TALKING POINTS

GENERAL TOPIC

Program : Sentro Serbisyo (iFM Cauayan City)

Date : January 13, 2022
Proposed Topic : Service and Repair Enterprises
Time : 11:00 am – 12:00nn

Guest : Elmer A. Agorto

Chief Trade and Industry Development Specialist
DTI, Isabela – Consumer Protection Division

Key Topics / Guide

Details
Questions
Why does the DTI There is a two-fold purpose for the accreditation of SREs:
conduct accreditation of (may dalawang layunin ang accreditation of service and
SREs? repair enterprises)

1. Pangalagaan ang interes ng publiko laban sa hindi

etikal, hindi patas at walang kakayahan na
magsagawa ng wastong serbisyo at pagkukumpuni

safeguard the interest of the public against

unethical, unfair and incompetent practice of
service and repair enterprises;

2. Protektahan ang mga shops na maaasahan at may

kakayahan na magbigay ng serbisyo at
pagkukumpuni, laban sa mga maling gawain na
sumisira sa kanilang mabuting pangalan at itinatag
na reputasyon;

protecting reliable and competent service and

repair enterprises against such malpractices which
undermine their good name and established
reputation;

Basis of SRE 1. Presidential Decree No. 1572 (aka Accreditation Law)

Accreditation which was signed into law on June 11, 1978

2. Republic Act No. 7394 (Consumer Act of the

Philippines) Chapter VII (Articles 125-Article 130.)

Section 1 of PD 1572 provides:

 Sec. 1. Accreditation. All enterprises and technical
personnel employed therein engaged in the service and
repair of motor vehicles, heavy equipment, engines and
engineering works; electronics, electrical, air-conditioning
and refrigeration; office equipment; medical and dental
equipment; and other consumer industrial electro-
mechanical, chemical and gaseous equipment, machinery
appliances or devices, shall apply for accreditation with
the Department of Trade within ninety (90) days from the
promulgation of this Decree and shall apply for renewal
on or before the 31st day of January of every year
thereafter.

No such service or repair enterprises and technical

personnel shall be licensed or permitted to operate in the
Philippines for the first time without first being accredited
by the Department of Trade.

Article 128 of RA 7394 provides:

Article 128. Accreditation of Repair and Service Firm. –
No person shall operate a repair and service firm or act
as technical personnel therein without first being
accredited by the Department.

Who are required to be 1. Service &Repair Enterprises/Firms

accredited? 2. Technical Personnel Employed therein

Both the enterprise and their technical personnel needs to

be accredited. (Section 1, PD 1572 and Article 128 of RA
7394).

What are the specific All SREs engaged in the service and repair of:
SREs that needs to • Automotive and Heavy Equipment
comply with this statutory • Engine and Engineering Works and Machine Shops
requirement? • Electronics, Electrical, Air-conditioning, and
Refrigeration Service and Repairs
• Office and Data Processing Equipment
 Medical and Dental Equipment

Where to file? At DTI Provincial Offices

For Cagayan
- No. 11 Dalan na Pappabalo, Regional Government
Center, Carig Sur, Tuguegarao City, Cagayan

For Isabela
- Jeremy Building, Alibagu, City of Ilagan, Isabela
 For Quirino
- Cayetano Arellano Street, Purok 1, Andres Bonifacio,
Diffun, Quirino

For Nueva Vizcaya

- National Highway, Bayombong, Nueva Vizcaya

For Batanes
- National Road, Brgy. Kaychanarian, Basco, Batanes
Minimum requirements Article 127 of RA 7394 provides the minimum
for Accreditation? Requirements for Accreditation:

a) the duly registered business name, firm name or

style of the firm;

b) date of issue and effectivity of the certificate of

accreditation;

c) number and skills of technical personnel; and

d) required license for the repair or servicing of any

consumer product as required by special laws.

Lifetime of a Certificate of - January 1 to December 31

Accreditation. - If the certificate is issued on any month of a
calendar year, the same shall be valid from
issuance until December 31 of that year(Section 1,
Title XIII, IRR of PD 1572)
Accreditation Fees
Renewal
Classification Accreditation Surcharge
Filing
of SREs Fee (for applications
filed after
December 31)
1 Star 50.00 350.00 87.50
2 Star 50.00 400.00 100.00
3 Star 50.00 425.00 106.25
4 Star 50.00 450.00 112.50
5 Star 50.00 500.00 125.00
Medical/ 50.00 350.00 87.50
Dental

Other fees:
Certification/ Request for replacement of Certificate:
50.00
Document Stamp: 30.00
Other financial The SRE should have insurance coverage sufficient to
requirement cover the customer’s property/ies entrusted for repair,
service or maintenance against theft, pilferage, fire, flood
and loss.

SRE Classfication Insurance Coverage

1 Star 50,000.00
2 Star 100,000.00
3 Star 200,000.00
4 Star 500,000.00
5 Star 1,000,000.00
NOTE: For all other classification/categories, the
minimum insurance coverage should be P50,000.00.

What is all about the star For an SRE to be qualified with a higher star qualification,
classifications? the following criteria must be considered and each
criterion has a point system:
 Qualification and No. of Technicians (the more
technicians and are more competitive will garner
more points)
 Tools and Equipment (mandatory, optional)
 Warranty Duration
 Facilities and Work Area (tool and equipment
storage, work area - minimum sq.m, record
keeping system, customer reception and waiting
area)
 Years in Business

For each criterion there are maximum points to be

generated and subject for evaluation both in documents
and actual visit of the designated accreditation/inspection
officer.

When is the deadline for FOR NEW APPLICANTS:

filing of application or
renewal?
- Before they operate.
- second paragraph of Section 1: as condition
precedent for the operation of an SRE or for a
technical personnel to be licensed, the SRE and
the personnel must first be accredited by the DTI.

FOR RENEWAL OF ACCREDITATION:

- As a general rule, it must not be later than January
31 of every year.

EXPTN: in consideration of the restrictions

imposed in areas under high risk (2021)- still to be
clarified if it will be applied for 2022; as update no
 issuance yet received from Head Office

- The DTI issued Department Order No. 21-03

which grants an extension for filing their
application for renewal of accreditation until
March 31, 2021 in consideration of the
pandemic.

- This issuance covers SREs who are holders

of Certificate of Accreditation which expired
on 31 December 2020. And during the period
from January 2021 to March 31, 2021, they
will be allowed to operate under the same
terms and conditions.

Note: SREs whose certificates of

accreditation are revoked or cancelled for
other reasons besides expiration of the term
of their validity cannot operate during the
period beginning January 1-March 31, 2021.

For SREs with branches, NO. The law requires a separate certificate of
does the Certificate of accreditation for each branch.
Accreditation for the main
enterprise covers the (Article 129. Certification of Accreditation. – Upon
other branches? compliance with the requirements for accreditation, the
Department shall issue the corresponding certificate of
accreditation. A separate certificate shall be required for
each branch of an enterprise located in areas outside of
the main office.)
Is there any exception? - Repair and service centers of factory authorized
representatives of franchised dealers.

- The Certified True Copy of the certificate of

accreditation of the parent company suffices.

Basis: Article 129.

“However, with respect to repair and service centers of

factory authorized representatives of franchised dealers,
such centers may display a certified true copy of the
certificate of accreditation of the parent company.”

Condition:

Such service and repair center handles monthly

 maintenance, general cleaning and attendance to do
repair on units manufactured or components thereof
under factory warranty and is just an extension of the
parent company. (Section 1, Title VI, IRR of PD 1572).

What does the DTI do to The DTI conducts regular actual monitoring year round.
ensure compliance of
SREs? Given the schedule for filing of application for renewal
under the law which is not later than 31 January, the
monitoring and enforcement team conducts inspection
early on and we remind the SREs of the deadline and
other important information or issuances that they need to
know.

As part of our intensified endeavor to protect consumers,

we take advantage of various media in disseminating
guidelines and information such as phone calls, texts
blasts and social media posts.

Is there a means for SREs are mandated to display their certificate of accreditation
consumers to verify if a in a conspicuous place, clearly visible to consumers. (Section
Service and repair Shop is 1, Title XI , IRR of PD 1572).
accredited by the DTI?
In NCR area, consumers can check if a Service and repair
Shop is accredited by the DTI through the official website of
DTI where a list of accredited SREs.

For the Region, they are planning to adopt the consolidation

and uploading of the regionwide list in DTI Region 2
microwebsite and hopefully possible to have the list of
accredited SREs posted in the microsite

How does the DTI deal with If during the monitoring or enforcement, a SRE is found non-
non-complying SREs? compliant, it shall be issued with a Notice of Violation. He will
have the opportunity to answer/explain. If the Provincial
Director finds that there is good cause to support a
case/charge against the SRE, a formal charge will be filed
before the adjudication officer of the DTI.

This does not preclude cases initiated by consumers, in which

case the initiatory document will be a consumer complaint.

In both instances, the basic principle of due process is

observed.

What are the penalties? 1. Their certificate of accreditation may be:

- Suspended.
- Revoked.
- Cancelled.
2. Imposition of Administrative Fine
3. Corollary penalties provided in Article 164 of RA 7394.