in Time Admitted and Time Discharged.
In the space provided for Claimed Number of days, please write Outpatient
Department or “OPD”.
4. In Item No. 12, the vertical space provided for Total indicates the actual
charges and the amount of reimbursement requested by the facility. It is
important that the actual charges also be written on space provided for Actual
Hospital/Ambulatory Charges. Under the column labeled Benefit Claim Hospital,
“600” should be written to indicate the amount of reimbursement requested by
the facility.
5. In Item No. 13, the certification must be properly accomplished by the
authorized representative.
ii. Part II: The physician should accomplish this portion.
1. In Item No. 14, write the complete final diagnosis. The final diagnosis should
indicate which species of malaria parasite (Plasmodium) was detected in the
blood smear.
2. Claims with incomplete diagnosis shall be returned to the facility for
completion.
3. The ICD-10 code is also written on right portion of Box No. 14.
4. In Item No. 15, write “Not Applicable” or “NA” in the case type.
5. Item No. 16 should also be properly filled-out and signed by the physician.
iii. Parts III, IV and V need not be filled out.
d. Member Data Record (MDR)
e. Proof of premium payment for individually paying program members
f. PhilHealth ID cards for sponsored, pensioners and overseas workers program members
g. Other supporting documents required by PhilHealth
3. All claim applications for the Outpatient Malaria Package are also required to indicate
ICD-10 codes in Claim Form 2. Claim forms with no ICD-10 codes will not be processed
by PhilHealth. The following are the ICD-10 codes for malaria:
CODE DESCRIPTION
Plasmodium falciparum malaria including mixed infections of P. falciparum with any other
Plasmodium species
B50.0 Plasmodium falciparum malaria with cerebral complications; Cerebral

malaria, not otherwise specified
B50.8 Other severe and complicated Plasmodium falciparum malaria; severe or
complicated Plasmodium falciparum malaria, not otherwise specified
B50.9 Plasmodium falciparum malaria, unspecified
Plasmodium vivax malaria including mixed infections of P.vivax with other Plasmodium
species, except Plasmodium falciparum
B51.0 Plasmodium vivax malaria with rupture of spleen

B51.8 Plasmodium vivax malaria with other complications
B51.9 Plasmodium vivax malaria without complications; Plasmodium vivax
Plasmodium malariae malaria including mixed infections of P. malariae with other Plasmo-
dium species, except Plasmodium falciparum and Plasmodium vivax
B52.0 Plasmodium malariae malaria with nephropathy

B52.8 Plasmodium malariae malaria complication;
B52.9 Plasmodium malariae malaria without complication; Plasmodium malariae
Other parasitologically confirmed malaria
B53.0 Plasmodium ovale malaria

B53.1 Malaria due to simian plasmodia
B53.8 Other parasitologically confirmed malaria, not elsewhere classified;
Parasitologically confirmed malaria, not otherwise specified
Unspecified malaria
B54.0 Clinically diagnosed malaria without parasitological confirmation
4. To facilitate processing of this package, the following Relative Value Scale (RVS) Code
shall be used by PhilHealth in claims evaluation:
CODE DESCRIPTION RVU
87207 Outpatient Malaria Package Package
F. Accredited Providers
1. The initial providers for the Outpatient Malaria Package are the accredited facilities for
the Outpatient Benefit for the sponsored members i.e. rural health units (RHUs).
2. Although currently accredited RHUs are not required to apply for a separate accreditation
as providers of the malaria package; the facility is required to submit a certified true
copy of a malaria microscopist’s training in the diagnosis of malaria from Department of
Health. A malaria microscopist can either be a medical technologist or a microscopist
who completed a malaria microscopy training program. The document may be submitted
to the Accreditation Department or PhilHealth Regional Offices.
3. In remote areas which make use of RDT in the diagnosis of malaria, certificate of
training of RDT-trained health care workers should also be submitted to PhilHealth to
facilitate processing of claims with no malaria blood smear.
4. LGU managed RHUs are also required to provide an authorization, ordinance, or

Sanggunian Bayan Resolution to create a trust fund for PhilHealth reimbursement to
ensure the continuity of care and services for Malaria patients.
a. The disposition of PhilHealth payment shall be:
i. 80% for the delivery of the required service e.g., drugs, supplies, equipment
ii. 20% administrative cost that shall be divided among the health personnel of
the rural health units/health centers including Barangay Healthcare Workers
b. Disbursement shall be in accordance with pertinent accounting and auditing

rules
5. No additional fee shall be imposed on currently accredited facilities for their application
as providers of the Outpatient Malaria Package.
6. Accredited RHU are advised to arrange orientation on claims filing procedures with their
respective PhilHealth Regional Office to avoid unnecessary delay or denial of payment of
claims.
7. Accredited health care providers are hereby reminded that furnishing false or incorrect
information for the purpose of claiming payment from PhilHealth is punishable under the
Revised Implementing Rules and Regulations of R.A. 7875 as amended, and is a violation
of the Warranties of Accreditation.
This Circular shall take effect for all malaria treatment dates starting December 1,
2008.
President and CEO
PHILIPPINE NATIONAL POLICE

Standard Operating Procedures No. ODO 2008-01
Procedures in the Enforcement of Final Decisions or Orders of the

Court in Civil Cases, Orders of Other Government Agencies in the
Exercise of their Quasi-Judicial Functions, to Include Other Written
Requests for Police Assistance
I. References:
a. PNP Operational Procedures;

b. Revised Rules of Court of the Philippines;
c. Local Government Code of the Philippines (RA 7160); and
d. Memoranda from DO dated January 28, 2008 & February 19, respectively,
with subject: Security of Mining Industries/ Illegal Mining Operations.
II. Purpose:
These Standard Operating Procedures prescribe the rules and regulations in the
enforcement of final court orders or decisions in connection with civil cases, orders of other
government agencies in the exercise of their quasi-judicial functions, other executive
issuances and legal processes to include PNP actions on requests for police assistance.
III. Scope of Application:
This SOP is issued as a supplemental measure to reinforce Rule 18 of the PNP

Operational Procedures on STRIKES, LOCKOUTS AND LABOR DISPUTES, and Rule 19
on DEMOLITION ORDERS, INJUNCTIONS AND OTHER SIMILAR ORDERS. The following
guidelines shall be strictly applied:
a. The request for police assistance shall be acted upon by the appropriate police unit
only if the following conditions are complied with:
i. The request for police assistance is based on an order of the court or quasi-
judicial body that the PNP should extend police assistance in the implementation
of its final decision or order. The request for police assistance, along with the
copy of the order, should be personally filed by the sheriff or officer authorized
to implement the decision or order at least five (5) days prior to its actual
implementation.
ii. Unless the original copy of the final decision or order is presented, machine
copy of the decision or order must be duly authenticated by the clerk or court
or quasi-judicial body.
iii. A certification or document issued by the court or quasi-judicial body should

also be submitted stating that the decision or order to be implemented has
gained finality and there is nothing more be done under the premises but to
implement it.
iv. The name of the sheriff or officer of the court or quasi-judicial body, who shall
implement the final decision or order, shall also be mentioned in the certification
or order issued by the court or judicial body.
b. All requests for police assistance other than those flowing from a final decision or order
issued by the court or quasi-judicial bodies shall be in writing and signed by the requesting
party or his duly authorized representative.
c. If the request for police assistance satisfies all the requirements mentioned above,
police assistance shall be rendered within three (3) working days from receipt of the direc-
tive from C, PNP, RD, PRO or PD, PPO, as the case may be, to render police assistance
unless a longer period is necessary, which shall not exceed fifteen (15) days, so as to give
the PNP unit concerned ample time to prepare.
d. The Chief, PNP, as may be recommended by The Director for Operations, could task
any operational support unit of the PNP or PRO, which has jurisdiction in the area where
the decision or order shall be implemented, to render police assistance. In case of re-
quest to the Regional Director, PRO, the latter could task the Police Provincial Office, City
or Municipal Police Station within his jurisdiction to render police assistance. In case of
direct filing of request to local police units or operational support units, no police assis-
tance shall be rendered until a prior clearance is obtained from:
i. The Chief, PNP – when the subject involves foreign investment, national
government projects, or the final decision or order to be implemented was
rendered by the Supreme Court, the Court of Appeals, Court of Tax Appeals or
the Sandiganbayan.
ii. RD, PRO/NSU Hqs – when request for assistance is addressed to the PDs/
ROs or the final decision or order to be implemented was rendered by the
Regional Trial Court or by other lower courts.
iii. PD, PPO/ROs, NSUs – when the request is addressed to the COPs or
equivalent unit commanders.
e. The request for police assistance of quasi-judicial bodies, like the Securities and Ex-
change Commission (SEC) and National Labor Relations Commission (NLRC), shall be
submitted to the Office of the Chief, PNP regardless of the place where the police assis-
tance should be performed.
f. In all cases, the court or quasi-judicial body that rendered the final decision order to be
implemented shall bear the operational cost of police assistance which, shall include, but
not limited to, transportation expenses of PNP members in going to and from the place
where the decision or order shall be enforced and meal allowance for the duration of the
enforcement operation.
g. Unit commanders tasked to render police assistance shall have the discretion to em-
ploy sufficient number of PNP uniformed personnel after taking into consideration the
importance of the case, the scope of the resistance to be encountered, if there is any, the
sentiment of the people affected by the final order or decision, and the general peace and
order condition in the area.
h. Unless a higher ranking officer is necessary and more PNP personnel shall be required,
the police team to render police assistance shall be led by a Police Senior Inspector and
all of its members shall be in police uniform while rendering police assistance.
i. Team leaders of police units other than the territorial police force who are specifically
tasked to implement the final decision or order should coordinate with the concerned
territorial units to its implementation.
j. PNP member shall observe maximum tolerance and respect individual rights at all
times. Dialogue with those who may be affected by the implementation of the decision or
order is encouraged to obviate violence and the assistance of local official and other
stakeholders, when warranted, should be sought.
k. The sheriff or officer of the court or quasi-judicial body shall have the final disposition
whether or not to proceed with the implementation of the decision or order.
l. The role of the PNP shall be supportive only, that is, strictly limited to the maintenance
of peace and order, crowd control, and ensure the personal safety and security of the
sheriff or officer of the court or quasi-judicial body.
m. In no case shall PNP members participate in the implementation of the decision or

order by performing acts not herein mentioned, such as, but not limited to, hauling of
personal properties, dismantling of properties. Further, PNP personnel tasked to render
police assistance shall not socialize with any of the parties involved in the controversy to
preempt any negative impression or partisan notion.
n. Maximum tolerance should be observed during police intervention and any reasonable
force should be used only as last resort for self defense and defense of strangers.
IV. Procedures:
a. Upon receipt of the decision or order, verify if it is authentic coming from the court, quasi-
judicial body or government agency.
b. Ask clearance from higher headquarters before rendering police assistance or acting on
the request.
c. Conduct discreet verification to have a better grasp about the subject of the request,
decision or order.
d. As much as possible, resolve the conflict peacefully by initiating a dialogue or consulta-

tion with the concerned parties and other stakeholders such as LGUs, NGOs, religious
leaders, council of elders, media if necessary, etc.
e. Organize appropriate number of personnel with a responsible officer as Team Leader.

Through a briefing, see to it that each member of the team clearly understands his/her role
in the impending task/operation.
f. Secure the availability of an ambulance with medical crew and fire truck with crew to be
positioned where they can best provide immediate assistance if need arises.
g. The presence of the sheriff or authorized officer of the court or quasi-judicial body is a
must during the implementation of the decision or order.
h. In any case, where jurisdiction over the area is vested in another, the PNP unit rendering
police assistance shall immediately turn over any arrested person to the nearest precinct/
police station for investigation and proper disposition.
i. The PNP unit that rendered police assistance shall submit after activity report to the
Chief, PNP, RD, PRO, or PD, PPO, as the case may be, detailing therein the following:
i. The names and number of PNP personnel involved; and

ii. The place, time and date, as well as the duration of the operation;
iii. The acts performed and any intervening untoward incident, if there be
any
j. Copy of the after activity report shall also be submitted too the court or quasi-judicial
body that requested for police assistance.
k. Video coverage shall be used as essential part of documentation and, as far as practi-
cable, encourage the presence of the media.
l. Convene the Crisis Committee if need arises.
m. In case of doubt, consult your next higher commander on the ground.
V. Flow Chart: (Annexes “A*” and “B*”)
VI. Penal Clause:
Any violation of this SOP shall be dealt with administratively as may be warranted
by evidence. Unit commanders shall be included in the investigation under the principle of
command responsibility. If evidence further warrants, criminal complaints shall also be
filed against those who may have committed acts or omissions contrary to the Revised
Penal Code or any special penal statutes.
VII. Repealing Clause:
Any issuance, memoranda, rules and regulations issued by the PNP inconsistent
herewith are deemed repealed or amended accordingly.
VIII. Effectivity
This SOP shall take effect fifteen (15) days from filing a copy thereof at the University
of the Philippines Law Center in consonance with Sections 3 and 4, Chapter 2, Book VIII
of Executive Order No. 292, otherwise known as “The Revised Administrative Code of
1987”.
(SGD.) AVELINO I. RAZON, JR.

Chief, PNP
--o0o--
Prescribing the Policies, Guidelines and Procedures in the

Conduct of Saturday Inspection of PNP Uniformed Personnel
1. REFERENCES:
a. Republic Act No. 6975 as amended by Republic Act No. 8551;
b. PNP Integrated Transformation Program;
c. PNP Commanders Manual;
d. PNP Circular No. 08-001 dated January 17, 2008, subject “Daily PNP Personnel Ac-
counting Report (DPPAR) System”;
e. PNPM-D-0-4-94 (DHRDD) entitled: “Ethical Doctrine”; and
f. LOI 2007-50 dated November 21, 2007 (Creation of Task Force “Bantay Bihis”).
2. SITUATION:
The Philippine National Police, in its effort to attain an organizational professional

character being the law enforcement arm of government initiated three (3) reform initiatives;
namely; the PNP Reform Commission Study spearheaded by former Justice Secretary
Sedfrey A Ordonez; the PNP Top Level Management Transformation Program; and the
United Nation Development Programme (UNDP) Study. The three (3) reform initiatives
were in agreement that the sad state of discipline of the Police Force was brought about
by the dysfunctions in almost all the administrative and operational management functions
that are rooted on the transition from the military or mission oriented to police or service
oriented instrument of democratic governance. The integration of the three studies gave
birth to the PNP Integrated Transformation Program on September 28, 2005 with the vision
of “Transforming the PNP to a more Capable Effective and Credible Police Force”. The
PNP Integrated Transformation Program intends to provide a road map to guide the Police
force in its metamorphosis from its present state to a God-centered, family-based and
service-oriented organization.
After almost (3) years that the PNP had been running the program, the advocates of
transformation remain to be the minority. The PNP Program Management Office, the
principal office in charge of the transformation program implementation is having a hard
time in reaching out to the 125,000 strong PNP personnel. The medium for transformation
advocacy must be increased.
Of late, the PNP Integrated Transformation Advocacy has been complemented with
the “Mamang Pulis” and “Aling Pulis” Project with the end in view of projecting to the
community at large a well respected police personnel who is fully committed to “Serve and
Protect” the people. Among the basic attitudes that should become inherent to all PNP
personnel are: God-fearing (“Makadiyos”); Humane (“Makatao”); Presentable (“Kaaya-ayang
Tignan”); Approachable (“Malalapitan”); and Dependable (“Maasahan”). Another support
project towards this end is the Project “Tamang Bihis” which intends to picture the PNP
personnel as a “knight in shining armor”, ever ready to defend the rights of the oppressed
and marginalized.
The Daily PNP Personnel Accounting Report (DPPAR) System has the inherent
character of spreading advocacy to the PNP Integrated Transformation Program; however,
it is imperative that a quality time should be segregated from the daily routinary grind so
that PNP personnel may be able to fully understand and internalize the essence of the
transformation program. Saturday Inspection intends to provide that medium.
3. PURPOSE:
This Circular prescribes the policies, guidelines and procedures in the conduct of
Saturday inspections of personnel from the National Headquarters, National Support Units,
Police Regional Offices, Police Provincial/City Offices down to City/Municipal Police Stations/
Precincts.
4. DECLARATION OF POLICY:
Consistent with Section 2 of Republic Act No. 8551, which provides that: “It is hereby
declared the policy of the State to establish a highly efficient and competent police force
which is national in scope and civilian in character administered and controlled by a national
police commission”; and that “the Philippine National Police shall be a community and
service oriented agency responsible for the maintenance of peace and order and public
safety”; the PNP hereby adopts a policy of developing an upright police culture through
the conduct of Saturday Inspections among other medium of advocating transformation.
5. OBJECTIVES:
This Circular aims to provide the medium to:
a. Increase the level of understanding of the vision, mission, and functions of all personnel
of the Police Force;
b. Inculcate to all personnel the PNP core values of Fear of God; Honor the Government
and respect the people;
c. To develop advocacy to the PNP Integrated Transformation Program from the highest to
the lowest rank through awareness, participation and commitment in the implementation
of its key result areas and component projects to correct identified dysfunctions.
d. To disseminate current programs and projects of the National Government, Civil Service
Commission, National Police Commission and PNP National Headquarters; and
e. To foster common ownership of the developing culture, norms and best practices by all
members of the Police Force.
6. DEFINITION OF TERMS:
For purposes of this Circular, the following terms are hereby defined:
a. Inspection in Rank – refers to the activity conducted by the different PNP offices/units to
check the attendance, proper wearing of uniform, accoutrements and paraphernalia while
in formation.
b. Police Information Continuing Education (PICE) – an activity intended to enhance police

skills and to promote work ethics that shall be in keeping with the mission of the PNP,
enrichment of the time-honored customs and traditions, and consciousness of the PNP
personnel on the norms and conducts including spiritual/moral enhancement as members
of the organization.
c. Daily PNP Personnel Accounting Report (DPPAR) – refers to the daily history of the
PNP offices/units. It is a permanent, statistical, and historical record of personnel and its
eventual custody rests with the Directorate for Personnel and Records Management.
d. Personnel Holding and Accounting Unit (PHAU) – refers to the office created as func-
tional unit of DPRM in charge of the daily accounting of personnel and custodian of all
reports.
e. PNP personnel – refers to the uniformed personnel of the PNP.
f. Organic – refers to PNP personnel rendering actual duties in his/her office/unit assign-
ment as reflected in the roster of personnel.
g. Duty – refers to PNP personnel actually rendering police administrative/operation duty

in his/her office/unit assignment and carried in the unit/office disposition and location of
personnel.
h. Detail – refers to personnel of PNP offices/units performing duty with other specific PNP
office/unit or other government agency but carried in the roster of personnel of his/her
mother unit.
7. POLICIES:
a. PNP Offices/Units shall conduct Saturday Inspections of their respective personnel.

The Personnel/Administrative Officer assisted by the respective Executive Senior Police
Officers (ESPOs) shall be in charge in the accounting and checking of attendance of their
respective personnel using the Daily PNP Personnel Accounting Report (DPAR) Form No.
08-01.
b. PNP personnel shall be required to attend at least one (1) Saturday Inspection every
month. Saturday Inspection shall be undertaken from 7 o’clock to 12 noon. Afternoon
sessions may be allowed as exigency arises.
c. PNP personnel who are on official mission, on sick call, on leave and similar circum-
stances shall be excused from attending the scheduled Saturday Inspection provided that
such absence is covered by appropriate documents issued by the concerned authorities
for such purpose.
d. Aside from accounting and inspection in ranks, the following activities may be included
during the conduct of such Inspection:
1) Practice parades, drills and ceremonies;

2) Lecture on the following important subjects:
a) Government programs, projects and issues;

b) Civil Service Commission Rules and Regulations;
c) NAPOLCOM resolutions and other issuances;
d) PNP Code of Professional Conduct and Ethical Standards;
e) Pertinent Laws relative to the present operational environment;
f) PNP Integrated Transformation Program;
g) PNP Reorganization Plan and Other legislative initiatives;
h) Current Programs, Projects and Strategic Thrust being run by the PNP; and
i) Other relevant issues
e. During the inspection in rank, the following shall be checked:
1) Uniform (GOA, Athletic, etc.)

2) Paraphernalia shoes, pistol belt, field cap/pershing cap);
3) Grooming (haircut, nails, etc);
4) Firearms, radios and other equipment issued to PNP personnel including the memoran-
dum receipt (MR);
5) Serviceability of PNP issued vehicles such as patrol cars and motorcycles.
f. Delinquency Report (DR) shall be issued to PNP personnel who shall be found not
wearing the prescribed/authorized uniform, and paraphernalia, firearms without Mission
Orders and Memorandum Receipts, tardiness during the conduct of inspections and other
analogous acts. The DR shall immediately be issued to correct any infraction committed
by PNP personnel during the inspection.
g. Personnel assigned in the National Headquarters and National Support Units based
in Camp Crame shall be grouped as follows:
SCHEDULE OFFICES/UNITS
1ST Saturday Command Group, D-Staff and IAS

2nd Saturday National Administrative Support Units
3rd Saturday National Operational Support Units
4th Saturday Task Forces, PACER including those detailed outside the PNP
h. For PNP personnel assigned with the Police Regional Headquarters including
those personnel assigned with NSUs but are based in PROs, the following shall be the
schedule:
SCHEDULE OFFICE/UNITS
1ST Saturday Reg’l Hqs ad RMG
3rd Saturday Regional Support Units and RIAS
i. For PNP personnel assigned with the Police Provincial/City Offices including those
personnel assigned with NSUs but are based in Provincial/City Police Offices, the following
shall be schedule:
2nd Saturday Provincial/City Office Hqs and PMGs

4th Saturday Provincial National Support Units and PIAS
j. For PNP personnel assigned with City/Municipal Police Stations, the Saturday Inspec-
tion shall be done every first Saturday of the month. Chiefs of Police are not precluded from
requiring their personnel to attend a weekly regular Saturday Inspections.
k. Following are the Office Primary Responsible (OPR) in the conduct of the different
activities during the activity:
1) The DHRDD shall supervise the formation of PNP personnel during inspections
and drills activities;
2) The Directorate for Police Community Relation (DPCR) to be assisted by

Directorate for Human Resource Doctrine Development (DHRDD) and their
counterparts in the PROs, PPOs and CPOs shall be in charge in the conduct
of Police Information and Continuing Education (PICE). In the City/Municipal
Police Stations the OPR shall be PCR Officer and assisted by the Administrative
Officer;
3) The Directorial Staff shall designate responsible PCOs to discuss current

circulars and issuances during the conduct of PICE in coordination with DPCR;
4) The DHRDD shall be in charge in the conduct of review for the NAPOLCOM
eligibility examination to interested personnel. PNP offices/units shall submit
to DHRDD the list of PNP personnel interested in attending the review;
5) The Directorate for Comptrollership in coordination with other government

agencies (GSIS, LANDBANK, TESDA, DTI, etc.), shall be in charge in the
conduct of Pre-Retirement Seminars, lectures on livelihood projects, post-
retirement employment opportunities, and other income generating activities;
6) The Directorate for Personnel and Records Management shall supervise the
conduct of the following activities in coordination with concerned Support Units:
a) The conduct of lectures on Health Awareness Programs; and
b) The conduct of lectures and activities in the moral/spiritual enhancement

of PNP personnel.
7) The Headquarters Support Service shall be in charge in the assembly and

formation of PNP personnel during Saturday inspections.
I. PNP personnel who shall be found committing the same infraction for two (2) inspections
shall be administratively charged in accordance with existing rules and regulations.
m. PNP Personnel who shall be absent during scheduled Saturday Inspection without
justifiable reason shall be administratively charged in accordance with existing rules and
regulations.
8. PENALTY CLAUSE:
Any violation of this Circular shall be a ground for administrative sanction in accordance
with existing laws, rules and regulations.
9. EFFECTIVITY:
This Memorandum Circular shall take effect after fifteen (15) days from the filing of a
copy hereof at the University of the Philippines Law Center in consonance with Sections 3
and 4 of Chapter 2, Book VII of Executive Order No. 292, otherwise known as “The Revised
Administrative Code of 1987”, as amended.

Chief, PNP
--o0o--
Defining the Functional Relationship and Responsibilities of the

Integrated Police Operations in Eastern and Western Mindanao,
other Directorial Staff, Police Regional Offices and National Support Units
I. REFERENCES:
a. G.O. Number DPL-08-16 dated September 16, 2008

b. Revised Reorganization plan of the PNP; and
c. C, PNP’s order (Leader’s Guide)
II. PURPOSE:
This Circular prescribes the operational guidelines, procedures and responsibilities

to be followed in the implementation of General Orders Number DPL – 08 – 16 (Provisional
activation of the Directorate for Eastern and Western Mindanao Integrated Police Operations).
III. OBJECTIVES:
a. To enhance the span of control being exercised by the chief, PNP in the administration,
operation, and control of the PNP;
b. To further strengthen the efficient and effective working relationship among the Com-
mand Group, Directorial Staff, Integrated Police Operations, Regional Police Offices, and
National Support Units; and
c. To lay down procedures on how intelligence, operations, investigation, hot pursuit op-
erations and arrest of suspects involved in trans-regional crimes shall be carried out.
IV. DEFINITION OF TERMS:
1. Control – is the power to regulate the actions of a subordinate to ensure that the objec-
tives and policies of the organization are carried out. It includes the authority to modify,
amend or rescind decisions of subordinates.
2. Operational Control – The authority delegated to a commander to direct forces provided

to him so that he may accomplish specific missions or tasks that are usually limited by
function, time, or location; and to deploy the necessary units and retain or assign tactical
control of those units. It does not of itself include administrative or logistic responsibility,
discipline, internal organization, or unit training.
3. Direct and Supervise – Direct and supervise shall include authority to act directly when-
ever a specific function is entrusted by law or regulation to a subordinate; direct the perfor-
mance of duty; restrain the commission of acts; review, approve, reverse or modify acts
and decisions of subordinate officials or units; determine priorities in the execution of
plans and programs; and prescribe standards, guidelines, plans and programs.
4. Command – is the authority that a Director/Head of Office lawfully exercises over subor-
dinates by virtue of designation.
5. Responsibility – is the obligation to carry out an assigned task to a successful conclu-

sion and goes with the authority to direct and take the necessary action to ensure suc-
cess.
6. Functional authority – is the power delegated by the CPNP to the D-Staff to control
specified processes, practices, and other matters of the NSUs as they relate to specific
staff responsibilities.
7. Directing Functional Authority – the power of the members of the D-Staff to draw up and
transmit orders and instructions to the Directors of the PROs and NSU on matters falling
under their respective areas of expertise, within the framework of existing policies and
command guidance.
8. Supervisory Authority – is the delegated authority which is neither line nor staff which
enables the delegate to oversee some specified responsibilities.
9. Supervision - the power to direct and oversee the actions of subordinate towards the
accomplishment of the objectives of the organization.
10. Inter-Operability – as used in this circular, shall mean the conduct of police operations
or joint PNP/AFP movement against lawless elements in addressing issues and concerns
affecting peace and order situation such as insurgency, criminality and terrorist attacks
involving or affecting two (2) or More Police Regional Offices under DIPO.
V. POLICY GUIDELINES:
A. General Guidelines
To provide for a clearer delineation of authority relationship between D-Staff and DIPO,
following shall be adopted:
1. The Deputy Chief for Administration (TDCA), through The Chief of Directorial Staff (TCDS),
shall have supervisory authority over the following members of the D-Staff: The Director for
Personnel and Records Management (TDPRM); The Director for Logistics (TDL); The
Director for Human Resource and Doctrine Development (TDHRDD); The Director for Re-
search and Development (TDRD); and The Director for Comptrollership (TDC).
2. The Deputy Chief for Operations (TCDO), through The Chief of Directorial Staff (TCDS),
shall have supervisory authority over the following members of the D-Staff; The Director for
Intelligence (TDI); The Director for Operations (TDO); The Director for Plans (TDPL); The
Director for Police Community Relations (TDPCR); The Director for Investigation and De-
tective Management (DIDM); and The Directors for Integrated Police Operations (DIPO).
B. Functional Relationship of DIPO and DO
1. DIPO
a. The DIPO shall formulate and implement operational plans/policies/directives/

SOPs in accordance with the PNP Master/General plans/policies/directives/
SOPs and applicable to the environmental peculiarities in respective AOR.
b. Formulate and oversee the peace and order implementation of policing plans
and programs peculiar to the AOR in support to socio-economic development.
2. DO
a. DO shall continue to assist the CPNP in the exercise of command, control,

direction, coordination and supervision of all activities concerning operations,
employment and deployment of the PNP.
b. Formulation and implementation of PNP Master Plans, General policies/

Issuances/Directives and SOPs on ISO, Anti-Criminality Campaign, Law
Enforcement and Counter Terrorism shall remain with DO.
C. Functional Relationship of DIPO and other D-Staff
D-Staff and DIPO shall maintain a coordinating relationship. A coordinating relationship

shall mean but not limited to advising, planning, synchronizing and harmonizing actions in
consultation with their respective fields of interest.
D. Functional Relationship of DIPO and PRO
1. DIPO:
The DIPO shall supervise and control police operations against terrorists insurgents
and criminals only during operations involving trans-regional boundaries. In the absence of
inter-regional police operations the responsibility shall remain with the RDs, PROs.
2. Police Regional Offices (PRO):
a. PROs shall continue to maintain peace and order, prevention and control of
crimes solely affecting his regional AOR.
b. Update and provide information/reports to DIPO of the existence of any trans-

regional crimes or lawless group operating in his AOR or other nearby PROs
under one (1) DIPO.
E. Functional Relationship of DIPO and NSUs
NSUs shall continue to perform its functional authority in its respective regional offices
in support to PROs on matters relating to their mandated task and shall be under the
operational supervision of DIPO.
VI. OPERATIONAL GUIDELINES:
1. DIPO shall direct supervise the conduct of trans-regional anti-criminality, counter-terror-

ism and counter-insurgency operations against lawless elements which affects two (2) or
more PROs.
2. In the absence of trans-regional police operations against anti-criminality, terrorists and

insurgents the responsibility of maintaining peace and order shall remain with RDs, PROs.
3. PRO shall be under operational control and supervision of DIPO during the conduct of
inter-regional operations and shall take instructions/directives from DIPO.
4. RDs, PROs shall continue to exercise supervision and control over PPOs/CPOs/MPS
on all matters relating to the maintenance of peace and order within his AOR.
5. NSUs shall be under the direct supervision and control of DIPO during inter-operability
operations provided that the task to be performed by the concerned NSUs is in conso-
nance with its primary task.
6. Coordination on matters of intelligence, investigation, community relations or opera-

tions involving trans-regional crimes should be made to the concerned DIPO. In the ab-
sence of trans-regional operations, coordination should be made to the concerned PRO.
7. RDs, PROs shall be responsible in rendering the initial reports of all crimes committed
in his AOR to DO for information of the CPNP. However, PRO is not prevented from simul-
taneously furnishing a copy of said reports to DIPO when the matter can be the subject of
future inter-regional operations.
8. DIPO is tasked to render reports directly to the CPNP through the Command Group
only when there is occurrence of crimes or operations involving trans-regional concerns
conducted in his AOR copy furnished concerned D-Staff for planning, statistics, planning
and other similar purposes.
9. NSUs shall render reports to DIPO of the result of operations conducted in support to
inter-regional peace and order campaigns copy furnished its head unit/office in the Na-
tional Headquarters.
VII. APPLICABILITY OF OPERATIONS:
The presence of any of the following crimes enumerated below whenever affects the
peace and order situation of trans-regional security shall be the responsibility of DIPO.
1. Terrorism (Violation of Human Security Act)

2. Human Smuggling
3. Piracy in General
4. Rebellion or Insurrection
5. Arms Smuggling
6. Hi-jacking
7. Coup d’etat
8. Kidnapping for Ransom
9. Highway Robbery
10. Marine Crimes
11. Other crimes as may be subsequently identified
However, all crimes affecting the peace and order situation of only one locality/
municipality/city/province/ under one (1) region shall be the responsibility of PROs.
VIII. COORDINATING INSTRUCTION:
1. Conduct of Investigation
Investigation of crimes enumerated in paragraph VII of this Circular, the Criminal

Investigation and Detections Group (CIDG) and/or PRO upon orders of the concerned
DIPO shall investigate and file cases in court in close coordination and with the support of
concerned PNP units/office.
2. Hot Pursuit Operations
During hot pursuit operations, the concerned PRO/PPOs/NSUs are not prevented to
pursue its operations or investigation as the case maybe although it may transcend
boundaries provided lateral coordination is timely made to the affected PRO or PPO and
the concerned DIPO shall be notified through the fastest means of report.
3. Responsibility of Handling Cases
a. DIPO
Handling of sensational cases enumerated in para VII of this Circular shall be under
the close supervision of DIPO.
DIDM, DI and DO in coordination with DIPO and the concerned PROs shall prescribe
the assignment of cases to be handled either jointly or separately by DIPO or PRO.
b. PRO
All crimes committed within the limited AOR of PRO or its lower units PPO/CPO/
CPS/MPS shall be handled by said units in the exercise of its inherent duties and
responsibilities with the end view of promoting justice and peace in the locality.
IX. RESCISSION CLAUSE:
All PNP policies, directives and other issues which are inconsistent with the provisions
of this Circular are deemed rescinded or modified accordingly.
X. EFFECTIVITY:
This Circular shall take effect (15) days from the filing of three (3) copies thereof at
the University of the Philippines, Law Center in consonance with Sec. 3 and 4, Book VII of
EO No. 292, otherwise known as “The Revised Administrative Code of 1987 as amended”.
Chief, PNP
PHILIPPINE OVERSEAS EMPLOYMENT

ADMINISTRATION
Advisory No. 26, S. of 2008
Filipino Migrant Workers Documented or Undocumented
Pursuant to Presidential Directive and as resolved by POEA Governing Board

Resolution No. 03, Series of 2008*, the Administration shall adopt the term “irregular
OFWs” in reference to undocumented workers as defined in RA 8042 and non-POEA
registered workers in all its correspondence, including statistical reports and/or presenta-
tions in order not to discriminate but give respect to the workers.
For compliance.
Adopted: 23 September 2008
(SGD.) JENNIFFER JARDIN-MANALILI

Administrator
-o0o-
Market Advisory No. 27, S. of 2008
UAE Implements New Visa Schemes
The Philippine Overseas Labor Office in the United Arab Emirates has reported
that the UAE Department of Naturalization and Residency has implemented new visa
rules and procedures on the entry of foreigners starting 29 July 2008.
The following are the new visa categories:
1. Visit visa – Expatriate workers who have valid resident visas in the UAE can apply for a
30 or 90 day visit visa (both are non-renewable) for their spouse and blood relatives up to
the second degree of consanguinity.
A visit visa, which is valid for 30 days, costs Dhs610.00; one with validity of 90 days,
Dhs1,110.00. A refundable deposit of Dhs1,000.00 for health insurance is also required.
Visit visas can not be converted to work visas.
2. Mission visa – Issued in conjunction with the Ministry of Labour’s (MOL) temporary
permit, this type of visa is for temporary work and is good for 3 months. The visa costs
DHs600.00 and can be renewed for a similar period of 3 months for a fee of Dhs 1,200.00.
The applicant must obtain the permit from the UAE MOL.
The MOL requires mission visa holders to leave the country before sponsors can apply
for employment or work visas for them. The company must also produce a statement from
the Naturalization and Residency Department (Immigration) confirming that the person
had left the country.
There is no prescribed period on how long the worker should stay out of the country in
case he/she has departed from the UAE after the expiry of the mission visa while awaiting
the issuance of a new employment visa.
3. Tourist visa – The tourist visa is valid for 30 days and is renewable for another 30 days.
A duly licensed hotel, travel and tourism agency can apply for and in behalf of its clients.
The visa fee is Dhs 100.00; Dhs500.0 for renewal. A refundable deposit of Dhs 1,000.00
is required for health insurance.
4. Student (visit) visa – Issued upon application of a duly recognized educational institu-
tion in the UAE, this visa is valid for 60 days upon payment of an application fee of
Dhs1,100.00 and is renewable for another 60 days for a fee of Dhs610.00. A refundable
deposit of Dhs1,000.00 for health insurance is required.
5. Multiple entry visa – A reputable company in the UAE can apply for multiple entry visas,
which are good for 6 months, for their business partners overseas. However, each visit
must not exceed 14 days. The visa cost Dhs2,110.00.
6. Medical entry visa – A patient can apply for a medical entry visa specifying the details of
his/her medical treatment. The fee for this visa, which is valid for 90 days, is Dhs1,100.00.
It is renewable for another 90 days upon payment of Dhs610.00.
7. Conference/exhibition/festival entry visa – An organizer of a conference, exhibition or

festival can apply for this visa which is good for 30 days only. The fee is Dhs210.00.
8. Special mission entry visa – Ordinarily known as transit visa, his type of visa is issued
to businessmen and tourist sponsored by a company, a commercial establishment or a
hotel licensed to operate in the UAE. The visa is valid for 14 days for a fee of Dhs230.00
9. Transit visa – Issued to travelers passing through UAE airports, this visa is issued for 96
hours and is sponsored by an airline operating in the UAE.
10. Investor visa - This visa is issued to an expatriate investing at least Dhs70,000.00 in a
partnership with a UAE national. The visa is good for 3 years for a fee of Dhs300.00.
11. Employment visa – This type of visa, which is valid for 3 years, can be secured by a
duly-licensed company in behalf of a foreign national. Upon arrival of the foreign national,
the company must obtain a work permit and apply for residency visa thereafter. The
residence visa permit becomes invalid if the holder remains out of the UAE for more than 6
months.
All application for visas before 29 July 2008 will be processed under the old system.
For the Information and guidance of all concerned.
(SGD.) JENNIFER JARDIN MANALILI

Administrator
—o0o---
Board Resolution No. 04, S. of 2008
Policy of the State to Afford Full Protection to Labor,

Local and Overseas, to Protect the Rights of Workers
and to Promote their Welfare
WHEREAS, it is the policy of the State to afford full protection to labor, local and
overseas, to protect the rights of workers and to promote their welfare;
WHEREAS, it is the mandate of the Philippine Overseas Employment Administration

to ensure the safety and well-being of Overseas Filipino Workers, including seafarers on
board ocean-going vessels:
WHEREAS, the recent spate of piracy incidents of merchant vessels along the
Gulf of Aden and the hostage-taking off the coast of Somalia and Yemen of Filipino seafarers
on board call for immediate precautionary measures;
WHEREAS, there is an urgent need to ensure that Filipino Seafarers on board

merchant vessels passing through the Gulf of Aden are protected from possible attacks
by pirates and compensated commensurate to the risk;
WHEREAS, the Governing Board, concerned with the welfare of Filipino seafarers,
consulted with the representatives of the manning industry;
NOW THEREFORE, the POEA Governing Board, in a meeting duly convened,

RESOLVES, as it is hereby resolved.
1. Based on the documented locations of incidents of piracy, to declare as a “high risk”

zone the following coordinates within the Gulf of Aden:
Latitude 120 13’ North Longitude 430 39’ East
Latitude 150 22’ North Longitude 530 10 East
2. To enjoin the Shipowners to implement precautionary measures on their vessels pass-

ing through the “high risk” zone in the line with international advisories.
3. That the seafarers, while sailing within the declared high-risk zone, shall receive double
the amount of his basic wage, overtime pay, and leave pay. On any death, injury or illness
while sailing within the high risk zone, the seafarer shall also be entitled to a double
amount of compensation and benefits. The higher pay and higher death and disability
compensation and benefits provided herein shall be limited to the duration of vessel’s
transit through the “high risk zone” and in case of detention of the seafarers, the duration
thereof. The Master must immediately notify his Shipowner/Manning Agent and the crew
on board the date and time of his vessel’s entry and exit from the coverage of the “high risk”
zone as defined herein.
4. The Master shall inform the seafarer of the voyage passing through the high risk area as
soon as the voyage schedule is known.
The provision herein provided shall apply to all Filipino seafarers effective 07 October
2008.
(SGD.) MARIANITO D. ROQUE

Secretary of Labor and Employment
Chairman of the Governing Board
(SGD.) GREGORIO S. OCA (SGD.) LEONARDO B. DE OCAMPO

Member Member
(SGD.) GUILLERMINA T. GABOR (SGD.) APOSTOL POE M. GRATELA

Member Member
(SGD.) JENNIFER JARDIN-MANALILI

Vice-Chairperson
PHILIPPINE PORTS AUTHORITY
Inclusion of the RORO Terminal Operations for RORO Cargoes/Vessels in the

15% Cost-Recovery Adjustment Under PPA Memorandum Circular No. 08-2008
Pursuant to BoardCom Resolution No. 2008-1158 dated 21 November 2008, the

request of Bicol Terminal Arrastre Operators Association to include RORO Terminal
Operations for RORO cargoes/vessels in the recent provisioned 15% cost recovery
adjustment granted to all authorized cargo handling operators nationwide under BoardCom
Resolution No. 2008-1145 is hereby approved.
Further, said BoardCom Resolution amends PPA Memorandum Circular No. 08-2008
to include the RORO terminal operators in the 15% provisional cost-recovery adjustment.
This Circular shall take effect thirty (30) days after the completion of its publication in
at least two (2) newspapers of general circulation.
(SGD.) ATTY. OSCAR M. SEVILLA
General Manager
--o0o--
Second Tranche Increase on Vessel-Related Container Handling Services at

South Harbor and Manila International Container Terminal (MICT)
Pursuant to PPA Board Com Resolution No. 2008-1119 dated March 3, 2008, a
twelve (12%) percent rate adjustment to be implemented in two (2) tranches was approved
on the vessel-related (stevedoring) tariff on foreign container handling services at South
Harbor and MICT, as follows:
1st Tranche - 5% increase in 2008, and

2nd Tranche - 7% increase effective 01 January 2009 subject to review of PPA
Management.
Considering the spiraling effect of the global financial crises, the second tranche
adjustment of seven (7%) percent is found to be in order.
This Memorandum Circular shall take effect thirty (30) days after publication in
(SGD.) ATTY. OSCAR M. SEVILLA

General Manager
PHILIPPINE RECLAMATION AUTHORITY
Rules and Procedures for the Processing of Applications for Titling of

Completed Unauthorized or Illegal Reclamation through PRA
Pursuant to Presidential Decree No. 3-A, (Section 1), dated January 11, 1973 and
Executive Order No. 525, (Section 1), dated February, 1979 in relation to PRA’s powers
and functions under Presidential Decree No. 1084 [Section 5 (p)] and Executive Order No.
525 [Section 2 (b)] as well as Executive Order No. 380 dated October 26, 2004, which
among others, transformed the Public Estates Authority (PEA) into the Philippine
Reclamation Authority (PRA), the following Rules and Procedures for the processing of
applications for the titling of completed unauthorized or illegal reclamation are hereby
promulgated.
SECTION 1. Rationale
It is the policy of the Government to promote a balanced and harmonious development

in the countryside by attracting local and foreign investors in infrastructure development
involving reclamation component, e.g. ports, mixed commercial/industrial development,
eco tourism development schools, and/or simple residential expansion. As a country imbued
with a long coastline, these developments and investments provide the much needed
boost of employment generation and multiple economic activities with far reaching impact
in the locality and the country in general. As a government instrumentality, the PRA is
mandated to support these activities by providing a window of opportunity for a long lasting
security of investment and ownership of the reclaimed land as component of a bigger
project by ensuring that titles of these properties will be properly secured to the clear
advantage of the government and pursuant to existing laws, rules and regulations.
SECTION 2. Coverage
These rules and procedures shall cover all completed unauthorized or illegal
reclamation through the country which were or are being undertake prior to the effectivity of
this Administrative Order (A.O.).
SECTION 3. Definition of Unauthorized or Illegal Reclamation
Unauthorized or illegal Reclamation shall refer to those reclamation projects which

have been undertaken and completed by private parties and/or government agencies/entities
which are not authorized to reclaim under existing laws, without the required permit from
PRA (or PEA) and approval by the President of the Philippines.
SECTION 4. Guidelines
1) The reclaimed area shall be forfeited in favor of PRA for and in behalf of the National
Government by securing the Title thereto in the name of the Republic of the Philippines
(RP) or PRA subject to reimbursement by the RP/PRA of the actual cost incurred in
undertaking the reclamation.
2) At the option of PRA and subject to the legal qualifications of the parties concerned,
the reimbursement may be (a) in the form of reclaimed land; (b) from the proceeds of the
sale of the reclaimed land; or (c) lease of the reclaimed land over an equivalent time.
3) In case of reimbursement in the form of reclaimed land,
(a) Only applicants qualified under the Constitution and existing laws may avail
of this form of reimbursement.
(b) The applicant/reclaimer (i.e., party responsible in undertaking the

reclamation) shall submit to PRA, for validation, the actual expenses incurred
together with all the supporting documents thereof.
(c) The actual cost validated and agreed to by PRA shall be the amount to be
reimbursed with equivalent reclaimed land. The value of the reclaimed , for the
purpose of computing the area shall be based on the current appraisal value of
the illegally reclaimed land, to be determined by an independent appraiser/s to
be hired by PRA for the said purpose.
(d) The remaining areas of the reclaimed land shall be retained by RP/PRA as
its own, which in no case shall be less than thirty percent (30%) of the total
area of the reclaimed land.
4) In case of reimbursement by means of the proceeds from the ale of the reclaimed
lands,
(a) The sale shall be done by PRA through public bidding and subject to
constitutional limitations and accounting and auditing rules and regulations.
(b) The base selling price of the land shall be its appraisal value at the time of
bidding.
(c) The appraisal values shall be determined by independent appraisers to be

hired by PRA for the purpose.
(d) The applicant/reclaimer of the reclaimed lands being sold if qualified under
the Constitution and other existing laws may participate in the bidding.
(e) The applicant/reclaimer shall be reimbursed of the actual costs incurred

from the proceeds of the sale. No such reimbursement shall exceed the sales
proceeds and in all cases, the PRA shall retain the sales proceeds equal to not
less than thirty percent (30%) of the current appraisal value of the land subject
of sale.
5) In case of reimbursement through lease of reclaimed land over a period of time,

the applicant/reclaimer, if qualified under the Constitution and existing laws, shall be given
preference to use the reclaimed land subject to payment of lease rentals which shall be
applied against the amount of reimbursement.
6) In all the foregoing cases, the applicant/reclaimer shall pay a penalty fee of ten
percent (10%) of the reclamation cost plus VAT.
7) These guidelines shall be without prejudice to those persons whose rights have
been violated due to reclamation and for which those parties responsible for the reclamation
shall be held accountable and liable for any claims or damages arising therefrom.
SECTION 5. Procedures (Flowchart - Annex 1*)
1) The owner/reclaimer /developer shall apply with PRA for the registration of its
completed reclamation project.
2) Upon filing of the application for registration, the applicant shall pay the following
fees:
Filing Fee - P500 per hectare but not less than P20,000 plus VAT to be paid upon
filing of the application.
Processing Fee - P1,000 per hectare but not less than P100,000 plus VAT
3) The application for registration shall be accompanied by the following:
a.historical facts about the reclamation;
b. project description or feasibility study, as applicable;
c. as-built plans and actual cost of the reclamation;
d. site development or master development plan/land use plan;
e. Clearance/s or Permits, if any, from any government agency like DENR for
Environmental Compliance Certificate (ECC), and others;
f. Preliminary Survey Plan and Final Survey Plan and Returns after undertaking
joint verification survey with PRA;
g. Other documents which may be required in the process of PRA’s evaluation.
4) Submission of all documents and/or compliance with all requirements must be

done by the applicant/s within a maximum period of ninety (90) calendar days from date of
receipt of the application for registration by PRA. If justified, the period of submission/
compliance may be extended as may be determined by PRA.
5) PRA undertakes reviews/evaluation and conducts joint verification survey with the
applicant.
6) Applicant submits to PRA the survey returns and final survey plan, which shall be
in the name of PRA and upon PRA approval of the project, pays the Penalty Fee equivalent
to ten percent (10%) of the approved reclamation cost plus VAT.
7) After evaluation and upon full compliance with requirements, PRA approves the
reclamation and recommends the project for approval of the Board.
8) Upon endorsement of PRA, DENR (Land Management Services) approves the

final survey plan and technical descriptions and transmits the same to PRA and endorses
the issuances of presidential proclamation by the President covering the subject Reclaimed
Land based on the approved Final Survey Plan and Site Development Plan or Master
Development Plan/Land Use Plan, as the case may be. In the case of Master Development
Plan, the lot allocations as therein provided shall be the basis for recommending the
issuances of the presidential proclamation which will declare which areas are alienable
and open for disposition and which areas are devoted for public use, public service or the
development of the national wealth.
9) Upon issuance of the presidential proclamation, PRA requests the DENR to issue
the corresponding Special Patents, and through the Register of Deeds (RD) and Land
Registration Authority (LRA), the Original Certificate of Titles (OCT) as follows:
a) Those reclaimed areas allocated for roads, open spaces or for public use or
purpose or the development of the national wealth shall be titled in the name of the
Republic of the Philippines;
b) Those reclaimed areas, which are declared alienable or disposable, shall be

titled in the name of PRA.
10) The process for the disposition/conveyance of reclaimed lands shall start only
after the President of the Philippines shall have issued the required proclamation.
Subsequently, the reimbursement of the costs incurred by the applicant/reclaimer shall be

done in accordance with Section 5 (2) hereof.
SECTION 7. Separability Clause
If any part of these rules and procedures shall be held to be unconstitutional or

invalid, other parts hereof which are not affected shall continue to be in full force and effect.
SECTION 8. Effectivity
These Guidelines and Procedures shall take effect fifteen (15) days following its
complete publication in two (2) newspapers of general circulation, fifteen (15) days from
the date of filing with the University of the Philippines Law Center whichever is later as
provided under Book VII, Chapter 2, Section 4 of the Executive Order No. 292 or the
Administrative Code of 1987.
PHILIPPINE RECLAMATION AUTHORITY
BY: (SGD.) ANDREA D. DOMINGO

General Manager and CEO
SECURITIES AND EXCHANGE COMMISSION
SEC Memorandum Circular No. 9, s. of 2008
Guidelines on the Registration of All Outstanding Shares

Prior to Listing in the Philippine Stock Exchange
In its meeting on October 3, 2008, the Commission resolved to issue the following
guidelines on the registration of shares that will be offered to the public by way of primary
or secondary offering, or both, and all unregistered outstanding shares of listed companies
or companies that plan to list at the Philippine Stock Exchange (PSE).
SECTION 1. All outstanding shares of the following companies shall be registered

with the Commission:
(a) Companies that will make an Initial Public Offering (IPO);
(b) Companies applying for Listing By Way of Introduction; and
(c) Public companies that will make an IPO or Listing By Way of Introduction.
SECTION 2. No registration shall be required for the outstanding shares of the

following companies:
(a) Shares already registered with the Commission but were not listed by their
companies at the PSE and are applying for listing for the first time;
(b) Registered shares of companies, or shares of companies covered by Sections

10.1 and 10.2 (Exempt Transactions) of the Securities Regulations Code (SRC), that are
applying for listing at the PSE; and
(c) Shares already listed at the PSE that were not registered with the Commission
pursuant to Section 5(a)(3) of the Revised Securities Act, now Section 9(e) of the SRC.
SECTION 3. Notwithstanding the exemption provided for in Section 2, the companies

referred to shall disclose to the Commission the total number of shares that will be issued
and offered to the public.
SECTION 4. All companies that want to apply for listing at the PSE shall, prior to
listing, accomplish and submit SEC Form 10-1 to the Commission.
SECTION 5. This Memorandum Circular shall take effect immediately.
FOR THE COMMISSION:
(SGD.) FE B. BARIN
Chairperson
--o0o--
SEC Memorandum Circular No. 10, S. 2008
Amendments to Philippine Accounting Standard 39

and Philippine Financial Reporting Standard 7
In its meeting on November 13, 2008, the Commission en banc resolved to adopt
amendments to Philippine Accounting Standard 39 - Financial Instruments:
Recognition and Measurement and Philippine Financial Reporting Standard 7 -
Financial Instruments: Disclosures to permit the following actions for some financial
instruments.
"Reclassification of securities out of the trading category in rare circumstances;

"Reclassification to loan category (cost basis) if there is an intention and ability to
hold the financial instrument for the foreseeable future (in the case of loans) or until
maturity (for debt securities).
The following guidelines shall be observed in the implementation of the abovestated

amendments to PAS 39 and PFRS 7:
1. All companies that intend to make the reclassification shall strictly comply with
the conditions for the exercise of such option and, to ensure transparency in financial
reporting, highlight in their disclosures or Notes the following information:
a. The financial assets reclassified into and from each category;
b. For each reporting period until derecognition, the carrying amounts and fair
values of all financial assets reclassified in the current reporting period and
previous reporting periods;
c. For financial assets reclassified in rare circumstances, the facts that would
establish such kind of circumstances;
d. In the reporting period to which financial assets are reclassified, the fair
value of the gains or losses of those assets as recognized either in profit or
loss, or in equity (other comprehensive income) in that reporting period and
previous reporting periods.
e. For the remainder of the instruments’ lives, the gains or losses that would
have been recognized in profit or loss, or equity had they not been reclassified,
together with the gains, losses, income and expenses now recognized;
f. As at the date of reclassification, the effective interest rates and estimated

amounts of cash flows the company expects to recover.
2. The effective date of the amended standard shall be July 1, 2008, hence, no
reclassification before such date shall be permitted. On first application, companies can
revert to July 1, 2008 and make transfers as of that date. Any subsequent reclassification
made in periods beginning on or after November 15, 2008 shall be effective from the date
the reclassification is made. Companies with cross-border offerings or trading may use the
November 1, 2008 cut-off date set by the International Accounting Standards Board.
3. The reclassification of financial assets under this Circular should be supported by

a resolution of the company’s Audit Committee, as certified by the Corporate secretary,
and documents showing the change of intention on the financial assets proposed to be
reclassified. The said resolution shall indicate a single chosen date of rare circumstance,
in the case of Held for Trading reclassification, and the date of change of intention, for
reclassification of Available for Sale to Held to Maturity category.
4. Companies that are required to submit quarterly reports shall reflect in their quarter
report as of September 30, 2008 any reclassification made in accordance with this Circular
and comply with the following requirements:
a. The resolution of the company’s Audit Committee approving the

reclassification shall be attached to the report and shall indicate, among others,
the single chosen date of rare circumstance in the case of Held for Trading
reclassification, and the date of change of intention, for reclassification of Available
for Sale to Held to Maturity category. The information in the said resolution
shall cover any reclassification made as of September 30, 2008, and from
October 1 to November 14, 2008.
b. Companies that will avail of the reclassification option under the said standard
shall have up to November 30, 2008 within which to submit the said report to
the Commission.
c. For companies that have already submitted their quarter report as of

September 30, 2008, an amended report that complies with the above
requirements should be filed on or before November 30, 2008.
5. For pre-need companies, reclassification of Held for Trading or Available for Sale
investments to Held to Maturity shall be allowed only upon showing to the Commission
that their liquid assets will be sufficient to service maturing/availing plans within the term of
the instruments proposed to be reclassified.
The concerned company shall submit to the Commissions the resolution of its Audit
Committee which should state, among others, the single chosen date of rare circumstance
in the case of Held for Trading reclassification, and the date of change of intention for
Available for Sale to Held to Maturity category. The information shall cover reclassifications
proposed to be made as of September 30, 2008, and from October 1 to November 14,
2008.
6. Mutual funds or investment companies cannot avail of the reclassification option

provided for in this Circular on account of the nature of their business, in particular, the
redeemable feature of their shares and the prescribed daily computation of net asset value
per share which are used as basis for the computation of redemption and selling prices of
their instruments.
7. This Circular, and the aforementioned amendments to PAS 39 and PFRS 7 shall
take effect immediately.
FOR THE COMMISSION:
(SGD.) FE B. BARIN
Chairperson
SOCIAL SECURITY SYSTEM

Resolution No. 376-s.2008, July 10, 2008
Code of Ethical Standards For Social Security System

Officials and Employees
Section 1.Title. This Code shall be known and cited as “Code of Ethical Standards
for Social Security System (SSS) Officials and Employees”.
Section 2. Declaration of Policy. It is the policy of the SSS to promote a high standard
of ethics, maintain honesty and integrity in public service and take positive and effective
measures to prevent graft and corruption. SSS officials and employees shall at all times
be accountable to the people and shall discharge their duties with utmost responsibility,
integrity, efficiency and loyalty, act with patriotism and justice, lead modest lives and
uphold public interest over personal interest.
Likewise, as trustee of the funds contributed by the members by compulsion of law,

the SSS needs to adopt a Code of Ethical Standards that shall cover all SSS officials and
employees by reason of the very distinct nature of their responsibility.
Section 3. Vision. The SSS aims to develop and promote a viable, universal and
equitable social protection scheme through world-class service.
Viable means that is financially sustainable, non-distortionary, and requires no

government subsidy. Current and future generations of workers and retirees are also
assured of meaningful benefits in return for their contributions.
Universal means that protection shall be provided to all residents of the Philippines,
citizens and non-citizens alike, regardless of race, creed, gender, age, geographic location
and socio-economic status.
Equitable means fair and uniform coverage shall be made available to all. Benefit
entitlements shall be closely linked with contributions.
World-class service means that the highest standards of service shall be used to
ensure total member satisfaction. A multi-skilled, forward-looking and generalist SSS
workforce shall provide service that is prompt, accurate and courteous.
Section 4. Coverage. This Code shall apply to all SSS officials and employees,
whether in the career or non-career service.
Section 5. Duty of SSS Officials and Employees. All SSS officials and employees
shall have the duty to comply with all the laws and regulations applicable to public servants
including but not limited to the 1987 Constitution, Republic Act No. 6713 (Code of Conduct
and Ethical Standards for Public Officials and Employees), Republic Act No. 3019 (Anti
Graft and Corrupt Practices Act), Civil Service Rules and Regulations, SSS Manual on
Personnel Policies, Rules and Regulations and all other internal policies, issuances and
procedures.
Section 6. Definition of Terms. As used in this Code, the term:
1. “Ethics” or “Code of Ethics” means precepts expressing in general terms the

standards of professional conduct expected of SSS officials and employees in their
relationship with the public, SSS members and co-employees.
2. “SSS officials and/or employees” refer to officials and employees of both the
SSS and Social Security Commission (SSC) including commissioners and coterminous
employees.
3. “Confidential Information” means all information classified as confidential by

reason of statute, court order, administrative policy or mutual agreement; or records and
reports submitted by the employer or the member to the SSS pursuant to Section 24 (c) of
the Social Security Law (Republic Act No. 8282) as well as information not yet made
public including pending cases, information or records concerning the work of any SSS
official or employee, which includes among other notes, drafts, research papers, internal
discussions, internal memoranda, records of internal deliberations and similar papers.
4. “Career Service” shall be characterized by (1) entrance based on merit and fitness
to be determined as far as practicable by competitive examination, or based on highly
technical qualifications; (2) opportunity for advancement to higher career positions; and (3)
security of tenure.
5. ”Non-Career Service” shall be characterized by (1) entrance on bases other than

those of the usual tests of merit and fitness utilized for the career service; and (2) tenure
which is limited to a period specified by law, or which is coterminous with that of the
appointing authority or subject to his pleasure, or which is limited to the duration of a
particular project for which purpose employment was made.
6. “Immediate family or relative” shall include relatives within the fourth civil degree
of consanguinity or affinity.
Section 7. Norms of Conduct. Every SSS official and employee shall observe the
following standards of personal conduct in the discharge and execution of official duties
pursuant to Republic Act No. 6713:
1. Commitment to public interest. – SSS officials and employees shall always

uphold the public interest over and above personal interest. All SSS resources and powers
of their respective offices must be employed and used efficiently, effectively, honestly and
economically, particularly to avoid wastage in public funds and revenues;
2. Professionalism – SSS officials and employees shall perform and discharge their
duties with the highest degree of excellence, professionalism, intelligence and skill. They
shall enter public service with utmost devotion and dedication to duty. They shall endeavor
to discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage;
3. Justness and sincerity - SSS officials and employees shall remain true to the
people at all times. They must act with justness and sincerity and shall not discriminate
against anyone, especially the poor and the underprivileged. They shall at all times respect
the rights of others, and shall refrain from doing act contrary to law, good morals, good
customs, public policy, public order, public safety and public interest. They shall not
dispense or extend undue favors on accounts of their office to their relatives whether by
consanguinity or affinity except with respect to appointments of such relatives to positions
considered strictly confidential or as members of their personal staff whose terms are
coterminous with theirs;
4. Political neutrality – SSS officials and employees shall provide service to everyone
without unfair discrimination and regardless of party affiliation or preference;
5. Responsiveness to the public – SSS officials and employees shall extend prompt,
courteous, and adequate service to the public. Unless otherwise provided by law or when
required by the public interest, SSS officials and employees shall provide information of
their policies and procedures in clear and understandable language, ensure openness of
information, public consultations and hearings whenever appropriate, encourage suggestions,
simplify and systematize policy, rules and procedures and avoid red tape;
6. Nationalism and patriotism – SSS officials and employees shall at all times be
loyal to the Republic and to the Filipino people, promote the use of locally produced
goods, resources and technology, and encourage the veneration of national heroes,
preservation of national and cultural heritage and appreciation and pride of country and
people. They shall endeavor to maintain and defend Philippine sovereignty against foreign
intrusion;
7. Commitment to democracy – SSS officials and employees shall commit themselves

to the democratic way of life and values, maintain the principle of public accountability, and
manifest by deeds the supremacy of civilian authority over the military. They shall at all
times uphold the Constitution and put loyalty to country above loyalty to persons or party;
and
8. Simple living – SSS officials and employees shall lead modest lives appropriate to
their positions and income. They shall not indulge in extravagant or ostentatious display of
wealth in any form.
Section 8. Prohibited Acts and Transactions. In addition to acts and omissions of

public officials and employees prescribed in the 1987 Constitution, Republic Act No. 6713,
Republic Act No. 3019, SSS Manual on Personnel Policies, Rules and Regulations and
other existing laws, rules and regulations, the following are considered prohibited acts and
transactions of any SSS officials and employees:
A. Confidentiality
(i) Using or divulging confidential or classified information officially known to

him by reason of his office and not made available to the public, either to further
his private interests, or give undue advantage to anyone; or to prejudice the
public interest;
(ii) Disclosing confidential information given by parties, counsel, witness, or

any other person during investigation in a pending administrative case except
when expressly authorized by the disciplinary authority;
(iii) Disclosing confidential information obtained from Social Security Commission

meetings, Executive Management Committee meetings, other committee
meetings and other meetings of similar nature;
The foregoing shall not apply when disclosure is;
1) Compelled under pain of penalty provided under a valid statute;

2) Compelled under contempt of court through disobedience of a valid court order;
3) Made only to persons duly authorized to receive the same.
B. Conflict of Interest
(i) Having any financial or material interest, directly or indirectly, in any transaction
requiring the approval of his office;
(ii) Engaging in the private practice of his profession unless authorized by the
1987 Constitution or law and that such practice will not conflict or tend to
conflict with his official functions and provided further that there is prior written
approval from the Office of the President and CEO.
With respect to the members of the Social Security Commission and their
coterminous staff, authority shall be granted by the Chairman;
(iii) As a member of the SSS, borrowing therefrom without the written approval
of the Human Resource Administration Department. Provided, the employee-
member shall settle all short-term loans with the SSS prior to separation from
service in compliance with the amortization schedule as required by the rules.
Provided further, all short-term loans shall become due and demandable upon
separation from service.
C. Good Conduct and Discipline
(i) Using the assets and resources of the SSS, including funds, properties,
goods, services, postal mail and official time for personal purposes;
(ii) Falsifying, concealing, tampering, destroying or making unauthorized

alteration or disposal of any SSS or SSC official records;
(iii) Engaging in a fight with co-workers or members whether physical or verbal

within SSS premises or immediate vicinity hereof;
(iv) Discriminating against SSS members, employers, SSS officials or

employees by word or conduct, bias or prejudice based on race, religion,
national or ethnic origin, gender, belief or political affiliation, sexual orientation,
age, marital status, color and mental or physical disability;
(v) Owning, reproducing, distributing, sharing or passing on defamatory or

scurrilous letters, articles or any other similar materials relating to SSS or its
officials and employees;
(vi) Committing acts of disrespect or discourtesy as defined under Civil Service

rules and regulations against SSS officials, employees and members;
(vii) Coercing an SSS official or employee to facilitate his pending personal or

immediate family’s transaction with SSS ahead of the other transactions earlier
received;
(viii) Using official position to secure unwarranted benefits, privileges or

advantages for himself or for others;
(ix) Rumor mongering which tends to destroy the reputation of any SSS official
or employee or cause chaos or confusion in the workplace resulting to lost
man-hours and/or reduced productivity;
(x) Making unnecessary noise such as but not limited to high volume music,
boisterous laughter, blabbering, ranting or shouting which tends to disrupt the
peace and tranquility in the office or disturb a co-worker thus affecting his
productivity;
(xi) Engaging in conduct incompatible with faithful discharge of his official

duties; and
(xii) Violating Reasonable Office Rules and Regulations, SSS Circulars, Office
Orders, Guidelines, Policies and Procedures.
Section 9. Disciplinary Action and Penalties. Violations of the provisions of this

Code shall be a ground for disciplinary action under existing Civil Service Rules and
Regulations and may be meted with the appropriate penalty if found guilty, without prejudice
to the filing of appropriate criminal or civil action, if warranted.
Section 10. Procedural Rules. The disposition of cases under this Code shall be
governed by existing Civil Service Rules and Regulations on Procedures.
Section 11. Amendments. The Social Security Commission may amend or modify
this Code as may be necessary.
Section 12. Separability Clause. If any provision of this Code or the application of
such provision to any person or circumstances is declared invalid, the remainder of the
Code or the application of such provision to other persons or circumstances shall not be
affected by such declaration.
Section 13. Effectivity. This Code shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general circulation
and upon filing with the University of the Philippines Law Center three (3) certified copies
thereof.
SUGAR REGULATORY ADMINISTRATION

Sugar Order No. 2, S. of 2008-2009
Filling Up the U.S. Quota for Quota Year 2008-2009 and

Verification and Shipment Schedules
WHEREAS, the United States of America has allocated for the Philippines an initial
quota of 142,160 Metric Tons Raw Value (MTRV) or 137,353 Metric Tons Commercial
Weight (MTCW) for Quota Year 2008-2009;
WHEREAS, under the Tariff Rate Quota (TRQ) country allocations for raw sugar for
the said Quota Year, the United States Trade Representative (USTR) has waived the quarterly
shipment requirement (shipping pattern restrictions) of our regular allocation of 137,353
MTCW;
WHEREAS, Certificate for Quota Eligibility (CQE) will be issued to the Philippines to
ship any volume of raw sugar at any given time/period as part of our regular allocation of
137,353 MTCW within the Quota Year 2008-2009;
WHEREAS, it is in the national interest that the “First Come-First Served” policy of
allocating the U.S. Quota among sugar traders/exporters shall apply;
WHEREAS, Sugar Order No. 12, Series of 2007-2008 dated 14 July 2008 stated that
shut-out and/or homeless “A” quedans of Crop Year of 2007-2008 shall be reinstated and
verified as eligible for export to the United States for U.S. Quota Year 2008-2009.
WHEREAS, there is a need to ensure that the full quota is actually shipped to the
United States after the verification of “A” quedans has been accomplished;
WHEREAS, records show that the requirement of the Undertaking to Ship Out in the
preceding crop year contributed to the complete filling up of the U.S. Quota for 2007-2008;
NOW, THEREFORE, under and by virtue of the authority vested in the Sugar
Regulatory Administration (SRA), it is hereby ordered that:
SECTION 1. Sugar exporters with “A” or U.S. Quota sugar quedan-permits issued
during the current Crop Year 2008-2009 (regular swapped and advanced swapped) and the
previous Crop Year/s, (unshipped, verified and reinstated “A” sugar), are hereby advised to
apply with the SRA for export allocations attached thereto the aforesaid quedan-permits
for verification/processing in order to fill up the allocations of the U.S. Sugar Quota for
Quota Year 2008-2009.
1.1 The U.S. Quota Allocation for Quota Year 2008-2009 shall be allocated among
the sugar exporters on a “First Come-First-Served” basis. Likewise, all sugar shipments to
the U.S. shall be made on a “First-In, First-Out” basis.
1.2 In the event the exporter shall have sold his verified “A” quedan-permits to another
party, the allocation of the said exporter is deemed cancelled in which case, the said “A”
quedan-permits shall be again subject to verification by the SRA for allocation on a “First
Come-First Served” basis.
1.3 All fees and charges due the SRA for the processing of documents relative to the
filling up of the 2008-2009 U.S. Quota Allocation shall be subject to SRA General
Administrative Order No. 1, Series of 2002-2003 dated 20 February 2003.
1.4 All forms and/or documents relevant to export of sugar to the U.S. market as
prescribed in Circular Letter No. 44, Series of 1995-1996, shall remain in force.
1.5 An Undertaking to Ship “A” Sugar to the United States shall be signed by the
trader/exporter indicating his commitment to ship the “A” sugar on or before the schedule
as agreed upon by the SRA and to comply with all the terms and conditions therein set
forth, shall be a part of the verification requirements.
SECTION 2. Effectivity. This Sugar Order shall take effect immediately.
SECTION 3. Consistency. Provisions of Sugar Orders, Circular Letters, and/or other

rules and regulations, contrary to or inconsistent with this Sugar Order, are hereby amended,
modified or revoked accordingly.
BY AUTHORITY OF THE SUGAR BOARD
(SGD.) RAFAEL L. COSCOLLUELA

Administrator
--o0o--
Sugar Order No. 3, s. of 2008-2009
Guidelines for the Disposition of “D” World Market Sugar for Export or for
Consumption of Sugar-Based Food Exporters
WHEREAS, Section 2 (C) of Executive Order (EO) No. 18, Series of 1986, states
that the Sugar Regulatory Administration (SRA) is created to promote the effective
merchandising of sugar and its by-products in the domestic and foreign markets so that
those engaged in the sugar industry will be placed on a basis of economic viability;
WHEREAS, pursuant to Section 3 of Sugar Order No. 1, Series of 2008-2009 dated

September 4, 2008, and in cognizance of the need for timely disposition of “D” (World
Market) sugar to the world market or consumption of the SRA-accredited sugar-based
food exporters, there is a need to establish guidelines for the disposition (maturity date,
conversion, sale, verification and shipment deadlines) of “D” or World Market sugar;
NOW, THEREFORE, under and by virtue of the authority vested in the Sugar
Regulatory Administration (SRA), it is hereby ordered that:
SECTION 1. Schedule of Maturity, Verification, Conversion, Commitment for Sale

and Shipping Deadlines. All “D” sugar produced in Crop Year 2008-2009 shall have maturity/
verification/shipping deadlines according to the following schedule to wit:
____________________________________________________________________________________________________
Weekending W/E Batch W/E Batch “D” to “E”
(W/E) Date Maturity Deadlines Verification (for export) Commitment
or “D” to “E” Conversion for Sale
Deadlines or Shipping
(for export)
Deadlines
_____________________________________________________________________________________________
9/7/2008
9/14/2008
9/21/2008
9/28/2008
10/5/2008
10/12/2008
10/19/2008
10/26/2008
11/2/2008
11/9/2008
11/16/2008 12/5/2008 12/12/2008 1/9/2009
_____________________________________________________________________________________________
11/23/2008
11/30/2008
12/7/08
12/14/08
12/21/2008 1/9/2009 1/16/2009 2/13/2009
_______________________________________________________________________________________________________
12/28/2008
1/4/2009
1/11/2009
1/18/2009 2/6/2009 2/13/2009 3/13/2009
______________________________________________________________________________________________________
1/25/2009
2/1/2009
2/8/2009
2/15/2009 3/6/2009 3/13/2009 4/10/2009
________________________________________________________________________________________________
2/22/2009
3/1/2009
3/8/2009
3/15/2009 4/3/2009 4/10/2009 5/8/2009
_______________________________________________________________________________________________
3/22/2009
3/29/2009
4/5/2009
4/12/2009 5/1/2009 5/8/2009 6/5/2009
_____________________________________________________________________________________________________________
4/19/2009
4/26/2009
5/3/2009
5/10/2009
5/17/2009
5/24/2009
5/31/2009 6/19/2009 6/26/2009 7/24/2009
_________________________________________________________________________________________________________
6/7/2009
6/14/2009
6/21/2009
6/28/2009
7/5/2009
7/12/2009
7/19/2009
7/26/2009
8/2/2009
8/9/2009
8/16/2009
8/23/2009
8/30/2009 9/18/2009 9/25/2009 10/23/2009
___________________________________________________________________________________________________________
SECTION 2. Bidding of “D” Sugar. Sugar producers and millers may conduct their
respective bidding for the sale of their “D”sugar within the deadline dates set for each batch
of quedans. However, if requested or when necessary to fill volume requirements for particular
target shipment dates, the SRA may facilitate a joint auction for the sale of the subject
sugar on dates and in venues agreed upon by holders of the quedans.
SECTION 3. Deadline for Verification/Conversion of “D” Sugar. “D” sugar quedans

intended for export to the world market must be verified (or otherwise converted to “E” for
sale to sugar-based food exporters) according to the above-listed schedule. “D” sugar
quedans which do not meet the verification or conversion deadline as provided for shall
become homeless, non-negotiable and cannot be withdrawn from the mill unless and until
reinstated, subject to compliance with provision no. 7 of this Sugar Order.
SECTION 4. Deadline for Shipment or Commitment for Sale. Exporters of the “D”
sugar to the world market shall ship the “D” sugar to the world market within the shipping
deadline provided herein. Likewise, “D” to “E” quedans must be committed for sale to a
sugar-based food exporter within the deadline provided herein. Failure to ship (for “D” export
sugar) or submit proof of commitment of sale (for “D” to “E” sugar) as stated in Section 5
hereof shall render the quedans homeless and non-marketable unless and until reinstated
and verified as provided for in provision no. 7 of this Sugar Order.
SECTION 5. Qualified sugar-based food exporters and commitment of sale. “D”

sugar may only be converted to “E” if the same is for the account of an accredited sugar-
based food exporter, which volume shall be automatically deducted from the food exporter’s
approved “D” sugar allocation. After conversion, documentary proof (such as purchase
order, deed contract of sale and the like) that the “D” to “E” sugar has been committed for
sale to qualified sugar-based food exporters shall be presented to the Sugar Transaction
Division of SRA Quezon City within the deadline set in Section 1 of this Sugar Order.
SECTION 6. Reporting Requirements. To facilitate monitoring of the “D” quedans,

sugar mills, federations, associations and cooperatives shall submit to SRA Sugar
Transaction Division, Q.C, within three (3) working days after the bidding of their “D” quedans,
the volume of “D” sugar sold, the mill, the winning bidder and the price per 50-kilo bag of
the D quedans sold.
SECTION 7. Penalty Clause (Reinstatement Fee). Homeless “D” quedans shall not
be negotiable unless reinstated and upon payment of a reinstatement fee of P10 per Lkg-
bag per day. “D” quedans subject of reinstatement shall be brought to the Sugar Transaction
Division, Regulation Department Office at the SRA Quezon City which quedans shall be
stamped “Reinstated “D” homeless sugar into “D” (world market sugar) per Sugar
Order No. 3, Series of 2008-2009.
BY THE AUTHORITY OF THE SUGAR BOARD

Administrator
--o0o--
Circular Letter No. 5, S. of 2008-2009
Compulsory Disposition of the Raw Sugar Covered by

Outstanding Quedans of Previous Crop Years
The Sugar Regulatory Administration (SRA), in the exercise of its regulatory functions
is reviewing its policies concerning outstanding quedan-permits issued during the previous
crop years.
It has been observed that following SRA’s physical and quedan inventory operations,
particularly immediately after the end of each Crop Year (CY), the majority of mills still
have in their books an inventory of outstanding raw quedans of previous crop years. The
said inventory, indicating the total stock balances of the mills, may not be reflective of the
true carry-over stock for the new crop year that is of good quality and available to the
market/s because of the deterioration of the raw sugar covered by the said quedans. It is
also possible that quedans might have been lost/misplaced/forgotten by the holder/s.
In view of the above situation, the SRA is considering a policy that will require raw
sugar covered by outstanding quedans issued during the previous crop years to be disposed
of by the mills through public auction/bidding. Not included is the immediate CY prior to
the current crop year (e.g. 2007-2008). The proceeds of the auction/bidding, less the
applicable storage fee/penalty, shall be held in escrow by the mills and paid to holders who
will surrender the subject quedans to the mills for withdrawal of the corresponding volume
of raw sugar therefrom.
In anticipation of this order, all holders of outstanding quedans for CY 2006-2007 and
earlier are hereby advised to already dispose the raw sugar covered by the said quedans
before the compulsory disposition order is made.
In the event that the SRA decides to implement the said policy, the Implementing
Rules and Regulations (IRR) shall be issued accordingly.

Administrator
--o0o--
Suspension of Verification of “A” and Advance Swapping of “B” to “A”;

Allowing Advance Swapping of New “B” (CY 2008-2009) to “D”
WHEREAS, Section 2 (C) of Executive Order (EO) No. 18 Series of 1986, states
that the Sugar Regulatory Administration (SRA) is created to promote the effective
merchandising of sugar and its by-products in the domestic and foreign markets so that
those engaged in the sugar industry will be placed on a basis of economic viability;
WHEREAS, Sugar Order No. 15, Series of 2007-2008 dated 31 July 2008 has
authorized the advance swapping of “B” to “A” sugar quedans to facilitate the early filling up
of our U.S. quota;
WHEREAS, as of 23 September 2008, out of 137,353 MT of U.S. Quota for Quota

Year 2008-2009, 137,353 MT has already been verified.
NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory
Administration (SRA), it is hereby ordered that:
SECTION 1. The verification and advance swapping of “B” to “A” is declared suspended.
SECTION 2. Advance swapping of “B” to “D” still in effect. Provisions in Sugar Order
No. 15, Series of 2007-2008 regarding the advance swapping of “B” to “D” shall remain in
effect. In addition, advance swapping of new “B” (CY 2008-2009) to “D” shall also be allowed.
SECTION 3. Effectivity. This Order shall take effect immediately.
SECTION 4. Consistency. Provisions of Sugar Order, Circular Letter, and/or other

rules and regulations contrary to or inconsistent with this Sugar Order, are hereby amended,
BY AUTHORITY OF THE SUGAR BOARD


Administrator
--o0o--
Sugar Order No. 1-B, S. of 2008-2009
Amendment to Sugar Order No. 1 Series of 2008-2009,

Splitting the “D” Sugar Percentage into World Market Sugar and
for Sugar-Based Food Exporters
WHEREAS, Sugar Order No. 1, Series of 2008-2009 allocated seven percent (7%)
for “D” or World Market sugar without distinction as to whether it will be used for world
export or for the sugar-based food exporters;
WHEREAS, to facilitate the export of “D” sugar there is a need to provide a distinction
in the allocation, segregating the percentage for the world export from the sugar-based
food exporters;
SECTION 1. The sugar allocation in Section 1 of Sugar Order No. 1, Series of 2008-
2009 is amended as follows:
“A” or U.S. Quota Sugar - 10.0%

“B” or Domestic Sugar - 68.0%
“C” or Reserve Sugar - 15.0%
“Dx” or World Export Sugar - 4.5%
“De” or Sugar-based Food Exporters - 2.5%
---------
100%
=====
SECTION 2. Block Quedanning of “D” sugar and monthly maturity still in effect.
Provisions of Section 3 of Sugar Order No. 1 Series of 2008-2009 regarding block quedanning
of “D” sugar and monthly maturity is still in effect except that it shall be separate block
quedanning for “Dx” or World Market sugar and another for “De” or Sugar-Based Food
Exporter.
Provisions of Sugar Order No. 1 and 1-A not contrary to or inconsistent with this
Sugar Order shall remain in effect.
SECTION 3. Effectivity. This Order shall take effect for production week-ending
December 7, 2008.


Administrator
--o0o--
Allowing the Classification/Conversion of “D” (World Market) Quedans

to “F” (Fermentable) Quedans for the Production of Ethanol
WHEREAS, SRA has received inquiries on the possible use of “D” sugar for the
production of ethanol;
WHEREAS, allowing the use of “D” sugar for ethanol will open an alternative market
for excess sugar production;
WHEREAS, while the said requests are currently acceptable considering the
oversupply of sugar, SRA should still install regulatory measures to ensure that there will
be enough safeguards to prevent abuse or inappropriate diversion of local sugar;
SECTION 1. The “D” (World Market) sugar may be made available to SRA accredited
ethanol producers for their ethanol production provided the “D” sugar when availed of by the
ethanol producers, shall first be classified/converted to “F” (Fermentable) sugar which
sugar shall be used for the production of ethanol;
SECTION 2. Requirements for reclassification to “F” sugar. The following shall be

the requirements for reclassification of “D” sugar to “F” sugar:
2.1 A letter-request by an SRA registered sugar trader or ethanol producer for

SRA to reclassify “D” to “F” sugar stating therein:
2.1.A. The name of the ethanol producer who is the recipient of the “F”
sugar;
2.1.B. The list of mills and the corresponding volume of the “D” sugar applied
for reclassification;
2.2 Attachment of the quedans submitted for reclassification.
2.3 Payment of Reclassification Fee of P1.00/LKg-bag.
2.4 A bond to ensure that the “F” sugar is used solely for ethanol production.
The amount shall be the difference between the prevailing millgate price of the
“B” sugar and “D” sugar, or as may be determined and/or established by the
Sugar Board from time to time;
A Letter-Authority for the Reclassification of the “D” or World Market Sugar into “F” or
Fermentable Sugar shall be issued by the SRA to the concerned trader for the account of
(FAO) the ethanol producer with the quedan-permits properly surcharged and with notation
“Reclassified as “F” or Fermentable Sugar”.
Furthermore, a Letter Addressed to the concerned mills allowing/authorizing the
withdrawal of the “D” sugar as “F” shall be issued by the SRA.
SECTION 3. The application for reclassification of “D” or World Market sugar to “F” or
Fermentable sugar shall be filed in any of the following SRA Offices:
a. Regulation Department, SRA Quezon City

b. Regulation Department, SRA Bacolod City
SECTION 4. Obligations of the trader/ethanol producer relative to the withdrawal of

“F” sugar. The trader or ethanol producer shall comply with the following as part of the
undertaking of their bond:
4.1 Furnish SRA a notice of withdrawal at least 2 working days prior to the
day of withdrawal;
4.2 The “F” sugar shall be directly delivered to the warehouse of the ethanol
producer;
4.3 The ethanol producer shall provide SRA with documentary proofs of the
usage of said sugar, such as but not limited to their production reports, factory
statements and the like.
SECTION 5. Cancellation of Bond. Upon SRA’s receipt of a formal letter from the
concerned ethanol producer and acceptance of sufficient proof that the ethanol producer
has used (liquidated) its “F” sugar solely and completely for ethanol production, the SRA
shall cancel/return the bond issued by the ethanol producer or trader.


Administrator
--o0o--
Exempting “A” (U.S. Quota) and “D” (World Market) Sugar

Intended for Export from the Provisions of Sugar Order No. 5,

Series of 2006-2007 Re: Providing for Amendment of the
Certificate of Exchange Authority (CEA) due to Change of Ownership
WHEREAS, Sugar Order No. 5, Series of 2006-2007 provided for amendment of the
Certificate of Exchange Authority (CEA) due to change of ownership;
WHEREAS, the said sugar order is to facilitate monitoring of the quedans that have
been swapped with respect to their true holders and does not cover “A” (U.S. Quota) and
“D” (World Market) sugar which are intended for export, since clearance is required before
actual exportation;
WHEREAS, to clarify the exemption of “A” (U.S. Quota) and “D” (World Market)
sugar which are intended for export from amendment of the CEA, there is a need to amend
certain provisions in Sugar Order No. 5, Series of 2006-2007 in order to facilitate the timely
shipment for export;
Administration, it is hereby ordered that:
SECTION 1. “A” (U.S. Quota) and “D” (World Market) sugar which are intended for
export shall not be covered by Sugar Order No. 5, Series of 2006-2007;
SECTION 2. This Sugar Order shall take effect immediately.
SECTION 3. Provisions of Sugar Orders, Circular Letters, rules and regulations

inconsistent with or contrary to this Sugar Order are hereby revoked, amended or modified
accordingly.

Administrator
--o0o--
Guidelines for the Replenishment of “B” Sugar

Advance-Swapped to “A” or “D”
WHEREAS, because of the large beginning inventory for crop year 2008-2009, the
Sugar Regulatory Administration (SRA), through the Sugar Board has issued Sugar Order
No. 15, Series of 2007-2008 and Sugar Order No. 4, Series of 2008-2009 allowing the
advance swapping of “B” quedans to “A” or “D” quedans to encourage and facilitate the
early export of “A” and “D” sugar to their respective intended markets;
WHEREAS, the main purpose of the advance swapping program is to reduce the
volume of domestic sugar surplus in the market;
WHEREAS, in advance swapping, the sugar exporters need to purchase “B”

(Domestic) sugar and export it as “A” (U.S. Quota) sugar or “D” (World Market) sugar;
WHEREAS, traders/exporters who engage in the program will incur initial trading
losses since “B” (Domestic) sugar is priced higher than the “A” (U.S. Quota) and “D”
sugar; hence, this program is workable only if an additional percentage for replenishment
is allowed for the exporters to recover the loss incurred as a result of the advance swapping;
SECTION 1. The “A” and “D” quedan permits issued starting the current crop year
(2008-2009) shall be allowed (eligible) to replenish the “B” quedans advance-swapped to
“A” or “D” quedans (as authorized by Sugar Order No. 15, Series of 2007-2008 and Sugar
Order No. 4, Series of 2008-2009) provided that the sugar representing the “B” sugar
quedans advance-swapped to “A” or “D” had been actually exported.
The “B” quedans advance-swapped to “A quedans shall be replenished by “A” quedans

at a ratio of 1.12 Lkg bags “A” for every 1.0 Lkg bag “B”; in the same manner that “B”
quedans advance swapped to “D” quedans shall only be replenished by “D” quedans at a
ratio of 1.12 Lkg-bags “D” for every 1.0 Lkg bag “B”;
SECTION 2. The replenishment of the advance-swapped “B” quedans with the “A”/
”D” sugar of CY 2008-2009 shall be allowed to commence on April 1, 2009.
SECTION 3. Applications for replenishment of advance-swapped “B” to “A”/”D” shall

be filed in any of the following SRA Offices:
a. Regulation Department, SRA Quezon City

b. Regulation Department, SRA Bacolod City
SECTION 4. The deadline for the filing of applications for replenishment of advance-
swapped “B” quedans under this Sugar Order shall be not later than December 31, 2009.
Applications for replenishment of advance-swapped “B” quedan permits shall not be accepted
thereafter.
SECTION 5. The requirements of regular swapping application per Circular Letter

No. 31, Series of 1997-1998 shall apply to herein replenishment program.
SECTION 6. The “A” or “D” quedans subject of replenishment shall be stamped as

follows:
“SURCHARGED FOR WITHDRAWAL AS “B” OR DOMESTIC SUGAR PER

SUGAR ORDER NO. 7, SERIES OF 2008-2009, DATED NOVEMBER 24,
2008”.
SECTION 7. A Letter Addressed to the concerned mills allowing/authorizing the

withdrawal of the “A”/”D” sugar as “B” shall be issued by the SRA.


Administrator
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT

AUTHORITY
Approving and Promulgating the Training Regulations for Diesel

Power Plant Operation and Maintenance NCII, Diesel Power
Plant Operation and Maintenance NCIII, Diesel Power Plant
Maintenance NCIII


--o0o--
Approving and Promulgating the Training Regulation for

Broadband Installation (Fixed Wireless System) NCII

--o0o--
Approving and Promulgating the Training Regulations for

Electrical Installation and Maintenance NC II, Electrical
Installation and Maintenance NC III and Electrical Installation
And Maintenance NCIV

--o0o--
Approving and Promulgating the Training Regulation for

Marine Electricity NC II

--o0o--
Approving and Promulgating the Training Regulation

For Illustration NCII


--o0o--
Approving the Amendments on the Training Regulations for

Automotive Servicing NC III to Include LPG Engine Retrofitting
And Repowering

--o0o--
Training Regulations
(1)Pharmacy Services NC II
(2)Hilot (Wellness Massage) NC II


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OCTOBER - DECEMBER 2008 NATIONAL ADMINISTRATIVE REGISTER 1905

BANGKO SENTRAL NG PILIPINAS

Date Filed: 10 October 2008

Circular No. 618, s. of 2008

Basic Standards in the Administration of Trust, Other Fiduciary

Date Filed: 10 October 2008

Circular No. 619, s. 2008

20% Final Withholding Tax on Overnight RRP Transactions with BSP

This Circular shall take effect immediately. It shall be published in a newspaper of

Adopted: 22 Aug. 2008

(SGD.) AMANDO M. TETANGCO, JR.

Circular No. 620, s. 2008

Revised Rules and Regulations On Bank Protection

“Subsec. X171.1 Objectives. These regulations are designed to:

b. Prevent and discourage perpetration of crimes against banks; and

c. Assist law enforcement agencies in the identification, apprehension and

“Subsec. X171.2 Designation of Security Officer. The board of directors of

The security officer shall be responsible for:

a. The development and administration of a security program acceptable to BSP;

c. Investigation of bank robberies/hold-ups, recommending the filing of appropriate charges

a. Installation of the prescribed minimum security devices;

f. Contingency measures for security and rescue operations in emergency situations;

1. A time delay device in the cash vault/safe;

Safes should be sufficiently heavy or be securely anchored to the premises where

“Subsec. X171.5 Reports. Banks shall conduct a review and self-assessment

“Subsec. X171.6 Bangko Sentral ng Pilipinas Inspection. During regular

“Subsec. X171.8 Sanctions. Any violation of the provisions of this Section, as

Adopted: 3 Sept. 2008

(SGD.) AMANDO M. TETANGCO, JR.

Date Filed: 10 October 2008

Circular No. 621, s. 2008

Amendment of Subsection X169.3 of the Manual of Regulations

Subsection X169.3 Outsourcing of other banking functions of the MORB is

18. Automated Teller Machine (ATM) Card Plastics Embossing Service,

b. Account/transaction validation is done at the Host level, i.e., the bank’s

19. such other activities as maybe determined by the Monetary Board.”

Adopted: 16 Sept. 2008

FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.

Date Filed: 10 October 2008

Circular No. 622, s. 2008

Amendment to the Manual of Regulations for Banks (MORB)

“§ X304.1/4312Q.1/4312N.1 General Guidelines. Consistent with safe and

“Before granting loans or other credit accommodations, a bank/QB/NBFI must

3. A waiver of confidentiality of client information and/or an authority of the bank/QB/NBFI

“Should the document(s) submitted prove to be spurious or incorrect in any

workers, indigenous peoples and cultural communities, women, differently-abled persons,

2. Loans to registered Barangay Micro Business Enterprises (BMBEs);

4. Loans secured by hold-outs on or assignment of deposits or other assets considered

“For purposes of this Section, the FOLLOWING DEFINITIONS SHALL APPLY:

“§ X304.4/4312Q.4/4312N.4 Signatories. Banks/QBs/NBFIs shall require that

“Sec. X319/4336Q/4314N Loans Against Personal Security. THE GRANT,

2. X319.2 (Proof of financial capacity)

4. 4336Q.1 (General guidelines)

5. 4336Q.2 (Proof of financial capacity)

d. Loans NOT SUPPORTED BY THE DOCUMENTS REQUIRED UNDER

Memorandum No. M-2008-030

Accreditation Process of ATM Consortium as Compliance

This Memorandum amends Memorandum Nos. M-2007-010 and M-2007-033 dated

Date Filed: 10 November 2008

Memorandum No. M-2008-031

Guidelines on the Availment of US Dollar Denominated

- Compliance with FCDU/EFCDU cover requirements;