Volume 13 Number 1 - University of the Philippines College of Law

142 

National Administrative Register Volume 13/1 

4. That the Bureau of Animal Industry and the National Meat Inspection Commission shall, 

within 30 days from the issuance of this Order, formulate the specific guidelines for the 

implementation of this Order. 

The issuance of these Certificates shall be an additional requirement governing imports 

of the above mentioned items to the Philippines. All other Administrative Orders, Memorandum 

Orders and other issuance governing imports shall remain in force. 

This Order shall be in effect fifteen days from its publication in two newspapers of 

general circulation. 

Adopted: 10 Dec. 2001 

(SGD.) LEONARDO Q. MONTEMAYOR 

Secretary 

FOOD SAFETY COMPLIANCE CERTIFICATE CHECKLIST 

(FSCCC) 

ANNEX A 

Safety of Water - Does water meet local regulatory requirements for potable water, 

and is there evidence of laboratory analysis (chemical/biological, physical) to support this 

annually? (For good manufacturing/processing purposes). 

Prevention of Cross Contamination - Is plant design, layout workflow, equipment 

and processing environment appropriate to control and prevent cross contamination? 

Hand Washing, sanitizing facilities - Are hand washing, sanitizing facilities and practices/methods 

appropriate? 

Protection from Food Adulteration - Are food processing, workflow practices, receiving, 

and handling and storage appropriate to protect against food adulteration? 

Proper Labelling and Storage - Are chemical agents and other toxic compounds 

appropriately labelled and stored and used correctly? 

Control of Employees Health Conditions and Personal Hygiene - Are practices 

appropriate and effective, i.e. hairnet, jewelry, gloves, uniforms, smoking policy, face mask, 

food and drink policy, annual staff health checked sickness policy, etc. appropriate and 

documented? 

Exclusion of Pests - Is a pest control program implemented and effective? Is there a 

chemical safety data sheet and are only registered chemicals used? 

Education and Training - Has GMP training been implemented and documented, and 

is it effective? 

Waste Disposal - Are waste disposal practices appropriate to prevent potential health 

risks and discourage breeding of pests?

January - March 2002 National Administrative Register 143 

1.1 ORGANIZATION 

Does the organization reporting structure reflect who has functional responsibility for 

food safety and quality and their interrelation? 

Is delegation of authority due to absence defined? 

1.2 TRAINING 

Has the appropriate training been provided for those personnel completing the critical 

steps? 

Have instructions setting out these critical tasks to be carried out been provided? 

Are there training records (register) describing who has been trained in the relevant 

areas? 

1.3 SUPPLIERS 

1.3.1 PURCHASING 

Does the business provide specifications for goods purchased which affect product 

safety and quality that are suitable for use? For Example; 

a. Chemical agents 

b. Packaging - is packaging material appropriate? 

c. Transport meets Cold Chain Requirements. 

d. Do the specifications provide for raw material in terms of its critical safety and quality 

parameters? 

1.3.2 RAW MATERIAL INSPECTION 

Is there documented evidence that raw materials have been inspected or originate 

from a supplier with a good supply record (e.g. signed receival documents)? 

1.3.3 HANDLING, STORAGE, PACKING AND DELIVERY 

Are the practices involved in the handling, storage, packaging and delivery been 

documented? 

Are these practices being carried out in such a way that minimizes the risk of 

damage, mix-ups or improper use? 

2.1 FOOD SAFETY 

Has the business ensured the food supplied to the customer will comply with all food 

regulatory requirements specified in the appropriate legislation or administrative rules and 

regulations, and other exercises of police power of the country in which the food is to be 

consumed?

144 


Is the food or food product, or its ingredients, derived from raw material or ingredient 

affected by infection/contamination as declared by the Organization Internationale des 

Epizooties (OIE) or other international health agencies. 

Are phytosanitary requirements specified and understood? 

Is there a list of minimum residue limits (MRLs) for pesticides, antibiotics, etc., 

relating to the product and as specified by country of destination legislation? 

Have products been tested to validate that they meet MRLs as specified by food 

regulatory requirements? 

3.1 RECORDS 

Are quality records stored to prevent damage and deterioration? 

Are the government certificates pertinent to the shipment genuine, valid, and duly 

issued? 

Are the quality records retained for a minimum of twelve months or as required by 

existing country food regulations? 

4.1 PRODUCT IDENTIFICATION AND TRACEABILITY 

Are products clearly identified? 

Is the product traceable so that product recalls can be readily facilitated if required? 

Are records of products identification and product destination being maintained? 

Were product samples taken for analysis to validate against specification? 

Does product meet product specification? 

ANNEX B 

CHAIN OF CUSTODY CHECKLIST CERTIFICATION 

(COCCC) 

Safety of Water - Does water meet local regulatory requirements for potable water, 

and is there evidence of laboratory analysis (chemical/biological, physical) to support this 

annually? (For food manufacturing/processing) 

Prevention of Cross Contamination - Is plant design, layout, workflow, equipment 

and processing environment appropriate to control and prevent cross contamination? 

Hand Washing, sanitizing facilities - Are hand washing, sanitizing facilities and practices/methods 

appropriate?


Protection from Food Adulteration - Are food processing, workflow practices, receiving, 

handling, and storage appropriate to protect against food adulteration? 

Proper Labelling and Storage - Are chemical agents and other toxic compounds 

appropriately labelled and stored and used correctly? 

Control of Employees Health Conditions and Personal Hygiene - Are practices 

appropriate and effective, i.e. hairnet, jewelry, gloves, uniforms, smoking policy, face mask, 

food and drink policy, annual staff health checked sickness policy, etc. appropriate and 

documented? 

Exclusion of Pests - Is a pest control program implemented and effective? Is there a 

chemical safety data sheet and are only registered chemicals used? 

Education and Training - Has Good Manufacturing Process (GMP) training been 

implemented and documented, and is it effective? 

Waste Disposal - Are waste disposal practices appropriate to prevent potential health 

risks and discourage breeding of pests? 

1.1 COMMITMENT 

Is the Quality Policy relevant to the business goals and customer needs? 

Is the Quality Policy understood by all members of the business? 

Has commitment been evident during all aspects of the audit? 

1.1.1 ORGANIZATION 

Does the organization reporting structure reflect who has functional responsibility 

for food safety and quality and their interrelation? 

steps? 

areas? 

Is delegation of authority due to absence defined? 

1.1.2 TRAINING 

1.2 SUPPLIERS 

Has the appropriate training been provided for those personnel completing the critical 

Have instructions setting out these critical tasks to be carried out been provided? 

Are there training records (register) describing who has been trained in the relevant 

1.2.1 PURCHASING 

Does the business provide specifications for goods purchased which affect product 

safety and quality that are suitable for use? For example:

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a. Chemical agents 

b. Seed, seedlings, root stock 

c. Packaging. Is packaging material appropriate? 

d. Transport meets Cold Chain Requirements. 

e. Do the specifications provide for raw materials in terms of its critical safety and 

quality parameters? 

1.2.2 RAW MATERIAL INSPECTION 

Is there documented evidence that raw materials have been inspected or originate 

from a supplier with a good supply record (e.g. signed receival documents)? 

1.3 CONTROL OF PRODUCTION 

1.3.1 PROCESS CONTROL 

Is there a Hazard Analysis Critical Control Point (HACCP) Plan in place (refer to the 

particular stage of the HACCP Plan for specific details) constructed in accordance with the 

12 steps of Codex? 

a. Determine Scope & Assemble the HACCP Team 

b. Describe the Product 

c. Identify intended use 

d. Construct flow diagram 

e. On site verification of flow diagram 

f. List all potential hazards 

g. Determine CCPís (Critical Control Points) 

h. Establish critical limits for each CCP. Have critical limits been validated? 

i. Establish monitoring system for each CCP 

j. Establish corrective action for deviations 

k.Establish verification procedures 

l. Establish record keeping and documentation 

Are there finished product specifications? 

Have all raw materials been considered during the Hazard analysis (e.g. Recycled 

Water)? 

1.3.2 CORRECTIVE ACTION 

Is there a procedure for identifying and documenting the cause and resolution of 

significant problems affecting food quality and safety? 

Has appropriate action been taken to reduce the likelihood of the problem 

reoccuring? 

Is there definition of authority to initiate, implement & verify corrective action? 

1.3.3 HANDLING, STORAGE, PACKING AND DELIVERY


Are the practices involved in the handling, storage, packaging and delivery been documented? 

Are there practices being carried out in such a way that minimizes the risk of damage, 

mix-ups or improper use? 

1.3.4 FOOD SAFETY 

Has the business ensured the food supplied to the customer will comply with all food 

regulatory requirements specified in the appropriate legislation of the country in which the 

food is to be consumed? 

Are sanitary and phytosanitary requirements specified and understood? 

Is the food or food product, or its ingredients, derived from raw material or 

ingredient affected by infection/contamination as declared by the Organization 

Internationale des Epizooties (OIE) or other international health agencies, or otherwise 

exposed to contamination or mingling with such substances? 

Are labelling requirements known and implemented? 

Is there a list of minimum residue limits (MRLs) for pesticides, antibiotics, etc. relating 

to product? 

Have products been tested to validate that they meet MRLs as specified by food regulatory 

requirements? 

1.4 INSPECTION AND TESTING 

1.4.1 INSPECTION, MEASURING AND TEST EQUIPMENT 

Is all Inspection, Measuring and Testing Equipment used for monitoring activities 

outlined in the HACCP Plan or to demonstrate compliance with customer requirements routinely 

calibrated to recognized standards or to an accuracy appropriate to their use? 

fied? 

Are records of calibration available? 

1.4.2 INSPECTION AND TEST STATUS 

Are products or raw materials, which do not meet specification, isolated and identi- 

Are sub-standard products or materials handled and disposed of in such a way that 

there is no risk to the integrity of acceptable products? 

1.4.3 INTERNAL AUDITS 

Are internal audits scheduled and carried out to verify that activities comply with 

documented requirements and determine the effectiveness of the quality system and the 

HACCP Plan?

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Are actions undertaken to correct any deficiencies found? 

1.5 DOCUMENT AND DATA CONTROL 

Is there a list of current documents and amendments to documents maintained to 

identify the current documents in place? 

Are HACCP Plans reviewed annually or when changes occur? 

Are these changes documented? 

Are the changes to HACCP Plan developed, validated and verified by skilled HACCP 

practitioners? 

1.5.2 QUALITY RECORDS 

Are the government certificates issued in the country of origin valid, genuine, 

and duly issued? 

Are legible quality records maintained to demonstrate that essential production processes 

and inspection identified in the HACCP Plan have been complete, i.e. recent document 

changes, internal audit reports, corrective action requests, monitoring records, testing 

and calibration, raw material inspection reports, etc. 

Are quality records stored to prevent damage and deterioration? 

Are quality records retained for a minimum of twelve months? 

1.6 PRODUCTS IDENTIFICATION AND TRACEABILITY 

Are products clearly identified? 

Is the product traceable so that product recalls can be readily facilitated if required? 

Are records of product identification and product destination being maintained? 

PRODUCT SAMPLE/ANALYSIS 

Were product samples taken for analysis to validate against specification? 

Does product meet product specification? 

a. Have minor Corrective Action Requests (CAR) from previous audit been cleared? 

b Have there been any new products, processes or HACCP Plans? 

c. Have there been any recent document changes? 

d. Have there been any recent personnel changes?


e. Have internal audits been carried out? 

f. Have Internal Audit Reports and CARs been effective? 

Glossary: 

CAR - corrective action request 

GMP - good manufacturing practices 

HACCP - hazard analysis critical control point 

CODEX - codex alimentarius 

Date Filed: 07 February 2002 

--o0o-- 

Administrative Order No. 27, s. 2001 

Revised Seed Standards for the Production of Hybrid (F1) 

Seeds and Hybrid Rice Parental Seeds (A or CMS Line) 

Pursuant to the provisions of the Implementing Rules and Regulations of R.A. 7308, 

otherwise known as the Seed Industry Development Act of 1992, Article II, Section 3C, and 

upon approval of the National Seed Industry Council the following standards and procedures 

are to be adopted to ensure the quality of hybrid (F1) and parental seeds (A or CMS line): 

1. The general requirements of seed certification applicable to all crops like hybrid rice (F1) 

and hybrid rice parental seeds (A line) as adopted by the National Seed Quality Control 

Services are basic together with the succeeding specific requirements. 

2. The production must have fertile soil adaptable for parental lines, with sufficient irrigation 

and efficient drainage system, not shaded and has no previous record of serious incidence 

of pests and diseases. 

3. The production area must undergo at least five series of inspection to be conducted by 

duly trained official seed inspectors during the seed production at the following stages: 

a. transplanting - to ensure that proper row orientation appropriate distance of 

planting and number of seedlings per hill are followed; 

b. maximum tillering, before heading to flowering and before harvest - to check 

whether off-types and other varieties are properly removed; and 

c. harvest time - to ensure that the R lines (male parent) are harvested ahead and 

taken out of the field before harvesting A line (seed parent). 

4. Must meet the following field standards: 

a. Production Area - at least five hectares of compact land;

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b. Isolation - strictly isolated to ensure generic purity of hybrid seeds and rice 

parental and avoid pollination from unwanted varieties. The following isolation 

methods shall be followed: 

i. distance isolation - an isolation of 100 m is satisfactory. Within this range, no 

other rice varieties should be grown except for the pollen parent; 

ii. time isolation - adjust planting time to separate flowering of seed parent 

from other rice cultivars within 100 m by at least 3 weeks. The heading stage of 

varieties grown within 100 m around the hybrid seed production field should be 

over 21 days earlier or later than that of the cytoplasmic male sterile (CMS) lines 

or A line; and 

iii. barrier isolation - topographic surface features or any physical obstacles, 

be natural or artificial, with height of at least 2.5 m or crop barrier having a height 

of at least 2.5 m and 3 to 4 m wide can be used as means of isolation barrier. 

c. Rouging - sources of undesirable rice plants like volunteer plants and off-types 

should be removed from A line or R line at any time of the plant stage development 

and more importantly during the maximum tillering, flowering and before harvest 

stages; and 

d. Control of weeds, diseases and insect pests - keep weeds, diseases and 

insect pests under control. 

5. Must meet the following seed standards: 

Factors F1 Seed A Line Seeds 

Pure seeds (min) 98.00% 98.00% 

Weed and other crop seed (max) 0.10% 0.10% 

Inert matter (max) 1.90% 1.90% 

Red Rice, grains/500 g (max) 2 2 

Other varieties/500 g (max) 1.00% 0.50% 

Germination (min) 85.00% 85.00% 

Moisture content (max) 14.00% 14.00% 

6. Tagging of seed stock that meet the standards of seed certification shall be officially done 

by seed inspectors with the official bright orange tags for hybrid F1 seeds and old rose tags 

for hybrid rice parental seeds (A or CMS line). 

Non-compliance with the above requirements shall be a ground for the denial of seed 

certification. 

This Order shall take effect immediately and supersedes Memorandum Circular No. 3, 

series of 2000. 

Adopted: 24 October 2001 


Secretary, Department of Agriculture and Chairman, National Seed Industry Council


Recommending Approval: 

(SGD.) BLO UMPAR ADIONG, D.B.A 

Executive Director and Vice Chairman, National Seed Industry Council 


--o0o-- 

Administrative Order No. 28 

Criteria for Accreditation of Hybrid Rice Seed Growers 


otherwise known as the Seed Industry Act of 1992 and upon approval of the National Seed 

Industry Council, the following criteria for accreditation are hereby enforced to provide and 

sustain the adequate supply of hybrid rice seeds of desired quality. 

1. The applicant must be an individual hybrid seed grower, seed grower cooperative/association 

and seed company. 

2. For individual hybrid rice seed grower, he must: 

a. be a graduate of Hybrid Rice Seed Production training course conducted by 

PhilRice, BPI, ATI, DA-RFU, and LGUs; 

b. have undertaken hybrid rice seed production for at least 2 seasons, wet and 

dry; and 

c. be willing to undergo retooling course at his expense every three years before 

renewal of accreditation. 

3. For seed growersí cooperative/association and seed company, it must: 

a. be duly registered with either the Securities and Exchange Commission or 

Cooperative Development Authority; 

b. have members who have finished the Hybrid Rice Seed Production training 

courses for both dry and wet seasons conducted by PhilRice, BPI, ATI, DAR- 

RFU, and LGUs; and 

c. require its members to undergo retooling course every three years before 

renewal of accreditation at its own expense. 

4. The production area should be fully irrigated, preferably with supplementary source of 

irrigation, good drainage system and relatively with fertile soil. 

5. The minimum effective area for hybrid rice production must be a compact area of five (5) 

hectares. However, for individual seed grower with less than 5 hectares, temporary accreditation

152 


will be issued within the period of three years. Renewal of accreditation will not be issued 

unless the minimum compact area of 5 hectares is met. 

6. The seed yield of the production area during the dry and wet seasons should be at least 

500 and 600 kg/ha, respectively. Such yield should be duly certified by the seed inspectors 

deputized by the NSQCS. 

7. Standard isolation for hybrid rice production should be strictly followed as indicated in the 

Revised Seed Standards for the Production of Hybrid Rice Seed (F1) and Hybrid Rice 

Parental Seed (A or CMS line). 

8. The applicant must be willing to have the field inspected by the authorized Seed Inspectors 

of the BPI anytime before planting throughout the growing period, harvesting, processing 

and storage of the seeds. 

9. Accreditation must be recommended by the concerned Regional Executive Director after 

the Seed Inspector has validated the requirements stated herein and concurred by the 

Chiefs, NSQCS of the respective region. 

10. The Certificate of Accreditation duly approved by the Director of the BPI shall be given to 

the applicant and copy furnished the Regional Executive Director and the Seed Quality 

Control Services. 

11. Certification of Accreditation shall be valid for a period of 3 years. The performance of 

the accredited seed growers shall be evaluated before renewal of accreditation is issued. 

Non-compliance of the above requirements shall be a ground for denial of accreditation 

or cancellation of existing certificate. 

This Order shall take effect immediately upon signing. 

Adopted: 25 Oct. 2001 


Secretary, Department of Agriculture and Chairman, National Seed Industry Council 


(SGD.) BLO UMPAR ADIONG, D.B.A. 

Executive Director and Vice Chairman, National Seed Industry Council 

Date Filed: 07 Febraury 2002 

--o0o-- 


Guidelines on Potato Seed Certification



otherwise known as the Seed Industry Development Act of 1992, Chapter III, Article II 

Section 3, and upon approval of the National Seed Industry Council, the following guidelines 

on potato seed certification are to be adopted to ensure the high quality of potato seeds. 

1. Objective - The objective of the potato seed certification is to assure that high quality 

planting materials of superior varieties, of known genetic identity and varietal purity including 

freedom from known systemic pests and diseases are produced. 

2. Eligibility for Certification - Only varieties that are duly approved and registered by the 

National Seed Industry Council (NSIC) are eligible for certification. 

3. Application for Certification - Only accredited seed potato growers are eligible to apply 

for certification. Certification forms are available at the nearest Seed Quality Control Services 

Office. 

4. Definition of Terms - 

4.1 Seed Certifying Agency - The National Seed Quality Control Services (NSQCS) under 

the Bureau of Plant Industry, Department of Agriculture is sanctioned as the Seed Certifying 

Agency in the country under R.A. 7308 known as the Seed Industry Development Act of 

1992. 

4.2 Seed - refers to the vegetatively propagated tuber used for reproduction of the potato 

rather than the true seed that is specially produced from the potato flowers. 

4.3 Field Lot - refers to a field intended for seed production, multiplication and certification. 

4.4 Seed Lot - refers to a specific quantity of potatoes harvested from a certified field lot. 

4.5 Seed Grower - an accredited seed potato producer, may be an individual, a cooperative 

or a corporation, who has satisfied all the requirements set under Administrative Order No. 

36, series of 2000. 

4.6 Seed Inspector - A qualified person authorized by the Seed Certifying Agency as being 

capable of conducting field inspection and other certification services to accredited seed 

potato grower. 

4.7 Basic Seed (G 0 ) - seed potatoes harvested from greenhouse production directly controlled 

by originating/sponsoring institution or individual. 

4.8 Foundating Seed (F1) - progeny of G 0 harvested from seed multiplication field so 

handled to maintain genetic purity and disease free plant. 

4.9 Certified Seed (C 1 ) - progeny of F 1 harvested from seed production area so handled to 

maintain genetic purity and identify and certified by NSQCS. 

4.10 C II - progeny of Certified 1 or earlier generation.

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4.11. C III - progeny of Certified II or earlier generation. 

4.12 Roguing - means the removal and destruction of all diseased or undesirable plants of 

tubers/potatoes produced thereon. 

5. Field Requirements 

5.1 The minimum area for seed production should be at least 0.5 hectare. 

5.2 Fields for seed production must be in accordance with A.O. No. 36, series of 2000. 

Section 5, which is as follows: 

The suitability of the area is determined by: 

5.2.1 The field should be free from potato cyst nematode (PCN) or root knot 

nematode (RKN) and with a maximum of 10 colony forming unit (10 cfu) per seed 

lot of bacterial wilt organism. Certificate of soil analysis for potato cyst nematode 

and bacterial wilt organism from authorized disease Indexing Laboratories should 

be attached together with the applications for accreditation. 

5.2.2 The field for seed production must have been rotated, preferably with corn 

or other cereal crops or other non-solanaceous vegetables for at least two (2) 

cropping seasons. 

5.2.3 The field should be accessible to seed storage facilities. 

5.2.4 The agro-climatic conditions for growing the crop should be appropriate 

Elevation should be at least 900 meters above sea level in Mindanao and 1800 

meters in the Cordillera Administrative Region (CAR). 

5.3 A seed grower shall plant only one potato variety for seed purposes on the same field at 

any one time. 

5.4 A seed grower shall produce certified seed potatoes only if he adopts the rules and 

regulations for seed production and the grower is a member of the Seed Potato Growerís 

Association or as an individual grower who operates in accordance with the instructions and 

under supervision of the authorized representative of Seed Certifying Agency. 

5.5 Should a part of a field does not meet the standards for field inspection, the other parts of 

the field may be considered for certification provided that such part conforms with the 

prescribed requirements. 

6. Seed Potato Requirements 

6.1 Seed potatoes of the same variety and class for multiplication should be planted in the 

same field. 

6.2 Seed potato classes and quality standards are based on the results of field inspections 

and laboratory analysis.


6.3 All seed potatoes imported by private or government entities for seed multiplication in the 

Philippines must be accompanied by proper quarantine documents and are subject to postentry 

quarantine. 

7. Crop-Inspection 

7.1 Seed potato crops in the fields require proper marking (labels) that are easy to be 

recognized by seed inspectors. The label must contain the following information: 

a. Grower: _____________________________ 

b. Variety: _____________________________ 

c. Original (Place): _____________________________ 

d. Seed Class Planted: _________________________ 

e. Date of Planting: ____________________________ 

f. Area (ha): __________________________________ 

7.2 Isolation Requirement: 

Seed production fields should meet the following isolation requirements: 

a. Basic-to-foundation - 2 meters between fields 

b. Foundation- Certified Seed (C 1 ) - 20 meters between fields 

c. Certified Seed (C II )- Certified Seed (C III ) - 50 meters between fields 

7.3 Officially designated seed inspectors should inspect the field at least three times during 

the crop season. 

The Field Inspection Schedule is as follows: 

1st - Within 20 -30 days after planting 

Roguing has to be carried out by the farmer continuously as early as disease 

symptoms appear and continue until vines close on rows in order to maintain the 

quality of the seed stocks. All diseased plants and off-types should be removed 

and destroyed. 

2nd - Within 40 - 50 days after planting 

All diseased plants and off-types should be removed and destroyed. 

3rd - within 60-75 days after planting 

Random fork testing of stunted plants should be undertaken to determine the 

presence of Potato Cyst Nematode (PCN) and/or root knot nematode (RKN) 

should be undertaken. 

7.4 Additional field inspections shall be done to follow-up roguing requirements and disease 

occurrence. The seed inspector should prepare the preliminary field inspection reports and 

submit to the concerned NSQCS. 

7.5 Tuber samples for laboratory analysis including disease indexing shall be collected and 

submitted by the seed inspector only when the seed crop passed field standards.

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7.6 Sampling procedures: 

Sample Size 

G 0 - not less than 50 tubers per seed lot 

F 1 - not less than 100 tubers per seed lot 

C 1 -C 111 - not less than 200 pieces of seed tubers, per seed lot (based on 95% level 

of significance) 

G 0 - The G 0 seed tubers should be collected at random from each seed rack/ 

bed, comprising the required sample size of 1% of the population or not less than 

50 tubers per seed lot. 

F 1 - All tubers from the field planting should be collected at a random in a field 

following a quadrant sampling scheme. In each quadrant of the seed lot, a minimum 

of 25 tubers per quadrant shall be collected passing through a Z-pattern , 

comprising to meet the required sample size of 100 pieces seed tubers. 

C I to C III - All tubers from the field planting should be collected at random in a 

field following a quadrant sampling scheme. In each quadrant of the seed lot, a 

minimum of 50 tubers per quadrant shall be collected passing through a Z-pattern, 

comprising to meet the required sample size of 200 pieces seed tubers. 

Table 1. Field standards for potato seed certification 

Maximum Permitted in each class/inspection in percent 

FACTORS G 0 F 1 C 1 

1st 2nd 3rd 1st 2nd 3rd 1st 2nd 3rd 

1. Varietal mixtures 0 0 0 0 0 0 0.25 0 0 

2. Gap due to missing 

hills due to roguing 0 0 0 5 5 5 10 10 10 

3. Potato Cyst 

Nematode 0 0 0 0 0 0 0 0 

4. Root Knot Nematode 0 0 0 0 0 0 0 0 0 

(RKN) 

5. Bacterial Wilt 0 0 0 0 0 0 0 0 0 

6. Black Leg 0 0 0 0 0 0 0 0 0 

7. Rhizoctonia with 

rolling leaves 0 0 0 5 3 2 8 5 2 

8. Severe virus diseases 0 0 0 0.25 0 0 1.0 0.5 0.25 

Table 2. Seed tuber standards for potato seed certification. 

FACTORS C II C III 

1st 2nd 3rd 1st 2nd 3rd 

1. Varietal mixtures 0.75 0.5 0 1.0 0.5 0.25 

2. Gap due to missing 10 10 10 10 10 10 

hills due to roguing 0 0 0 0 0 0


3. Potato Cyst 

Nematode (PCN) 0 0 0 0 0 0 

4. Root Knot Nematode 

(RKN) 0 0 0 0 0 0 

5. Bacterial Wilt 0 0 0 0 0 0 

6. Black Leg 0 0 0 0 0 0 

7. Rhizoctonia with 

rolling leaves 10 8 5 15 10 8 

8. Severe virus diseases 1.5 1.0 0.5 14 3 2 

8. Post-harvest control and seed standards 

8.1.1 Tuber samples from each field lot shall be taken one week before harvest (when the haulms are 

dried) by the Seed Inspector and shall be submitted to the laboratory immediately for bacteria and virus 

testing. Each sample shall be accompanied by a sample label, laboratory analysis report for bacteria 

and virus, and final inspection report. 

8.2 Seed size of certified seed potatoes should be 25-55 mm. 

8.3 Seed Certification : Post Harvest Standards. 

Table 2. Seed tuber standards for potato seed certification 

FACTOR Requirement in % 

G 0 F I C I C II C III 

1. Varietal Measures 100% 99.99% 99.95% 99.95% 99% 

2. Virus diseases 

a. Severe viruses 0 0 5 8 12 

PVLR 

PVY 

Mixed infections 

b. Mild virus 0 5 10 20 30 

PVX 

PVS 

PVM 

FACTOR Requirement in % 

G 0 F I C I C II C III 

3. BW-Bacterial Wilt 0 0 0 0 1 

4. Nematodes: Cyst and or Root 

Knot 0 0 0 0 0 

5. Soft rot (Erwinia carotovora) 0 0 0 0 0 

6. Bacterial ring rot 

(Clavibacter michiganese) 0 0 0 0 0 

8.4 The standard for post-harvest disease tolerance after storage and before selling for all 

classes of certified seeds are as follows:

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FACTOR PERCENT BY COUNT 

(per 100 tubers) 

1. Dry rot/wet rot 1 

2. External damages (cuts, bruises, insect 

damage, malformed tubers, etc.) 5 

3. Scab (no more than 20% of tuber surface 

is attacked) 5 

4. Black scurf (Rhizoctonia solani) (no more 

than 20% of the tuber surface) 5 

8.5 Seed Certification Fees 

Seed growers, farmerís associations and seed firms have to pay fees for services 

provided by the Seed Certifying Agency and its accredited Seed Potato Indexing Laboratories. 

8.6 Field Inspection Fee 

The field inspection fees are based on a per unit area, including 3 inspections during 

the cropping season. However, in case of additional inspections, corresponding fees will be 

charged. 

a. For 3 main field inspections 

0.5 - 1.0 ha. : P100.00 

1.0 - 1.5 ha. : P150.00 

1.5 - 2.0 ha. :P200.00 

b. Every additional field inspection : P50.00 

8.5.2 Certification Fee 

9. Tagging 

The certification fee includes the following services: 

a. Laboratory analysis - Bacterial Wilt - P200/sample 

b. Laboratory analysis for virus - P300/sample 

c. Tags - 2.00 

All seed stocks that passed the certification shall be officially tagged. 

9.1.1 The certification tag is to be attached to the bag or crate as guarantee for the 

genetic identity, health condition and varietal purity of the seeds. 

Basic (G 0 ) - White 

Foundation (F 1 ) - Red 

Certified II (C II ) - Blue 

Certified III (C III ) - Yellow


9.1.2 Certification tags shall conform with the standards set forth by the National Seed 

Industry Council including color identification as adopted in the country for all crops. The 

tags should indicate: 

Crop/Variety: __________________________________ 

Seed Grower Name: _____________________________ 

Laboratory Name: _______________________________ 

Lot Number: ____________________________________ 

Germination: ___________________________________ 

Date Tested: ____________________________________ 

Date Harvested: _________________________________ 

Seed Inspector Name :____________________________ 

10. Examination and Verification by the Seed Certifying Agency 

10.1 The staff of the Seed Certifying Agency has to carry out several field inspections 

during the cropping season to assure a reliable field inspection work. 

10.2 Representative from the Seed Certifying Agency should also check at unscheduled 

times seed stocks that had been tagged before selling or distribution. 

For your strict compliance. 




(SGD.) BLO UMPAR ADIONG 

Executive Director and Vice-Chairman, National Seed Industry Council 


--o0o-- 


Defining the Role of the Bureau of Animal Industry 

in the Absorption of the Programs and Functions of the National 

Stud Farm Pursuant to Executive Order No. 296, s. 2000 

WHEREAS, Executive Order 296, issued on October 3, 2000 integrated the personnel, 

programs, assets and resources of the National Stud Farm (NSF) with the Bureau of Animal 

Industry and other Offices of the Department; 

WHEREAS, there is an urgent need to ensure the continuity and implementation of 

NSF programs and functions which are geared towards the improvement of the breed of 

Philippine horses in support to the horse breeding and racing industries;

160 


WHEREAS, Administrative Order No. 46, s. 2000 , created within the Bureau of 

Animal Industry a Stud Book and Animal Registry Division (SBARD) which is the dulyrecognized 

Stud Book Authority of the Philippines (SBAP) and is tasked of regulating the 

racehorse breeding industry of the country; 

WHEREAS, the assets and equipments of the NSF have been ordered transferred to 

the Bureau of Animal Industry under a Department Memorandum dated September 19, 

2000; 

NOW, THEREFORE, I, LEONARDO Q. MONTEMAYOR, Secretary of Agriculture, by 

the power vested in me by law, do hereby order the Bureau of Animal Industry to implement 

the following: 

1. Strengthen the integration of horse breeding activities previously implemented by the NSF 

into the mainstream of BAI activities with emphasis on providing private horse owners highquality 

stallion services at affordable breeding fees; 

Correspondingly, the establishment of breeding stations proximate to horse-breeding activities 

and the acquisition of pedigreed stallions from local and foreign sources for breeding 

purposes is hereby encouraged. 

2. Provide horse breeders services for equine care and maintenance such as the conduct of 

Equine Anemia Tests (Cogginsí Test), prevention and control of other equine diseases, allied 

laboratory tests and equine surgical operations; 

Hospital and laboratory equipment transferred from the NSF to BAI shall be assessed and 

if needed, shall be augmented in order to effectively serve the needs of the horse breeding 

industry. 

3. Establish and maintain a system of registration and identification to prevent illegal substitution 

of horses. 

4. Publish the Philippine Stud Book wherein all horses allowed to participate in the races and 

those used for breeding purposes are duly registered and their pedigree recorded and 

recognized by other countries. Concomitantly, close coordination with the International Stud 

Book Committee (ISBC) and the international breeding community shall be maintained. 

5. Promulgate rules and regulations necessary to accomplish the purposes of this Order and 

prescribe reasonable fees and charges as may be necessary for each report filed, for each 

certificate it may issue and for services it may render to breeders. 

Annual budgetary requirements for the integrated personnel and functions of the NSF 

shall be proposed and incorporated under the budget of the Bureau of Animal Industry. 

Correspondingly, funds previously accruing in favor of the NSF from government and nongovernment 

entities, by virtue of existing laws, shall now be in favor of the Bureau of Animal 

Industry. 

This Order shall take effect immediately. 

Adopted: 04 Jan. 2002




Secretary 

--o0o-- 


Guidelines for the Implementation of EO 45 dated 

October 24, 2001, ìPrescribing Time Periods for Issuance of 

Housing-Related Certifications, Clearances and Permits, 

and Imposing Sanctions for Failure to Observe the Sameî 

In order to address the urgent housing needs of the Filipino people and to achieve the 

housing targets of the government, it is imperative to fast track the approval and implementation 

of the housing projects. In view of this, EO 45 was issued which prescribes the time 

periods for the issuance of housing-related certifications, clearances and permits of concerned 

national agencies and the Local Government Unit. These guidelines are hereby 

prescribed for the guidance of the public in general. 

I. GENERAL PRINCIPLE 

This administrative order pertains to the eligibility of a particular parcel of land for 

reclassification to non-agricultural use, in accordance with the pertinent provisions of RA 

8435 (Agriculture and Fisheries Modernization Act), RA 6657 (Comprehensive Agrarian 

Reform Law) and RA 7160 (Local Government Code). This guideline applies to all agricultural 

lands within and outside the Strategic Agricultural and Fisheries Development Zone 

(SAFDZ) and the Network of Protected Areas for Agricultural and Agro-Industrial Development 

(NAPAAD). The total agricultural land under Agriculture and Fisheries Modernization 

Act (AFMA) refers to the sum of land occupied by SAFDZ and NPAAAD. 

II. LEGAL BASES 

A. Lands within SAFDZ - In accordance with Section 9 of RA 8435, the following rules shall 

govern land use reclassification (LUR) applications within SAFDZs: 

All irrigated lands, irrigable lands already covered by irrigation projects with 

firm funding commitments, and lands with existing or having the potential for 

growing high-value crops so delineated and included within the SAFDZ shall not 

be converted for a period of five (5) years from February 10, 1998 to February 

9, 2003. Provided, however, That not more than five percent (5%) of the said 

lands located within the SAFDZ may be converted upon compliance with existing 

laws, rules, regulations, executive orders and issuances, and administrative 

orders relating to land use conversion. 

Reclassification of lands within the SAFDZ, shall take into account the following conditions 

in accordance with Rule 9.5.2 of Administrative Order No. 6, series of 1998:

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a. the conversion of land use is consistent with the natural expansion of the municipality or 

locality, as contained in the approved physical framework and land use plan; 

b. the area to be converted in use is not the only remaining food production area of the 

community; 

c. the land use conversion shall not hamper the availability of irrigation to nearby farmlands; 

d. the areas with low productivity will be accorded priority for land use conversion; or, 

e. when the proposed project is supportive to agro-industrial development and will generate 

alternative livelihood opportunities for the affected community. 

B. Lands within NPAAAD but outside of SAFDZ 

Areas applied for within the NPAAAD shall be governed by Section 20 of RA 7160. In 

each municipality, the reclassification shall be limited to the following percentage of the total 

agricultural land: 

a. For highly urbanized and independent component cities - 15% 

b. For component cities and first to third class municipalities - 10% 

c. For fourth (4th) to sixth (6th) class municipalities - 5% 

C. Lands outside of SAFDZ and of NPAAAD 

All private lands outside of SAFDZ and of NPAAAD are considered marginal lands and 

are automatically eligible for reclassification. 

III 

Exemption from DA Certification 

The following lands shall be exempted from DA certification: 

a. Those reclassified to residential, commercial, industrial, or other non agricultural/uses 

prior to June 15, 1988; 

b. Those to be devoted to another type of agricultural activity such as livestock, poultry and 

fishpond. 

Those covered by these exemptions shall be referred to the Department of Agrarian 

Reform (DAR) for the issuance of exemption certification. 

IV 

Approving Authorities 

The following DA officials shall approve or disapprove applications for land use reclassification 

for housing purposes: 

1. The Regional Executive Director or his designated Regional Technical Director for areas 

outside the SAFDZ and with a total area of 5 hectares and below.


2. The Secretary or his designated official for areas covering lands within SAFDZ regardless 

of area and those lands outside of SAFDZ covering more than 5 hectares. 

V. 

Mechanisms for the Evaluation of Applications 

A. THE TECHNICAL EVALUATION COMMITTEE ON LAND USE MATTERS (TECLUM) 

1. The TECLUM shall have a Regional and National Committee. 

2. The Regional Technical Evaluation Committee on Land Use Matters (RTECLUM) shall act 

as the Regional One-Stop Housing Permit Office (ROSHPO) for the DA at the region. 

3. The RTECLUM shall accept, process, and recommend action on housing-related certification 

for areas outside the SAFDZ areas with total area of 5 hectares and below. 

4. The National Technical Evaluation Committee on Land Use Matters (NTECLUM) shall 

accept, process, recommend action on housing-related certification for areas covering lands 

within SAFDZ regardless of area and those Non-SAFDZ/NPAAAD lands covering more than 

5 hectares. 

B. The National Technical Evaluation Committee on Land Use Matters (NTECLUM) and Regional 

Technical Evaluation Committee on Land Use Matters (RTECLUM) shall be an Inter- 

Agency Committee. 

- The NTECLUM shall be composed of the following: 

Chair - Director, Bureau of Soils and Water Management (BSWM) 

Regular Members: 

Representative from National Irrigation Administration (NIA) 

Representative from Philippine Coconut Authority (PCA) 

- On the other hand, the RTECLUM shall be composed of the following: 

Chair - DA Regional Executive Director 

Regular Members: 

Representatives from National Irrigation Administration (NIA) 

Representatives from Philippine Coconut Authority (PCA) 

BSWM Soil and Water Action Team (SWAT) Coordinator 

- The Chair of NTECLUM and RTECLUM may call on other agencies to act as resource 

persons on specific land issues. The resource persons shall provide technical and policy 

guidelines that may be requested by the Committee in making their final evaluation and 

recommendation. 

VI 

Application Procedure 

1. Where to File - The application for housing and other land use reclassification (LUR) 

shall be filed with the DA-ROSHPO located at the Regional Field Unit (RFU).

164 


2. Documentary Requirements 

- The applicant files an application for a Certificate of Irrigation Coverage (CIC) issued by 

NIA and/or where applicable, for a Certificate of Inspection/Verification (Coconut Lands 

Applied for Conversion) issued by PCA at the ROSHPO. 

- An applicant pays the application fees in securing the NIA and/or PCA certificates. 

- The ROSHPO shall coordinate with NIA or the PCA, and is given fifteen calendar days 

to issue the pertinent certificates 

- The RTECLUM personnel shall review and ensure that all LUR applications are supported 

with a complete set of documentary requirements. (See Documentary Requirement) 

- Applications with incomplete requirements shall not be accepted. However, the applicants 

shall be provided with a checklist of required documents to be submitted on the date 

prescribed by the RTECLUM. 

3. Filing Fee 

- The application fee shall be paid upon submission of LUR application with complete set 

of documentary requirements. The applicant shall pay a fixed fee and an inspection fee, as 

follows: 

Area Applied For Fixed Fee Inspection Fee 

15 has. and below P1,750.00 P5,000.00 

> 15-30 has. P2,000.00 P7,500.00 

More than 30 has. P3,000.00 P10,000.00 

-No fee will be collected for LUR applications that are exempted from DA certification. 

4. Processing of Application 

Processing of applications shall commence upon receipt of complete application, including 

NIA and/or PCA Certifications. 

If the application should exceed the 5% limit allowed under Sec. 9 of RA 8435, the 

application shall be returned with the information that the applicant should negotiate with the 

concerned LGU, HLURB and other concerned agencies, for the inclusion of the excess area 

as part of the urban expansion of the municipality. 

4.1 Verify Classification of Site and Reclassification Limit 

4.1.1 Verify the classification of the area on the official SAFDZ map, if the area is 

- Outside of SAFDZ or NPAAAD 

- Within SAFDZ 

- Non-SAFDZ or Non-NPAAAD (Marginal Lands)


4.1.2 Check the applied area with the allowable reclassification limit: 

- Within the SAFDZ, compute allowable land for reclassification based 

on five (5%) percent of total SAFDZ area of municipality 

- If Non-SAFDZ, compute allowable land for reclassification in each 

municipality based on the following percentage of the total agricultural land within 

the NPAAAD: 

- For highly urbanized and independent component cities -- 15% 

- For component cities and first to third class municipalities - 10% 

- For fourth (4th) to sixth (6th) class municipalities - 5% 

4.1.3 If marginal land, approve the application and issue certificate. 

4.2 Field Investigation 

The RTECLUM shall conduct the actual field investigation for all applications within two 

(2) working days upon receipt of complete application and payment of filing fee. The inventory 

must include the following information: 

1. location and accessibility; 

2. limitations to agricultural production, such as steep slope, unstable soil condition (landslide, 

etc.); inadequate land drainage; very shallow, stony, rocky soil; very serious boulder 

problem. 

3. existing land use; 

4. indication of premature development or alteration of land use (with picture). 

5. land use of adjoining area; 

6. indication of non-agricultural development; and, 

7. potential for agricultural production 

In the event that the land being applied for is within the 5% allowable limit under 

Section 9 of RA 8435, the investigation report should also include the following information: 

- the total area of SAFDZ 

- the allowable 5%limit 

- the total area already approved for reclassification by the DA 

- the balance of the 5% allowable area 

- the balance of the 5% allowable area if the application is approved 

4.3 Transmittal of Field Investigation Report and Other Documents 

- The RTECLUM after complete review and evaluation of all pertinent documents and 

results of field investigation shall endorse the application to Regional Executive Director with 

the appropriate recommendation.

166 


- The Regional Office shall notify the applicant of the action taken on the application. 

- Applications that are not within the approving authority of the Regional Executive Director 

shall immediately be forwarded to the NTECLUM with complete documents, including 

proof of payment of fee and result of field investigation. 

VII 

Motion for Reconsideration/Appeal 

- The decision of the denial of the Regional Executive Director may be appealed to the 

Secretary within 10 days from receipt of the denial. 

- The applicant may file a motion for reconsideration of a denial rendered by the Secretary 

within 10 days upon receipt of the denial certification. 

- Motion for Reconsideration to the approving authority shall be filed only once. 

VIII 

Monitoring of Approved Applications 

- The RTECLUM through the Regional Executive Director shall submit a monthly report 

showing the status of LUR applications, total area approved vis-a-vis allowable reclassification 

limits to the Office of the Secretary, copy furnished the NTECLUM Secretariat. 

- The NTECLUM Secretariat shall publish once a year in a newspaper of national circulation 

all municipalities that have given conversion approval of at least 30% of the allowable 5% 

of lands within the SAFDZ for conversion. 

- An Audit Team from the Office of the Secretary shall be created to conduct spot checks 

on the approved applications emanating from the RTECLUM and the NTECLUM. 

IX Sanctions 

The DA may impose against its own officials or employees the following sanctions, in 

accordance with the Uniform Rules on Administrative Cases in the Civil Service [effective 26 

September 1999], specifically Rule IV, Section 52, sub-section ìCî (Numbers 13-15), to wit: 

1. Failure to act promptly on letters and request within fifteen (15) days from receipt, 

except as otherwise provided in the rules implementing the Code of Conduct and Ethical 

Standards of Public Officials and Employees: 

1st Offense - Reprimand 

2nd Offense - Suspension 1-30 days 

3rd Offense - Dismissal 

2. Failure to process documents and complete action on document and papers within a 

reasonable time from preparation thereof, except as otherwise provided in the rules implementing 

the Code of Conduct and Ethical Standards of Public Officials and Employees: 



3rd Offense - Dismissal


3. Failure to attend to anyone who wants to avail himself of the services of the office, or 

act promptly and expeditiously on public transactions: 




X 

Annexes 

This administrative order contains two annexes, which shall be considered an integral 

part of the guidelines, namely: a list of documentary requirements (Annex A*), and the 

timeline for the processing of the applications. (Annex B*). 

XI 

Separability 

The provisions of this administrative order are hereby declared to be separable, and in 

the event that one or more of such provisions are held unconstitutional, the validity of the 

other provisions shall not be affected thereby. 

XII 

Effectivity 

This Order shall take effect ten (10) days after the publication in two (2) national 

newspapers of general circulation. 

Adopted: 22 Jan. 2002 




--o0o-- 


Temporary Ban on the Importation of Domestic 

and Wild Birds and Their Products Including Poultry Meat, 

Day Old Chicks, Eggs and Semen Originating from the 

State of Pennsylvania, United States of America (USA) 

WHEREAS, the US Animal and Plant Health Inspection Service confirmed the occurence 

of avian flu in the State of Pennsylvania, USA, starting December 2001; 

WHEREAS, type H7N2 virus was identified as causing low pathogenic type of avian 

influenza outbreaks in the said US state;

168 


WHEREAS, as indicated in the OIE Manual, H7N2 virus could develop to highly pathogenic 

avian influenza; 

WHEREAS, the Ministry of Agriculture of Japan imposed a ban on poultry and poultry 

products from USA; 

WHEREAS, the Philippines imports poultry and poultry products from the USA; 

WHEREAS, there is a need to prevent the entry of pathogenic virus causing avian flu to 

protect the health of the local poultry population; 


the powers vested in me by law, do hereby institute the following emergency measures: 

1. Banning the importation of domestic and wild birds and their products, including day-old 

chicks, eggs and semen from the state of Pennsylvania USA; 

2. Banning the importation of poultry meat from birds slaughtered in Pennsylvania, starting 

from December 1, 2001 onwards. 

3. Immediate suspension of the processing, evaluation and issuance of Veterinary Quarantine 

Clearance/International Veterinary Certificate Import Permit for applications relevant to 

the importation of the above-stated commodities from the state of Pennsylvania, USA by the 

Bureau of Animal Industry. 

4. Stoppage and confiscation of all shipments into the country of suspected/affected products 

originating from the state of Pennsylvania, USA by all DA Veterinary Quarantine Officers/Inspectors 

at all major sea/air ports. 

This ORDER shall take effect immediately. 

Adopted: 30 January 2002 



Secretary 

(SGD.) JOSE Q. MOLINA, DVM, MVS 

Director 

--o0o-- 


Temporary Ban on the Transhipment from Japan and China of 

Domestic and Wild Birds and Their Products Including Poultry Meat, 

Day Old Chicks, Eggs and Semen Originating from the 

United States of America (USA)


WHEREAS, the US Animal and Plant Health Inspection Service confirmed the occurence 

of avian flu in the State of Pennsylvania, USA, starting December 2001; 

WHEREAS, type H7N2 virus was identified as causing low pathogenic type of avian 

influenza outbreaks in the said US State; 

WHEREAS, as indicated in the OIE Manual, H7N2 virus could develop to highly pathogenic 

avian influenza; 

WHEREAS, the Ministry of Agriculture of Japan imposed a ban on poultry and poultry 

products including eggs from USA; 

WHEREAS, the Entry - Exit Inspection Quarantine of Peopleís Republic of China 

imposed a ban on poultry meat from a slaughter plant in Atlanta, Georgia USA due to bacterial 

contamination with E. coli; 

WHEREAS, the poultry and poultry products from the USA already in the export pipeline 

to Japan and China may be transhipped to the Philippines. 

WHEREAS, there is a need to prevent the entry of pathogenic virus causing avian flu 

to protect the health of the local poultry population; 

WHEREAS, there is a need to prevent the entry of contaminated poultry meat to protect 

the health of the local human population; 

WHEREAS, the Philippines imports poultry and poultry products from the USA; 


the powers vested in me by law, do hereby institute the following emergency measures: 

1. Banning the transshipment from Japan and China of domestic and wild birds and their 

products, including day-old chicks, eggs and semen originating from the United States of 

America; 

2. Immediate suspension of the processing, evaluation and issuance of Veterinary Quarantine 

Clearance/International Veterinary Certificate Import Permit for applications relevant to 

the transshipment of the above-stated commodities from Japan and China which originated 

from the USA by the Bureau of Animal Industry. 

4. Stoppage and confiscation of all transshipment into the country of suspected/affected 

products originating from Japan and China which originated from USA by all DA Veterinary 

Quarantine Officers/Inspectors at all major sea/air ports. 




Secretary

170 




Director 

--o0o-- 

Memorandum Order No. 1, s. 2002 

Lifting the Temporary Ban on the Importation of Live Pigs, 

Semen, Pork, Pork Products From the United Kingdom 

WHEREAS, the Office International des Epizooties (OIE) recognized the restoration 

of Foot and Mouth Disease (FMD) - free status without vaccination in United Kingdom last 

January 21, 2002; 

WHEREAS, based on the evaluation of the Veterinary Quarantine Services of the 

Bureau of Animal Industry, the risk of contamination from importing live pigs, semen, pork, 

pork products and by-products from United Kingdom is negligible; 


the powers vested in me by law, do hereby lift the temporary ban on the importation of live 

pigs, semen, pork, pork products and by-products from United Kingdom, under the following 

conditions: 

1. The animals came from farms where no clinical signs of any disease were observed. 

2. The animals were slaughtered in an approved abattoir for export. Ante-mortem ad postmortem 

inspections were conducted in the abattoir where the animals were slaughtered, and 

no disease or any abnormal signs were observed. 

All existing rules and regulations, which are inconsistent with this ORDER, are hereby 

modified, repealed or revoked accordingly. 

This Order shall take effect immediately. 

Adopted: 5 Feb. 2002 



Secretary 

--o0o-- 


Revised Rules and Regulations on the Control 

and Eradication of Foot and Mouth Disease (FMD)


WHEREAS, reports gathered by the Department of Agriculture have shown that Foot 

and Mouth Disease (FMD) continues to occur in most provinces of Luzon; 

WHEREAS, the whole island of Mindanao has been free of FMD for the past 20 years, 

and has been declared as FMD free zone locally on 29 March 1993 by vitue of Administrative 

Order No. 8 signed by Secretary Roberto S. Sebastian; 

WHEREAS, Luzon was declared an FMD calamity area last 15 June 1995 by virtue of 

Executive Order # 251; 

WHEREAS, there is a danger of spreading FMD by transporting from PFD affected 

provinces into non-affected provinces of the country any of the following: (1) FMD susceptible 

animals, their unprocessed semen and embryo/ova; 2) their fresh, frozen, or chilled 

meat sourced locally; uncooked meat products and by-products; unprocessed and semiprocessed 

milk source locally; and semi processed meat products and by-product; 3) FMD 

vaccines; 4) dung of chicken, pig and other ruminants; and 5) animal effects or hay, straw, 

forage or similar materials used as feeds and bedding materials of FMD susceptible animals; 

WHEREAS, FMD outbreaks in Iloilo last September 1999 proved that there is a threat 

spreading the disease to the rest of the Visayas and Mindanao; 

WHEREAS, Mindanao was recognized as an FMD free zone without vaccination by 

OIE last 30 May 2001; 

WHEREAS, there is a need to maintain the OIE recognition of Mindanao as an FMD 

free zone; 

NOW, THEREFORE, I, Leonardo Q. Montemayor, Secretary of Agriculture, pursuant 

to Section 3, Chapter 1, Title IV, Book IV of Executive Order No. 292, and the provisions of 

Administrative Order No. 9, Series of 1993 implementing RA 7394 otherwise known as 

Consumer Act of the Philippines; and the provisions of R.A. 8485 otherwise known as The 

Animal Welfare Act of 1998 do hereby issue this order; 

SECTION 1. Definition of Terms - 

a. FMD Susceptible Animals - refers to hogs, cattle, carabao, sheep and goats and other 

cloven footed animals 

b. Meat - all edible parts of an animal 

c. Fresh Meat - meat that has not been treated in any way other than by modified atmosphere 

packaging or vacuum packaging to ensure its preservation. This includes frozen 

meat, chilled meat, minced meat and mechanically recovered meat. 

d. Meat Product - meat that has been subjected to a treatment irreversibly modifying its 

organoleptic and physiochemical characteristics. 

e. Fully Processed Meat Products - refer to meat products which have been subjected to 

such treatment that will ensure the destruction of the FMD virus according to the following

172 


procedures and that necessary precautions were taken after processing to avoid contact of 

the meat with any potential source of FMD virus. 

e.1 Canning - This involves heating the meat places in a hermetically sealed 

container to an internal core temperature of at least seventy degrees Celsius 

(70 0 C) for a minimum of thirty (30) minutes, or any equivalent treatment, which 

has been demonstrated to inactivate the FMD virus. 

e.2 Thorough Cooking - This involves heating deboned and defatted meat to an 

internal temperature of at least seventy (70) degrees Celsius (70 0 C) for a minimum 

of thirty (30) minutes. 

e.3 Drying after Salting - This involves thorough soaking of deboned meat - 

when rigor mortis is complete - in brine or table salt (NaCl) solution, at a ratio of 

2.25 parts brine to one part meat, and then drying the salted meat at ambient 

temperature. 

f. Semi-Processed Meat Products - are those that have not been subjected to any of the 

treatments enumerated above. 

g. Animal By-products - refer to hides, horns, skin, bones, hooves and other parts or 

products of pig, cattle, carabao, goat and sheep that are unsuitable for human consumption. 

h. Fully Processed Animal Products - are those that were subjected to any of the treatments 

enumerated in paragraph e. 

i. Animal effects - refer to any hay, forage or similar materials used as blankets and the like 

for FMD susceptible animals. 

j. FMD outbreak - refers to one or more reported clinical cases of FMD infection among 

animals that occured in a specific date and location (backyard or commercial farm, slaughterhouse 

or auction market). FMD cases that were detected within two (2) weeks after the 

initial case are also considered part of the same reported outbreak. 

k. Illegal/Unauthorized Shipments - refer to modes of transporting animal and meat products 

under this Order and those not covered by any written authority or permit from the 

Bureau of Animal Industry (BAI) or its duly authorized representative. 

SECTION 2. Declaration of Existence of Foot and Mouth Disease - Foot and Mouth 

Disease (FMD), is prevalent in mainland Luzon. 

The BAI Director, upon the recommendation of concerned animal health authorities of 

said office, shall declare an area of province ìFMD affectedî and remain as such until the 

BAI declares it as a ìcontrolled or free area.î The declaration of any area as either FMD 

affected, controlled or free area shall be subject to the guidelines set by concerned BAI 

animal health authorities. 

SECTION 3. General Requirements for Movement of FMD Susceptible Animals, 

Their Meat, Meat Products, and By-Products - All shipments from one province to another


of any of the following possible sources of FMD virus or contamination shall require a written 

authority or permit from the BAI Director or his duly authorized representative: 

1. FMD susceptible animals, their unprocessed semen and embryo/ova 

2. Their fresh, frozen, or chilled meat sourced locally; uncooked meat products and byproducts, 

unprocessed and semi-processed milk sourced locally; and semi-processed meat 

products and by-products; 

3. FMD vaccines; 

4. Dung of chicken, pig and ruminants; and 

5. Animal effects or any hay, straw, forage or similar material used as feeds and bedding 

materials of FMD susceptible animals. 

In case of meat and meat products, a Certificate of Inspection from the National Meat 

Inspection Commission (NMIC) is required before a written authority/permit can be issued 

by the Director of the Bureau of Animal Industry or his duly authorized representative. 

SECTION 4. Shipment Prohibition from Luzon - Shipment of any of the possible 

sources of FMD virus and contamination as enumerated in Section 3 (nos. 1-5) is not 

allowed to Luzon to Masbate, Palawan, the Visayas and Mindanao. 

SECTION 5. Shipment Restriction in Luzon - Shipment of any of the possible sources 

of FMD virus and contamination as enumerated in Section 3 (nos. 1 and 2 ) is allowed from 

Masbate and Palawan to the Visayas and Mindanao, subject to the provisions of Section 3. 

In addition, shipment of FMD susceptible animals to Mindanao will require a negative serum 

titer against FMD. 

Shipment from any point in Luzon to Bicol (Region V) and Cagayan Valley (Region II) 

is limited to FMD susceptible breeder animals, FMD susceptible draft animals and cooked 

meat products only. 

Shipment of the same from the other provinces in Luzon to the island provinces of 

Masbate and Palawan is not allowed. 

SECTION 6. Shipment Restriction in Mindanao - Shipment of any of the two possible 

sources of FMD virus and contamination as enumerated in Section 3 (nos. 1 and 2) is 

allowed within Mindanao. 

Shipment of the same is allowed from Mindanao to the Visayas and Luzon. 

SECTION 7. Shipment Restriction in the Visayas - Shipment of any of the two 

possible sources of FMD virus and contamination as enumerated in Section 3 (nos. 1 and 2) 

is allowed within the Visayas. 

Shipment of the same is allowed from the Visayas to Luzon. 

Shipment of the same is allowed from the Visayas to Mindanao. However, shipment of 

FMD susceptible animals will require a negative serum titer against FMD. 

SECTION 8. Shipment of FMD Vaccines - Shipment of FMD vaccines to Visayas 

and Mindanao is not allowed unless it is covered by a special permit from the Bureau of 

Animal Industry.

174 


SECTION 9. Reporting of Occurence/Existence of FMD - It shall be mandatory on 

the part of the owners/operators/managers/farm consultants of livestock farms/establishment 

to report immediately the occurence/existence of FMD to any of the following offices, namely: 

the Provincial/Municipal/City Veterinarian Quarantine Service (VQS) or to the National FMD 

Task Force at BAI. All reports, however, must be forwarded to the National FMD Task Force 

Office. 

SECTION 10. Inspection of Livestock Farms and Establishments - The Director of 

the Bureau of Animal Industry or his duly authorized representative(s) can inspect the different 

livestock farms/establishments at any reasonable time of the day to monitor reported 

FMD occurence. Farm owners, managers, or representatives are required to extend assistance 

to the FMD inspection team. They are also mandated to institute regular and sustained 

biosecurity measures to prevent FMD occurence. 

Provincial/Municipal/City Veterinarians may initiate the inspection of livestock farms 

and establishments in their area of jurisdiction and record the findings as reference in 

assisting the future visit of the BAIís FMD inspection team. 

SECTION 11. Accreditation of Livestock Farms and Establishment - It is mandatory 

for commercial livestock farms or establishments to seek accreditation from the DA-RFU 

VQS and the Provincial, Municipal or City Veterinarianís Office before they are allowed to 

transport animals, meat and meat products. 

SECTION 12. Loading/Unloading of FMD susceptible animals, meat, meat products 

and by products from/by shipping vessels, airline vessels and other common carriers as 

well as cargo forwarders - Shipping lines, airlines and other carriers as well as cargo 

forwarders, their owners, managers, employees or agents shall seek first a written authority 

or permit from the BAI Director or his duly authorized representative before they are allowed 

to load and transport any FMD susceptible animals, their meat, meat products and byproducts. 

Shipping lines originating from FMD affected areas and destined for the Visayas and 

Mindanao and other FMD free areas shall see to it that all the livestock vans or crates are 

thoroughly cleaned and disinfected before loading. They shall also install footbaths at the 

foot of the stairs or gangplanks, and require all passengers to step on the footbaths as they 

board or disembark from the vessel. 

Shipping lines docking at the ports of Visayas and Mindanao and other FMD free areas 

shall not source their food supply requirements - particularly meat and meat products from 

FMD affected areas - intended for the officers, crew and passengers. They shall also properly 

dispose of their garbage and swill in accordance with the recommendations of the DA- 

RFU VQS office in the port concerned. 

All ships, airplanes, reefer vans and other transport carriers going to the Visayas, 

Mindanao and other FMD free areas shall be subjected to pre-departure and arrival inspections 

by the DA-BAI VQS officers. 

In cases where the animal cargo is found positive for FMD, the vessel shall be properly 

disinfected under the supervision of the DA-BAI VQS. The expense for disinfection service 

shall be borne by the owner of the cargo. The infected animals shall be properly disposed of 

in accordance with Section 15.


SECTION 13. NMIC Certification - In addition to a shipping permit, meat and meat 

products bound for shipment to Mindanao and other FMD areas must be accompanied by a 

Certificate of Inspection issued by the NMIC, in accordance with existing rules and regulations. 

The certificate must certify to the wholesomeness of the products and that these have 

not been exposed to or contaminated with the FMD virus. 

SECTION 14. Transhipment of Imported Animals and Meat - Imported FMD susceptible 

animals destined for Visayas and Mindanao and other FMD free areas may be transshipped 

through Luzon or Visayas, provided they must stay only at the port during transshipment 

to prevent any possible spread of the FMD virus. 

Imported meat and meat products destined for Mindanao may be transshiped to Visayas 

and kept temporarily in a storage facility duly accredited by the NMIC and concerned DA- 

BAI VQS. The facilityís accreditation is issued and renewed every six months. 

While in storage, the imported meat should not be mixed with local meat products. If 

found guilty of mixing, the facilityís accreditation will be subject to cancellation. 

The storage facility shall be subject to inspection by the DA-BAI and/or NMIC officers 

at any reasonable time of the day. 

Only imported meat, which passed inspection by the Veterinary Quarantine Service at 

the port of entry, may be shipped to Mindanao, the Visayas and other FMD free areas. 

Imported meat which needs further processing in Luzon before shipment to Mindanao, 

Visayas and other FMD free areas can only be processed in establishments duly accredited 

by a team from the BAI and the DA-RFU VQS of the recipient region in the Visayas or 

Mindanao. The firmís accreditation is renewable every six months. 

SECTION 15. Disposition of Illegal Shipment - Illegal or unauthorized shipment of 

animals, meat products and by products, FMD vaccines and other items shall be disposed 

off in accordance with the following guidelines: 

a. Animals - Those found infected with FMD shall be immediately condemned and disposed 

of by burning and.or burying in a deep pit. Those without signs of FMD but were 

found to have no shipment papers shall not be unloaded from the transport carrier and 

returned to their origin. If already unloaded, these shall be seized and returned immediately 

to their place of origin or source. If the owner or consignee refused to do so, it shall be a 

ground for confiscation or detention at his expense. 

b. Meat and Meat Products - Unauthorized shipment of meat and meat products shall be 

seized and disposed of immediately at the point of entry as provided by NMIC rules and 

regulations. 

c. FMD Vaccines - Unauthorized shipment of FMD vaccines shall be seized and turned 

over to the BAI for proper disposition. 

d. Other Items - not enumerated above shall be seized and returned to their place of origin 

or source. If the owner or consignee refuses to do so, the seized items will be confiscated 

and disposed of by burning or burying in a deep pit.

176 


Any cost or services incurred in the disposition of illegal shipments shall be paid/ 

shouldered by the shipper/trader/person or corporations liable for such violation. 

The seizure or confiscation of animals, meat products and by-products and other items 

must be properly documented, witnessed and covered by appropriate custody or acknowledgment 

receipt prior to condemnation or release. 

SECTION 16. Non-Liability Clause - All charges for storage, demurrage, cartage, 

labor incident to inspection, cost of disinfection and disposition or condemnation shall be 

paid by the shipper, trader, person or firm found liable violating any of the provisions of this 

Order. 

The BAI Director or his duly authorized representative shall not be held liable for 

damages to the animals or products in the course of the implementation of the provisions of 

this Order. 

SECTION 17. Presumption of Guilt - Any person having in his possession, control or 

custody of FMD susceptible animals, their meat and meat products, including those regulated 

or prohibited under this Order, shall upon demand by competent authorities exhibit the 

documents prescribed in the preceding sections. 

Failure to do so within the reasonable period of time shall serve as a prima facie 

evidence, and especially so if said animals, animal products and by-products in his possession, 

control VQS authorities. 

SECTION 18. Penalty - Any violation of this Order by any person, firm, livestock 

trader, farm owner or master or officer of vessels, boat, airplane and other transport carriers 

shall be liable to prosecution and upon conviction, shall be subject to a fine of not less than 

One Thousand Pesos (P1,000.00) but not more than Ten Thousand Pesos (P10,000.00) , or 

imprisonment of not less than two (2) months but not more than one (1) year, or both, upon 

the discretion of the Court, pursuant to Art. 19 of RA 7394. Carrier of the illegal shipment 

may be impounded for a period of one (1) month at the discretion of the Court. 

Any VOS officer/inspector, or officer and staff of the DA-RFU, BAI or NMIC found to 

be grossly negligent in the implementation of the provisions of this Order shall be held 

administratively liable in accordance with the Civil Service rules and regulations. 

SECTION 19. Repealing Clause - Any provision or portion of any rules and regulations 

inconsistent herewith are hereby repealed or amended accordingly. 

SECTION 20. Effectivity Clause - This Order shall take effect fifteen (15) days after 

publication of the same in two (2) newspapers of general circulation at least once a week for 

a period of not less than one (1) month, and its filing with the UP Law Center. 



Secretary 

--o0o--




Revised Guidelines in the Importation of 

Processed Dog Food and Cat Pet Foods 

Whereas, Section 1 of Article 2 of the GATT-WTO Agreement on Sanitary and 

Phytosanitary Measures (SPS) provides that ìmember countries have the right to take SPS 

measures necessary for the protection of human, animal or plant life or healthî; 

Whereas, there is a need to harmonize existing import rules and regulations in 

accordance with increasing global trade while ensuring adequate agriculture quarantine; 

Whereas, fully processed dog and cat pet foods manufactured under strict hygienic 

and sanitary conditions will not pose any threat of introducing infection or disease; 

Whereas, existing guidelines require that importation of pet foods shall need an issuance 

of import permit by Bureau of Animal Industry (BAI-DA); 

Whereas, many countries allow importation of pet foods without requiring import permit; 


the powers vested in me by law, do hereby prescribe the following guidelines on the importation 

of petfoods: 

1. Only pet foods duly registered and produced by manufacturing plants accredited by BAI 

shall be allowed importation. 

2. An import permit will no longer be required for the importation of pet foods, as long as an 

International Veterinary Certificate issued by the Veterinary Authority of the exporting country, 

accompanies the imported pet foods attesting that: 

a. The pet foods originate from manufacturing plants accredited by BAI; 

b. The country is free from BSE and the mammalian protein used is derived from 

animals born and bred in the country; 

c. The country is free from Foot and Mouth Disease for the last six months prior to 

the date of export; 

d. The product has undergone a manufacturing process that destroys infectious 

agents, packed in new and sterilized packages and precaution was taken to 

prevent the re-infection of the end product. 

3. Upon arrival at the port of entry, the imported pet foods shall be subjected to routine 

veterinary quarantine inspection and clearance. Only those that meet the existing veterinary 

quarantine requirements shall be endorsed to the Bureau of Customs for release.

178 


All existing Orders, rules and regulations inconsistent herewith are hereby revoked, 

repealed and/or amended accordingly. 





Secretary 

--o0o-- 


Code of Practice for Poultry Dressing 

Pursuant to the provisions of Republic Act 8485, otherwise known as ìAnimal Welfare 

Act of 1998î, the following rules and regulations are hereby promulgated for the information, 

guidance and compliance of all concerned. 

SECTION 1. Basic Policy and Objectives - All poultry processing plants shall ensure 

adequate protection and welfare of the birds while awaiting slaughter in order to avoid mishandling 

or the infliction of unnecessary pain or distress during the slaughtering process. 

Meat Control Officers or Meat Inspectors from the National Meat Inspection Commission 

or from the local government shall supervise the meat inspection work. 

The following guidelines shall be followed: 

1.1 Slaughtering and/or dressing of shall be done in the presence of an Animal Welfare 

Officer. 

1.2 The Meat Control Officer or Local Meat Inspector, Provincial, City and Municipal Veterinarian 

shall be deputized as Animal Welfare Officers by the Bureau of Animal Industry (BAI) 

through the NMIC. 

1.3 All Meat Control Officers or Meat Inspectors conducting meat inspection work shall be 

trained by the National Meat Inspection Commission (NMIC). They shall be kept abreast of 

the Implementing rules and guidelines of RA 8485 otherwise known as the ìAnimal Welfare 

Actî. 

SECTION 2. Definitions of Terms 

2.1 Deputized Animal Welfare Officer - refers to a person deputized by the Bureau of 

Animal Industry to monitor the welfare of the animals before and during slaughter process. 

2.2 Management - refers to the individual or group of persons managing the whole operation 

of the dressing plant.


2.3 Machine Operator - refers to a technical personnel operating machineries and equipment 

inside the poultry dressing plant. 

2.4 Stunned Chicken - refers to a chicken which was subjected to stunning. The typical 

signs of effective stunning are: the chickenís eyes are wide open, legs are rigidly extended, 

the head is arched toward its back, wings are slightly spread and close to the body displaying 

short burst of flapping, and tail feathers are turned up over its back. 

SECTION 3. Requirements for Poultry Dressing Plants - 

3.1 Holding accommodations for birds awaiting slaughter shall be provided with proper ventilation 

and protection from adverse weather. 

3.2 Unloading arrangements shall be provided. 

3.3 The system of moving loose crates containing birds from the delivery vehicles to the point 

at which the birds are removed from the crates shall be in a manner that avoid any jolting or 

undue tilting. 

3.4 The unloading and shackling arrangements shall be designed to reduce to a minimum the 

physical effort required of the personnel and to lessen stress to the birds. 

3.5 The positioning of the shackle line shall ensure that suspended birds are kept well clear 

of all obstructions even when their wings are outstretched. 

3.6 In the whole length of the shackle line up to the point of entry into the scalding tank, the 

presence of the worker is necessary to provide the birds immediate attention when necessary. 

3.7 The speed of the shackle line shall be limited to that which enables the worker to perform 

their tasks efficiently without undue haste and with proper regard for the welfare of the birds. 

3.8 All dressing plants shall have contingency plans to ensure that birds awaiting slaughter 

are not held in excess of the recommended twelve (12) hours time limit. 

3.9 Suffering birds shall be slaughtered without undue delay. 

3.10 All personnel employed in the dressing plant shall be oriented to all aspects of RA 8485. 

3.11 All dressing plants shall be registered with the Bureau of Animal Industry through the 

NMIC with an annual registration fee of P200.00 

SECTION 4. Unloading and Shackling of Birds - 

4.1 Management shall ensure that the operation of removing poultry from crates and hanging 

on shackles is under the direct supervision and constant control of the animal welfare officer. 

4.2 Poultry birds must not be suspended with the head downwards for more than three (3) 

minutes while turkeys for no more than six (6) minutes before slaughter or stunning.

180 


4.3 Operators shall ensure that all loose birds are frequently collected. 

SECTION 5. Stunning and Slitting - 

5.1 Electrical stunning either by rod or water shall be used in poultry slaughter. 

5.2 Electrical stunner shall be used in poultry. Provided, however, that no unstunned chicken 

shall be bled properly. 

5.3 Management shall ensure that the stunning equipment is in good working condition at all 

times. 

5.4 Stunning equipment shall incorporate visual and audible warning devices to detect any 

mechanical and electrical failure. In the case of chickens, the effective stunning current shall 

be provided by the manufacturer and displayed near the device. 

5.5 A back-up stunner shall always be available in case an automatic electrical stunner fails. 

5.6 Birds which are not stunned to the satisfaction of the operator shall be appropriately dealt 

with immediately. 

5.7 Birds shall be bled immediately after they are stunned. 

5.8 A back-up slitter shall be properly positioned at all times. 

SECTION 6. Penal Provisions - Violation of any of the provisions of this Code of 

Practice shall be penalized in accordance with the law. 

SECTION 7. Separability Clause - In case any provision of this Code of Practice is 

declared contrary to law and/or unconstitutional, other provisions which are not affected 

thereby shall continue to be enforced and in effect. 

SECTION 8. Repealing Clause - All Administrative Orders, Rules and Regulations and 

other administrative issuance or parts thereof, inconsistent with the provisions of this Code 

are hereby repealed or modified accordingly. 

SECTION 9. Effectivity - This Code of Practice shall take effect fifteen (15) days after 

publication in a newspaper of general circulation. 

Adopted: 26 Nov. 2001 


Secretary 

RECOMMENDING APPROVAL OF THE CODE OF PRACTICE FOR POULTRY DRESS- 

ING. 

(SGD.) ENRIQUE T. CARLOS 

(PVMA) 

Chairperson


(SGD.) NITA HONTIVEROS-LICHAUCO (SGD.) JOSE Q. MOLINA 

(PAWS) (BAI) 

Vice-Chairperson Vice- Chairperson 

MEMBERS: 

(SGD.) EFREN C. NUESTRO (SGD.) WILFREDO P. RESOSO 

National Meat Inspection Commission Philippine College of Swine Practitioners 

(SGD.) RUTH M. SONACO (SGD.) JOSE V. VALENZUELA 

Agricultural Training Institute Philippine Society of Animal Science 

(SGD.) ABELARDA B. AGULTO (SGD.) PEDRITO O. PERALTA 

Philippine College of Canine Practitioners Philippine Animal Hospital Association 

(SGD.) CONRADO A. FRANCISCO (SGD.) DONA U. TANLIMCO 

Philippine Society for the Prevention of Cruelty Veterinary Practitioners Association 

of Animals of the Philippines 

(SGD.) ELEANOR R. JAVIER (SGD.) MANUEL Q. GOTIS 

Department of Education, Culture and Sports Department of Interior and Local 

Government 

Date Filed: 18 March 2002 

(SGD.) MUNDITA S. LIM 

Protected Areas and Wildlife Bureau 

--o0o-- 

Memorandum Circular No. 1, s. 2002 

Streamlined Procedure in the Issuance/Granting 

of Permits/Licenses, Etc. 

In response to the Presidentís call to reduce bureaucratic red tape in government, the 

Department of Agriculture hereby prescribes the attached standard processing time for 

various permits/licenses granted by BAI, BFAR, BPI, FIDA, NMIC and SRA. 

This Circular shall take effect immediately. 



Secretary 

AGENCY/BUREAU: BUREAU OF ANIMAL INDUSTRY (BAI) 

TYPES OF PERMITS/LICENSES/ PROCESSING NO. OF SIGNATORIES REMARKS 

REGISTRATION TIME 

IMPORTATION 

- Swine & Poultry and Animal Hides 22 min 2 

- Dogs & Cats Wild Exotic Animals 22 min 1 

- Cattle and Horses 22 min 3 

- Meat and Meat Products 22 min 2

182 


EXPORTATION 

- Live Animals, and Other Commodity 22 min 1 

DOMESTIC MOVEMENTS 

- Live Animals, Animal Products and 11 min 1 

By-products 

Licensing of Establishment under RA 

3720 

-Initial 1/ 70 min 3 Requires DENR-ECC-PTO DTI/ 

- Renewal 37 min BIR, Mayorís Permit, Affidavit of 

Technical Consultant and ocular 

inspection of plant/warehouse 

laboratory facilities 

Veterinary Drug and Product Registration 

under RA 3720 

- Intitial 1/ 8 hrs. 3 Requires brand name clearance, 

- Renewal 6 hrs. evaluation and labels declaration 

form, results of analysis and 

technical dossiers: 

- Chemical description 

- Pharmaceutical properties 

- Pre-clinical studies 

- Local studies 

Registration of Establishment and Products 

under RA 1556 

- Initial 1/ 1 hr 3 Requires DENR-ECC-PTO DTI/ 

- Renewal 30 hr BIR, Mayorís Permit, Affidavit of 

Technical Consultant and 

ocular inspection of plant/ 

warehouse laboratory facilities; 

brand name clearance, evaluation 

of label, technical dossiers 

and results of analysis. 

Import Permit and Certification Issuance 

under RAs 3720 and 1556 1/ 1 hr. 3 Valid BAI Registration Government 

Authenticated Certificate 

of Free Sale (CFS), Certificate 

of Good Manufacturing Practice 

(CGMP), Health/Permits, 

Sanitary Permits. 

Registration of Veterinary Biological 

Product 104 days 9 Requires preliminary evaluation, 

quality control testing (sterility, 

safety, potency and efficacy 

tests and local field trial/test 

Importation of Veterinary Biological 

Product 1 hr 3 

Registration of Animal Facilities 12 hours 3 Net of ocular inspection and 

evaluation of establishment be 

done by non-veterinarian but 

technical staff 

Animal Show 3 hrs 2 

1/ With the assumption that application was rightfully accomplished and all requirements are complied with, likewise 

includes transmittal time to all signatories.


Contact Persons: Director Jose Q. Molina 

Bureau of Animal Industry 

Visayas Ave., Diliman, Quezon City 

Tel. No. (02) 927-0971; 926-6883 

Fax No. (02) 928-22429 Email: dir.ba@manila-online.net 

Dr. Ronello Avial - Chief, National Veterinary Quarantine Service 

Tel. No. (02) 925-4343; 928-1778 

AGENCY/BUREAU: BUREAU OF PLANT INDUSTRY (BPI) 

TYPES OF PERMITS/LICENSES/ PROCESSING NO. OF REMARKS 

REGISTRATION TIME SIGNATORIES 

Issuance of Permit to Import 

- low-risk commodities 2-4 hrs 2 Low-risk - country source and 

- high risk commodities 10 mos. 2 commodity had been evaluated 

-fruits 10 mos. 2 for pest and/or covered by bilat- 

-vegetables 8 mos. 2 eral agreement. 

-others 4 -5 mos. 2 High-risk - there is eminent 

danger of introducing harmful 

new pest with the importation of 

new commodity. 

Issuance of Phytosanitary Certificate 30 minutes 1 

(fresh fruits, coconut products, artificial 

plants, cutflowers, seaweeds, copra 

products, dried fruits, sugarcane, bagasse/ 

tops, tobacco leaves/wrappers, wood/wood 

products, plants/planting materials 

Inspection of Imported Plants/Plant 

Products 20 mins 1 Excluding commodity treatment 

required measures if found 

infected which may take longer 

hours prior to release 

Issuance of Domestic Quarantine 

Permit 20 mins. 1 

Contact Persons: Director Blo U. Adiong 

Bureau of Plant Industry 

San Andres, Malate, Manila CIty 

Tel. No. (02) 525-7857; 525-2987; 525-7909 

Fax No. (020) 521-7650 E-mail: bpi@edsamail.com.ph 

Ms. Estrella D. Tuazon - Chief, Plant Quarantine Service 

Tel. No. (02) 523-9132 Fax No. (02) 524-2812 

AGENCY/BUREAU: Bureau of Fisheries and Aquatic Resources (BFAR) 

TYPES OF PERMITS/LICENSES/ PROCESSING NO. OF SIGNATORIES REMARKS 

REGISTRATION TIME 

Permit to Import Fresh/Chilled/Frozen 30 minutes 2 

Fishery Products 

Clearance to Import Live Fresh/Aquatic 

Animals 3-5 days & 

22 min 2 Requires the conduct 

of Import Risk Analysis 

(IRA)

184 


Permit to Export Fresh/Chilled/Frozen 

Fishery Products 30 minutes 2 

Commercial Fishing Vessel License, 

International Fishing Permit and 

Gear Registration 6 hr & 30 min 2 

Issuance of Fishpond Lease Agreement 64 days 2 Requires ocular inspection/ 

validation and survey plans 

ECC 

Contact Persons : Director Malcolm I. Sarmiento 

Bureau of Fisheries and Aquatic Resources 

860 Arcadia Bldg., Quezon Ave., Quezon City 

Tel.No. (02) 372-5057; 373-7452 

Fax No. (02) 372-5048; 373-7453Email: bfar@stream.ph 

Atty. Annalisa Vitug - Chief, Regulatory and Quarantine Divisions 

Tel. No. 372-5046 

AGENCY/BUREAU: Fiber Industry Development Authority (FIDA) 



Grading Baling Establishment (GBE) 30 min 2 Application/processing done at 

License (renewal & original) the FIDA Regional offices. 

Buying Station License 30 min 1 

(renewal & original) 

Trader-Exporter License 30 min 2 


Local Trader License 30 min 2 


Processor License (both local and 

exporter) 30 min 2 


Classifier (both local and exporter) 30 min 1 


Primary Certificate of Fiber Inspection 30 min 1 

Secondary Certificate of Fiber Inspection 15 min 1 

Permit to Transport Fiber 10 min 1 

Commodity Clearance and Transhipment 15 min 2 

Contact Persons: Administrator Cecilia Gloria J. Soriano 

Fiber Industry and Development Authority 

Asia Trust Bank Annex Bldg., 1424 Quezon Ave., Quezon City 

Tel. No. (02) 373-9241; 373-7489 

Fax No. (02) 373-7494 E-mail: fida@pacific.net.ph 

Ms. Nelia Espenilla -OIC, License Division 

Tel. No. (020) 373-7495 

AGENCY/BUREAU: Fertilizer and Pesticide Authority (FPA)




FERTILIZER 

License for Fertilizer Handlers 1-3 days Requires site inspection 

Product Registration 2-3 months 3 Requires review and assessment 

of data by non-in house evaluators 

(including lab tests/verification) 

Experimental Use Permit (EUP) 5 weeks 3 Requires chemical analysis and 

(Local and Imported) assessment of non-in house 

evaluators 

Importation of Fertilizer/Processing 4 hrs 3 

of VAT Exemption Certificate 

PESTICIDE: 

Licensing for Handlers 1-3 days 4 Requires site inspection 

Permits (import and export) 3 days 3 

Certifications 1 day 3 

Pesticide Registration Requires confirmatory 

-Commodity 2-4 mos. 3 analysis, bioefficacy, toxicology 

-Proprietary (new product) 5-9 mos. 3 residue and fate in the environment 

Experimental Use Permit (EUP) 

-EUP IA and IB 2 weeks 3 Requires review and assessment 

-EUP II: Proprietary 

(new product) 6-9 mos. Requires review and assessment 

Commodity 1-2 mos. of data. No in-house consultants/evaluators 

involved. 

- EUP III 2 weeks 

Contact Persons: Fertilizer : OIC-Administrator Norlito R. Gicana - Deputy Executive Director 

Fertilizer and Pesticide Authority 

4/F Bldg., B., NIA Complex, EDSA, Quezon City 

Fax. No. (02) 922-33-64; 9223355; E-mail: fpa_77@yahoo.com 

Pesticide: Dr. Dario Sabularse - Deputy Executive Director 

Tel. No. (020) 9265877/922-3368 

AGENCY/BUREAU: National Meat Inspection Commission (NMIC) 



Inspection of Imported Meat and 

Meat Products 4 1/2 days 3 Requires laboratory analysis 

Meat Plant Accreditation 4 days (new) 3 Requires site inspection and 

evaluation by Central Technical 

2 days (renewal) staff 

Meat Inspection Certificate 4 hours 1 Done 6 hours before slaughter 

ante mortem requires 

laboratory analysis

186 


Laboratory Services 3-7 days 2 

Contact Person: Director Efren C. Nuestro 

National Meat Inspection Commission 

BAI Compound, Visayas Ave., Diliman, Quezon City 

Tel. No. (020) 924-3118 to 19; 924-7971 

Fax No. (02) 924-7973 Email: nmic@netscape.net 

Dr. Jocelyn Salvador - Head, Planning Division 

Tel. No. (020) 924-3119; 920-0425; 921-4473 

AGENCY/BUREAU: Sugar Regulatory Administration (SRA) 



Issuance of Licenses to Sugar Mills 1 hr 3 Authorized official alternate 

Refineries applied to all documents 

Issuance of Certificate of Sugar 1 hr 3 

Requirement of Processors of Sugarbased 

Products 

Issuance of Shipping Permit 20 min 1 

Issuance of Sugar Export Clearance 1 hr 3 

Issuance of Clearances for Withdrawal/ 

Inloading/Outloading for Export Sugar 

Shipment 1 hr 3 

Issuance of Certificate of Exchange 

Authority (CEA) on Swapping of Classes 

of Sugar 

- 1,000 1 day 

- 2,000 2 days 

- 3,000 3 days 3 

- 4,000 4 days 

- 5,000 5 days 

Issuance of Certificate of Verified ìAî 

Export Sugar 

- 1,000 1 day 

- 2,000 2 days 2 

- 3,000 3 days 

- 4,000 4 days 

- 5,000 5 days 

Issuance of Molasses/Muscavado 1 hr 3 

Clearances for Export 

Issuance of Licenses to Sugar/Molasses/ 

Muscavado Traders 1 hr 3 

Issuance of Clearance for Release of 

Imported Sugar 1 hr 3 

Issuance of Certificate of Quota 

Eligibility (CQE) 1 day 3


* Approved by the SRA Sugar Board dated 06 December 2001 

Contact Persons: Administrator James C. Ledesma 

Sugar Regulatory Administration 

Philippine Sugar Center Bldg. North Ave., Quezon City 

Tel. No. (02) 920-2416; 920-4367 

Fax No., (02) 920-4325 E-mail: sraadm@info.com.ph 


Mr. Alexander Cruz - Manager III, Production Control and Regulation Office 

Tel. No. (02) 926-4338 

--o0o-- 

Memorandum Order No. 2, s. 2002 

Temporary Ban on the Importation 

of Fishmeal from Japan 

Whereas, Japanese government thru the Ministry of Agriculture, Forestry and Fisheries 

issued an advisory effective last February 12, 2002 banning the use of fishmeal in the 

production of compound feed for cattle due to its content of meat and bone meal; 

Whereas, the Philippines has issued Memorandum Order No. 16, Series 2001 dated 

September 11, 2001, banning the importation of meat and bone meal from Japan as a 

precautionary measure to prevent the entry of spongiform encepalopathy (BSE); 

NOW, THEREFORE, I LEONARDO Q. MONTEMAYOR, Secretary of Agriculture, by 

the powers vested in me by law, do hereby institute the following emergency measures; 

1. Banning the importation of fishmeal originating from Japan; 

2. Stoppage and confiscation of all shipment of fishmeal into the country of suspected/ 

affected products from Japan by all DA Veterinary Quarantine Officers/Inspectors at all 

major sea/air ports. 


Adopted: 20 February 2002 


Secretary 



Director

188 


DEPARTMENT OF BUDGET AND MANAGEMENT 

Date Filed: 25 January 2002 

Circular Letter No. 2002-2 

Grant of Personnel Benefits to Members and 

Ex-Officio Members of the Board of Directors 

1.0 The Department of Budget and Management has been receiving numerous requests and 

queries from GOCCs and GFIs on the grant of personnel benefits to members and Exofficio 

Members of the Board of Directors, such as Year-End Benefits (YEB), Personnel 

Economic Relief Allowance (PERA), Additional Compensation (ADCOM) and retirement 

benefits notwithstanding the policies and rules issued therefor. 

2.0 To clarify and address issues/requests concerning the same, the following compensation 

policies are hereby reiterated: 

2.1 PERA, ADCOM, YEB and retirement benefits, are personnel benefits granted in 

addition to salaries. As fringe benefits, these shall be paid only when the basic salary is 

also paid. 

2.2 Members of the Board of Directors of agencies are not salaried officials of the 

government. 

2.3 As non-salaried officials they are not entitled to PERA, ADCOM, YEB, and retirement 

benefits unless expressly provided by law. 

2.4 Department Secretaries, Undersecretaries and Assistant Secretaries who serve as 

Ex-officio Members of the Board of Directors are not entitled to any remuneration in line 

with the Supreme Court ruling that their services in the Board are already paid for and 

covered by the remuneration attached to their office. 

3.0 Please be guided accordingly. 



(SGD.) EMILIA T. BONCODIN 

Secretary 

--o0o-- 


Additional Guidelines on the Grant of 

Productivity Incentive Benefit (PIB)


1. Administrative Order 161 dated December 6, 1994 authorizes the grant of PIB effective 

CY 1995 to all appointive officials and employees of government agencies including GOCCs 

and LGUs. 

2. As contemplated, PIB is a financial reward given to government personnel for acceptable 

or exemplary performance, which contributed to the attainment of agency targets and 

goals as evaluated and determined by the head of agency. Performance includes conduct 

and behavior in the discharge of the duties of a public office. 

3. Administrative offense is a breach of official duties and conduct. Offenders have done 

acts inimical to public service or in violation of the law. As such a person guilty of 

administrative offense should not be entitled to PIB or any performance or productivity 

reward. In line therewith the following are not entitled to PIB: 

3.1 Those who were suspended either preventively or as a penalty as a result of an 

administrative charge within the year for which PIB is paid, regardless of the duration; 

3.2 Those who were dismissed within the year; and 

3.3 Those who are absent without official leave (AWOL). 

4. Personnel who were preventively suspended but later exonerated of the charges filed 

against them, and those who are charged and found guilty of administrative offense but 

the penalty meted out is only reprimand, shall be entitled to PIB, provided they: 

4.1 Have at least a satisfactory rating for the two (2) semesters immediately preceding the 

year in which the PIB will be paid; and 

4.2 Have contributed to the productivity of the office/agency as determined by the head of 

the agency. 

5. The above rules shall be in addition to the rules and regulations under the National 

Compensation Circular No. 73 dated December 27, 1994 as supplemented by 73-A dated 

March 1, 1995, Circular Letters No. 3-96 and 2001-6. 

6. This Circular takes effect immediately, provided that agencies which have not yet paid PIB 

for the CY 2000 performance as of the issuance of this Circular, shall be covered by the 

herein rules. 

7. Please be guided accordingly. 



Secretary 

--o0o--

190 



1.0 PURPOSE 

Budget Circular No. 2002-1 

Computation and Funding of Terminal Leave 

Benefits and Monetization of Leave Credits 

To prescribe guidelines on the computation and funding of the Terminal Leave Benefits 

(TLB) and Monetization of Leave Credits (MLC) of government officials and employees. 

2.0 POLICY STATEMENTS 

2.1 The twenty-two (22) working days per month referred to under Section 7 of RA 6758 

shall be used only in determining the daily wage rate of the monthly rates contained in the 

Salary Schedule. 

2.2 Effective January 1, 2002, the computation of TLB and MLC shall be in accordance with 

Memorandum Circular (MC) No. 14, s. 1999 of the Civil Service Commission (CSC). 

3.0 GUIDELINES 

3.1 On the Computation 

3.1.1 Pursuant to Section 40 of CSC MC No. 14 TLB shall be computed as follows: 

TLB = S x D x CF 

Where: TLB = Terminal leave benefits 

S = Highest monthly salary received 

D = Number of accumulated vacation and sick leave credits 

CF = Constant factor which is .0478087 

The constant factor (CF) was derived from this formula: 

Number of months in a year 

----------------------------------------------------------------------------------------- 

No. of days in a year less the sum of Saturdays, Sundays and Legal Holidays 

in a year 

365 = Days in a year 

104 = Saturdays, Sundays in a year 

10 = Legal holidays (as provided under EO 292) in a year 

12 12 

----------------- = ------------- = .0478087 

365 - (104 + 10) 251


Based on the above formula, the equivalent number of days in a month for purposes 

of computation of TLB is 20.91667. 

3.1.2 The monetization of leave credits shall be computed in accordance with the above 

formula. 

3.2 On the Funding Source 

3.2.1 For TLB 

l For NGAs, the cost to implement this Circular in CY 2002 shall be charged 

against the lump-sum appropriation for TLB in the agency budget. Any deficiency 

shall be charged against savings. For CY 2003 onwards, the full requirement for 

TLB as computed under this Circular shall be provided for in the General 

Appropriations Act. 

l For GOCCs, GFIs and LGUs, the cost to implement this Circular in CY 2002 

shall be charged against their respective corporate and local funds appropriated 

for TLB. In case of deficiency, funding shall be charged against their respective 

savings. For CY 2003 onwards, the requirement for TLB under this Circular shall 

be fully provided for in their respective budgets. 

3.2.2 For MLC 

l Funding for MLC shall be charged solely from savings of the entity concerned. 

4.0 RESPONSIBILITY OF THE HEAD OF ENTITY 

The Head of entity concerned shall be held personally liable for any payment of the 

TLB and MLC not in accordance with the provisions of this Circular without prejudice however, 

to the refund of any excess payment by the employee concerned. 

5.0 EFFECTIVITY 

This Circular shall take effect January 1, 2002. 




Secretary 

--o0o-- 


DBM Warning on Fixers

192 


1.0 We have been informed that there are unscrupulous people who offer ìfacilitatingî services 

to government entities or those who have transactions with government. Misrepresenting 

themselves to have links with the DBM and other government officials, these people falsely 

claim to have influence on DBM to release funds or attribute to their own efforts funds that 

have been released. 

2.0 They work for either a percentage of the funds released or say in the choice of contractor 

or supplier for a particular government project or transaction. 

3.0 Please be forwarned. There is absolutely no need for fixers, brokers or facilitators in the 

release of funds. Entertaining these unscrupulous people or resorting to them only limits the 

efficiency of the money government spends for public services. More important, it undermines 

President Gloria Macapagal-Arroyoís efforts to rectify past misdeeds and promote moral 

uprightness in government and society. 

4.0 The Department of Budget and Management (DBM) has operational systems and 

procedures as well as set policies for the release of funds for national government entities, 

government corporations and local government units. 

5.0 For programs and projects that do not need clearance from the Office of the President, 

fund releases are made regularly and are assured to be forthcoming in accordance with 

schedules set by DBM as long as all required supporting documents are in order and submitted 

to the proper DBM office. 

6.0 Fund releases for programs and projects that have to be cleared with the Office of the 

President are made after it has been ensured that there is no violation of any budgetary 

policy or rule and after such request has merited the Presidentís clearance. 

7.0 The DBM will continue to release funds according to budgetary procedures and policy. 

However, the DBM will withhold for investigation funding releases found to have been anomalous 

or influenced by intervention from fixers, brokers and the like. 

8.0 Please report such individuals to the DBM at telephone numbers (02)7351959, 

(02)7354874, (02)7351981; any DBM Regional Office; or the proper law enforcement 

authorities. 

9.0 For information and guidance. 



Secretary


DEPARTMENT OF EDUCATION 


DepEd Order No. 56, s. 2001 

Policy on Educational Field Trips 

In view of queries on the holding of field trips by public schools in the light of the policy 

of no collection of fees during enrolment, the following clarification is being made: 

1. This Office has not issued any circular banning the holding of educational field trips by 

public schools. 

2. Educational field trips can supplement classroom instruction. But this depends on the 

places visited, i.e. cultural, historical and scientific interest such as the National Museum, 

Museo Pambata, provincial/local museums, Science Centrum, Planetarium, zoological/ 

botanical gardens, historical sites/shrines, model manufacturing or technological firms or 

scientific sites. 

3. Recognizing, however that such trips involve certain monetary costs which may be 

unaffordable to students coming from poor families and who therefore are not able to join, 

teachers should refrain from conducting tests based on these field trips. Should it be decided 

that tests will be held based on these field trips, students who were unable to join such trips 

should not be penalized; they shall be given special tests or assignments as substitutes for 

not joining the field trip. 

4. School heads are encouraged to tap external sources such as local government units, 

civic organizations and PTCAs to help fund educational field trips and arrange for group or 

student discounts in order to reduce the burden on students. 

5. Those responsible for organizing the field trips should secure the consent of parents for 

their children to join the field trip since the children are under the stewardship of the school. 

6. Educational field trips should never be used to generate income for the school or for 

school officials/teachers organizing them. Students should only be charged for actual costs 

for transportation, entrance fees and related expenses. 

Immediate and wide dissemination of the foregoing clarification is hereby directed. 



(SGD). RAUL S. ROCO 

Secretary 

--o0o--

194 



Guidelines on the Hiring of Public School Teachers 

1. Attached herewith are the guidelines on the hiring of public school teachers for 

implementation by the Division Offices and elementary and secondary schools. 

2. The Regional Offices are directed to oversee the recruitment, selection and appointment 

of public school teachers to ensure that the most qualified applicants are hired pursuant to 

these guidelines. 

For immediate dissemination and strict compliance. 


January 16 - February 28, 2002 

(SGD.) RAUL S. ROCO 

Secretary 

GUIDELINES ON THE HIRING OF TEACHERS 

1. All school principals (principals, head teachers and teachers-in-charge) should submit to 

the schools division superintendent the duly certified data on the enrolment by grade/year 

and the number of teachers, categorized into nationally paid (i.e. with regular plantilla items) 

and locally paid. 

2. The schools division superintendents shall prepare a list of schools needing additional 

teachers according to priority, one for elementary and another for the secondary level. The 

listing should be based on the Form 3 for SY 2001-2002. 

3. The school principal accepts application letters of teacher applicants. The following 

documents should be submitted together with the application letter. 

a. A photocopy of the LET/Teachers Board Rating and PRC registration/license. 

b. A photocopy of the transcript of records of his/her schooling 

c. Service record, if one has teaching experience 

d. Duly accomplished CS Form 212 in 2 copies with the latest 2î x 2î ID picture 

4. Requests for transfers should also be submitted to the school principal of the school where 

the teacher wishes to be transferred. 

5. The school principal shall create a committee of five to interview the teacher applicants 

within two days from receipt of their application letter. The composition of the committee to 

assist the principal in screening the candidates shall depend on the type of school as follows: 

5.1 For central elementary schools and non-central elementary schools headed 

by either a principal or a head teacher, or teacher-in-charge committee of five


shall be selected by the Principal from among the Grade Level Chairmen who are 

Master Teachers based on subject area concentrations, competence and visible 

creditable demonstrated capability. 

5.2 For elementary schools with six teachers or less (i.e. with no school head), 

the district supervisor shall identify the committee of five to take care of the entire 

group of schools of this type. Contiguous or proximate schools shall be clustered 

to complete the group of five. The district supervisor shall perform the role of the 

school principal under these guidelines. He/she shall compile the applications 

submitted at the school level. 

5.3 For secondary schools with existing department heads, the principal shall 

maintain the four department heads. The department head for Makabayan shall 

be selected from the other four department heads. 

5.4 For secondary schools with no existing department heads, the school principal 

shall designate the members of the committee on the basis of qualifications and 

demonstrated creditable competence. 

5.5 For schools with seven teachers or less, the school principal shall cluster the 

subjects and designate one department head per cluster such as Science and 

Math, English and Filipino, and Makabayan. The school principal shall head the 

committee. Alternatively, small schools shall be attached to the parent school with 

department heads. 

Upon filing of their application letter, the applicants shall be informed of the day, 

time and place for the interview to spare the teacher applicants from making 

unnecessary trips back to the school to inquire about the interview schedule. 

6. The school principal and at least one member of the school selection committee shall 

individually interview each applicant. 

7. The ranking of the applicants without teaching experience shall be based on the following 

factors: 

a. LET/Teachers Board Rating -------------------- 30 points 

b. Interview -------------------- 30 points 

c. Education -------------------- 30 points 

d. Work experience -------------------- 10 points 

NOTE: For the ranking of applicants without teaching experience, please refer to 

Annex A for criteria, weights and the scoring system to be used. 

The rating of each factor is as follows: 

a. LET/Teachers Board Rating ---------------------- 30 points 

A minimum of 15 points shall be given to a LET passer or one with a PRC 

special permit to teach. Additional points will be given on the basis of the LET/ 

Teachers Board Rating as follows:

196 


1) LET Rating 

75 & 76 - 1 pt. 85 & 86 - 6 pts. 94 -11 pts. 

77 & 78 - 2 pts. 87 & 88 - 7 pts. 95 - 12 pts. 

79 & 80 - 3 pts. 89 & 90 - 8 pts. 96 - 13 pts. 

81 & 82 - 4 pts. 91 & 92 - 9 pts. 97 - 14 pts. 

83 & 84 - 5 pts. 93 - 10 pts. 98 & 99 - 15 pts. 

2) Teachers Board Rating 

70 & 71 - 1 pt. 80 & 81 - 6 pts. 90 & 91- 11 pts. 

72 & 73 - 2 pts. 82 & 83 - 7 pts. 92 & 93 - 12 pts. 

74 & 75 - 3 pts. 84 & 85 - 8 pts. 94 & 95 - 13 pts. 

76 & 77 - 4 pts. 86 & 87 - 9 pts. 96 & 97 - 14 pts. 

78 & 79 - 5 pts. 88 & 89 - 10 pts. 98 & 99 - 15 pts. 

b. Work experience - 10 pts. 

The school selection committee should assess work experiences and/or training 

of the applicant which could be useful to teaching. Examples are computer training, 

graduate studies, participation in seminars/conference as resource speaker or 

facilitator, etc. 

c. Interview - 30 points 

Personality ----------------------- 7 pts. 

Professional Knowledge ------------- 12 pts. 

Spoken English ----------------------- 3 pts. 

Written English ----------------------- 3 pts. 

Potential ----------------------- 5 pts. 

------- 

Total ----------------------- 30 pts. 

d. Education - 30 points 

1. Level of Accreditation of Teacher Education Program of School graduated 

from or where teacher education units were acquired (for non-education graduates) 

- 15 points 

- Private colleges and universities (Accreditation undertaken by the Federation of 

Accrediting Agencies of the Philippines or FAAP). Please refer to Annexes B and 

B-1 for accreditation status. 

Level I ---------------- 4 pts. 

Level II ---------------- 8 pts. 

Level III ---------------- 12 pts. 

Level IV ---------------- 15 pts. 

- State colleges and universities (Accreditation undertaken by the Association of 

Accredited Colleges and Universities of the Philippines or AACUP). Please refer 

to Annex C for accreditation status.


Level I ----------------- 6 pts. 

Level II ----------------- 12 pts. 

Level III ----------------- 15 pts. 

2. Applicantís Academic Performance - 15 pts. 

a. Scholastic Achievement 

(Grades in Academic Course) - 8 pts. 

Average performance ----------------- 3 pts. 

Above average performance/ 

Honors in some semesters -------------- 6 pts. 

Consistent honor student ----------------- 8 pts. 

b. Honors Earned Upon Graduation - 7 pts. 

Cum Laude ----------------------3 pts. 

Magna Cum Laude ----------------- 5 pts. 

Summa Cum Laude --------------- 7 pts. 

March 1- 31 2002 

1. The school principal will recommend to the schools division superintendent a ranking 

for the hiring of applicants and certify that the ranking was deliberated upon by the school 

selection committee. 

2. The schools division superintendent shall decide on who among the applicants shall be 

hired and shall inform the school principal accordingly. 

3. The applicant will be informed of his/her employment and of any remaining requirements 

for his/her appointment so that these can be submitted to the division office as soon as 

possible. 

4. The schools division superintendent shall prepare the appointment as soon as all 

requirements have been submitted by the applicant. 

April 1 - 30, 2002 

1. The schools division superintendent shall approve/sign the appointments of the teachers 

to be hired with the date of effectivity of the appointment not earlier than June 3, 2002, the 

first day of school year 2002-2003. A notice on the issuance of new appointments is posted 

at the division office and school campuses. 

2. The appointment shall be forwarded to the Provincial Office of the Civil Service Commission 

for attestation within thirty (30) days of its signing. 

3. The schools division superintendent shall assign a liaison officer to follow up appointments 

at the Civil Service Commission to facilitate action by that office.

198 

May 2002 

June 2002 


In-service training of newly hired teachers shall be conducted 

Newly hired teachers report to their school assignment on the first day of the school 

year. 

NOTE: In filling up a vacancy, the school principal shall be guided by the following: 

1. RA 8190 (Localization Law) 

2. RA 4670 (Magna Carta for Public School Teachers) which provides, among other things, 

that couples or husband and wife should, as much as possible, be assigned in the same 

school. 

3. PD 603 (Child and Youth Welfare Code) which provides, among others, that nursing 

mothers must be assigned to a school nearest her residence to enable her to take care of the 

young child. 

4. To the extent possible transferees from other schools who would like to transfer to the 

school in their place of residence shall be given priority over other new applicants. 

Ranking of Applicants with Teaching Experience 

1. The ranking of the applicants shall be based on the following factors: 

ANNEX A 

a. LET/Teachers Board Rating ----------------------- 30 points 

b. Teaching experience ----------------------- 30 points 

c. Interview ----------------------- 20 points 

d. Education ----------------------- 20 points 

2. The rating of each factor is as follows: 

a. LET/Teacher Board Rating - 30 points 

A minimum of 15 points shall be given to a LET passer or one with a PRC special 

permit to teach. Additional points will be given on the basis of the LET/Teachers 

Board Rating as follows: 

1) LET Rating 

75 & 76 - 1 pt. 85 & 86 - 6 pts. 94 -11 pts. 

77 & 78 - 2 pts. 87 & 88 - 7 pts. 95 - 12 pts. 

79 & 80 - 3 pts. 89 & 90 - 8 pts. 96 - 13 pts. 

81 & 82 - 4 pts. 91 & 92 - 9 pts. 97 - 14 pts. 

83 & 84 - 5 pts. 93 - 10 pts. 98 & 99 - 15 pts. 

2) Teachers Board Rating


70 & 71 - 1 pt. 80 & 81 - 6 pts. 90 & 91- 11 pts. 

72 & 73 - 2 pts. 82 & 83 - 7 pts. 92 & 93 - 12 pts. 

74 & 75 - 3 pts. 84 & 85 - 8 pts. 94 & 95 - 13 pts. 

76 & 77 - 4 pts. 86 & 87 - 9 pts. 96 & 97 - 14 pts. 

78 & 79 - 5 pts. 88 & 89 - 10 pts. 98 & 99 - 15 pts. 

b. Teaching Experience - 30 points 

A minimum of 15 points shall be given to an applicant with any teaching experience. 

Additional points will be awarded on the basis of the length of teaching experience 

as follows: 

1 to 2 mos. - 1 pt. 1 to 2 yrs. - 6 pts. 11 to 12 yrs. - 11 pts. 

3 to 4 mos. - 2 pts. 3 to 4 yrs. - 7 pts. 13 to 14 yrs. - 12 pts. 

5 to 6 mos. - 3 pts. 5 to 6 yrs. - 8 pts. 15 to 16 yrs. - 13 pts. 

7 to 9 mos. - 4 pts. 7 to 8 yrs. - 9 pts. 17 to 18 yrs. - 14 pts. 

10 to 11 mos. - 5 pts. 9 to 10 yrs. - 10 pts. 19 yrs. up - 15 pts. 

c. Interview - 20 points 

Personality --------------------------- 5 pts. 

Professional Knowledge --------------------- 8 pts. 

Spoken English --------------------------- 2 pts. 

Written English --------------------------- 2 pts. 

Potential --------------------------- 3 pts. 

Total ---------------------------- 20 pts. 

d. Education - 20 points 

1. Level of Accreditation of Teacher Education Programs of School graduated 

from or where teacher education units were acquired (for non-education graduates) 

- 10 points 

- Private colleges and universities (Accreditation undertaken by the Federation 

of Accrediting Agencies of the Philippines or FAAP) 

Level I ----------------------------- 2.5 pts. 

Level II ----------------------------- 5.0 pts. 

Level III ------------------------------- 7.5 pts. 

Level IV ----------------------------- 10.0 pts. 

- State colleges and universities (Accreditation undertaken by the Association 

of Accredited Colleges and Universities of the Philippines or AACUP) 

Level I ------------------------------ 4 pts. 

Level II ---------------------------- 8 pts. 

Level III ---------------------------- 10 pts.

200 


2. Applicants Academic Performance - 10 points 

a. Scholastic Achievement 

(Grades in academic course) - 5 points 

Average Performance ------------------- 1 pt. 

Above average performance -------------- 3 pts. 

Consistent Honor Student ---------------- 5 pts. 

b. Honors Earned Upon Graduation - 5 points 

Cum Laude ------------------ 1 pt. 

Magna Cum Laude ----------------- 3 pts. 

Summa Cum Laude ------------------ 5 pts. 


--o0o-- 


Rules on Teacher and Student Uniform 

1. As part of empowering the school principal, uniforms for teachers for School Year 

commencing June 2002 may be prescribed by the principal/school head/administrator after 

consultation with the teachers. Each high school or elementary school is encouraged to 

design its own uniform. This will encourage creativity, esprit de corps and school identification. 

Each school may choose its own color and reasonably priced textile for the teacherís uniform. 

Alternatively, a school may, instead of prescribing a teacherís uniform, decide on merely 

setting norms for proper school attire. In either case the decision on the teacherís uniform or 

proper school attire should be guided by the desire to uphold the dignity of the teachers as a 

professional and civil servant. 

2. For the same reasons, the principal/school head/administrator after consultation with the 

group heads, may prescribe the uniform of the school children. For boys, the pairs of pants 

shall be colored blue or khaki. For girls, an appropriate decent skirt or a similarly colored 

pair of pants shall be selected. No specific textile shall be required. 

The shirts/blouses shall have a common color and shall carry the appropriate identification 

of the school. T-shirts and/or cotton short-sleeved polo shirts or blouses with appropriate 

school identification shall be allowed. 

3. The clothing allowance for CY 2002 shall continue to be released directly in cash to all 

DepEd personnel. Decisions on how and where to procure the teacherís uniform or school 

attire shall be left to the individual teacher or school personnel. 

For immediate dissemination and compliance. 





Secretary 

--o0o-- 

Dep Ed Order No. 3, s. 2002 

On Simple and Austere Graduation Rites 

In line with the governmentís austerity program, we wish to reiterate the Departmentís 

policy on the holding of inexpensive but meaningful graduation rites. School heads are 

reminded to observe the following: 

a. Voluntary contributions for graduations should be minimized and should not exceed 

P200.00. Parents should be informed about the use of any contributions for graduation. In 

private schools, contributions may vary from school to school and may be allowed only in 

consultation with the PTA. 

b. Graduation exercises must be held in the school grounds.Graduation balls compelling 

graduating students to participate and contribute excessive amounts are discouraged. 

c. No extravagant special attire should be required; school uniforms may be used for graduation 

rites. Expenses for any use of togas should be charged to students based on actual cost. 

d. The annual yearbook should likewise be discouraged or be considered non-obligatory. 

2. Immediate dissemination and compliance with this Order is directed. 




Secretary 

--o0o-- 

DepEd Memorandum No. 42, s. 2002 

Clarification on Hiring Guidelines 

In response to several queries with regard to the expected action of the School Division 

Superintendents on the recommendations of the School Principal and School Selection 

Committee, the following clarification is being provided: 

1. The School Principal shall recommend a ranking of the applicants screened at the school 

level. The ranking should have more qualified applicants than the number of teacher positions

202 


allocated to the school by the Division Office. This is intended to provide the Superintendent 

the opportunity to review the choices of the School Principal as well as other candidates 

evaluated by the School Selection Committee to ensure that all applicants were fairly evaluated 

and that there was no arbitrariness in the evaluation. 

2. After having reviewed the ranking submitted by the School Principal, the School Division 

Superintendent is expected to select from among the qualified applicants contained in the 

ranking. He/she shall then inform the School Principal of the decision on who will be hired so 

that the selected applicants will be notified. 

3. If the School Principal disagrees strongly with the decision of the Superintendent, the 

former should immediately inform the latter of his/her objections so that the two officials can 

discuss and resolve this protest at the division level. The School Division Superintendent is 

advised not to resent the objections raised by the School Principal and should view them in a 

constructive manner. The discussion should be guided by the objective of hiring the most 

qualified candidates. 

4. Should the Superintendent and Principal fail to resolve the protest at their level, the issue 

should be elevated to the Regional Director for final decision. The Regional Director is 

advised to watch out for any arbitrariness shown by the Superintendent and/or the School 

Principal in the process of evaluation and selection. Resolution of the protest should be 

expedited in order not to delay the appointment of the selected applicants. The Regional 

Director should inform the School Division Superintendent and School Principal of the final 

decision. 

For immediate dissemination. 

Adopted: 11 Mar. 2002 


(SGD.) RAMON C. BACANI 

Undersecretary 

--o0o-- 

DepEd Memorandum No. 40, s. 2002 

Clarifications to the Guidelines on the 

Hiring of Public School Teachers 

For the information and guidance of all concerned, the following are the clarifications 

to the Guidelines on the Hiring of Public School Teachers issued through DepEd Order No. 

2, s. 2002: 

1. A teacher-applicant who has not received his LET report of ratings may submit, in lieu of 

the required LET report of ratings, a certification from PRC stating that he has passed the 

LET. The certification should state the date of the examination, the rating obtained and 

whether it is for elementary or secondary level. He should also submit the stub of his PRC 

oath form or a certification of his PRC registration which shows his license number.


2. To determine whether the scholastic achievement of a teacher-applicant is average or 

above average, please refer to the transcript of records where the assigned ratings for 

average/above average performance is indicated. 

3. Teaching experience may be under provisional or permanent status and may be from 

public or private school. 

4. Practice teaching is not a requirement for appointment to a teacher position. 

5. Ranklist prepared by the school principal should be submitted directly to the Schools 

Division Superintendent and need not pass through the Public Schools District Supervisor. 

6. A teacher-applicant who graduated from a school which is not in the list of accredited 

schools (Annexes B, B-1 and C, DepEd Order No. 2, s. 2002) shall not receive points for 

level of accreditation under education. 

7. Institutions listed in Annex B-1 all have an accreditation level of Level III regardless of their 

accreditation level found in Annex B. 

8. Pending clarification from CHED, external campuses of SUCs shall be assumed to have 

the same accreditation level as that of the main campus for purposes of the scoring system. 

9. Additional/updated listing of SUCs accreditation is enclosed. Only those SUCs with changes 

in their accreditation level compared to those found in Annex C have been included in this 

updated list. 

For immediate dissemination. 

Adopted: 06 Mar. 2002 

DEPARTMENT OF ENERGY 



(SGD.) RAMON C. BACANI 

Undersecretary 

Rules and Regulations to Implement Republic Act No. 9136, 

Entitled ìElectric Power Industry Reform Act of 2001î * 

(*Text Available at Office of the National Administrative Register, 

U.P. Law Complex, Diliman, Quezon City)

204 


(SGD.) VICENTE S. PEREZ, JR. 

Secretary 

APPROVED BY THE JOINT CONGRESSIONAL POWER COMMISSION 

(SGD.) SEN. RENATO L. CAYETANO (SGD.) REP. ALIPIO CIRILO V. BADELLES 

Co-Chairman, Senate Panel Co-Chairman, House of Representatives 

(SGD.) SEN. JOHN S. OSMENA (SGD.) REP. FLORENCIO B. ABAD 

Vice-Chairman Vice-Chairman 

(SGD.) SEN. FRANCIS N. PANGILINAN (SGD.) REP. RUY ELIAS C. LOPEZ 

Member Member 

(SGD.) SEN. SERGIO R. OSMENA III (SGD.) REP. AUGUSTO H. BACULIO 

Member Member 

(SGD.) REP. FAYSAH MANIRI-RACMAN DUMARPA 

Member 

(SGD.) REP. CONSTANTINO G. JARAULA 

Member 

DEPARTMENT OF ENVIRONMENT AND NATURAL 

RESOURCES 


Administrative Order No. 2001-35 

Guidelines in the Declaration and Establishment of 

Communal Extraction Area for Sand, Gravel, 

Ordinary Earth and/or Related Materials in Each 

Province or Highly Urbanized Independent Component 

City for Housing And/Or Other Personal Construction Needs 

Pursuant to Article XII of the Philippine Constitution, Section 8 of Republic Act (RA) 

No. 7942, otherwise known as the ìPhilippine Mining Act of 1995î, Section 138 of RA No. 

7160, otherwise known as the ìLocal Government Code of 1991,î and the policy of the 

Department of Environment and Natural Resources (DENR) for equitable sharing of mineral 

resources, the following guidelines in the declaration and establishment of communal extraction 

areas for sand, gravel, ordinary earth and/or related materials in each province or highly 

urbanized independent component city for housing and/or other personal construction needs 

of the local people are hereby issued. 

SECTION 1. Basic Policy and Objectives - It is the policy of the Government to 

alleviate poverty for the enhancement of the quality of life. The Government recognizes that 

one way of attaining this policy is by providing the basic raw materials for concrete housing 

and/or other personal construction needs to local people.


The following are the objectives of this Order: 

a. To provide equitable access to raw materials for concrete housing and/or other 

personal construction needs; 

b. To outline the mechanism in the declaration and establishment of communal extraction 

areas for sand, gravel, ordinary earth and/or related materials in each province or highly 

urbanized independent component city; 

and 

c. To ensure the sustainable use of sand, gravel, ordinary earth and/or related materials; 

d. To encourage the use of housing materials other than wood/wood products. 

SECTION 2. Definition of Terms - 

For the purpose of this Order, the following terms whether in singular or plural shall 

mean: 

a. Boulders - rock fragments larger than 256-millimeter diameter; 

b. Board - refers to the Provincial/City Mining Regulatory Board. 

c. Cobbles - rock fragments ranging in size from 64 millimeters to 256 millimeters. 

d. Communal Sand, Gravel, Ordinary Earth and/or Related Materials Extraction Area - an 

area declared and established by the Board as technically viable for the extraction of sand, 

gravel, ordinary earth and/or related materials for housing and/or other personal construction 

needs. 

e. Extraction - the act or process of taking, excavating or removing sand, gravel, ordinary 

earth and/or related materials. 

f. Gravel - mixture of loose and unconsolidated rock fragments whose particle size ranges 

from 2 millimeters to 256 millimeters. 

g. Ordinary earth - refers to ordinary soil 

h. Pebbles - rock fragments ranging in diameter from 2 millimeters to less than 64 millimeters. 

i. Permit Holder - any individual Filipino citizen who engages, under the terms and conditions 

of the permit, in the communal extraction of sand, gravel, ordinary earth and/or related 

materials. 

j. Related Materials - collective name of boulders, cobbles, and pebbles. 

k. Sand - loose and unconsolidated particles of rocks ranging in diameter from 0.0625 

millimeter to less than 2 millimeters. 

l. Secretary - refers to the Secretary of the Department of Environment and Natural Resources.

206 


m. Unified Environmental Compliance Certificate - refers to the document issued by the 

Environmental Management Bureau Regional Office certifying that based on the representation 

of the Provincial/City Government concerned, the proposed Communal Extraction Area will 

not cause any significant negative environmental impact and that the concerned Local 

Government Unit is committed to implement all the mitigating measures stated in the approved 

Project Description. 

SECTION 3. Declaration of Communal Extraction Area for Sand, Gravel, Ordinary 

Earth And/Or Related Materials - The Provincial/City Mining Regulatory Board (Board) 

created under RA No. 7076 shall have the authority to declare and set aside suitable Communal 

Extraction Area for Sand, Gravel, Ordinary Earth and/or Related Materials (Communal 

Extraction Area) with the endorsement of the Provincial Governor/City Mayor concerned for 

approval by the Secretary in any of the following areas: 

a. Public lands, subject to consent of any existing right holder; 

b. Private lands, subject to consent of landowners; 

c. Ancestral lands/domains, with free and prior informed consent from the indigenous 

cultural communities concerned; and/or 

d. Areas covered by existing mining permits, contracts or leases, or mining right applications, 

which do not include sand, gravel and or alluvial gold in the minerals applied 

for extraction, subject to prior notification of the parties concerned: Provided, That 

areas covered by existing mining permits, contracts or leases, or mining right 

applications where minerals to be extracted include sand, gravel and/or alluvial gold 

shall be subject to prior consent of the parties concerned. 

The maximum Communal Extraction Area that the Board may declare at any one time 

shall not be more than five (5) hectares in any one municipality/city: Provided, That a larger 

Communal Extraction Area in any municipality/city may be allowed, subject to the approval 

of the Secretary. 

SECTION 4. Procedure in the Declaration of Communal Extraction Area - The 

following procedure shall be observed in the declaration of a Communal Extraction Area: 

a. Filing of Petition/Request from the Local Government Unit (LGU) concerned or any 

interested parties for declaration of a Communal Extraction Area, to the concerned Board. 

The Petition/Request shall be accompanied by a sketch plan/map of the proposed area 

showing its corresponding technical descriptions and boundaries, and private lots, if any; 

b. Evaluation of the area as to its technical viability by a team composed of representatives 

from concerned Mines and Geosciences Bureau (MGB) Regional Office, Environmental 

Management Bureau (EMB) Regional Office and LGU. Where necessary, other areas 

technically viable as Communal Extraction Area may be identified by the team; 

c. Issuance of Notice of Petition for Declaration of Communal Extraction Area by the Board 

to permittees, permit holders, operators, contractors landowners, MGB and concerned 

government agencies, indigenous cultural communities and other stakeholders, for clearance 

or consent, as the case may be. The Board shall be responsible for securing the said 

clearance or consent;


d. Posting of the Notices on the concerned Provincial Hall, City/Municipal Hall, Barangay 

Hall, and bulletin boards of the MGB Regional Office, DENR Provincial Environment and 

Natural Resources Office (PENRO), and DENR Community Environment and Natural 

Resources Office(CENRO) for a period of two (2) consecutive weeks, after which the 

concerned agency/entity shall issue the corresponding certification as to the completion of 

posting of the Notices. Expenses for posting shall be shouldered by the concerned Province/ 

City; 

e. Issuance of a certification by the concerned Board as to any adverse claim, protest or 

opposition lodged before it; 

f. Declaration of Communal Extraction Area by the Board; 

g. Approval of the Declaration of Communal Extraction Area by the Secretary upon 

endorsement by the Provincial Governor/City Mayor concerned; and 

h. Approval of the Declaration of Communal Extraction Area by a licensed Geodetic Engineer, 

and approval of the pertinent Survey Plan by the Board. 

SECTION 5. Procedure in Case of Opposition/Protest - Any adverse claim, protest or 

opposition to the Petition/Request that an area be declared as Communal Extraction Area 

shall be filed with the Board within fifteen (15) days after the last date of posting of the 

Notices. 

The Board shall act on the adverse claim, protest or opposition within thirty (30) days 

after it is submitted for resolution. The decision of the Board may be appealed within fifteen 

(15) days from receipt thereof to the Secretary whose decision, in turn, is final and executory. 

No adverse claim/protest/opposition or appeal shall be accepted by the Board or the Office 

of the Secretary, respectively, unless a docketing fee is paid. 

SECTION 6. Environmental Compliance Certificate Requirements - Extraction and 

related activities in the Communal Extraction Area shall be covered by the Environmental 

Compliance Certificate (ECC) requirements. 

For the above purpose, the concerned Provincial/City Government may, prior to the 

declaration of Communal Extraction Area, file an application together with the Project 

Description and other requirements for a unified ECC covering the Communal Extraction 

Area with the concerned EMB Regional Office. 

SECTION 7. Qualification Requirements - A Communal Extraction Permit for the 

extraction of sand, gravel, ordinary earth and/or related materials within the declared Communal 

Extraction Area shall be issued by the concerned Provincial Governor/City Mayor only upon 

recommendation of the Board, to any individual Filipino citizen who is a bonafide resident of 

his/her province/city in need of such materials not exceeding fifty (50) cubic meters for 

housing and/or other personal construction needs. 

Applications shall be filed with the Board concerned through the Environment and 

Natural Resource Office (ENRO) of the concerned Province/City together with the following 

documents:

208 


a. Duly accomplished application form (Annex A); 

b. Barangay Certificate that the applicant is a bonafide resident of the barangay concerned 

for a period of at least six (6) months and in need of sand, gravel, ordinary 

earth and/or related materials for housing construction/improvement/repair purposes 

and that such construction/improvement/repair had been cleared or given 

clearance by the concerned barangay or the Municipal Engineerís Office; and 

c. Proof of payment of application fee from the concerned Province/City. 

SECTION 8. Terms and Conditions of the Communal Extraction Permit - The following 

terms and conditions shall be incorporated in the Communal Extraction Permit: 

a. The extraction of sand, gravel, ordinary earth and/or related materials shall be conducted 

within the limits of the permit area as determined by the Board; 

b. The permit shall be for the permit holderís exclusive use and shall be non-transferable; 

c. The materials authorized to be removed shall be strictly for the permit holderís housing 

and other personal construction needs and in no case shall the same be disposed of 

commercially, otherwise persons responsible thereof shall be liable for prosecution under 

appropriate law; 

d. The permit shall be for a non-renewable period of sixty (60) days or until such time that the 

total volume specified therein have been extracted, whichever comes first; 

e. No extraction, removal or disposition of sand, gravel, ordinary earth and/or related materials 

shall be allowed within a distance of one (1) kilometer from the boundaries of reservoirs and 

of any public/private structures, unless prior clearance of the agency/entity concerned is 

obtained. No extraction, removal or disposition of materials shall likewise be allowed in 

offshore areas within one thousand five hundred (1,500) meters from the mean low tide level 

and two hundred (200) meters from the same mean low tide level along the beach; 

f. Prior to the transport of sand, gravel, ordinary earth and/or related materials, the permit 

holder shall pay the Government, through the concerned Provincial/City Treasurer, an extraction 

fee/tax that may be imposed by the province/city through an ordinance; 

g. The permit shall, at all times, provide the transporter or truck driver engaged in hauling of 

the materials extracted a certified true/xerox copy of the permit, delivery receipt and proof of 

payment of extraction fee/tax as deemed applicable, for inspection purposes. Any such 

materials transported and disposed of not accompanied by the corresponding permit, delivery 

receipt and proof of payment of extraction fee/tax as deemed applicable, shall be confiscated, 

including the tools, equipment and conveyance used, in favor of the Government; 

h. The permit holder shall keep a record indicating therein the date of extraction, quantity/ 

volume and value of materials extracted from the permit area, as well as the corresponding 

amount of fees/taxed paid, if any; 

i. The permit holder, upon expiration of his/her permit, shall submit to the Board or its duly 

authorized representative sworn report stating the total quantity and value of materials extracted 

and amount of fees/taxes paid, if any;


j. The permit holder shall immediately stop extracting materials the moment artifacts are 

found. He/she shall notify the Director of National Museum of such findings, in which case, 

the extraction activities shall be placed under the supervision of the National Museum until 

said artifacts are recovered; 

k. The statements made in the application form and pertinent documents or those made later 

in support thereof shall be considered as conditions and essential parts of the permit and 

any misrepresentation contained therein shall be a cause for the suspension/revocation of 

the permit; 

l. The permit holder shall assume full responsibility and shall be liable for damages to properties 

that may be occassioned by his/her extraction activities under the permit; 

m. The permit holder shall be liable or responsible for any violation of the terms and 

conditions of the ECC within the permit area; 

n. The permit may be suspended or revoked at anytime by the Provincial Governor/City 

Mayor concerned upon recommendation of the Board when public interest so requires or for 

ecological reasons or upon failure of the permit holder to comply with the terms and conditions 

stipulated under the permit and the ECC; 

o. The extraction of materials outside the permit area and disposing of the same shall be a 

ground for filing a case for theft of minerals; and 

p. The permit holder shall comply with the other conditions as the Provincial Governor/City 

Mayor concerned may impose upon recommendation of the Board. 

SECTION 9. Monitoring of Extraction Activities - The ENRO concerned shall be 

responsible for the proper implementation of this Order. Upon request of the concerned 

Provincial Governor/City Mayor, the MGB and/or EMB Regional Office(s) may extend the 

necessary assistance to effectively implement this Order. 

The ENRO concerned shall monitor strictly the permit holderís compliance with the 

terms and conditions of the permit and shall ensure that the extraction and transport of 

materials shall be properly covered by pertinent documents pursuant to the provisions of this 

Order. It shall likewise require the permit holder to regularly submit a report on the volume 

and value of materials extracted and transported, supported with documentary evidence, and 

provide a copy thereof to the concerned MGB Regional Office. 

SECTION 10. Reversion of Communal Extraction Area - The Secretary, upon 

recommendation of the Board, shall withdraw the Declaration of the Communal Extraction 

Area when it can no longer be technically viable for operation or when the safety, health and 

environmental conditions warrant. 

SECTION 11. Penal Provision - Violator of any provision of this Order shall be penalized 

in accordance with the penalties imposed herein or under the existing applicable laws. 

SECTION 12. Repealing Clause - This Order amends and/or revokes other Orders, 

rules and regulations inconsistent herewith.

210 


SECTION 13. Effectivity - This Order shall take effect fifteen (15) days after its complete 

publication in a newspaper of general circulation and fifteen (15) days after registration with 

the Office of the National Administrative Register. 



(SGD.) HEHERSON T. ALVAREZ 

Secretary 

--o0o-- 

DENR Administrative Order No. 2001-34 

Implementing Rules and Regulations of Republic Act 9003* 


U.P. Law Complex, Diliman, Quezon City) 

Date Adopted: 20 Dec. 2001 


(SGD.) HEHERSON ALVAREZ 

Secretary 

--o0o-- 

Administrative Order No. 2002-04 

Rules and Regulations Governing the Issuance of Permits for 

Treasure Hunting, Shipwreck/Sunken Vessel Recovery and 

Disposition of Recovered Treasures/Valuable Cargoes, 

Including Hoarded Hidden Treasures 

Pursuant to Section 4(8), Chapter 1, Title XIV, Book IV of the Administrative Code of 

1987 and Executive Order No. 35 dated 17 September 2001 entitled, ìTransferring the Function 

of Issuing Licenses or Permits for Treasure Hunting and Shipwreck Recovery from the 

Office of the President to the Department of Environment and Natural Resourcesî, the following 

rules and regulations are hereby promulgated for the guidance of all concerned: 

SECTION 1. Declaration of Policy - It is hereby declared to be the policy of the State 

that the discovery/recovery of hidden treasures, shipwrecks/sunken vessels and/or the valuable 

cargoes found therein and their disposition shall be undertaken under the full control and 

supervision of the State in order to ensure the protection of interest of the Government, 

rehabilitation of disturbed areas and the preservation of the important cultural properties 

and national cultural treasures.


SECTION 2. Scope and Coverage - This Administrative Order shall govern the issuance 

of Permits for the following: 

a. Treasure hunting activities in Government land or private land; 

b. Shipwreck/sunken vessel recovery activities; and 

c. Disposition of recovered hidden treasures or things of value hoarded in secret/undisclosed 

places prior to the effectivity of these rules and regulations. This includes the transport and/ 

or sale of hoarded gold bars, gold coins, platinum, silver, nickel babbits, jewelries, gemstones, 

etc., or the so-called ìYamashita Treasuresî. 

This Administrative Order, however, does not cover the issuance of Permits for the 

discovery/recovery of hidden treasures, shipwrecks/sunken vessels recovery exclusively for 

materials of cultural and historical values, such as objects of arts, archeological artifacts, 

ecofacts, relics and other materials embodying the cultural and natural heritage of the Filipino 

nation, as well as those of foreign origin, which shall be governed by Republic Act No. 8492, 

otherwise known as the National Museum Act of 1998. 

SECTION 3. Objectives - The objectives of this Administrative Order are: 

a. To rationalize the system of evaluation of applications for Treasure Hunting and Shipwreck/ 

Sunken Vessel Recovery Permits; and 

b. To provide the appropriate guidelines for hunting hidden treasures and disposition thereof, 

including recovery of shipwreck/sunken vessels and valuable cargoes therein, to protect the 

interest of the Government and to preserve the cultural heritage of the Filipino people through 

the preservation and protection of national cultural treasures. 

SECTION 4. Definition of Terms - As used in and for purposes of these rules and 

regulations, the following terms shall mean: 

a. Area Clearance - refers to a clearance issued by the concerned agency/ies allowing an 

applicant to conduct treasure hunting or shipwreck/sunken vessel recovery activities as 

shown in the submitted technical and environmental work programs. 

b. Artifacts - refers to articles that are products of human skills or workmanship, especially 

in the simple product of primitive arts or industry representing past eras or periods. 

c. Bureau - refers to the Mines and Geosciences Bureau. 

d. Department - refers to the Department of Environment and Natural Resources of the 

Republic of the Philippines. 

e. Digging - refers to the process or activities of excavating hidden treasures buried 

underground for years or centuries. 

f. Director - means the Director of the Mines and Geosciences Bureau. 

g. Environmental Compliance Certificate - refers to a document issued by the Secretary 

or the concerned Regional Executive Director of the Department of Environmental and Natural 

Resources certifying that based on the representation of the proponent and the preparer, the

212 


proposed project or undertaking will not cause significant negative environmental impact and 

that the proponent is committed to undertake all the mitigation measures stated in the Initial 

Environmental Examination. 

h. Environmental Work Program - refers to a process of predicting the likely environmental 

consequences of implementing a project or undertaking and designing appropriate preventive, 

mitigating and enhancement measures. 

i. Environmental Impact Assessment - refers to a comprehensive and strategic management 

plan to achieve the environmental objectives, criteria and commitments including protection 

and rehabilitation of the disturbed environment during and after the treasure hunting or 

shipwreck/sunken vessel recovery. 

j. Hidden Treasure - refers to any hidden and unknown deposit of mineral products, money, 

jewelry, or other precious objects, the lawful ownership of which does not appear. 

k. Initial Environmental Impact Examination (IEE) - refers to the document required of 

proponents describing the environmental impact of and mitigation and enhancement measures 

for projects or undertakings located in an Environmentally Critical Area. 

l. Permit - refers to the Permit issued for Treasure Hunting or Shipwreck/Sunken Vessel 

Recovery. 

m. Permit Holder - refers to a holder of a Permit for Treasure Hunting or Shipwreck 

Recovery. 

n. Private Land - refers to titled land belonging to any private person or entity which 

includes alienable and disposable land being claimed by a holder, claimant, or occupant who 

has already acquired a vested right thereto under the law, although the corresponding 

certificate or evidence of title or patent has not been actually issued. 

o. Relics - refers to objects possessing cultural properties which, either as a whole or in 

fragments, are left behind after the destruction or decay of the rest of its parts and which are 

intimately associated with important beliefs, practices, customs and traditions, periods and 

personages. 

p. Secretary - refers to the Secretary of the Department of Environment and Natural 

Resources. 

q. Shipwreck - refers to a sunken vessel due to acts of war or of rough sea conditions or 

maritime accident which possesses treasures and valuable cargoes. 

r. Shipwreck Recovery - involves any and all underwater activities such as but not limited to 

surveying, locating and exploring, salvaging and recovery of sunken vessels and all cargoes 

and other valuable items therein, including the process of securing, preservation, 

documentation and disposition of the salvaged or recovered valuables. 

s. Technical Work Program - refers to a detailed outline of activities and financial plan to be 

followed in the treasure hunting or shipwreck/sunken vessel recovery.

January - March 2002 National Administrative Register 213 

t. Treasure Hunting - refers to any and all inland activities such as but not limited to locating, 

digging or excavating, securing, transporting and disposition of recovered treasures. 

u. Site - refers to the actual ground location of diggings, excavations or shipwreck/sunken 

vessel recovery activities. 

SECTION 5. Qualification of Applicants - The following persons may apply for a 

Treasure Hunting or Shipwreck/Sunken Vessel Recovery Permit: 

a. In case of an individual - must be a Filipino citizen, of legal age, with capacity to enter into 

contract and capable of conducting Treasure Hunting or Shipwreck/Sunken Vessel Recovery 

activities. 

b. In case of partnership, association or corporation - must be organized or authorized for 

the purpose of engaging in Treasure Hunting or Shipwreck/Sunken Vessel Recovery duly 

registered in accordance with law, and with technical and financial capability to undertake 

Treasure Hunting or Shipwreck/Sunken Vessel Recovery activities. 

SECTION 6. Filing of Application - All applications for Treasure Hunting or Shipwreck/ 

Sunken Vessel Recovery Permit shall be made under oath and shall be filed with the Bureau 

where all legal, technical, financial and operational requirements shall be evaluated. An 

application fee in the amount of Ten Thousand Pesos (PhP 10,000.00) shall be paid to the 

Bureau. 

SECTION 7. Requirements - All applications shall be accompanied by the following: 

a. Legal and Administrative 

1. Prescribed Personal and/or Corporate Information Sheet; 

2. For partnerships, associations or corporations: 

2.1 Certified true copy of Certificate of Registration issued by the 

Securities and Exchange Commission (SEC) or concerned authorized Government 

agency; 

2.2 Certified true copy of Articles of Incorporation/Partnership/ 

Association and By-laws; and 

2.3 Organizational and Operational Structure. 

3. Consent of landowner(s) concerned, when the activities are bound to affect 

private lands or consent of the concerned Government agency, when the activities 

affect Government buildings, dams, watersheds and other areas or sites reserved 

or used for purposes affecting vital national interest, military or naval camps, 

bases and reservations, shrines and other hallowed places; or consent of 

concessionaires when the permit area affects aquaculture or fishery projects or 

beach/marine recreational areas, if applicable; 

4. Area Clearance from concerned Government agency, when the activities affect 

public land or if the area applied for is located near submarine cables, pipelines,

214 


ports and harbors, or within protected seascape/areas or marine parks, if 

applicable; 

5. Certified true copy of Joint Venture Agreement(s), if any; and 

6. Free and prior informed consent of indigenous cultural community in areas 

covered by ancestral land/domain. 

b. Technical 

1. Technical description of the site expressed in terms of latitude and longitude, 

which shall not be more than one (1) hectare for land or twenty (20) hectares for 

bodies of water accompanied by a vicinity and location map duly prepared and 

certified by a licensed Geodetic Engineer: Provided, That a larger area may be 

allowed on a case-to case basis subject to prior approval by the Secretary; 

2. Technical Work Program, including appropriate technology, manpower, 

equipment and cost estimates; 

3. Environmental Work Program, including the nature and extent of predicted 

damages to the environment, if any, and the proposed restoration/rehabilitation 

program and budgetary requirements. This shall be the basis for the assessment 

of the required surety bond for the restoration/rehabilitation works; 

4. ECC, if applicable; and 

5. Curriculum vitae of technical person/s who shall undertake the Technical and 

Environmental Work Programs. 

c. Financial 

1. Latest income/corporate tax return, if applicable; 

2. Certified true copies of latest audited financial statements, if applicable; and 

3. Bank guarantees/references, credit lines, cash deposits, and other proofs or 

evidences of the sources of funding. 

SECTION 8. Evaluation and Approval - Within thirty (30) working days upon payment 

of a non-refundable application fee and submission of the complete requirements to the 

Bureau, the application shall be processed and evaluated by the Technical Review Committee, 

the members of which shall be constituted by the Director. 

The Technical Review Committee shall assist the Director on the following: 

a. Plotting of area applied for in control map(s); 

b. Evaluation and review of applications; 

c. Determination of the amount of surety bond to be posted; 

d. Monitoring of compliance with the permitting terms and conditions; 

e. Recommendation of any measure in connection with authorized activities; and 

f. Preparation of progress report on the said activities. 

If necessary, the evaluation shall include a field assessment/verification of the location, 

public or private structures that may be affected based on the submitted Technical and


Environmental Work Programs. The corresponding field verification fee of Two Thousand 

Pesos (PhP 2,000.00) per man per day shall be paid by the applicant. 

The Director shall endorse the results of the technical evaluation of the application to 

the Secretary for consideration and approval, including the recommendation for the amount 

of surety bond to be posted by the Applicant. 

The Director shall endorse the results of the Technical Evaluation of the application to 

the Secretary for consideration and approval, including the recommendation for the amount 

of surety bond to be posted by the applicant. 

After approval, the Permit shall be forwarded to the Bureau for numbering and releasing. 

SECTION 9. Posting of Bond and Releasing of Permit - A surety bond shall be posted 

by the Applicant upon approval but before the release of the Permit, to answer for and 

guarantee payment to whatever actual damages that may be incurred during locating, digging 

and excavating activities. The Applicant shall post the bond in the Government Service Insurance 

System (GSIS) or any reputable bonding company in case of the formerís failure to provide 

the same. The proof of posting of the surety bond shall then be submitted to the Bureau, prior 

to numbering and release of the Permit to the Applicant. 

SECTION 10. Term of the Permit - The Permit shall have a term of one (1) year 

renewable once for a period of one (1) year. 

In case exploration is required for Shipwreck/Sunken Vessel Recovery with an applied 

area of more than twenty (20) hectares, the Permit shall have a term of two (2) years. The 

first year thereof shall be alloted for exploration while the second year shall be alloted for 

Shipwreck/Sunken Vessel Recovery activities: Provided, That the area for Shipwreck/Sunken 

Vessel Recovery activities shall be reduced to not more than twenty (20) hectares after the 

first year of exploration. 

SECTION 11. Terms and Conditions of the Permit - The Permit shall contain the 

following terms and conditions: 

a. The Permit for Treasure Hunting and/or Shipwreck/Sunken Vessel Recovery shall be for 

the exclusive use and benefit of the Permit Holder and shall not be transferred or assigned. 

b. The Permit Area may be inspected and examined at any time by the Secretary or his 

authorized representative(s). Other concerned agencies may also undertake inspection in 

the Permit Area in coordination with the Department/Bureau. 

c. The boundaries of the Permit Area for Shipwreck/Sunken Vessel Recovery shall be properly 

marked with buoys or beacons visible at reasonable distance to prevent maritime accident. 

d. The Permit Holder shall commence its activities within three (3) months from the issuance 

of the Permit. 

e. The Permit Holder shall not destroy any building or structure erected on the Permit Area 

without the consent of the owner.

216 


f. The Permit Holder shall submit a quarterly activity report detailing thereon the 

accomplishment/progress of work as per submitted and approved Technical Work and 

Environmental Work Programs not later than ten (10) days after the end of each quarter. 

g. The Permit Holder shall immediately notify the Department/Bureau within twenty-four (24) 

hours upon discovery of valuable items in the area applied for. 

h. The Permit Holder shall assume full responsibility and be liable for damages that may be 

occasioned by its operation under the Permit. 

i. Upon the recommendation of the Director, the Secretary may at any time suspend or 

revoke the Permit when in his opinion, public interest so requires or upon failure of the 

Permit Holder to comply with the terms and conditions thereof or of relevant laws, rules and 

regulations and local ordinances without any responsibility on the part of the Government as 

to the expenditures that might have been incurred or as to other damages that might have 

been suffered by the Permit Holder. 

j. The Permit Holder shall conform to applicable laws, rules and regulations. 

k. Withdrawal by the Permit Holder from the Permit Area shall not release it from any and all 

financial, environmental, legal and/or other obligations. 

l. The Permit Holder shall comply with any additional terms and conditions which the Secretary 

or Director may impose, or requirements that the Department or Bureau may thereafter 

prescribe. 

SECTION 12. Valuation and Disposition of Recovered Treasures/Valuable Cargoes - 

Upon discovery of valuable items such as monies, things and article of value, resulting from 

Treasure Hunting and Shipwreck/Sunken Vessel Recovery activities, the National Museum 

shall be called upon to determine whether or not they are considered to have cultural and/or 

historical value. In the event that the items are considered to have historical and cultural 

value, it shall be turned over to the National Museum for appropriate action. Otherwise, the 

same shall be turned over to the Oversight Committee for valuation and disposition. 

All treasures found shall be allowed for export only upon the approval of the National 

Heritage Commission and other concerned Government agencies. 

SECTION 13. Oversight Committee - An Oversight Committee shall be created within 

thirty (30) days from the date of effectivity of these rules and regulations to oversee all the 

diggings, excavations and/or shipwreck recoveries; and to take possession for valuation and 

eventual disposition of all monies, things and articles of value without historical and cultural 

value. The Committee shall be composed of the Secretary or his duly authorized representative 

as the Chairperson; technical personnel from the MGB, National Museum, Central Bank and 

the Permit Holder or his representative as members. A representative from the Philippine 

Coast Guard will be added as a member of the Oversight Committee if the activity involves 

Shipwreck/Sunken Vessel Recovery. 

SECTION 14. Sharing - After an audited report of expenses has been evaluated and 

approved by the Oversight Committee, the sharing of the net proceeds shall be as follows:


a. For Treasure Hunting within Public Lands - Seventy-five percent (75%) to the Government 

and twenty-five percent (25%) to the Permit Holder; 

b. For Treasure Hunting in Private Lands - to be agreed upon among the Government, Permit 

Holder and landowner(s); and 

c. For Shipwreck/Sunken Vessel Recovery - Fifty percent (50%) to the Government and 

Fifty percent (50%) to the Permit Holder. 

SECTION 15. Government Rights - All intellectual property rights arising from the 

documentation or recording of the discovery, recovery and other such activities pertaining to 

Treasure Hunting and/or Shipwreck Recovery by means of still photography, film, video or 

other forms of electronic media, publication of the images generated thereby and other 

forms of reproduction or dissemination of the same, belong to the Government and shall be 

governed by appropriate laws. 

SECTION 16. Confidentiality of Information - All information submitted by the applicants 

in support of their applications and other data supplied by the Permit Holder shall be treated 

as confidential by the Government from the time they are submitted/supplied to the Bureau, 

Department and/or Oversight Committee up to a period of two (2) years from the expiration 

of the Permit. 

SECTION 17. Penal Provision - Any violation on the provisions of these rules and 

regulations shall be penalized in accordance with existing applicable laws, rules and 

regulations. 

SECTION 18. Transitory and Miscellaneous Provisions - All existing Treasure Hunting 

and Shipwreck/Sunken Vessel Recovery Permits previously issued by the Office of the 

President and the Secretary shall remain valid, shall not be impaired and shall be recognized 

by the Government: Provided, That all pending new and renewal applications shall be endorsed 

to the Bureau for processing, evaluation and approval by the Secretary. 

SECTION 19. Separability Clause - If any of the provisions of these rules and regulations 

is held or declared to be unconstitutional or invalid by a competent court, the other provisions 

hereof shall continue to be in force as if the provision so annulled or voided had never been 

incorporated in these rules and regulations. 

SECTION 20. Repealing and Amending Clause - This Administrative Order amends 

and/or revokes other orders, rules and regulations inconsistent herewith. 

SECTION 21. Effectivity - This Administrative Order shall take effect fifteen (15) days 

after its complete publication in a newspaper of general circulation and fifteen days after 

registration with the Office of the National Administrative Register. 


(SGD.) HEHERSON T. ALVAREZ 

Secretary

218 


DEPARTMENT OF FINANCE 


Amendment to the Rules and Regulations to Implement 

the Guidelines on Transferability of Tax Credit Certificates 

Issued Under Article 21 of the Omnibus Investment Code of 1987 

Pursuant to Sec. 9 in relation to Sec. 7 of the Memorandum of Agreement dated 

October 13, 2000 executed by and between the Board of Investments and the Department of 

Finance, the following amendments to the rules and regulations to implement the guidelines 

on transferability of tax credit certificates issued under E.O. 226 are hereby adopted: 

SECTION 1. Section 3 of the said rules and regulations is hereby amended to read as 

follows: 

ìSec. 3. For tax credits on raw materials 

ìa. The transferee should be a BOI-registered producer or trader of raw materials, 

supplies or consumables, or a service provider/exporter, per its registration with 

the BOI, and it supplies said materials, goods or services to the transferor who 

uses said material, goods and services in the production of finished products 

under its own BOI registration. 

ìb. For transfer to supplier of services, the amount to be transferred should be the 

actual billed amount of services rendered or contract amount of services to be 

rendered. 

ìc. For transfer to supplier of materials, supplies or consumables, the materials 

being used as basis for the transfer need not form part of the transferorís finished 

product and may include such materials for own production of inputs and utilities. 

ìd. The amount of tax credit should be limited to an inventory level of three (3) 

months for major materials or six (6) months for minor materials based on the 

transferorís average monthly consumption of the materials being supplied by the 

transferee as obtained from the transferorís audited financial statements for the 

last two (2) years. For this purpose, a material is considered major if its cost 

reaches at least 10% of the transferorís total raw material cost; otherwise it is 

considered minor. 

ìe. For new companies who have not attained two (2) full years of commercial 

operations, the amount of tax credits to be transferred shall be based on the 

consumption rate of the materials derived from transferorís BOI registered capacity, 

subject to the inventory limit set in the preceding paragraph. 

ìf. Projected levels of consumption, for whatever reasons, shall not be accepted 

as basis for allowing the amount of transfer that exceeds the limit set in the 

preceding paragraphs.î


SECTION 2. Section 4 of the said rules and regulations is hereby amended to read as 

follows: 

ìSec. 4. For tax credits on domestic capital equipment 

ì(a) The transferee is registered with BOI as manufacturer (to include assembler) 

of the capital equipment, or component or parts thereof, per its registration with 

the BOI, which it supplies or has supplied to the transferor. 

ì(b) The capital equipment, components or parts subject of the transaction 

being used as basis for the transfer are or will be used by the transferor for the 

production of its BOI registered finished product. Construction materials for civil 

works in the transferorís factory/plant building as well as equipment for selling 

and administrative operation of the transferor shall not qualify for transfer purposes. 

ì(c) The amount of tax credits to be transferred shall be limited to the actual 

cost of acquisition of the capital equipment, component or parts declared as 

basis of the request for transfer.î 

SECTION 3. These amendments shall take effect fifteen (15) days after publication in 

a newspaper of general circulation. 

BOARD OF INVESTMENTS DEPARTMENT OF FINANCE 

(SGD.) GREGORY L. DOMINGO (SGD.) CORNELIO C. GISON 

Vice-Chairman and Managing Head Undersecretary 

Signed in the Presence of: 

(SGD.) LUCITA P. REYES (SGD.) ERNESTO Q. HIANSEN 

OIC Executive Director OIC/Deputy Executive Director 

Board of Investments One-Stop Shop Inter-Agency 

Tax Credit & Duty Drawback Center 

DEPARTMENT OF FOREIGN AFFAIRS 


Department Order No 05-02 

Rules and Regulations on Administrative 

Sexual Harassment Cases

220 


EXPLANATORY NOTE 

Sexual harassment violates the dignity of the person and their right to a humane, just 

and safe work environment, defeats and impairs morale and efficiency in the workplace, and 

violates the fitness and merit principle in the civil service. 

On 05 March 1995, Republic Act No. 7877, otherwise known as the ìAnti-Sexual 

Harassment Act of 1995î took effect, declaring unlawful sexual harassment against women 

and men in the employment, education, and training environment. A person who violates the 

provisions of this law may be liable administratively, civilly, or criminally. 

Section 4(a) of R.A. No. 7877 mandates every employer or head of agency in the 

public and private sectors to promulgate rules and regulations prescribing the procedure for 

the investigation of sexual harassment cases and administrative sanctions therefor. In 

compliance therewith, the Civil Service Commission issued CSC Resolution No. 01-0940 

entitled ìAdministrative Disciplinary Rules on Sexual Administrative Cases.î CSC Resolution 

No. 01-0940 set forth the procedural and substantive requirements to pursue cases involving 

sexual harassment, beginning with the basic issue of what acts constitute sexual harassment 

and under what specific circumstances. The focus is mainly on sexual harassment and 

under what specific circumstances. The focus is mainly on sexual harassment as an 

administrative offense in government offices and agencies as distinguished from sexual 

harassment as a civil or criminal offense. The most important distinction is that in the 

administrative offense of sexual harassment, the requirement of authority, influence, or moral 

ascendancy of the offender found in Section 5 of R.A. No. 7877 is no longer necessary. 

Under Section 58 of CSC Resolution No. 01-0940, all agencies of the government shall 

promulgate its rules and regulations in conformity with said Resolution, in consultation with its 

employees, within six (6) months from the effectivity of said Resolution and those who fail to 

do so shall be charged with Neglect of Duty. In connection to this, Section 87 of the Philippine 

Foreign Service Act of 1991 empowers the Secretary of Foreign Affairs to issue such rules 

and regulations as may be necessary to implement the provisions of the Philippine Foreign 

Service Act as well as the provisions of acts, decrees, and orders which are not inconsistent 

with it. 

Therefore, in view of the foregoing, the following are the rules and regulations defining 

the administrative offense of sexual harassment and prescribing the standard procedure for 

the administrative investigation, prosecution and resolution of sexual harassment cases in 

the Department of Foreign Affairs. 

Rule I. General Provisions 

SECTION 1. Title - These Rules shall be known as the Rules and Regulations on 

Administrative Sexual Harassment Cases. 

SECTION 2. Coverage - These Rules shall apply to all officers and employees of the 

Department of Foreign Affairs in the Home Office, the Regional Consular Officers (RCOs), 

and Foreign Service Posts (FSPs), whether in the Career or Non-Career service, and holding 

any level of position, or possessing permanent, temporary, casual, or contractual status, 

including consultants and detailed or seconded personnel. These Rules shall have suppletory


application to the personnel of attached agencies of the Department of Foreign Affairs in the 

home office and personnel of attached services in the Foreign Service Posts. 

The Chiefs of mission who are commissioned by the President as ambassadors 

extraordinary and plenipotentiary shall not be investigated or separated from the Service 

unless there is an express written directive from the President. 

SECTION 3. Definition of Terms - The terms hereunder shall be construed as follows: 

a. DEPARTMENT means the Department of Foreign Affairs. 

b. PRESIDENT means the President of the Philippines. 

c. SECRETARY means the Secretary of Foreign Affairs. 

d. BFSA means the Board of Foreign Service Administration. 

e. CODI means the Committee on Decorum and Investigation. 

f. OPAS means the Office of Personnel and Administrative Services. 

g. GAD refers to Gender and Development 

h. DISCIPLINING AUTHORITY refers to the President for all officers with the rank of Foreign 

Service Officer IV and higher; and to the Secretary for all other personnel referred into in 

Section 2, Rule I. 

i. RESPONDENT refers to the person who is formally charged by the BFSA. 

j. PERSON COMPLAINED OF refers to the person who is the subject of a complaint but who 

is not as yet formally charged by the BFSA. 

k. PARTY ADVERSELY AFFECTED refers to the respondent against whom a decision in a 

disciplinary case has been rendered. 

l. FSO means Foreign Service Officer 

m. FSSO means Foreign Service Staff Officer. 

n. FSSE means Foreign Service Staff Employee. 

o. CSC means Civil Service Commission 

p. SERVICE means the Foreign Service of the Philippines which includes all personnel of 

the Department in the home office and the Foreign Service, including all persons covered 

under Section 2 of this Rule. 

q. RCOs refer to Regional Consular Offices. 

r. FSPs refer to Foreign Service Posts. 

SECTION 4. Filing - Any affidavits, counter-affidavits, motions, petitions, appeals or 

other pleadings required to be filed under this Department Order may be done so personally, 

by registered mail, or through the diplomatic pouch, if the person required to file is assigned 

abroad. The document or pleading shall be deemed filed on the date of receipt by the proper 

office stamped on the document or pleading, if filed personally; on the date of mailing, as 

shown by the post office stamp on the envelope or the registry receipt; and on the date 

submitted to the person in charge at Post for inclusion in the pouch list, if filed via diplomatic 

pouch. 

SECTION 5. Computation of Time - In computing any period of time prescribed or 

allowed by these Rules, or by order of the CODI, the BFSA, or the disciplining authority, the 

day of the act or event from which the designated period of time begins to run is to be 

excluded and the date of performance included. If the last day of the period, as thus computed, 

falls on a Saturday, a Sunday, or a legal holiday, the time shall not run until the next working 

day.

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Rule II. Definition of Administrative Sexual Harassment 

SECTION 6. For the purpose of these Rules, the offense of administrative sexual 

harassment is an act, or a series of acts, involving any unwelcome sexual advance, request 

or demand for a sexual favor, or other verbal or physical behavior of a sexual nature, 

committed by an officer or employee in a work related, training or education related environment 

of the person complained of. 

a) Work related administrative sexual harassment is committed under the following 

circumstances: 

1. submission to or rejection of the act or series of acts is used as a basis for 

any employment decision (including, but not limited to, matters related to hiring, 

promotion, raise in salary, local or foreign assignment, job security, benefits and 

any other personnel action) affecting the applicant/employee; or 

2. the act or series of acts have the purpose or effect of interfering with the 

complainantís work performance, or creating an intimidating, hostile or offensive 

work environment; or 

3.the act or series of acts might reasonably be expected to cause discrimination, 

insecurity, discomfort, offense or humiliation to a complainant who may be a coemployee, 

applicant, customer, or ward of the person complained of. 

b. Education or training-related administrative sexual harassment is committed against one 

who is under the actual or constructive care, custody or supervision of the offender, or 

against one whose education, training, apprenticeship, internship or tutorship is directly or 

constructively entrusted to, or is provided by, the offender, when: 

1. submission to or rejection of the act or series of acts is used as a basis for any 

decision affecting the complainant, including, but not limited to, the giving of a 

grade, the granting of honors or a scholarship, the payment of a stipend or 

allowance, or the giving of any benefit, privilege or consideration. 

2. the act or series of acts have the purpose or effect of interfering with the 

performance, or creating an intimidating, hostile or offensive academic environment 

of the complainant; or 

3. the act or series of acts might reasonably be expected to cause discrimination, 

insecurity, discomfort, offense or humiliation to a complainant who may be a 

trainee, apprentice, intern, tutee or ward of the person complained of. 

SECTION 7. Administrative Sexual Harassment may take place: 

1. in the Home Office, any of the RCOs, FSPs, or Honorary Consulates; 

2. in any place where the parties were found as a result of work or education or training 

responsibilities or relations; 

3. at work or education or training-related social functions; 

4. while on official business outside the places enumerated in no. 1 above or during work or 

school or training-related travel; 

5. at official conferences, fora, symposia, or training sessions; or 

6. by telephone, cellular phone, fax machine or electronic mail.


Rule III. Forms of Administrative Sexual Harassment 

SECTION 8. The following are illustrative forms of administrative sexual harassment: 

a. Physical 

i. Malicious Touching 

ii. Overt sexual advances 

iii. Gestures with lewd insinuation. 

b. Verbal, such as but not limited to, requests or demands for sexual favors, and lurid 

remarks 

c. Use of objects, pictures or graphics, letters or written notes with sexual underpinnings 

d. Other forms analogous to the foregoing. 

Rule IV. Persons Liable for Administrative Sexual Harassment 

SECTION 9. Any personnel of the Department under Section 2 of Rule I, regardless of 

sex, is liable for administrative sexual harassment when he/she: 

a. directly participates in the execution of any act of administrative sexual harassment as 

defined by these Rules; 

b. induces or directs another or others to commit administrative sexual harassment as defined 

by these Rules; 

c. cooperates in the commission of administrative sexual harassment by another through an 

act without which the administrative sexual harassment would not have been accomplished; 

d. cooperates in the commission of administrative sexual harassment by another through 

previous or simultaneous acts. 

Rule V. Committee on Decorum and Investigation 

of Administrative Sexual Harassment Cases 

SECTION 10. A Committee on Decorum and Investigation shall be created in the 

Home Office, in the RCOs, and wherever practicable, in the FSPs and Honorary Consulates. 

The CODI shall perform the following functions: 

a. Receive complaints of administrative sexual harassment; 

b. Investigate administrative sexual harassment complaints in accordance with the prescribed 

procedure; 

c. Submit a report of its findings with the corresponding recommendation to the BFSA, which 

in turn shall submit its recommendation to the Secretary for decision. In cases involving 

officers with the rank of FSO IV and higher, the Secretary shall not decide on the case but 

shall submit his own recommendation to the President for decision;

224 


d. Lead in the conduct of discussions about administrative sexual harassment within the 

agency or institution to increase understanding and prevent incidents of administrative sexual 

harassment; 

e. Recommend measures to the BFSA that will expedite the investigation and adjudication of 

administrative sexual harassment cases; 

f. Lead in the formulation and implementation of measures to improve physical infrastructure 

to deter administrative sexual harassment using portions of the budget appropriated for the 

GAD Programs; and 

g. Formulate its internal administrative rules within thirty (30) calendar days from its formation; 

provided, that these internal rules shall be subject to approval by the Secretary within ten (10) 

days from submission thereof. 

SECTION 11. Composition - In the Home Office, the CODI shall be composed of the 

following: 

Chair: Director, - OLA - Investigation and Prosecution Division, provided that 

if the person complained of or the respondent has the rank of Chief of 

Mission, the Chair shall be the Assistant Secretary of OLA 

Vice-Chair: Director of OPAS-PMD 

Members: Department GAD focal person 

Representative from DFAPA 

Representative from DFARFA 

Representative from UNIFORS 

Representative from an attached agency, provided that the complainant 

or the person complained of is a personnel of such attached agency. 

As much as practicable, the head of Post or the head of the RCO, the Administrative 

Officer, a representative each of the FSOs and FSSOs/FSSEs shall compose the CODI in 

the RCOs and FSPs. 

When a member of the CODI is the complainant or the person complained of in an 

administrative sexual harassment case, he/she shall be disqualified from being a member of 

the CODI for that particular case. In this case, the Secretary shall appoint the person who 

shall replace the complainant or the person complained of in the CODI. 

Rule VI. Pre-Filing Standard Operating Procedures in 

Attending to Victims of Administrative Sexual Harassment 

SECTION 12. The Pre-Filing Stage - GAD shall adopt mechanisms to provide assistance 

to an alleged victim of sexual harassment which may include counseling, referral to an 

agency offering professional help, and advice on options available before the filing of the 

complaint. 

Rule VII. Standard Procedural Requirements


SECTION 13. The procedural rules provided hereunder are the standard requirements 

in handling an administrative sexual harassment case. 

SECTION 14. Complaint - 

a. The complaint may be filed within office hours with either the Office of the Secretary, with 

OPAS, or with the CODI which has jurisdiction over the person complained of. Upon the 

receipt of the complaint by the Office of the Secretary or OPAS, the same shall immediately 

be transmitted to the CODI which has jurisdiction over the person complained of. 

b. The complaint must be in writing, signed, and sworn to by the complainant. It shall contain 


1. the full name, address, and if applicable, the position of the complainant; 

2. the full name, address, and position of the respondent; 

3. a brief statement of relevant facts; 

4. evidence, in support of the complaint, if any; 

5. a certification of non-forum shopping. 

In the absence of any of the aforementioned requirements, the complaint shall be 

dismissed immediately by the CODI but without prejudice to its re-filing. 

c. Complaints sent by telegram, radiogram, electronic mail or similar means of communication 

shall be considered not filed unless the complainant shall comply with the requirements 

provided in Section 12 (b) within three (3) days from receipt of the notice for compliance. 

d. Withdrawal of the complaint at any stage of the proceedings shall not preclude the CODI 

from proceeding with the investigation where there is obvious truth or merit to the allegations 

in the complaint or where there is documentary or direct evidence that can prove the guilt of 

the person complained of; Provided that, a decision of dismissal by the CODI is deemed to 

be a decision on the merits of the case and with prejudice. 

SECTION 15. Action on the Complaint - Within three (3) days from receipt of a 

complaint that is sufficient in form and substance, the CODI shall require the person complained 

of to file a Counter-Affidavit/Comment under oath within three (3) days from receipt of the 

notice, furnishing a copy thereof to the complainant. Otherwise, the Counter Affidavit/Comment 

shall be considered as not filed. 

SECTION 16. Preliminary Investigation - Within three (3) days from receipt of the 

Counter-Affidavit or Comment under oath, the CODI shall conduct a Preliminary Investigation 

for the purpose of determining whether a prima facie case exists to warrant the issuance of 

a Formal Charge. 

A preliminary investigation involves the ex parte examination of records and documents 

submitted by the complainant and the person complained of, as well as documents readily 

available from other government offices. During the said investigation, the parties are given 

the opportunity to submit additional affidavits and counter-affidavits. 

Thereafter, if necessary, the parties may be summoned to a conference where the 

CODI may propound clarificatory and other relevant questions.

226 


During the preliminary investigation, proceedings before the CODI shall be under strict 

confidentiality. 

SECTION 17. Duration of the Preliminary Investigation - A preliminary investigation 

shall commence not later than three (3) days from receipt of the Counter-Affidavit/Comment 

by the CODI and shall be terminated within fifteen (15) working days thereafter. 

SECTION 18. Preliminary Investigation Report - 

a. Within three (3) working days from the termination of the preliminary investigation, the 

CODI shall submit the Preliminary Investigation Report and the complete records of the case 

to the BFSA. If the CODI recommends that a prima facie case exists, it shall attach a draft 

Formal Charge to the Preliminary Investigation Report. 

b. On the next regular or special meeting of the BFSA after the CODI submits its Preliminary 

Investigation, the BFSA shall deliberate and render a decision on the recommendations of 

the CODI issued by the BFSA during that meeting to the respondent, copy furnished the 

CODI). 

c. If the BFSA determines that a prima facie case is established during the investigation, a 

Formal Charge shall be issued by the BFSA during that meeting to the respondent, copy 

furnished the CODI. 

In the absence of a prima facie case, the complaint shall be dismissed by the BFSA 

during that meeting. 

SECTION 19. Formal Charge - The Formal Charge shall contain a specification of the 

charge(s), a brief statement of material or relevant facts, accompanied by certified true 

copies of the documentary evidence, if any, sworn statements covering the testimony of 

witnesses, a directive to answer the charge(s), in writing under oath in not more than three 

(3) days from receipt thereof, an advice for the respondent to indicate in his/her answer 

whether or not he/she elects a formal investigation of the charge(s) and a notice that he/she 

is entitled to be assisted by a counsel of his/her choice. 

If the respondent has submitted his/her comment and counter-affidavits during the 

preliminary investigation, he/she shall be given the opportunity to submit additional evidence. 

No requests for clarification, bills of particulars or motions to dismiss which are obviously 

designed to delay the administrative proceeding shall be entertained by the CODI or the 

BFSA. If any of these pleadings is filed by the respondent, the same shall be considered as 

part of his/her answer which he/she may file within the remaining period for filing the answer. 

SECTION 20. Answer - The Answer shall be in writing and under oath. It shall be 

specific and shall contain material facts and applicable laws, if any, including documentary 

evidence, sworn statements covering testimonies of witnesses, if there be any, in support of 

respondentís case. It shall also include a statement indicating whether he/she elects a formal 

investigation. The respondent shall submit the answer to the CODI, furnishing a copy thereof 

to the BFSA and to the complainant. Otherwise, the answer shall be deemed not filed.


SECTION 21. Failure to File an Answer - If the respondent fails or refuses to file his/ 

her answer to the formal charge within three (3) days from receipt thereof without justifiable 

cause, he/she shall be considered to have waived his right thereto and formal investigation 

may commence. 

SECTION 22. Preventive Suspension - Upon petition of the complainant or motu 

proprio upon the recommendation of the CODI or the BFSA, at any time after the service of 

the Formal Charge to the respondent, the disciplining authority may order the preventive 

suspension of the respondent during the formal investigation, if there are reasons to believe 

that he/she is probably guilty of the charges which would warrant his/her removal from the 

service. 

An order of preventive suspension may be issued to temporarily remove the respondent 

from the scene of his/her misfeasance and to preclude the possibility of his/her exerting 

undue influence or pressure on the witnesses against him/her tampering of documentary 

evidence on file with his Office. 

In lieu of preventive suspension, for the same purpose, the proper disciplining authority 

may reassign respondent to other Offices. 

SECTION 23. Duration of Preventive Suspension - When the administrative case 

against the respondent under preventive suspension is not finally decided by the disciplining 

authority within the period of ninety (90) days after the date of his/her preventive suspension, 

unless otherwise provided by special law, he/she shall be automatically reinstated into the 

service; provided that when the delay in the disposition of the case is due to the fault, 

negligence or petition of the respondent, the period of delay should not be included in the 

counting of the ninety (90) calendar days period of preventive suspension. Provided further, 

that should the respondent be on approved leave, said preventive suspension shall be deferred 

or interrupted until such time that said leave has been consummated. 

SECTION 24. Remedies from the Order of Preventive Suspension - The respondent 

may file a motion for reconsideration with the disciplining authority within fifteen (15) days 

from receipt of the order of preventive suspension. 

The timely filing of a Motion for Reconsideration shall not stay the execution of the 

order of preventive suspension. Should the Motion for Reconsideration be granted, the 

Respondent shall be entitled to automatic reinstatement without loss of seniority rights and to 

all the salaries and benefits due him during the duration of the nullified order of preventive 

suspension. 

The order of preventive suspension issued by the Secretary may be elevated to the 

Civil Service Commission by way of an appeal within fifteen (15) days from receipt of the 

same. 

SECTION 25. Conduct of Formal Investigation - Although the respondent does not 

request a formal investigation, one shall nevertheless be conducted by the CODI, if it deems 

such investigation is necessary to decide the case judiciously. 

The formal investigation shall be held not earlier than five (5) days nor later than ten 

(10) days from receipt of the respondentís Answer by the CODI. Said formal investigation 

shall be furnished within thirty (30) calendar days from its commencement.

228 


SECTION 26. Pre-Hearing Conference - At the commencement of the formal 

investigation, the CODI may conduct a pre-hearing conference for the parties to appear, 

consider and agree on any of the following: 

a. stipulation of facts; 

b. simplification of issues; 

c. identification and marking of evidence of the parties; 

d. waiver of objections to admissibility of evidence; 

e. limiting the number of witnesses, and their names; 

f. dates of subsequent hearings; and 

g. such other matters as may aid in the prompt and just resolution of the case. 

The parties may submit position papers/memoranda and submit the case for resolution 

based on the result of the pre-hearing conference without any need for further hearing. 

The CODI shall inform the respondent of his right to counsel. 

SECTION 27. Continuous Hearing Until Terminated; Postponement. Hearings shall 

be conducted on the hearing dates set by the CODI or as agreed upon by the parties during 

the pre-hearing conference. 

Where no pre-hearing conference is conducted, the parties, their counsels and 

witnesses, if any, shall be given a notice of at least five (5) days before the first scheduled 

hearing specifying the time, date and place of the said hearing and subsequent hearings. 

Thereafter, the schedule of hearings previously set shall be strictly followed without further 

notice. A party shall be granted only three (3) postponements upon oral or written requests. 

If the respondent fails to appear during the scheduled hearings despite due notice, the 

investigation shall proceed ex parte and the respondent is deemed to have waived his right 

to be present and to submit evidence in his favor during those hearings. 

SECTION 28. Preliminary Matters - At the start of the hearing, the CODI shall note the 

appearances of the parties and shall proceed with the reception of evidence for the 

complainant. 

If the respondent appears without the aid of a counsel, he/she shall be deemed to have 

waived his/her right to counsel. 

Before taking the testimony of a witness, the CODI shall place him/her under oath and 

then take his/her name, address, civil status, age, and place of employment. 

SECTION 29. Appearance of Parties - Any person representing any of the parties 

before any hearing or investigation shall manifest orally or in writing his/her appearance for 

either the respondent or complainant, stating his/her full name and exact address where he/ 

she can be served with notices and other documents. Any pleading or appearance made 

without complying with the above stated requirements shall not be recognized. 

SECTION 30. Order of Hearing - Unless the CODI directs otherwise, the order of 

hearing shall be as follows:


a. The complainant shall present evidence in support of the charge; 

b. The respondent shall then offer evidence in support of his/her defense; 

c. The complainant may then offer rebuttal evidence, and the respondent, sur-rebuttal 

evidence. 

Every witness may be examined in the following order: 

a. Direct examination by the proponent; 

b. Cross-examination by the opponent; 

c. Re-direct examination by the proponent; 

d. Re-cross examination by the opponent; 

A sworn statement of a witness, properly identified and affirmed by the witness before 

the CODI shall constitute his/her direct testimony. 

When the presentation of evidence has been concluded, the parties shall formally offer 

their evidence either orally or in writing and thereafter objections thereto may also be made 

either orally or in writing. Thereafter, both parties may be given time to submit their respective 

memorandum which in no case shall be beyond five (5) days after the termination of the 

investigation. Failure to submit the memorandum within the given period shall be considered 

a waiver thereof. 

SECTION 31. Objections - All objections raised during the hearing shall be resolved 

by the CODI. 

The CODI shall accept all evidence deemed material and relevant to the case. 

SECTION 32. Markings - All documentary evidence or exhibits shall be properly marked 

by letters (A, B, C, etc.) if presented by the complainant and numbers (1,2,3 etc.) if presented 

by the respondent. These shall form part of the complete records of the case. 

SECTION 33. Request for Subpoena - If a party desires the attendance of a witness 

or the production of documents or things, he/she shall make a request for the issuance of the 

necessary subpoena, at least three (3) days before the scheduled hearing. 

SECTION 34. Issuance of Subpoena - The CODI may issue subpoena ad testificandum 

to compel the attendance of witnesses and subpoena duces tecum for the production of 

documents or objects. 

SECTION 35. Records of Proceedings - The proceedings of the formal investigation 

must be recorded either through shorthand or stenotype or by any other method. 

SECTION 36. Effect of the Pendency of an Administrative Case - Pendency of an 

administrative case under this Department Order shall not disqualify respondent for promotion 

or from claiming any personnel benefits. For this purpose, an officer or employee is subject 

of a pending administrative when the BFSA has issued a formal charge against him. 

SECTION 37. Report of CODI to BFSA - Within fifteen (15) days after the conclusion 

of the formal investigation, a report containing a narration of the material facts established 

during the investigation, the findings and the evidence supporting said findings, as well as

230 


the recommendations, shall be submitted by the CODI to the BFSA. The complete records 

of the case shall be attached to the Report of Formal Investigation. 

If no formal investigation has been conducted, the CODI shall nevertheless submit a 

report and a recommendation to the BSFA within fifteen (15) days from receipt of the Answer, 

based on the existing records and evidence. 

The CODI shall attach a draft decision to its Report of Formal Investigation. The draft 

decision shall contain all the material facts and evidence supporting the decision. 

The complete records shall be systematically and chronologically arranged, paged, 

and securely bound to prevent loss. A table of contents shall be prepared. Whoever is 

incharge of the transmittal of the complete records shall be held responsible for any loss or 

suppression of pages thereof. 

On the next regular or special meeting of the BFSA after the receipt of the Report of 

Formal Investigation, the BFSA shall deliberate on the same and render a decision on the 

CODIís recommendation. 

SECTION 38. When Case is Decided - 

1. CASES CONCERNING OFFICERS WITH THE RANK OF FSO IV AND HIGHER: 

The BFSA shall submit a recommendation to the Secretary within five days from the 

regular or special meeting when the decision on the CODIís recommendation was rendered. 

The recommendation of the BFSA shall include the entire records of the case as well as a 

draft recommendation to the President. In turn, the Secretary shall submit a recommendation 

to the President within fifteen (15) days from receipt of the recommendation of the BFSA. 

The President shall render his decision on the case. The applicable rules, regulations, and 

guidelines of the Office of the President shall be strictly observed. 

2. CASES CONCERNING OTHER PERSONNEL: 

The BFSA shall submit a recommendation to the Secretary within five days from the 

regular or special meeting when the decision on the CODIís recommendation was rendered. 

The recommendation of the BFSA shall include the entire records of the case as well as a 

draft decision for consideration of the Secretary. The Secretary shall render his decision on 

the case within thirty (30) days from receipt of the recommendation of the BFSA. 

SECTION 39. Finality of Decisions - A decision rendered by the disciplining authority 

shall be final and executory fifteen (15) days after receipt of the party adversely affected and 

no motion for reconsideration or appeal has been filed. 

Rule VIII. Remedies 

SECTION 40. Filing of Motion for Reconsideration - Any party to the case may file a 

motion for reconsideration with the disciplining authority who rendered the same within 

fifteen (15) days from receipt thereof.


SECTION 41. Grounds for Motion for Reconsideration - The motion for reconsideration 

shall be based only on any of the following: 

a. New and material evidence has been discovered which the respondent could not with 

reasonable diligence have discovered and produced during the material investigation which 

materially affects the decision rendered; 

b. The decision is not supported by the evidence on record; or 

c. Errors of law or irregularities have been committed prejudicial to the interest of the movant. 

SECTION 42. Limitation - Only one motion for reconsideration shall be entertained. 

SECTION 43. Decision of the Secretary on the Motion for Reconsideration - The 

Secretary shall render a decision on the motion for reconsideration within fifteen (15) days 

from receipt thereof. 

SECTION 44. Effect of Filing of Motion - The filing of motion for reconsideration within 

the reglementary period of fifteen (15) days shall stay the execution of the decision sought to 

be reconsidered. 

SECTION 45. Filing of Appeals with the Civil Service Commission - Decisions rendered 

by the Secretary may be appealed to the Civil Service Commission (CSC) within a period of 

fifteen (15) days from receipt thereof. 

A notice of appeal including the appeal memorandum shall be filed with the CSC, copy 

furnished the Secretary. The latter shall submit the records of the case, which shall be 

systematically and chronologically arranged, paged and securely bound to prevent loss, with 

its comment, within fifteen (15) days, to the CSC. The applicable rules, regulations and 

guidelines promulgated by the CSC shall be strictly observed. 

SECTION 46. When Case is Remanded for Violation of Respondentís Right to Due 

Process - If the case on appeal with the CSC is remanded to the Secretary for further 

investigation, the Secretary, through the CODI, shall finish the investigation within three (3) 

calendar months from the date of the receipt of the records from the CSC, unless the 

investigation is delayed due to the fault, negligence or petition of the person complained of, 

or an extension is granted by the CSC in meritorious cases. The period of delay shall not be 

included in the computation of the prescribed period. The Standard Procedural Requirements 

in Rule VII shall be applied. 

Executed decisions of the Secretary shall be considered as preventive suspension 

during the period when the case is remanded for further investigation. 

If, at the end of the stipulated period, the Secretary fails to decide the case, the CSC 

shall vacate and set aside the appealed decision and declare the person complained of 

exonerated of the charge. If the person complained of is deemed or under preventive 

suspension, he shall be immediately reinstated without loss of seniority rights, salaries, and 

benefits. 

SECTION 47. Appeal with the Court of Appeals - Decisions rendered by the President 

and the Civil Service Commission shall be appealable to the Court of Appeals under Rule 43 

of the 1997 Rules of Court.

232 


SECTION 48. Effect of Filing an Appeal - An appeal shall not stay the execution of the 

decision, and in case the penalty is suspension or removal, the respondent shall be considered 

as having been under preventive suspension during the pendency of the appeal, in the event 

he wins the appeal. 

Rule IX. Classification of Acts of Administrative Sexual Harassment 

SECTION 49. Administrative sexual harassment is classifed as grave, less grave and 

light offenses. 

A. Grave Offenses - shall include but are not limited to: 

1. unwanted touching of private parts of the body (genitalia, buttocks, and breast); 

2. sexual assault; 

3. malicious touching; 

4. requesting for sexual favor in exchange for employment, promotion, local or foreign travels, 

favorable working conditions or assignments, a passing grade, the granting of honors or 

scholarships, or the grant of benefits or payment of a stipend or allowance; and 

5. other analogous cases. 

B. Less Grave Offenses shall include but are not limited to: 

1. unwanted touching or brushing against a victimís body; 

2. pinching not falling under grave offenses; 

3. derogatory or degrading remarks or innuendoes directed toward the members of one sex 

or oneís sexual orientation or used to describe a person; 

4. verbal abuse or threats with sexual overtones; and 


C. The following shall be considered Light Offenses: 

1. surreptitiously looking or stealing a look at a personís private part or worn undergarments; 

2. telling sexist/smutty jokes or sending these through text, electronic mail or other similar 

means, causing embarassment or offense and carried out after the offender has been 

advised that they are offensive or embarrasing or, even without such advise, when they are 

by their nature clearly embarassing, offensive or vulgar; 

3. malicious leering or ogling; 

4. the display of sexual offensive pictures, materials or graffiti; 

5. unwelcome inquiries or comments about personís sex life; 

6. unwelcome sexual flirtation, advances, propositions; 

7. making offensive hand or body gestures at an employee; 

8. persistent unwanted attention with sexual overtones; 

9. unwelcome phone calls with sexual overtones causing discomfort, embarassment, offense 

or insult to the receiver; and 


Rule X. Administrative Liabilities 

SECTION 50. The Secretary, Assistant Secretary for Personnel and Administrative 

Services, or the chairman and members of the CODI who fail to act within fifteen (15) days


from receipt of any complaint for administrative sexual harassment properly filed against 

any employee in that office may be charged with Neglect of Duty. 

SECTION 51. Any person who is found guilty of administrative sexual harassment 

shall, after the investigation, be meted the penalty corresponding to the gravity and seriousness 

of the offense. 

SECTION 52. The penalties for light, less grave, and grave offenses are as follows: 

A. For light offenses: 


2nd Offense - Fine or suspension not exceeding thirty (30) days 


B. For less grave offenses: 

1st Offense - Fine or suspension not less than thirty (30) days and not exceeding six 

(6) months 

2nd Offense - Dismissal 

C. For grave offenses: 

1st Offense - Fine or suspension of six (6) months to one (1) year 

2nd Offense - Dismissal. 

SECTION 51. If the respondent is found guilty of two or more charges or counts, the 

penalty to be imposed should be that corresponding to the most serious charge or count and 

the rest shall be considered as aggravating circumstances. 

Rule XI. Duty of OPAS, GAD, and the Foreign Service Institute 

SECTION 53. OPAS, in coordination with GAD and the Foreign Service Institute (FSI) 

shall develop an education and training program for the officials and employees of the 

Department and the members of the CODI to increase understanding about administrative 

sexual harassment, prevent its occurence, and ensure proper investigation, prosecution and 

resolution of administrative sexual harassment cases. 

Rule XII. Forum Shopping 

SECTION 54. Under the same set of ultimate facts, the filing of a complaint based on 

this Department Order shall preclude the filing of another administrative complaint under any 

other law. 

Rule XIII. Prescription 

SECTION 55. The offense of administrative sexual harassment shall prescribe within 

three (3) years from its commission. 

Rule XIV. Repealing Clause 

SECTION 56. Rules and regulations and other issuances or parts thereof inconsistent 

with the provisions of these Rules are hereby repealed or modified accordingly.

234 


Rule XV. Effectivity Clause 

SECTION 57. These Rules shall take effect fifteen (15) days after its publication in the 

Official Gazette and deposit in the National Administrative Register. 


(SGD.) TEOFISTO T. GUINGONA, JR. 

Vice President and Secretary of Foreign Affairs 

DEPARTMENT OF LABOR AND EMPLOYMENT 


Department Order No. 12, s. 2001 

Omnibus Guidelines for the Issuance of 

Employment Permits to Foreign National 

Pursuant to the provisions of Article 5, and 40 of PD 442, as amended, the provisions 

of Rule XIV, Book I of its Implementing Rules and Regulations, Section 17 (5), Chapter 4, 

Title VII of the Administrative Code of 1987, the following Omnibus Guidelines for the issuance 

of Employment Permits are hereby promulgated: 

RULE 1 

Coverage and Exemption 

1. The following shall apply for Alien Employment Permit (AEP): 

1.1 All foreign nationals seeking admission to the Philippines for the purpose of 

employment; 

1.2 Missionaries or religious workers who intend to engage in gainful employment; 

1.3 Holders of Special Investors Resident Visa (SIRV), Special Retirees Resident 

Visa (SRRV), Treaty Traders Visa (9d) or Special Non-Immigrant Visa (47(a)2). 

who occupy any executive, advisory, supervisory, or technical position in any 

establishment; 

1.4 Agencies, organizations or individuals whether public or private, who secure 

the services of foreign professionals to practice their professions in the Philippines 

under reciprocity and other international agreements. 

1.5 Non-Indo Chinese Refugees who are asylum seekers and given refugee 

status


1.6 Resident foreign nationals seeking employment in the Philippines. 

2. Exemption - The following categories of foreign nationals are exempt from securing an 

employment permit in order to work in the Philippines: 

2.1 All members of the diplomatic services and foreign government officials 

accredited by the Philippine government; 

2.2 Officers and staff of international organizations of which the Philippine 

government is a cooperating member, and their legitimate spouses desiring to 

work in the Philippines; 

2.3 Foreign nationals elected as members of the Governing Board who do not 

occupy any other position, but have only voting rights in the corporation; and 

2.4 All foreign nationals granted exemption by special laws and all other laws that 

may be promulgated by Congress. 

Rule II 

Procedures in the Processing of Applications for AEP 

1. All foreign nationals seeking employment in the Philippines under Rule 1 hereof or their 

prospective employers, shall file their applications with the DOLE Regional Office having 

jurisdiction over the intended place of work. 

2. Fees - The applicant shall pay filing, publication and permit fees in the amount of Eight 

Thousand Pesos (P8,000.00) for each application for AEP with a validity of one (1) year. 

Three Thousand Pesos (P3,000.00) shall be charged for every additional year of validity or a 

fraction thereof. 

3. An AEP shall be issued based on the following: 

3.1 Compliance by the applicant employer or the foreign national with the 

substantive and documentary requirements; 

3.2 Determination of the DOLE Secretary that there is no Filipino national who is 

competent, able and willing to do the job for which the services of the applicant is 

desired; 

3.3 Assessment of the DOLE Secretary that the employment of the foreign national 

will redound to national benefit; 

4. Denial of Application for AEP - An application for AEP may be denied based on the 

ground of non-compliance with any of the requirements for issuance of AEP or for 

misrepresentation of facts in the application or submission of falsified or tampered documents. 

Foreign nationals whose applications have been denied shall not be allowed to re-apply in 

any of the DOLE Regional Offices.

236 


5. Renewal of Permit - An application for renewal of AEP shall be filed at least fifteen (15) 

days before its expiration. For elective officers, applications for renewal shall be filed upon 

election or at least thirty (30) days before the effectivity of the applicantís term of office if the 

succeeding term of office is ascertained. 

Failure to file the application for renewal of permit within the prescribed period shall be 

subject to fines of Five Thousand Pesos (P5,000.00), if filed within six (6) months after the 

prescribed period and Ten Thousand Pesos (P10,000.00), if filed after six (6) months. 

Failure to renew the AEP within one (1) year after its expiration shall be a cause for its 

revocation or cancellation. 

6. The employer shall notify the DOLE-RO which issued the permit of the date of the assumption 

to duty of the foreign national within thirty (30) days from issuance of the permit. 

7. Validity of Permits - The validity of permits shall be as follows: 

7.1 As a general rule the validity of permits shall be for a period of one (1) year, 

unless the employment contract, consultancy services, or other modes of 

engagement or term of office for elective officers, provides for a longer period. 

7.2 The effectivity of the renewal shall be on the day the expiration of the previous 

permit, regardless of whether or not the renewal is granted before or after the 

expiration of the previous permit. 

7.3 As a general rule, the permits shall be valid only for the position and the 

employer for which it was issued, except in case of foreign nationals who are 

holders of multiple positions in one corporation, where one AEP shall be valid for 

such multiple positions. 

7.4 The permits of resident foreign nationals shall be valid for multiple employers, 

regardless of the nature and duration of their employment, provided that they 

shall report changes in their employment status and the identity of their employers 

to the DOLE Regional Office which has issued the permit. 

Rule III 

Revocation/Cancellation of Employment Permits Issued 

1. The permits issued may, motu propio or upon a petition, be cancelled or revoked based on 

any of the following grounds: 

1.1 Misrepresentation of facts or falsification of the documents submitted; 

1.2. The foreign national has been declared as an undesirable alien by competent 

authorities; 

1.3. Non-compliance with the conditions for which the AEP was issued; 

1.4 Failure to renew AEP within one (1) year after its expiration. 

2. Petitions for cancellation or revocation of permits issued shall be resolved within thirty 

(30) calendar days from receipt thereof.


3. Any aggrieved party may file a Motion for Reconsideration and/or Appeal and the same 

shall be resolved based on Paragraph 4 of this Rule. 

4. Remedies in Case of Denial or Cancellation - A Motion for Reconsideration may be 

filed by an aggrieved party within seven (7) calendar days after receipt of the Order of 

Denial/Cancellation. The DOLE Regional Director shall resolve the said Motion for 

Reconsideration within ten (10) calendar days from receipt thereof. 

A Motion for Reconsideration filed after the period of seven (7) calendar days but within 

ten (10) calendar days after receipt of the denial shall be treated as an appeal. 

An appeal from the decision of the DOLE Regional Director may be filed with the Secretary 

of Labor and Employment within ten (10) calendar days from receipt of an Order from the 

DOLE Regional Director. The decision of the Secretary of Labor and Employment shall be 

final and unappealable. 

Rule IV 

Penal and Transitory Provisions 

1. The DOLE Regional Directors, after due notice and hearing, shall have the power to order 

and impose a fine of Five Thousand Pesos (P5,000.00) on foreign nationals found working 

without an AEP for less than one (1) year and Ten Thousand Pesos (P10,000.00) for more 

than one (1) year. 

2. All applications for employment permit/certificates pending at the DOLE-RO upon the 

effectivity of these Guidelines shall be covered and processed under the provisions of these 

Guidelines. 

3. Holders of provisional and extended AEPs issued under Memorandum dated 24 August 

2001 regarding Alternative Interim Measures for the Issuance of Alien Employment Permits, 

shall apply for an AEP pursuant to these Guidelines on or before the expiration of the 

provisional and extended AEP. 

4. Foreign nationals who are already working in the country and who have not yet secured 

the requisite employment permit shall have ninety (90) days from the effectivity of these 

Guidelines to secure the said employment permit without penalty. 

Rule VI 

Miscellaneous Provisions 

1. Manual of Operations - The Bureau of Local Employment shall issue a Manual of 

Operations to implement the provisions of these Guidelines. 

2. Separability Clause - If any provision or part of this Department Order or the application 

thereof to any person or circumstance is held invalid by the Courts, the remaining valid 

provisions of this Department Order shall not be affected. 

3. Repealing Clause - All guidelines, rules and regulations and agreements inconsistent 

herewith are hereby repealed or modified accordingly.

238 


4. Effectivity - These guidelines shall take effect fifteen (15) days after its publication in two 

(2) newspapers of general circulation. 



(SGD.) PATRICIA A. STO. TOMAS 

Secretary 

--o0o-- 

Department Order No. 13 

Suspension of Labor Inspection Activities 

All labor inspection activities, except as herein below provided, are hereby suspended 

in all regions effective immediately and until January 4, 2002. 

The following activities are not covered by this suspension order: 

1. The investigation of labor standards complaints which should in all cases be speedily 

disposed of; 

2. Technical safety inspection (e.g., inspection of boilers, pressure vessels, mechanical and 

electrical installation); 

3. Urgent inspections that may be called to because of compelling circumstances, in which 

case, the Regional Office concerned shall seek the approval of the Secretary of Labor and 

Employment before any such inspection may be conducted. 

Reports on the above activities shall be accomplished in every case, as required under 

existing rules and regulations. 

The period of suspension will be utilized for disposing of pending labor standards 

cases, improving the Labor Standards Enforcement Monitoring Systems (LSEMS) and 

preparing the inspection program for 2002 in accordance with existing rules and policies. 

For strict compliance. 




Secretary 

--o0o--



Guidelines Governing the Employment and Working 

Conditions of Security Guards and Similar Personnel 

in the Private Security Industry 

For the purpose of ensuring the private security personnel of their rights to the minimum 

benefits mandated by law, these guidelines are hereby issued for compliance of all concerned. 

SECTION 1. Coverage - This issuance shall apply to all private security agencies or 

operators, their principals or clients, all companies allowed to directly employ security guards 

and to all security guards, whether agency or company employees, for compliance and 

entitlement, respectively, to existing labor standards laws and benefits. 

SECTION 2. Definition of Terms - For the purpose of this Guidelines, the following 

terms are defined: 

a. ìPrincipalî refers to any employer, company or establishment to whom a security job, 

service or work is provided by a security service contractor, whether or not the arrangement 

is covered by a written contract. 

b. ìSecurity service contractorî is synonymous with a private security agency which 

means any person, association, partnership, firm or private corporation, who contracts recruits, 

trains, furnishes or posts any security guard or similar personnel to individuals, corporations, 

offices and organizations, whether private or public, for their security needs as the Philippine 

National Police may approve. 

SECTION 3. Employment Status - 

3.1 Employer-employee relationship - The security service contractor is the employer of its 

security guard and similar personnel. The principal where the security guards are assigned 

is considered an ìindirect employerî for unpaid wages and other wage related benefits 

based on the joint and several liability of the principal with the service contractor under the 

Labor Code, unless the private security agency is owned, managed or controlled by the 

principal or the facts show that the principal controls the manner by which the security 

service is performed or where the security guard is directly hired by the establishment. 

3.2 Probationary employment - The probationary period of a newly hired security guard or 

similar personnel in the private security industry shall not exceed six (6) months. While 

engaged on probationary basis, his/her services may be terminated for failure to meet the 

reasonable standards or criteria made known by the security agency/employer to the guard 

at the time of engagement or for just cause/s. 

3.3 Regular employment - Any security guard or similar personnel in the private security 

industry who is allowed to work after the probationary period shall be considered a regular 

employee. 

SECTION 4. Service Contracts - The security service contractor and/or the principal 

shall produce or submit the original copy of their service contract when directed to do so by

240 


the Regional Director or his/her duly authorized representative. The service contract shall 

stipulate, among others: 

a. A statement that the security guards/personnel shall be paid not less than the minimum 

wage and other benefits under the Labor Code and other existing laws; 

b. An escalation clause to immediately effect the common provision in the wage orders that 

the prescribed increase in the wage rates of the workers shall be borne by the principal or 

client of the service contractors and the contracts shall be deemed amended accordingly. 

c. A statement that security service contractor and/or principal shall comply with Social 

Security, Employees Compensation, Philippine Health Insurance Corporation and Home 

Development Mutual Fund laws on employeesí coverage or membership. 

d. The kind or nature of security service. 

e. The schedule of payment of 13th month pay per PD 851 and retirement pay per RA 7641. 

SECTION 5. Employment Contracts - 

5.1 The security service contractor shall provide his security guards, detachment commanders/ 

supervisors and other security personnel, a copy of the employment contract duly signed by 

the parties which shall contain the terms and conditions of employment, such as those 

provided under Section 5 hereof. 

5.2 For every assignment of a security guard/personnel to a principal, the duty detail order 

shall contain the following, among others: 

a. Description of job, work or service to be performed 

b. Hours and days of work, work shift and applicable premium, overtime and night 

shift pay rates. 

SECTION 6. Terms and Conditions of Employment - 

6.1 The security guards and similar personnel in the employment of any private security 

agency or company must be duly licensed and must have passed the physical and neuropsychiatric 

examinations required by the PNP. They are entitled to the mandatory benefits 

under the Labor Code and other existing laws, including coverage by SSS, ECC, Philhealth 

and HDMF. 

6.2 The basic wage rate of security guard/personnel shall not be less than the minimum 

wage rate for the non-agricultural sector in the Region where he/she is assigned, regardless 

of the nature of business of the principal, or in the Region where the security guard has been 

engaged, whichever is higher. 

Where a security guard/personnel is recruited through a branch office in another 

Region where the principal is likewise located, the non-agricultural minimum wage rate 

applicable in the workplace of the principal shall govern.


Security guards or other personnel employed and/or assigned by a security service 

contractor in one Region but who are transferred, moved or assigned to another Region shall 

be paid based on the more beneficial wage rate. 

6.3 Statutory Benefits - The security guards/personnel are entitled to not less than the 

following benefits depending on the working hours, work shift and workdays under the given 

conditions, which benefits should be included in the cost distribution in the service contract: 

a. Basic salary for all actual workdays and for the ten regular holidays (as holiday 

pay) which must not be lower than the minimum wage rates above described and 

to be computed by using the factors recommended herein or by more favorable 

practice of the employer. In addition, one hundred percent (100%) of the basic 

salary is due whenever work is rendered on a regular holiday. 

b. Allowance in addition to the basic salary, if any if prescribed by the applicable 

Regional Wage Order. 

c. Premium pay of 30% of the daily rate for work on special days and rest days, 

which is increased to 50% whenever work is performed on coinciding rest days 

and special days. 

d. Overtime pay for work rendered in excess of eight (8) hours a day, equivalent 

to at least 25% of the regular wage rate on ordinary days and 30% on regular 

holidays, special days and rest days. 

e. Night shift pay equivalent to 10% of the regular hourly rate for work rendered 

between 10:00 pm to 6:00 am of the following day. 

f. Five (5) day service incentive leave for every year of service which benefits 

can be availed of during days of absence and, if not used, are convertible into its 

cash equivalent. A proportionate leave benefit per month may be derived by 

dividing 5 days by 12 months times the daily rate. 

g. Paternity leave of seven (7) days with full pay. This leave shall be granted 

before, during or after childbirth or after spontaneous miscarriage by his legal 

spouse. The paternity leave with pay is granted for only four deliveries, including 

miscarriage. 

h. 13th month pay which is 1/12 of the total basic salary earned within a calendar 

year. 

6.4 Recommended Computation of Equivalent Monthly Rates 

Using the applicable daily wage rate (ADR) and a factor representing the number of 

paid days in a year, the following procedures are recommended to facilitate computation of 

equivalent monthly rates (EMR). 

For those who are required to work everyday including Sundays or rest days, special 

days and regular holidays

242 


EMR = (ADR x 391.5) /12 

where 391.5 is derived from: 

302.0 - ordinary working days 

18.0 - 9 regular holidays x 200% 

2.6 - a regular holiday on last Sunday 

of August x 200% + (30% of 200%) 

66.3 - 51 rest days x 130% 

2.6 - 2 special days x 130% 

___________________________________ 

391.5 - days considered paid in a year 

For those who are considered paid on all days including unworked Sundays or rest 

days, special days and regular holidays: 

EMR = (ADR x 365 )/12 

where 365 days derived from: 

302 - ordinary working days 

2 - special days 

51 - rest days 

10 - regular holidays 

____ 

365 days 

For those who do not work and are not considered paid on Sundays/rest days: 

EMR = (ADR x 314.6)/12 

where 314.6 derived from: 

2.6 - 2 special days (if worked ) x 130% 

10.0 - regular holidays 

______________________ 

314.6 days considered paid in a year 

For those who do not work and are not considered paid on Saturdays and Sundays or 

rest days 

EMR + (ADR x 262.6 )/12 

where 262.6 is derived from: 

250.0 - ordinary working days 

2.6 - special days (if worked) x 130% 

10.0 - regular holidays 

____ 

262.6 days


By using the above indicated factors, the basic wage for the worked days and holiday 

pay for the 10 regular holidays are included in the monthly rates. Thirty percent (30%) rest 

day premium has been integrated in factor 391.5 for all the Sundays/rest days in a year 

including the last Sunday of August and in factors 314.6 and 262.6 for the two special days 

(November 1 and December 31) under Executive Order No. 203 of 1987. 

Not included in the above formula is the premium pay due an employee whenever work 

is rendered on an ordinary working day proclaimed by the President as a special day (that is 

other than Nov. 1 and Dec. 31) 

6.5 Other Mandatory Benefits. In appropriate cases, security guards/similar personnel are 

entitled to the mandatory benefits as listed below, although the same may not be included in 

the monthly cost distribution in the contracts, except the required premiums for their coverage: 

a. Maternity benefit as provided under SSS Law; 

b. Separation pay if the termination of employment is for authorized cause as 

provided by law and as enumerated below: 

Half-Month Pay Per Year of Service, but in no case less than One Month Pay, if 

separation is due to: 

1. Retrenchment or reduction of personnel effected by management to prevent 

serious losses; 

2. Closure or cessation of operation of an establishment not due to serious 

losses or financial reverses; 

3. Illness or disease not curable within a period of 6 months and continued 

employment is prohibited by law or prejudicial to the employeeís health or that of 

co-employees; or 

4. Lack of service assignment for a continuous period of 6 months. 

One Month Pay Per Year of Service, if separation is due to: 

1. Installation of labor-saving device, such as replacement of employees by 

equipment/machinery; 

2. Redundancy, as when the position of the employee has been found to be 

surplusage or unnecessary in the operation of the agency; 

3. Impossible reinstatement of the employee to his/her former position or to a 

substantially equivalent position for reasons not attributable to the fault of the 

employer, as when the reinstatement ordered by a competent authority cannot be 

implemented due to closure or cessation of operations of the establishment/ 

employer, or the position to which the employee is to be reinstated no longer 

exists and there is no substantially equivalent position to which he/she can be 

assigned.

244 


c. Cash income benefits under the State Insurance Fund in case of work-related 

sickness or other contingencies. 

d. Retirement pay granted by RA 7641 to any security guard/personnel who 

retires under an applicable employer plan or policy. 

For this purpose, the security service contractor shall create or put up a trust fund for 

retirement benefit. The Trust Fund Agreement shall be executed by and between the trustor 

and trustee in favor of the employee-beneficiary for payment of retirement benefit in 

accordance with RA 5487 and RA 7641. 

The Fund shall be administered and maintained by a trust company, bank, investment 

house, pre-need company or corporation duly authorized to perform trust function exclusively 

for collective investment or re-investment of certain money received in its capacity as trustee 

or similar arrangement as may be agreed upon in accordance with law. 

As such, any payment for retirement benefits collected in advance by the contractor 

from the principal/s shall be deposited by the contractor/trustor to the trustee in favor of the 

security guard as benefit upon retirement or when his/her employment is terminated due to 

authorized causes. 

e. Other benefits granted by law, individual or collective agreement or company policy 

or practice. 

SECTION 7. Deductions from Salary - No deduction shall be made from the salary of 

the security guards/personnel, except for: 

a. SSS contribution 

b. EC contribution 

c. HDMF contribution 

d. Philhealth contribution 

e. Withholding tax from income, provided a proper withholding tax receipt is issued to 

the employee before the filing of income tax return every year. 

f. Union dues, if applicable 

g. Other deductions authorized by 

SECTION 8. Liability and Responsibilities of Contractors and Clients/Principals 

8.1 Joint and several liability - When the security service contractor fails to pay the wages of 

its security guards/personnel, the principal shall be jointly and severally liable with the security 

service contractor to the extent of the work performed by such employees under the contract, 

in the same manner and extent that the principal is liable to its direct employees. 

If there are wage increases or adjustments after the execution of the service contract, 

the prescribed increases in the wage rates of guards shall be borne by the principal and the 

service contract shall be deemed amended accordingly. In the event that the principal fails to 

pay the prescribed increases, the security service contractor shall be jointly and severally 

liable with the principal.


The security guardsí contractual relationship is with their employer, the security 

service contractor. Thus, their immediate recourse for payment of wage increase before 

litigation is with their direct employer, the security service contractor. In order for the security 

service contractor to comply with the new rates, the consideration paid by the principal for 

the security guardís wages has to be adjusted in conformity with the mandated wage increase. 

In case of finding of violations on wages and other labor standards due the security 

guards, the DOLE Regional Director shall serve summons to both the security service contractor 

and the principal to determine the extent of liability of the parties. 

8.2 Solidary liability - For purposes of immediate relief, the principal shall be deemed as the 

direct employer of the security guard/personnel in any of the following cases, and therefore 

shall be solidarily liable for whatever monetary claims the security guard/personnel may have 

against his employer: 

a. When the security service contractor is found to be engaged in labor-only contracting; 

contracting out of work which will either displace its employees or reduce their regular work 

hours or any other prohibited activity; 

b. When the security service contractor is declared guilty of unfair labor practice, i.e., 

contracting out of job, work or service being performed by union members when such will 

interfere with, restrain or coerce employees in the exercise of their rights to self-organization; 

or 

c. When a violation of the relevant provisions of the Labor Code has been established by the 

Regional Director in the exercise of his/her enforcement powers. 

The principal shall also be deemed solidarily liable with the security service contractor 

to the extent of accrued claims and benefits that the latter may owe to its security guards/ 

personnel in the following instances: 

a. When the license or business permit of the security service contractor is cancelled 

revoked or not renewed by the competent authority; or 

b. When the contract between the principal and the security service contractor is preterminated 

for reasons not attributable to the fault of the latter. 

8.3 Responsibilities and Obligations of Security Service Contractors and Principals in the 

Execution of Service Contracts - The service contracts or agreements between a security 

service contractor and its principal/s shall ensure compliance with the minimum wage and 

other labor standards under the laws, including the mandatory coverage by the SSS, EC, 

Philhealth and HDMF. 

Government agencies or instrumentalities engaging security services from private security 

agencies shall likewise observe compliance with all labor laws and shall require the security 

service contractor to submit, among others requirements and as part of their bid, an undertaking 

to pay their workers the above benefits. 

8.4 Keeping of records - The principals as indirect employers shall keep and maintain their 

own separate records or files on the assignment of security guards in their premises during

246 


the period of the service contract, which shall, be open for inspection and verification by this 

Department. The security agency, however, as the direct employer shall observe the rule on 

general record keeping under the Labor Code, as amended. 

SECTION 9. Rights to Security of Tenure and Due Process - 

9.1 Security guards and similar personnel who have become regular employees shall enjoy 

security of tenure in their employment as provided by law. Their services can only be terminated 

for just or authorized causes after due process. 

Termination for a just cause or causes as stated in Art. 281 of the Labor Code does not 

entitle the security guard/personnel to separation pay, unless otherwise provided in the 

employer policy or individual contract or collective agreement. 

9.2 Notice of Termination - In case of termination of employment due to authorized causes 

provided in Art. 283 and 284 of the Labor Code and in the succeeding subsection, the 

employer shall serve a written notice on the security guard/personnel and the DOLE at least 

one (1) month before the intended date thereof. 

9.3 Reserved Status - A security guard or similar personnel may be placed in a workpool or 

on reserved status due to lack of service assignments after expiration or termination of the 

service contract with the principal where he/she is assigned, or due to the temporary 

suspension of agency operations. 

No security guard or personnel can be placed in a workpool or on reserved status in 

any of the following situations: a) after expiration of a service contract if there are other 

principals where he/she can be assigned; b) as a measure to constructively dismiss the 

security guard; and c) as an act of retaliation for filing complaints against the employer on 

violations of labor laws, among others. 

If, after a period of 6 months, the security agency/employer cannot provide work or 

give an assignment to the reserved security guard, the latter can be dismissed from service 

and shall be entitled to separation pay as described in subsection 5.6. 

Security guards on reserved status who accept employment in other security agencies 

or employers before the end of the above six-month period may not be given separation pay. 

9.4 Preventive suspension - Subject to the constitutional rights of the workers to security of 

tenure and the right to be protected against dismissal except for a just and authorized cause 

and without prejudice to the requirement of notice under Art. 282 of the Labor Code, a 

security guard/personnel may be preventively suspended if his continued employment poses 

a serious and imminent threat to life or property of the employer, its principal or the guardís 

co-workers. 

No preventive suspension shall last longer than thirty (30) days. The security agency 

shall thereafter reinstate the security guard/personnel in his/her former position or it may 

extend the period of suspension, provided that during the period of extension, the agency 

pays the wages and other benefits due the guard/personnel. 

The employer shall designate a day, time and place within the period of preventive 

suspension, with notice to the employee, to hold a fact-finding investigation thus enabling the


suspended employee to be heard and assisted by a counsel or representative, if he/she so 

desires, of the charge against him/her and thereby be exonerated; or, upon the employeeís 

failure to vindicate himself/herself, to find the employee guilty and thereby, to terminate his/ 

her employment. Such termination, however, shall not prejudice the right of the employee to 

question the severance of relationship in the appropriate forum. 

The above procedure shall likewise be observed by the employer/agency in case the 

employment is terminated due to any of the just causes. 

9.5 Report of dismissal, termination or retirement - The security service contractor shall 

submit a monthly report of all dismissals or termination, including retirement, effected during 

the month to the DOLE Regional Office having jurisdiction over its main or branch office 

using the prescribed form and indicating all information as required by DOLE for policy and 

statistical purposes. 

SECTION 10. Right to Self-Organization and Collective Bargaining - The security 

guards and other personnel employed by the security service contractor shall have the right 

to form, join or assist in the formation of a labor organization of their own choosing for 

purposes of collective bargaining and to engage in concerted activities which are not contrary 

to law including the right to strike. 

SECTION 11. Penal Provision - Violation of any of the provisions of this Guidelines 

which are declared unlawful or punishable by law shall be punished accordingly. 

SECTION 12. Effect on Existing Issuances and Agreements - This issuance shall 

serve as a guide for the DOLE and its agencies in the administration and enforcement of 

applicable labor and social legislations and their implementing regulations. 

Nothing herein shall be construed to authorize diminution or reduction of benefits 

being enjoyed by the security guards and similar personnel at the time of issuance hereof. 

This Guidelines supersedes Department Order No. 40 s. 1994 and other existing orders 

which are inconsistent hereto and shall take effect immediately. 




Secretary 

--o0o-- 

Department Order No. 15, Series of 2001 

Rules on Internal Combustion Engine 

and Power Piping Lines

248 


Pursuant to Article 162 of Presidential Decree No. 442, otherwise known as the Labor 

Code of the Philippines, as amended, the following Rules on Internal Combustion Engine 

and Power Piping Lines are hereby promulgated and issued as follows: 

Rule 1180 

INTERNAL COMBUSTION ENGINE 

1181: 

Definition of Terms 

1. ìInternal Combustion Engineî can be a two or four stroke cycle piston engine wherein 

heat energy is developed by burning the air-fuel mixture (gas, diesel, oil, etc.) inside the 

combustion chamber which in turn produces mechanical energy in the form of reciprocating 

and rotating forces of expanding gases during combustion to drive a piston, shaft or propeller. 

Diesel engine is the principal internal combustion engine for stationary power plant. 

2. ìHorsepowerî (hp) is the amount of energy or work required to raise, create or force a 

weight of 33,000 pounds to a height or distance of one-foot in one-minute time; a standard 

unit of power equivalent to 746 watts or 746 joules/second. 

1181.01: Application/Coverage 

The Rule on internal combustion engine shall cover or apply to the following: 

1. Portable/mobile generating units which may be moved from site to site where electrical 

power is required. 

2. Standby units, normally idle, which can be activated when there is a failure of central 

station power where an interruption would mean a financial loss or danger to life and property 

(such as in tunnel lighting, operating rooms, key industrial processes, etc.). 

3. Engine driven generator units installed in power plants where they are the normal 

primary source of electrical power generated for industrial and general utilities services. 

4. Prime movers for industrial manufacturing processes and services. 

5. All internal combustion engines used in construction and agricultural services and other 

similar applications, except those engines used in transportation such as automobile, aircraft 

engine, gas or liquid compressor engine, marine or ship motor engines. 

1182: General Provisions 

1. No internal combustion engine shall be installed and/or operated in the Philippines 

without the permit issued for the purpose by the Secretary of Labor and Employment or his 

duly authorized representative. 

2. Application for installation of an internal combustion engine shall be filed through the 

Regional Labor Office concerned for processing or verification, accompanied by the 

manufacturerís data sheets, working drawing, foundation with design computation, installation


and site location plan and vicinity map, all in five (5) copies in white or blue print duly signed 

and sealed by a professional mechanical engineer and duly signed by the owner. 

3. A permit to operate an internal combustion engine issued by the Secretary of Labor 

and Employment or his duly authorized representative shall be valid during the period 

covered by the permit unless revoked for justifiable reasons (e.g., unsafe to operate). 

4. Any removal and/or change of location of an internal combustion engine shall be reported 

to the Regional Labor Office concerned and shall be considered as a new installation. 

5. Change of ownership of an internal combustion engine shall be reported to and applied 

with the Regional Labor Office concerned. 

6. The personnel requirement in the operation of internal combustion engine shall be in 

accordance with Republic Act No. 8495 (Mechanical Engineering Law). 

1182.01: Standards Requirement 

As a minimum requirement for purposes of installation, plan checking, inspection, and 

other considerations prior to the clearance of any installation and use of internal combustion 

engine, Chapter 2 of the Philippine Society of Mechanical Engineering (PSME) Code and 

Rule 1060 of the Occupational Safety and Health Standards shall be applied. 

1182.02: Inspection 

1. The Regional Labor Office through its duly authorized representative shall conduct 

inspection of internal combustion engine accompanied by the representative of the owner 

and/or the supervising plant mechanical engineer for operation and maintenance and those 

who installed the internal combustion engine on the following phases of work: 

a. During the construction phase of the foundation and/or installation of the internal 

combustion engine; 

b. Before being placed into service after installation; 

c. Before being placed into service after modification; and 

d. Periodically at intervals not exceeding 12 months. 

2. Upon receipt of Notice of Annual Inspection, the owner or user shall order the responsible 

plant mechanical engineer for operation and maintenance to prepare the internal combustion 

engine and its surrounding facilities for the inspection. 

3. While the internal combustion engine is running, the following shall be noted: 

a. crack on base foundation; 

b. noise level; 

c. excessive vibration; 

d. exhaust gas emission level; 

e. heat level; and 

f. ventilation system. 

1183: Internal Combustion Engine Room/Building

250 


1. All buildings, permanently or temporarily used, shall be structurally safe and sound to 

prevent their collapse. 

2. Roof shall be of sufficient strength to withstand normal design load, typhoon and strong 

winds in addition to carrying suspended loads. 

3. Floors over which any person is likely to walk shall be sufficiently even to afford safe 

walking. 

4. Floors shall be free from holes and splinters, improperly fitted gutters or conduits, 

protruding nails and bolts, projecting valves or pipes or other obstructions which create 

stumbling hazards. 

5. Floors shall not be slippery under any condition. 

6. Engine room shall be at a minimum of 3.0 meters in height or as specified by the 

manufacturers. 

7. Adequate spaces shall be provided between engine or equipment to allow normal 

operation, maintenance and repair. Clearance around the engine to the engine room wall or 

any equipment shall be at a minimum of 1.0 meter. 

Engine room shall have two independent doors for easy access. 

8. Engine room/building shall be suitably or adequately lighted for the operation and other 

type of work performed. 

9. Normal atmospheric conditions shall be maintained in the engine room by natural or 

artificial ventilation to avoid insufficient air supply, stagnancy of air, excessive heat, toxic 

gases, excessive dryness and other objectionable odors. 

10. Engines with ìweatherproofî housings which are installed outdoors or on roofs of 

structures shall be located at a minimum of 1.5 m from openings in walls and at least 1.0 m 

from structures having combustible adjacent walls. 

11. Engines rated at more than 50 hp shall be located in accordance with no. 10 or shall 

be installed in detached structures reserved exclusively for the purpose with equipment and 

processes having similar hazard, or in rooms within or attached to other structures. 

12. Detached structures shall be of noncombustible or fire-resistive construction. Provision 

shall be made for venting a fuel explosion with minimum structural damage. Ventilation 

adequate to prevent a hazardous accumulation of flammable vapors or gases shall be 

provided both when the engine is operating or shut down. 

13. Rooms located within structures shall have interior walls, floors and ceilings of at least 

one hour fire resistance rating. (The ceiling of such a room located on the top floor of a 

structure need not be fire-resistive but shall be non combustible or protected with automatic 

sprinklers).


a. These rooms shall have a provision for venting a fuel explosion with minimum structural 

damage; or, ventilation adequate to prevent a hazardous accumulation of flammable vapors 

or gases shall be provided both when the engine is operating or shut down. 

b. Openings in the engine room that open into other sections of the structure shall be 

provided with automatic or self closing fire doors or dampers to confine a fire to the engine 

room. 

14. Rooms attached to structures shall comply with no. 12 except that the common wall 

shall have a fire resistance rating of at least one hour. Openings in the engine room shall 

preferably be in outside walls, but if they open into other sections of the structure, they shall 

be provided with automatic or self-closing fire doors or dampers. 

15. In areas where flammable gases or liquids, combustible dusts or flying normally exists, 

engines not compressing a flammable gas or not pumping a flammable liquid shall be 

installed in an enclosure of fire-resistive construction, with outside access only and well 

ventilated from a non-hazardous outside area. 

16. Gasoline or liquified petroleum gas fueled engines shall not be installed in rooms or 

locations containing fired equipment or open flames. 

17. Appropriate fire protection equipment shall be provided for the engine and the location. 

e.g. fire extinguishers, fire hoses and pumps. 

18. Appropriate exhaust silencer shall be provided to minimize or maintain noise level. 

19. All exhausts from internal combustion engine shall be directed outside to a safe area 

in accordance with the requirements of the Department of Environment and Natural Resources 

(DENR). 

20. Safety signages shall be posted on prominent position at strategic location and, as far 

as practicable, be in the language understandable to all the workers. 

1183.01: Internal Combustion Engine Foundation Requirements 

1. Foundations shall be of sufficient strength, structurally designed to sustain safely the 

loads for which they are designed. Under no condition shall they be overloaded. 

2. Floor slabs or building footings shall be isolated from foundation base by at least 25 

mm. around its perimeter to eliminate transmission of vibration. Opening shall be filled with 

watertight insulation. 

3. Foundations shall be concrete, at least class A mixture of 1 part cement, 2 parts sand 

and 4 parts broken stone or gravel (50 mm. max.) or at least 211.36 kg/cm2 (3000 psi). 

4. Foundations shall be poured monolithically, with no interruption, for spading and ramming 

purposes. 

5. Engine should be placed on the foundation only after seven days have elapsed from 

pouring of base and should be operated only after 20 days have elapsed from placement or 

as per specifications of the manufacturer/installer.

252 


6. Additional vertical and horizontal steel bars shall be placed on concrete foundations as 

reinforcement to avoid thermal cracking. 

7 Specified size of foundation bolts shall be used and surrounded by a pipe sleeve. 

8. Minimum foundation bolts shall be at least 12 mm. in diameter. 

9. The weight of the engine plus the weight of the concrete foundation shall be distributed 

over a sufficient soil base area large enough to cause a bearing stress within the safe 

bearing capacity of the soil with a factor of safety of five (5), as minimum. 

1183.02: Machine Guarding 

All moving parts of the engines, transmission equipment and all dangerous parts of driven 

machinery shall be effectively guarded in accordance with the provisions of Rule 1200 of 

the Occupational Safety and Health Standards. 

Hot surfaces shall be provided with insulation or guarding. 

1183.03: Personal Protective Equipment 

On-duty personnel for engines requiring regular attendants shall be provided with personal 

protective equipment appropriate for the hazard present. 

1184: Requirements in the Preparation of Internal Combustion Engine Installation Plan 

Before an internal combustion engine (diesel, gasoline, gas or oil, etc.) is installed, the 

owner/manager or his authorized representative shall file with the Regional Labor Office 

concerned an application for internal combustion engine installation, accompanied by each 

sheet of plans in blue or white print, all in five (5) copies. 

The following shall be incorporated in the plans. 

1. Vicinity and Location Plans: 

Site of the establishment indicating any known landmarks, such as street, private or public 

place or building and an arrow indicating NORTH direction drawn not necessarily to scale. 

2. Room Layout: 

a. The detail room drawn to scale indicating the position of the engine to the surrounding 

walls or any machinery/equipment in the room. There shall be at least two independent 

doors. 

b. The type of materials used for the room walls, may either be concrete, adobe, hollow 

blocks or other type of fire-resistive wall and noise-proof walling. 

3. Installation and Foundation Plans:


a. The front and side views of the engine installation with the foundation. This shall include 

the detail of anchorage or setting of the engine to the concrete foundation. The dimensions 

of the concrete foundation shall also be indicated. 

b. The detail layout of the equipment/machinery to be shown powered by the engine. 

c. The method of the main drive, whether belt/s or others must be presented. 

d. The piping installation especially those within a height of 2.13 meters from the floor line 

e. Guarding of moving or power transmission parts. 

4. Internal Combustion Engine Data and Specification: 

a. BHP (Factory Catalog Rating) 

b. Manufacturer or make, kind of internal combustion engine 

c. Type and model, serial number 

d. Bore and stroke, number of cylinders 

e. Cycle stroke and revolution per minute (rpm) 

f. Method of fuel injection 

g.Type of cooling 

h.Type of lubrication 

i. Type of governor 

j. Method of starting 

k.Method of drive 

l. Internal Combustion Engine application/use 

5. Foundation Design Computation: 

a. The gross weight of the machine engine and its accessories. 

b. The base area and volume of concrete foundation. 

c. The type of concrete mixture used and density of concrete. 

d. The soil bearing capacity in the locality where the engine is to be installed. 

e. The factor of safety of the concrete foundation shall be at least five. 

6. Size of Plans: 

All sheets of plans to be submitted shall be of the following sizes: 

375 cm. x 530 cm --------------------------Minimum 

530 cm. x 750 cm. 

750 cm. x 1065 cm --------------------------Maximum 

7. Title Block: 

The size shall be 7.62 cm. in width, while the total length of the lower part of the plan will be 

occupied by the title block to contain:

254 


a. Name in print, signature and seal of professional mechanical engineer indicating 

his/her registration number, PTR number, place and date issued and Tax Identification 

Number. 

b. Initials of the draftsman, date of plan prepared, sheet number and scale used. 

Minimum scale of 1:100 except for small and minute parts/details where a convenient scale 

may be used to show clearly the parts/details. 

c. Title of the plan. 

d. Name in print and signature of owner/manager of the establishment indicating his/ 

her Tax Identification Number. 

e. Name and address of establishment. 

1185: Portable/Mobile Internal Combustion Engines 

1. Application for installation of a portable/mobile internal combustion engine shall be filed 

with the Regional Labor Office concerned for the processing or verification accompanied 

by the manufacturers data sheets, working drawing showing the mounting of the unit in white 

or blue print, all in five (5) copies. 

2. All plans shall be drawn in standard metric scale. Minimum scale shall be 1:100 except 

for small and minute parts/details where a convenient scale may be used to show clearly the 

parts/details. 

3. All pertinent papers/documents required shall be signed by the owner/manager of the 

unit and signed and sealed by a professional mechanical engineer. 

4. The necessary annual inspection shall be conducted on or before the expiration date of 

the permit to operate issued by the Regional Labor Office concerned and the inspection fee 

shall be paid for the issuance of a new permit. 

5. The new permit shall be valid for one-year operation regardless of the subsequent 

transfer of location of operation of such unit, provided that such permit is available at the 

location of operation. 

1241: Definition of Terms 

RULE 1240 

POWER PIPING LINES 

1. ìPower Piping Lineî shall include all steam, water, air, gas, hazardous substances, oil 

piping and the component parts such as the pipe, flanges, bolting, gaskets, valves, fittings 

and other components related to steam generating plants, central heating plants and industrial 

plants. 

2. ìInstallationî shall mean assemblance or connection of power piping in a given location, 

designed for safety operation in accordance with the prescribed standards.


3. ìClearedî shall mean acceptance by the Regional Labor Office concerned after 

verification and checking of the applications, plans and other pertinent documents showing 

compliance with prescribed installation requirements. 

1242: General Provisions 

1. Application for installation of a power pipeline shall be filed with the Regional Labor 

Office concerned for processing and evaluation. Application shall be accompanied by the 

working drawings showing location plant piping layout and piping specifications, all in five 

(5) copies (white/blue print) duly signed by the owner and signed and sealed by a professional 

mechanical engineer. 

2. No power piping line shall be connected/installed without the plans cleared by the 

Regional Labor Office concerned. 

3. No power piping line shall be operated until the necessary documents are submitted 

and final inspection conducted, the safety permit is issued upon payment of the corresponding 

inspection fee. 

4. Any repair work done on power pipeline shall be documented and shall be made 

available during the conduct of periodic inspection. 

1243: Standards Requirements 

For purposes of design installation, inspection and other considerations prior to the 

clearance of any installation of the power piping connection system, Chapter 11 on Power 

Piping System of the Philippine Society of Mechanical Engineering (PSME) Code shall be 

applied as a minimum requirement. 

1244: Construction 

1. Power piping shall be designed to be of sufficient strength suitable for their intended 

use. 

2. Power pipeline shall be provided with safety and or relief valves, indicating and controlling 

devices to ensure their safe operation. The safety devices shall be accessible, installed and 

maintained in good operating condition. 

3. The discharge capacity of safety valves provided on power pipelines shall be sufficient 

for the size and pressure at which the power pipeline is operated. 

4. Outlets of safety valves on power pipeline shall be installed on location so that hazards 

to personnel shall be avoided. 

5. In the absence of appropriate provisions in the PSME Code, the manner of installation 

of approved pressure relief devices such as rupture discs shall be in accordance with the 

code of practice for mechanical engineering under the supervision of a professional 

mechanical engineer.

256 


6. Indicating and recording devices on power pipeline shall be protected against breakage 

or clogging and shall be clearly visible. 

7. Where pressure reducing valves are used, one or more relief or safety valves shall be 

provided on the low pressure side of the reducing valve, in case the piping or equipment on 

the low pressure side does not meet the requirements for the full initial pressure. The relief 

or safety valve shall be located adjoining or as close as possible to the reducing valve. The 

vents shall be of ample size and as short and direct as possible. 

8. Pressure gauge in power pipeline shall be installed on the low pressure side of a 

reducing valve. 

9. Flange connections for their respective pressures and temperatures shall conform to 

the specifications set forth by the PSME Code. 

10. Piping lines must be provided with loops and bends and expansion joints to avoid: 

a. failure because of excessive stresses; 

b. excessive thrusts or moments at connected component; or 

c. leakage at joint because of expansion of the pipe. 

11. Welding in power piping lines whether in the shop or at the job site must be done by 

qualified welders. 

12. All power pipelines shall follow the standard color code as required in Rule 1230 of the 

Occupational Safety and Health Standards. 

13. All power pipelines shall have appropriate supports or hangers and guard provision 

against bumps. 

14. All other provisions on bolting, flanges, fittings, gaskets, hangers, supports, anchors, 

pipe sleeves, drains, drips and steam traps requirement in the power pipeline shall be in 

accordance/conformity with the provisions in Chapter 11 (Power Piping System) of the 

PSME Code as a minimum requirement. 

1245: Non-Destructive Test 

All newly installed and repaired pipelines are required to be subjected to a random Non- 

Destructive Testing prior to its operation, by either Radiographic Examination (RT) or Ultrasonic 

Test (UT). 

1246: Hydrostatic Test 

After installation, all piping line connection shall be hydrostatically tested and shall observe 


a. The ends of the pipelines and any equipment are blanked off, such as, pressure 

reducing valve diaphragms is removed or protected to avoid over pressure. 

b. Applied hydrostatic test is equal to 1.5 times the service operating pressure for a 

minimum of 24 hrs. for new installation and 4 hours for existing repaired/installation.





Secretary 

--o0o-- 

DEPARTMENT ORDER NO. 16, (Series of 2001) 

Rule 1030 Training and Accreditation of 

Personnel On Occupational Safety and Health 

In the interest of the service and pursuant to the provisions of Article 162, Book IV of 

the Labor Code of the Philippines, the following amendments to Rule 1030 of the Occupational 

Safety and Health Standards are hereby promulgated: 

Rule 1030 TRAINING AND ACCREDITATION OF PERSONNEL ON OCCUPATIONAL 

SAFETY AND HEALTH 

Rule 1031: General Provisions: 

1) The Bureau, either directly or through accredited organizations or the OSHC or other 

institutions authorized by law shall conduct continuing programs to increase the supply and 

competence of personnel qualified to carry out the provisions of these Standards. 

2) The Bureau shall prescribe the required training programs which shall, in consultation 

with the OSHC or other institutions authorized by law and other technical societies, contain 

provisions requiring the incorporation into the training programs of the latest trends, practices 

and technology in occupational safety and health. 

Rule 1032: Definitions: 

1) Safety Officer - refers to any employee/worker trained and tasked to implement 

occupational safety and health programs in the workplace in accordance with the provisions 

of the Standards and shall be synonymous to the term ìSafety Manî as used in these 

Standards. 

2) Occupational Safety and Health Personnel - refers to Physician, Nurse, Dentist, 

Chemist, Engineers, Safety Officer, First-Aider and other persons engaged by the employer 

to provide occupational safety and health services as required by the Standards. 

3) Practitioner in Occupational Safety and Health - refers to any qualified person as 

assessed and duly-accredited by the Bureau to practice and render occupational safety 

and health services in a defined and specific scope or core competency. 

4) Occupational Safety and Health Consultant - refers to any practitioner in occupational 

safety and health or group of persons or organizations duly-accredited by the Bureau to

258 


practice, perform and/or render consultative and/or advisory services on occupational safety 

and health in at least two (2) fields of specialization as enumerated in Annex ìAî. 

5) Trainer - refers to a person who facilitates learning situation in one or more topics in 

an occupational safety and health training. 

6) Training Organization - refers to an institution accredited or authorized by law to 

conduct training in a particular field or a combination of fields on occupational safety and 

health. 

7) Hazardous Establishment - refers to an establishment where work operations or 

practices performed by a worker in the establishment or workplace in conjunction with or as 

an incident to such operations or practices and which expose the employee or worker to 

hazards likely to cause disabling injury, illness, death or physical or psychological harm. 

8) Highly Hazardous Establishment - is one where potential hazard within the company 

may effect the safety and/or health of workers not only within but also persons outside the 

premises of the workplace. The following are workplaces commonly associated with potentially 

high hazardous activities: 

a) Petrochemical works and refineries; 

b) Chemical works and chemical production plants; 

c) LPG storage and materials; 

d) Stores and distribution center for toxic/hazardous chemicals; 

e) Large fertilizer stores; 

f) Explosives factories; 

g) Works in which chlorine is used in bulk; 

h) Activities closely similar to the activities enumerated above; and 

i) Activities as determined by the Bureau in accordance with existing issuances 

related to classification of establishments 

Rule 1033: Training and Personnel Complement: 

The minimum qualifications, duties and number of required safety and health officers 

shall be as follows: 

1) All safety officers must complete the Bureau-prescribed training course prior to their 

appointment as in their respective places of employment. 

2) All full-time safety officers must meet the requirement of duly-accredited Safety 

Practitioners or Safety Consultants by the Bureau. 

3) Not less than the following number of supervisors or technical personnel shall take the 

required trainings and shall be appointed as a safety officer on a full-time or part-time basis, 

depending on the number of workers employed and the hazardous or non-hazardous nature 

of the workplace pursuant to Rule 1013 of these Standards. 

a) For hazardous workplaces:


Number of Workers Minimum Number of Safety Officers 

Hazardous Highly Hazardous 

1-50 One (1) part-time One (1) full-time 

51-200 One (1) full-time One (1) full-time and One part-time 

201-250 One (1) full-time and one (1) part-time Two (2) full-time 

251-500 Two (2) full-time Two (2) full-time and One part-time 

Every additional 500 or fraction thereof One (1) additional full-time (hazardous) 

Every additional 250 or fraction thereof One (1) additional full-time (Highly hazardous) 

b) For non-hazardous workplaces: 

Number of Workers Minimum number of Safety Officers 

1-250 One (1) part-time 

251-500 Two (2) part-time 

501-750 One (1) full-time 

751-1000 Two (2) full-time 

Every additional 500 or fraction thereof One (1) additional full-time 

4) Duties of the Safety Officer: The duties of the safety officer are specified under Rule 

1040 of these Standards. A part-time safety officer shall be required to perform the duties 

of safety officer at least six (6) hours per week. 

5) The employment of a full-time safety officer may not be required if the employer 

enters into a written contract with a qualified consultant or consulting organization whose 

duties and responsibilities shall be the duties of a safety practitioner as stated in these Rule. 

The employment of a consultant, however, will not excuse the employer from the required 

training of his supervisors or technical personnel. 

Rule 1034: Accreditation: 

The Secretary, upon the recommendation of the Bureau Director, may accredit any 

qualified safety and health consulting and training organization and, through the Bureau, 

may issue accreditation to any qualified safety and health personnel, individual to carry out 

the provisions of these Standards. 

1034.01: Requirements for Accreditation of a Practitioner in Occupational Safety and Health 

Any application for accreditation shall satisfy the enumerated requirements: 

A. Practitioner in Occupational Safety and Health 

1. The individual must have completed the 40-hour Basic Occupational Safety and Health 

Training Course as prescribed by the Bureau; 

2. Must have at least three (3) years of relevant experience in occupational safety and 

health; 

3. Must possess the minimum qualifications stated under Rule 1964.01 nos. 1 to 5, 

whichever may be applicable; and

260 


4. Must be duly-licensed to practice his/her profession in the Philippines; 

5. If the applicant is a graduate of any 4 or 5-year college course without a license, he/ 

she must have at least four (4) years relevant experience in any of the sub-components in a 

field of specialization as enumerated in Annex ìAî; and 

6. If the applicant is a college undergraduate he/she must have at least ten (10) years 

relevant experience in occupational safety and health. 

B. Consultant in Occupational Safety and Health 

1. The applicant must be an accredited practitioner for at least five (5) years with 

experience in at least two (2) fields of specialization enumerated in Annex ìAî. 

2. Must have experience in policy formulation and development, monitoring and evaluation, 

and implementation of occupational safety and health management systems. 

3. Must have completed the 80-hour Advanced Occupational Safety and Training Course 

as prescribed by the Bureau; and 

4. Must have earned an additional 480 hours of training/seminar or related learning 

processes in various fields of occupational safety and health from accredited organizations 

or institutions authorized by law. 

C. Occupational Safety and Health Consulting Organization 

1. The applicant must be composed of two or more accredited occupational safety and 

health consultants. 

2. Must submit a certified true copy of business registration, licenses, and permits to 

operate. 

3. Must submit the organizationís profile. 

D. Occupational Safety and Health Training Organization 

1. A Bureau-prescribed and/or approved course of study shall be used or followed by 

accredited organizations. Any deviation from the prescribed training must be with the previous 

approval of the Bureau. 

2. The organization must provide adequate training facilities that include safety and 

health-related equipment, manuals and modules, library, training rooms, audio-visual and 

other training resources and paraphernalia. 

3. Trainers must be composed of persons with the following qualifications: 

a) Must have completed the 40-hour basic occupational safety and health training 

course;


b) Must have completed at least 24 hours of a Training of Trainers course; and 

c) Must have at least three (3) years of experience in the design, conduct and evaluation 

of any OSH training program 

4. The applicant must submit certified true copies of business registrations, licenses, 

and permits to operate. 

5. Submission of the organizationís profile. 

1034.02: Issuance and validity of certificate of accreditation and identification card 

After evaluation and verification by the Bureau, a certificate of accreditation valid for 

three (3) years and an identification card shall be issued to any applicant who has satisfactorily 

met all the requirements specified in this rule, and upon payment of the prescribed fee as 

provided for under Rule 1974 of the Standards. 

1034.03: Duties and responsibilities of Practitioners in Occupational Safety and Health 

A. Practitioners in Occupational Safety and Health 

1. To develop, implement and promote occupational safety and health programs 

in the workplace. 

2. To advise and assist the employer in complying with the provisions of the 

Standards, especially in the submission of the reporting requirements. 

3. To perform at least a quarterly appraisal/assessment of the implementation of 

occupational safety and health programs in the workplace 

4. To prepare an annual report of safety and health programs of establishments. 

5. To be present during the scheduled safety inspections by authorized government 

agents and as requested during regular health and safety committee meetings. 

6. For Occupational Health Personnel, the duties shall be in accordance with Rule 

1960. 

B. Occupational Safety and Health Consultants/Consulting Organizations 

1. To assist, advise or guide the employer in complying with the provisions of 

these Standards, or including the development of health and safety programs. 

2. To make at least a quarterly appraisal of programs and safety performance of 

the establishment, including the activities of the health and safety committee. 

3. In the absence of a Safety Officer, to be present during scheduled safety 

inspections by authorized government agents and as requested during regular 

health and safety committee meetings and to render at least six (6) hours of 

service a week in the establishment in the performance of these activities.

262 


4. To advise and assist the employer in complying with the reporting requirements 

of the Standards. 

C. Duties and Responsibilities of OSH Training Organizations 

1. To develop, monitor and evaluate their training programs on occupational safety and 

health. 

2. To conduct continuing OSH programs to increase the number of competent and 

qualified personnel/individuals to implement the provisions of the Standards. 

3. To submit to the Bureau the following requirements: 

a) Yearly calendar of training activities; 

b) List of trained individuals, training content and names and topics of speakers/ 

lecturers, five (5) days after the conduct of every training 

c) Program on updating trainerís knowledge and skills. 

1034.04: Renewal of Accreditation 

Accreditation for practitioners and consultants shall be renewed every three (3) years 

upon compliance of the following: 

1. Submission of updated bio-data with recent passport size and 1x1 pictures. 

2. Presentation of original and submission of certified true copies of additional and 

relevant occupational safety and health training certificates. 

3. Submission of annual performance report as certified by the employer/s/client/s. 

4. Payment of renewal/annual fee. 

Accreditation for both training and consulting organizations shall be renewed every 

three (3) years upon compliance of the following: 

1. Submission of an updated organization profile. 

2. Submission of calendar of trainings or services and other related OSH activities. 

3. Submission of an annual accomplishment report on trainings conducted (Safety 

Training Organization) and consultancy services provided (Consulting Organization). 

4. Submission of an updated resume of trainers (for Safety Training Organization) and 

consultants (for Consulting Organizations). 

5. Submission of photocopy of certificate of accreditation. 

6. Submission of monitoring and evaluation reports, and 

7. Payment of renewal/annual fee.


1034.05: Suspension/Cancellation of Accreditation 

Accreditation of OSH practitioner/consultant/consulting/training organization may be 

suspended or cancelled by the Secretary after due process and upon the recommendation 

of the Director for any of the following reasons: 

Suspension: 

1. Inactive as Occupational Safety and Health practitioner/consultant/training/ 

consulting organization for three (3) consecutive years. 

2. Failure to renew accreditation with the Bureau on or before the anniversary 

date of the original accreditation. 

3. Non-compliance with the provisions or other requirements of this rule. 

Cancellation: 

1. Convicted for criminal offense involving moral turpitude. 

2. Violation of professional ethics. 

3. Two consecutive suspensions. 

Reactivation: 

An appeal for reactivation of suspended accreditation shall be filed with the Bureau for 

consideration. 

1035: Audit System: 

A regular audit shall be done by the Bureau to determine compliance with the Provisions 

of Rule 1034. 

1036: Prohibition in the Practice of Occupational Safety and Health 

1. No person or organization shall be allowed, hired or otherwise employed as a 

practitioner/consultant in the practice of occupational safety and health unless the requirements 

of this rule are complied with. 

2. Foreign nationals may be issued accreditation upon compliance with the provisions of 

this rule and subject to the requirements of existing Philippine Laws and Regulations. 

All policy issuances, rules and regulations or part/s thereof inconsistent with any provision 

of this Order is hereby repealed, modified, superseded or amended accordingly. 

The abovementioned amendments shall take effect fifteen (15) days after announcement 

of their adoption in a newspaper of general circulation. 

Adopted: 18 December 2001.

264 


RULE 1030: ANNEX ìAî 

MAJOR FIELDS OF SPECIALIZATION OF PRACTITIONERS AND CONSULTANTS ON 

OCCUPATIONAL SAFETY AND HEALTH: 

A. Occupational Safety And Health Practitioners 

1. Occupational Health Practitioner, such as: 

- Occupational Health Physician 

- Occupational Health Nurse 

- Dentist 

2. Occupational Hygiene Practitioner 

3. Occupational Safety Practitioner in the following industry group: 

- Agriculture 

- Fishing 

- Mining and Quarrying 

- Manufacturing (under the following divisions): 

a. Food Products and Beverages 

b. Tobacco Products 

c. Textiles 

d. Wearing Apparel 

e. Tanning and Dressing of Leather; Manufacture of Luggage, Handbags and 

Footwear 

f. Wood, Wood Products and Cork, Except Furniture; Manufacture of Articles of 

Bamboo Cane, Rattan and the like; Manufacture of Plaiting Materials 

g. Paper and Paper Products 

h. Publishing, Printing and Reproduction of Recorded Media 

i. Coke, Refined Petroleum and Other Fuel Products 

j. Chemicals and Chemical Products 

k. Rubber and Plastic Products 

l. Other Non-Metallic Mineral Products 

m.Basic Metals 

n. Fabricated Metal Products, except Machinery and Equipment 

o. Machinery and Equipment 

p.Office, Accounting and Computing Machinery 

q.Electrical Machinery and Apparatus 

r. Radio, Television and Communication Equipment and Apparatus 

s. Medical, Precision and Optical Instruments, Watches and Clocks 

t. Motor Vehicles, Trailers and Semi-Trailers 

u. Other Transport Equipment 

v. Repair of Furniture 

w. Recycling 

x. Manufacturing


- Electricity, Gas and Water Supply 

- Construction 

- Wholesale and retail trade; repair of motor vehicles, motorcycles and personal 

and household goods 

- Hotels and restaurants 

- Transport, storage and communication in the following division: 

a. Land transport; Transport Via Pipelines 

b. Water Transport 

c. Air Transport 

d. Supporting and Auxiliary Transport Activities; Activities of Travel Agencies 

e. Post and Communications 

- Financial Intermediation 

- Real Estate, Renting and Business Activities 

- Public Administration and Defense; Compulsory Social Security 

- Education 

B. Occupational Safety And Health Consultants: 

1. Occupational Health Consultant - 

Specific area of specialization/s: 

- Occupational epidemiology and bio-statistics 

- Occupational medicine 

- Workerís rehabilitation 

- Toxicology and risk assessment 

- Ergonomics 

- Womenís health and reproductive hazards 

- Maritime health 

- Health of working children and other vulnerable sectors 

2. Occupational Hygiene Consultant ñ 


- Analytical chemistry 

- Industrial ventilation 

- Work exposure assessment 

- Work environment control/workplace improvement 

2. Occupational Safety Consultant ñ 


- Fire prevention and control 

- Machine safety 

- Electrical safety 

- Materials handling and storage 

- Construction safety

266 


- Accident/damage analysis 

- Safety programming 

- Safety inspection 

- Accident investigation 

- Safety audit 

- Safety program evaluation 


1161 : Definitions : 

--o0o-- 

RULE 1160 

Boiler 

(1) ìSteam Boilerî shall mean any closed vessel wherein steam or other vapor is or is 

intended to be generated above atmospheric pressure by the application of fire, by the 

product of combustion, by electrical means, or by other heat source. 

(2) ìPower Boilerî shall mean a steam boiler with a working pressure exceeding 1.055 kg./ 

cm.2 gauge (15psig). 

(3) ìMiniature Boilerî shall mean any power boiler which does not exceed any of the 

following limits: 

a.) 40.5 cm. (16 in.) inside diameter of shell; 

b.) 106.5 cm. (42 in.) overall length of the shell; 

c.) 1.85 m.2 (20 ft.2) water heating surface or; 

d.) 7.03 kg./cm.2(100 psig) maximum allowable working pressure. 

(4) ìLow Pressure Heating Boilerî shall mean a steam boiler used exclusively for operation 

at a pressure not exceeding 1.055 kg./cm.2 (15psig) or a temperature not exceeding 121 0 C 

(250 0 F). 

(5) ìHot Water Boilerî a vessel completely filled with water and is intended to be heated 

above atmospheric pressure by the application of fire or such products of combustion by 

electrical means, or other heat source. 

(6) ìWorking Pressureî shall mean gauge pressure above atmospheric pressure in kg./ 

Cm.2 g (psig). 

(7) ìBoiler Horsepowerî in the absence of Manufacturerís Data Boiler Horsepower shall 

mean the equivalent of 0.95 sq.m. (10 sq. ft.) of heating surface for vertical type boilers and 

the equivalent of 0.46 sq.m. (5 sq.ft.) of heating surface for other types. 

1162 : General Provisions: 

(1) No boiler shall be installed and/or operated in the Philippines without the permit issued 

for the purpose by the Secretary of Labor or his/her authorized representative.


(2) Application for installation of a new boiler shall be filed with the Bureau or in the 

Regional Office with available professional mechanical engineer (PME) for processing and 

verification accompanied by the manufacturerís data sheets, working drawings, foundation 

design computation, installation and location plans, all in five (5) copies (white print). 

(3) Application to locally fabricate boilers shall be filed in five (5) copies with the Bureau or 

in the Regional Office concerned, accompanied by design drawings, computations and 

specifications. 

(4) Major repair work on pressure parts of boilers shall be done after the details of the 

repair and the design plan shall have been processed and cleared by the Bureau or Regional 

Office. After repairs, the boiler shall not be operated or used without the permit issued by the 

Secretary. 

(5) Any removal and/or change of location or ownership of a steam boiler shall be reported 

to the Bureau or Regional Office concerned by the old and new owners not later than thirty 

(30) days after the sale or transfer. Such boilers shall not be operated or used without the 

required permit. 

(6) All portable pressure vessels with operating permit issued by the Secretary or his/her 

authorized representative shall be honored in the Philippines during the period covering the 

permit. 

(7) The minimum personnel requirement in the operation of boilers shall be in accordance 

with Section 34, Article IV of R.A. 8495, otherwise known as ì The Philippine Mechanical 

Engineering Act of 1998î. 

1162.01 : Standards Requirements: 

For purposes of fabrication, as well as inspection, checking, test, and other consideration 

prior to the approval /clearance of any of the fabrication and installation application and 

plans and use of any boiler, the following in accordance with the latest revision are hereby 

adopted : 

1. ASME Boiler and Pressure Vessel Code; 

2. ASME Code for Pressure Piping; 

3. API code for petroleum gases and liquids; 

4. ISO code; and 

5. The Philippine Society of Mechanical Engineers (PSME) Code. 

1162.02 : Inspection of Boilers: 

(1) The Regional Office concerned through its authorized technical safety inspectors shall 

conduct inspection, both internally and externally on all boiler parts and appliances on the 

following phases of work: 

a.) During construction or fabrication, if manufactured in the Philippines and 

hydrostatically tested at 1.5 times the design pressure after completion of work;

268 


b.) Before being placed into service after completion of installation and hydrostatically 

tested at 1.5 times the design pressure; 

c.) Before being placed into service after completion of reconstruction or repair and 

hydrostatically tested at 1.2 times the maximum working or operating pressure; and 

d.) Periodically at intervals of not exceeding twelve (12) months. 

The Regional Office concerned shall serve Notice of Inspection for the annual inspection 

of boiler to the owner/user thirty (30) days before the expiration of the permit to operate the 

boiler and at exact date of scheduled inspection, the owner/user shall have the boiler drained, 

cooled, opened-up and thoroughly cleaned for the conduct of internal and external inspection 

on all boiler parts and appliances. Hydrostatic pump shall always be made ready just in case 

the boiler is to be subjected to a hydrostatic test. 

(2) The result of internal and external conduct of inspection on all boiler parts and appliances, 

may upon the discretionary power/privilege of the technical safety inspection authority, 

decide whether or not to subject the boiler to a hydrostatic test. 

(3) Boiler subjected to hydrostatic test shall be: 

a.) with a test pressure equal to 1.2 times the maximum working or operating pressure. 

The minimum temperature of the water used shall not be less than 21 0 C (70 0 F) and a 

maximum temperature not to exceed 71 0 C (160 0 F). 

b.) under proper control, to reach the required test pressure gradually, and in no case 

shall this test pressure be exceeded by more than six percent (6%). 

(4) During hydrostatic test, the safety valves shall be removed and the valves disc held 

down by means of testing clamps and not by screwing down the compression screw upon 

the spring. 

(5) In lieu of hydrostatic test, radiographic, ultrasonic, thickness gauging magnetic particle, 

liquid penetrant and/or other equivalent non-destructive test shall be performed on the boiler 

head, shell and tubes, including operational test on boiler instruments and appliances. All test 

shall be performed in the presence of the inspection authority. The test results shall be 

certified true and correct, signed and sealed by a professional mechanical engineer (PME) 

and signed by the owner / user as well. 

(6) Boilers found unsafe shall not be operated until the boiler defect/s is/are corrected and 

their fittings are in good condition to ensure safe operation. 

1162.03 : Age Limit of Lap-Riveted Boilers: 

The age limit of a horizontal return tubular boiler having a longitudinal lap joint and carrying 

over 3.5 kg./cm.2g. (50 psig) pressure shall be twenty-five (25) years. No riveted joint boiler 

shall be discontinued from service solely on account of age. However, within a period of five 

(5) years after the effectivity of the standards, a joint lap-riveted boiler may be used provided 

that the lap joints are thoroughly investigated particularly for cracks in the lap-joints, the 

boiler tested hydrostatically to 1.2 times its working pressure and the general condition of 

the shell, tubes, sheets, joints rivets and other parts warrant further use of the boiler, as found 

by the safety inspector in the presence of the ownerís/establishmentís plant mechanical


engineer, provided however that the total service age of the boiler is not more than twenty 

five (25) years. 

1162.04 : Construction of Steam Boilers: 

(1) steam boilers are to be constructed in accordance with the procedures/process of the 

standards requirements provided under Rule 1162.01 

(2) Steam boilers, their fittings and attachments shall be: 

a. designed to adopt to the condition of their use; and 

b. constructed of sufficient strength to sustain internal pressure to which they are normally 

subjected. 

1162.05 : Boiler Records: 

(1) Every boiler shall be accompanied by a certificate showing all the technical specifications 

used by the manufacturers including all the design standards and dimensions and the 

makers nameplate affixed on the boiler. 

(2) All second hand or rehabilitated boilers shall be accompanied by detailed working 

drawings and certificates executed by a Professional Mechanical Engineer calculating the 

ultimate tensile stress which shall not exceed 3873 kg./cm.2 and (55000 psi), the joint 

efficiency of not more than 90% for radio graphed and heat treated butt fusion weld, and a 

factor of safety of not less than five (5). 

(3) The certificates shall also contain the results of all the control test conducted during the 

manufacture of the material and the construction of the boiler. 

(4) The certificates shall be kept on file by the owner, ready and available to present during 

the course of inspection. 

(5) Every boiler owner/user shall keep a boiler maintenance register which shall show the 

dates of all the tests, internal and external inspections, replacements and repair. 

1163 : Power Boilers : 

1163.01 : Boiler Rooms : 

(1) Clearance around the boiler to the boiler room wall or any equipment shall be at least 

100 cm. (3.28 ft.). Boiler room shall have two independent doors for easy access. 

a. in separate buildings of fire-resistant materials used for no other purpose and situated 

not less than 3m. (10 ft.) away from buildings not forming part of the factory, or 

b. in structure of fire resistant materials if situated in the same factory buildings or in 

close proximity to other factory buildings.

270 


(2) Where power boiler room adjoins workrooms in which flammable or explosive substances 

are manufactured, used, handled, or liberated, there shall be no exits or other wall openings 

in the intervening walls. 

(3) Power boiler rooms, blow-offs, ash pits or high pressure steam line tunnels and other 

places where there is danger or workers being trapped in the event of explosion or rupture of 

steam lines, shall be provided with not less than (2) adequate exits which shall be kept clear 

of any obstructions. 

(4) Rails, walls, runways and stairs of iron or steel construction with non-slip surface shall 

be provided for convenient and safe access to overhead valves, water columns, feed water 

regulators and other fittings. 

(5) Runways located on top or alongside a battery of power boilers shall be provided with 

not less than two (2) means of descent. 

(6) Power boiler rooms shall be of sufficient height to permit installation and operation of 

all valves and safety devices with a minimum clearance of 90 cm. (3 ft.) above the highest 

valve fitting or levers. 

(7) Pits in power boiler rooms shall be covered or guarded by standard railings and toeboards. 

(8) Where power boilers are supported by structural steel work, the support shall be 

located or insulated that the heat from the furnace cannot impair the strength of the steel. 

(9) Power boiler settings shall be provided with suitably packed openings or sleeves of 

sufficient size to permit the expansion and contraction of the pipes. 

(10) Wet-bottom stationary boiler shall have a space of not less than 30 cm. (12 in.) 

between the bottom of the boiler and the floor line to provide access for maintenance or 

inspection. 

(11) Clearance around the boiler to the boiler room wall or any equipment shall be at least 

90 cm. (3 ft.). Boiler room shall have two independent doors for easy access. 

1163.02 : Factor of Safety: 

The working pressure shall be reduced to maintain a factor of safety of not less than five 

(5) or such other factor as may have been specified/fixed in the specification, to which the 

boiler was made by increasing the factor of safety by ten percent (10%), or more as 

determined by the enforcing inspection authority under the following conditions: 

a. the inspection shows signs of deterioration affecting the integrity of the boiler/s 

unless repair is/are undertaken; and 

b. after twenty five (25) years of service 

1163.03 : Access and Inspection :


Power boiler or parts thereof shall be equipped with suitable manholes or other openings 

for inspection, examination and cleaning. 

(1) Hand-hole openings in heads or shells of power boilers shall not be less than 70 mm. x 

90 mm. (2 3/4 in 3 1/2 in.). 

(2) Each power boiler shall be equipped with at least one (1) safety valve if the heating 

surface is 46.5 sq.m. (500 sq.ft.) or less and two (2) or more if the heating surface is over. 

The safety valves shall be: 

a.) place as close as possible to the boiler; 

b.) connected to the boiler independent of any other steam connection; and 

c.) place between the boiler and the discharge point when installed in the pipeline. 

(3) The safety valve or valves on power boilers shall be of sufficient capacity to discharge 

all the steam generated by the boiler without allowing the pressure to rise to more than 

a.) six percent (6%) above the maximum allowable working pressure; or 

b.) six percent (6%) above the highest pressure to which any valve is set. 

(4) Seats and discs of safety valve for power boilers shall be of suitable corrosion-resistant 

materials and the seat shall be secured on the valve body to avoid the possibility of the seat 

lifting off. 

(5) Safety valves for power boilers shall be constructed, tested and maintained in the 

following manner: 

a.) the failure of any part will not obstruct the free and full discharge of steam from the 

valves; 

b.) no shock injurious to the valves or to the boiler shall resort from its operations; and 

c.) the valve can be turned on its seat. 

(6) Safety valves for power boilers shall be: 

a.) capable of being adjusted and set to operate without chattering. 

b.) sealed or otherwise protected to prevent tampering by any unauthorized person; 

c.) provided with a special means for lifting the valve for testing purposes; and 

d.) located to enable the boiler attendant to hear readily the discharge. 

(7) Safety valves discharge outlets for power boiler shall be located or piped out away 

from running boards and platforms, preferably not less than 3 meters. (10 ft.) above the 

platforms. 

(8) When the discharge pipes are used on safety valves for power boilers, they shall be: 

a.) not less in cross-sectional area than the full area of the valve outlets, and 

b.) fitted with open drains to prevent water lagging in the upper part of the valves or in 

the pipes.

272 


(9) When mufflers are used on safety valves for power boilers, they shall: 

a.) have sufficient outlet area to prevent back pressure from interfering with the proper 

operation and discharge capacity of the valves; and 

b.) be constructed to avoid any possibility of obstruction of the steam passage due to 

deposits. 

(10) Superheaters arranged in a manner that they can be isolated from power boilers 

shall be located near the steam outlet. However, valve or valves may be located anywhere in 

the lengths of the outlet heater if there is a uniform flow of steam through the superheater 

tubes and heater. 

(11) Economizers used on power boilers shall be equipped with at least one (1) safety 

valve provided with seats and discs of corrosion resistant materials, if there is an isolating 

valve between the drum and economizer. 

(12) Miniature boilers shall be equipped with sealed safety valves connected directly to the 

boiler. Miniature boilers with no extraction of steam (closed system), may in addition to 

safety valves, be provided with a rupture disc relieving device. 

1163.04 : Stop Valves: 

(1) Steam discharge outlets on boilers, except safety valves, shall be equipped with stop 

valves located at an accessible point in the steam delivery line and as near the boiler as 

practicable. 

(2) Quick and convenient means of manipulating the principal stop valves on power boilers 

shall be provided. 

a. by extending the valve spindles so that the valve wheels may be operated: 

i. from the floors of the boiler rooms by means of chains, gears or other mechanical 

devices, or 

ii. from outside the boiler rooms in case of emergency. 

b. by installing remote control stations for electrically operated valves in a protected space 

where they may be operated without danger. 

(3) When two or more power boilers are connected to a common steam main, the steam 

connection from each boiler equipped with a manually opened valve shall be fitted with two 

stop valves having between them an ample free-flow drain. The discharge shall be visible to 

the operator while manipulating the valves. 

(4) When stop valves on power boilers are located where water may accumulate, ample 

drain shall be provided. 

1163.05 : Water Column Pipes: 

(1) Pipes connecting water columns to power boilers shall not be less than 25 mm. (1 in.) 

pipe size, and as short and direct as possible.


(2) Horizontal return to water columns shall be taken from the top of the shell in the upper 

part of the head and the water connections from a point not less than 15 cm.(6 in.) below 

the lowest center line of the shell. 

(3) On the fire box type of power boilers, the water connections shall be taken from a point 

not less than 25 cm. (10 in.) below the lowest water line or as near thereto as possible, and 

no case less than 45 cm. ( l8 in.) above the mud ring. 

(4) Whenever practicable, water connection from power boilers to water column shall be 

provided with a cross at each right angle turn, to facilitate cleaning. 

(5) Water columns on power boilers shall be fitted with drain cocks or drain valves with 

suitable connections to a safe point of disposal. 

(6) No outlet connection allowing the escape of an appreciable amount of steam or water 

shall be placed on pipes connecting water column to medium and high pressure boilers, 

except for damper regulators or feed water regulators, drain, steam gauges or apparatus of 

similar form. 

1163.06 : Steam Gauges: 

(1) Each power boiler shall be equipped with steam pressure gauge, placed as follows: 

a. free from vibrations; 

b. conveniently adjusted; and 

c. afford a clear and unobstructed view to the attendant from the usual operating 

position, in front or at the side. 

(2) Steam gauges, in satisfactory working condition for power boilers, shall be connected 

to the steam space or to the water column on its steam connection by siphons or equivalent 

devices which shall be: 

a. of sufficient capacity to keep the gauge tube with water; and 

b. arranged that the gauge cannot be shut-off from the boiler, except: 

i. by a cock placed near the gauge and provided with the level handle fitted 

parallel to the pipe when the cock is open, or 

ii. by a cock or shut-off valve of 35kg/cm2g (500psig.) rating or over. 

(3) Steam gauges connection for power boilers shall be as short as practicable. 

(4) Dials for steam gauges for power boilers shall: 

a. be of size and marked that the graduations of the pointer can be clearly determined 

by a person with normal vision from a distance equal to one and one half (1 1/2) times the 

width of the boiler front; 

b. be graduated to not less than 1 1/2 times the pressure at which the safety valve is 

set, preferably to about double such pressure. The graduation shall be so arranged that the 

pointer will be at nearly vertical position when indicating the working pressure; and 

c. have the working pressure indicated in red on the dial.

274 


(5) All steam gauges in any power boiler room shall be of the same type, size and graduation. 

(6) Each power boiler shall be provided with a valve connection near the regular connection 

of the steam gauges for the exclusive purpose of attaching gauge set. 

1163.07 : Water Gauge Glasses: 

(1) Each power boiler, except once-through boilers with no fixed steam and water-lines, 

shall be equipped with at least one (1) water gauge glass, which shall be: 

a. located within the range of vision of the boiler attendant; 

b. fitted at top and bottom with quick closing valves easily closed from the floor in case the 

glass breaks; 

c. connected to the water column or directly to the boiler by piping of not less than 12 mm. 

(15/32 in.) diameter; 

d. equipped with a valve drain piped to a safe point of disposal; and 

e. provided with a wire glass or other suitable guard for the protection of workers from flying 

glass or escaping hot water in case of breakage, and such guard shall not obstruct free 

observation of water level. 

(2) Water gauge glasses on power boilers shall be located in such a way that when the 

visible water level is at its lowest reading in the glass, the reading should not be less than: 

a. 75 mm. (3 in.) of water over the highest point of the tubes, flues or crown sheets in 

horizontal fire tube power boilers; or 

b. 50 mm. (2 in.) of water above the lowest permissible level in water tube power boilers. 

(3) Miniature boilers operating on the closed system, where there is insufficient space for 

the usual water gauge glass, may be provided with water level indicators of the glass bullís 

eye type. 

1163.08 : Gauge Cocks: 

(1) 

a. Subject to the provisions of the succeeding sub-paragraphs, each power boiler shall be 

equipped with three or more gauge cocks located within the range of the visible length of the 

water glass; 

b. When the boiler is equipped with water gauge independently connected to the boiler and 

located not less than 70 cm. (28 in.) apart on the same horizontal line may not be provided 

with gauge cocks; 

c. Gauge cocks shall be equipped with at least one (1) try-cock each; and 

d. For boilers of the locomotive type not over 90 cm. (35 in.) diameter, and for boilers of the 

fire box and watering types with a heating surface not exceeding 5 sq.m. (53 sq. ft.) only two 

(2) gauge cocks shall be required. 

(2) Gauge cocks located above normal reaching distance from the floor or working 

level shall be provided with:


a. permanently attached rods with chains for operation from the floor, and 

b. suitable means to prevent water or steam discharging on workers manipulating the rods or 

chains. 

1163.09 Fusible Plugs : 

(1) Fusible plugs, when used on power boilers, as additional low water alarms, shall be 

renewed at intervals not exceeding twelve (12) months. Casings, which have been used, 

shall not be refilled. 

(2) Fusible plug, after inspection, should be replaced with the same or equivalent 

specifications of the original plug. 

(3) Fusible plugs shall not be used on power boilers operating at pressures exceeding 

17.5 kg./cm.2g (250 psig.). 

(4) Steam actuated fusible plugs, when used in power boilers, shall be located that they 

can be operated when the water level is at a point where a fire actuated fusible plug is 

located. 

1163.10 : Blow-Off Requirements : 

(1) Each power boiler, except once-through boilers with no fixed steam and water line, 

shall be equipped with at least one (1) blow-off pipe fitted with valve cock directly connected 

to the lowest water space, and the boiler shall be designed and installed that all water can be 

drained from it. 

(2) Each bottom blow-off pipe on a power boiler forming a part of a range of boilers having 

a common blow-off pipe, drain or pump, shall be fitted with: 

a. two (2) slow opening valves, or 

b. one (1) slow opening valve, and one (1) quick opening valve or cock, or 

c. a valve operated by a key which can only be removed when the valve is closed. The 

key shall be the only one available for the blow-off valves of the range of the boilers. 

(3) Valves for bottom blow-off pipes on power boilers shall be free from dams or pockets 

which may collect sediment and restrict the flow of water. 

(4) When exposed to direct furnace heat, bottom blow-off pipes on power boilers shall be 

protected by fire bricks or other heat-resistant materials arranged that the pipes can be 

readily inspected. 

(5) Blow-off pipings on power boilers shall discharge at a point where there is no danger 

of injury to workers, and shall not be connected to the sewer or the boiler, unless first passed 

through a blow-off tank. 

(6) Blow-off tanks when used, shall be: 

a. provided with a vent pipe of sufficient size to prevent the accumulation of pressure 

in the tank; and

276 


b. located that all parts are accessible for inspection. 

1163.11 : Feed Water Systems: 

(1) The discharge end of feed water pipes for boilers shall be: 

a. located that the feed water at no time will discharge: 

i. directly against surfaces exposed to direct radiation of the fires or to gases at high 

temperature, and 

ii. close to any riveted joints of the furnace sheets or to the shell. 

(2) Feed pipes for power boilers shall be provided with a check valve near the boilers and 

a valve or stop cock between the check valve and the boiler. 

(3) When two or more power boilers are fed from a common source, the main feed pipe 

shall also be provided with a check valve between the water supply to prevent the water from 

backing out from one boiler to another. 

(4) Power boilers equipped with duplicated feed water arrangements shall conform to the 

requirements of 1163.09 on water supply source. 

(5) Where economizers or other feed water heating devices are connected directly to 

power boilers without intervening valves, the required feed and check valves shall be placed 

on the inlets of the economizers of water heaters. 

(6) Miniature boilers shall be provided with at least one (1) feed pump or other feeding 

device except on closed system boilers where a suitable connection or opening shall be 

provided to fill the boiler when cold or when the water main has sufficient pressure to feed 

the boiler at any time while under pressure. 

1164 : Heating Boilers : 

1164.01 : Working Pressure and Temperature : 

(1) The maximum allowable pressure of boiler used exclusively for low pressure steam 

heating shall not exceed 1.055kg./cm.2g (15psig). 

(2) The maximum allowable working temperature at or near the outlets of hot water boilers 

shall not exceed 1210C (2500F). 

(3) Where the pressure on a low pressure steam boiler or the temperature of a hot water 

boiler exceeds any of those specified in the preceding paragraphs (1) and (2) the requirements 

of Rule 1163 shall BE USED. 

1164.02 : Access and Openings : 

(1) Steel plate low pressure steam boiler shall be provided with suitable manhole or washout 

openings to facilitate inspection, cleaning and maintenance. However, manhole openings


may be omitted where the size or construction of the boiler is such that entrance is 

impracticable. 

(2) Manhole, handhole or washout openings in heads shall be provided, except boilers 

constructed where such openings are inaccessible or boilers of the locomotive or fire-box 

type when set in brick or boilers used exclusively for hot water heating and are not in 

compliance with the requirements of Rule 1163.03. 

(3) Cast iron low pressure steam or hot water boiler shall be provided with suitable washout 

openings to permit the removal of sediments. 

(4) Access doors in steel-plate low pressure steam boiler settings shall not be less than 30 

cm. x 40 cm. (12 in. x 16 in.). 

1164.03 : Safety Valves : 

Each low pressure steam boiler shall be equipped with at least one (1) safety valve which 

shall: 

(1) Conform with the requirements of Rule 1163.03 (2) to (8) and 

(2) be sealed and adjusted to discharge at a pressure not exceeding 1.055kg./cm.2g 

(15 psig) with the seal attached so that the valve cannot be taken apart without breaking the 

seal. 

1164.04 : Water Relief Valves : 

(1) Each hot water boiler shall be equipped with at least one (1) water relief valve placed 

on a vertical dead-end pipe attached to the cold water supply pipe close to the boiler or 

directly to the boiler and the discharge point free from any intervening valve or obstruction. 

(2) Water relief valves for hot water boilers shall be set to open at or below the maximum 

allowable working pressure. 

(3) Diaphragms, valves, seats or discs of rubber or of composition liable to fall due to 

deterioration when subjected to hot water or steam shall not be used on water relief valves 

for hot water boilers. 

(4) Water relief valves in hot water boiler shall be located where there is no danger of 

scalding persons. 

1164.05 : Stop Valves : 

(1) Where a stop valve is used in the supply pipe connection of a single low pressure 

steam or hot water boiler, a stop valve shall also be provided in the return pipe connection. 

1164.06 : Water Column Pipe : 

Water column pipes on low pressure steam or hot water boilers shall conform to the 

requirements of Rule 1163.05 (1) to (6).

278 


1164.07 : Steam Gauges: 

Each low pressure steam boiler shall be equipped with steam pressure gauge, conforming, 

with the requirements of Rule 1163.06. However, scales on dials of steam gauges for low 

pressure steam boiler shall be graduated to not less than 2 kg./cm.2g (28.5 psig) and the 

face of the pressure gauge not less than 75 mm. (3 in.). 

1164.08 : Pressure or Altitude Gauge : 

(1) Each hot water boiler shall be provided with a pressure or altitude gauge connected to 

the boiler in a manner that it cannot be shut-off from the boiler except by a cock placed on 

the pipe near the gauge and provided with a tee or level handle so fitted that it will be parallel 

to the pipe when the cock is open. 

(2) Scales on dials of pressure and altitude gauges on hot water boiler shall: 

a. be graduated to not less than one and one-half (1 1/2) times the maximum allowable 

pressure of the boiler; and 

b. have the maximum permissible working pressure indicated in red. 

1164.09 : Pressure Combustion Regulators : 

When pressure combustion regulators are used on low pressure steam boilers, they shall 

operate to prevent the steam pressure from rising above 1 kg./cm.2g(14.25 psig). 

1164.10 : Thermometers : 

Hot water boiler shall be equipped with a thermometer : 

a. properly located for easy reading when observing the water pressure; and 

b. sufficiently connected to indicate at all times the temperature of the water in the boiler. 

1164.11 : Temperature Combustion Regulators: 

Each low pressure steam boiler shall be equipped with one or more water gauge glasses. 

(1) With the lower fitting provided with a valve or pet cock to facilitate cleaning, or 

(2) Otherwise conforming to the requirements of Rule 1163.08 (1) and (2). 

1164.12 : Installation of Pipes : 

Hot water heating system shall be so installed that the fluid release column cannot be 

accidentally shut-off. 

1164.13 : Blow-Off Equipment : 

Each low pressure steam or hot water boiler shall be equipped with a blow-off connection 

conforming with the provisions of Rule 1163.10 (1) to (6). 

1164.14 : Feed Piping:


(1) Feed or make-up water shall not be discharged directly against any part of a low 

pressure steam boiler exposed to direct radiant heat. 

(2) Where feed or make-up water is introduced into hot water boilers from a steam or 

water pressure line, the line shall be connected to the piping system and not directly to the 

boiler. 

(3) Feed water shall not be introduced into low pressure steam or hot water boiler through 

the openings used for the water column gauge glasses or gauge cocks. 

1164.15 : Automatic Fuel Cut-Off and Water Feeding Devices : 

Each automatically fed steam or vapor system boiler shall be equipped with an automatic 

low-water cut-off or water feeding device constructed and located that when the surface of 

the water falls to the lowest safe water line: 

a. the water inlet valve cannot feed water into the boiler through the float chamber; and 

b. the device will automatically : 

i. cut-off the fuel supply; or 

ii. supply requisite feed water; or 

iii. simultaneously cut-off the fuels and feed water supply. 

1165 : Cleaning and Repairs: 

1165.01 : 

Repairs and adjustments, such as tightening up flanged fittings shall not be made on 

boilers and steam lines while under pressure. 

1165.02 : 

Before allowing workers to enter boilers for the purpose of making repairs, all blow-off, 

feed water, main steam stop and other valves shall be closed, locked and marked with tags 

or other devices to indicate that there are workers inside. 

1165.03 : 

Where the boiler to be cleaned or repaired is one of a battery of two or more boilers, and 

any of them is in service, the main steam valves shall be tightly closed and locked with the 

free flow drain open as required in 1163.04 (3). 

1165.04 : 

Where blow-off valves of several boilers are connected to the same header, the valves of 

any boiler in service shall be marked and locked to prevent opening into the boiler being 

cleaned or repaired.

280 

1165.05 : 


No worker shall enter a boiler for the purpose of cleaning or making repairs, unless 

another worker is stationed outside the manhole or other access opening ready to render 

assistance when needed. 

1165.06 : 

Workers shall never enter boiler until it is sufficiently cooled off to ambient temperature. 

When entering a boiler, precautions shall be taken against hot flue dust or falling loose parts 

and explosion caused by water thrown on hot flue dust. 

1165.07 : 

Before any person enters a boiler, it shall be thoroughly ventilated by fans, blowers, or 

other means to expel any possible combustible or toxic gases or vapors, particularly when 

scales solvents have been used. 

1165.08 : 

During cleaning and repairing of boilers, especially on humid days, ventilation should be 

provided by running forced drafts or induced drafts at a low speed to eliminate flue gases 

from other boilers entering the boiler under repair. 

1165.09 : 

Lights used by workers in cleaning and repairing inside a boiler shall be in good condition 

suitable for the work. 

1165.10 : 

Blowtorches shall never be used inside boilers. 

1165.11 : 

The power source of steam or air driven tools used in cleaning or repairing boilers, shall 

be generated outside the boiler and all connections shall be inspected at frequent intervals. 

1165.12 : 

Tubes and shells of boilers cleaned by mechanical tools shall not be operated in one spot 

for any considerable length of time as this will reduce the strength of the metal. 

1165.13 : 

After cleaning operation on boilers: 

(1) One worker shall be detailed to examine the interior to see that no tools or other 

equipment are left inside the boilers, and


(2) The boiler shall not be closed until it is absolutely certain that 

all workers are outside. 

1165.14 : 

(1) The amount of bulging on the boiler or fire box shall not exceed 2% of the area of the 

bulge. If the bulge exceeds 2%, the use of the boiler shall be discontinued or patchwork shall 

be done in accordance with the provisions of Rule 1162. 

(2) All materials used in boiler repair shall be certified by the supplier as to quality and 

specification of the materials subject to verification by the Industrial Safety Engineer before 

repairs can be made. 

1165.15 : 

Welding jobs performed on pressure parts of boilers and pressure vessels shall be 

undertaken by certified welders and in accordance with the procedural process of section ix 

(welding qualifications), ASME boiler and pressure vessel code. 

1165.16 : 

Boilers and pressure vessels locally fabricated shall be stamped by the Department 

indicating the following: 

(1.) Name of manufacturer and year built; 

(2.) Application number; 

(3.) manufacturerís serial number; 

(4.) design pressure and temperature; and 

(5.) rating in horsepower for boiler and cubic meter for pressure vessel. 

1166 : Personal Protective Equipment: 

Workers in boiler rooms exposed to work hazards, which cannot be otherwise eliminated, 

shall be provided with personal protective equipment conforming to Rule 1080. 

1167 : Color Coding : 

Feed water and steam pipes emanating to and from the boiler shall be marked with identifiable 

color in conformity with Rule 1230. 

1168 : Requirements in the Preparation of Boiler and Pressure Vessel Plans : 

Before a boiler or pressure vessel is installed, the owner/manager or his/her authorized 

representative shall file with the Bureau or in the Regional Office concerned (with available 

PME) an application for installation in quintuplet, accompanied by five (5) copies of each 

sheet of plans in white print. The following shall be incorporated in the plans: 

(1) Location Plan:

282 


The plan showing the site of the compound indicating any known landmarks, such as 

streets, private or public place or building and an arrow indicating NORTH direction drawn 

not necessarily to scale. 

(2) Room Layout: 

A layout of the workplace showing: 

a. the detail of the room drawn to scale indicating the position of the boiler or pressure 

vessel in relation to the surrounding walls and other machinery or equipment in the room; 

b. the type of material used for the room walls which may be of concrete, adobe, hollow 

blocks or other fire resistant construction. 

(3) Installation and Foundation Plans: 

a. the front and side views of the boiler/pressure vessels including the details of its 

anchorage or setting to the concrete foundation; 

b. the water column assembly, main steam line, below-off line, safety valve or valves, 

feed water appliances, pressure gauge connection, manhole or handhole, in the case of 

boilers; 

c. the inlet and outlet pipes, drain pipe, inspection plug, manhole or handhole, glass 

gauge, relief or safety valves, and pressure gauge connection in case of pressure vessel; 

d. the clearance of the lowest portion of the boiler shell to the floor line shall not be less 

than 45 cm. (l7.80 in.) in case of horizontal fire tube boiler. 

e. the type of furnace 

(4) Foundation Design Computation: 

a. the total weight of the boiler or pressure vessel and accessories; 

b. the weight of water inside the boiler or pressure vessel when full; 

c. the base area and volume of concrete foundation; 

d. the concrete mixture; 

e. the bearing capacity of the soil; and 

f. the factor of safety of the foundation. 

(5) Detailed Construction Drawing: 

a. the sectional front and side front and side elevation of the boiler or pressure vessel 

indicating the diameter, thickness and length of the shell or drum and the dimensions, 

measurements, and other technical data of all other boiler parts, fittings and accessories. 

b. the details of longitudinal and circumferential joints, head attachments to boiler shell, 

nozzle and manhole or handhole attachments to shell. 

c. the boiler/pressure vessel manufacturerís data and specification; 

d. the technical details of the furnace. 

(6) Sizes of Plans: 

All sheets of plans to be submitted shall be of the following sizes: 

375 mm x 530 mm - minimum


530 mm x 750 mm 

750 mm x 1065 mm - maximum 

(7) Title Block: 

The size shall be 7.62 cm. in width, while the total length of the lower part of the plan will be 

occupied by the title block to contain: 

a. Name in print, signature and seal of the professional mechanical engineer indicating 

his/her registration number, current/updated ptr number, place and date issued and tax 

identification number. 

b. Initials of the draftsman, date of plan prepared, sheet number and scale used. 

Minimum scale of 1:100 except for small and minute parts/details where a convenient scale 

may be used to show clearly the parts/details. 

c. Title of the Plan. 

d. Name, print, and signature of the owner/manager of the establishment indicating 

his/her tax identification number. 

e. Name and address of establishment 

(8) Installation: 

a. Upon approval of the plan, installation shall be done under the supervision of a professional 

mechanical engineer. If minor deviations from the approved plans are done in the actual 

installations, the Bureau or the Regional Labor Office concerned shall be informed in writing 

or in person so that the necessary corrections can be noted. In cases where major alterations 

are done in the actual installation that may affect the original design, the necessary plans 

shall be resubmitted as a new application. The approved application and plans shall serve as 

a permit for installation. 

b. Upon completion of the installation, the establishment shall request the Regional Office 

for final inspection and if found to be in accordance with the approved plans and standards, 

a permit to operate the boiler or pressure vessel for a period of one (1) year shall be issued 

effective on the date of inspection. 

c. The establishment shall inform the Regional Office or authorized representative thirty 

(30) days before the expiration of the permit to operate the boiler or pressure vessel. The 

establishment shall prepare the boiler or pressure vessel for inspection and a hydrostatic 

pump shall be made ready by the establishment for the inspection. 

In cases where the establishment cannot stop the operation of the boiler or pressure 

vessel due to unavoidable circumstances or business commitments, a grace period of thirty 

(30) days may be allowed by the Regional Labor Office or authorized representative. 

Boiler tenders shall be licensed in accordance with the Mechanical Engineering Law, as 

amended. 

Repair of pressure parts of boiler or pressure vessels shall only be done after the plans 

and specification of materials are approved by the Bureau; Regional Labor Office concerned 

or authorized representative.

284 




1171 : Definitions : 


Secretary 

--o0o-- 

RULE 1170 

UNFIRED PRESSURE VESSELS 

(1) ìUnfired pressure vesselsî shall mean any closed vessel other than a boiler constructed 

to hold steam, hot water, gas or air, ordinarily supplied from an external source or from the 

indirect application of heat. This definition shall not include portable cylinders for the storage 

of compressed gases. 

(2) ìSteam heated pressure vesselsî shall mean an airtight vessel or an open pan or kettle, 

which is team jacketed or equipped with steam coil or steam supply piping and is used in 

such operation as cooking, distilling, drying, evaporating and hardening. 

(3) ìWater pressure tankî shall mean a pressure vessel used for heating water by means 

of live steam or steam coil, or for the storage of cold water to be dispersed by means of 

pressure. 

(4) ìAir pressure tankî shall mean a pressure vessel used as primary and secondary tank 

in connection with ordinary compression cycles, and receiving its air supply direct from the 

compressor. 

(5) ìRefrigeration tankî shall mean a pressure vessel in refrigeration system, excluding 

the piping of such system. 

(6) ìWorking pressureî shall mean a gauge pressure or pressure above the atmospheric 

pressure in kg./cm.2g (psig). 

1172 : General Provisions : 

Application of this provision is provided under Rule 1162. The term pressure vessel shall 

be used in lieu of boiler and the same is referred as ìunfired pressure vesselî in the 

application and usage of this RULE. 

1172.01 : Standards Requirement : 

Application of this provision is provided under Rule 1162.01 

1172.02 : Construction :


(1) Pressure vessels construction procedural process, material, fittings and attachments 

shall be in accordance with the standard requirements provided under Rule 1162.01 

(2) Pressure vessels shall be designed for their intended use and suitability to local condition. 

(3) Every pressure vessel shall be accompanied by a certificate issued by the Manufacturer 

showing the technical specifications to which the vessel has been constructed. 

(4) Application for permit for locally fabricated pressure vessels shall be filed with the 

Bureau or to the Regional Office (with available PME) accompanied by design and 

specification in five (5) copies (white print). 

1172.03 : Installation : 

(1) Pressure vessels shall be installed in a way that all parts are readily accessible for 

inspection. 

(2) Pressure vessels installed underground shall be placed in concrete or brick pits with 

removable covers protected by suitable corrosion protection systems i.e. cathodic protection 

or other cathodic coatings as approved by the enforcing inspection authority. 

(3) Requirements in the preparation of pressure vessels installation plans including internal 

combustion engine and other mechanical equipments shall be as provided under Rule 1168. 

1172.04 : Factor of Safety : 

The permissible working pressure of the pressure vessel shall be reduced to maintain a 

factor of safety of not less that five (5) or such other factor as may have been specified/fixed 

in the specification when an inspection of the pressure vessel shows signs of deterioration 

unless suitable repairs are done. It shall be reduced or de-rated in accordance to the provisions 

of its design code based on the remaining thickness as determined by conducting thicknessgauging 

measurement. 

1172.05 : Access and Inspection Openings : 

(1) Except for those types of pressure vessels, where such inspection openings are 

impracticable, pressure vessels shall be provided with: 

a. suitable manhole, handhole or other openings or inspection, examination and 

cleaning or 

b. removable heads or cover plates of a size not less than the required area of the 

openings and located to provide adequate view of its interior. 

(2) Provisions for manholes and handholes shall be as provided and specified under 

ASME requirement based on vessel diameter. 

(3) Handhole openings in pressure vessels shall be not less than 70 mm. (2 3/4 in.) in 

size.

286 


1172.06 : Safety Appliances: 

Pressure vessels shall be protected by such safety and relief valves, indicating and 

controlling devices to ensure their safe operation. The appliances shall be constructed, 

located and installed to avoid any mechanical damage. 

1172.07 : Safety Valves : 

(1) Safety valves in pressure vessels shall have mechanical lifting devices to lift the valve 

disc from its seat when testing. The safety valve shall be set within plus or minus ten percent 

(10%) of its designed pressure. 

(2) Safety valves of pressure vessels where pressure is supplied from an outside source 

shall be connected to the vessels or system which are protected to prevent a rise in pressure 

beyond the allowable maximum. 

(3) Pressure vessels in which pressure is generated, shall be provided with safety valves 

and connected: 

a. directly to the vessels, or 

b. if the contents of the vessels are likely to clog or cause interference with the 

operation, safety valves may be connected to the pipe lines leading to the vessels. 

(4) Safety valves having either the seat or the disc of cast iron shall not be used in 

pressure vessels. 

(5) The discharge capacity of safety valves on pressure vessels shall be sufficient for the 

size of the supply pipes and the pressure at which the vessels are operated. 

(6) Outlets of safety valves on pressure vessels shall be located or piped to avoid hazards 

to persons. 

(7) When two or more safety valves are fitted on a pressure vessel, all except one of the 

valves shall be set to blow at a pressure slightly above but not more than ten percent (10%) 

of the maximum permissible working pressure. 

(8) When two or more safety valves are placed in one connection for a pressure vessel, 

such connection shall have a cross-sectional area of at least equal to the combined areas of 

the safety devices. 

(9) Safety valves on pressure vessels shall be provided with continuous drain. 

1172.08 : Rupture Discs : 

(1) Safety rupture discs, shall be made of suitable materials which are: 

a. uniform in thickness; 

b. capable of withstanding any chemical action; and 

c. durable enough to withstand the least possible change.


(2) Where safety rupture discs are used for additional protection of pressure vessels, 

they shall be designed to fail at a pressure above the safety valve setting. 

1172.09 : Identification of Control Valves : 

Where a battery of pressure vessels is operated, control valves shall be plainly marked 

by numbering or by the use of a distinctive color system. If the valve is located on the vessel, 

each vessel shall carry a mark corresponding to that on its valve. 

1172.10 : Indicating and Recording Devices : 

Indicating and recording devices on pressure vessels shall be protected against breakage 

or clogging and clearly legible to the operators. 

1172.11 : Inspection: 

Inspection proceedings for Pressure Vessels shall be the same as provided under Rule 

1162.02. 

1173 : Liquefied Petroleum Gas (LPG) Vessels and other Cylinders: 

(1) Vessels containing or are used as containers for liquefied petroleum gas (LPG), 

chemicals, catalyst and other corrosive gases shall be subjected to internal and/or external 

inspection, including hydrostatic tests equal to 1.2 times the maximum working pressure at 

intervals not exceeding two (2) years in the case of cylinders for corrosive gases and five 

(5) years for other gas cylinders. However, internal inspection shall be conducted on such a 

vessel at any time within this period if in the opinion of the competent authority, said inspection 

is deemed necessary due to known or inspected defects. 

(2) The result of the internal and/or external conduct of inspection on all pressure vessel 

parts and appliances, may upon the discretionary power/privilege of the inspection authority, 

decide whether or not to subject the pressure vessel to a hydrostatic test 

(3) In lieu of hydrostatic test, radiographic, ultrasonic thickness gauging, magnetic particle, 

liquid penetrant and/or other equivalent non-destructive test shall be performed on such 

vessel. 

1173.01: Cylinder Records : 

Every cylinder owner/user or person responsible for the maintenance of the cylinder shall 

keep a cylinder maintenance logbook/register which shall show the corresponding dates of 

all tests, internal and/or external inspection, cleaning and repairs undertaken. Such logbook/ 

register shall be made available upon request by the inspection authority. 

1173.02 : Fittings : 

(1) Every cylinder shall be provided with a device that prevents damage to the bottom of 

the gas cylinder; 

(2) Only materials resistant to the contents of the cylinder shall be used for parts of valves 

and fittings.

288 


(3) Copper and alloy containing copper shall not be used for parts or fittings on cylinders 

for liquefied ammonia dissolved under pressure. 

(4) All fittings of cylinders for oxygen and other oxidizing gases shall be kept free from 

grease. 

(5) For all flammable gases, the connection screw shall always be right handed except for 

LPG cylinders. 

1173.03 : Markings and Identifications : 

(1) Cylinders shall be legibly marked for the purpose of identifying the content inside with: 

a. chemical symbols - to be stamped on the metal at the shoulder of the cylinder; 

and, 

b. chemical name and trade name - to be stenciled, labeled or stamped and shall 

not be easily removed. 

(2) All markings shall be located on or near the shoulder of the cylinders. 

(3) Metal stampings shall have a minimum height of 0.31 cm. (1/8 in.). 

(4) The height of lettering by printing, stenciling, labeling and paint or ink stamping shall 

not be less than one over twenty five (1/25) of the diameter of the cylinder with a minimum 

height of 0.62 cm. (1/4 in.). 

1173.04 : Handling and Storage: 

(1) Cylinders shall be adequately protected against excessive variations of temperature, 

direct rays of the sun and continuous dampness. 

(2) Storage of charged cylinders inside factory buildings shall be: 

a. limited to such number as to be reasonably safe for the workers therein; 

b. suitably placed and secured against their falling and rolling. 

(3) Storage rooms containing charged cylinders should be appropriately marked on the 

outside with clearly visible danger signs. 

(4) Cylinders shall be segregated for storage by type of gas and empty cylinders shall be 

stored apart from charged cylinders. 

(5) Cylinders shall not be placed: 

a. in or near gangways, stairways, elevator installations or other places 

where moving objects may strike or fall against them; 

b. close to highly flammable substances; and 

c. adjacent to air intake. 

d. basement or cellar.


(6) Storerooms shall: 

a. be provided with adequate ventilation facilities to the outside air; and 

b. have an adequate number of exits having regard to the quantity and nature of 

the gas stored. 

(7) Smoking in cylinder rooms is prohibited. 

1173.05 : Transport : 

(1) Cylinders shall be transported in a way that no part of the cylinders shall project 

beyond the sides or ends of the vehicle. 

(2) Adequate precaution shall be taken to prevent rough handling, excessive shocks or 

local stress. 

(3) No cylinder shall be moved by a lifting magnet. 

(4) When cylinders are moved by a hoisting mechanism, a properly designed cradle with 

suitable slings shall be used. 

1174 : Steam Heated Pressure Vessels: 

1174.01 : 

Where steam heated pressure vessel is operated at a pressure less than that of the main 

steam supply line, an effective reducing valve shall be properly secured against any 

manipulations by an unauthorized person. 

1174.02 : 

Reducing valves and safety valves on steam lines for pressure vessels shall be tested 

occasionally. Steam supply pipes for steam heated pressure vessels shall be placed in floor 

trenches, where practicable, or covered with insulating materials within 2 m. from the floor 

or working level to prevent excessive increase of temperature in the atmosphere of the 

workroom. 

1175 : Closed Steam Heated Pressure Vessels: 

1175.01 : Interlocks : 

(1) Closed steam heated pressure vessels equipped with bayonet-joint covers shall be 

provided with interlocks or other effective means for preventing: 

a. the rise of pressure inside the vessel before the cover is in fully locked position, 

and 

b. the release of the cover from the locked position before the pressure inside the 

vessel has been reduced to atmospheric pressure.

290 


1175.02 : Steam Agitation : 

Where the contents of the closed vertical pressure vessels are stirred by means of a live 

steam, the vessel shall be provided with heavy coiled springs or other suitable shock absorbers 

under their supports. 

1175.03 : Revolving Closed Vessels: 

(1) Pressure gauges and safety valves on revolving cylindrical steam heated pressure 

vessels, such as revolving autoclaves, devulcanizers, and rotary driers, shall be located on 

the steam lines at the trunnions thru which steam is admitted into the vessels. 

(2) Driving mechanisms of revolving steam heated pressure vessels shall be provided 

with: 

a. appropriate locking device; and 

b. safeguards in accordance with the requirement of Rule 1200. 

(3) Before filling or emptying a revolving steam heated pressure vessel, the driving 

mechanism shall be locked in off position and the stop valves shall be locked in closed 

position. 

(4) Revolving steam heated pressure vessels shall be enclosed or guarded to a sufficient 

height to prevent any person from coming into contact with them when in motion. 

1175.04 : Autoclaves : 

(1) Autoclaves shall be provided with casings that shall: 

a. prevent the contents from being forced out directly in the working spaces, and 

b. extend down to the floor to prevent any person from walking under the vessel. 

(2) Autoclaves containing liquids shall be installed over pits or in casings of light steel or 

other suitable materials, tight at the bottom and capable of holding the charge or draining to 

a suitable receiver. 

(2) All electrical equipment in rooms where autoclaves containing flammable substances 

are installed shall be: 

a. effectively grounded; and 

b. of approved explosion - proof type. 

(4) Linings of autoclaves shall be examined frequently for leaks and shall be renewed 

before the shells are damaged. 

(5) The heating of oil for oil-jacketed autoclaves shall be performed at points remote from 

the vessels. 

1175.05 : Digesters :


(1) Digesters used for the cooking of wood chips shall be equipped with piping of corrosion 

resistant materials and of adequate thickness, particularly between the blow-off and blowpits. 

(2) Blow-off valves on digesters shall be so arranged that they can be operated from a 

location outside the digester room or from protected point remote from the valves. 

(3) Openings of blow-pits shall be so constructed as small as possible with raised sides or 

guarded by standard railings of not less than 1.25 m. (48 in.) in height. 

(4) Openings of blow-pits shall be preferably on the side of the pits. 

(5) Ladders for access to blow-pits shall be constructed that the doors of the blow-pits 

cannot be closed when the ladders are in place. 

(6) An effective warning system consisting of bells, whistles or other signalling devices, 

shall be installed in digesters and blow-pits rooms, to be sounded or operated before and 

while digesters are being blown. 

(7) Before opening blow-off valves to discharge the contents, the following procedures 

shall be observed: 

a. the blow-pit shall be free from stock and water; 

b. precautions shall be taken to ensure that all workers are out of the blow-pit; 

c. the door of the blow-pit shall be securely fastened; and 

d. workers in the digesters and blow-pit rooms shall be warned by signals that the 

blow-off valve is to be opened. 

(8) Blow-off valves on digesters shall be opened slowly. 

(9) Head covers on digesters shall not be loosened while any pressure is indicated on the 

steam gauge. 

(10) Persons not directly concerned shall not be permitted in digester buildings while 

digesters are being blown. 

(11) Each floor of digester buildings shall be provided with not less than two (2) unobstructed 

means of egress. 

1175.06 : Distilling Apparatus 

(1) Stills shall be equipped with duplicate pressure gauges, safety valves and recording 

thermometers or pyrometers. 

(2) Charging vapor and steam lines on stills shall be: 

a. fitted with dual valves, with a bleeder between them, and 

b. provided with arrangements for disconnecting and blanking the lines.

292 


(3) Convenient and safe access for quick manipulation of overhead valves on stills shall be 

provided. 

(4) Where horizontal shell stills are mounted at varying heights to allow gravity flow, the 

manhole ladders shall be of different lengths to fit the front manhole of each still at the proper 

angle. 

(5) When preparing apparatus used in distilling flammable, corrosive or toxic fluids for 

cleaning or repairs, the following procedure shall be observed: 

a. steam inlet valves shall be locked in close position 

b. all charging fluid shall be pumped out; 

c. all inlet lines shall be disconnected and blanked or the inlet valves shall be 

locked in position; and 

d. the stills shall be blown through with live steam admitted through a top connection. 

(6) When stills are to be charged with cold liquids, they shall first be filled with steam until 

all the air has been expelled and steam shows at the safety and vacuum relief valves. 

(7) When stills are charged with hot liquids, they shall be steamed progressively from the 

stills through the tower and condensing equipment to a try cock on the gas line. 

1175.07 : Kiers: 

Where hot liquids, such as solutions of caustic soda, lime sulphuric acid are used in 

circulating kiers coiling out textile materials or in similar closed pressure vessels, the liquids: 

a. shall be prepared in separate vessel or tanks, and. 

b. shall not be admitted to the pressure vessels until loading of the materials to be 

processed has been completed. 

1175.08 : Vulcanizers and Devulcanizers: 

(1) Vulcanizers and devulcanizers door fastening shall be of ample strength, properly 

spaced and carefully secured. 

(2) Vulcanizers and devulcanizers shall be installed above the floors high enough to permit 

piping valves and traps on the same floors as the vessels. This requirement shall not apply 

where it is necessary to install bottoms of horizontal vulcanizers below floor levels in order to 

place the car tracts on the vulcanizers on the same level as the floor tracks. 

(3) Periodic and thorough internal and external inspections shall be made of vulcanizers 

including all attachments and connecting equipment, at intervals not exceeding three (3) 

months. 

(4) Before allowing workers to enter vulcanizers or devulcanizers for the purpose of releasing 

jammed or derailed vulcanizer cars or for any other necessary operation, the following shall 

be observed :


a. steam valves and other supply valves shall be locked in closed position; 

b. the blow-down valves on the individual vessel and on any other vessel using the 

same drain shall be locked in closed position; 

c. the vessels shall be free of hazardous fumes or vapor; and 

d. the vessels shall be cooled sufficiently to prevent workers from being burned or 

over exposed to heat. 

(5) Safety valves for vulcanizers and open-steam type devulcanizers shall be attached 

directly to the shells of the vessels. 

(6) Vulcanizers and open-steam type devulcanizers equipped with bolted doors shall be 

provided with hinged type door belts securely attached to lugs on the shell rings. 

(7) Before any attempt is made to open the doors of vulcanizers or open-steam type 

devulcanizers, the following shall be observed: 

a. the steam supply valves shall be closed; 

b. the blow-down and telltale valves shall be opened until the telltale valve indicates 

that all internal pressure has been relieved; and 

c. the drain valves shall be opened. 

(8) Vulcanizers and open-steam type devulcanizers shall be equipped with individual blowdown 

piping and the use of common blow down is prohibited. 

(9) Horizontal vulcanizers and open type devulcanizers shall be equipped with: 

a. a drain valve at the bottom near the front of the vessel for draining condensed 

for cooling water from the vessels and to avoid scalding of workers when the 

doors are opened, and 

b. an additional drain valve near the center, when the vessel is more than 0.75 m. 

(2.5ft.) in length. 

(10) Vertical vulcanizers and devulcanizers shall be provided with suitable platforms equipped 

with standard railings and toeboards and arranged to make all working areas accessible. 

1175.09 Vulcanizers: 

(1) Doors on vulcanizers shall be of quick opening type, with fastening and locking 

arrangements in full sight of the operators. 

(2) Quick opening vulcanizers doors shall be equipped with automatic interlocks that will 

prevent doors from being opened until all pressure has been relieved. 

(3) Power-operated vulcanizer doors running in vertical guides shall be equipped with 

automatic latches in the guides to prevent the doors from falling in the event of failure of the 

hoisting mechanism.

294 


(4) Vulcanizers shall be equipped with telltale valves, preferably located on the vulcanizer 

doors, for reducing the pressure inside to atmospheric level before the doors can be opened. 

(5) Where bottoms of horizontal vulcanizers extend below the floor levels, the pits shall be 

guarded at the sides by standard railings and toeboards, and at the ends by removable rails 

or by chain carrying warning signs. 

(6) Where vulcanizers cars are used, car stops shall be provided in the rear part of the 

vulcanizers to prevent the cars from striking workers when rolled in. 

(7) Plates over spiders on top of hydraulic rams on vertical type vulcanizers shall be 

perforated and provided with center holes large enough to prevent the accumulation of 

steam within the rams and the blowing out of the moulds or plates upon removal of the 

covers. 

(8) Vertical type vulcanizers shall be provided with overflow pipes of the water operating 

the hydraulic rams, with a capacity not less than that of the water inlet pipes, inserted 

through the cylinder wall at the limit of travel necessary for the ram. 

1175.10 : Alkali Devulcanizers: 

(1) Where safety valves on alkali devulcanizers may be clogged by rubber or other foreign 

materials from the contents of the vessels, safety rupture discs should be substituted 

(2) Alkali devulcanizers shall be provided with baffles directly on the inner shells at the 

entrance to the safety valves, steam gauges, and blow-down lines. 

(3) Workers exposed to splashes from caustic liquids used in alkali devulcanizers shall be 

provided with suitable personal protected equipment conforming to the requirement of Rule 

1080. 

(4) Discharge pipes and closed dump tanks for stationary alkali devulcanizers shall be 

designed to withstand devulcanizers pressure in the event the lines are opened under high 

pressure. 

(4) Revolving spherical alkali devulcanizers shall be provided with: 

a. individual motor drives or effective means of locking the driver to prevent the 

possibility of accidental starting; 

b. remote power controls, beyond the reach of persons standing in front of the 

manhole; and, 

c. automatic interlocking devices which will prevent starting the driving mechanism 

until the manhole covers are lose and locked except when the operators 

keep their hands on the power controls. 

1176 : Open Steam Heated Pressure Vessels: 

1176.01 : General Provisions:


(1) Where the top edges of large open steam pressure vessels are less than 1.20 m. (4 ft.) 

above the floor or working level, the vessels shall be surrounded by standard railings to the 

floor, so that workers can watch the operations, without the possibility of falling into the 

vessels or being burned by splashing materials. 

(4) Batteries of open kiers or similar open steam heated pressure vessels shall be arranged 

that: 

a. The distance between the edges of the vessels is at least 45 cm. (18 in.); and 

b. there is unobstructed space for passage around each vessel of at least 45 cm. 

(18 in.). 

(5) Planks, ladders, stairs and other gangways placed over open steam heated pressure 

vessels containing hot liquid or hot water shall be securely fastened and provided with 

standard railings and toeboards preferably fitted with fillers. 

(4) Sitting or standing on the edges of open steam heated pressure vessels or on guards 

surrounding such vessels is prohibited. 

(5) Where open steam heated pressure vessels give rise to excessive water vapor, adequate 

steps shall be taken to reduce the relative humidity of the workroom. 

1176.02 : Open Jacketed Kettles : 

(1) Jackets of steam jacketed cooking or tenderizing kettle shall be thoroughly drained 

before the steam supply valves are open. 

(2) When admitting steam to cold steam jacketed kettles, the steam supply valves shall be 

opened slowly. 

(3) Wooden scrapers should be provided and used for removing semi-solid or sticky 

finished products from steam jacketed pivoted kettles or kettles with side discharged doors. 

(4) Open steam jacketed starch kettles used in textile industry shall be provided with 

covers arranged that the process can be observed, and with large overflow rings with ample 

drains. 

(5) Workers around open steam jacketed kettles shall be provided with, and used suitable 

protective clothing conforming to Rule 1080. 

(5) Before cleaning or making repairs inside open steam jacketed kettles, all: 

a. agitating devices shall be locked or blocked to be inoperative; 

b. valves or drains connected on common heads shall be closed or blocked; and 

c. pipings for introducing steam or other dangerous substances shall be disconnected 

and blanked or their inlet valves shall be locked in the closed position. 

1176.03 : Open Evaporating Pans :

296 


(1) Open evaporating pans for substances which are flammable when dry, shall be kept 

free of impurities and the steam coils always covered by liquids when operated. 

(2) Steam coils in open evaporators pans shall prevent the creation of a vacuum through 

steam condensation drawing the material processed into the coils, which may cause explosion. 

1177 : Water and Air Pressure Tanks: 

1177.01 : General Provisions : 

The water supplied to water pressure tanks shall be free from suspended solids and 

sedimentary matters. 

1177.02 : Hot Water Pressure Tanks: 

(1) Hot water pressure tanks shall be designed to withstand full boiler pressure. 

(2) Every hot water pressure tank not designed to withstand full boiler pressure shall be 

equipped with: 

a. a reducing valve located between the steam stop valve and the tank; and 

b. one or more relief or safety valves on the low pressure side of the reducing 

valve. 

(3) Every hot pressure tank should be equipped with automatic temperature regulator set 

to prevent the generation of steam. 

(4) Pressure gauges for hot water pressure tanks shall be installed between the reducing 

valves and the relief safety valves. 

(5) Steam and hot water piping for hot water pressure tanks shall be adequately insulated 

where it is exposed to contact. 

(6) Hot water tanks shall be examined frequently for leaks of steam or water, which shall 

include hydrostatic tests when deemed necessary by the Safety Engineer of the Regional 

Labor Office or authorized representative. 

1177.03 : Cold Water Pressure Tanks: 

(1) Pressure gauges for cold water pressure tanks for sprinkler system shall be provided 

with separate shut-off valves with arrangements for draining. 

(2) Discharge valves on cold water pressure tanks for sprinkler system shall be locked or 

sealed in the open position and shall be inspected frequently to make sure that they are 

open. 

(3) Cold water pressure system shall be provided with one or more pressure relief valves 

adjusted to release over the maximum air pressure of the system.


1177.04 : Air Receivers : 

(1) Air receivers shall be: 

a. protected from the weather; and 

b. accessible for external and internal inspection. 

(3) Air receivers shall be provided with suitable openings for inspection and cleaning. 

(4) Where two or more receivers are served by one compressor, the air supply piping for 

each tank shall be equipped with a stop valve and with a safety valve between the stop valve 

and the compressor. 

(4) Safety valves for air receiver shall be proportional to the maximum quantity of free air 

that can be supplied. 

(5) Stop valves shall be installed between air receivers and each consuming appliance at 

points convenient to the operator. 

(6) Pipe lines of compressed air systems shall be : 

a. securely fastened in place; and 

b. installed not to interfere with free contraction or expansion of the pipings between 

fixed points. 

(7) Air receivers shall be equipped at the lowest point possible with automatic drain traps 

or with valves which shall be opened daily, for relieving the vessels of air, moisture and oil 

accumulated at the bottoms. 

(8) Air receivers shall be kept clean of oil, carbon and other foreign substances. 

(9) Compressed air shall not be handled or used by any person except in the performance 

of his duties. In no case shall a jet of compressed air be directed against any person. 

(10) No vessel shall be used as an air receiver unless it meets the requirements of Rule 

1171.02. 

(11) Compressed air shall not be used to force liquid or substance out of containers which 

are not constructed to withstand the pressure of the air supplied. 

1178 : Refrigeration Tanks 

1178.01 : Refrigeration Rooms: 

(1) Factory rooms in which refrigeration tanks and other parts of refrigeration systems 

are permanently installed and operated shall: 

a. be provided with tight-fitting doors; 

b. have no partitions or openings that will permit the passage of refrigerants to 

other parts of buildings; and 

c. be provided with mechanical means of ventilation.

298 

1178.02 : 


Not more than two (2) refrigeration tanks shall be located one above within the same area 

between floor and ceiling. 

1178.03 : Open Flames: 

All electrical equipment shall be of the approved explosion proof type. No flame producing 

devices or hot surfaces shall be permitted in rooms where refrigeration tanks are installed. 

1178.04 : Materials : 

All materials used in the construction and installation of refrigeration tanks shall be capable 

of withstanding the chemical action. 

1178.05: Gauge Glasses; 

Liquid level gauge glasses for refrigeration tanks, except the bullís type, shall be fitted with 

automatic shut-off valves. 

1178.06 : Stop Valves: 

Refrigeration tanks shall be equipped with stop valves at each inlet and outlet pipes. 

1178.07 : Pressure Relief Device 

(1) Refrigeration tanks shut off by valves from other parts of the refrigeration system, shall 

be equipped with : 

a. at least two (2) pressure relief valves or one pressure relief valve in parallel with 

a rupture member when the capacity of the tank exceeds 140 liters (5 cu. ft.) 

and its diameter exceeds 15 cm. (6 in.) and 

b. a pressure relief device or a fusible plug, when the capacity of the tank is 140 

liters (5 cu. ft.) or less. 

(2) Pressure relief devices for refrigeration tanks shall be connected directly to the vessels 

and shall be placed above the liquid refrigerant level. 

(3) Pressure relief valves and fusible plugs for refrigeration tanks shall be provided with 

discharge pipes, leading directly and separately to the outside of the building, with outside 

outlets located to protect persons from exposure to any irritating or toxic fumes or vapors. 

(7) Pressure relief valves and fusible plugs for refrigeration tanks containing ammonia or 

sulphur dioxide shall discharge into substantial tanks of the closed type or provided with 

hinged covers, used for no other purpose than the absorption of the refrigerants. 

1179: Compressor:


1179.01: Installation 

All compressors shall be installed on firm foundations and securely fastened in place. 

1179.02 : Machine Guarding: 

All moving parts of air compressors shall be safeguarded in accordance with the provisions 

of Rule 1200. 

1179.03 : Pressure Limiting Device: 

(1) Air compressors or shall be equipped with: 

a. automatic mechanisms which will stop the air compressing operation when the 

maximum allowable pressure is reached; and 

b. electrically operated pressure limiting devices on air compressors shall be 

designed and constructed that the electric contacts cannot lock or fuse in a 

position which will cause the compressors to continue its air-compressing operations. 

1179.04: Speed Governors 

Unloaded air compressor or governor controls of engines shall be inspected frequently 

and regularly and maintained in good working conditions. 

1179.05: Lubrication: 

Air compressor cylinder shall be lubricated with just sufficient oil to avoid excess oil from 

flowing into the intercoolers, receivers and other parts of the system. 

1179.06 : Cooling 

(1) Where air compressors cylinders are equipped with water cooling jackets, a visible 

indication of water flow be provided. 

(2) Intercoolers and after-coolers shall be designed and constructed to withstand safety, 

the maximum pressure in their discharge piping. 

1179.07: Air Intake and Discharge Piping: 

(l) Air intakes for air compressors shall be located at a place where the air is pure, clean 

and free from any flammable or toxic gases or fumes. 

(2) Air discharge piping from air compressors operating at high temperature shall be 

provided with insulating cover. 

(3) If necessary, separator shall be installed at a convenient point between the compressor 

and the receiver. 

1179.08 : Valve:

300 


(1) Where stop valves are installed in the air discharge piping from air compressor: 

a. the valves shall be easily accessible for inspection and cleaning; and 

b. one or more safety valves shall be installed between the compressor and stop 

valve. 

(2) Steam or gas supply lines to steam driven air compressor shall be provided with a 

manually operated throttle valve in a readily accessible location 

(3) Compressor valves shall be inspected frequently and regularly and leaking valve shall 

be immediately repaired or replaced. 



(SGD.) PATRICIA A. STO.TOMAS 

Secretary 

--o0o-- 

Department Order No. 17-02 

Full Verification of Recruitment and Employment Documents 

In line with the new POEA Rules and Regulations Governing Overseas Employment, all 

Philippine Overseas Labor Officers (POLOs) are hereby directed to perform full verification 

of recruitment and employment documents for overseas employment. They are further tasked 

to transmit to POEA via e-mail a daily report on the documents that they had verified. 

Documents that had been verified by the POLOs will be submitted by the Philippine 

recruitment/manning agencies or workers to the POEA for registration. It shall be understood 

that the POLOs task of verifying the recruitment documents for foreign principals and 

employment contracts of Filipino nationals, includes the responsibility of establishing the 

existence of the employing person, company, or project, its capability to hire workers at the 

approved rates and at desirable working conditions, in conformity with the minimum standards 

prescribed by the Philippine government and the labor laws and legislations of the host 

government. It shall also be understood that the POLOs assume full responsibility over the 

verified documents. 

Pending the implementation of a regular program for Collecting Officers to collect at 

post, the Labor Attaches shall be authorized to collect verification fees immediately. 




Secretary 

--o0o--



Department Order No. 18-02, s. 2002 

Rules Implementing Articles 106 to 109 of the Labor Code, as Amended 

By virtue of the power vested in the Secretary of Labor and Employment under Articles 

5 (Rule-making) and 106 (Contractor or Subcontractor) of the Labor Code of the Philippines, 

as amended, the following regulations governing contracting and subcontracting arrangements 

are hereby issued: 

SECTION 1. Guiding Principles - Contracting and subcontracting arrangements are 

expressly allowed by law and are subject to regulation for the promotion of employment and 

the observance of the rights of workers to just and humane conditions of work, security of 

tenure, self-organization, and collective bargaining. Labor-only contracting as defined herein 

shall be prohibited. 

SECTION 2. Coverage- These Rules shall apply to all parties of contracting and subcontracting 

arrangements where employer-employee relationship exists. Placement activities 

through private recruitment and placement agencies as governed by Articles 25 to 39 of 

the Labor Code are not covered by these Rules. 

SECTION 3. Trilateral Relationship in Contracting Arrangements - In legitimate contracting, 

there exists a trilateral relationship under which there is a contract for a specific job, 

work or service between the principal and the contractor or sub-contractor, and a contract of 

employment between the contractor or subcontractor and its workers. Hence, there are 

three parties involved in these arrangements, the principal which decides to farm out a job or 

service to a contractor or subcontractor which has the capacity to independently undertake 

the performance of the job worker or service, and the contractual workers engaged by the 

contractor or subcontractor to accomplish the job , work or service within a definite or 

predetermined period, regardless of whether such job, work or service is to be performed or 

completed within or outside the premises of the principal. 

SECTION 4. Definition of Basic Terms - The following terms as used in these Rules, 

shall mean: 

a. ìContractingî or ìsubcontractingî - refers to any person or entity engaged in legitimate 

contracting or subcontracting arrangement. 

b. ìContractor or subcontractorî refers to any person or entity engaged in a legitimate 

contracting or subcontracting arrangement. 

c. ìContractual employeeî includes one employed by a contractor or subcontractor to 

perform or complete a job, work or service pursuant to an arrangement between the latter 

and a principal. 

d. ìPrincipalî refers to any employer who puts out or farms out a job, service or work to a 

contractor of subcontractor.

302 


SECTION 5. Prohibition against labor-only contracting - Labor-only contracting is 

hereby declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement 

where the contractor or subcontractor merely recruits, supplies or places workers 

to perform a job, work or service for a principal, and any of the following elements are 

present: 

i. The contractor or subcontractor does not have substantial capital or investment 

which relates to the job, work or service to be performed and the employees 

recruited, supplied or placed by such contractor or subcontractor are performing 

activities which are directly related to the main business of the principal; or 

ii. The contractor does not exercise the right to control over the performance of 

the work of the contractual employee. 

The foregoing provisions shall be without prejudice to the application of Article 248 (C) 

of the Labor Code, as amended. 

ìSubstantial capital or investmentî refers to capital stocks and subscribed capitalization 

in the case of corporations, tools, equipment, implements, machineries and work premises, 

actually and directly used by the contractor or subcontractor in the performance or completion 

of the job, work or service contracted out. 

The ìright to controlî shall refer to the right reserved to the person for whom the services 

of the contractual workers are performed, to determine not only the end to be achieved, 

but also the manner and means to be used in reaching that end. 

SECTION 6. Prohibitions - Notwithstanding Section 5 of these Rules, the following are 

hereby declared prohibited for being contrary to law or public policy: 

a. Contracting out of a job, work or service when not done in good faith and not justified by 

the exigencies of the business and the same results in the termination of regular employees 

and reduction of work hours or reduction or splitting of the bargaining unit; 

b. Contracting out of work with a ìcaboî as defined in Section 1(ii), Rule I, Book V of these 

Rules. ìCaboî refers to a person or group of persons or to a labor group which, in the guise 

of a labor organization, supplies workers to an employer, with or without any monetary or 

other consideration whether in the capacity of an agent of the employer or as an ostensible 

independent contractor; 

c. Taking undue advantage of the economic situation or lack of bargaining strength of the 

contractual employee, or undermining his security of tenure or basic rights, or circumventing 

the provisions of regular employment, in any of the following instances: 

i. In addition to his assigned functions, requiring the contractual employee to 

perform functions which are currently being performed by the regular employees 

of the principal or of the contractor or subcontractor; 

ii. Requiring him to sign, as a precondition to employment or continued employment, 

an antedated resignation letter; and blank payroll; a waiver of labor standards


including minimum wages and social or welfare benefits; or a quitclaim releasing 

the principal, contractor or subcontractor from any liability as to payment of 

future claims;and 

iii. Requiring him to sign a contract fixing the period of employment to a term 

shorter than the term of the contract between the principal and the contractor or 

subcontractor, unless the latter contract is divisible into phases for which substantially 

different skills are required and this is made known to the employee at 

the time of engagement; 

d. Contracting out of a job, work or service through an in-house agency which refers to a 

contractor or subcontractor engaged in the supply of labor which is owned, managed or 

controlled by the principal and which operates solely for the principal; 

e. Contracting out of a job, work or service directly related to the business or operation of the 

principal by reason of a strike or lockout whether actual or imminent; 

f. Contracting out of a job, work or service being performed by union members when such 

will interfere with, restrain or coerce employees in the exercise of their rights to self organization 

as provided in Art. 248 (c) of the Labor Code, as amended. 

The principal shall be deemed the employer of the contractual employee in any of the 

following cases, as declared by a competent authority: 

SECTION 7. Existence of an employer-employee relationship - The contractor or 

subcontractor shall be considered the employer of the contractual employee for purposes of 

enforcing the provisions of the Labor Code and other social legislation. The principal, however, 

shall be liable with the contractor in the event of any violation of any provision of the 

Labor Code, including the failure to pay wages. 

The principal shall be deemed the employer of the contractual employee in any of the 

following cases, as declared by a competent authority: 

a. where there is labor-only contracting; or 

b. where the contracting arrangement falls within the prohibitions provided in Section 6 

(Prohibitions)hereof. 

SECTION 8. Rights of Contractual Employees - Consistent with Section 7 of these 

Rules, the contractual employee shall be entitled to all the rights and privileges due a regular 

employee as provided for in the Labor Code, as amended, to include the following: 

a. Safe and healthful working conditions; 

b. Labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 

13th month pay and separation pay; 

c. Social security and welfare benefits; 

d. Self-organization, collective bargaining and peaceful concerted action; and 

e. Security of tenure. 

SECTION 9. Contract between contractor or subcontractor and contractual employee. 

Notwithstanding oral or written stipulations to the contrary, the contract between the contractor

304 


or subcontractor and the contractual employee, which shall be in writing, shall include the 

following terms and conditions: 

a. The specific description of the job, work or service to be performed by the contractual 

employee; 

b. The place of work and terms and conditions of employment, including a statement of the 

wage rate applicable to the individual contractual employee; and 

c. The term or duration of employment, which shall be coextensive with the contract of the 

principal and subcontractor, or with the specific phase for which the contractual employee is 

engaged, as the case may be. 

The contractor or subcontractor shall inform the contractual employee of the foregoing 

terms and conditions on or before the first day of his employment. 

SECTION 10. Effect of Termination of Contractual Employment - In cases of termination 

of employment prior to the expiration of the contract between the principal and the contractor 

or subcontractor, the right of the contractual employee to separation pay or other related 

benefits shall be governed by the applicable laws and jurisprudence on termination of 

employment. 

Where the termination results from the expiration of the contract between the principal 

and the contractor or subcontractor, or from the completion of the phase of the job, work or 

service for which the contractual employee is engaged, the latter shall not be entitled to 

separation pay. However, this shall be without prejudice to completion bonuses or other 

emoluments, including retirement pay as may be provided by law or in the contract between 

the principal and the contractor or subcontractor. 

SECTION 11. Registration of Contractors or Subcontractors - Consistent with the 

authority of the Secretary of Labor and Employment to restrict or prohibit the contracting out 

of labor through appropriate regulations, a registration system to govern contracting 

arrangements and to be implemented by the Regional Offices is hereby established. 

The registration of contractors and subcontractors shall be necessary for purposes of 

establishing an effective labor market information and monitoring. 

Failure to register shall give rise to the presumption that the contractor is engaged in 

labor-only contracting. 

SECTION 12. Requirements for Registration - A contractor or subcontractor shall be 

listed in the registry of contractors and subcontractors upon completion of an application 

form to be provided by the DOLE. The applicant contractor or subcontractor shall provide in 

the application form the following information: 

a. The name and business address of the applicant and the area or areas where it seeks to 

operate; 

b. The names and addresses of officers, if the applicant is a corporation, partnership, 

cooperative or union; 

c. The nature of the applicantís business and the industry or industries where the applicant 

seeks to operate; 

d. The number of regular workers; the list of clients, if any; the number of personnel assigned 

to each client, if any and the services provided to the client;


e. The description of the phases of the contract and the number of employees covered in 

each phase, where appropriate; and 

f. A copy of audited financial statements if the applicant is a corporation, partnership, 

cooperative or a union, or copy of the latest ITR if the applicant is a sole proprietorship. 

The application shall be supported by: 

a. A certified copy of a certificate of registration of firm or business name from the Securities 

and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative 

Development Authority (CDA), or from the DOLE if the applicant is a union; and 

b. A certified copy of the license or business permit issued by the local government unit or 

units where the contractor or subcontractor operates. 

The application shall be verified and shall include an undertaking that the contractor or 

subcontractor shall abide by all applicable labor laws and regulations. 

SECTION 13. Filing and processing of applications - The application and its supporting 

documents shall be filed in triplicate in the Regional Offices where the applicant principally 

operates. No application for registration shall be accepted unless all the foregoing 

requirements are complied with. The contractor or subcontractor shall be deemed registered 

upon payment of a registration fee of P100.00 to the Regional Office. 

Where all the supporting documents have been submitted, the Regional Office shall 

deny or approve the application within seven (7) working days after its filing. 

Upon registration, the Regional Office shall return one set of the duly-stamped application 

documents to the applicant, retain one set for its file, and transmit the remaining set to 

the Bureau of Local Employment. The Bureau shall devise the necessary forms for the 

expeditious processing of all applications for registration. 

SECTION 14. Duty to produce copy of contract between the principal and the contractor 

or subcontractor - The principal or the contractor or subcontractor shall be under an 

obligation to produce a copy of the contract between the principal and the contractor in the 

ordinary course of inspection. The contractor shall likewise be under an obligation to produce 

a copy of the contract of employment of the contractual worker when directed to do so 

by the Regional Director or his authorized representative. 

A copy of the contract between the contractual employee and the contractor or subcontractor 

shall be furnished the certified bargaining agent, if there is any. 

SECTION 15. Annual Reporting of Registered Contractors - The contractor or subcontractor 

shall submit in triplicate its annual report using a prescribed form to the appropriate 

Regional Office not later than the 15th of January of the following year. The report shall 

include: 

a. A list of contracts entered with the principal during the subject reporting period; 

b. The number of workers covered by each contract with the principal; 

c. A sworn undertaking that the benefits from the Social Security System (SSS), the Home 

Development Mutual Fund (HDMF), Philhealth, Employees Compensation Commission (ECC),

306 


and remittances to the Bureau of Internal Revenue (BIR) due its contractual employees have 

been made during the subject reporting period. 

The Regional Office shall return one set of the duly-stamped report to the contractor or 

subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local 

Employment within five (5) days from receipt thereof. 

SECTION 16. Delisting of contractors or subcontractors - Subject to due process, 

the Regional Director shall cancel the registration of contractors or subcontractors based on 

any of the following grounds: 

a. Non-submission of contracts between the principal and the contractor or subcontractor 

when required to do so; 

b. Non-submission of annual report; 

c. Findings through arbitration that the contractor or subcontractor has engaged in laboronly 

contracting and the prohibited activities as provided in Section 6 (Prohibitions) hereof; 

and 

d. Non-compliance with labor standards and working conditions. 

SECTION 17. Renewal of registration of contractors or subcontractors - All registered 

contractors or subcontractors may apply for renewal of registration every three years. 

For this purpose, the Triplicate Industrial Peace Council (TIPC) as created under Executive 

Order No. 49, shall serve as the oversight committee to verify and monitor the following: 

a. Engaging in allowable contracting activities; and 

b. Compliance with administrative reporting requirements. 

SECTION 18. Enforcement of Labor Standards and Working Conditions - Consistent 

with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the 

Regional Director through his duly authorized representatives, including labor regulation 

officers, shall have the authority to conduct routine inspection of establishments engaged in 

contracting or subcontracting and shall have access to employerís records and premises at 

any time of the day or night whenever work is being undertaken therein, and the right to copy 

therefrom, to question any employee and investigate any fact, condition or matter which may 

be necessary to determine violations or which may aid in the enforcement of the Labor Code 

and of any labor law, wage order, or rules and regulations issued pursuant thereto. 

The findings of the duly authorized representative shall be referred to the Regional 

Director for appropriate action as provided for in Article 128, and shall be furnished the 

collective bargaining agent, if any. 

Based on the visitorial and enforcement power of the Secretary of Labor and Employment 

in Article 128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders 

to give effect to the labor standards provisions of the Labor Code, other labor legislation and 

these guidelines. 

SECTION 19. Solidary liability - The principal shall be deemed as the direct employer 

of the contractual employees and therefore, solidarily liable with the contractor or subcontractor 

for whatever monetary claims the contractual employees may have against the former 

in the case of violations as provided for in Sections 5 (Labor-Only Contracting), 6 (Prohibi-


tions), 8 (Rights of Contractual Employees) and 16 (Delisting) of these Rules. In addition, 

the principal shall also be solidarily liable in case the contract between the principal and 

contractor or subcontractor is preterminated for reasons not attributable to the fault of the 

contractor or subcontractor. 

SECTION 20. Supersession - All rules and regulations issued by the Secretary of 

Labor and Employment inconsistent with the provisions of this Rule are hereby superseded. 

Contracting or subcontracting arrangements in the construction industry, under the licensing 

coverage of the PCAB and shall include shipbuilding and ship repairing works, however, 

shall continue to be governed by Department Order No. 19, s. 1993. 

SECTION 21. Effectivity - This Order shall be effective fifteen (15) days after completion 

of its publication in two (2) newspapers of general circulation. 




Secretary 

--o0o-- 


Amending Certain Provisions of Department Order No. 12, 

Series of 2001 Entitled Omnibus Guidelines for the Issuance 

of Employment Permits to Foreign Nationals 

In the interest of the service and pursuant to the provisions of Articles 5 and 40 of PD 

442, as amended, the following provisions of Department Order No. 12, series of 2001 are 

hereby amended as follows: 

SECTION 1. Rule II, paragraph 1 shall read: 

1. All foreign nationals seeking employment in the Philippines under Rule 1 hereof or 

their prospective employers, shall file their applications with the DOLE Regional Office having 

jurisdiction over the intended place of work, provided however, that in the case of 

foreign nationals to be assigned in subsidiaries, branch offices and joint ventures, 

and those assigned in the headquarters with oversight functions in any of the branch 

offices, operations, or projects in the country, they may file their application in any of 

the Regional Offices nearest their place of work. 

SECTION 2. Rule II, paragraph 5 shall read: 

5. Renewal of Permit - An application for renewal of AEP shall be filed at least fifteen 

(15) days before its expiration. For elective officers, applications for renewal shall be filed 

upon election or upon expiration of the AEP.

308 


Elective and appointive officers are given a grace period of five (5) working days from 

their election or appointment to file application for renewal without penalty. 

Failure to file the application for renewal of permit within the prescribed period shall be 

subject to fines of Five Thousand Pesos (P5,000.00) if filed within six months after the 

prescribed period and Ten Thousand Pesos (P10,000.00) if filed after six (6) months. Failure 

to renew the AEP within one (1) year after its expiration shall be a cause for its revocation or 

cancellation. 

SECTION 3. Effectivity - This Department Order shall take effect fifteen (15) days 

after its publication in two (2) newspapers of general circulation. 

Adopted: 5 March 2002 


Secretary 

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS 


Department of Public Works and Highways Department 

of Transportation and Communications 

Department of the Interior and Local Government Joint Circular 

WHEREAS, national roads and bridges are being unnecessarily damaged through the 

movement over these structures of freight trucks and trailers, whose gross weights and axle 

loads exceed the allowable limits; 

WHEREAS, in order to abate this condition, Republic Act (RA) No. 8794, entitled ìAn 

Act Imposing A Motor Vehicles Userís Charge On Owners Of All Types of Motor Vehicles and 

For Other Purposes,î was enacted by the House of Representatives and the Senate on 06 

June 2000 and 11 April 2000, respectively , and was approved by the President on 27 June 

2000; 

WHEREAS, Section 7c of the Implementing Rules and Regulations (IRR) of RA No. 

8794 provides penalties for overloaded trucks and trailers and prohibits vehicles that exceed 

the allowable gross vehicle weights (GVW) and/or axle loads from proceeding on the roadway; 

WHEREAS, the Department of Public Works and Highways (DPWH) has installed 

weighbridge stations as strategic locations along national roads which can determine the 

weights of trucks and trailers; and 

WHEREAS, there is a need to provide efficient and coordinated use of the weighbridge 

and portable axle load weighing stations in order to implement the provisions of R.A. No.


8794 and Section 7c of its IRR so as to prevent the movement on national roads and bridges 

of overloaded trucks and trailers; 

NOW, THEREFORE, in consideration of the above premises, this Circular is hereby 

issued for compliance by all concerned: 

1. The DPWH thru its Regional/District Offices, shall assign five (5) personnel per shift in 

each weighbridge/portable axle weighing station. The Department of Transportation and 

Communications (DOTC) thru the Land Transportation Office (LTO) shall assign one (1) 

personnel per shift of its duly deputized DPWH or PNP-TMG personnel at the said station. 

The Department of the Interior and Local Government (DILG) thru the Philippine National 

Police-Traffic Management Group (PNP-TMG) shall assign one (1) personnel per shift. Each 

station shall be manned 24 hours a day, including Saturdays, Sundays and Holidays, divided 

into three (3) shifts as follows: 0800 Hr - 1600 HR - 2400 HR and 2400 HR - 0800 HR. 

2. The DPWH shall be responsible for the operation of the weighbridge and portable axle 

load weighing stations along national roads nationwide. At each weighbridge or portable axle 

load weighing station, the DPWH staff shall weigh loaded trucks and trailers using the 

approximate equipment, and shall determine and indicate in the prescribed form the actual 

load per axle and the total allowable gross vehicle weight. Based on these data, the DPWH 

staff shall identify the overloaded trucks and trailers, i.e., those that exceed the allowable 

vehicle dual-wheel axled load of 13,500 kg and gross vehicle weights shown in Annex ìAî *, 

and shall immediately notify the LTO and PNP-TMG personnel assigned at the station to take 

appropriate action on these vehicles as provided hereunder. For the overloaded vehicles, 

the DPWH staff shall turn over one copy each of the corresponding accomplished forms 

containing the vehicle axle load and weight data to the LTO and PNP-TMG personnel at the 

station. 

3. The DOTC, thru the LTO, shall be responsible for imposing penalties on overloaded vehicles 

as determined through the operation of weighbridge and portable axle load weighing stations 

as provided in Section 6 of RA No. 8794 and pursuant to Section 7c of the IRR. The LTO 

personnel or its duly deputized DPWH or PNP-TMG personnel assigned at the station shall 

issue to the driver of the overloaded vehicle, identified by the DPWH staff per item 2 above, 

a Temporary Operatorís Permit (TOP) indicating therein the excess load and the corresponding 

penalty to be paid in the amount equivalent to twenty-five percent (25%) of the Motor Vehicle 

Userís Charge (MVUC) applicable to the vehicle at the time of infringement, provided that the 

penalty shall be waived for loadings exceeding the allowable GVW by a tolerance of less than 

five percent (5%). 

4. The DILG, thru the PNP-TMG, pursuant to Section 7c of the IRR, shall disallow any truck 

or trailer from proceeding on the roadway if, as determined by the DPWH from the operation 

of the weighbridge or portable axle load weighing station, either any of the dual-wheel axle 

load of the vehicle exceeds 13,500 kg or the total vehicle load exceeds one hundred fifty 

percent (150%) of the maximum allowable GVW. 

This Order shall take effect fifteen days after the receipt of three (3) copies thereof by 

the Office of the National Administrative Register (ONAR), U.P. Law Center, Diliman, Quezon 

City and its publication in two (2) newspapers of nationwide general circulation. 

*Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman 

Quezon CIty.

310 



(SGD.) PANTALEON D. ALVAREZ 

Secretary 

Department of Transportation and Communication 

(SGD.) JOSE D. LINA, JR. 

Secretary 

Department of Interior and Local Government 

(SGD.) SIMEON A. DATUMANONG 

Secretary 

Department of Public Works and Highways 

Signed in the presence of: 

(SGD.) EDGARDO M. ABENINA (SGD.) RENATO M. PAREDES 

Assistant Secretary Police Chief Superintendent 

Land Transportation Office Traffic Management Group 


(SGD.) LINDA M. TEMPLO 

Director III 

Planning Service, DPWH 

--o0o-- 


Approval of Design Plans Prepared by DPWH Consultants 

To expedite the implementation of infrastructure projects and to delineate the responsibility 

of Design Consultants in the event of failure of facilities and/or significant changes during 

construction due to faulty design, final plans prepared by Consultants will no longer be 

subjected to detailed review by the Bureau of Design and approval by the Secretary or 

Undersecretary concerned. 

Henceforth, the following guidelines shall be observed in the preparation and review of 

design plans by Consultants: 

1. The design criteria and specifications shall be in accordance with the DPWH Design 

Guidelines, Criteria and Standards. The Consultants shall seek approval of the Bureau of 

Design (BOD) for any deviation/modification thereof. 

2. Preliminary plans, design reports and cost estimates shall be submitted to the BOD, thru 

the DPWH Implementing Office, for review of the design concepts of the proposed structures/ 

facilities. Final plans shall be prepared by the Consultants after considering the comments of 

BOD. The plans shall incorporate the BOD comments. 

3. The final plans should indicate on each sheet the full name, signature, field of expertise 

and, if required, the PRC registration number and seal of the corresponding designer of the


Consultant. The Project Manager of the Consultant shall sign/approve the plans before 

submitting the plans and other requirements of the consultancy contract to the DPWH 

implementing office. 

4. A note shall be indicated on the cover sheet of the plans stating that the Design Consultant 

shall be held fully responsible for failure of the facility due to faulty design except for the 

changes made without the conformity of the Consultant. The Project Manager of the Consultant 

shall sign below this note. 

5. The Head of the Implementing Office, after consultation with the BOD to assure that all 

design requirements have been complied with, shall officially return the plans to the Consultant 

for reproduction with the information that the plans are accepted for implementation. Such 

action of the Implementing Office and the BOD should not diminish the full responsibility of 

the Design Consultant mentioned in paragraph 4. A microfilm copy of the complete set of 

signed plans shall be furnished by the Consultant to the BOD. 

6. The DPWH Implementing Office shall verify compliance of the Consultant with the required 

outputs as specified in the consultancy contract before issuing a certificate of completion of 

consulting services to the Consultant. 

7. Revised design plans prepared and signed by the Construction Supervision Consultant 

(CSC) incorporating major changes (i.e. significant changes in alignment, change in type or 

main components of structures, introduction of new work items) in original design during the 

project implementation shall be subject to approval/concurrence by the original Design 

Consultant prior to submission to the BOD for conceptual review. 

8. The Consultant shall be liable for any additional costs that may be incurred by the Government 

due to major changes as defined in paragraph 7 due to faulty or defective design or any 

aspect of the detailed engineering. If the change/s is/are due to the Consultantís negligence, 

fraud or delay, the Consultant shall likewise be made liable for damages. These provisions 

shall be invariably incorporated in the draft consultancy agreement. 

Implementing Offices shall evaluate during the project implementation the appropriateness 

of design plans prepared by Design Consultants to the actual field conditions and a monthly 

report thereof shall be submitted to the Chairman of the Prequalification, Evaluation and 

Awards Committee (PEAC) for Consultancy of the Central Office and the Director of BOD 

until the completion of the project. 

This order shall amend/modify other previous issuances inconsistent herewith and 

shall take effect immediately. 


(SGD.) SIMEON A. DATUMANONG 

Secretary

312 


DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT 



Implementing Rules and Regulations on 

Foreign Donations Under Section 105 (I) of the Revised 

Tariff and Customs Code of the Philippines 

WHEREAS, Section 105 paragraph ìIî of the Revised Tariff and Customs Code of the 

Philippines as amended, provides that ìImported articles donated to or for the account of any 

duly registered relief organization upon certification by the Department of Social Welfare 

and Development (DSWD) or the Department of Education, Culture and Sports as the case 

may beì shall be exempt from the payment of import duties; 

WHEREAS, Section 1 of Republic Act No. 4653, otherwise known as An Act to 

Safeguard the Health of the People and Maintain the Dignity of the Nation by Declaring it a 

National Policy to Prohibit the Commercial Importation of Textile Articles Commonly Known 

as Used Clothing and Rags, provides that it shall be unlawful for any person, association or 

corporation to introduce into any point in the Philippines textile articles commonly known as 

used clothing and rags except when these are imported under paragraph ìIî of Section 105 

of Republic Act No. 1933, Tariff and Customs Code of the Philippines; 

WHEREAS, it has been observed that there is an increasing number of organization 

receiving donations from foreign sources, particularly used clothing, which have reportedly 

resulted in the influx of used clothing in the open market; and as such, DSWD Department 

Order No. 28, Series of 1999 was issued, holding in abeyance all applications of duty free 

entry of non-commercial quantities of used clothing; 

WHEREAS, there is a need to strictly regulate and monitor donations of imported 

articles to duly accredited relief organization to ensure that these articles shall be received 

exclusively and entirely by the intended beneficiaries, and that these articles will not find their 

way in the open market for sale, so as not to jeopardize our economy; 

NOW, THEREFORE, to properly and effectively enforce the provisions of Section 109 

(1) of the Revised Tariff and Customs Code of the Philippines (TCCP), these implementing 

guidelines are hereby promulgated. 

SECTION 1. Definition of Terms - For purpose of this Administrative Order, the following 

terms shall be defined as: 

a. Relief - is the provision of interventions to alleviate, ease and/or mitigate a distressed, 

stressful and/or critical situation affecting persons, families, groups or communities. 

b. Donated Imported Articles - are food and non-food items, except used clothing, that are 

responsive to any situation affecting disadvantaged or distressed individuals and families in 

order to meet their basic needs. This may also be termed as ìforeign donations.î


c. Non-Commercial Quantity of Relief Goods - refers to the volume of food and non-food 

items that are donated, not in excess of the amount needed by the beneficiaries as specified 

in the relief distribution plan of the organization as approved by the DSWD Field Office(s) 

concerned. 

d. Duly Registered Relief Organization - is an organization duly registered or licensed or 

accredited by DSWD. 

e. Outer Port - is any port of entry within the Philippines other than the Port of Manila 

(POM), Manila International Container Port (MICP) and Ninoy Aquino International Airport 

(NAIA). 

f. Packing List - an itemized list of goods/articles with corresponding volume/units sent to 

recipient. 

g. Approved Plan - is a duly notarized plan of distribution of donated goods, prepared by 

the agency, confirmed by the social welfare office and endorsed by the DSWD Field Office. 

SECTION 2. General Guidelines - The following general guidelines shall govern all 

foreign donations consigned to relief organizations; 

a. Only duly registered relief organizations may apply for a certification for duty free entry 

of foreign donations. 

b. The local government units (LGUs) need not go through the DSWD as their importations 

are covered by Section 1205 of the Tariff and Customs Code of the Philippines (TCCP) 

which provides that all importations by the government, for its own use, or that of its subordinate 

branches and instrumentalities, owned and controlled by the government, shall be subject to 

duties, taxes, fees and other charges provided for in the TCCP. 

c. The duly registered organizations shall consult with the concerned DSWD Field Offices 

for the confirmation and approval of their plan of distribution before negotiating for or accepting 

any foreign donations. The concerned DSWD Field Offices shall confirm and approve the 

plan of distribution, stating the specific purposes, areas of distribution, and the kind and 

volume of goods relevant to the identified purposes. 

d. The concerned DSWD Field Offices shall forward all applications to the Standards Bureau. 

The latter shall review and evaluate such request before any appropriate action is endorsed 

or recommended by the SB Director to the Undersecretary for Management and Operations. 

Whenever appropriate, the Undersecretary for Management and Operations shall then endorse 

such request for the entry of the foreign donations into the Philippines free of duty to the 

Department of Finance (DOF). 

e. In cases where an organization operates nationwide, said organization shall secure approval 

from each Field Office having jurisdiction over the area where the distribution of goods shall 

take place. The DSWD shall not allow organizations with specific areas of operation, to 

expand their area of coverage for the purpose of accepting foreign donations. 

f. Foreign donations for release at the Outer Ports shall be under the authority of the Field 

Office concerned and the Standards Bureau (SB).

314 


g. Items not listed in the packing list or in excess of the approved plans shall not be released 

to the consignee. After compliance with the pertinent provisions of the Tariff and Customs 

Code of the Philippines, as amended, and other approved laws, rules and regulations (under 

Section 3602. Various Fraudulent Practices Against Customs Revenue) the same shall be 

forfeited in favor of the Philippine Government. Notice on this shall be given to the Bureau of 

Customs (BOC), and the Department of Finance (DOF), subject to existing laws. 

h. Each shipment should not exceed a quarterís requirement of the organizationís relief 

program, except when there is a state of calamity that requires a bigger volume of goods. 

i. Goods subject of request for duty free entry shall be assessed and endorsed by the 

DSWD Field Office where the duly registered relief organizations are based. 

i. Goods that are subject of applications for entry into the Philippines free of duty 

shall be limited to non-commercial quantity of relief commodities that are necessary 

to accomplish the objectives of the social welfare and development programs and 

services. 

ii. Importation of all goods shall be supported by the required documents as 

mentioned in Section 5 of this Administrative Order, including contracts/agreements 

if there are any, and shall not violate existing laws or policies and guidelines 

governing such importation. 

iii. If goods to be donated are medicines, a certification by the Bureau of Food 

and Drugs (BFAD) of the Department of Health (DOH) is required, stating the 

purpose of the medicines and the fact that the same may be used by the intended 

beneficiaries without the need of a prior prescription. 

iv. All the subject goods shall be for free distribution exclusively to the identified 

clients of the duly registered relief organizations. 

v. Donation/Importation of used clothing shall be strictly prohibited in order to 

safeguard the health of the people and maintain the dignity of the nation. 

j. The DSWD shall transact only with the organizations concerned or their duly authorized 

representatives. Recipient organizations shall make the necessary representations and followup 

of the request for endorsement from the DSWD. 

k. Agencies or organizations, to whom a duty free certification is issued, shall submit to the 

Field Office concerned a status report of the distribution or utilization of commodities in 

accordance with approved/submitted plans, indicating: (a) the category and number of 

recipients, (b) areas covered and (c) the purpose. This report must be certified by the duly 

authorized representatives of DSWD, and/or Local Government Units, and submitted within 

one (1) month from withdrawal from the Bureau of Customs. Thereafter, a report of utilization 

shall be submitted monthly thereafter until all the donated goods are utilized or distributed, as 

the case may be. Non-submission of the utilization report shall be a ground for refusal of 

certification for duty-free entry of succeeding donations or revocation of Certificate of 

Accreditation. 

l. Foreign donors or resource agencies shall consign their donations only to duly registered 

relief organizations by the DSWD, and in certain cases, to DSWD. Re-consignment of the


goods that have already arrived shall not be allowed pursuant to Memorandum Order dated 

March 21, 1998 issued by the Department of Finance. 

m. All releases, whether or not the port of entry is Manila, shall require the presence and 

signature of the duly authorized representative of the DSWD. 

SECTION 3. Standard Condition - All applications for duty-free importation must comply 

with all the rules, regulations and conditions imposed by the DOF, and in addition, shall be 

subject to the following conditions: 

a. All the necessary clearances from the appropriate government agencies shall be secured 

by the registered relief organization. 

b. The goods shall be guarded or escorted by the authorized representatives of the Bureau 

of Customs and the DSWD directly from the Bureau of Customs (BOC) to the warehouse of 

the duly registered relief organization. 

c. The opening, stripping, inventory and distribution shall be fully documented by DSWD, 

which shall include photo documentation. 

d. The distribution of all donations shall be monitored by the DSWD and documented by the 

donee, using the relief distribution sheets. A notarized copy of the summary report of the 

distribution, as well as photo documentation, shall be submitted to the DSWD Central Office, 

through the concerned Field Office, as basis for validating the distribution of donations. 

e. Such other conditions that the DSWD may impose to ensure that the objectives of this 

Administrative Order will be achieved. 

SECTION 4. Requirements - To facilitate the issuance of certification for duty free 

release of foreign donation, the following documents (in three (3) copies each), shall be 

submitted to the DSWD at least two weeks prior the scheduled arrival of the donation: 

1. Certificate or Deed of Donation duly authenticated by the Philippine Consular Office of 

the country of origin, with accompanying certificate as to fitness of food and medicine for 

consumption. 

2. A separate duly notarized Deed of Acceptance by the donee; 

3. Valid and subsisting License/Accreditation/Registration Certificate issued by DSWD; 

4. Shipping documents such as original and/or duly certified true copy of Bill of Lading and 

Packing List; 

5. Duly notarized Plan of Distribution, certified and endorsed by the DSWD Regional Office(s). 

6. In case of medicines, a certification from the Department of Health that the commodities 

are allowed for free distribution and use; 

7. Duly notarized Distribution Report on latest shipment, certified correct by the concerned 

DSWD Field Office;

316 


8. In case of relief items other than food and medicines, proof of prior agreements or 

approved arrangements with the appropriate government agencies. 

SECTION 5. Pursuant to the first paragraph of Section 105 of the Revised Tariff and 

Customs Code, ìany article sold, bartered, hired or used for purposes other than that they 

were intended for without prior payment of the duty tax and other charges which would have 

been due and payable at the time of entry if the article had been entered without the benefit 

of this section, shall be subject to forfeiture and the importation shall constitute a fraudulent 

practice against customs revenue punishable under Section Thirty Six Hundred and Two, as 

amended of this Code. Further, paragraph two of Section 3602 of the said Code provides 

that, .. ìin addition to the punitive action of confiscation (forfeiture) of the imported goods the 

law has provided that the guilty party should also suffer by paying a fine and a temporary 

loss of liberty; and if the offender is an alien, he is subject to deportation after serving his 

sentence.î 

Violations of any of the above conditions shall bar certification for duty free entry of 

succeeding donations, and shall subject the organizations to revocation of its certificate of 

accreditation and/or its concerned officers or members to criminal, civil and administrative 

sanctions. 

Non compliance with the rules and regulations shall subject the organization concerned 

to the penalties provided by law, the suspension or cancellation of its license or accreditation 

as a welfare relief agency, as well as the loss of tax exemption privilege, after due investigation, 

in accordance with the Tariff and Customs Code. 

SECTION 6. Separability Clause - If any provision of these implementing rules and 

regulations is held invalid or unconstitutional, the other provisions not so declared shall 

remain valid and subsisting. 

SECTION 7. Effectivity Clause - This Administrative Order shall take effect immediately 

and shall supercede Department Order No. 11, Series of 1994; Department Order No. 12, 

Series of 1995; Department Order No. 02, Series of 1996; Department Order No. 01, Series 

of 1999 and Department Order No. 04, Series of 1999. 


(SGD.) CORAZON JULIANO-SOLIMAN 

DSWD Secretary 

DEPARTMENT OF TRADE AND INDUSTRY 


Department Administrative Order No. 05 

Revised Rules and Regulations Concerning the 

Issuance of the Import Commodity Clearance


Pursuant to the provisions of R.A. 4109, R.A. 7394 and E.O. 913 Series of 1993, the 

following rules and regulations governing the issuance of the import commodity clearances 

are hereby prescribed and promulgated for the compliance, information and guidance of all 

others concerned: 

1.0 

Scope 

1.1 This Department Administrative Order prescribes the rules and regulations on the issuance 

of the Import Commodity Clearance to import shipments covered by mandatory Philippine 

National Standards under the implementation authority of the Department of Trade and 

Industry, through the Bureau of Product Standards. 

2.0 


For the purpose of this Order, the following definitions shall apply: 

2.1 BPS - Bureau of Product Standards 

2.2 Certifying/Testing Organization - An impartial body, governmental or non-governmental, 

possessing the necessary competence and reliability to test and certify products for conformity 

to the requirements of standards. 

2.3 Test Certificate/Report - A document issued by a third party certifying/testing organization 

to a particular import shipment/commodity attesting that the sampling, and testing thereof are 

in accordance with a specific Philippine National Standard or BPS-recognized international/ 

foreign standard. 

2.4 DTI - Department of Trade and Industry. 

2.5 Evaluation - The actual inspection, sampling and testing of product. 

2.6. International/Foreign Standard - A standard developed by international bodies like the 

International Organization for Standardization, International Electrotechnical Commission, 

International Telecommunication Union, or by the National Standards Body of a foreign 

country. 

2.7 Import Commodity Clearance - A document issued by DTI attesting that the quality of an 

imported product conforms to a Philippine National Standard or BPS - recognized international/ 

foreign standard. 

2.8 National Standards Body - A nationally-recognized body whose principal function at the 

national level, by virtue of its charter or national statutes is the development, promulgation, 

publication, promotion and implementation of national standards. 

2.9 Philippine National Standards - Standards issued or developed by the BPS through the 

BPS Technical Committees.

318 


2.10 Conditional Release - Document issued to an importer allowing the temporary release 

of goods from Customís custody, upon compliance with the Customís requirements, while 

awaiting process completion of its application for Import Commodity Clearance. 

3.0 

Application for Import Commodity Clearance 

3.1 Importers of products covered by mandatory Philippine National Standards shall apply 

for the Import Commodity Clearance with the nearest DTI Regional/Provincial Office, 

immediately upon arrival of their import shipments and approval of their import entry with the 

Bureau of Customs (BOC). 

3.2 Application for an Import Commodity Clearance shall be made in forms obtainable from 

the nearest DTI Regional/Provincial Offices. It shall be filed in triplicate with the nearest DTI 

Regional/Provincial Office, together with the following documents: 

3.2.1 Packing List 

3.2.2 Certified True Copy of Import Entry 

3.2.3 Commercial Invoice 

3.2.4 Bill of Lading/Airway Bill 

3.2.5 Certified True Copy of Customís Examinerís Findings 

3.2.6 DTI Business Registration Certificate/SEC Registration Certificate 

3.2.7 Summary of Batch Numbers/Serial Numbers of the product(s) covered by 

mandatory standard 

3.2.8 Power of Attorney (In cases where the ICC application is filed by persons 

with managerial/supervisory capability connected with the company authorizing 

them to process said ICC application) 

3.2.9 Board Resolution (In cases where the application is filed by persons with 

managerial or supervisory capability connected with the corporation authorizing 

them to process said ICC application) 

3.2.10 Where applicable, original copy of the test reports from the Accredited 

Testing Laboratory of the country of origin to be sent directly to DTI Regional/ 

Provincial Offices where the application is filed. 

4.0 

Processing and Issuance of Import Commodity Clearance 

4.1 Applications for the Import Commodity Clearance (ICC) shall be processed through any 

of the following three (3) options available to an importer: 

4.1.1 Import shipment without Test Certificate/Report 

4.1.2 Import shipment with Test Certificate/Report 

4.1.3 Import shipment with Philippine Standard (PS) Quality and/or Safety 

Certification Mark 

4.2 In order for an importer to avail of the options provided for in Section 4.1.2 and Section 

4.1.3, a Memorandum of Understanding (MOU) and/or Mutual Recognition Arrangement 

(MRA) shall first be entered into by the BPS and its counterpart National Standards Body 

(NSB) of the exporting country.


5.0 

Import Shipment Without Test Certificate/Report 

5.1 An importation without test certificate may be issued conditional release from Customís 

custody by the DTI Regional/Provincial Office, upon importerís compliance with Customís 

requirements and any other requirements of the DTI. 

5.2 Pending the issuance of the Import Commodity Clearance, no distribution, sale, use and/ 

or transfer to any place other than the address specified in the conditional release, in whole 

or in part, shall be made by the importer or any person. To ensure that no distribution, sale, 

use and/or transfer to any place other than the address specified in the conditional release, 

the importer shall allow authorized DTI personnel to conduct inspection/inventory of the 

import shipment within the official working hours. 

5.3 The import shipment shall be subjected to inspection and sampling by authorized DTI 

Regional/Provincial Officer(s). Samples drawn for testing shall be properly sealed and signed 

by the authorized DTI Regional/Provincial Officer(s) in such a way as to preserve the integrity 

of the samples. It shall be sent to the BPS Testing Center for proper coding and testing. 

5.4 Based on the results of the inspection, sampling and testing, the importation shall be 

evaluated by duly authorized DTI personnel to determine its compliance with the requirements 

of a specific Philippine National Standard. 

5.5 Upon compliance with the requirements of the specific Philippine National Standard, the 

Import Commodity Clearance shall be issued by the concerned DTI Regional/Provincial 

Director for a specific product on a per shipment per Bill of Lading/Airway Bill basis. 

5.6 If the results of tests showed noncompliance with the requirements of a specific Philippine 

National Standard, a re-test shall be conducted. The results of the re-test should show 

conformance to the requirements of the specific Philippine National Standard, before an 

Import Commodity Clearance (ICC) can be issued. 

6.0 

Import Shipment With Test Certificate/Report 

6.1 Import shipments with accompanying original test certificate, based on relevant Philippine 

National Standards, issued by BPS recognized testing laboratory. 

6.2 When necessary, shipments that have been tested/certified abroad as meeting Philippine 

National Standards may be randomly subjected to resampling and testing by the DTI Regional/ 

Provincial Offices for further confirmation. 

6.3 In the event that random checks of import shipments reveal inconsistencies of the quality 

of the actual products with the test certificates issued in the country of origin, all subsequent 

import shipments of such products from that country shall be subjected to a per shipment 

sampling and testing by DTI Regional/Provincial Offices regardless of who the importers are 

and notwithstanding their certification abroad. This per shipment sampling and testing shall 

continue until such time that the consistency of the quality of the import shipments with the 

test certificates issued in the country of origin is reestablished to the satisfaction of DTI.

320 


6.4 Upon compliance with the requirements of the specific Philippine National Standard and 

other applicable DTI rules and regulations, the Import Commodity Clearance will be issued 

by the concerned DTI Regional/Provincial Director for a specific product on a per shipment 

per Bill of Lading/Airway Bill basis. 

7.0 

Import Shipment with Philippine Standard (PS) 

Quality And/Or Safety Certification Mark 

7.1 Importers of products manufactured by foreign companies and issued the license to use 

the Philippine Standard (PS) Quality or Safety Certification Mark as per DAO 1:1997 and its 

amendments or revisions thereafter shall be issued a Certificate of Exemption 

8.0 

Product Identification and Traceability 

8.1 Importers shall be required to submit the product identification and traceability of the lot/ 

batch being imported. It shall likewise be the basis for the issuance of the ICC. 

8.2 Importers shall ensure that the imported products are properly labeled as to the product 

identification and traceability of the production lot/batch. 

9.0 

Denial of Import Commodity Clearance 

9.1 Import shipments not complying with the requirements of the specific Philippine National 

Standards and/or other rules and regulations of the DTI shall not be issued an Import 

Commodity Clearance. 

9.2 All import shipments denied of the requisite Import Commodity Clearance shall not be 

disposed of in the domestic market in any manner. They must be properly disposed of in 

accordance with the provisions of the Tariff and Customs Code and other pertinent rules and 

regulations. 

10.0 

Import Commodity Clearance Mark 

10.1 The design of the Import Commodity Clearance Mark shall be in accordance with the 

illustration in Annex 1*. 

10.2 The Import Commodity Clearance Mark shall be affixed on the product covered by the 

Import Commodity Clearance to be issued by the DTI Regional/Provincial Office. 

10.3 The Import Commodity Clearance Mark shall not be used on any product in a misleading 

manner. 

*Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, 

Quezon City.


11.0 

Fees, Charges and Other Expenses 

11.1 Fees and charges to be paid by the importers shall be as follows: 

11.1.1 Application Form: Three Hundred Pesos (P300.00) 

11.1.2 Transportation, board and lodging costs of inspector/s during inspection 

shall be borne by the applicant/importer, when necessary. 

11.1.3 Testing Expense/Fee - All expenses and fees (including freight and handling 

of samples) charged by DTI or DTI-designed laboratories for testing samples 

shall be borne by the applicant/importer. It shall be payable upon submission of 

the samples. 

11.1.4 Processing Fee (non refundable, payable upon filing of the application on 

per product per Bill of Lading/Airway Bill basis, assessed by the BPS based on 

the amount declared in the Invoice. 

Invoice Value Processing Fee 

Up to PHP 500,000.00 -Php 5,000.00 

Over PHP 500,000 up to PHP 1 Million -Php 7,500.00 

Over PHP 1 Million -Php10,000.00 

11.2 Fees and charges are subject to changes, upon notice, as may be necessary. 

11.3 The company/importer shall be answerable for accidents that may happen during the 

entire duration of the inspection, if it can be proven that fault or negligence of the latter 

contributed to the same. 

12.0 

Special Cases 

12.1 In case there is a lack of needed supply, coupled with constraints on locally available 

testing equipment and the long testing period required for certain products, separate guidelines 

may be issued by BPS relative to the implementation of Import Commodity Clearance 

procedures for products concerned. 

13.0 

Disposition of Samples 

13.1 All remaining samples drawn from a shipment for monitoring and testing purposes 

which conform to the requirements of the standard shall be returned to the importer as per 

DAO 5, series of 1996 or its future amendments and revisions. 

13.2 If the importer fails to claim the samples after the stated due date in the notice to claim. 

DTI shall dispose of these samples in any manner it may deem appropriate, under existing 

accounting and auditing rules.

322 


14.0 

Penalties 

14.1 Any violation of this Order shall be subject to the administrative actions under E.O. No. 

913, Series of 1983 without prejudice to the criminal or civil actions under R.A. No. 4109 

and/or R.A. 7394. 

15.0 

Separability Clause 

15.1 If for any reason any article or provision of this Order or any portions thereof or the 

application of such section, provisions or portion thereof to any person or group or 

circumstances is declared invalid or unconstitutional, the remainder of this Order shall not be 

affected by such declarations. 

16.0 

Repealing Clause 

16.1 DAO No. 8, Series of 1995 and all other orders or parts thereof which are inconsistent 

with the provisions of this Administrative Order are hereby repealed or amended accordingly. 

17.0 

Effectivity 

17.1 This Order shall take effect after fifteen (15) days following its publication in two 

newspapers of general circulation/official gazette. 

Adopted: 04Dec. 2001 

RECOMMENDED 

(SGD.) JESUS L. MOTOOMULL (SGD.) ADRIAN S. CRISTOBAL, JR. 

Director Undersecretary 

APPROVED BY: 

(SGD.) MAR ROXAS 

Secretary 

HOUSING AND LAND USE REGULATORY BOARD 


HLURB Administrative Order No. 01, s. 2001 

Resolution No. R-683, Requiring the Registration of 

Subdivision/Condominium Owner/Developer as Real Estate Dealer


Attached herewith is the text of the subject resolution and the Guidelines in the 

Registration of Real Estate Dealers which were approved by the Board of Commissioners on 

19 October and 16 November 2000, respectively. 

The above were published in the Manila Bulletin on 18 January 2001 and in Manila 

Times on 23 January 2001, and, in accordance with the provisions of law, shall take effect 

fifteen (15) days from its last publication on 07 February 2001. 

Please be guided accordingly. 


(SGD.) ROMULO Q.M. FABUL 

Resolution No. R-683, s. 2000 

Requiring the Registration of Subdivision/Condominium Owner/Developer 

as Real Estate Dealer 

WHEREAS, the provision of housing affordable for every family has been the centerpiece 

program of the present administration; 

WHEREAS, the said administration has assured the provision of all available resources 

to private housing developers to construct a targeted number of new housing units annually 

until the end of the presidentís term; 

WHEREAS, accordingly, there is a need that the real estate business be closely 

supervised and regulated to usher a favorable atmosphere for the housing industry for the 

satisfaction of the developers and the buyers; 

WHEREAS, there is a need to register real estate dealers, apart from real estate 

brokers and salesmen, considering that real estate dealers are responsible for the delivery of 

a clean title, completion of the projectís facilities and construction of the housing units in 

accordance with government standards; 

WHEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the subdivision 

and condominium owners/developers be registered as real estate dealers with the Board 

pursuant to Sec. 11 of PD 957 otherwise known as the Subdivision and Condominium Buyers 

Protective Decree. 

Approved 19 October 2000, Quezon City, Metro Manila. 

(SGD.) LEONORA VASQUEZ-DE JESUS 

Chairperson 

(SGD.) LUALHATI R. BUENAFE (SGD.) ROMULO Q.M. FABUL 

Asst. Chief State Prosecutor, DOJ Commissioner and Chief Executive 

Officer 

Ex-Officio Commissioner

324 


(SGD.) ALEXANDER A. PADILLA (SGD.) TERESITA A. DESIERTO 

Asst. Secretary, DPWH Commissioner 

Ex-Officio Commissioner 

(SGD.) FORTUNATO R. ABRENILLA (SGD.) ROQUE ARRIETA MAGNO 

Representative, NEDA Commissioner 


1. Dealer Defined 

Attested: 

(SGD.) CHARITO M. BUNAGAN 

Board Secretary 

Guidelines in the Registration of Real Estate Dealers 

A dealer shall mean any person directly engaged as principal in the business of buying, 

selling; or exchanging real estate whether in full-time or part-time basis. [section 2(k) PD 

957]. A bulk buyer, which is for purposes of this guidelines, is covered in the definition of a 

dealer, shall mean any person who acquires a lot or a portion of the subdivision and who, 

with or without re-subdividing or introducing housing or other facilities, sells the same, under 

its previous license to sell or in a new license to sell in his name to the public. 

2. Scope of Application 

A subdivision or condominium owner/developer who desires to sell lots or units in his 

projects shall register as a real estate dealer with this Board. 

3. Time of Registration 

1) A developer who is intending to engage in real estate business and who, for the first time, 

is developing a subdivision or condominium intended for sale to the public, shall apply as 

a real estate dealer simultaneous to its application for registration and license to sell of its 

first project. 

2) A developer who has been engaged in real estate business and who owns or develops a 

project already registered and licensed by this Board shall apply for registration with this 

Board upon the effectivity of this guidelines. 

4. Renewal of Registration 

The certificate of registration for dealers shall expire on the first day of December of 

each year, Renewal of registration for the succeeding year shall be granted upon filing an 

application made not less than thirty (30) nor more than sixty (60) days before the first day of 

the ensuing year and upon payment of the prescribed fee without the necessity of filing 

further statements or information, unless specified by the Board. All applications filed beyond 

said period shall be treated as original applications. 

5. Registry of Dealers


The names and addresses of all persons registered as dealers shall be recorded is a 

Register kept by the Board which shall be open to public inspection. 

6. Revocation of Registration 

An application for registration may be refused or any registration already granted 

thereunder, revoked by the Board if, after reasonable notice and hearing, it shall be determined 

that such applicant or registrant: 

1. has violated any provision of PD 957 and other related laws or any rule or regulation 

made thereunder, or 

2. has made material false statement in his application for registration, or 

3. has been guilty of a fraudulent act in connection with any sale of a subdivision lot or 

condominium unit, or 

4. has demonstrated his unworthiness, to transact the business of dealer. 

7. Complaint against Dealers 

In case of a complaint against a dealer, notice thereto shall be given to all the brokers 

or salesmen employed by said dealer. 

8. Suspension of Dealers 

Pending the hearing of the complaint, the Board shall have the power to order the 

suspension of the dealerís registration provided that such order shall state the cause for the 

suspension. 

9. Effects of Suspension/Revocation 

The suspension or revocation of the registration of a dealer shall carry with it the 

suspension or revocation of the certificates of registration and licenses to sell of all the 

projects owned/developed by said dealer. 

10. Notice to the Register of Deeds. 

An order of suspension or revocation of registration of a dealer shall be furnished the 

Register of Deeds of the city or municipality where said dealersí project is located. The 

notice shall contain an advice to suspend the registration of all transactions involving the 

dealerís projects or any lot or unit in said project. 

11. Effects of the lifting of Suspension/Reinstatement of Registration 

If the suspension is lifted or the registration is reinstated by the Board, the registration 

and license to sell of the projects owned by such dealer shall be automatically restored or 

reinstated. A copy of the decision lifting the suspension or reinstatement of the registration 

shall be furnished the Register of Deeds as well as its brokers and salesmen.

326 

12. Registration Fees 


The Board shall collect registration fees in the amount of Two Thousand (P2,000.00) 

with twenty percent (20%) surcharge on late registrations. 

13. Administrative Fines and Penalties 

An owner/developer, who as dealer, fails to register as provided for under these 

guidelines shall be liable under Sections 38 and 39 of Presidential Decree 952 and related 

laws, rules and regulations being implemented and enforced by this Board. 

14. Effectivity 

These guidelines shall take effect on the first day of January 2001. 

(SGD.) LEONORA VASQUEZ DE JESUS 

Chairperson 

(SGD.) LUALHATI R. BUENAFE (SGD.) ROMULO Q.M. FABUL 

Asst. Chief State Prosecutor DOJ Commissioner and 

Ex-Officio Commissioner Chief Executive Officer 

(SGD.) ALEXANDER A. PADILLA (SGD.) TERESITA A. DESIERTO 

Asst. Secretary, DILG Commissioner 


(SGD.) JOEL L. ALTEA (SGD.) FRANCISCO L. DAGNALAN 


(SGD.) FORTUNATO R. ABRENILLA (SGD.) ROQUE ARRIETA MAGNO 

Representative, NEDA Commissioner 



Attested: 

(SGD.) CHARITO M. BUNAGAN 


--o0o-- 


Resolution No. R686, Applicability of the Loan Ceiling 

for Low Cost* Housing Under HUDCC Memo Circular No. 1 

Quoted hereunder is the text of the subject resolution approved by the Board of 

Commissioners on 21 December 2000: 

WHEREAS, the HUDCC has issued Memo Circular No. 1, Series of 2000 

which defined the loan ceiling on the different housing packages;


WHEREAS, relative thereto, there is a need to determine and clarify its 

applicability to existing low cost housing projects already issued license to sell 

which pegged the price ceiling at P375,000 per housing packages; 

WHEREAS, this need is imperative to facilitate its implementation in a manner 

to obviate foreseen conflict between the buyers and owners/developers on the 

one hand and the financial institution on the other hand, that may be brought 

about by differences in interpretation; 

WHEREAS, this Board recognizes the right of the owners and developers of a 

reasonable return of their investments as well as the vested rights of the buyers 

by virtue of a contractual relationship; 

WHEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that in the 

implementation of the new ceiling of P500,000 for low cost housing packages, the 

following directives shall be followed: 

1. that all licenses to sell that will thereafter be issued by this Board shall indicate 

the loan ceiling of P500,000; 

2. that all licenses to sell on existing low cost housing projects shall be deemed 

amended by this resolution with respect to the adjustment of the price/loan ceiling 

only provided that the said adjustment shall not affect existing contracts of sale**; 

3. that the new loan ceiling will apply to subsequent sales of lots previously subject 

of a contract of sale, provided that the rescission of sales contract thereon was 

done in accordance with the provisions of Republic Act 6552, ìRealty Installment 

Buyer Protection Act.î 

*This refers also to economic housing as defined under Batas Pambansa 220 

**Sec. 2(b) of PD 957, the Subdivision and Condominium Buyers Protective 

Decree defines that the sale or sell shall include every disposition, or attempt to 

dispose, for a valuable consideration, of a subdivision lot, including the building 

and other improvements thereof, if any, in a subdivision project or a condominium 

unit in a condominium project. ìSaleî and ìSellî shall also include a contract to 

sell, a contract of purchase and sale, an exchange, an attempt to sell, an option of 

sale or purchase, a solicitation of a sale, or an offer to sell, directly or by agent or 

by a circular, letter, advertisement or otherwise. 

A privilege given to a member of a cooperative, corporation, partnership or any 

association and/or the issuance of a certificate or receipt evidencing or giving 

the right of participation in, or right to, any land in consideration of payment of the 

membership fee or dues, shall be deemed a sale within the meaning of this 

definition. 

Approved 21 December 2000, Quezon City, Metro Manila. 

The above resolution was published in the Manila Bulletin on 18 January 2001 and in 

Manila Times on 23 January 2001, and, in accordance with the provisions of law, shall take 

effect fifteen (15) days from its last publication on 07 February 2001.

328 


For your information and guidance. 




Commissioner and Chief Executive Officer 

--o0o-- 


Resolution No. R-694, Approving the Deletion of Department of Agriculture 

(DA) and Department of Agrarian Reform (DAR) Certifications in the 

List of Documentary Requirements Prescribed in the Approved Guidelines 

for Plan, Review, Adoption and Approval Process 

In view of the reported difficulties encountered by the local government units in securing 

DA and DAR certifications prior to review/approval of CLUP/ZO causing delay in CLUP/ZO 

approval and compliance to presidential directives on CLUP preparation; the NLUC having 

agreed after a series of special meetings to delete the DAR and DA certifications as 

requirements for the CLUP review/approval, the Board of Commissioners adopted on 21 

May 2001, the subject resolution: 

WHEREAS, the Guidelines for Plan Review, Adoption and Approval Process for 

Component Cities and Municipalities; Highly-Urbanized Cities and Independent Component 

Cities; Cities and Municipalities of Metro Manila and Provinces were approved per Board 

Resolutions Nos. 561 & 569 s. 1995 & 577 s. of 1996 and subsequently consolidated into 

Volume IX of the Guidelines for the Formulation/Revision of Comprehensive Land Use Plans 

approved per Board Resolution No. 637, S. of 1999; 

WHEREAS, the same guidelines require submission of DA and DAR Certifications as 

part of the documentary requirements for review and approval of Comprehensive Land Use 

Plans (CLUPs) and Zoning Ordinances (ZOs); 

WHEREAS, Republic Act (RA) 8435 otherwise known as the ìAgriculture and Fisheries 

Modernization Act of 1997î was signed into law in 22 December 1997 and became effective 

in February 9, 1998; 

WHEREAS, Section 10 of RA 8435 provides that within one (1) year from the finalization 

of the Strategic Agriculture and Fisheries Development Zones (SAFDZ) in every city and 

municipality, all cities and municipalities shall have prepared their respective land use plans 

and zoning ordinances incorporating the SAFDZs; 

WHEREAS, Board Resolution No. 628 s. of 1998 provides the Guidelines for the 

incorporation of SAFDZs in the enactment and updating of LGU land use and zoning plans 

and ordinances; 

WHEREAS, the President issued several directives relative to the finalization of CLUPs 

by local government units;


WHEREAS, the LGUs have difficulty complying with the requirements to submit DA 

and DAR Certifications causing delay in the approval of CLUPs and subsequent compliance 

to the said directives; 

WHEREAS, the members of the National Land Use Committee (NLUC) in its meeting 

on 17 April 2001 agreed to delete the DA and DAR Certifications as requirements for the 

CLUP review/approval. 

WHEREFORE, BE IT APPROVED AS THE SAME IS HEREBY APPROVED, that DA 

and DAR Certifications be deleted from the list of documentary requirements prescribed in 

the Guidelines for Plan Review, Adoption and Approval Process. 

Adopted: 19 July 2001 

(SGD.) MICHAEL T. DEFENSOR 

Chairman 

(SGD.) JOSE C. CALIDA (SGD.) ROMULO Q.M. FABUL 

Undersecretary, DOJ Chief Executive Officer 

Ex-Officio Commissioner and Commissioner 

(SGD.) EDUARDO R. SOLIMAN, JR. (SGD.) TERESITA A. DESIERTO 

Asst. Secretary, DILG Commissioner 


(SGD.) JOEL L. ALTEA (SGD.) FRANCISCO L. DAGNALAN 



(SGD.) AUGUSTO B. SANTOS (SGD.) ROQUE ARRIETA MAGNO 

Deputy Director-General, NEDA Commissioner 



Attested: 

(SGD.) CHARITO B. LANSANG 


--o0o-- 


Resolution No. R-695, Defining Deferred Land Use 

Zone/Classification as Used in a Zoning Ordinance 

Quoted hereunder is the text of the subject resolution approved by the Board of 

Commissioners on 21 May 2001:

330 


WHEREAS, it has been brought to the attention of the Board that some municipal 

zoning ordinances have used the term ìdeferred land useî as one classification of land uses 

within their respective municipalities; 

WHEREAS, the term, being unconventional, there arose some issues as to the 

classification of lands within the said zone; 

WHEREAS, the initial efforts by the Legal Services Group (LSG) of this Board tried to 

define the above-stated term relating the same to ìtransition zonesî as defined by HLURB 

Board Resolution No. 558, Series of 1994; 

WHEREAS, it has become imperative to come up with a uniform definition of the term 

ìdeferred land useî to be utilized by all municipalities across the country in their ìmunicipal 

zoning ordinances;î 

WHEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the term 

DEFERRED LAND USE ZONE/CLASSIFICATION, shall mean a non-built-up area, whether 

agricultural or otherwise, which has been classified as urban but its actual use has been 

deferred in the meantime, PROVIDED, the land is a potential urbanizable area and/or suitable 

for urban use and not within restricted areas as defined by existing laws. 






--o0o-- 

HLURB Memorandum Circular No. 37, s. 2001 

Resolution No. R-696, s. 2001, Consolidating and Taking Cognizance 

of All Cases on Appeal to the Board Arising from the Cherry Hills Incident 

Quoted hereunder is the subject resolution approved by the Board of Commissioners 

on 18 June 2001: 

WHEREAS, the Board is of the opinion that the cases arising from the Cherry 

Hills incident filed by the homeowners against PHILJAS CORP., the subdivision 

developer, are impressed with significant public interest and involve grave and 

critical policy issues that warrant immediate resolution by the Board; 

WHEREFORE, RESOLVED, as it is hereby RESOLVED, that the Board en 

banc, pursuant to Rule XVII, Section 2(3) of the HLURB Rules of Procedure as 

amended by Resolution No. 655, S. 1999, consolidate and take cognizance of all 

the cases on appeal to the Board arising from the Cherry Hills incident.


APPROVED on 18 June 2001, Quezon City, Metro Manila. 

For your information. 





--o0o-- 

HLURB Memorandum Circular No. 38 

Resolution No. R-697, Adopting DILG Memo Circular No. 2000-155 

Regarding the Imposition of Performance Bonds and Development 

Standards Prescribed Under National Laws 

The Board through the subject resolution, reiterate its position that the power of 

Sanggunians to process and approve subdivision must be in accordance with the development 

standards as prescribed under national laws and that no performance bonds shall be imposed 

by the LGUs apart from that imposed by the Board. Quoted hereunder is the subject resolution, 

approved by the Board of Commissioners on 18 June 2001: 

Whereas, the authority to approve subdivision plans has been devolved to the 

local government units through their respective Sanggunians pursuant to Executive 

Order No. 71 Implementing RA 7160, otherwise known as the Local Government 

Code of 1991; 

Whereas, under the same Executive Order, the issuance of Certificates of 

Registration and Licenses to Sell over subdivision projects approved by the Local 

Government Code of 1991; 

Whereas, during the evaluation of subdivision plans approved by the LGUs 

and submitted by the project owners/developers in their application for issuance 

of the aforesaid registration and license, it has been observed that some LGUs 

follow different standards from that imposed by national laws, rules and regulations; 

Whereas, reports from the Boardís regional field offices and from project 

owners/developers likewise reveal that some LGUs have passed resolutions and/ 

or ordinances adopting either lower or higher development standards and imposing 

performance bonds which is also required by this Board in the issuance of 

registration and license under Sections 4 and 5 of PD 957; 

Whereas, there is a need to rationalize the approval process in order to hasten 

the production of housing at affordable prices; 

Whereas, cognizant thereto, this Board has earlier come out with a position 

which has been concurred by the DILG in a Memorandum Circular No. 2000-

332 


155, Series of 2000 to the effect that the power of the Sanggunians to process 

and approve subdivision plans more especially anent development standards, 

shall be in accordance to and not in conflict with those prescribed under national 

laws, and that no performance bond shall be imposed by the LGU apart from that 

imposed by this Board; 

Wherefore, be it resolved, as it is hereby resolved that this Board reiterates its 

position on the foregoing matter and for purposes of consisteny and reciprocity 

adopts the said memorandum circular of the Department of Interior and Local 

Government under Memorandum Circular No. 2000-155, Series of 2000 addressed 

to all City/Municipal Mayors and City/Municipal Sanggunians entitled, ìClarificatory 

Guidelines on the LGUsí Requirement for Subdivision/Housing Developers to Post 

Performance Bonds and On the Prescription of Minimum Standards for Roads 

and Subdivision Projects,î copy of which is attached as Annex A*. 

Quezon City, Metro Manila, 18 June 2001. 






--o0o-- 


Resolution No. R-704, Approving the 2001 Revised Schedule of Fees 

In compliance with Executive Order No. 197, Series of 2000, attached herewith is the 

2001 Revised Schedule of Fees* which was approved by the Board on 19 September 2001. 

The above was published in the Philippine Star on 05 December 2001, and, in 

accordance with the provisions of law, shall take effect fifteen (15) days from its date of 

publication. 





*Text Available at Office of the National Administrative Register, U.P. Law Complex, 

Diliman, Quezon City.


INSURANCE COMMISSION 



Replacement of Policies 

To control the unwarranted replacement of life insurance policies, all life insurance 

companies are required to incorporate in their respective application forms for life insurance 

coverage, to be filled up by both the applicant and the underwriting agent, specific questions 

and notices designed to direct attention on the matter. Sample forms are attached for 

reference. 

The Philippine Life Insurance Association (PLIA) is hereby deputized to provide the 

necessary support to ensure the timely implementation of the foregoing and to investigate 

deviations as provided in the Joint Declaration. 





(SGD.) EDUARDO T. MALINIS 

Insurance Commissioner 

--o0o-- 

Insurance Memorandum Circular No. 1-2002 

Anti-Money Laundering Council Resolution No. 15, 

Dated December 7, 2001* 



(SGD.) RAFAEL B. BUENAVENTURA 

Governor, Bangko Sentral ng Pilipinas 

Chairman 

(SGD.) LILIA R. BAUSTISTA 

Chairperson, Securities and Exchange Commission 

Member

334 





Member 

--o0o-- 


Increase in Paid-Up Capital 

Pursuant to the authority vested in me by the provisions of Section 188 of the Insurance 

Code in relation to those of Section 184 thereof, and upon the recommendation of the 

Insurance Commissioner, the following requirements, rules and regulations are hereby 

promulgated: 

1. An insurance company, other than those organized under Department Orders No. 27-92, 

dated March 17, 1992 and No. 100-94, dated October 24, 1994, is required to be possessed 

of a minimum paid-up capital (or paid-up capital and surplus in the case of life company) 

indicated hereunder, on or before June 30, 2002 to be able to secure a renewal, of its 

certificate of authority to transact business in the Philippines for the license year 2002- 

2003: 

a. Non-life - Fifty Million Pesos (Ps 50,000,000.00) 

b. Life - Fifty Million Pesos (Ps 50,000,000.00) of paid-up capital and surplus, 

provided that if the increase is on surplus, the companyís paid-up capital as of 

date of this Order shall be maintained. 

2. The corresponding increase in capital investment required under Section 203 of the 

Insurance Code shall be complied with. 

3. Violation of the foregoing applicable conditions is sufficient ground for the non-renewal of 

a companyís certificate of authority. 



(SGD.) JOSE ISIDRO N. CAMACHO 

Secretary of Finance 




--o0o--




Submission of Monthly Statement of Foreign Exchange Receipts 

Relative to Circular Letter No. 3-2001, dated 24 August 2001 and October 30, 2001 of 

this Commission, all insurance and reinsurance companies and brokers are hereby required 

to accomplish the enclosed form of Statement of Foreign Exchange Receipts and to submit 

the same duly accomplished to this office within fifteen (15) days from the last day of every 

month beginning with the month of December 2001. 

No certification for purchase of foreign exchange for remittance abroad shall be 

issued by this Commission and no treaty agreements shall be referred to the Bangko Sentral 

ng Pilipinas (BSP) for action unless the foregoing is first complied with. 

This Circular Letter supersedes Circular Letter 4/94 dated January 19, 1994. 





--o0o-- 

Circular Letter No. 3- 2002 

Interest Income Due the Contributions to the 

Security Fund Life and Non-Life Accounts 

Further to our Circular Letter No. 2-2002 dated January 15, 2002 please be advised 

that the rates for the accrued interest income net of administrative expenses based on the 

approved COA-MBM-MOF Joint Circular No. 1-87 dated January 1, 1987 on the reassessed 

contributions to the Security Fund Accounts for the year 2001 (including income earned in 

the year 2001 from investment of 2000 interest income): 

FOR LIFE INSURANCE COMPANIES 8.8147125% 

FOR NON-LIFE INSURANCE COMPANIES 8.4001166% 

The following are the rates of income earned in the year 2001 from investment of 1999 

interest income: 

FOR LIFE INSURANCE COMPANIES 0.8259355% 

FOR NON-LIFE INSURANCE COMPANIES 0.8562327% 

The aforesaid accrued interest income shall be reflected in your financial statements 

as of December 31, 2001.

336 


The corresponding interest income due from the Security Fund contributions shall be 

reinvested in Government Securities and deposited with the Bureau of the Treasury. 

You will be advised regularly of income earned out of said reinvestments. 





--o0o-- 


Change in Ownership 

It has come to our attention that insurance companies effect changes in their capital 

structure, in whole or in part, without the knowledge of this Commission. 

Henceforth, all insurance companies are hereby enjoined to seek prior approval from 

this Commission before effecting any change in the company ownership. 

This supersedes Circular Letter dated 03 October 1973. 






--o0o-- 

Circular Letter No. 5- 2002 

Agent Compliance Record 

In order to ensure that the agency force displays appropriate market conduct at all 

times, all member companies are required to police their own ranks, by actively identifying 

agents who shall have at one time or another undertaken inappropriate acts that tarnish the 

industryís image. 

For this purpose, the Philippine Life Insurance Association (PLIA) is hereby deputized 

to formulate guidelines relative to the implementation of an agent compliance record system 

and ensure its strict enforcement.


This Circular takes effect immediately. 





--o0o-- 


Recruitment and Transfer of Employees and Sales Producers 

It has come to our attention that the recruitment procedures of some life insurance 

companies has caused constant transfers of employees and sales producers which 

unnecessarily result in costly and disruptive effects on the operations of life insurance 

companies concerned. 

While the Insurance Commission respects the constitutional right of every person to be 

employed in any company of his choice as well as the right of insurance companies to 

employ or contract the services of employees and sales producers already employed in 

another company, it is equally important to recognize the urgent need to ensure the viable 

operations of insurance companies through a professional, dedicated and competent staff. 

In view thereof, the Philippine Life Insurance Association (PLIA) is hereby deputized to 

formulate, establish, monitor and develop its own workable ethical standards and exercise 

self-regulation among its members and associates, reaching out as far as practicable to their 

respective work forces and sales producers, thereby contributing to the general welfare of 

the insurance industry within the framework of morality, fairness, truth and honesty. 

This circular takes effect immediately. 




INTELLECTUAL PROPERTY OFFICE 


Office Order No. 02, s. 2002 

Amendment to the IPO Fee Structure

338 


Pursuant to the authority granted under Section 7.1(a) of Republic Act No. 8293, the 

Rules and Regulations Establishing the Fee Structure of the Intellectual Property Office that 

took effect on 08 June 2000, is hereby amended as follows: 

Section 1. To correct the erroneous reference made to Section 8.1 instead of 8.0, the 

last sentence of Section 8.2 (Re-enlistment) Part III of the IPO Fee Structure is hereby 

amended to read as follows: 

ìSection 8.2 X X X Thereafter, Section 8.0 shall be observed.î 

Section 2. Filing of Certified Copies. The Records Officer is hereby directed to 

immediately file three (3) certified copies of these Rules with the University of the Philippines 

Law Center, and one (1) certified copy each with the Office of the President, the Senate of 

the Philippines, the House of Representatives, the Supreme Court of the Philippines and the 

National Library. 

Section 3. Effectivity. This amendment shall take effect immediately. 


Approved: 

(SGD.) EMMA C. FRANCISCO 

Director General 

Recommended by: 

(SGD.) CARMEN G. PERALTA 

Director 

Documentation, Information and Technology Transfer Bureau 


--o0o-- 

Office Order No. 13 

Amendment to the Philippine Rules on PCT Applications 

WHEREAS, the Patent Cooperation Treaty (PCT) is, largely, a treaty for rationalization 

and cooperation among contracting states with regard to the filing, searching and examination 

of patent applications and the dissemination of the technical information contained therein; 

WHEREAS, the thirteenth (13th) ordinary session of the Patent Cooperation Treaty 

Assembly held from 24 September to 03 October 2001 adopted the modification of Article 

22(1) of the treaty in which the time limit for performing the acts necessary to enter the 

national phase is changed from 20 to 30 months from the priority date effective 01 April 

2002;


NOW, therefore, in view of the foregoing, the Philippine Rules on PCT Applications or 

ìPRO-PCTî are hereby amended, as follows: 

SECTION 1. Rule 35 is hereby amended to read, as follows: 

Rule 35. Entry Into National Phase - (a) An international application enters the 

national phase when the applicant furnishes IPO a copy of the international application in 

English (unless already transmitted by the IB), or if the application was filed in another 

language, its English translation not later than thirty (30) months from the priority date 

based on PCT Article 22 (1) and PCT Article 39 (1) (a). 

Subject to the payment of an extension fee for late entry equal to fifty percent (50%) of 

the filing fee prescribed in the IPO Fee Structure, the entry into the national phase may be 

extended by one (1) month. 

(b) The filing fee prescribed in the IPO fee structure shall be paid within one (1) month 

from the date of entry into the national phase; provided that an international application which 

claims the priority of an earlier Philippine national application shall be exempt from payment 

of the filing fee. If the applicant fails to pay the filing fee as herein provided, the application 

shall be deemed withdrawn in the Philippines. 

(c) The translation of the international application, as filed, referred to in paragraph (a) 

shall include a translation into English of: 

1. the description; 

2. the claims as filed and, where applicable, as amended under PCT Article 19; 

3. any text matter of the drawings; 

4. the abstract; and 

5. where applicable, amendments to the description, claims or drawings under 

PCT Article 34, as contained in the annexes to the international preliminary 

examination report. 

If the translation of the amendments under PCT Article 19 or PCT Article 34, 

as the case may be, is not included, those amendments will be considered cancelled. 

(d) During the national phase, and at anytime before a patent is granted or refused on 

the international application, the applicant may present amendments to the specifications, 

claims and drawings in accordance with the IP Code and its implementing rules and regulations. 

SECTION 2. Filing of Certified Copies - Mrs. Salvacion Calaycay, Records Officer III, 

is hereby directed to immediately file three (3) certified copies of this Rule with the University 

of the Philippines Law Center, and, one (1) certified copy each with the Office of the President, 

the Senate of the Philippines, the House of Representative, the Supreme Court of the 

Philippines and the National Library. 

SECTION 3. Effectivity - This amendment shall take effect on 01 April 2002 after 

publication in the IPO website and in a newspaper of general circulation not later than 15 

March 2002.

340 





(SGD.)EPIFANIO M. EVASCO 

Director of Patents 

APPROVED: 



--o0o-- 


Lay-out Designs (Topographies) of Integrated Circuits Regulations 

WHEREAS, Republic Act (R.A.) 9150 entitled ìAn Act Providing For the Protection of 

Layout-Designs (Topographies) of Integrated Circuits, Amending For the Purpose Certain 

Sections of Republic Act No. 8293, Otherwise Known as The Intellectual Property Code of 

the Philippines And For Other Purposesî, a consolidation of Senate Bill No. 1989 and 

House Bill No. 9827, was passed by the Senate and by the House of Representatives on 05 

June 2001 and 31 May 2001, respectively; 

WHEREAS, R.A. No. 9150 was approved and signed into law by the President of the 

Republic of the Philippines on 06 August 2001; 

NOW, THEREFORE, pursuant to Section 2 of R.A. No. 9150, the following regulations 

are hereby promulgated: 

Part 1 

General Provisions 

Rule 100. Short Title - These Regulations shall be referred to as the ìLayout-Design 

Regulationsî. 

Rule 101. Definitions - Unless otherwise specified, the following terms as used in these 

Regulations shall have the meanings provided in this Rule. 

a. ìBureauî refers to the Bureau of Patents; 

b. ìDirectorî refers to the Director of the Bureau of Patents; 

c. ìDirector Generalî refers to the head of the Intellectual Property Office; 

d. ìIntegrated Circuitî means a product, in its final form, or an intermediate form, in which 

the elements, at least one of which is an active element, and some or all of the interconnections 

are integrally formed in and/or on a piece of material, and which is intended to perform an 

electronic function (Sec. 112[2], R.A. No. 8293, as amended);


e. ìLayout Designî is synonymous with ìTopographyî, and means the three-dimensional 

disposition, however expressed, of the elements, at least one of which is an active element, 

and of some or all of the interconnections of an integrated circuit, or such a three-dimensional 

disposition prepared for an integrated circuit intended for manufacture. (Sec. 112 [3], R.A. 

No. 8293, as amended)] 

f. ìOriginal layout-designî means a layout-design that is the result of its creatorís own 

intellectual effort and is not commonplace among creators of layout-designs and manufacturers 

of integrated circuits at the time of its creation. (Sec. 113.3, R.A. No. 8293, as amended) 

Rule 102. Requisites for Registrability - In order to be registrable, a layout-design of 

integrated circuits must be original. A layout- design consisting of a combination of elements 

and interconnections that are commonplace shall be registered only if the combination, 

taken as a whole, is original (Sec. 113.4, R.A. No. 8293, as amended) 

Rule 103. Right to Registration - The right of registration of lay-out design belongs to 

the creator, his/her heirs or assigns, subject to the following: 

a. When two (2) or more persons have jointly created a layout-design, the right to the 

registration thereof shall belong to them jointly; 

b. In case the layout-design was created pursuant to a commission, the person who 

commissions the work shall own the registration, unless otherwise provided in the contract; 

and 

c. In case the employee created the layout-design in the course of his/her employment 

contract, the registration shall belong to: 

i. The employee, if the activity is not part of his/her regular duties even if the 

employee uses the time, facilities and materials of the employer; or 

ii. The employer, if the layout-design is the result of the performance of his/her 

regularly-assigned duties, unless there is an agreement, express or implied, to 

the contrary. (Secs. 119.3, 28 and 29, R.A. No. 8293, as amended) 

Rule 104. First to File Rule - If two (2) or more persons have made the same layoutdesign 

separately and independently of each other, the right to the registration shall belong 

to the person who filed an application for such layout-design, or where two or more applications 

are filed for the same layout-design, to the applicant who has the earliest filing date. The right 

to registration of the first filer, shall be subject, however, to the limitations on layout rights as 

provided under Section 119.5 of R.A. No. 8293, as amended and the resolution in an 

appropriate proceeding of the issue of originality. 

Where two or more applications for the same layout-design created separately and 

independently of each other have the same filing date, the registration shall be issued jointly 

to the applicants of all such applications. (Secs. 119.3 and 29, R.A. No. 8293, as amended) 

Part 2 

Request for Registration

342 


Rule 200. Where to File the Request - The request for registration of layout-designs 

shall be in the prescribed application form and shall be filed with the Bureau of Patents of the 

Intellectual Property Office (IPO). (Sec. 8.2, R.A. No. 8293, as amended) 

Rule 201. Who May File the Application - Any person, natural or juridical, may file the 

application for registration of layout-design, in the name of the actual creator(s) or of his/ 

her heirs, legal representative or assigns. If the applicant dies, becomes insane or incapacitated, 

the legally appointed administrator, executor, guardian, conservator, or representative of the 

applicant, may sign the application papers and other documents, and apply for and obtain 

the certification of registration in the name of the applicant, his/her heirs or assignee. 

In case the whole interest in the layout-design is assigned, the application may be filed 

by or in the name of the assignee who may sign the application. In case the assignee is a 

juridical person, any officer thereof may sign the application in behalf of the said person. In 

case of an aliquot portion or undivided interest, any of the joint owners will sign the application. 

Rule 202. Appointment of Resident Agent or Representative - An applicant who is not 

a resident of the Philippines must appoint and maintain a resident agent or representative in 

the Philippines upon whom notice or process for judicial or administrative procedure relating 

to the application for registration or the registration itself may be served subject to the 

following: 

a. If there are two or more persons appointed by the applicant, the Bureau or the IPO shall 

forward all actions to the last agent appointed. A substitute or associate attorney may be 

appointed by an attorney only upon the written authorization of his/her principal. But a third 

attorney appointed by the second will not be recognized; and 

b. A power of attorney or authorization may be revoked at any stage in the proceedings of a 

case upon proper notification to the Director or Director General, and, when revoked, the 

Bureau or the IPO will notify the attorney or agent of such revocation. For all purposes under 

this Rule, the notice of the Director or Director General is deemed notice to the applicant. 

(Secs. 119.3 and 33, R.A. No. 8293, as amended) 

Rule 203. Contents of the Application - An application for registration shall be in 

Filipino or English and shall contain the following: 

a. A request for registration of the lay-out design (Sec. 114.1[a], R.A. No. 8293, as amended); 

b. Information identifying the applicant (Sec. 114.1 [b], R.A. No. 8293, as amended); 

c. An indication of the kind of article of manufacture to which the lay-out design shall be 

applied (Sec. 114.1[c], R.A. No. 8293, as amended); 

d. Drawings, photographs or adequate graphic representations of the layout-design. (Sec. 

114.1[d], R.A. No. 8293, as amended); 

e. The name and address of the creator, or where the applicant is not the creator, a statement 

indicating the origin of the right to the lay-out design registration (Sec. 114. 1[e], R.A. No. 

8293, as amended);


f. The date and country where the topography was first commercially exploited, if applicable; 

g. Signature of the applicant or agent. 

The applicant may submit other relevant information or data regarding the layoutdesign 

including the title thereof, if any. 

The application may be accompanied by a specimen of the article embodying the layout 

design and shall be subject to the payment of the prescribed fee. (Sec. 114.2, R.A. No. 

8293, as amended) 

Part 3 

Registration 

Rule 300. According to Filing Date - The Bureau shall accord as the filing date of the 

application the date of its receipt of the fully accomplished prescribed application form 

together with the filing fee and the drawings, photographs or adequate representations of the 

layout-design. If the prescribed application form is not fully and properly accomplished and/ 

or the fee is not paid and/or no drawing, photograph or adequate graphic representation of 

the layout-design is submitted, the filing date shall be the date when the applicant makes the 

necessary corrections or completes the said requirements, provided, that the corrections or 

completion is made within the period prescribed in Rule 301. Otherwise, the application shall 

be considered withdrawn. (Sec. 116, R.A. No. 8293, as amended) 

Rule 301. Time Within Which to Submit Corrections or Completion of Requirements 

- The applicant shall have a non-extendible period of one (1) month from notice within which 

to submit the completed or corrected application form and pay the required fee to the Bureau. 

If the applicant fails to do so, the application is deemed withdrawn and the Bureau shall 

immediately notify the applicant to that effect. 

Rule 302. Action on the Application; Publication - The Director shall have ten (10) 

days from filing date of the application within which to refuse the application. If there is no 

action on the part of the Director within the said period, the application shall be immediately 

published including the drawings and such other relevant information in the IPO Gazette. 

(Sec. 117, R.A., No. 8293, as amended) 

Rule 303. Adverse Information; Effects - Within one (1) month from publication of the 

layout design application, any interested party may furnish the Director any information, 

evidence or data in writing and under oath, showing that the layout design is not original or 

that the application was not filed within two (2) years from first commercial exploitation 

anywhere in the world. The Director may require such third party to submit relevant and 

collateral facts or data to substantiate the furnished information. Within one (1) month from 

receipt of the adverse information, the Director shall decide whether or not to register the 

layout design. 

In case the Director refuses or denies the registration of the layout design, the applicant 

may appeal such decision to the Director General pursuant to Section 7.1 (b) of R.A. No. 

8293, as amended, and Part 5 of these Regulations.

344 


In case the Director allows the registration, any interested party may file a petition for 

cancellation in accordance with Rule 402 of these Regulations. 

If the Director receives no adverse information within the one (1) month-period, he/she 

shall certify to that effect and direct the preparation and issuance of the certificate of 

registration dated as of the date of publication of the layout design application. 

Rule 304. Certificate of Registration - The Certificate of Registration shall be issued in 

the name of the Republic of the Philippines under the seal of the IPO and shall be signed by 

the Director, and registered together with the drawings, if any, and such other relevant data 

in the books and records of the IPO. The certificate shall always indicate the name(s) and 

address(es), of the creator(s). (Sec. 117.2, R.A. No. 8293, as amended) 

Any interested party may inspect the records and files of the IPO with respect to 

registration of layout-design including those of cancellation proceedings. (Sec. 117.5, R.A. 

No. 8293, as amended) 

Part 4 

Term of Registration 

Rule 400. Term of Registration of Layout Design of Integrated Circuits - The registration 

shall be valid for a period of ten (10) years, without renewal, to be counted from the date of 

commencement of the protection accorded to the layout-design. The protection of a layoutdesign 

shall commence: 

a. On the date of the first commercial exploitation, anywhere in the world, of the layoutdesign 

by or with the consent of the right holder; Provided, that an application for registration 

is filed with the Intellectual Property Office within two (2) years from such date of first 

commercial exploitation; or 

b. On the filing date accorded the application for the registration if the layout-design has not 

been previously exploited commercially anywhere in the world. (Sec. 118.5, R.A. No. 8293, 

as amended) 

Rule 401. Change in the Identity of Proprietor; Assignment; Surrender, Amendment; 

Corrections and other Changes - Requests for recording in the register of a change in the 

identity of the proprietor, assignment, surrender, amendment, corrections and other changes 

in connection with the registration shall be made by accomplishing the prescribed forms and 

upon payment of fees. 

The request shall be under oath and shall be accompanied by proof in support thereof. 

The IPO may also require such person to submit additional proof to substantiate his claims. 

If no proof is submitted, the request shall be denied. If the prescribed fees are not paid, the 

request shall be deemed not filed. 

Rule 402. Cancellation - Upon payment of fees, any interested party may petition that 

the registration of a layout-design be cancelled on any or all of the following grounds: 

a. The layout-design is not protectable under the IP Code, as amended;


b. The right holder is not entitled to protection under the IP Code, as amended; and/or 

c. Where the application for registration of the layout-design was not filed within 

two (2) years from first commercial exploitation anywhere in the world. 

Where the grounds for cancellation are established with respect only to a part of the 

layout-design, only the corresponding part of the registration shall be cancelled. 

Any cancelled layout-design registration or part thereof, shall be regarded as null and 

void from the beginning and may be expunged from the records of the IPO. Reference to all 

cancelled layout-design registration shall be published in the IPO Gazette. (Sec. 120.3, R.A. 

No. 8293, as amended) 

Petitions for cancellation of layout-design registrations on grounds set forth in letters(a) 

and (b) above, shall be governed by the Regulations on Inter Partes Proceedings. Petitions 

for cancellation based on letter (c) shall be filed directly with the Director who shall decide 

whether or not to cancel the registration. 

Rule 403. Compulsory Licensing - A registered layout-design may be the subject of a 

petition for compulsory licensing and shall be governed by the Regulations on Inter Partes 

Proceedings. (Sec. 119.3, and Chapter X, R.A. 8293, as amended) 

Rule 404. Infringement - Administrative actions against infringement of protected layoutdesign 

shall be governed by the Rules and Regulations on Administrative Complaints for 

Violation of Laws Involving Intellectual Property Rights. 

Part 5 

Appeals 

Rule 500. Appeal to the Director General - The decision or order of the Director shall 

become final and executory thirty (30) days after receipt of a copy thereof by the appellantapplicant 

unless within the said period, a motion for reconsideration is filed with the Director 

or an Appeal Memorandum is filed with the Director General and upon payment of the 

required fee. Appeals to the Director General shall be governed by the Uniform Rules on 

Appeal. 

Only one motion for reconsideration of the decision or order of the Director shall be 

allowed. 

Rule 501. Appeal to the Court of Appeals - The decision of the Director General shall 

be final and executory unless an appeal to the Court of Appeals is perfected in accordance 

with the Rules of Court. No motion for reconsideration of the decision or order of the 

Director General shall be allowed. 

Part 6 

Fees 

Rule 600. Fees to be Collected by the IPO - The IPO shall collect the following fees: 

Reference Code Type of Fee Php 

1001 Filing Fee 5,000.00

346 


1002 For deposit of specimen 1,000.00 

1003 Petitions for Cancellation based on 

letter (c) of Rule 402 of the Layout- 

Design Regulations 5,000.00 

1004 Requests for Voluntary Surrender, 

Change of Identity of Proprietor, 

Amendment, Corrections and other 

Changes 1,000.00 

Other applicable fees prescribed under the IPO Fee Structure are hereby adopted. 

Any amendment to the IPO Fee Structure shall be deemed incorporated into these Regulations. 

Rule 601. Time of Payment - The filing fee shall be paid upon the filing of the application 

in accordance with Rule 300. If the filing fee is not paid upon the filing of the application, the 

same shall be paid within the period prescribed in Rule 301. Otherwise, the application is 

deemed withdrawn. 

All other fees and charges shall be collected by the IPO in advance of services to be 

rendered. 

Part 7 

Final Provisions 

Rule 700. Correspondence - The rules on correspondence under Section 1 of the 

Final Provisions of the Utility Models and Design Regulations shall apply. 

Rule 701. Separability - If any provision in these Regulations or application of such 

provision to any circumstances is held invalid, the remainder of these Regulations shall not 

be affected thereby. 

Rule 702. Furnishing of Certified Copy - Ms. Salvacion C. Calaycay, Records Officer 

III of the IPO, is hereby directed to immediately file three (3) certified copies of these 

Regulations with the University of the Philippines Law Center, and one (1) certified copy 

each of the Office of the President, the Senate of the Philippines, the House of Representatives, 

the Supreme Court of the Philippines, and the National Library. 

Rule 703. Effectivity - These Rules and Regulations shall take effect on 15 March 2002 

and after publication in the IPO Website and in at least one (1) newspaper of general 

circulation not later than 28 February 2002. 




--o0o--




Intellectual Property Office Uniform Rules on Appeal 

WHEREAS, there is a need to streamline the present procedure of filing cases in the 

Office of the Director General and to centralize the filing of cases on appeal; 

WHEREAS, there is a need to promulgate a uniform rules on appeal to expeditiously 

settle the cases on appeal; 

NOW, THEREFORE, the IPO hereby promulgates these Uniform Rules on Appeal. 

SECTION 1. Title and Coverage - These Rules shall be known as the ìIPO Uniform 

Rules on Appealî. These Rules shall cover decisions or final orders rendered by the Director 

of the Documentation, Information and Technology Transfer Bureau (DITTB), the Director of 

the Bureau of Legal Affairs (BLA), the Director of the Bureau of Patents (BOP) and the 

Director of the Bureau of Trademarks(BOT). 

SECTION 2. Appeal to the Director General - The decisions or final orders of the 

Bureau Director shall become final and executory thirty (30) days after receipt of a copy 

thereof by the appellant or appellants unless, within the same period, a motion for 

reconsideration is filed with the Bureau Director or an appeal to the Director General has 

been perfected; Provided, that only one (1) motion for reconsideration of the decision or 

order of the Bureau Director shall be allowed; and, in case the motion for reconsideration is 

denied, the appellant or appellants has/have the balance of the period prescribed above 

within which to file the appeal. 

SECTION 3. Appeal Memorandum - The appeal shall be perfected by filing an appeal 

memorandum in three (3) legible copies with proof of service to the Bureau Director and the 

adverse party, if any, and upon payment of the applicable fee, Reference Code 127 or 128, 

provided in the IPO Fee Structure. 

SECTION 4. Contents of the Appeal Memorandum - The appeal memorandum shall: 

a. State the full name or names, capacity and address or addresses of the appellant or 

appellants; 

b. Indicate the material dates showing that it was filed on time; 

c. Set forth concisely a statement of the matters involved, the issues raised, the specification 

of errors of fact or law, or both, allegedly committed by the Bureau Director and the reasons 

or arguments relied upon for the allowance of the appeal; 

d. Be accompanied by legible copies of the decision or final order of the Bureau Director 

and of the material portions of the record as would support the allegations of the appeal; and 

e. Contain a certification of non-forum-shopping.

348 


SECTION 5. Action on the Appeal Memorandum - The Director General shall: 

a. Order the adverse party if any, to file comment to the appeal memorandum within thirty 

(30) days from notice and/or order the Bureau Director to file comment and/or transmit the 

records within thirty (30) days from notice; or 

b. Order the appellant/appellants to complete the formal requirements mentioned in Section 4 

hereof; 

c. Dismiss the appeal for being patently without merit, Provided, that the dismissal shall be 

outright if the appeal is not filed within the prescribed period or for failure of the appellant to 

pay the required fee within the period of appeal. 

SECTION 6. Clarificatory Hearing - The Director General may set the case for 

clarificatory hearing if necessary. 

SECTION 7. Submission of Memoranda and Draft Decision - Within five (5) days 

after the filing of the comments of both parties or after the clarificatory hearing, the Director 

General shall require the parties to submit their respective memoranda, attaching thereto 

draft decisions if so desired. The memoranda and draft decisions must be submitted within 

fifteen (15) days from notice. 

SECTION 8. Submission for Decision - The case is deemed submitted for decision 

upon the filing of the memoranda and draft decisions, if any, of the parties or the filing of the 

last pleading required by these Rules or by the Director General. 

The case is also deemed submitted for decision after the lapse of the period prescribed 

by these Rules or by the Director General whether or not the parties submitted the last 

pleading required. 

SECTION 9. Decision - The decision or order of the Director General shall be final and 

executory fifteen (15) days after receipt of a copy thereof by the parties unless appealed to 

the Court of Appeals in case of appeals from decisions or final orders of the BLA, BOP, and 

BOT, or the Secretary of the Department of Trade and Industry in case of appeals from the 

decisions or final orders of the DITTB. The appeal shall not stay the decision or order of the 

Director General unless the Court of Appeals or the Secretary of the Department of Trade 

and Industry directs otherwise. No motion for reconsideration of the decision or order of the 

Director General shall be allowed. 

SECTION 10. Payment of Fees on Filing of Motions - All motions filed by the appellant 

or appellants shall require the payment of the corresponding fee prescribed by the IPO. 

SECTION 11. Amendments - The following Rules and Regulations are hereby amended: 

a. Part 11, Rules 1108, 1109, 1110 and 1111 of the Trademark Regulations; 

b. Part 4, Rules 27, 28, and 29 of the Rules and Regulations on Voluntary Licensing; 

c. Sections 19, 20, 21 and 22 of the Rules on Dispute Settlement; 

d. Rule 9 of the Regulations on Inter Partes Proceedings; 

e. Rule 14 of the Rules and Regulations on Administrative Complaints for Violation of Laws 

Involving Intellectual Property Rights;


f. Part 7, Rule 707, 708, 709 and 710 of Utility Models and Industrial Design Regulations; 

and 

g. Part 13, Rules 1308, 1309, 1310 and 1311 of the Rules and Regulations on Inventions. 

All other rules and regulations, office orders, memoranda, circulars and parts thereof 

inconsistent with these Rules are also amended: Provided, That all cases on appeal to the 

Director General filed prior to the effectivity of these Rules, shall continue to be governed by 

the Applicable Rules under which said appeals were filed. 

SECTION 12. Separability - If any provision in these Rules or application of such 

provision to any circumstance is held invalid, the remainder of these Rules shall not be 

affected thereby. 

SECTION 13. Filing of Certified Copies - The authorized Records Officer of the IPO is 

hereby directed to immediately file three (3) certified copies of these Rules with the UP Law 

Center, and one (1) certified copy each with the Office of the President, the Senate of the 

Philippines, the House of Representatives, the Supreme Court of the Philippines and the 

National Library. 

SECTION 14. Effectivity - These Rules shall take effect on 15 March 2002 after 

publication in the IPO website and in a newspaper of general circulation not later than 28 

February 2002. 




KOMISYON NG KARERA SA PILIPINAS 


Notice 

Amendment to the Rules: Section 8.3 P - Ordinary Appeal 

Please be informed that the PHILRACOM Board in its meeting held on January 11, 

2002, after due deliberation resolved to amend SECTION 8.3P of the Horseracing Rules and 

Regulations, which will now read as follows: 

ìSECTION 8.3P - ORDINARY APPEAL - The decisions, orders, or ruling of the 

Board of Stewards shall be immediately executory. They shall become final unless 

an appeal is made to the Racing Club management, thru its Chief Executive or 

Operating Officer or Racing Manager, within three (3) working days from 

knowledge of such decisions, orders or rulings.

350 


x x x x x x x x x x 

x x x x x x x x x x x. 

The Racing Club management may adopt its own internal procedures on the appeal 

consistent with the requirements of the due process of law. The decisions, orders or rulings 

which should be rendered not more than three (3) working days from the submission of the 

evidence or case by the aggrieved party shall be personally signed by the Chief Executive or 

Operating Officer or Racing Manager, as the case may be. Request or motion for 

reconsideration of the decisions, orders or rulings of the Chief Executive or Operating Officer 

or Racing Manager shall not be allowed. 

1. HOW AN ORDINARY APPEAL MAY BE TAKEN - x x x x 

x x x x x x x x x x; 

Provided, further that any decision, orders, rulings of the Board of 

Stewards with penalty/suspension of more than two (2) weeks shall immediately 

be executory. Penalty/suspension of two (2) weeks or less if appealed, shall be 

stayed until the three (3) working day period allowed for the Racing Club to 

dispose of cases, shall have lapsed. However, cases disposed of by the Clubs 

before the three (3) working day period affirming a penalty/suspension imposed 

by the Board of Stewards shall immediately be executory. 

x x x x x x x x x x. 

This rule shall take effect fifteen (15) days after publication. 

Date Filed: 13 February 2002 

(SGD.) JUAN P. LOZANO 

Executive Director III 

--o0o-- 

Memorandum 

Starting Time for the Last Race of Weekday and Weekend Races 

Please be informed that the Philracom Board in its meeting held on January 11, 2002 

resolved that on weekday races, the last race will start not later than 10:15 pm and on 

weekend races, the last race will start not later than 9:00 pm. A penalty of not less than Five 

thousand (P5,000.00) pesos shall be imposed on the Board of Stewards in case of its 

violation. 

This rule shall take effect fifteen days after publication. 



--o0o--


Date Filed: 13 February 2002 

Notice 

Amendment by Addition: Section 10.1 -Responsibility of a Trainer 

Please be informed that the Philracom Board in its meeting held on February 1, 2002, 

after due deliberation resolved to amend by addition Section 10.1 of the Racing Rules and 

Regulations which will now read as follows: 

B. Section 10.1 - RESPONSIBILITY OF A TRAINER . x x 

x x x x x x. 

a. x x x x x. 

b. x x x x x. 

h. To report to the Philracom Racing Official, the use of allowable 

spurs for its jockey, prior to the race. 

Failure to comply with the above provision, the trainer shall be penalized 

in the amount of One Thousand (P1,000.00) pesos. 





--o0o-- 

Notice 

Amendment to the Guidelines in the Inspection 

and Suspension of Lame Horses 

Please be informed that the Philracom Board in its meeting held on February 8, 2002, 

after due deliberation resolved to amend the guidelines in the inspection and suspension of 

lame horses which will now read as follows: 

GUIDELINES IN THE INSPECTION AND SUSPENSION OF LAME HORSES 

1. x x x x x x x x x; 



8. a) The findings of the Philracom and Club Veterinarian is final; 

b) Report of lame horses will be submitted to the club and the same will 

not be accepted for declaration; 

c) Declared horses found lame on Tuesday ìensayoî will be considered 

N.D. (Not Declared);

352 


d. Jockey, Apprentice Jockey, Student Jockey and Exercise Rider who 

refused to disclose the name of the horse to be exercised will be penalized 

as follows: 

1st Offense - P500.00 

2nd Offense - P1,000.00 

Subsequent Offenses: 

For Jockeys and Apprentice Jockeys, one (1) racing week 

suspension from participating in the races 

For Student Jockeys and Exercise Riders, one (1) week 

suspension from exercising horses 



ERRATUM: 



--o0o-- 

Notice 

Section 21.1 

In the Horseracing Rules distributed to all Philracom licensees last January 2002, 

please be informed that Section 21.1 which reads: 

ìGelded horses will not be allowed to participate in races except those who are 

already runners.î 

should now read as: 

GELDED HORSES, EXCEPT IMPORTED ONES, WILL NOW BE ALLOWED 

TO PARTICIPATE IN THE RACES. 

as per Philracom Board Resolution approved last September 17, 1999. 



Executive Director III


LAND TRANSPORTATION FRANCHISING AND 

REGULATORY BOARD 


Memorandum Circular No. 2002-001 

Setting Aside Memorandum Circular Number 98-028 

The Department of Transportation and Communications in its updated survey, found 

that the PUJ route Alabang-GMA via South Expressway, Carmona Exit, is in need of and 

may be opened for an additional twenty (20) units of PUJ. This is contained in its Memorandum 

dated October 11, 2001 signed by the Undersecretary for Transportation Arturo T. Valdez. 

In view thereof, the Memorandum Circular No. 98-028 is hereby superseded and setaside, 

and the aforecited route is open for application for twenty (20) units only of Public 

Utility Jitney service. 



(SGD.) DANTE M. LANTIN 

Chairman 

(SGD.) FELIX S. RACADIO 

Board Member 

(SGD.) REMEDIOS G. BELLEZA 

Board Member 

--o0o-- 


Extension of Memorandum Circular No. 2001-003 

(Late Filing of Petition for Extension of Validity) 

In response to numerous motions filed with the Board to allow late filing of petition for 

extension of validity despite the lapse of the effectivity of Memorandum Circular No. 2001- 

003 (Allowing Late Filing of Petition for Extension of Validity until December 31, 2001), the 

Board hereby resolves to extend the effectivity of said circular until April 30, 2002, 

subject to the same conditions and restrictions found therein. 

All other issuances or parts thereof which are inconsistent herewith, are therefore 

modified or superseded accordingly to conform with this new circular.

354 


This Memorandum Circular shall take effect immediately. 


(SGD.) DANTE M. LANTIN 

Chairman 

(SGD.) FELIX S. RACADIO 

Board Member 

(SGD.) REMEDIOS G. BELLEZA 

Board Member 

LAND TRANSPORTATION OFFICE 


Memorandum Circular No. EMA-MC-02371 

Clearances Required from Insurance Companies 

This Office has received reports that some enterprising and unscrupulous agents of 

insurance companies, though duly registered as such by the Insurance Commission and 

accredited by the Insurance and Surety Association of the Philippines (ISAP), have issued 

questionable Compulsory Third Party Liability insurance policies with Certificates of Cover 

for motor vehicles purportedly in compliance with the provisions of Presidential Decree No. 

612, as amended, and Letter of Instruction No. 1071. 

Accordingly, pending comprehensive inquiry and study on the matter with the view of 

identifying fly-by-night and unauthorized insurance providers as well as to give protection to 

owners of motor vehicles and the general public, it is hereby directed starting 15 March 2002 

that the Land Transportation Office shall only accept Compulsory Third party Liability insurance 

coverage for a motor vehicle if the concerned insurer shall have been issued a clearance 

certificate by the LTO Assistant Secretary certifying that the insurer has submitted, in addition 

to existing requirements, the following up-to-date clearances from the: 

1. Bureau of Internal Revenue (BIR) 

2. Social Security System (SSS) 

3. Securities & Exchange Commission (SEC) 

4. Department of Labor and Employment (DOLE), and 

5. Regional Trial Court (RTC) 

The required clearance from the court, for this purpose, refers to the court of the place 

where the main office of the insurance company is located and the clearance will attest only 

to the fact that there is no final and/or executory judgment against the said insurance company.


All other issuances or parts thereof which are inconsistent herewith are therefore 

correspondingly modified or superseded. 

This circular shall take effect fifteen (15) days after the filing of three (3) copies thereof 

with the UP Law Center pursuant to Presidential Memorandum Circular No. 11 dated 09 

October 1992. 



(SGD.) EDGARDO M. ABENINA 

Brig. Gen. AFP (Ret.) 

Assistant Secretary 

--o0o-- 

Memorandum Circular No. RTL-MC-02377 

Guidelines on the Registration of Imported Motor Vehicle Thru Ports of Manila, 

Manila International Container Port (MISP) and Subic Freeport Zone (SBMA) 

In order to closely monitor the registration of all motor vehicles and component parts 

imported into the country and to have an accurate statistics thereon, the following guidelines 

are hereby adopted for the guidance of everybody: 

1. Confirmation Certificates (CC) shall only be issued to motor vehicles and component parts 

imported by duly LTO accredited manufacturers, assemblers, importers and/or dealers. 

2. Importers and/or dealers who are not duly accredited by LTO shall not be issued confirmation 

certificates on their imported motor vehicles. They shall be advised to file their application 

for accreditation at the LTO Central Office. 

3. No registration of any imported motor vehicle shall be effected without the required 

confirmation certificates duly issued by the Registration Section, Central Office. 

4. Only original BOC Certificate of Payment duly transmitted to LTO by the Bureau of Customs 

authorized liaison officer shall be the basis for the issuance of CC. 

5. The venue of registration of all imported motor vehicles shall only be at LTO Diliman 

District Office. 

6. LTO SBMA Extension Office shall only accept registration of all exempt motor Vehicles 

imported through SBMA Freeport Zone. 

7. All existing authorities of some LTO NCR district offices to accept initial/original registration 

of the above-mentioned motor vehicles are hereby revoked unless specifically authorized 

by the Office of the Assistant Secretary. 

Violation of any of the foregoing guidelines shall give rise to administrative disciplinary 

measures.

356 


This memo supersede some provisions of Memorandum Circular No. 90-118 dated 09 

March 1990 and shall take effect immediately. 



Date Filed: 13 March 2002 

(SGD.) ROBERTO T. LASTIMOSO 


--o0o-- 

Memorandum 

Registration of Imported Motor Vehicles 

Auctioned at Subic, Malinta & Valenzuela 

Complaints have been reaching this Office that some LTO district offices are accepting 

the registration of imported motor vehicles proliferating and being auctioned at Subic, Malinta 

and Valenzuela without the required supporting documents. Although this Office has no 

jurisdiction on the manner of acquisition of these imported motor vehicles auctioned by 

various importers who are not accredited by LTO, it is the responsibility of LTO to look into 

this problem as it effects the public and the duly accredited manufacturers, assemblers, 

importers and dealers. 

In view hereof, it is directed that the initial registration of all imported motor vehicles 

auctioned at Subic, Malinta and Valenzuela should be held in abeyance until this Office has 

coordinated with other government agencies involved in the importation of the same for the 

necessary guidelines. Renewal registration of the above-mentioned subject motor vehicles 

can only be effected after a thorough inspection at LTO North Motor Vehicle Inspection 

Station (MVIS). 



(SGD.) ROBERTO T. LASTIMOSO 


MARITIME INDUSTRY AUTHORITY 


Flag State Administration Advisory No. 021, s. 2002 

Wearing of Lifejackets During Boarding and Prior to 

Departure by All Passengers of Vessels in the Domestic Trade


In line with the declared national policy to enhance maritime safety, all operators/ 

owners of vessels duly documented for domestic trade which vessels could not enter port or 

are unable to dock alongside due to low tide, construction of port facilities, engine failure, 

and such other similar reasons and have to transfer their passengers to another vessel/ferry 

boat/motorbanca/banca duly authorized for said purpose to enable them to reach the 

designated port, shall require every passenger to wear the lifejacket under the following 

instances: (1) when transferring to/boarding another vessel; (2) prior to disembarkation from 

the vessel; and, (3) at all times during the voyage to the designated port for disembarkation. 

Violation of the foregoing shall be subject to the penalties prescribed under the Public 

Service Act and relevant MARINA Memorandum Circulars and without prejudice to the 

suspension or cancellation of the CPC/PA/SP. Moreover, the penalties provided under 

Memorandum Circular No. 123 on the failure to wear life jackets are hereby reiterated. 

For guidance and strict compliance. 



By Authority of the Board: 

(SGD.) ATTY. OSCAR M. SEVILLA 

Administrator 

--o0o-- 

Memorandum Circular No. 167 

Extension of the Validity of the Pro-Poor Reduced 

Vessel Fees from 01 July 2001 to 30 June 2002 

In order to cover the remaining unregistered motorboat/banca operators and boatbuilders, 

the effectivity of Memorandum Circular No. 157, series of 2000 on Pro-Poor Reduced Vessel 

Fees is hereby extended effective 01 July 2001 to 30 June 2002. 

This Circular shall take effect immediately upon publication thereof in a newspaper of 






Administrator 

--o0o--

358 



Mandatory Ship Reporting Systems 

Pursuant to the provisions of the International Maritime Organization (IMO), through the 

Maritime Safety Committee Resolution A.858(20) in relation to Chapter V Regulation 8-1 of 

the International Convention for the Safety of Life at Sea (SOLAS). 1974, and its protocol of 

1988, and in line with the national policy of enhancing safety to bolster the mandates of the 

Maritime Industry Authority as the Philippinesí flag administration under PD No. 474 and EO 

Nos. 125/125-A, the Maritime Industry Board in its meeting on 13 December 2001, adopted 

the following guidelines on compliance with the mandatory ship reporting systems. 

OBJECTIVE 

This Circular gives notice on the need to comply with the mandatory ship reporting 

systems adopted by the International Maritime Organization (IMO) through the Maritime 

Safety Committee. 

I. COVERAGE 

All shipping companies, ship owners/operators/managers with Philippine-flagged ships 

of 300 gross tons and above, and all ship masters in command of Philippine-flagged ships 

trading within or passing through the areas covered by mandatory ship reporting systems. 

II. SPECIFIC PROVISIONS 

1. All shipping companies/ship owners/operators/managers covered by this Circular shall 

incorporate the necessary guidelines in the shipsí safety manuals to ensure compliance 

on the mandatory ship reporting systems as adopted by IMO. 

2. Ship masters of Philippine-flagged ships when passing through the areas covered shall 

make the necessary reporting to the authorities in accordance with the format, content 

and guidelines stipulated in the pertinent MSC Resolution adopting the mandatory ship 

reporting system. 

III. ADMINISTRATIVE FINES AND PENALTIES 

Any shipping company/ship owner/operator/manager of Philippine-flagged ship which 

fails to comply with the provisions of mandatory ship reporting systems as adopted by IMO 

shall be subject to an administrative fine of TEN THOUSAND PESOS (P10,000.00), on a per 

incident basis, after due notice and hearing. 

The master of any Philippine-flagged ship who fails to participate in the mandatory 

reporting to relevant authorities as required by this Circular shall be subject to an administrative 

fine of FIFTEEN THOUSAND PESOS (P15,000.00) on a per incident basis. 

The Administration may recommend to the pertinent government agency the suspension/ 

revocation of any licenses, permits or competency certificates of a master who is found to 

have violated this circular a third time.


IV. REPEALING CLAUSE 

Any provision of MARINA Memorandum Circulars, otherwise, inconsistent herewith is 

modified/amended accordingly. 

V. EFFECTIVITY 

This Memorandum Circular shall take effect fifteen (15) days after its publication in a 

newspaper of general circulation. 


(SGD.) OSCAR M. SEVILLA 

Administrator 

--o0o-- 


Streamlined Checklist of Documentary Requirements 

and Rationalized Standard Processing Time 

In support of the Anti-Graft and Corruption and Red Tape program of the government 

and upon recommendation of Management, the MARINA Board hereby prescribes the herein 

streamlined list of documents to be required for the various project applications filed with this 

Authority and their corresponding standard processing time. 

Only original copies of such documents or copies duly certified to be true and correct 

by issuing offices/officers shall be accepted. However, photo/fax copies of documents which 

have to be secured from abroad may be provisionally accepted, provided submission of their 

original/certified true copies, notarized/authenticated, as the case may be, shall be imposed 

as post-approval requirements. 

Compliance with RA 7660, entitled ìAn Act Rationalizing the Structure and Administration 

of the Documentary Stamp Tax, Amending for the Purpose Certain Provisions of the National 

Internal Revenue Code, As Amended, Allocating Funds for Specific Programs, And For 

Other Purposesî shall be enforced in accordance with MARINAís Office Order No. 07-94 

which incorporated the pertinent provisions of said Act. 

This Circular shall not, however, preclude the Administrator from waiving some or any 

of the documentary requirements and/or prescribing other documents to be submitted based 

on situational circumstances. 

It is henceforth understood that this Circular has repealed such MARINA rules and 

regulations only insofar as documentary requirements are concerned. The payment of 

processing and other fees shall be in accordance with the existing guidelines and their 

amendments.

360 


This Circular shall take effect fifteen (15) days after its publication once in a newspaper 

of general circulation. 

Adopted: 13 Dec. 2001 



Administrator 

MARITIME TRAINING COUNCIL 



Revised Guidelines for the Issue of Documentary Evidence 

in Basic Safety Training under Regulation VI/1 

of the STCW Convention, As amended 

Pursuant to MTC Resolution No. 01, S-2001 concerning Revised Standards in the 

Issue of Certificates or Documentary Evidence Under Chapters V and VI of the 1978 STCW 

Convention, As Amended, Covering New Entrants and Existing Seafarers, the following 

guidelines are hereby issued for seafarers with sea service of less than twelve (12) months: 

Section 1. General Provisions 

1.1 Seafarers who have satisfactorily completed training in Basic Safety from a training 

center accredited under MTC Resolution No. 03, S-1998, but who have no approved 

seagoing service may be issued the documentary evidence after said candidate has been 

assessed or his competence verified by a qualified assessor. 

1.2 New entrants who have satisfactorily completed training as in 1.1 above may be issued 

the necessary documentary evidence without further assessment or verification of 

competence from NAC assessors provided that: 

1.2.1 Assessment in the training institution was conducted by assessors listed in the MTC 

registry of qualified assessors 

1.2.2 Assessment was conducted in accordance with the approved procedures and 

assessment guide 

1.2.3 Assessment is documented in the MTC prescribed Record of Assessment (ROA) 

1.3 All assessment and certification of competence shall be conducted in accordance with 

ROA Form No. 14B and Annexes 1-4


Section 2. Documentary Requirements 

The following documents shall be submitted in the application for the issue of documentary 

evidence in Basic Safety Training: 

2.1 Accomplished application form 

2.2 Training certificate or transcript of records or certification from the school registrar 

indicating completion of the course: 

2.2.1 MTC accredited training centers under MTC Resolution No. 03, S-1998 (training 

certificates) 

2.2.2 CHED accredited maritime schools (training certificate or transcript of records) 

2.2.3 TESDA accredited schools for ratings (training certificate or transcript of records) 

Section 3. Filing of Application 

The application for issue of documentary evidence in basic safety shall emanate from 

the shipping company, manning agency, seafarersí union/organization/associations. Facility 

for walk-in applicants may be provided, as may be deemed necessary. 

Section 4. Assessment/Verification of Seafarerís Competence 

The qualified assessor of the National Assessment Center shall assess or verify the 

competence of the applicant in accordance with the instructions and procedures specified in 

the Record of Assessment (ROA) Form No. 14B. 

Section 5. Issue of Documentary Evidence 

5.1.1 A seafarer who has demonstrated competence in accordance with Section 5 above 

shall be issued the necessary document under MTC Resolution No. 1 S-2001. 

Section 6. Payment of Fees 

The seafarer-applicant shall pay the amount of Two Hundred Pesos (P200.00) for each 

certificate. 

Section 7. Lost or Damaged Certificates/Documentary Evidence 

Replacement or re-issuance of lost or damaged certificates may be allowed only upon 

the submission of an affidavit/sworn statement indicating the following: 

a. the date and time of the discovery of loss or destruction 

b. the circumstances surrounding the loss or destruction 

In such cases, an amount of Two Hundred Pesos (P200.00) shall be charged for every 

certificate issued under this condition. 

Section 8. Effectivity

362 





(SGD.) LORNA O. FAJARDO 

Executive Director 

--o0o-- 


Adoption of General Tanker Familiarization 

Under the Revised IMO Model Course 1.01 

Pursuant to Section 3.0 of MTC Resolution No. 03, Series of 1998, the following 

implementing instructions and clarifications are hereby issued. 

1. Effective 01 February 2002, the training standard in the application for accreditation of 

the course in General Tanker Familiarization (GTF) shall be in accordance with the Revised 

IMO Model Course 1.01; 

2. Training centers whose GTF has been issued provisional authority or accredited in 

accordance with the prescribed training standard under MTC Course Program No. 97- 

003 may continue to conduct training under such standard until the expiry of such authority 

or accreditation. 

3. The same training centers are given the option to implement the Revised IMO Model 

Course 1.01 before the expiry of its authority or accreditation provided that they give 

notice to the MTC Secretariat regarding the adjustments it has taken to conform to the 

requirements of the IMO Model Course. 

For guidance and strict compliance. 





--o0o-- 

Resolution No. 03, s. 2002 

Validity of Training Certificates on Basic Safety Training 

Held by Filipino Seafarers Who Have Been Deployed on Board 

Ships Before 1 February 2002 But Whose Service Agreement 

Ends After that Date


WHEREAS, paragraph 4 of MSC/Circ. 918 dated 04 June 1999 states that seafarers 

are not required to hold certificate as evidence of basic training in order to comply with 

Regulation VI/1 because the evidence required by Section A-VI/1 is not considered to be a 

certificate. 

WHEREAS, notwithstanding the foregoing guidance set by the IMO, the Philippine 

Government opted to issue national document in basic safety after the seafarers have 

completed training in accordance with Section A-VI/1 of the STCW Code in order to prevent 

the proliferation of fraudulent documents. 

WHEREAS, in view of the large number of Filipino seafarers being deployed on 

seagoing ships every year, a large number has been deployed on board before 1 February 

2002 who are holders only of training certificates issued by training centers accredited by 

the MTC. 

WHEREAS, paragraph 2.2 of Annex 1 of STCW 7/Circ. 1 dated 24 September 1996 

recognizes the practical difficulties associated in the training of seafarers in Basic Safety 

due to the large number of seafarers involved, thus Administration urged to treat each case 

on its merit; 

WHEREAS, the Maritime Training Council as the responsible agency in the 

implementation of the Convention finds it justifiable to allow seafarers to have more time to 

secure a nationally issued document in basic safety. 

NOW, THEREFORE, in view of the foregoing premises, resolve that: 

1. Training certificates in Basic Safety issued to Filipino seafarers by training centers 

accredited by the Maritime Training Council (MTC) after 30 October 1998 shall be valid as 

documentary evidence until 30 June 2002. 

2. Filipino cadets indentured or signed on to undertake one (1) year structured program as 

part of the BSMT or BSMarE course under the supervision of qualified officers on board 

are only required to possess training certificates described above. 

RESOLVED further that this Resolution shall be communicated to IMO Secretary-General 

and Flag-States employing Filipino seafarers for information and guidance. 


Approved: 


Secretary, Department of Labor and Employment 

and Chairman, Maritime Training Council 

(SGD.) ANTONIETA FORTUNA-IBE (SGD.) ROSALINDA D. BALDOZ 

Chairperson, Professional Regulation Administrator, Philippine Overseas 

Commission (PRC) Employment Administration (POEA) 

(SGD.) WILHELM D. SORIANO (SGD.) OSCAR M. SEVILLA 

Administrator, Overseas Worker Administrator, Maritime Industry 

Welfare Administration, (OWWA) Authority (MARINA)

364 


(SGD.) VADM. REUBEN S. LISTA (SGD.) ESTER A. GARCIA 

Commandant, Philippine Coast Guard Chairman, Commission on Higher 

(PCG) Education, (CHED) 

(SGD.) VICENTE F. ALDANESE, JR. (SGD.) GREGORIO S. OCA 

Private Sector Representative Private Sector Representative 

Filipino Association for Mariners Associated Marine Officers and 

Employment (FAME) Seamenís Union of the Philippines 

(AMOSUP) 

(SGD.) ROSALINDA V. TIRONA (SGD.) JOSE T. TALE 

Assistant Secretary Deputy Executive Secretary 

Department of Foreign Affairs (DFA) Office of the President 


Attested to: 



--o0o-- 


Implementation of Regulation I/9 of the 1978 STCW 

Convention as Amended, on the Electronic Verification 

of the Authenticity of the Seafarersí Certificates 

WHEREAS, the Maritime Training Council (MTC) created under Letter of Instruction 

No. 1404 is mandated to give full effect to the International Convention on Standards of 

Training, Certification and Watchkeeping for Seafarers: 

WHEREAS, pursuant to Regulation I/9 of the 1978 STCW Convention, as amended in 

1995, the MTC, the focal agency in the implementation of the revised STCW Convention 

shall establish a central website for the verification of the seafarersí certificates; 

WHEREAS, the MTC has designed and established a website that is linked to each of 

the COUNCIL MEMBERSí website with full responsibility to maintain and secure their respective 

databases. 

NOW, THEREFORE, for and in consideration of the foregoing, the member agencies 

hereby agree to the following terms and conditions: 

1. COUNCIL MEMBERS shall ensure the integrity and security of the data in their 

respective database and website. 

2. COUNCIL MEMBERS shall assume responsibility in maintaining their links, updates 

and the regular monitoring of data in the website.


3. COUNCIL MEMBERS shall be held accountable for any misinformation or 

inconsistencies on electronic records including any liability that may arise in connection 

therewith. 

IN WITNESS WHEREOF, we have hereunto set our hands this 24th day of January 

2002 in the City of Manila, Philippines. 



and Chairman, Maritime Training Council 





Administrator, Overseas Workers Administrator, Maritime Industry 

Welfare Administration, (OWWA) Authority (MARINA) 








(AMOSUP) 





Attested to: 



--o0o-- 


Allocation of Funds for Test-Buy Operations on Fake 

Certificates and Prosecution of Offenders 

WHEREAS, the Philippines as a member country of the International Maritime 

Organization (IMO), and as a signatory to the 1978 STCW Convention, as amended, has the

366 


duty and obligations to undertake measures to preserve the integrity of certificates issued to 

Seafarers; 

WHEREAS, the Maritime Training Council under Executive Order 242, is the agency 

responsible in giving full and complete effect to the implementation of the 1978 STCW 

Convention, as amended; 

WHEREAS, Regulation I/5 of the Revised STCW Convention, provides for the 

establishment of processes and procedures for the prevention of fraud; 

WHEREAS, to enable the Maritime Training Council to pursue its purpose directed at 

the prevention of fraud and prosecution of offenders involving issuance and use of fake 

certificates, a corresponding funding is necessary similar to those being sourced out by law 

enforcement agencies of the government; 

WHEREAS, the member agencies of the Maritime Training Council directly involved in 

the protection and preservation of the integrity of certificates issued to seafarers are the 

Professional Regulation Commission (PRC), Technical Educations and Skills Development 

Authority (TESDA) and National Telecommunications Commission (NTC) in pursuance with 

their respective administrative powers and functions; 

WHEREAS, the aforementioned member agencies, individually, in representation of 

the Maritime Training Council, can effectively ensure compliance and implementation of the 

measures being undertaken to preserve the integrity of the seafarerís certificates as 

contemplated herein. 

NOW, THEREFORE, the Council resolves, as it hereby RESOLVED, for the said member 

agencies to allocate funds from their respective budget and operating expense for the testbuy 

operations involving fake certificates and prosecution of offenders involved and that the 

allocation be available and replenishable at any given time as special funding in connection 

with the operations referred to, provided that the same is subject to the accounting and 

auditing requirements of the agency concerned; and provided further that the release thereof 

is approved by the Maritime Training Council through its Chairman. 

RESOLVED, further that in pursuance herewith, the agency concerned may enter into 

a Memorandum of Understanding with the law enforcement agencies such as the Philippine 

National Police and the National Bureau of Investigation, for the effective operation including 

the prosecution of the offenders involved. 

RESOLVED finally, that an initial amount of FIFTY THOUSAND PESOS be allocated by 

the individual agency concerned for the purpose above stated. 

This resolution takes effect immediately. 


Approved: 



and Chairman, Maritime Training Council






Administrator, Overseas Workers Administrator, Maritime Industry 

Welfare Administration, (OWWA) Authority (MARINA) 








(AMOSUP) 






NATIONAL COMMISSION ON INDIGENOUS PEOPLES 


NCIP Administrative Order No. 1, s. 2002 

Guidelines for the Review and Verification of the Certificates 

of Ancestral Domain Title (CADT) and Certificates of Ancestral 

Land Title (CALT) Approved by the First Commission En Banc 

of the National Commission on Indigenous Peoples but Were 

Neither Registered with the Register of Deeds nor 

Released to the Claimants-Owners 

Pursuant to the provisions of Sections 44 (e), 51, 52, 53 and 54, R.A. 8371, otherwise 

known as ìThe Indigenous Peoples Rights Act of 1997î the following guidelines are hereby 

promulgated for the information and guidance of all concerned: 

Section 1. Objective. The guidelines are hereby promulgated in order to determine 

with finality the validity of the Certificates of Ancestral Domain Title (CADT) and Certificates 

of Ancestral Land Title (CALT) approved by the first Commission of the NCIP.

368 


Section 2. Scope. These guidelines shall apply only to the ten (10) Certificates of 

Ancestral Domain Title (CADT) and six hundred five (605) Certificates of Ancestral Land Title 

(CALT) approved by the first Commission of the NCIP during their incumbency but were 

neither registered with the Register of Deeds nor released to the claimants-owners before 

the expiration of their term of office on February 23, 2001. These CADTs and CALTs are now 

in the custody of the Ancestral Domains Office of this Commission. 

Section 3. Definition of Terms. The following terms and phrases, as used herein, are 

defined hereunder, thus: 

a. Commission shall refer to the National Commission on Indigenous Peoples. 

b. Material defects - refer to defects in the material facts and documents relative to the 

petition. A fact is material where the knowledge or ignorance of it will naturally influence 

the judgment of the Commission in deciding whether the CADT or CALT will be granted or 

not. 

c. Infirmity - where the documents and evidences submitted in support of the petition for 

issuance of CADT or CALT are grossly insufficient that it cannot establish the necessary 

facts. 

d. Fraud - a false representation of fact, made with knowledge of its falsehood, or recklessly, 

without belief in its truth, with the intention that it should be acted upon by the Commission 

and actually inducing the Commission to act upon it. Failure to disclose facts, when there 

is a duty to reveal them, constitutes fraud. 

e. Force - where physical or moral strength has been applied to cause the signing of the 

CADT or CALT to overcome opposition. 

f. Intimidation consists in causing or creating a fear in the mind of a person or in bringing in 

a sense of mental distress in view of a risk or evil that may be impending reality or 

imagination. There is intimidation when one of the parties is compelled by a reasonable 

and well-grounded fear of an imminent and grave evil upon his person or property to give 

his/her consent. 

g. Misrepresentation - A false representation of a material fact by the applicant to the 

Commission, tending directly to induce the latter to approve the petition, when otherwise 

the Commission might not approve the petition at all. 

Section 4. Creation and Functions of the Special Committee on Review and Verification. 

The Chairperson shall create a Special Committee on Review and Verification which shall 

exercise the following functions and duties, viz: 

a. to direct and supervise the review and verification of the CADTs and CALTs subject hereof; 

b. to examine and evaluate the documentary evidence submitted in support of each petition 

for the issuance of CALT or CADT and recommend to the Commission the appropriate 

action;


c. to coordinate with the Ancestral Domains Office, regional and field offices of the NCIP 

and other government agencies; 

d. to devise or adopt, in coordination with the Ancestral Domains Office, a system of 

handling the records of these CADTs and CALTs that would ensure its safety and integrity; 

e. to submit periodic reports or other reports as may be required by the Commission; and 

f. to submit a terminal report to the Commission at the conclusion of its task. 

Section 5. Supervision and Control - The Special Committee on Review and verification 

shall be under the direct supervision and control of the Office of the Chairperson of this 

Commission. This committee shall conduct such review and verification in coordination and 

consultation with the Commissioner representing the concerned ethnographic region. 

Section 6. Procedure for Review and Verification of Documentation. The procedure 

for review and verification shall involve the thorough examination and review of the documents 

supporting each and which were the basis for the approval of the CADTs or CALTs. For this 

purpose, the documents on file with the NCIP and/or original file or certified xerox copy from 

the DENR or the original duplicate copy may be used by the committee. 

Section 7. Findings. Where the CADT or CALT: 

a. appear to be regular in form and content and supported by complete and substantial 

documentation, including the required proofs, updated census of claimants-owners, proof 

of fact of publication, approved survey plan, and other requirements and there are no 

pending protests or unresolved conflicts, the committee shall cause the conduct of ocular 

inspection, verification of survey monuments, and verification of identity of rightful claimantsowners 

named in the CADT or CALT and thereafter prepare the CADT or CALT using the 

new form and submit the same to the Commission for approval and signature; 

b. lacks certain requirements which are not material nor substantial, the committee shall first 

require the claimant-owner to comply with the requirements before proceeding as 

prescribed in paragraph (a) thereof; 

c. lacks an approved survey plan, the application shall be returned to the Ancestral Domains 

Office for the completion of the process which includes the execution of the survey, 

verification and approval of survey returns, and publication. Thereafter, the ADO shall 

endorse the same to the committee for the preparation of the CADT or CALT and 

submission to the Commission for approval and signature; 

d. covers an ancestral domain/land entirely or partially involved in an unresolved protest or 

boundary conflict, the application shall be returned to the Ancestral Domains Office for 

proper resolution in accordance with the guidelines on conversion or new application, 

whichever is applicable, if the procedure for conflict resolution or due process had not 

been observed during the earlier state of conflict. However, in cases where protestants 

may be estopped or had defaulted or had been negligent in asserting their rights, no 

protest shall be entertained and the committee shall proceed in accordance with these 

rules;

370 


e. has material defects or infirmities, such as, but not limited to absence of required proofs, 

inability to determine the identity of ancestral domain/land, or questionable or doubtful 

identity of claimants, the application shall be recommended to the Commission for revocation 

with due notice to the claimant and claimant may be advised to re-apply. However, the 

claimant has the right to be heard and may file with the Commission within fifteen (15) 

days from receipt of such notice a motion for reconsideration, explanation, position paper 

or any brief; or 

f. was secured through fraud, force, intimidation, misrepresentation, or financial inducement 

the committee shall recommend to the Commission the revocation or rejection thereof. 

The Claimant shall be notified by the Commission in writing of the reasons for the revocation 

or rejection, The claimant may opt to exercise his/her right to be heard as prescribed in 

paragraph (e) hereof. 

Section 8. Funding. Where the ancestral domain/land covered by the CADT or CALT 

under review, a verification is included in the NCIP compliance with the SONA Pledge of her 

Excellency President Gloria Macapagal-Arroyo or under any special project, all expenses 

shall be charged to funds for such projects, otherwise, it shall be funded under the regular 

NCIP-ADO program. 

Section 9. Separability Clause. In case any clause, sentence, section, provision or 

any portion hereof is declared unconstitutional or invalid by a competent court, the sections 

or provisions hereof which are not affected thereby shall continue to be in full force and 

effect. 

Section 10. Repealing Clause - The provisions of all administrative orders, memoranda, 

circulars, special orders, office orders or other issuances inconsistent herewith are hereby 

repealed or modified accordingly. 

Section 11. Effectivity. These guidelines shall take effect fifteen (15) days from date of 

filing with the University of the Philippines Law Center as required under Sec. 4, E.O. 292. 


(SGD.) Hon. CORAZON M. ESPINO (SGD.) Hon. NORMA M. GONOS 

Commissioner Commissioner 

(SGD.) Hon. REUBEN A. LINGATING (SGD.) Hon. EDTAMI P. MANSAYAGAN 


(SGD.) Hon. LAGTUM A. PASAG (SGD.) Hon. PABLO SANTOS 



(SGD.) Hon. EVELYN S. DUNUAN 

Chairperson 

--o0o--


NCIP Administrative Order No. 2, Series of 2002 

Revised Guidelines for the Conversion of Certificate of 

Ancestral Domain/Land Claims to Certificate of Ancestral 

Domain/Land Titles Delineated Prior to R.A. 8371 

Pursuant to the provisions of paragraph (a), Section 52, Republic Act. No. 8371,otherwise 

known as the Indigenous Peoples Rights Act of 1997 and other related provisions, the 

following guidelines are hereby promulgated revising NCIP Memorandum Circular No. 1-99, 

Series of 1999, as follows: 

I. PRELIMINARY PROVISIONS 

Section 1. Title. These rules shall be known as the ìRevised Guidelines On Conversionî. 

Section 2. Statutory Basis. Section 52 paragraphs (a) and (j) of IPRA provides that 

ICCs/IPs whose ancestral lands/domains were officially delineated prior to its enactment 

shall have the right to apply for the issuance of a Certificate of Ancestral Domain Title 

(CADT) over the area without going through the delineation process provided therein, and 

for those whose ancestral domains have been officially delineated and determined by the 

NCIP shall be issued a CADT in the name of the community concerned, containing a list of 

all those identified in the census; and in the case of ancestral land claims, Section 53 (g) 

provides that if NCIP finds such claims meritorious, it shall issue a Certificate of Ancestral 

Land declaring and certifying the claim of each individual or corporate (family or clan) 

claimant over ancestral lands. In both cases, paragraph (k) of Section 52 further provides 

that NCIP shall register issued certificates of ancestral domain titles and certificates of 

ancestral land titles before the Register of Deeds in the place where the property is situated. 

HENCE, these guidelines. 

Section 3. Declaration of Policy. The IPRA recognizes all ancestral domains/lands 

delineated according to the DENR Administrative Order No. 2, Series of 1993, and earlier 

directives implementing community/ancestral domain program. Acknowledging, therefore, 

the initiative of the DENR in the identification and delineation of the ancestral domains/lands 

of the ICC/IPs to ensure their socio-economic and cultural well-being, and in order to afford 

full protection to ICC/IPs of their right to their ancestral domain/lands covered by CADC/ 

CALC, it is the policy of the NCIP that the same shall be converted to CADT/CALT, if such 

claims are proven meritorious, without going through the process provided in the law but shall 

be reviewed and evaluated in accordance with the appropriate DENR directive and validated 

through the guidelines promulgated hereunder. 

Section 4. Objective. These Guidelines for the Conversion of CADCs and CALCs to 

CADTs and CALTs aim to: 

a) Provide the process through which the right of ICCs/IPs to apply for the issuance of a 

CADT/CALT may be exercised and implemented expediently, over all ancestral land and 

ancestral domain claims delineated prior to the effectivity of RA 8371; 

b) Review the process of issuance of CALCs/CADCs to ensure the correctness of the 

delineation made, the sufficiency and regularity of the process undertaken, for it to be

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considered as one officially delineated in conformity with their respective sources of 

authority providing for their delineation, before their CADT or CALT issued and awarded; 

c) Enable the registration of the CADTs and CALTs issued and awarded with the Register of 

Deeds of the province in which the land or domains are situated to confirm and record the 

titles vested over ancestral lands and domains pursuant to these Guidelines and the pertinent 

provisions of the IPRA. 

Section 5. Coverage. These Guidelines for Conversion of CADCs/CALCs to CADTs/ 

CALTs will cover: 

a) All Ancestral Land Claims officially delineated under DENR Special Order No. 31 and No. 

31-A, as amended, both series of 1990, with coverage in the Cordilleras; except those 

claims validated pursuant to NCIP Special Order No. 1 Series of 1999 that were approved 

for titling by the First Commission but were not issued by reason of the moratorium 

imposed by Executive Order No. 1, Series of 2001, the validation and conversion of which 

will be covered by NCIP-AO-01, Series of 2002; 

b) Ancestral Land Claims delineated pursuant to DENR Administrative Order No. 61, Series 

of 1991 with coverage in Palawan; 

c) All Ancestral Lands and Domains officially delineated under DENR Department Order 

No.2, Series of 1993 on the Identification, Delineation and Recognition of Ancestral Domain 

& Ancestral Land Rights; except those claims validated pursuant to NCIP Special Order 

No. 1, Series of 1999 that were approved for titling by the First Commission but were not 

issued by reason of the moratorium imposed by Executive Order No. 1 Series of 2001, 

the validation and conversion of which will be covered by NCIP-AO-01, Series of 2002; 

Section 6. Operating Principles. In implementing the guidelines set forth in this 

Administrative Order, the following operating principles shall be adhered to: 

a) Voluntary Application - The concerned ICCs/IPs whose ancestral domain/land were officially 

delineated in accordance to the DENR Special Order No. 31 and 31-A, both Series of 

1990, Administrative Order No. 61, Series of 1991, and Administrative Order No. 2, Series 

of 1993, may voluntarily apply for the conversion of their CADC/CALC to CADT/CALT. 

b) Recognition of Original Claimants - the original claimants indicated in the CADC/CALC 

shall continue to be recognized by the Commission provided that they are authentic 

members of the concerned ICC/IP community or family/clan concerned, without prejudice 

of including in the list those who, under IPRA have the right to make the claim but were 

previously omitted by inadvertence or for lack of knowledge of the filing and processing of 

the claim. In such case, their inclusion in the list shall be made pursuant to the guidelines 

set forth under Section 16 below. In case an original CADC has been approved under the 

name of an individual, family, clan, association or organization, it shall be appropriately 

corrected to be named after the claimant IP community in the specific location pursuant to 

Rule VIII, Section 2, Par. (o) of the IRR. 

c) Non-transferability of Claim - Claims over officially delineated ancestral domain/lands are 

non-transferable except in cases of transfer between and among members of the same 

IC/IP community or family/clan in accordance with their customary law or practice.


d) Self-Delineation - the ancestral domain/lands shall be identified and delineated by the 

ICC/IPs themselves through their respective council of elders/leaders whose members 

are identified by them by customary practice. The metes and bounds of ancestral domains 

shall be established through traditionally recognized physical landmarks, such as, but not 

limited to, burial grounds, mountain ridges, hills, creeks, stone formation and the like. 

e) Cultural Integrity - within ancestral domain/lands, the holistic and integrated adherence of 

indigenous peoples to their respective customs, beliefs, traditions, indigenous knowledge 

systems and practices, and the assertion of their character and identity as peoples shall 

remain inviolable. All activities pertinent to the identification, delineation and recognition of 

the ancestral domain/lands of ICC/IPs shall be in consultation with them and measures 

must be taken to ensure that the culture and traditions of the concerned ICC/IPs are 

applied or utilized in the process. 

f. Inter-agency and NGO Collaboration and Community Support - The collaboration of other 

government agencies and the involvement and participation of the ICCs/IPs in the process 

shall be greatly encouraged and vigorously pursued. NGOs who have actively assisted a 

particular ICC/IP in the processing of their claim is given preference over any other 

NGOs desiring to collaborate, subject to the written consent of the ICC/IP through their 

recognized elders/leaders for this particular undertaking. 

g. Peace Building - The validation of CADCs/CALCs and the consequent issuance of CADTs/ 

CALTs as well as the delineation and recognition of ancestral land/domain claims shall 

foster peace among ICC/IPs and between IPs and non-IPs. 

h. Adherence to Philippine Reference System of 1992 - Conduct of actual ground survey to 

complete the delineation process to be had for the purpose of conversion of a CADC/ 

CALC applied for, whether to be surveyed by the government, private surveyors or by 

collaborating NGOs and other mapping institutions, shall conform with the Philippine 

Reference System of 1992. 

i. Policy on Survey and the Survey Manual - Upholding the principle of self-delineation and 

in deference to existing laws on surveys, NCIP shall formulate and adopt its own policies 

on surveys that would harmonize both concerns. The same shall be embodied in the 

Survey Manual to be adopted by the Commission to govern the validation of surveys 

already had or to be had. For this purpose, the manual shall provide, among others, the 

procedure for the correction of erroneous, irregular, incomplete surveys, or defective 

surveys for want of authority. In no case shall the policy of self-delineation to be defeated 

by this operating principle. 

Section 7. Definition of Terms - For guidance, the terms defined in the Indigenous 

Peoples Rights Act and its Implementing Rules and Regulations are hereby adopted, including 

the terms defined herein below. 

a) Officially Delineated Ancestral Domain/Land Claim - refers to an ancestral domain/land 

claim that has been applied for conversion which, after undergoing the evaluation and 

validation process provided for under this guidelines, is found to have been properly 

identified, the process for the delineation was sufficiently, correctly and regularly 

undertaken, pursuant to and in conformity with, its appropriate delineation authority or 

directive, or, if found to be irregular, deficient or incorrect in some material aspect, that

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the regular process has already been complied with, the deficiency has been supplied for 

or corrected pursuant to this guideline and therefore qualifies for issuance of a CADT/ 

CALT as certified to by ADO. 

b) DENR - this refers to the Department of Environment and Natural Resources. 

c) Private Mapping Institution - this refers to private institution and or non-government 

organizations doing the survey and delineation of ancestral domains whether before or 

after the issuance of CADCs/CALCs, whose instruments used are certified by the NAMRIA, 

issued with Survey Authority by the NCIP and recognized by the ICC/IP through a written 

community resolution of the concerned ICCs/IPs. 

d) DAO No. 2 - this refers to DENR Administrative Order No. 02, series of 1993 that was 

promulgated to identify and delineate the ancestral lands and domains of indigenous 

cultural communities to ensure their social, economic and cultural well-being. 

e) DAO No. 61 - this refers to DENR Administrative Order No. 61, series of 1991 that was 

promulgated to identify and delineate the ancestral lands of indigenous cultural communities 

in the province of Palawan. 

f) Special Order No. 31 - this refers to DENR Special Order No. 31, series of 1990 that was 

promulgated to identify and delineate the ancestral lands and domains of indigenous 

cultural communities within the City of Baguio and the rest of the Cordilleras. 

g) Certificate of Ancestral Domain/Land Title (CADT/CALT) - refers to the land tenure 

instrument issued by the DENR recognizing the claim of indigenous cultural communities 

on land, resources and rights thereon within a defined territory. 

h) Certificate of Ancestral Domain/Land Title (CADT/CALT) - as defined in Section 1, (c), 

(d) Rule II of the Implementing Rules and Regulations of the IPRA. 

i) Customary Laws - as defined in Section 1(h), Rule II, of the Implementing Rules and 

Regulations of the IPRA. 

j) Indigenous Cultural Communities/Indigenous Peoples - as defined in Section 1(k), Rule 

II, of the Implementing Rules and Regulations of the IPRA. 

k) Indigenous Political Structures - as defined in Section 1(m), Rule II of the Implementing 

Rules and Regulations of the IPRA. 

l) Time Immemorial - as defined in Section 1(x) of the Implementing Rules and Regulations 

of the IPRA. 

m) Defective Surveys for Want of Authority - refer to past surveys initiated by the claimant 

ICC/IP, family/clan or individual, done by a private mapping institution or collaborating 

non-government organization but without the required authority and MOA from NCIP, or 

those with Survey Authority and MOA but the survey was done without the participation of 

a duly licensed Geodetic Engineer. Nevertheless, in both instances, the instruments used 

for the survey of the CADC/CALC should appear to have been previously certified to by 

NAMRIA.


n) Special Provincial Task Force - refers to a task force created by the Provincial Office to 

assist the Provincial Officer in the execution of directives of ADO for field validation and 

production of lacking documents, papers and proofs required for the processing of 

applications for conversion. 

o) Collaborating Non Government Organization (NGO) - refers to NGOs assisting a specific 

ICC/IP applying for conversion who have properly obtained the consent of the ICC/IP 

concerned and is duly accredited with NCIP as an NGO in good standing as provided for 

in Section 4, Part II, Rule IV of the IPRA Implementing Rules and Regulations. 

p) Regional Ancestral Domain Team - refers to the team constituted by the Regional Director 

in accordance with the provisions hereunder as counterpart of ADO central office. 

II. PHASES OF CONVERSION 

Section 8. Phases of Conversion - The procedure for conversion of CADCs to CADTs 

and CALCs to CALTs shall have the following phases: 

1. Information Dissemination - The NCIP, mainly through the ADO Office, through the 

various field offices (Community Service Centers, Provincial and Regional Offices) under 

a Special Provincial Task Force hereinafter created, shall conduct widespread and massive 

information in all CADC/CALC areas covered by these guidelines. 

2. Review and Field Validation of CADC/CALC - The NCIP, through the ADO in collaboration 

with the Special Provincial Task Force will conduct the necessary review and evaluation of 

the documents and records supporting the CADC/CALC applied for conversion issued 

prior to the enactment of RA 8371, and determine the correctness of the delineation made 

and sufficiency and regularity of the process undertaken through the process of field 

validation and authentication. 

3. Actual Survey and Validation of Survey - If actual survey of the domains covered by the 

CADC or CALC applied for conversion has not been undertaken, or has been undertaken 

but the result was found to be erroneous, incorrect, incomplete or is defective for want of 

authority, or is done contrary to the system mentioned in paragraph h Section 6 above, 

ADO shall order the Regional AD Team, through the Regional Director, to conduct and 

facilitate the actual survey of the CADC/CALC concerned in accordance with the NCIP 

Survey Manual within twenty (20) days after the conduct of the actual survey, the surveyor 

or surveying party shall submit the survey returns and the map complete with technical 

descriptions to the Regional Director through the Regional Ancestral Domain Team, who 

shall submit the same to the community concerned for field validation to be completed ten 

(10) days from date of submission by the surveyor or surveying party. Within two (2) days 

after the validation of the survey, the Regional Director shall transmit to the ADO the 

validated survey returns and the map complete with technical descriptions. The transmittal 

shall be accompanied with a certification from the community that they have validated the 

survey returns and the map, duly signed by the representative of the community; 

4. Endorsement to the Commission - ADO within fifteen (15) days from receipt of the result 

of the field validation made for each CADC/CALC and the survey returns submitted by the 

Regional Ancestral Domain Team, shall complete and submit its final report and endorsement 

to the Commission, recommending appropriate action;

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5. Issuance and Registration of Title - The NCIP shall issue the Certificate of Ancestral 

Domain Title or Ancestral Land Title and shall cause its original registration with the Registry 

of Deeds of the province where the land is situated, in accordance with the Memorandum 

of Agreement executed between the Land Registration Authority and the NCIP. 

III. PROCEDURE OF CONVERSION 

Section 9. Information Dissemination - Immediately after the effectivity of these 

Guidelines, the ADO Office, through the Special Provincial Task Force hereinafter created, 

shall conduct widespread and massive information dissemination and IEC on IPRA in general 

and on the Identification. Delineation and Recognition of Ancestral Domain Rights, concept 

of Ancestral Domain Communities (ADC) and the process of conversion herein provided in 

particular, in all CADC/CALC areas covered by these guidelines. The NCIP Provincial Officer 

shall notify the community through its Council of Elders/Leaders five (5) days in advance, 

that an information dissemination shall be conducted on such a date and time and that their 

presence is required. 

Section 10. Transfer of Records - The transfer of records from the DENR to NCIP 

must be made official and documented to establish all the necessary facts of the transfer 

made for purposes of accountability in the custody of records. 

Section 11. Applications Already Filed - Applications for conversion of CADCs/CALCs 

already filed shall be evaluated by ADO to determine whether the same has substantially 

complied with the requirements laid down under the subsequent section. 

Section 12. Procedure and Requirements for New Application For Conversion - 

Applications for the issuance of CALT/CADT over ancestral lands/domains already delineated 

prior to IPRA will be processed in accordance with the following procedure and requirements: 

a. Petition to File Application - The concerned ICC/IP community/clan/family or individual 

shall give their consent to file application as properly embodied in a Resolution to support 

the Petition, duly signed by a majority or all of the members. They shall be required to 

authorize any of their members to file their application to represent the community/clan or 

family. Both the consent and authorization of a representative must be in writing using the 

native language or local dialect and signed by the majority of the members. In case of 

death of one or any of original claimants, his/her heirs shall submit a notice of substitution 

with attached copy of the Death Certificate of the deceased original claimant or by a Joint 

Affidavit of Two Disinterested Persons attesting and establishing the fact of death before 

the substitution is effected in the records. 

b. Completion of Application Form - the applicant-representative shall accomplish in three 

copies the application form provided. The same shall be executed under oath by the 

representative assisted by an NCIP employee. The oath shall be administered by those 

authorized by law to administer oath. The fees required for notarization shall be shouldered 

by NCIP. The application form shall indicate the following basic information: 

1. Name of ethnic group; 

2. Specific location/coverage of area proposed for CALT/CADT issuance; 

3. Name/address of authorized leader to file application, indicating nature of authority 

and date given;


4. General information on the land tenure instrument to be converted, e.g., control number, 

date of issuance, name of claimant/holder, total aggregate area in hectares; 

5. Survey information such as the nature or type of survey, control number of survey 

authority, name and position of approving official, and date approved; 

6. Signatures of all members of the Council of Elders/Leaders for CADT application and 

the individual, clan/family for CALT application as the case may be. 

c. Submission of Application Form - The application form with attachments may be filed in 

the Service Center, Provincial Office, Regional Office having jurisdiction over the ancestral 

domain/land claim applied for, or directly to the NCIP-Central Office through the ADO, 

whichever is convenient to the applicant ICCs/IPs for conversion. Whenever the same is 

filed before any of the Community Service Center or Provincial Office, the receiving 

officer shall, within five (5) days from receipt thereof, transmit to the NCIP Regional Office 

through the RAD Team, who in turn, shall immediately transmit said application to ADO 

within five (5) days from receipt thereof. No application shall be transmitted without ensuring 

the complete and due execution of the application form and the required attachments and 

supporting documents. The following documents shall be attached to the application form 

upon submission: 

1. Original copy of the Petition/Resolution of the IC/IP community concerned for the 

conversion of their CADC to CADT signed by at least majority of the IP members; 

2. Original copy of the written authorization from the IC/IP community concerned for the 

applicant-representative to file as well as follow-up the application; 

3. Census of the population of the concerned IC/IP community; 

4. In case of death of one or any of the original claimants, the required submission of 

Notice of Substitution by any of the heirs and the corresponding Death Certificate of the 

deceased original claimant or Joint Affidavit of Two Disinterested Persons; and 

5. Authenticated copies of records or documents supporting the application pursuant to 

the aforementioned DENR Orders to include the following: 

(a) Certificate of Ancestral Domain Claim or Certificate of Ancestral Land Claim 

(b) Blueprint copy of the approved perimeter survey plan 

(c) Copy of the list of claimant/beneficiaries attached to the CADC/CALC 

(d) Copy of the resolution of such conflict, in case an ancestral domain/land was 

subject of conflict settlement 

(e) Copy of the evaluation report and endorsement of the concerned Special Task 

Force created under DENR S.O. 31, A.O. 61 and A.O. 2. 

(f) Copy of the affidavit of publication of the claims in two newspapers of general 

circulation 

(g) Copies of any or all, but not limited to the following documents of proof of 

claim over ancestral domain/land: 

Required attachments for application of CALT issuance: 

1. Genealogical surveys 

2. Historical accounts 

3. Write-ups of customs and traditions 

4. Pictures of old improvements such as trees, stone walling, farms, rice fields, 

orchards, monuments, houses and other old structures

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5. Survey plans and/or sketch maps 

6. Ancient documents 

7. Tax declaration and proofs of payment of taxes 

For application of CADT issuance: 

1. Genealogical surveys 

2. Historical accounts 

3. Write-ups of customs and traditions 

4. Anthropological data 

5. Written and oral testimonies under oath of living witnesses 

6. Written accounts of the indigenous communityís political structure and institutions 

or traditional structures of indigenous social and government systems, with names 

of recognized leaders 

7. Pictures showing long term occupation such as those of old improvements, 

burial grounds and sacred places 

8. Pictures and descriptive histories of traditional communal forest and hunting 

grounds 

9. Pictures and descriptive histories of traditional landmarks such as mountains, 

rivers, creeks, ridges, hills and terraces 

10. Write-ups of names and places derived from the native dialect of the community 

11. Survey plans and/or sketch maps 

12. Ancient or Spanish documents 

13. Other documents directly or indirectly attesting to the long term occupation of 

the area which show possession since time immemorial, or through their 

predecessors-in interest, in the concept of owners and in accordance with their 

customs and traditions 

Section 13. Reception and Recording of Application - The ADO, upon receipt of the 

application form and pertinent documents, shall: 

1. Ascertain the completeness of the application form including attachments and will not 

receive any application with incomplete entries or documents; 

2. Stamp and sign ìreceivedî all pages of the submitted documents, marking the time and 

date of receipt; 

3. Stamp and sign ìcopy authenticatedî the photocopies of documents after presentation 

of the original copies; 

4. Issue receipt (Attachment C) to the applicant, indicating checklist of documents received; 

5. Enter the time and date of receipt and docketing of the documents in a logbook 

maintained for the purpose of recording applications - one logbook for CADC conversion 

and another logbook for CALC conversion; 

Section 14. Review and Evaluation of all documents supporting the application for 

conversion - ADO shall review and evaluate all documents supporting each application for 

conversion of CADC/CALC to determine the completeness and due execution of the documents 

as required by the applicable DENR directive/order that issued the Certificate. If found 

complete, ADO shall immediately require the Special Task Force concerned to conduct the 

field validation for such application to be completed within the period of five (5) consecutive 

days. If incomplete, the ADO, through the Provincial Office concerned, shall require the 

applicant to complete the same within a reasonable period of time, after which, field validation


shall follow. Evaluation of new CADC/CALC applications for conversion shall likewise be had 

under the same consideration as stated above for pending applications, but giving preference 

to the latter in the order of review and evaluation. 

Section 15. Field Validations - After review and evaluation, ADO shall cause the field 

validation to be conducted by the Special Provincial Task Force on site to effect the 

determination of correctness, sufficiency and regularity of the process of delineation 

undertaken in accordance with the applicable DENR directive/order. The NCIP Provincial 

Officer shall notify the community through its Council of Elders/Leaders, adjoining communities 

through their elders or leaders, and other affected entities, five (5) days in advance that a 

field validation shall be conducted on such a date and time and that their presence is 

required especially on the verification of the metes and bounds thereof. The field validation 

shall give special emphasis on the following: 

a. The authenticity of the names of claimants as appearing in the census previously made if 

there is any, and if none, conduct the census, and when necessary, facilitate the inclusion/ 

exclusion of claimants in the list as provided for under Section 16 below. 

b. See confirmation from the community/family/clan whether they have actually given their 

consent to convert their CADs/CALCs into CALTs/CADTs. 

c. Validate whether a person presenting himself in the application for conversion as the 

representative of the community/clan or family or individual, as the case may be, was 

properly authorized by the concerned community/clan or family. 

d. Verify and ascertain on site the proofs and basis of the extent of the claim on ground as 

contained in the records submitted and applied for conversion by ICCs/IPs whether the 

area applied for conversion rightfully belongs to the claimant for purposes of issuing the 

title. 

e. Present the survey plan to the applicant ICC/IP community for validation. If not validated, 

proper corrections may be made or another may be conducted. 

Section 16. Inclusion/Exclusion for the List of Claimants - For purposes of Section 6, 

paragraph (b) above, those who, under the IPRA, have the right to make the claim but were 

previously omitted by inadvertence or for lack of knowledge of the filing and processing of 

the claim shall be considered. In such case their names shall be included in the new list to be 

prepared by the community. Their inclusion in the list shall be authenticated by the signatures 

of the identified council of leaders and/or elders, or in the case of CALCs, by the head of the 

family/or clan. Conversely where there are persons whose names are fictitious or nonexistent, 

or are not entitled to be included in the list pursuant to IPRA, their names shall be 

deleted from the list as recommended by the council of identified leaders and/or elders, or in 

the case of CALCs, by the head of the family/or clan. The exclusion shall be made only after 

those concerned are duly notified in writing and given the opportunity to prove their 

membership in a proceeding that will be had by the council or by the head for the purpose. 

Section 17. Survey Manual - The Commission shall promulgate its own rules on surveys 

which shall be referred to as the Survey Manual that would apply to all surveys of ancestral 

domains and lands for purposes of these guidelines and the survey required by the IRR of 

the IPRA. The Manual shall also set the procedure upon which errors of past surveys of

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CALCs/CADCs applied for conversion may be corrected. The operating principle as stated 

in paragraph (h) of Section 6 above shall be observed in the formulation of the Survey 

Manual. 

Section 18. Absence or Lack of Actual Survey of CADCs/CALCs Applied for 

Conversion - In cases where no actual survey of the ancestral domains covered by the 

CADC has been undertaken, the ADO through its Regional Director shall issue a Survey 

Authority within ten (10) days from the last day for filing opposition as stated in the Publication, 

and shall assist the applicant community in the actual ground survey. The ADO, through the 

Regional Director concerned, shall cause the preparation of the perimeter map complete 

with technical descriptions together with the description of the natural features and landmarks 

embraced therein. 

Section 19. Completion of Survey Result and Approval Thereof - Within twenty (20) 

days after the conduct of the actual survey, the surveyor or surveying party shall submit the 

survey returns and the map complete with technical descriptions to the Regional Director 

through the Regional Ancestral Domain Team, who shall submit the same to the community 

concerned for field validation to be completed in ten (10) days from date of submission by 

the surveyor or surveying party. Within two (2) days after the validation of the survey, the 

Regional Director shall transmit to the ADO the validated survey returns and the map complete 

with technical descriptions. The transmittal shall be accompanied with the map, duly signed 

by the representative of the community. The ADO shall cause the approval of the result of the 

survey Manual. No survey plan shall be submitted to ADO without being validated by the ICC/ 

IP community concerned. 

Section 20. Errors or Irregularities in the Survey of CALC/CADC Areas Applied for 

Conversion - In case of errors or irregularity in the conduct of the survey, such as, but not 

limited to: An error in the technical description of the survey; lack of actual ground survey; 

incomplete survey; defective surveys for want of authority; the ADO shall effect remedial and 

corrective measures, as follows: 

a. Erroneous Technical Description - whenever there is an error in the technical description 

in the survey of ancestral lands or domains, and the same is considered as typographical, 

said error must immediately be corrected by the person authorized to enter the correction 

and duly noted on record. However, if the correction would result to a substantial alteration 

of the size of the area as originally recorded, ADO shall remedy the same in the manner 

and method provided in the Survey Manual. Nonetheless, if vested rights of adjacent 

property owners are affected by the correction, the same shall be considered as a case 

of boundary conflict and shall be disposed of in accordance with the provision provided 

below for resolution of boundary conflicts. 

b. Incomplete Survey - where there was survey authority issued but no survey was completed, 

the survey shall be completed immediately; 

c. Defective Surveys for Want of Authority - Applications with defective surveys for want of 

authority shall not be rejected outright. ADO shall determine whether the defect can be 

cured in accordance with the Survey Manual. 

Section 21. Resolution of Protests or Opposition to the Conversion - For purposes of 

conversion, only those conflicts that were not resolved during the field validation process 

shall be entertained, and the subject of the protest shall be limited only to those matters


appertaining to the updating of list of claimants and the validation of the survey already 

made, provided that in the latter case, the protestant is not otherwise estopped applying the 

rules of the DENR directive/order that issued the CADC or CALC. Boundary conflicts or 

conflicting claims arising from new surveys for purposes of conversion not resolved during 

the field validation process can also be made subject of protest or opposition. For this 

purpose, the protest shall be made within five (5) days from the time of the declaration of 

non-resolution of the conflict by the community. The Special Provincial Task Force or the 

Regional Ancestral Domain Team conducting the field validation and the survey, respectively, 

shall immediately refer the same to ADO, who shall act on it through the Regional Hearing 

Officer concerned. After a finding of prima facie case, only then that ADO shall direct the 

Regional Hearing Officer to conduct the hearing in a summary procedure within the time and 

in the manner provided for in the special rules of adjudication promulgated by the Commission 

especially for resolution of protests or oppositions for purposes of conversion. The existence 

of protest or opposition shall be included in the report to ADO. The pendency of any protest 

or opposition where the subject merely involves inclusion or exclusion of claimants, shall not 

prevent the process of issuing the title which can proceed independently of the protest. The 

ADO shall decide all protests and opposition to the conversion of CADCs to CADTs. The 

ADO shall have a period of thirty (30) days after submission of all pleadings/evidence within 

which to resolve protests or oppositions. Provided that all decisions of the ADO may be 

appealed to the NCIP within ten (10) days from receipt of the decision of the ADO. The 

decision of the NCIP shall be appealable to the Court of Appeals by way of Petition for 

Review within fifteen (15) days from receipt of the decision. 

Section 22. Resolution of Boundary Conflicts - In case where, as a result of the actual 

ground survey, boundary conflicts among indigenous peoples communities arise, the ADO 

office through the Provincial Office shall cause the contending parties to meet and assist 

them in coming up with a preliminary resolution of the conflict, without prejudice to its full 

adjudication according to the special rules on adjudication mentioned in the immediately 

preceding paragraph applying Sec. 62 of the IPRA as follows: 

a. In cases where boundary conflicts arising for the actual ground survey of the domains 

cannot be resolved by the parties themselves, the NCIP in accordance with its own rules 

and procedures, shall hear and decide, after notice to the proper parties, the disputes 

arising from the actual ground survey. Such decision shall be rendered within 30 days 

after receipt of the last pleading. 

b. If the dispute is between and/or among ICCs/IPs regarding the traditional boundaries of 

their respective ancestral domains, customary process shall be followed. 

c. Any decision, order or award or ruling of the NCIP on any ancestral domain dispute may 

be brought for Petition for Review to the Court of Appeals within fifteen (15) days from the 

receipt of a copy thereof. 

IV. ISSUANCE OF TITLE AND REGISTRATION 

Section 23. Preparation and Submission of Final Report to the Commission. After 

receipt of both the results of the field validation and the result of the survey from the Regional 

Office, the ADO shall have fifteen (15) days within which to prepare and submit the final 

report to the Commission concerning the CADC/CALC already validated and surveyed. The 

report shall contain the summary of its findings. For every application for conversion of

382 


CADC/CALC found by ADO to be officially delineated, a recommendation for the issuance 

of the corresponding CALT or CADT shall be made in the final report. In case where an 

application for conversion is proven to be patently false or fraudulent, the ADO shall reject 

the application. In case of rejection, the ADO shall give the applicant due notice, copy 

furnished all concerned, containing the grounds for denial. The denial shall be appealable to 

the Commission within fifteen (15) days from receipt of the notice of denial. The Commission 

shall study the final report and the recommendations made by ADO. 

Section 24. Action by the Commission En Banc - Within thirty (30) days from receipt 

of the final report and the recommendation made by the ADO, the Commission shall meet en 

banc to discuss the merits of the CADC/CALC applied for conversion based on the report 

and the documents accompanying the endorsement, and may either decide to approve or 

disapprove the application for conversion, or return the report together with its comments to 

the ADO, for further consideration. The decision taken by the Commission for each application 

submitted by ADO for consideration shall be embodied in a Resolution. 

Section 25. Issuance of CALT/CADT - In case of approval, the Commission shall 

immediately transmit the Resolution approving the application to ADO directing the latter to 

prepare the corresponding Certificate of Title in the name of the claimant/IP community in a 

specific location, together with all its necessary annexes, who shall have five (5) days from 

receipt thereof within which to prepare and submit the same to the Commission. The CADT 

or CALT shall be issued by the Commission and signed by all the Commissioners. No CADT 

shall be issued in the name of a person, family, clan, association or organization, The 

issuance of the CALT/CADT shall be done through a ceremony whereby the ICCs/IPs 

concerned shall be reminded of their corresponding obligations and responsibilities. 

Section 26. Disapproval of Application for Conversion - In case of disapproval, ADO 

within five (5) days from date of receipt of the resolution disapproving the application for 

conversion, shall notify the applicant concerned of the disapproval. Attached to the notice will 

be the applicantís copy of the Resolution. The notice shall indicate, among others, the remedy 

available to the applicant. If returned by the Commission for further consideration, ADO shall 

act on the comment in the manner and within the period stated in the Resolution. The decision 

of the NCIP shall be appealable to the Court of Appeals by way of Petition for Review within 

fifteen (15) days from receipt of the notice. 

Section 27. Registration of CADT/CALT - The ADO through the Provincial Office 

concerned shall assist the recipient ICC/IP community/clan/family in the registration of the 

CALT/CADT with the Registry of Deeds in the Province where the land is situated. 

Section 28. Submission of Maps - A copy of the Official Map of the ancestral domain 

or ancestral land shall be submitted to the appropriate government agency for records and 

control purposes. 

V. SPECIAL PROVINCIAL TASK FORCE 

Section 29. Constitution of Special Provincial Task Force of SPTF - There shall be 

created in each Provincial Office a Special Provincial Task Force to assist the Provincial 

Office in the execution of directives of ADO for field validation and production of lacking 

documents, papers and proofs required for the processing of applications for conversion. 

The Special Provincial Task Force shall be headed by the NCIP Provincial Officer, who shall


immediately constitute the Task Force by first designating two (2) Tribal Affairs Assistants 

and two (2) Community Affairs Officers as members. The Team Leader from the Regional 

Ancestral Domain Team shall automatically be a member of the task force. In addition, the 

membership shall be complemented by one (1) representative from the assisting NGO chosen 

and recognized by the applicant- community, one (1) DENR Field Officer, two (2) members 

from the applicant-community, and one (1) representative from the LGU of the area, preferably 

the Municipal Planning Officer. 

VI. REGIONAL ANCESTRAL DOMAIN TEAM 

Section 30. Constitution of Regional Ancestral Domain Team or RADT - To expedite 

the flow of coordination and execution of the directives from ADO, there shall be created in 

each Regional Office a Regional Ancestral Domain Team. Accordingly, the NCIP Regional 

Director shall immediately constitute the team by designating the Head of the Technical 

Division as the Team Leader, Legal Officer, and two (2) Engineers of the Region as team 

members. In their absence, the Regional Director shall choose the most qualified to be given 

the designation. 

Section 31. Referral of Disapproved Applications to the Requirements of Regular 

Delineation Process - If after validation and evaluation of an application for conversion of 

CADC/CALC to CADT/CALT by ADO, the latter would find out that no proper delineation was 

had (like community consultations/census/proper documentation and production of proofs, 

identification of the metes and bounds of ancestral domains and lands) on the basis of the 

applicable delineating authority or directive, ADO shall recommend to the Commission the 

re-delineation of the claim. If decided by the Commission to be re-delineated, the ADO shall 

notify the applicant thereof. The re-delineation shall be done following the regular delineation 

process pursuant to Rule VIII of the IRR of the IPRA. 

VII. ADMINISTRATIVE SANCTIONS 

Section 32. Administrative Discipline Over NCIP Personnel - Appropriate administrative 

sanction shall be imposed upon any employee or personnel or officer of the NCIP, who 

through willful and malicious acts, or who through negligence fail to observe the reglementary 

periods required to be observed in these guidelines. The appropriate sanction/penalty will be 

imposed in accordance with the NCIP and Civil Service Rules on Discipline. 

VIII. FUNDS 

Section 33. Sources of Funds - The funding requirements of the activities as indicated 

in this Guideline shall be sourced from the amount intended for the Management/Development 

of Ancestral Lands per item A.III.a.2 in the Annual Budget of NCIP and from the Ancestral 

Domains Fund identified in Section 71 of the IPRA, and the amount committed by the Office 

of the President from its Presidential Operational Funds and other sources that the Office of 

the President may determine 

Section 34. Policy Guidelines for Fund Allocation and Disbursement - To ensure the 

prudent and effective utilization of funds, a separate Policy Guidelines for Fund Allocation 

and Disbursement shall be formulated and promulgated by the Commission in due time to 

govern the allocation and disbursements of all funds as mentioned above. 

Section 35. Approval of ADO Work and Financial Plan - ADO shall prepare a Work 

and Financial Plan to be approved by the Commission in accordance with the Policy Guidelines 

mentioned in the immediately preceding paragraph.

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IX. SPECIAL PROVISION 

Section 36. Special Coverage - All applications for the identification, delineation and 

recognition of ancestral lands and domains filed by claimants in the City of Baguio pursuant 

to S.O. No. 31, series of 1990, as amended, and DAO No. 2, series of 1993, shall be 

covered by this Order. 

X. FINAL PROVISIONS 

Section 37 Separability Clause - In case any clause, section, sentence, or provision 

of this Administrative Order or any portion hereof is held or declared unconstitutional or 

invalid by a competent Court, the other sections or portions hereof which are not affected 

thereby shall continue to be in full force and effect. 

Section 38. Repealing Clause - This Administrative Order repeals NCIP Memorandum 

Circular No. 1, Series of 1999. The provisions of other Circulars, Memoranda, Administrative 

Orders, issued by this Commission, inconsistent herewith or contrary to the provisions hereof 

are hereby repealed or modified accordingly. 

Section 39. Effectivity - This Administrative Order shall take effect fifteen (15) days 

from its registration in the Office of the National Administrative Register, U.P. Law Center, 

Diliman, Quezon City, Philippines 

APPROVED: 

(SGD.) CORAZON M. ESPINO (SGD.) NORMAN MAPANSA-GONOS 


(SGD.) LAGTUM A. PASAG (SGD.) EDTAMI P. MANSAYAGAN 


(SGD.) REUBEN D.A. LINGATING (SGD.) PABLO SANTOS 



(SGD.) EVELYN S. DUNUAN 

Chairperson 

--o0o-- 

NCIP Administrative Order No. 3, Series of 2002 

Revised Guidelines for the Issuance of Certification Precondition 

and the Free and Prior Informed Consent in Connection with 

Applications for License, Permit, Agreement or Concession to 

Implement and or Operate Programs/Projects/Plans/ Business 

or Investments Including Other Similar or Analogous Activities or 

Undertaking that do not involve Issuance of License, Permit, 

Agreement or Concession but Requires the Free and Prior 

Informed Consent of ICC/IP Community in Ancestral Domain 

Areas in Accordance with R.A. 8371


Pursuant to Sections 44 (m), 46(a) 57, 58, 59, and 7 (b) and (c) of R.A. 8371,otherwise 

known as the Indigenous Peoples Rights Act of 1997, and other related provisions, the 

following guidelines are hereby promulgated revising NCIP Administrative Order No. 03, 

Series of 1998, as follows: 

I. PRELIMINARY PROVISIONS 

Section 1. Title - These rules shall be known as the Revised Guidelines for FPIC and 

issuance of Certificate Precondition. 

Section 2. Objective - These guidelines aim to: 

a) Ensure community participation in the decision making process in obtaining the Free and 

Prior Informed Consent of concerned ICCs/IPs; 

b) Protect the primary rights of ICCs/IPs in the implementation of development projects, 

programs, activities and other business or profit oriented investments within their ancestral 

domains to ensure their economic, social and cultural well-being; 

c) Provide the procedure and the standards in the conduct of field-based investigation, 

charges of fees, compensation for damages and imposition of administrative sanctions 

for intentional commission of prohibited acts as hereinafter provided; and 

d) When FPIC is given, ensure just partnership and equity in the environmental management, 

land use, development, utilization and exploitation of resources within ancestral domains, 

between and among the concerned ICC/IP community and the prospective investor, 

government agency, LGUs, NGOs and other entities desiring to collaborate in such 

undertaking. 

Section 3. Declaration of Policy - Inroads into the ancestral domains of ICCs/IPs 

resulted more often to their disenfranchisement and marginalization. Policies, plans, 

development programs and projects which may have been prejudicial to the rights and interests 

of ICs/IPs, and certain harmful or detrimental undertakings or activities have been adopted 

and implemented within ancestral domains without the consent of concerned ICC/IP 

communities. Free and prior informed consent, as an instrument of empowerment, enable 

ICCs/IPs to exercise their right to self-determination. In order to uphold the clear intent and 

purpose of the law in requiring the precondition of free and prior informed consent of the 

ICCs/IPs in connection with applications for lease,license, permit, agreement and/or 

concession to implement and/or operate programs/projects/activities in ancestral domains, it 

is the policy of the NCIP that the process of securing the FPIC of ICCs/IPs and the 

corresponding issuance of Certificate Precondition shall be had with utmost regard to the 

overriding right of the ICC/IP to the management, development, use and utilization of their 

own land and resources within their ancestral domains and lands as recognized by the State. 

It shall institute and establish protective mechanisms to enforce and guarantee the realization 

of that bundle of rights, within the framework of national unity and development. Corollary to 

this, the NCIP shall exercise its visitorial powers and may take appropriate action to safeguard 

the rights of the ICCs/IPs under resource utilization contracts. All concerned departments 

and other government agencies are therefore strictly enjoined not to issue, renew, or grant 

any concession, license or lease, or enter into any production-sharing agreement, without 

the certification precondition issued by the NCIP or the concommitant compliance with the 

requirement of free, prior and informed content obtained from the ICC/IP community.

386 


Section 4. Operating Principles - In the implementation of these guidelines, the following 

principles shall be observed: 

a) Consensus and Decision- Making Process - The ICCs/IPs shall participate in the decisionmaking 

processes primarily through their indigenous socio-political structures and they 

shall likewise affirm the decisions of their representation. 

b) Peace-Building - In resolving conflicts or disputes affecting or pertaining to indigenous 

peoples, any determination or decision thereon shall be reached through dialogue and 

consensus. 

c) Primacy of Cultural Integrity - Within ancestral domain/lands, the holistic and integrated 

adherence of indigenous peoples to their respective customs, beliefs, traditions, indigenous 

knowledge systems and practices, and the assertion of their character and identity as 

peoples shall assume an important consideration in the decision-making processes required 

for the issuance of the certification as a pre-condition to applications for lease, license, 

permit agreement and/or concession to implement or operate programs/projects/activities 

in ancestral domains to ensure that the culture and traditions of the concerned ICC/IPs 

are applied or utilized in the process. 

d) Right to Manage Own Land and Resources as Basis - The right of the ICCs/IPs to 

manage their own land and resources within their ancestral domains and lands as embodied 

in their respective plans for the sustainable development and protection of ancestral 

domains shall be the basis for their decision to give or not to give consent to proposed 

programs/projects/activities in ancestral domains and/or affecting their rights as a 

community and as people. 

e) Primacy of Customary Law - The conduct of field-based investigation and the process of 

securing the free and prior informed consent shall take into consideration the primacy of 

customary processes of consensus building. 

f) Priority in the Development of the Ancestral Domain - The ICC/IPs are five utmost 

priority in the Management and pursuit of development programs/projects/activities in 

ancestral domains. In all instances, the ICC/IPs shall have priority in the development, 

extraction, utilization and exploitation of natural resources within ancestral domains. 

g) Sustainable Development and Protection - The FPIC, whenever given, shall not have the 

effect of undermining the requisite of sustainable development and protection of ancestral 

domains, to ensure the welfare of not only the present but as well as that of the future 

generations. 

h) Transparency and Clarity - The process of conducting the field-based investigation, 

consensus-building and the issuance of the certification precondition (CP) and the free 

and prior informed consent (FPIC) shall be characterized by transparency not only on the 

part of the Commission but also on the part of the ICC/IP concerned. It is required 

therefore, that all issuances, orders, decisions of the Commission relative thereto must be 

made known to all parties concerned. 

i) Inter-agency/LGUs and NGO Collaboration and Community Support - The collaboration 

of other government agencies, local government units, and the involvement and participation


of the ICCs/IPs in the process shall be greatly encouraged and vigorously pursued. NGOs 

who have actively assisted a particular ICC/IP in the processing of their claim is given 

preference over any other NGOs desiring to collaborate , subject to the written consent of 

the ICC/IP through their recognized elders/leaders for this particular undertaking. 

Section 5. Definition of Terms - The terms defined in the Indigenous Peoples Rights 

Act and its Implementing Rules and Regulations are hereby adopted, including the terms 

defined herein below: 

a) ADSDPP - refer to the Ancestral Domain Sustainable Development Protection Plan 

drawn and adopted by the ICC/IP community to govern the exercise of their sustainable 

traditional resource use rights within their ancestral domain areas, their framework of 

development and value systems. 

b) Customary Laws - refers to a body of written and/or unwritten rules, usage, customs and 

practices traditionally and continually recognized, accepted and observed by respective 

ICC/IPs. Customs and practices refer to norms of conduct and patterns of relationship or 

usage of a community over time that is accepted and binding on all members. 

c) Certification Precondition - refers to the certification issued by the NCIP that the site 

covered and affected by any application for concession, license or lease, or productionsharing 

agreement does not overlap with any ancestral domain area of any indigenous 

cultural community or indigenous peoples, or if the site is found to be within an ancestral 

domain area, that the required FPIC was properly obtained from the ICC/IP community 

concerned in accordance with the provisions of these guidelines. 

d) Free and Prior Informed Consent - this is the consensus of all members of the ICC/IPs 

which is determined in accordance with their respective customary laws and practices 

that is free from any external manipulation, interference and coercion and obtained after 

fully disclosing the intent and scope of the program/project/activity, in a language and 

process understandable to the community. The Free and Prior Informed Consent is given 

by the concerned ICCs/IPs upon the signing of the Memorandum of Agreement containing 

the conditions/requirements, benefits as well as penalties of agreeing parties as basis for 

the consent. 

e) Field-based Investigation - refers to the on-site inspection and investigation to ascertain 

the presence or absence of ICC/IPs and/or ancestral domains in the areas covered by 

application for certification precondition to any concession, license or lease, or enter into 

any production-sharing agreement. 

f) Indigenous Cultural Communities Indigenous Peoples (ICCs/IPs) - refer to a group of 

people or homogenous societies identified by self ascription and ascription by others, 

who have continuously lived as organized community on communally bounded and defined 

territory, and who have, under claims of ownership since time immemorial, occupied, 

possessed, and utilized such territories sharing common bonds of language, customs, 

traditions and other distinctive cultural traits, or who have, through resistance to political, 

social, and cultural inroads of colonization, non-indigenous religions and cultures or the 

establishment of present states boundaries, who retain some or all of their own social, 

economic, cultural and political institutions, but who may have been displaced from their 

traditional domains or who may have resettled outside their ancestral domains.

388 


g) Indigenous Knowledge Systems and Practices - refer to the systems, institutions, 

mechanisms, technologies comprising a unique body of knowledge evolved through time 

that embodies patterns of relationships between and among peoples, their lands and their 

environment, including such spheres of relationships which may include social, political, 

cultural, economic, and religious that are direct outcomes of the indigenous peopleís 

response to certain needs consisting of adaptive mechanisms which have allowed 

indigenous peoples to survive and thrive within their given socio-cultural and biophysical 

conditions. 

h) Elders - are individuals IPs or members of ICCs with a certain degree of esteem, dignity, 

respect, and integrity who could be relied upon as sources of information, act as counsels 

of community concerns, and knowledgeable and practicing customs and traditions. 

i) Self-Determination/Governance - The exercise of the right of ICC/IPs to pursue their 

economic, social, and cultural development; promote and protect the integrity of their 

values, practices, indigenous knowledge and institutions; determine, use and control their 

own organizational and community leadership systems, institutions, relationships, patterns 

and processes for decision-making and participation. 

j) Sustainable Traditional Resource Use Rights - means the right of ICCs/IPs to use, manage, 

protect and conserve; a) land, air, water and mineral, b) plants, animals and other 

organisms, c) collecting, fishing and hunting grounds, d) sacred sites, and e) all areas of 

economic, ceremonial and aesthetic value in accordance with their indigenous knowledge, 

beliefs, systems and practices. 

Section 6. Coverage - The ICCs/IPs shall, within their communities, determine for 

themselves, policies, development programs, projects and plans to meet their identified priority 

needs and concerns. The ICCs/IPs shall have the right to accept or reject a certain 

development, activity or undertaking in their particular communities. The acceptance or 

rejection of proposed policy, program, project or plan shall be assessed in accordance with 

the following IPs development framework and value systems for the conservation and protection 

of: 

a) Ancestral domains/lands as the ICCs/IPs fundamental source of life; 

b) Traditional support system of kinship, friendship, neighborhood clusters, tribal and 

inter-tribal relations rooted in cooperation, sharing and caring; 

c) Sustainable and traditional agricultural cycles, community life, village economy and 

livelihood activities such as swidden farming, communal forests, hunting grounds, 

watersheds, irrigation systems and other indigenous management systems and practices; 

and 

d) Houses, properties, sacred and burial grounds. 

These guidelines shall cover the following programs/projects/activities: 

a) Exploration, development, exploitation and utilization of natural resources for commercial 

purposes within ancestral domains/lands, by IPs and non IPs alike;


b) Research on indigenous systems, knowledge and practices related to agriculture, forestry, 

watershed and resource management systems and technologies, medical and scientific 

concerns, bio-diversity and bio-processing, including the gathering of biological and genetic 

resources; 

c) Archaeological explorations, diggings, excavations and access to religious and cultural 

sites; 

d) Activities that would impinge on their spiritual and religious traditions, customs and 

ceremonies, including ceremonial objects; 

e) Programs, projects and activities that would lead to the displacement and/or relocation of 

indigenous peoples; 

f) Entry of migrants and other entities who intend to do business or engage in development 

activities inside the ancestral domains; 

g) Management of protected and environmentally critical areas, and other joint undertakings 

within ancestral domains; 

h) Implementation of government reforestation and infrastructure projects; 

i) Activities that may adversely affect the airspace, bodies of water and lands of the ancestral 

domains; 

j) Policies affecting the general welfare and the rights of ICCs/IPs; 

k) Occupation of military or paramilitary forces or establishment of temporary or permanent 

military facilities within the domains; Military operations traversing ancestral domain areas 

may be allowed without the required FPIC only when the same is made in connection with 

hot pursuit operations and the duration is not to exceed the period of seven (7) days. 

l) Other activities or undertaking similar or analogous to the foregoing; 

II. PROCEDURE AND PROCESS REQUIREMENTS FOR THE ISSUANCE OF 

CERTIFICATION PRECONDITION AND THE FREE AND PRIOR INFORMED CONSENT 

Section 7. Endorsement of Concerned Agency - The application for lease, license, 

permit, agreement and/or concession to implement or operate programs/projects/activities in 

ancestral domains is directly filed by the proponent to the concerned government agency for 

compliance of the agencyís applicable regulatory requirements, who in turn, endorses it to 

NCIP for certification precondition as required by the IPRA. The endorsement is to be 

addressed to the NCIP Chairperson through the Ancestral Domains Office. Request for 

certification precondition coming directly from the proponents will not be acted upon. If the 

undertaking is proposed to be had by the ICC/IP community themselves, NCIP shall only 

verify if the same is in accordance with their own ADSDPP. If the undertaking is proposed to 

be had in their own ancestral domain area by an IP or group of IPs who are members 

thereof, NCIP shall verify if the same is in accordance with the communityís own ADSDPP 

and compliance with the requirement of FPIC. For verification purposes, NCIP field office 

shall always be informed by the proponent IP or group of IPs of any undertaking that requires

390 


the FPIC of the ICC/IP community to which they are members as provided in these guidelines. 

In the absence of such ADSDPP, collaboration of accredited NGOs in this undertaking will 

be recognized. In the case of an IP or group of IP proponents who are members of the same 

community where the undertaking is proposed to be had, NCIP shall make sure that the 

proponent/s is or are not made to appear as such under any scheme or arrangement by any 

person or entity who has the intention of circumventing the law requirement on certification 

precondition and the FPIC. If the undertaking is proposed to be had by an IP individual or a 

group of IPs who is or who are not members of the ICC/IP community, the proponent/s shall 

have to file it before the appropriate government agency regulating the conduct of the proposed 

undertaking for compliance of the agencyís applicable regulatory requirements, and upon 

endorsement by the concerned agency to the NCIP, the application shall undergo the required 

activities for certification precondition. 

Section 8. Requirements from the Endorsing Agency - The endorsement letter should 

enclose the report on the nature and extent of the proposal and the indicative map of the 

applied site including the outlying impact or affected areas. 

Section 9. Conduct of Fieldbased Investigation - The field based investigation is the 

first step in the process required for the issuance of certification precondition. It is done to 

ascertain whether or not the site applied for falls within, contains the whole, or overlaps a 

portion of an ancestral domain area, whose boundaries on the ground may have already 

been predetermined and secured by an existing recognized tenurial instrument, or in its 

absence, is recognized as traditionally belonging to a particular ICC/IP as part of their 

ancestral domain as defined in Section 3 (a) of the IPRA. For this purpose, it is assumed that 

the site applied for issuance of certificate precondition falls, within, contains the whole, or 

overlaps a portion of an ancestral domain of ICCs/IPs until proven otherwise . It is the duty 

of the team conducting the field-based investigation to locate the IP community nearest to the 

site applied for the issuance of certification precondition to determine whether or not the site 

falls within, contains the whole, or overlaps a portion of an ancestral domain of ICCs/IPs. The 

detailed steps in the conduct of the field-based investigation are as follows: 

a) Within five (5) working days from receipt of the endorsement from the endorsing agency, 

the Chairman, through ADO directs the concerned Regional Director to constitute the 

field-based investigation (FBI) team and designates a team leader. Members of the FBI 

team shall not be less than five (5), two shall come from the Regional Office and the other 

three shall come from the concerned Provincial Office or the Community Service Center; 

The FBI Team shall be issued with a Work Order by the Regional Director for the purpose 

of conducting the field-based investigation; 

b) The FBI team first conducts assessment of secondary sources of data before they proceed 

to inspect the actual project site and the outlying impact areas within fifteen working days 

from receipt of the Work Order; 

c) Within fifteen (15) working days after the conduct of the field-based investigation, the FBI 

team prepares report with recommendation to the Regional Director for assessment and 

proper action; 

d) Within ten (10) working days from receipt of report from the FBI, the Regional Director 

shall forward the report with appropriate recommendations to the ADO;


e) The ADO, after proper evaluation of the reports and endorsement of the concerned, 

Regional Director shall cause the issuance of the Certification Precondition, However, 

ADO shall not act on recommendations irregularly evaluated and endorsed by the Regional 

Director; 

f) Within seven (7) days from receipt of the report/endorsement, the ADO Director issues 

the certification precondition or appropriate document to the requesting agency. 

Section 10. Contents of the Field-Based Investigation and Assessment Report - The 

field-based investigation and assessment report shall reflect both the assessment of relevant 

secondary data and the results of the actual site inspection. The report duly signed by the 

FBI team leader and properly endorsed by the Regional Director shall contain the following 

minimum information: 

a) Date of report; 

b) Assessment of relevant secondary data, indicating source of data; 

c) Date of field-based investigation; 

d) Location or site of field-based investigation; 

e) Names and designation of authorized FBI Team; 

f) Specific objective or purpose of the field-based investigation; 

g) Specific names of places actually visited; 

h) Names of persons interviewed, indicating their positions in the community; 

i) Statement of actual observations and/or comments gathered; 

j) If the report indicates an overlap to an ancestral domain, the estimated population of 

indigenous peoples in the area should be indicated. It shall also include preliminary 

documentation of the existing indigenous consensus-building/decision-making processes, 

including the identification of the authentic tribal/community leaders, and to determine 

initial estimate of ICC/IP population in the affected areas; 

k) Assessment of observations and/or comments; 

l) If FPIC is found to be a requisite, estimate of cost to be deposited by the proponent as fees 

to answer for the expenses needed in conducting the required FPIC proceedings; 

m) Recommended action and endorsement to the ADO. 

Section 11. Attachments to the Field-Based Investigation and Assessment Report - 

Pertinent documents showing proof of the field-based investigation and assessment report 

shall include, but not limited to the following: 

a) Endorsement letter of appropriate agency and the required attachments; 

b) Copy of secondary data, if applicable, such as the certification from the concerned 

Provincial/Municipal Statistics Office on the ethnic grouping of the population within the 

applied and impact area; 

c) Approved itinerary of travel; 

d) Certificate of appearance from the LGU, Barangay Captain, recognized Elders/Leaders 

of the ICCs/IPs whenever applicable; 

e) Certification from the recognized ICC/IP leadership as determined under Section 14(b) of 

this guidelines, in the concerned province or municipality on the existence, or otherwise, 

of ancestral domains/lands in the area subject to investigation. 

Section 12. Submission of the Applicantís Operation Plan - If the field-based 

investigation report requires the free and prior informed consent (FPIC) of affected ICC/IPs,

392 


the concerned Regional Director shall notify, in writing, the applicant to submit the operation 

plan of the project as provided in their proposal within fifteen (15) working days from receipt 

of the FBI team recommendation. The concerned Director notifies directly the proponent in 

writing to submit the project operation action plan. A copy of the notice is furnished to the 

requesting agency and the ADO; The notice shall also contain information that the applicant 

may now proceed with the conduct of the FPIC. 

Section 13. Payment and Deposit of Fees for Application for Certification Precondition 

and the Certification for FPIC; Basis of Determining the Amount of Fee - The FBI Fee and 

FPIC Fee shall be paid or deposited in the manner provided as follows: 

a) The applicant or proponent is required to pay the fixed amount of Five Thousand (P5,000.00) 

pesos as Field-based Investigation Fee for the conduct of field-based investigation to be 

paid at NCIP regional office concerned. The deposit shall be properly documented; 

b) If the result of the field-based investigation reveals the necessity of securing the FPIC of 

the community concerned, the applicant or proponent is required to deposit before the 

concerned NCIP regional office the FPIC Fee in the amount as estimated by the said 

office and as contained in the FBI report submitted by the region. The NCIP regional 

office shall make the estimate on the basis of the data gathered during the conduct of the 

field-based investigation, taking into account the cost of transportation, food allowance 

and other necessary expenditures needed for the conduct of FPIC proceedings in the 

community viz-a-viz the number of days and the number of participants; 

c) Remaining unspent amount collected as FPIC Fee shall be duly accounted for and shall 

be returned to the applicant or proponent at the end of the FPIC proceedings; 

d) Collection of FPIC Fee on cost estimate made without sufficient basis shall be considered 

as an act of illegal exaction of money and shall be proceeded in accordance with law. 

Section 14. Mandatory Activities in the Conduct of FPIC Process - The ADO through 

the Regional Office shall ensure that the FPIC process include among others, the following: 

a) Notices - Posting of Notices in conspicuous places in and around the area of the concerned 

ICC/IP community by NCIP that a preliminary consultative meeting will be had. Said 

notices shall indicate the date and venue of the meeting, the objectives and the nature and 

scope of the project and identity of the project proponent. Aside from the posting of 

notices, personal service of notices by NCIP to the concerned Council of Elders/Leaders 

is required, which must be served at least five (5) days before the intended date of the 

preliminary consultative meeting and that their presence is required. 

b) Validation of the List of Elders/Leaders - Aside from the list of elders/leaders as appearing 

in the records of NCIP representing a particular ICC/IP community, the FBI Team shall 

conduct a random listing of elders/leaders from the community as identified by name by 

the members thereof. NCIP shall facilitate the convention of these elders/leaders for the 

purpose of validating the authenticity of the names of elders/leaders as appearing in the 

list. In that convention, the participants will be asked to identify who among themselves are 

the recognized leaders of the community and who are not. It is a qualification process in 

which those who presented themselves as leaders/elders will be discerned by the rest of 

them in accordance with their customary laws. The purpose is to secure genuine 

representations for the community in the negotiations that will be had between the proponent


and the community. It is a process in which each of them will present himself before the 

rest for confirmation as a recognized elder/leader of the community. 

c) Preliminary Consultative Meeting - Within fifteen (15) working days from the submission 

of the applicantís operation plan, a preliminary consultative meeting shall be conducted 

within the host community. The participants to the preliminary consultative meeting are; 

the identified council of elders or leaders, the representatives from the proponent, the 

NCIP, the representatives from collaborating NGOs and the civil society operating in the 

concerned area. The proponent will be given sufficient time in the presentation and 

clarification of their project proposal in the said preliminary consultative meeting. The 

Operation Plan and the scope and extent of the proposal shall then be presented to the 

elders/leaders by the proponent for understanding, and shall give them the needed 

information supporting their proposal, including but not limited to: the cost and benefits of 

the proposal to the ICC/IP and their ancestral domains; presentation of perceived 

disadvantages or adverse effects to the community and the measures adopted by the 

proponent to mitigate these; and, a statement of commitment to post performance bond to 

answer for consequential damages to the community. In the discussions to follow, the 

other representatives will be given their turn in presenting their views to the proposal. The 

oppositors to the proposal, if there are any, shall likewise be given equal time in the said 

meeting in the presentation of the basis and reasons of their opposition thereto for the 

appreciation of the council of elders/leaders. NCIPs presence in the meeting is mandatory 

for the purpose of facilitating the conduct of the meeting and to provide the participants 

education and information on IPRA particularly on the FPIC and the rights and privileges 

of the ICCs/IPs. The mechanics of the meeting shall be set by the NCIP representative 

after due consultation from all parties concerned. The council of elders/leaders shall 

decide whether another meeting is necessary to complete the process. 

d) Consensus Building - Within a period of fifteen (15) days after the termination of the last 

and final preliminary consultative meeting/s, the Elders/Leaders shall complete the conduct 

of their own consultation meetings with their members in the community employing their 

own traditional consensus building processes in order to further discern the merits and 

demerits of the proposal as presented in the preliminary consultative meeting. During this 

period, nobody from the participants in the preliminary consultative meeting, except, the 

NCIP representative, will be allowed to stay in the community. NCIPís role in the community 

for the duration of the period is to document the community proceedings that is being had. 

At the end of this process , the elders/leaders may, at their option, call again for another 

meeting before the conduct of the required community assembly is finally had, like when 

there are negotiation points that they wanted to present that require further discussions 

with the applicant. 

e) Community Assembly - Within fifteen (15) days after the lapse of the period provided for 

community consensus building conducted by the ICC/IP Elders/Leaders, NCIP shall cause 

the conduct of Assembly of all the members of the community as represented by the 

household heads. It is on this occasion that the decision of the ICC/IP with respect to the 

proposal will be made known. NCIP will determine by raising of hands the number of those 

who would vote for or against the proposal. The leaders or elders will be required to 

explain the vote had, and if the decision is for the proposal, the terms and conditions of the 

giving of their consent thereto. The decision as explained shall be properly documented, 

and the terms and conditions approving the proposal shall be translated in the form of a 

MOA to be signed by both parties with NCIP, represented by the Chairman, signing as the

394 


third party. The person to sign representing the community shall be chosen by the council 

of elders/leaders among themselves duly authorized by them. A translation of the MOA to 

the dialect of the ICC/IP shall then be prepared. 

Section 15. Issuance of the Certificate of Free and Prior Informed Consent - The 

concerned ICC/IP community shall finally issue the free and prior informed consent through 

their authorized representative(s) upon signing of the Memorandum of Agreement. Likewise, 

this shall be written in English or Tagalog and in the appropriate IP language. Signatures or 

thumb marks must be affixed on each page of the document signifying consent or rejection. 

In case of rejection, the ICC/IPs shall state in the document of rejection whether or not they 

shall entertain alternative proposals of similar nature. Any alternative proposal shall be subject 

to another FPIC of the IPs/ICCs in accordance with the foregoing procedures and requirements. 

However, no FPIC process shall be repeated once a particular proposal has already been 

rejected by the ICC/IPs. 

Section 16. Who Shall Give Their Free and Prior Informed Consent - The scope of 

the ICCs/IPs whose free and prior informed consent is required shall depend upon the 

impact area of the proposed policy, program, projects, plans, activity or undertaking, such 

that: 

a) When the policy, program, project, plan, activity or undertaking affects only a particular 

community within the ancestral domain, only such community shall give their FPIC. But 

the Council of Elders/Leaders representing the whole ancestral domain shall be the one to 

determine whether or not a given policy, program, projects, plans, activity or undertaking 

affects the whole of the ancestral domain or only a portion of it; The determination of the 

scope by the council, may be challenged by way of a petition filed before the Regional 

Hearing Officer. The Petition must be duly signed by a majority of the members of the 

whole ancestral domain area with the allegation that the Council have not reconsidered 

their determination of the scope despite their opposition thereto; 

b) When the policy, program, project, plan, activity or undertaking affects the entire ancestral 

domain, the consent of the concerned ICCs/IPs within the ancestral domain shall be 

secured; and 

c) When the policy, program, project, plan, activity or undertaking affects a whole range of 

territories covering two or more ancestral domains, the consent of all affected ICCs/IPs 

communities shall be secured. 

Section 17. Non-transferability of Free and Prior Informed Consent - The FPIC for a 

particular proposal shall not be transferable to any other party, except in case of merger, 

reorganization, transfer of rights, acquisition by another entity, or joint venture. Provided, 

that there will be no changes in the original plan and the same shall not prejudice the interest, 

rights and welfare of the concerned IP community. 

Section 18. Endorsement of the FPIC Certification to the Ancestral Domains Office - 

The Regional Director shall endorse the FPIC Certification to the Ancestral Domains Office 

for proper evaluation and subsequent issuance of certification precondition. The endorsement 

shall enclose copies of the following:


a) Notices of every meeting for purposes of securing the FPIC written in English or Pilipino 

and in the IP language as authorized by the community elders/leaders; 

b) Minutes of all meetings and proceedings where the proponent had presented, submitted 

and discussed all the necessary information on the proposed program/project, policy or 

plan to be conducted/implemented in a process and language understood by the ICC/IP 

concerned. The minutes must be written in English or Pilipino and in the appropriate IP 

language, as validated by those who attended the meeting or assembly; 

c) Minutes of consultation meetings with all members of the ICC/IP communities affected by 

the request for certification precondition; 

d) Minutes of negotiation meetings on the terms and conditions for granting the FPIC; 

e) Minutes of the validation of the decisions of the authorized ICC/IP negotiators by all 

members concerned; 

f) Sketch map of project impact area; 

g) Documentation of customary practice on consensus building; and 

h) Census of population of the host ICC/IP community. 

Section 19. Process Requirement for the Issuance of Certification Precondition - If 

the applied and impact areas are non-ICC/IP area and/or does not overlap with an ancestral 

domain based on the field-based investigation, the appropriate certification precondtion is 

issued immediately by the Commission through the concerned Regional Director where the 

area is situated. On the other hand, if the field-based investigation report indicates the 

presence of ICC/IPs in the applied and impact areas or an overlap to an ancestral domain/ 

land, the free and prior informed consent through the customary consensus-building process 

of the concerned ICC/IPs is required before the issuance of the certification precondition. 

Section 20. Issuance of the Certification Precondition - The appropriate certification 

precondition shall be issued within fifteen (15) working days from receipt of the pertinent 

recommendation or endorsement of the concerned Director. ADO shall endorse it for approval 

of the Commission, attached in the issuance is the MOA and FPIC certification by the 

concerned host ICC/IP. 

Section 21. Non-Consent by the concerned ICC/IP - The concerned ICC/IPs, in case 

of non-consent or unfavorable decision, shall state in writing the specific reasons for nonconsent. 

The non-consent in writing shall be signed/thumb marked by the authorized leaders/ 

elders in every page of the paper and submit it to the Regional Director. In turn, shall submit 

it to the ADO within five (5) working days from the submission of the written non-consent. 

The ADO, within five (5) working days from receipt of the non-consent shall prepare the 

report and endorsement of the Order of Denial to the Commission. Within ten (10) working 

days thereof, the Commission shall issue appropriate action to be transmitted to the applicant 

and the endorsing agency through the ADO. 

III. MEMORANDUM OF AGREEMENT 

Section 22. The Memorandum of Agreement - If the result of the FPIC process is 

favorable to the proposal, the agreements and conditions discussed in the said process are 

embodied in a Memorandum of Agreement (MOA) between/among the ICC/IPs, the proponent 

and the NCIP and any other party equally involved and witnessed by their respective members. 

In case of change of proponent personalities in the future, the terms and conditions of the 

MOA shall bind the new proponent without necessarily executing another MOA. The Agreement 

must be written in English or Tagalog and in the appropriate IP language. The parties executing

396 


the MOA shall acknowledge the terms, contents and due execution thereof before a notary 

public or person authorized by law to administer oath. 

Section 23. Contents of the Memorandum of Agreement - The MOA shall stipulate 

among others, the following: 

a) The detailed premises of the agreement; 

b) All parties involved; 

c) Inclusive dates/duration of agreement; 

d) The benefits to be derived by the host ICC/IP indicating the type of benefits, specific 

target beneficiaries as to sector and number, the period covered, and other pertinent 

information that could guide the future monitoring and evaluation of the MOA; 

e) Use of all funds to be received by the host ICC/IPs communities, ensuring that a portion of 

such funds shall be allocated for development projects, social services and/or infrastructures 

in accordance with their development framework; 

f) Detailed measures to protect IP rights and value systems; 

g) Detailed measures to conserve/protect any affected portion of the ancestral domain critical 

for watersheds, mangroves, wildlife sanctuaries, forest cover, and the like; 

h) Responsibilities of the proponent as well as the host IP community; 

i) The MOA monitoring and evaluation schemes; and 

j) Penalties for non-compliance or violation of the terms and conditions. 

Section 24. Signatories to the Memorandum of Agreement - The signatories of the 

MOA shall be: 

a) For the ICC/IP community, all authorized community elders/traditional leaders identified 

and recognized by the community 

b) For corporations, partnerships or single proprietorship entities, the authorized officers, 

representatives, or partners as per Board resolution; and 

c) For the NCIP as third party, the Regional Director by authority of the Commission. 

Section 25. Hearing of Complaints on the Memorandum of Agreement - In case of 

any complaint on the MOA implementation, this shall be filed at the NCIP Regional Hearing 

Officer for appropriate action. The decision of the Regional Hearing Officer may be appealed 

to the Commission En Banc. The decision of the Commission En Banc is appealable to the 

Court of Appeals. The NCIP Regional Hearing Office shall acquire jurisdiction over such 

complaints only upon written certification from the Council of Elders/Leaders that the same 

has not been resolved in accordance with their traditional conflict resolution institutions 

applying their customary laws and practices. 

Section 26. Applicability of Customary Laws and Imposition of Sanction/s for Violation 

of the Terms of the MOA. Any person/party who willfully violates or fails to comply with his 

duty or obligation under the provisions of the Memorandum of Agreement may be proceeded 

in accordance with the customary laws and practices of the host or concerned ICC/IPs and 

sanctions may be imposed in accordance therewith, provided it is not cruel and humanly 

degrading. Its applicability shall be without prejudice to the Commissionís exercise of its 

visitorial and injunction powers. Such customary law or practice shall form part of the documents 

supporting the Memorandum of Agreement between the concerned parties.


Section 27. Action of the Commission - The action of the Commission on the petition 

shall be embodied in a resolution, a copy of which shall be forwarded to the Ancestral 

Domains Office. 

IV. ROLE/RESPONSIBILITIES OF ALL CONCERNED PARTIES CONCERNED IN THE 

PROCESSES OF THE CERTIFICATION PRECONDITION 

Section 28. Role/Responsibilities of the Proponent - At the minimum, the proponent is 

obliged to comply with the following to ensure the success of the field based investigation 

and/or the consensus building process: 

a) Prepares and submits proposal of the project; 

b) Presents and submits in writing to the IP community and the NCIP in a language 

understandable to the concerned community the details of all the possible impact of the 

proposed policy, program, project or activity upon the ecological, economic, socio-cultural 

aspect of the community as a whole. Such document shall clearly indicate how adverse 

impacts can be avoided or mitigated; 

c) Payment of the Field-based Investigation Fee for the conduct of the Field-based investigation. 

If the result of the FBI requires the need to secure the FPIC of the community, submit the 

required Operation Plan and deposit of the FPIC fee to answer the expenses for the 

conduct of the FPIC process in the amount as determined in the manner provided in these 

guidelines. 

Section 29. Role/Responsibilities of the ICC/IPs Concerned - On its part, the affected 

ICCs/IPs shall comply with the following to ensure the success of the consensus building 

process: 

a) Determine the customary practice of consensus building to be followed in the conduct of 

FPIC process. This shall be made in writing in their own dialect and shall be translated into 

the major dialect of the community and shall be ratified by the all heads of the families and 

clans or their authorized representatives; 

b) Identify in writing of their Elders/Leaders or representatives of their family or clan who 

can sign on their behalf; 

c) The Council of Elders/Leaders shall be registered with the NCIP for record and recognition 

purposes. In no case shall FPIC signatories be represented by heads of coalitions or 

organizations who lives outside of the concerned ICC; 

d) Keeps the original copy of the MOA 

Section 30. Role/Responsibilities of the NCIP - The different Offices of the NCIP at 

various levels shall be responsible as follows: 

a) The Regional Office 

1. Collects and issues official receipt to the proponent for the inspection fee for the 

conduct of FBI;

398 


2. Conducts the census or genealogical survey of the ICCs/IPs concerned; 

3. Documents the customary practices on consensus building among the affected ICCs/ 

IPs; 

4. Evaluates and coordinates the FPIC Action Plan; 

5. Facilitate registration of the authentic IPOs, Elders, Leaders and representatives of the 

families and clan; 

6. Facilitate the execution of the MOA and endorse to the Commission, through the Director 

of the Legal Affairs Office of the NCIP, for review and authority to sign as third party; 

7. Monitors the compliance of the terms and conditions stipulated in the MOA; and; 

8. Keeps certified true copy of the MOA. 

b) The ADO 

1. Evaluates and validates, if necessary, the FBI and the conduct of the FPIC process; 

2. Monitors the FBI/FPIC process; 

3. Keeps duplicate copy of the MOA; 

V. PROHIBITED ACTS AND SANCTIONS 

Section 31. Prohibited Acts - After the filing of the application and during the period 

that the application is pending, any of the following acts or omissions are hereby declared 

either acts prejudicial to the interest of the IP community in the attainment of their consent or 

is an act in circumvention of the intent of the law in requiring the free, prior and informed 

consent of ICC/IP community and are therefore prohibited: 

a) By the Applicant 

1. Employment or use of force, threat, coercion, intimidation, at any degree or in any 

manner, including those done by individuals or group of persons acting for the applicant; 

2. Bringing of firearm/s in the community during visits by the applicant or group of persons 

acting for the applicant. When needed, armed security shall be obtained from local police 

authorities or the AFP as requested by NCIP; 

3. Bribery or promise of money, privilege, benefit or reward other than what is presented 

by the applicant/proponent during the preliminary consultative meeting with the Council of 

Elders; 

4. Clandestine or surreptitious negotiations with IP individuals or members of the community 

concerned done without the knowledge of the Council of Leaders or Elders;


5. Delivery to the community or to any of its members of donations of any kind; 

b) By NCIP Officer or Employee 

1. Acceptance or receiving of gifts or money from the applicant; 

2. Consorting with the applicant or with any person connected to or mediating for the 

latter; 

3. Deliberate failure to act appropriately in complaints coming from the community 

concerning prohibited acts committed by the applicant or any of its representatives; 

4. Gross negligence or deliberate omission to perform his duty required of him by these 

guidelines in connection with his function and with his authority to perform; 

5. Acting on or performing his duty in consideration of future reward, promise of money, 

privilege or benefit from the applicant; 

c) By the IP Community or Member 

1. Solicitation of any kind from the applicant; 

2. Acceptance or receiving of gifts or money from the applicant; 

3. Consorting with the applicant or with any person connected to or mediating for the 

latter; 

4. Giving or promising to give his consent in consideration of future reward, promise of 

money, privilege or benefit from the applicant other than what has been provided for or 

explained by the applicant to the Council of Elders or Leaders during the consultation 

meetings; 

d) Other Prohibited Acts by GAs/LGUs/NGOs/& Other Groups 

Undue influence to the community, either to the members or their representatives, 

exerted by representatives of non-government organizations or representatives of government 

agencies or local government instrumentalities, including barangay officials and their 

functionaries, and those made by other entities or groups with religious affiliations, except 

those made during the consultation proceedings or meetings conducted in accordance with 

the manner and procedure as provided for in these guidelines; 

Section 32. Sanctions - Administrative sanctions shall be imposed by the Commission 

only after due notice and the parties are given the opportunity to be heard; as follows: 

a) For the Applicant 

Commission of any of the prohibited acts by or attributable to the applicant, shall be 

sufficient ground for the non-issuance of the certificate precondition by the NCIP, or if 

already issued, a ground for its revocation. The Commission may proceed against the applicant 

motu propio or upon complaint. In addition, serious violations shall be a ground for

400 


disqualification for future applications for certificate precondition within ancestral domain 

areas, without prejudice to filing of appropriate criminal action against the offender under 

IPRA or the Revised Penal Code and other special laws. The violation is considered grave 

when the commission of the prohibited act is intentional and have resulted to loss of life or 

serious damage to property of an IP member of the community, committed by means of, but 

not limited to, employment or use of force, threat, coercion, intimidation, violence, including 

those done by individuals or group of persons acting for the applicant. The imposition of 

disqualification can be lifted only upon petition by the individual or entity upon whom the 

disqualification was imposed, stating the grounds why the disqualification should be lifted. 

No such petition shall be entertained by the Commission without the favorable recommendation 

of the IP community concerned whose rights were seriously violated. 

b) For the IP Community 

The Commission shall formally call the attention of the Council of Elders/Leaders 

concerned for him to be proceeded against in accordance with their own customary laws. If 

the extent of the commission of the prohibited act would unjustly affect the outcome of the 

community consent proceedings, the said proceedings shall be suspended by the Commission 

until after the Council has shown to the Commission that they have already addressed the 

prohibited act done by wrongdoer in accordance with their customary laws. 

c) For NCIP Officer or Employee 

Prohibited acts committed by any officer or employee shall, upon finding of prima facie 

evidence, immediately divest him of his authority to be part of the proceedings upon order of 

the Chairperson of the Commission, and he/she will proceeded against administratively in 

accordance with the Civil Service Rules and Regulations on discipline, without prejudice to 

the filing of appropriate criminal charges; 

d) For GAs/LGUs/NGOs and Other Groups or Individuals 

Prohibited acts committed by any officer or employee of any GAs/LGUs or those 

committed by members of NGOs and other groups or individuals shall be censured applying 

the Commissionís subpoena and contempt powers. 

Section 33. Complaint to Censure the Person or Entity Responsible for Commission 

of Prohibited Acts; Order of Suspension - Complaint filed by any aggrieved party in the 

proceedings for the censure of the person, group of persons or entity alleging commission 

of any of the prohibited acts provided above, shall not suspend the proceedings had, except 

those acts complained of, if proven, would substantially affect the credibility and integrity of 

the outcome of the proceedings as determined by the Commission. The complaint shall be 

filed before the NCIP representative heading the field based investigation and authorized by 

these guidelines to facilitate the proceedings. It is the duty of the NCIP representative receiving 

the complaint to look into the sufficiency of the complaint by requiring the complainant to 

substantiate his complaint by supplying all the data and information needed for the appreciation 

of his complaint. His findings shall be endorsed to the Commission en banc through the 

Regional Director. The Commission en banc, after receipt of the endorsement shall immediately 

determine whether the act/s complained about would substantially affect the credibility or 

integrity of the proceedings had. If so, the Chairperson shall immediately order the suspension 

of the proceedings still had with notice to all parties concerned of the reasons for the 

suspension, and order the Regional Director to ask the complainant to formally file a petition,


in which case, the petition shall be resolved by the Commission in the manner provided for in 

the succeeding paragraph. Otherwise, no suspension of the proceedings shall be declared 

but the person or entity complained about shall be asked to explain in writing within fifteen 

(15) days from receipt thereof why he should not be censured for the prohibited acts committed. 

Section 34. Petition for Nullification of Certificate of FPIC, its Proceeding or Non- 

Issuance of Certification Precondition - The issuance of Certificate Precondition by the 

NCIP in connection with any FPIC obtained or denied by the community can be withheld 

only upon determination of the grounds raised in a petition duly filed by any party contesting 

the issuance thereof. The petition for non-issuance of the certificate precondition can be 

given due course only when the same is raised on the ground of commission of any of the 

prohibited acts as declared above or on ground of irregularity in the procedure as provided 

in these guidelines that substantially affects the interest of the parties involved. The petition 

shall be filed within the period of ten (10) days from the date of the decision of the community 

in the assembly as provided in these guidelines and before the execution of the MOA as 

required. The petition shall be resolved by the Commission within the period of thirty (30) 

days from date of filing. The procedure for the resolution of the petition shall be governed by 

the special rules that this Commission shall provide for. The Commission may either declare 

the proceedings had as a nullity and determine the appropriateness of holding another 

proceedings or declare the proceedings as already done, and/or impose the administrative 

sanctions herein provided for the commission of any of the prohibited acts. 

Section 35. Waiver of Right to FPIC; Injunction for Acts Circumventing the Purpose 

of FPIC Process - Programs, projects, plans, activities or any development assistance or 

intervention that do not involve issuance of a license, permit, agreement, authority or 

concession from any government agency, regulatory body or local government units, solicited 

by the ICC/IP community themselves from whatever sources and in any form, made through 

by the majority members of the community. The ICC/IP community is deemed to have 

waived their right to FPIC by that unilateral act of solicitation. However, in order to ensure 

that this exemption is not utilized as a mode of circumventing the law requirement on FPIC, 

NCIP shall validate the purpose of the solicitation by determining whether or not the solicitation 

made bears the approval of the majority of the council members and determine whether or 

not the same was made in accordance with the ICC/IP communityís; ADSDPP. If the solicitation 

is found to be unauthorized or if the solicitation is found to be contrary to the communityís 

ADSDPP, NCIP shall require the Council of Elders/Leaders to undergo the process of FPIC 

of the community members as provided in these guidelines. Otherwise, the Commission shall 

exercise its injunction powers upon written complaint of a majority of the members of the 

community to enjoin the conduct or continued implementation of the program, project, plan 

or any development assistance or intervention until the solicitors have complied with the 

requirement of FPIC process in order to safeguard the rights of the other members of the 

community and protect their interest. The complaint, which is required to be signed by a 

majority of the members of the community, shall be filed before the Regional Hearing Officer 

of the NCIP in the region. Its decision is appealable to the Commission en banc. The appeal 

shall be perfected within the period of ten (10) days from receipt of the decision. 

VI. FINAL PROVISIONS 

Section 36. Applicability to Pending Applications - This guidelines shall apply to all 

pending applications for issuance of Certification Precondition and Issuance of Certificate 

of Free, Prior and Informed Consent by the IP/ICC.

402 


Section 37. Separability Clause - In case any clause, section, sentence, or provision 

of this Administrative Order or any portion hereof is held or declared unconstitutional or 

invalid by a competent Court, the other sections or portions hereof which are not affected 

thereby shall continue to be in full force and effect. 

Section 38. Repealing Clause - This Administrative Order repeals NCIP AO-03, Series 

of 1998. The provisions of other Circulars, Memoranda, Administrative Orders, issued by 

this Commission, inconsistent herewith or contrary to the provisions hereof are hereby 

repealed or modified accordingly. 

Section 39. Effectivity - This Administrative Order shall take effect fifteen (15) days 

from its registration in the Office of the National Administrative Register, U.P. Law Center, 

Diliman, Quezon City, Philippines 


APPROVED: 

(SGD.) CORAZON M. ESPINO (SGD.) NORMA MAPANSA-GONOS 


(SGD.) LAGTUM A. PASAG (SGD.) EDTAMI P. MANSAYAGAN 


(SGD.) REUBEN D.A. LINGATING (SGD.) PABLO SANTOS 


(SGD.) EVELYN S. DUNUAN 

Chairperson 

NATIONAL HISTORICAL INSTITUTE 


RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 8491, 

Series of 1998, THE CODE OF THE NATIONAL FLAG, ANTHEM, 

MOTTO, COAT-OF-ARMS AND OTHER HERALDIC ITEMS 

AND DEVICES OF THE PHILIPPINES 

RULE 1 

General Provisions 

Section 1. Title - These rules shall be known, cited and referred to as the ìRULES 

AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 8491, Series of 1998, THE 

CODE OF THE NATIONAL FLAG, ANTHEM, MOTTO, COAT-OF-ARMS AND OTHER 

HERALDIC ITEMS AND DEVICES OF THE PHILIPPINESî, hereinafter called the ìRulesî.


Section 2. Declaration of Policy and Objectives ñ It is the policy of the State to herein 

prescribe the Code of the National Flag, Anthem, Motto, Coat-of-Arms and other Heraldic 

Items and Devices of the Philippines, ensure the promotion and implementation of its 

corresponding rules and regulations, and adopt effective administrative, regulatory, coordinative 

and supervisory programs and activities, where appropriate, in conformity with national 

government policies. Further, reverence and respect shall at all times be accorded to the 

flag, anthem, and other national symbols which embody the national ideals and traditions and 

which express the principles of sovereignty and national solidarity. 

Section 3. Scope of Application ñ These Rules shall apply to individuals, public and 

private entities, military and police agencies, and other branches and/or instrumentalities of 

the national and local government including government-owned and/or controlled corporations, 

and shall also be observed in and within the entire territory of the Philippines as such is 

defined in the Constitution and laws of the Republic of the Philippines. 

Section 4. Interpretation ñ In the interpretation of the provisions of Republic Act No. 

8491, Series of 1998, The Flag and Heraldic Code of the Philippines, hereinafter called R.A. 

No. 8491, and of these Rules, that interpretation which will promote or sustain reverence and 

respect for the flag, the anthem, and other national symbols, all of which embody national 

ideals and tradition, shall be given paramount consideration. 

RULE 2 

The Implementing Agency 

Section 5. The Implementing Agency ñ the National Historical Institute, hereinafter 

referred to as the Institute, shall be the agency tasked to implement these Rules. 

Section 6. Scope of Powers and Functions ñ the Institute shall perform planning, 

monitoring, coordinating, implementing, and policy-formulating functions, wherever and 

whenever appropriate, and, in the process, exercise administrative, regulatory, and supervisory 

authority over the implementation of the provisions of R.A. No. 8491 within the Philippine 

territorial limits, and in conformity with national government policies. Such powers and functions 

shall include the following: 

a. Formulate, coordinate and regulate the implementation of the Code of the National Flag, 

Anthem, Motto, Coat-of-Arms and other Heraldic Items and Devices of the Philippines, 

consistent with the purposes and objectives of R.A. No. 8491; 

b. Plan, prepare and coordinate effective educational and information dissemination strategies 

which shall increase the level of national awareness of these Rules and other implementing 

details that may subsequently be formulated; 

c. Coordinate and monitor the implementation of these Rules and ensure the compliance of 

all the provisions stipulated under R.A. No. 8491; and deputize, assign and/or designate 

government agencies, non government organizations, major branches and units of the 

Armed Forces of the Philippines and the Philippine National Police, and other groups or 

individuals for the purpose of implementing, monitoring and coordinating tasks; 

d. Set policies and procedures concerning the concept and design/visual interpretation of 

the national motto, coat-of-arms, seals of various local government units (town/city/province)

404 


and other government instrumentalities, medallions, awards and other forms and devices 

of national recognition, and strict enforcement thereof; 

e. Formulate and devise appropriate legal procedures, assistance and coordinating systems 

for cases arising from the violations of R.A. No. 8491, including appropriate integration of 

this law into the Shariía Courts; and 

f. Perform other related functions required to achieve the objectives of R.A. No. 8491 and 

these Rules. 

Section 7. Definition of Terms ñ Whenever used in these Rules, the term: 

a. ìMilitaryî shall mean all branches of the Armed Forces of the Philippines including the 

Philippine National Police, the Bureau of Jail Management and Penology, and the Bureau 

of Fire Protection; 

b. ìFestoonî shall mean to hang in a curved shape between two points as a decoration; 

c. ìNational Flagî shall mean the National Flag and Ensign of the Philippines, unless stated 

otherwise, used on land and sea by public, private and the military and shall refer to the 

flag or any other design that so resembles it as likely to cause any person to believe that it 

is the flag or design stated, expressed or provided in the Constitution of the Philippines, 

R.A. No. 8491 and these Rules; 

d. ìFlyî shall mean the part of the flag outside the hoist or length; 

e. ìHoistî shall mean the sleeve or heading; part of the flag nearest the staff or the canvass 

to which the halyard is attached; 

f. ìSymbolî shall mean any conventional sign which reveals manís achievement and heroism 

(for orders and decorations), identification, authority and a sign of dignity (for coat-ofarms, 

logo and insignia); 

g. ìHalf-mastî shall mean lowering the flag to one-half the distance between the top and 

bottom of the pole; 

h. ìHalyardî shall mean the long rope where the flag fastens and which runs up the length of 

the flag pole; 

i. ìInclement Weatherî shall mean that a typhoon signal is raised in the locality; 

j. ìNational Anthemî shall mean the ìLupang Hinirangî, the Philippine National Anthem; 

k. ìOfficial Residencesî shall mean MalacaÒang, and other government-owned structures 

where the President resides, and other structures occupied by the Philippine Consulate 

or Embassies abroad; 

l. ìPlaces of Frivolityî shall mean places of hilarity marked by or providing boisterous 

merriment or recreation;


m. ìAdvertisement or Infomercialî shall mean advertisement or any information material in 

print, radio, television, cinema, video and the like, outdoor and electronic media, seeking 

to promote individuals, entities, products or services for commercial, political purposes or 

information campaigns; 

n. ìHeraldic Items and Devicesî shall mean coat-of-arms, seals, logos, insignia, badges, 

flashes, patches, orders and decorations, medals, stars, citations, lapel pins, trophies, 

dry, wax or wet seals, and imprints on letterheads, envelopes and cards; 

o. ìGovernment Entitiesî shall mean all branches of the government, its bureaus and attached 

agencies, constitutional offices, local government offices, government-owned and/or 

controlled corporations, government financial institutions, state universities and colleges, 

Armed Forces of the Philippines including its basic component units; and 

p. ìVexillary Itemsî shall mean national, local, house flags, or administrative, institution, 

corporate, unit and other organizationís banners. 

A. Design of the National Flag 

RULE 3 

CHAPTER I - The National Flag 

Section 8. The National Flag shall be blue, white and red with an eight-rayed goldenyellow 

sun and three stars that are five-pointed, as consecrated and honored by the people. 

B. Hoisting and Display of the National Flag 

Section 9. The National Flag shall be displayed in all public buildings, official residences, 

public plazas, and institutions of learning everyday throughout the year. 

Section 10. The National Flag shall be permanently hoisted, day and night, throughout 

the year, infront of the following: at MalacaÒang Palace; Congress of the Philippines building; 

Supreme Court building; Rizal Monument in Luneta, Manila; Bonifacio Monument in Kalookan 

City; Emilio Aguinaldo Shrine in Kawit, Cavite; Barasoain Church Historical Landmark in 

Malolos, Bulacan; Marcela Agoncillo Historical Landmark in Taal, Batangas; Tomb of the 

Unknown Soldier, Libingan ng mga Bayani, Makati City; Mausoleo de los Veteranos de la 

Revolucion, North Cemetery, Manila; all International Ports of Entry and all other places as 

may be designated by the Institute. 

The National Flag of these sites shall be properly illuminated at night. 

Section 11. The National Flag shall also be displayed in private buildings and residences 

or raised in the open flag-staffs in front of said buildings every April 9 (Araw ng Kagitingan); 

May 1 (Labor Day); (National Flag Days) from May 28 to June 12 (Independence Day); last 

Sunday of August (National Heroes Day); November 30 (Bonifacio Day); and December 30 

(Rizal Day); and on such other days as may be declared or approved by the President and/ 

or local chief executives. 

The National Flag may also be raised and displayed at sunrise and lowered at sunset 

and throughout the year in the open flagstaff in front of private buildings: Provided, that 

proper flag ceremonies be observed in accordance with these Rules.

406 


Section 12. All Government Entities should observe flag days with appropriate 

ceremonies. Socio-civic groups, non-government organizations and the private sector are 

enjoined to observe and cooperate in making the celebration a success. 

Section 13. The National Flag shall be flown on all naval vessels and on merchant ships 

of Philippine registry, of more than one thousand (1,000) gross tons. 

Military, civil or state vessels should fly the National Flag. Pleasure, merchant, fishing 

boats or yachts are also encouraged to fly the National Flag. 

On board vessels of Philippine registry, the National Flag shall be displayed on the 

flagstaff at the stern when the vessel is at anchor. The National Flag shall be hoisted to the 

gaff at the aftermast when the vessel is at sea. 

Section 14. On all aircraft of Philippine registry, the National Flag shall be prominently 

displayed horizontally on its fuselage at the head portion with the hoist side pointing the 

forward direction. 

Section 15. The National Flag, if flown from a flagpole, shall have its blue field on top in 

time of peace and the red field on top in time of war; if in a hanging position, the blue field 

shall be to the left (observerís point of view) in time of peace, and the red field to the left 

(observerís point of view) in time of war. 

The National Flag could be knotted to signal that assistance is badly needed. 

Section 16. If planted on the ground, the flagpole shall be at a prominent place and 

shall be of such height as would give the National Flag commanding position in relation to the 

buildings in the vicinity. The flagpole must not be of equal height or higher than the Independence 

Flagpole at the Rizal Park, Manila. 

The flagpole that is planted on the ground must be straight and slightly tapering at the 

top. The minimum length of the National Flag is one-fourth (1/4) the height of the flagpole, 

while maximum length of the National Flag is one-third (1/3) the height of the flagpole. 

Section 17. When the National Flag is flown with flag or flags of other countries, the 

flags must be of equal size and on separate staffs of the same height. The National Flag shall 

be hoisted first and lowered last. 

When displayed in a semi-circle of flags with other countries or house flags, the National 

Flag should be at the center. 

When displayed in a circle of flags with other countries or house flags, the National 

Flag should be flown on the flagpole facing the main road (point of reference ñ KM 0 Rizal 

Park, Manila); or in front of a monument; or the main entrance of the building. The flags of 

other countries or house flags should be arranged counter clockwise in alphabetical order, 

by precedence or by protocol. 

Section 18. When displayed in a row or in a parade with flags of other countries, the 

National Flag shall be on the left (observerís point of view) of the other flags. The flags of 

other countries or house flags should be arranged in alphabetical order from left to right.


When displayed in a row of house flags, the National Flag shall be in front of the center 

of the line or on the left (observerís point of view) of the row. The house flags should be 

arranged in alphabetical order, by precedence or by protocol order from left to right (the 

observerís point of view). 

When in a parade with house flags, the National Flag shall be in front of the center of 

the first line. The house flags should be arranged in alphabetical order, by precedence or by 

protocol order from left to right (the observerís point of view). 

During special occasions, if there is only one flagpole, the house flag may be flown at 

the same halyard with the National Flag but below the latter and it cannot be bigger than the 

National Flag. 

Section 19. A worn-out National Flag should not be thrown away. It should be solemnly 

burned to avoid misuse or desecration. The National Flag shall be replaced immediately 

when it begins to show signs of wear and tear. 

Section 20. The National Flag shall be raised at sunrise and lowered at sunset. It shall 

be on the mast at the start of official school and office hours and shall remain flying throughout 

the day. 

The National Flag shall not be raised when the weather is inclement. If already raised, 

the National Flag shall not be lowered for the whole day. 

Section 21. The National Flag may be displayed: 

a. Inside and/or outside a building, on stationary or movable flagpole. If the National Flag is 

displayed indoors on a flagpole, it shall be placed at the left of the observer as one enters 

the room; 

b. From the top of a flagpole, which shall be at a prominent place or a commanding position 

in relation to the surrounding buildings; 

c. From a staff projecting upward from the window sill, roof, canopy, balcony or faÁade of a 

building; 

d. In a suspended position from a rope extending from a building to a pole erected away 

from the building; 

e. Flat against the wall vertically with the sun and stars on top; 

f. Hanging vertically in the middle of the two-way traffic road, the blue field should be 

pointing east, if the road is heading south or north and if the road is heading east or west 

the blue field should be pointing north; and 

g. Hanging vertically at the sides or middle of the one-way traffic road, the blue field should 

be at the left of the observer. 

Section 22. The National Flag shall be hoisted to the top briskly and lowered 

ceremoniously.

408 


The National Flag must be properly folded before hanging for the start of the ceremony. 

It shall not be left hanging at the base of the flagpole while waiting for the ceremony. 

The National Flag shall never touch anything beneath it, such as the base of the pole, 

ground or other object. 

After being lowered, the National Flag shall be handled and folded solemnly as part of 

the ceremony. 

C. Conduct of Flag Raising and Lowering Ceremonies 

Section 23. All government offices, including national or local government units and 

institutions, shall henceforth observe the flag raising ceremony every Monday morning and 

the flag lowering ceremony every Friday afternoon. 

These include private establishments who fly the National Flag on the flagpole in their 

compound. 

Primary and secondary schools and other institutions of learning shall observe the flag 

ceremony as ordered by the Department of Education, Culture and Sports and/or the 

Commission on Higher Education. 

Section 24. The observance of the flag ceremony shall be simple and dignified. 

Section 25. During the flag ceremony, the assembly shall stand in formation facing the 

National Flag. At the moment the first note of the National Anthem is heard, everyone in the 

premises shall come to attention; moving vehicles shall stop. All persons present shall place 

their palms over their chest, those with hats shall uncover, while those in military, scouting, 

security guard, and citizens military training uniforms shall give the salute prescribed by 

their regulations, which salute shall be completed upon the last note of the anthem. 

The same procedure shall be observed when the National Flag is passing in review or 

in parade. 

Section 26. During the flag lowering, the National Flag shall be lowered solemnly and 

slowly so that the flag shall be down the mast at the sound of the last note of the National 

Anthem. Those in the assembly shall observe the same deportment or shall observe the same 

behavior as for the flag raising ceremony. 

D. Half-Mast 

Section 27. The National Flag shall be flown at half mast- as a sign of mourning on all 

the buildings and places where it is displayed, as provided, on the day of the official 

announcement of the death of any of the following officials: 

a. The President or a former President, for ten (10) days; 

b. The Vice-President, the Chief Justice of the Supreme Court, the President of the Senate 

and the Speaker of the House of Representatives, for seven (7) days;


c. Cabinet Secretaries, Associate Justices of the Supreme Court, Members of the Senate 

and House of Representatives, the Chief of Staff of the Armed Forces of the Philippines 

and the Director-General of the Philippine National Police, for five (5) days; 

d. Heads of National Government Agencies, including Government Owned and Controlled 

Corporations and Government Financial Institutions, for three (3) days; 

e. The Commanding Generals of the Philippine Air Force and the Philippine Army and the 

Flag Officer in Command of the Philippine Navy, for three (3) days; 

f. Governors, Vice-Governors, city and municipal Mayors, city and municipal Vice-Mayors, 

for three (3) days; 

g. Members of the Sangguniang Panlalawigan, Sangguniang Panglungsod and Sangguniang 

Bayan, on the day of interment; 

h. Barangay Chairmen and the Barangay Councilmen on the day of interment; 

i. Former National or Local Government Officials, appointive or elective, other than those 

specified above, on the day of interment, within their former respective territorial jurisdictions 

and by resolution of their respective Sanggunians; 

j. Regional Directors, Superintendents, Supervisors, Principals, Teachers and other school 

officials, on the day of interment and by order of the proper school authorities concerned; 

k. Recipients of national orders and decorations, on the day of interment and by order of the 

President or the Congress; and 

l. Other persons to be determined by the Institute, for a period of less than seven (7) days. 

In case ìcî to ìeî the National Flag shall be flown at half-mast in front of the building 

where the deceased official is holding office and in cases ìfî to ìhî through Sanggunian 

Resolution or by order of the Local Chief Executive. 

The National Flag, when flown at half-mast, shall be first hoisted to the peak for a 

moment then lowered to the half-mast position. The National Flag shall again be raised to the 

peak before it is lowered for the day. 

The National Flag shall also be flown at half-mast during calamities/tragedies of national 

or international significance as ordered by the Office of the President. 

The National Flag shall be permanently hoisted at half-mast day and night throughout 

the year at the Tomb of the Unknown Soldier, Libingan ng mga Bayani, Fort Bonifacio, 

Makati City; Mausoleo de los Veteranos de la Revolucion, North Cemetery, Manila; and in all 

memorial cemeteries dedicated to war veterans. The National Flag of these declared sites 

shall be properly illuminated at night. 

E. Casket

410 


Section 28. The National Flag may be used to cover the caskets of the honored dead of 

the military, veterans of previous wars, National Artists, and of civilians who have rendered 

distinguished service to the nation, as may be determined by the local government unit 

concerned. In such cases, the National Flag shall be placed such that the white triangle shall 

be at the head and the blue portion shall cover the right inside of the casket. The National 

Flag shall not be lowered to the grave or allowed to touch the ground, but shall be folded 

solemnly and handled over to the heirs of the deceased or next of kin. 

No object must be put on top of the National Flag, except for religious objects that 

symbolize ìGod above Countryî. 

F. Pledge to the National Flag 

Section 29. The following shall be the Pledge of Allegiance to the National Flag: 

Ako ay Pilipino 

Buong katapatang nanunumpa 

Sa watawat ng Pilipinas 

At sa bansang kanyang sinasagisag 

Na may dangal, katarungan at kalayaan 

Na pinakikilos ng sambayanang 

Maka-Diyos 

Maka-tao 

Makakalikasan at 

Makabansa. 

Such pledge shall be recited right after the singing of the National Anthem, the throng 

standing with the right palm open, raised shoulder high. Individuals whose faith or religious 

beliefs prohibit them from making such pledge must nonetheless show full respect by standing 

at attention. 

G. National Flag Days 

Section 30. The period from May 28 to June 12 of each year is declared as National 

Flag Days, during which period all offices, agencies and instrumentalities of the government, 

business establishments, institutions of learning, private buildings and homes are enjoined to 

display the National Flag. 

Section 31. The government offices and local government units concerned shall display 

the National Flag on main thoroughfares, parks, plazas, and other public places. 

H. Specifications of the National Flag 

Section 32. The National Flag shall have the following proportions: The width of the 

National Flag, 1, and the length, 2. All the sides of the white triangle, 1. 

Section 33. The technical specifications shall be as follows: 

The blue color shall bear Cable No. 80173; the white color, Cable No. 80001; the red 

color, Cable No. 80108; and the golden yellow, Cable No .80068.


The assigned cable numbers are listed in the Tenth Edition of the Standards Color 

Reference of America, created and issued by the Color Association of the United States, 

NO. 343 Lexington Avenue, New York, New York, 10016, Series, 1981. 

Section 34. In order to establish uniform criteria in the making of our National Flag and 

to guarantee its durability by the use of quality materials, the following standards and procedures 

shall be observed: 

a. All requisitions for the purchase of the National Flag must be based on strict compliance 

with the design, color, craftsmanship and material requirements of the Government; 

b. The manufacturer shall send annually one meter for each color (blue, red, white and 

golden-yellow including canvas) of textile material to the Industrial Technology Development 

Institute (ITDI) or the Philippines Textile Research Institute (PTRI) of the Department of 

Science and Technology (DOST) for evaluation. The PTRI/ITDI shall evaluate the quality 

and serviceability of the said textile material; 

c. Flag manufacturers shall apply for annual accreditation at the Institute. Together with their 

application, they will submit the PTRI/ITDI laboratory test results, copy of business license, 

permit, company profile and other pertinent documents; and 

d. All submitted sample/s of the National Flag by accredited suppliers offered for purchase 

for government use shall be evaluated as to design, color, materials and craftsmanship 

specifications by the Institute, through its Heraldry and Display Section, which shall stamp 

its approval or disapproval on the canvas reinforcement of the National Flag sample 

submitted. The National Flag sample/s shall be sent to the Institute by the requisitioning 

office and not by the flag supplier. 

e. Section 35. All deliveries of the National Flags requisitioned by the government entities 

shall be inspected by the requisitioning officeís internal inspector and by the Commission 

on Audit (COA) using the National Flag stamped ìAPPROVEDî by the Institute as reference. 

The internal inspector of the requisitioning office and the COA, in case of confusion, 

may send another sample of the National Flag picked at random from the delivered flags for 

re-evaluation by the Institute. 

Section 36. For effective information dissemination, all accredited manufacturers are 

required to inform all flag consumers of the provisions of these Rules. 

Section 37. All government entities shall ensure that the requirements under R.A. No. 

8491 and these Rules, with respect to the standard requisitions and deliveries of the National 

Flags are strictly complied with. 

Section 38. All departments, agencies, offices, and instrumentalities of the government. 

Government-owned or controlled corporations, local government units, including barangays, 

shall include in their annual budgets the necessary outlay for the purchase of the National 

Flag. 

I. Prohibited Acts

412 


Section 39. It shall be prohibited: 

a. To mutilate, deface, defile, trample on, cast contempt, or commit any act or omission 

casting dishonor or ridicule upon the National Flag or over its surface; 

b. To dip the National Flag to any person or object by way of compliment or salute; 

c. To use the National Flag; 

1. As drapery, festoon, tablecloth; 

2. As covering for ceilings, walls, statues or other objects; 

3. As a pennant in the hood, side, back and top of motor vehicles; 

4. As a staff or whip; 

5. For unveiling monuments or statues; and 

6. As trademarks, or for industrial, commercial or agricultural labels or designs. 

d. To display the National Flag: 

1. Under any painting or picture; 

2. Horizontally. It shall always be hoisted aloft and be allowed to fall freely; 

3. Below any platform; or 

4. In discotheques, cockpits, night and day clubs, casinos, gambling joints and places 

of vice or where frivolity prevails. 

e. To wear the National Flag in whole or in part as a costume or uniform; 

f. To add any word, figure, mark, picture, design, drawings, advertisement, or imprint of any 

nature on the National Flag; 

g. To print, paint or attach representation of the National Flag on handkerchiefs, napkins, 

cushions, and articles of merchandise; 

h. To display in public any foreign flag, except in embassies and other diplomatic 

establishments, and in offices of international organizations; 

i. To use or display or be part of any advertisement or infomercial; and 

j. To display the National Flag in front of buildings or offices occupied by aliens. 

RULE 4 

CHAPTER II - The National Anthem 

Section 40. The National Anthem is entitled Lupang Hinirang. 

Section 41. The National Anthem shall always be sung in the national language within 

or outside the country. The following shall be the lyrics of the National Anthem:


Bayang Magiliw 

Perlas ng Silanganan 

Alab ng Puso 

Sa Dibdib moíy buhay. 

Lupang Hinirang 

Duyan ka ng magiting, 

Sa manlulupig 

Di ka pasisiil. 

Sa dagat at bundok, 

Sa simoy at sa langit mong bughaw, 

May dilag ang tula 

At awit sa paglayang minamahal. 

Ang kislap ng watawat moíy 

Tagumpay na nagniningning 

Ang bituin at araw niya, 

Kailan pa maíy di magdidilim. 

Lupa ng araw, ng luwalhatiít pagsinta, 

Buhay ay langit sa piling mo; 

Aming ligaya na pag may mang-aapi, 

Ang mamatay nang dahil sa iyo. 

Section 42. The rendition of the National Anthem, whether played or sung, shall be in 

accordance with the musical arrangement and composition of Julian Felipe and in accordance 

with its original Filipino lyrics and march tempo that was adopted under Department Order 

No. 5 dated May 26, 1956 covered by Circular No. 21 dated June 22, 1956 and Executive 

Order No. 60 dated December 19, 1963. 

B. Conduct In Relation to the National Anthem 

Section 43. When the National Anthem is played at a public gathering, whether by a 

band or by singing or both, or reproduced by any means, the attending public shall sing the 

anthem. The singing must be done with fervor. 

As a sign of respect, all persons shall stand at attention and face the National Flag, if 

there is one displayed, and if there is none, they shall face the band or the conductor. At the 

first note, all persons shall execute a salute by placing their right palms over their chests. 

Those in military, scouting, citizenís military training and security guard uniforms shall give 

the salute prescribed by their regulations. The salute shall be completed upon the last note of 

the National Anthem. 

When the National Anthem is to be played or sung with the Anthem of any other 

country, the National Anthem shall be sung first. 

The National Anthem shall not be played or sung for mere recreation, amusement or 

entertainment purposes except on the following occasions: 

a. International competitions where the Philippines is the host or has a representative; 

b. National or local competitions;

414 


c. During the ìsigning offî and ìsigning onî of radio broadcasting and television stations; 

d. Before the initial and last screening of films or before the opening of theater performances; 

e. Civic activities, cultural shows or presentations; and 

f. Other occasions as may be allowed by the Institute. 

Section 44. All officials and employees of the national and local governments, and any 

agencies or instrumentalities thereof, including government-owned or controlled corporations, 

institutions of learning, and privately-owned entities or offices displaying the National Flag 

are hereby directed to comply strictly with the rules prescribed for the rendition of the 

National Anthem. 

RULE 5 

CHAPTER III - The National Motto 

Section 45. The National Motto shall be ìMAKA-DIYOS, MAKA-TAO, 

MAKAKALIKASAN AT MAKABANSA.î 

RULE 6 

CHAPTER IV - National Coat-of-Arms 

Section 46. The National Coat-of-Arms shall have: 

Paleways of two (2) pieces, azure and gules; a chief argent studded with three (3) 

mullets equidistant from each other; and, in point of honor, ovoid argent over all the sun 

rayonnant with eight minor and lesser rays. Beneath shall be the scroll with the words 

ìREPUBLIKA NG PILIPINAS,î inscribed thereon. 

RULE 7 

CHAPTER V - The Great Seal 

Section 47. The Great Seal shall be circular in form, with the arms as described in the 

preceding section, but without the scroll and the inscription ìRepublika ng Pilipinasî thereon. 

Surrounding the whole shall be a double marginal circle within which shall appear the words 

ìRepublika ng Pilipinas.î 

The Great Seal shall bear the National Motto. 

Section 48. The Great Seal shall be affixed to or placed upon all commissions signed 

by the President and upon such other official documents and papers of the Republic of the 

Philippines as may be provided by law, or as may be required by custom and usage. The 

President shall have custody of the Great Seal. 

RULE 8 

CHAPTER VI - Official Seals and Other Heraldic Items and Devices 

Section 49. Any branch of the government, whether national or local, governmentowned 

or controlled corporations, state colleges and universities, including the military, may


adopt appropriate coat-of-arms, seal, logo, insignia, badge, patches, banners and initiate 

awards, trophies, citations, orders or decorations, as may be authorized by the Office of the 

President or by Congress. 

Section 50. These heraldic devices and items shall be filed with the Institute for recording 

and evaluation as to precedence, design, customs and traditions. 

The application for approval of design and specification of the proposed heraldic items 

and devices shall be supported with the following documents: 

a. Orders, or any forms of grants, laws of authority or creations; 

b. Brief historical background, symbolism, and significance of every design component; 

and 

c. Photographs of existing structures, objects, spots, etc. to be incorporated in the design. 

The Institute shall recommend such heraldic design together with the needed documents 

to the Office of the President or Congress for final approval. 

The approved design shall be returned to the Institute for proper recording in the 

National Registry of Heraldic Items and Devices and for transmittal to the requesting government 

entity. 

Section 51. To conform to the basic heraldic traditions, the following shall be observed 

in the design, creation, modification, revision and approval of heraldic items and devices; 

a. It may feature either abstract or natural emblems/visuals, representing significant aspects, 

or events representative or related to its history, mandates , duties, functions and visions. 

b. Components of heraldic designs must feature indigenous Filipino culture, values, history, 

traditions and sense of nationalism; 

c. Every component must be recognizable as if it is rendered or reduced to its normal 

required sizes; 

d. No personal heraldic devices shall be allowed except the Seal of the President and the 

Vice-President; 

e. Symbols, names, initials, logos, pictures, silhouettes or images of living persons shall not 

be featured in the design; 

f. The name of the government entity or title of heraldic items and devices must be in 

prominent position; 

g. All heraldic items and devices, including ribbons or sashes, must be unique from each 

other; 

h. The National Coat-of ñArms, which may or may not include the scroll, when used as the 

main part or as a component of the seal, must occupy the place of honor. It shall be used 

only by the major branches of the government;

416 


i. In using the National Coat-of-Arms or the Great Seal for numismatic purposes, wet or dry 

seals and painted or printed in monochrome, tincture representations shall be used; 

j. The use of the National Flag is prohibited except where the flag has become part of its 

history; 

k. The motto, title or phrase to be incorporated in the heraldic items and devices may be in 

the national language or in any local dialect; and 

l. These heraldic items and devices shall not be revised or changed more than once every 

ten (10) years. 

Section 52. All government entities including the military are hereby ordered to purchase 

all Heraldic Items and Devices from manufacturers accredited and authorized by the Institute. 

Section 53. Engravers or manufacturers shall apply for annual accreditation at the 

Institute. Together with their application, they will also submit copies of business license, 

permit, company profile with list of Heraldic Items and Devices they made for the year and 

other pertinent documents. 

Such items and devices shall be subject to inspection by the purchasing agencyís 

internal inspector and the COA representative using the design and specifications approved 

by the Office of the President or by Congress, through the Institute. 

Any violation of R.A. No. 8491 or these Rules shall be a ground for suspension, revocation 

or non-renewal of accreditation. 

Section 54. No government official or employee shall accept any orders or decorations 

from any foreign government without the consent of Congress, and without the prior evaluation 

and documentation of such order or decoration by the Institute. 

Section 55. Heraldic and Vexillary designs and/or items, including the National Motto, 

National Anthem and Pledge of Allegiance to the National Flag shall not be used or employed 

for numismatic, philatelic, advertisement and/or any informative purposes unless duly approved 

in writing by the Institute, through its Heraldry and Display Section. 

RULE 9 

CHAPTER VII - Penalties 

Section 56. Failure or refusal to observe the provisions of R.A. No. 8491, and/or any 

violation of these Rules shall, after proper notice and hearing, be penalized as stipulated in 

R.A. No. 8491. 

RULE 10 

CHAPTER VIII - Effectivity 

Section 57. Effectivity ñ These Rules shall be effective fifteen (15) days after the 

approval of the Office of the President and filing with Congress of the Philippines and the 

University of the Philippines Law Center.


RULE 11 

CHAPTER IX - Amendment of Rules 

Section 58. Amendments ñ The Chairman and Executive Director shall have the authority 

to amend, revise, repeal, or otherwise modify these RULES or any provision thereof, as may 

be deemed necessary to achieve the objectives of R.A. No. 8491 and these Rules. 


Recommending Approval: Approved by Authority of the President: 

(SGD.) PABLO S. TRILLANA III (SGD.) ALBERTO G. ROMULO 

Chairman and Executive Director Executive Secretary 

NATIONAL IRRIGATION ADMINISTRATION 



Annotation of Unpaid Irrigation Service Fee as Preferred 

Lien on the OCT/TCT of Delinquent Farmer-Beneficiary 

Pursuant to Section 1 of Presidential Decree 552 amending Section 2 (b) of Republic 

Act 3601 providing for the annotation of unpaid Irrigation Service Fee (ISF) as preferred 

liens on the land benefited or on the crops raised thereon, in relation to National Land Titles 

and Deeds Registration Authority (NALTDRA) Circular No. 93 dated December 2, 1986 

directing Register of Deeds (RD) to annotate the Certificate of Title of the Delinquent Farmer- 

Beneficiary (DFB) as preferred lien in favor of National Irrigation Administration (NIA), the 

unpaid ISF upon presentation of a Petition for Registration and Annotation of Lien on Original 

Certificate of Title/Transfer Certificate of Title (OCT/TCT) and after all legal registration 

requirements are complied with, and recognizing this process as an effective means of 

collecting ISF back accounts, the following directives are hereby issued: 

1. Irrigation System Office/Provincial Irrigation Office (ISO/PIO) 

1.1 All ISO/PIO with ISF back accounts shall file with the concerned Register of Deeds (RD) 

a petition for annotation against the DFB. 

1.2 That as a preparatory step to and as required in the filing of the petition, all ISO/PIO are 

directed to prepare a list of delinquent farmer-beneficiary and update their statements of 

account. They shall likewise coordinate with the respective RD of the province/city where 

the land affected is/are covered to secure certified true copies of OCT/TCT of DFB or 

research on the following: (a) OCT/TCT number, (b) name of registered owner, (c) lot 

number, (d) location and area of the land sought to be affected by the lien.

418 


1.3 After the list of DFB have been firmed up and their statements of account updated, ISO/ 

PIO shall then issue the first demand letter (DL) to be served to the DFB. 

1.4 If the DFB failed to pay his/her obligation after the first DL, ISO/PIO shall then serve the 

second DL. If after receipt of the second DL, the DFB fails or refuses to pay his/her 

obligation, ISO/PIO shall then issue the third and final DL. 

1.5 If despite receipt of the third and final DL, DFB still fails or refuses to settle his/her 

obligation, ISO/PIO shall prepare and file the petition with annexes with the concerned 

RD, for the annotation of the ISF back account in his/her OCT/TCT. 

1.6 That service of the three (3) DLs shall be by personal delivery or thru registered mail with 

return card. 

2. Regional Office (RO) 

2.1 It shall on coordination with ISO, prepare information dissemination program and undertake 

extensive information dissemination on the above subject and encourage participation of 

the irrigatorís association in this endeavor. 

2.2 Shall monitor the implementation of this MC, and submit an annual progress report to 

Central Office (CO). 

3. Attached to this MC are the pro-forma petition and 3 DLs to be used for this purpose. 



(SGD.) JESUS EMMANUEL M. PARAS 

Administrator 

NATIONAL LABOR RELATIONS COMMISSION 


Resolution No. 01-02, s. 2002 

Amending Certain Provisions of the New Rules of 

Procedure of the National Labor Relations Commission 

Pursuant to the provisions of Article 218 of Presidential Decree No. 442, otherwise 

known as the Labor Code of the Philippines, as amended, the National Labor Relations 

Commission, sitting en-banc, RESOLVED TO ADOPT AND PROMULGATE, as it hereby 

adopts and promulgate, the following amendments to the NEW RULES OF PROCEDURE OF 

THE NATIONAL LABOR RELATIONS COMMISSION:


1. Sections 1, 2, and 3 of Rule I are hereby amended to read as follows: 

SECTION 1. TITLE OF THE RULES. These Rules shall be known as the Rules 

of Procedure of the National Labor Relations Commission. 

SECTION 2. CONSTRUCTION. These Rules shall be liberally construed to 

carry out the objectives of the Constitution, the Labor Code of the Philippines and 

OTHER RELEVANT LEGISLATIONS, and to assist the parties in obtaining just, 

expeditious and inexpensive settlement of labor disputes. 

SECTION 3. SUPPLETORY APPLICATION OF RULES OF COURT. In the 

absence of any applicable provision in these Rules, and in order to effectuate the 

objectives of the Labor Code, the pertinent provisions of the Revised Rules of 

Court of the Philippines may, in the interest of expeditious labor justice and 

whenever practicable and convenient, be applied by analogy or in a suppletory 

character and effect. 

2. The last paragraph of Section 1, Rule II is hereby amended to read as follows: 

As used herein, ìRegional Arbitration Branchî shall mean any of the regional 

arbitration branches, OR sub-regional branches of the Commission. 

3. The title of Rule III is hereby amended to read as follows: 

RULE III - PLEADINGS, NOTICES AND APPEARANCES 

4. Sections 1, 2, 3, 4, 5, 6, 7 and 8 of Rule III are hereby renumbered as Sections 2, 3, 4, 5, 

6, 7, 8 and 9 respectively, and the new Section 1 shall read as follows: 

SECTION 1. COMPLAINT. a) COMPLAINT IS A PLEADING ALLEGING THE 

CAUSE OR CAUSES OF ACTION OF COMPLAINANT/PETITIONER. THE NAMES 

OF RESPONDENTS MUST BE STATED IN THE COMPLAINT. IT SHALL BE 

SIGNED UNDER OATH BY THE COMPLAINANT/PETITIONER, WITH A 

DECLARATION OF NON-FORUM SHOPPING. 

b) A party having more than one cause of action against the other party, 

arising out of the same relationship, shall INCLUDE all of them in one complaint 

or petition. 

FOR THIS PURPOSE, THE COMPLAINT FORM DULY APPROVED BY THE 

COMMISSION SHALL PREFERABLY BE USED FOR EXPEDIENCY. 

5. Section 1 of Rule III is hereby amended to read as follows: 

SECTION 2. CAPTION AND TITLE. In all cases filed WITH the Commission 

or WITH any of its Regional Arbitration Branches, the party initiating the action 

shall be called the ìComplainantî or ìPetitionerî, and the opposing party the 

ìRespondentî.

420 


The full names of all the real parties in interest, whether natural or Juridical 

persons or entities authorized by law, shall be stated in the caption of the complaint 

or petition as well as in the decisions, RESOLUTIONS or ORDERS. 


SECTION 3. ISSUANCE OF SUMMONS. WITHIN TWO (2) DAYS FROM receipt 

of a case, the Labor Arbiter shall issue the required summons, attaching thereto a 

copy of the complaint/petition AND SUPPORTING DOCUMENTS, IF ANY. The 

summons, together with a copy of the complaint, shall specify the date, time and 

place of the conciliation and mediation conference in two (2) settings. 


SECTION 4. PROHIBITED PLEADINGS & MOTIONS. The following pleadings, 

motions or petitions shall not be allowed in the cases covered by these Rules: 

a) Motion to Dismiss the complaint except on the ground of lack of jurisdiction 

over the Subject Matter, Improper Venue, Res Adjudicata, Prescription AND 

FORUM SHOPPING; 

b) Motion for a Bill of Particulars; 

c) Motion for New Trial or Motion for Reconsideration of Judgment or Order of 

the Labor Arbiter; 

d) Petition for Relief from Judgment WHEN FILED WITH THE LABOR ARBITER; 

e) Petition for Certiorari, Mandamus or Prohibition; 

f) Motion to Declare Respondent in Default. 

8. Paragraph (a) of Section 5, Rule III is hereby amended to read as follows: 

SECTION 6. SERVICE OF NOTICES AND RESOLUTIONS a) Notices or 

summonses and copies of orders, shall be served on the parties to the case 

personally by the bailiff or duly authorized public officer within three (3) days 

from receipt thereof or by registered mail; provided that in special circumstances, 

service of summons may be effected in accordance with the pertinent provisions 

of the Rules of Court; Provided further, that in cases of decisions and final awards, 

copies thereof shall be served on both parties and their counsel/REPRESENTATIVE 

by registered mail; provided further that in cases where a party to a case or his 

counsel on record personally seek service of the decision upon inquiry thereon, 

service to said party shall be deemed effected upon actual receipt thereof; provided 

finally, that where parties are so numerous, service shall be made on counsel and 

upon such number of complainants, as may be practicable, which shall be 

considered substantial compliance with Article 224 (a) of the Labor Code, as 

amended.


For purposes of appeal, the PERIOD shall be counted from receipt of such 

decisions, RESOLUTIONS, or orders by the counsel/representative of record. 

9. The first and second paragraphs of Section 7, Rule III are hereby amended to read as 

follows: 

SECTION 8. APPEARANCES. An attorney appearing for a party is presumed 

to be properly authorized for that purpose. HOWEVER, HE SHALL BE REQUIRED 

TO INDICATE IN HIS PLEADINGS HIS PTR AND IBP NUMBERS FOR THE 

CURRENT YEAR. 

A non-lawyer may appear before the Commission or any Labor Arbiter only if: 

a) he represents himself as party to the case; 

b) he represents a LEGITIMATE LABOR organization, AS DEFINED UNDER 

ARTICLES 222 and 242 OF THE LABOR CODE, AS AMENDED or its members, 

provided, that he shall be made to present A VERIFIED CERTIFICATION FROM 

SAID ORGANIZATION that he is properly authorized, or; 

c) he is a duly-accredited member of any legal aid office duly recognized by the 

Department of Justice or Integrated Bar of the Philippines. 

10. Paragraphs (a) and (c) of Section 1, Rule IV are hereby amended to read as follows: 

SECTION 1. VENUE. a) All cases which Labor Arbiters have authority to hear 

and decide may be filed in the Regional Arbitration Branch having jurisdiction 

over the workplace of the complainant/petitioner. 

For purposes of venue, workplace shall be understood as the place or locality 

where the employee is regularly assigned when the cause of action arose. It shall 

include the place where the employee is supposed to report back after a temporary 

detail, assignment, or travel. In the case of field employees, as well as ambulant 

or itinerant workers, their workplace is where they are regularly assigned, or 

where they are supposed to regularly receive their salaries/wages or work 

instructions from, and report the results of their assignment to, their employers. 

b) x x x x x x 

c) When improper venue is not objected to before the filing of position papers, 

such ISSUE shall be deemed waived. 

d) x x x x x x 

11. Section 3 of Rule IV is hereby amended to read as follows: 

SECTION 3. CONSOLIDATION OF CASES/COMPLAINTS. Where there are 

two or more cases/COMPLAINTS pending before different Labor Arbiters in the 

same Regional Arbitration Branch involving the same employer AND COMMON 

PRINCIPAL CAUSES OF ACTION or the same parties with different CAUSES OF 

ACTION, the subsequent cases/COMPLAINTS shall be consolidated with the first

422 


to avoid unnecessary costs or delay. Such consolidated cases/COMPLAINTS 

shall be disposed of by the Labor Arbiter to whom the first case was assigned. 

In case of objection to the consolidation, the same shall be resolved by the 

EXECUTIVE Labor Arbiter. An order resolving the motion shall be inappealable. 

12. The second paragraph of Section 4, Rule IV is hereby amended to read as follows: 

When the Secretary of Labor and Employment has assumed jurisdiction 

over a strike or lockout dispute or certified the same to the Commission, the 

parties to such dispute shall immediately inform the Secretary or the Commission, 

as the case may be, of all cases directly related to the disputes between them 

pending before any Regional Arbitration Branch, and the Labor Arbiter handling 

the same of such assumption or certification. THE LABOR ARBITER CONCERNED 

SHALL FORWARD WITHIN TWO (2) DAYS FROM NOTICE THE ENTIRE 

RECORDS OF THE CASE TO THE COMMISSION OR TO THE SECRETARY OF 

LABOR, AS THE CASE MAY BE, FOR PROPER DISPOSITION. 

13. Section 1 of Rule V is hereby amended to read as follows: 

SECTION 1. JURISDICTION OF LABOR ARBITERS. Labor Arbiters shall have 

original and exclusive jurisdiction to hear and decide all cases involving all workers, 

whether agricultural or non-agricultural, AS WELL AS CLAIMS OF OVERSEAS 

FILIPINO WORKERS provided for by law. 

14. Section 2 of Rule V is hereby amended to read as follows: 

SECTION 2. MANDATORY CONCILIATION/MEDIATION CONFERENCE. Within 

two (2) days from receipt of an assigned case, the Labor Arbiter shall issue the 

summons to the parties for a conference, for the purpose of amicably settling the 

case upon a fair compromise, determining the real parties in interest, defining 

and simplifying the issues in the case, entering into admissions or stipulations of 

facts and threshing out all other preliminary matters. 

CONCILIATION AND MEDIATION EFFORTS SHALL BE EXERTED BY THE 

LABOR ARBITERS ALL THROUGHOUT THE PROCEEDINGS. Should the parties 

arrive at any agreement as to the whole or any part of the dispute, the same shall 

be reduced to writing and signed by the parties and their respective counsel, OR 

AUTHORIZED REPRESENTATIVE, if any, before the Labor Arbiter. 

The settlement shall be approved by the Labor Arbiter after being satisfied that 

it was voluntarily entered into by the parties and after having explained to them the 

terms and consequences thereof. 

A compromise agreement entered into by the parties not in the presence of 

the Labor Arbiter before whom the case is pending shall be approved by him, if 

after, confronting the parties, particularly the complainant/s, he is satisfied that 

they understand the terms and conditions of the settlement and that it was entered 

into freely and voluntarily by them and the agreement is not contrary to law, 

morals, and public policy.


A compromise agreement duly entered into in accordance with this Section 

shall be final and binding upon the parties and the Order approving it shall have 

the effect of a judgment rendered by the Labor Arbiter. Should the parties fail to 

agree upon an amicable settlement, either in whole or in part, during the 

conference/s, the Labor Arbiter shall issue an order stating therein the matters 

taken up and agreed upon during the conference/s and directing the parties to 

simultaneously file their respective verified position papers. 

The mandatory conferences shall, except for justifiable grounds, be terminated 

within thirty (30) calendar days from the date of the first conference. 

No motion for postponement shall be entertained EXCEPT ON MERITORIOUS 

GROUNDS. Non-appearance of the complainant/s during the TWO (2) scheduled 

hearings for mediation/conciliation conference shall be a ground for the dismissal 

of the case without prejudice. 

In case of non-appearance of the respondent/s during the first conference, a 

second conference shall proceed. Non-appearance of the respondent during the 

second conference shall immediately terminate the mandatory conciliation/ 

mediation conference. The complainant shall thereupon be allowed to file his 

position paper as well as submit evidence in support of his cause or causes of 

action after which, the Labor Arbiter shall render his decision on the basis of the 

evidence on record. 

15. Sections 3, 4, 5, 6, 7, 9, 10, 14, 16, 17, 18 and 19 of Rule V are hereby renumbered as 

Sections 4, 5, 13, 11, 12, 6, 7, 16, 9, 3, 14 and 15 respectively. 


SECTION 4, SUBMISSION OF POSITION PAPERS/MEMORANDA. Without 

prejudice to the provisions of the last paragraph, SECTION 2 of this Rule, the 

Labor Arbiter shall direct both parties to submit simultaneously their position papers 

with supporting documents and affidavits within an inextendible period of ten (10) 

days from notice of termination of the mandatory conference. 

These verified position papers to be submitted shall cover only those claims 

and causes of action raised in the complaint excluding those that may have been 

amicably settled, and shall be accompanied by all supporting documents including 

the affidavits of their respective witnesses which shall take the place of the latterís 

direct testimony. The parties shall thereafter not be allowed to allege facts, or 

present evidence to prove facts, not referred to and any cause or causes of 

action not included in the complaint or position papers, affidavits and other 

documents. 


SECTION 5. DETERMINATION OF NECESSITY OF HEARING. Immediately 

after the submission by the parties of their position papers/memoranda, the Labor 

Arbiter shall, motu propio, determine whether there is a need for a formal trial or 

hearing. At this stage, he may, at his discretion and for the purpose of making

424 


such determination, ask clarificatory questions to further elicit facts or information, 

including but not limited to the subpoena of relevant documentary evidence, if 

any, from any party or witness. 


SECTION 13. PERIOD TO DECIDE CASE. THE LABOR ARBITER shall render 

his decision within thirty (30) calendar days, without extension, after the submission 

of the case by the parties for decision, even in the absence of stenographic 

notes. Provided, however, that cases involving Overseas Filipino Workers shall 

be decided within ninety (90) calendar days after the filing of the complaint which 

shall COMMENCE TO RUN upon acquisition by the Labor Arbiter of jurisdiction 

over the respondent/s. 


SECTION 11. ISSUANCE OF AN ORDER SUBMITTING THE CASE FOR 

DECISION. After the parties have submitted their position papers and supporting 

documents, AND UPON EVALUATION OF THE CASE the Labor Arbiter finds no 

necessity of further hearing, he shall issue an order expressly declaring the 

submission of the case for DECISION. 


SECTION 12. INHIBITION. A Labor Arbiter may voluntarily inhibit himself from 

the resolution of a case and shall so state in writing the legal justification/s therefor. 

Upon motion of a party, either on the ground of relationship within the fourth civil 

degree of consanguinity or affinity with the adverse party or counsel, or on question 

of impartiality, the Labor Arbiter may inhibit himself from further hearing the case. 

Such motion shall be resolved within five (5) days from the filing thereof. An order 

DENYING OR GRANTING A MOTION FOR inhibition is not appealable. 

21. Section 8 of Rule V is hereby transposed to Section 2 of the same rule and incorporated 

as part of its second paragraph. 


SECTION 16. REVIVAL/RE-OPENING OR RE-FILING OF DISMISSED CASE. 

A party may file a MOTION to revive or re-open a case dismissed without prejudice, 

within ten (10) calendar days from receipt of notice of the order dismissing the 

same; otherwise, his only remedy shall be to re-file the case IN THE ARBITRATION 

BRANCH OF ORIGIN. 


SECTION 9. MINUTES OF PROCEEDINGS. The proceedings before a Labor 

Arbiter need not be recorded. He shall make a written summary of the proceedings, 

including the substance of the evidence presented, in consultation with the parties. 

The written summary shall be signed by the parties and shall form part of the 

records.



SECTION 3. MOTION TO DISMISS. On or before the date set for the 

conference, the respondent may file a motion to dismiss. Any motion to dismiss 

on the ground of lack of jurisdiction, improper venue, or that the cause of action 

is barred by prior judgment, prescription OR FORUM SHOPPING, shall be 

immediately resolved by the Labor Arbiter by a written order. An order denying 

the motion to dismiss or suspending its resolution until the final determination of 

the case is not appealable. 


SECTION 14. CONTENTS OF DECISIONS. The decisions/orders of the Labor 

Arbiter shall be clear and concise and shall include a brief statement of the a) 

facts of the case; b) issue/s involved; c) applicable law or rules; d) conclusions 

and the reasons therefor; and e) specific remedy or relief granted. In cases 

involving monetary awards, the decision or orders of the Labor Arbiter shall contain 

the amount awarded. 


SECTION 15. MOTIONS FOR RECONSIDERATION/PETITION FOR RELIEF 

FROM JUDGMENT. No motions for reconsideration/PETITION FOR RELIEF FROM 

JUDGMENT of any decision, RESOLUTION or order of a Labor Arbiter shall be 

allowed. HOWEVER, when one such motion FOR RECONSIDERATION is filed, 

it shall be treated as an appeal provided that it complies with the requirements for 

perfecting an appeal. IN THE CASE OF A PETITION FOR RELIEF FROM 

JUDGMENT, THE LABOR ARBITER SHALL ELEVATE THE CASE TO THE 

COMMISSION FOR DISPOSITION. 

27. Sections 11 and 12 of Rule V are hereby consolidated, renumbered as Section 8, and 


SECTION 8. PRESENTATION OF EVIDENCE AND EXTENT OF CROSS- 

EXAMINATION. THE COMPLAINANT/PETITIONER shall be the first to present 

evidence to support his case. 

In the cross-examination of witnesses, only relevant, pertinent and material 

questions necessary to enlighten the presiding Labor Arbiter shall be allowed. 

28. Sections 13 and 14 of Rule V are hereby consolidated, renumbered as Section 10 and 


SECTION 10. NON-APPEARANCE OF PARTIES, AND POSTPONEMENT OF 

HEARINGS. a) Non-appearance at a hearing by the complainant or petitioner, 

who was duly notified thereof, may be sufficient cause to dismiss the case without 

prejudice. Where proper justification, however, is shown by proper motion to 

warrant the re-opening of the case, the Labor Arbiter shall call a second hearing 

and continue the proceedings until the case is finally decided. Dismissal of the

426 


case for the second time due to the unjustified non-appearance of the complainant 

or petitioner who was duly notified thereof shall be with prejudice. 

b) In case of TWO (2) SUCCESSIVE non-appearances by the respondent, 

despite due notice during the complainantís presentation of evidence, the 

complainant shall be allowed to present evidence ex-parte, WITHOUT PREJUDICE 

to cross-examination by the respondent at the next hearing. Upon completion of 

such presentation evidence of for the complainant, another notice of hearing for 

the reception of the respondentís evidence shall be issued, with a warning that 

failure of the respondent to appear shall be construed as a waiver on his part to 

present evidence. In case of such non-appearance by the respondent, despite 

due notice, the case shall be considered submitted for decision on the basis of 

the evidence so far presented. 

c) The parties and their counsel or representative appearing before a Labor 

Arbiter shall be prepared for continuous hearing. No postponements or 

continuances of hearings shall be allowed by the Labor Arbiter except upon 

meritorious grounds and subject always to the requirement of expeditious disposition 

of cases and the termination of hearings within ninety (90) calendar days from 

the date of initial hearing. 

d) The provisions of paragraph (c) hereof notwithstanding, in cases involving 

Overseas Filipino Workers, the aggregate period for conducting the mandatory 

conciliation/mediation conference and a hearing on the merits shall not exceed 

sixty (60) days, which shall be reckoned from the date of acquisition by the Labor 

Arbiter of jurisdiction over the person of the respondent/s. 

29. Section 1 of Rule VI is hereby amended to read as follows: 

SECTION 1. PERIODS OF APPEAL. Decisions, RESOLUTIONS or orders of 

the Labor Arbiter shall be final and executory unless appealed to the Commission 

by any or both parties within ten (10) calendar days from receipt of such decisions, 

RESOLUTIONS or orders of the Labor Arbiter and in case of a decision of the 

Regional Director within five (5) calendar days from receipt of such decisions, 

RESOLUTIONS, or orders. If the 10th or 5th day, as the case may be, falls on a 

Saturday, Sunday or a holiday, the last day to perfect the appeal shall be the next 

working day. 

30. Paragraph (a) of Section 2, Rule VI is hereby amended to read as follows: 

SECTION 2. GROUNDS. The appeal may be entertained only on any of the 

following grounds: 

a) If there is prima facie evidence of abuse of discretion on the part of the 

Labor Arbiter OR Regional Director; 


SECTION 3. WHERE FILED. The appeal shall be filed with the respective 

Regional Arbitration Branch OR the Regional Office, where the case was heard 

and decided.



SECTION 4. REQUISITES FOR PERFECTION OF APPEAL. a) The Appeal 

shall be filed within the reglementary period as provided in Section 1 of this Rule; 

shall be VERIFIED BY APPELLANT HIMSELF IN ACCORDANCE WITH SECTION 

4, RULE 7 OF THE RULES OF COURT, with proof of payment of the required 

appeal fee and the posting of a cash or surety bond as provided in Section 6 of 

this Rule; shall be accompanied by memorandum of appeal IN THREE (3) LEGIBLY 

TYPEWRITTEN COPIES which shall state the grounds relied upon and the 

arguments in support thereof; the relief prayed for; and a statement of the date 

when the appellant received the appealed decision, RESOLUTION or order AND 

A CERTIFICATE OF NON-FORUM SHOPPING WITH proof of service on the 

other party of such appeal. A mere notice of appeal without complying with the 

other requisites aforestated shall not stop the running of the period for perfecting 

an appeal. 

b) The appellee may file with the Regional Arbitration Branch OR Regional 

Office where the appeal was filed, his answer or reply to appellantís memorandum 

of appeal, not later than ten (10) calendar days from receipt thereof. Failure on 

the part of the appellee who was properly furnished with a copy of the appeal to 

file his answer or reply within the said period may be construed as a waiver on his 

part to file the same. 

c) Subject to the provisions of Article 218, once the appeal is perfected in 

accordance with these Rules, the Commission SHALL limit itself to reviewing and 

deciding specific issues that were elevated on appeal. 


SECTION 5. APPEAL FEE. The appellant shall pay an appeal fee of one 

hundred FIFTY pesos (P150.00) to the Regional Arbitration Branch OR Regional 

Office, and the official receipt of such payment shall be attached to the records of 

the case. 


SECTION 6. BOND. In the case the decision of the Labor Arbiter OR the 

Regional Director involves a monetary award, an appeal by the employer MAY be 

perfected only upon the posting of a cash or surety bond. THE APPEAL BOND 

SHALL EITHER BE IN CASH OR SURETY IN AN AMOUNT EQUIVALENT TO 

THE MONETARY AWARD, EXCLUSIVE OF DAMAGES AND ATTORNEYíS FEES. 

IN CASE OF SURETY BOND, THE SAME SHALL BE ISSUED BY A 

REPUTABLE BONDING COMPANY DULY ACCREDITED BY THE COMMISSION 

OR THE SUPREME COURT, AND SHALL BE ACCOMPANIED BY: 

a) A JOINT DECLARATION UNDER OATH BY THE EMPLOYER, HIS 

COUNSEL, AND THE BONDING COMPANY, ATTESTING THAT THE BOND 

POSTED IS GENUINE, AND SHALL BE IN EFFECT UNTIL FINAL DISPOSITION 

OF THE CASE.

428 


b) A COPY OF TH E INDEMNITY AGREEMENT BETWEEN THE EMPLOYER- 

APPELLANT AND BONDING COMPANY; AND 

c) A COPY OF SECURITY DEPOSIT OR COLLATERAL SECURING THE 

BOND. 

A CERTIFIED TRUE COPY OF THE BOND SHALL BE FURNISHED BY THE 

APPELLANT TO THE APPELLEE WHO SHALL VERIFY THE REGULARITY AND 

GENUINENESS THEREOF AND IMMEDIATELY REPORT TO THE COMMISSION 

ANY IRREGULARITY. 

UPON VERIFICATION BY THE COMMISSION THAT THE BOND IS 

IRREGULAR OR NOT GENUINE, THE COMMISSION SHALL CAUSE THE 

IMMEDIATE DISMISSAL OF THE APPEAL. 

NO MOTION TO REDUCE BOND SHALL BE ENTERTAINED EXCEPT ON 

MERITORIOUS GROUNDS AND UPON THE POSTING OF A BOND IN A 

REASONABLE AMOUNT IN RELATION TO THE MONETARY AWARD. 

The filing of the motion to reduce bond WITHOUT COMPLIANCE WITH THE 

REQUISITES IN THE PRECEDING PARAGRAPH shall not stop the running of the 

period to perfect AN APPEAL. 

35. Sections 8 and 9 of Rule VI are hereby renumbered as Sections 9 and 8, respectively. 


SECTION 9. TRANSMITTAL OF RECORDS OF CASES ON APPEAL. Within 

forty--eight (48 ) hours after the filing of the appeal, the records of the case, 

WITH A CORRESPONDING INDEX OF CONTENTS THEREOF, together with the 

memorandum of appeal and the reply or answer thereto, if any, proofs of service, 

IF AVAILABLE, PROOF of payment of the appeal fee, and THE APPEAL BOND 

POSTED, shall be OFFICIALLY transmitted by the OFFICE OF ORIGIN to the 

Commission. 


SECTION 8. RECORDS OF CASES ON APPEAL. The records of a case shall 

contain, among others, THE ORIGINAL COPY OF THE COMPLAINT; pleadings; 

MINUTES OF THE PROCEEDINGS; notices, transcripts of stenographic notes, if 

any, DECISIONS/ORDERS/RESOLUTIONS; proof of service of the decision, IF 

AVAILABLE; order or COMPUTATION of the award; and EVIDENCE SUBMITTED, 

which shall be chronologically arranged and PAGED PROMINENTLY. 


SECTION 10. PERFECTION OF APPEAL; EFFECT. Without prejudice to the 

provisions of Section 3, Rule VIII of these Rules, once an appeal is filed, the 

Labor Arbiter loses jurisdiction over the case. All motions/pleadings pertaining 

thereto shall thereafter be addressed to and filed with the Commission.



SECTION 11. FRIVOLOUS OR DILATORY APPEALS. To discourage frivolous 

or dilatory appeals, the Commission may impose APPROPRIATE SANCTION 

upon the erring parties. 

40. Section 2 of Rule VII is hereby amended to read as follows: 

SECTION 2. COMPOSITION/INTERNAL FUNCTIONS OF THE COMMISSION 

EN BANC AND ITS DIVISIONS. a) COMPOSITION. UNLESS OTHERWISE 

PROVIDED BY LAW, the Commission SHALL BE composed of the Chairman 

and of fourteen (14) COMMISSIONERS. 

b) Commission en banc. The Commission shall sit en banc only for purposes 

of promulgating rules and regulations governing the hearing and disposition of 

cases before its Divisions and Regional Arbitration Branches, and for the 

formulation of policies affecting its administration and operations: IT MAY, ON 

TEMPORARY OR EMERGENCY BASIS, ALLOW CASES WITHIN THE 

JURISDICTION OF ANY DIVISION TO BE HEARD BY ANY OTHER DIVISION 

WHOSE DOCKET ALLOWS THE ADDITIONAL WORKLOAD AND SUCH 

TRANSFER WILL NOT EXPOSE LITIGANTS TO UNNECESSARY ADDITIONAL 

EXPENSE. 

c). Divisions. Unless otherwise provided by law, the Commission shall exercise 

its adjudicatory and all other powers, functions and duties through its five (5) 

Divisions. Each Division shall consist of one member from the public sector who 

shall act as the Presiding Commissioner and one member each from the workers 

and employers sectors, respectively. 

Of the five (5) Divisions, the First, Second and Third Divisions shall have 

exclusive territorial jurisdiction over appeals of cases coming from Luzon; Fourth 

Division, appealed cases from Visayas Region; and the Fifth Division, appealed 

cases from Mindanao including those from the Autonomous Region for Muslim 

Mindanao. 

d) Headquarters, Branches and Provincial Extension Units. As provided by 

law, the Commission and its First, Second and Third Divisions shall have their 

main office in the National Capital Region, and the Fourth and Fifth Divisions in 

the cities of Cebu and Cagayan de Oro, respectively. 


SECTION 4. SESSION EN BANC/QUORUM AND VOTE. a) Commission en 

banc. THE CHAIRMAN SHALL CALL THE COMMISSION TO A SESSION EN 

BANC AT LEAST TWICE A YEAR, PREFERABLY FIRST WEEK OF JUNE AND 

FIRST WEEK OF DECEMBER to deliberate on and decide any matter before it. 

HOWEVER, A majority of ALL the members OF THE COMMISSION MAY CALL 

A SPECIAL EN BANC SESSION TO DISCUSS AND DECIDE ON URGENT AND 

VITAL MATTERS WHICH NEED IMMEDIATE ACTION.

430 


b) QUORUM. The presence of a majority of all the members of the Commission 

shall be necessary to constitute a quorum. The vote or concurrence of THE 

majority of the members constituting a quorum shall BE the decision or resolution 

of the Commission en banc. 

c) Division, The presence of at least two (2) Commissioners of a Division shall 

constitute a quorum. The concurrence of two (2) Commissioners of a Division 

shall be necessary for the pronouncement of a judgment or resolution. 

Whenever the required membership in a Division is not complete and the 

concurrence of two (2) Commissioners to arrive at a judgment or resolution cannot 

be obtained, the Chairman shall designate such number of additional 

Commissioners from the other Divisions as may be necessary from the same 

sector. 

d) Role of Chairman in the Division. The Chairman of the Commission may 

convene and preside over the session of any Division to consider any case 

pending before it and participate in its deliberations, if in his judgment, his presence 

therein will best serve the interests of labor justice. He shall not however, participate 

in the voting by the Division, except when he is acting as Presiding Commissioner 

of the Division in the absence of the regular Presiding Commissioner. 


SECTION 7. INHIBITION. NO MOTION TO INHIBIT THE ENTIRE DIVISION 

OF THE COMMISSION SHALL BE ENTERTAINED. HOWEVER, any 

Commissioner may inhibit himself from the consideration and resolution of any 

case/matter before the Division and shall so state in writing the legal or justifiable 

grounds therefor. In the event that a member inhibits himself, the case shall be 

raffled by the Executive Clerk or Deputy Executive Clerk to either of the two (2) 

remaining Commissioners. IN CASE TWO (2) COMMISSIONERS IN A DIVISION 

INHIBIT THEMSELVES IN A CASE OR MATTER BEFORE IT, THE CHAIRMAN 

SHALL, AS FAR AS PRACTICABLE, APPOINT TWO COMMISSIONERS FROM 

OTHER DIVISIONS REPRESENTING THE SECTOR OF THE COMMISSIONERS 

WHO INHIBITED THEMSELVES. 


SECTION 11.DUTY TO CONCILIATE AND MEDIATE. In the exercise of its 

EXCLUSIVE, original AND APPELLATE jurisdiction, the Commission shall exert 

all efforts towards the amicable settlement of a labor dispute. 

THE SETTLEMENT OF CASES ON APPEAL, TO BE VALID AND BINDING 

BETWEEN THE PARTIES, SHALL BE MADE BEFORE THE COMMISSIONER 

OR HIS AUTHORIZED REPRESENTATIVE. 


SECTION 12. ROLE OF THE LABOR ARBITER ASSIGNED TO THE COMMISSION. In 

the resolution of cases ON APPEAL, AND THOSE mentioned in RULES IX AND XI, the


Commission shall be assisted by the Labor Arbiter who may be directed to study, review, 

hear and receive evidence and submit reports thereto. 

45. Section 13 of Rule VII is hereby amended to read as follows: 

SECTION 13. FORM OF DECISION/RESOLUTION/ORDER. The decision/resolution/ 

ORDER shall state clearly and distinctly the findings of facts, issues and conclusions of law 

on which it is based and relief granted, if any. If the decision or resolution/ORDER involves 

monetary awards, the same shall contain the specific amount awarded as of the date the 

decision is rendered. 

46. Section 14 of Rule VII is hereby renumbered as Section 15 and the new Section 14 

shall read as follows: 

SECTION 14. FINALITY OF DECISION OF THE COMMISSION AND ENTRY OF 

JUDGMENT. a) Finality of the Decisions, Resolution or Orders of the Commission. Except 

as provided in Rule XI, section 9, the decisions, resolutions or orders of the Commission/ 

Division shall become executory after ten (10) calendar days from receipt of the same. 

b). Entry of Judgment. Upon the expiration of the ten (10) calendar day period provided 

in PARAGRAPH (A) OF THIS SECTION, the decision/resolution/order shall, as far as 

practicable, BE entered in a book of entries of judgment. 

c). ALLOWANCE FOR DELAY OF MAIL IN THE ISSUANCE OF ENTRIES OF 

JUDGMENT. IN ISSUING ENTRIES OF JUDGMENT, THE EXECUTIVE CLERK OF COURT 

OR THE DEPUTY EXECUTIVE CLERK, IN THE ABSENCE OF A RETURN CARD OR 

CERTIFICATION FROM THE POST OFFICE CONCERNED, SHALL DETERMINE THE 

FINALITY OF THE DECISION BY MAKING ALLOWANCE FOR DELAY OF MAIL, COMPUTED 

SIXTY (60) CALENDAR DAYS FROM THE DATE OF MAILING OF THE DECISION, 

RESOLUTION OR ORDER. 


SECTION 15. MOTIONS FOR RECONSIDERATION. Motion for reconsideration of any 

decision/resolution/order of the Commission shall not be entertained except when based on 

palpable or patent errors, provided that the motion is under oath and filed within ten (10) 

calendar days from receipt of decision/resolution/order, with proof of service that a copy of 

the same has been furnished, within the reglementary period, the adverse party, and provided 

further, that only one such motion from the same party shall be entertained. 

Should a motion for reconsideration be entertained pursuant to THIS section, the 

RESOLUTION shall be executory after ten (10) calendar days from receipt THEREOF. 

48. Section 15 of Rule VII is hereby deleted. 

49. The title of Rule VIII is hereby amended to read as follows: 

RULE VIII - EXECUTION PROCEEDINGS

432 


50. Section 1 of Rule VIII is hereby renumbered as Section 2 and the new Section 1 shall 

read as follows: 

SECTION 1. PRE-EXECUTION CONFERENCE. WITHIN TWO (2) WORKING DAYS 

FROM RECEIPT OF THE MOTION FOR THE ISSUANCE OF A WRIT OF EXECUTION AND 

SUBJECT TO SECTION 2, PARAGRAPH B, THE LABOR ARBITER SHALL SCHEDULE A 

PRE-EXECUTION CONFERENCE/HEARING TO THRESH OUT MATTERS RELEVANT TO 

EXECUTION. 

51. Section 1 of Rule VIII is hereby amended to read as follows: 

SECTION 2. ISSUANCE OF A WRIT. a) Execution shall issue upon a decision, resolution 

or order that finally disposes of the actions or proceedings after the counsel of record and 

the parties shall have been furnished with copies of the decision in accordance with these 

Rules but only after the expiration of the period of appeal if no appeal has been duly FILED. 

b) No motion for execution shall be entertained nor a writ be issued unless the Labor 

Arbiter/COMMISSION is in possession of the records of the case which shall include an 

Entry of Judgment in case of appeal except that, as provided for in Section 10 of Rule VI, 

and in the those cases where partial execution is allowed by law, the Labor Arbiter shall 

retain duplicate original copies of the decision to be implemented and proof of service 

thereof for the purpose of its immediate enforcement. 

52. Section 2, Rule VIII is hereby transposed to Rule VII, with paragraphs (a) and (d) of 

the former being incorporated as paragraphs (a) and (d), respectively, of Section 14 of the 

latter and paragraph (c) of the former incorporated as the second paragraph of Section 15 

of the latter. 

53. Sections 3, 4 and 5 of Rule VIII are hereby renumbered as Sections 5, 7 and 10, 

respectively, and the new Sections 3 and 4 shall read as follows: 

SECTION 3. ISSUANCE OF PARTIAL WRIT PENDING APPEAL. In case the 

decision includes an order of reinstatement, the Labor Arbiter shall immediately 

issue a partial writ of execution EVEN PENDING APPEAL directing the employer 

to immediately reinstate the dismissed employee EITHER PHYSICALLY OR 

THROUGH PAYROLL AND TO PAY THE CORRESPONDING SALARIES AS A 

CONSEQUENCE OF THE REINSTATEMENT. 

SECTION 4. EFFECT OF PERFECTION OF APPEAL ON EXECUTION. THE 

PERFECTION OF APPEAL SHALL STAY THE EXECUTION OF THE DECISION 

OF A LABOR ARBITER ON APPEAL EXCEPT PARTIAL EXECUTION FOR 

REINSTATEMENT PENDING APPEAL. 


SECTION 5. COMPUTATION DURING EXECUTION. Where further computation 

of the DECISION, RESOLUTION OR ORDER is necessary, no execution shall 

issue until after computation shall have been approved by the Labor Arbiter IN AN 

ORDER after the parties shall have been notified and heard thereon.



SECTION 7. ENFORCEMENT OF WRIT. In executing an order, resolution or 

decision, the sheriff or other AUTHORIZED officer acting as such, shall be guided 

strictly by the Sheriffís Manual (NLRC Manual on Execution of Judgment) which 

shall form part of these Rules, and in the absence of applicable rules, the REVISED 

Rules of Court, AS AMENDED. 


SECTION 10. DESIGNATION OF SPECIAL SHERIFFS AND IMPOSITION OF 

FINES. The Chairman of the Commission may designate special Sheriffs and 

take any measure, under existing laws to ensure compliance with THE decisions, 

resolutions or orders OF THE COMMISSION and those of Labor Arbiters, including 

the imposition of administrative fines which shall not be less than P500.00 nor 

more than P10,000.00 


SECTION 6. EFFECT OF FILING OF PETITION FOR CERTIORARI ON 

EXECUTION. A PETITION FOR CERTIORARI WITH THE COURT OF APPEALS 

OR THE SUPREME COURT SHALL NOT STAY THE EXECUTION OF THE 

ASSAILED DECISION UNLESS A TEMPORARY RESTRAINING ORDER IS 

ISSUED BY THE COURT OF APPEALS OR THE SUPREME COURT. 

58. Sections 8 and 9, providing as follows, are hereby added to Rule VIII: 

SECTION 8. RESOLUTION OF MOTION TO QUASH. A MOTION TO QUASH 

SHALL BE RESOLVED BY THE LABOR ARBITER WITHIN TEN (10) DAYS FROM 

SUBMISSION OF SAID MOTION FOR RESOLUTION. 

SECTION 9. RESOLUTION OF THIRD PARTY CLAIM. SHOULD A THIRD 

PARTY CLAIM BE FILED DURING EXECUTION OF THE JUDGMENT AWARD, 

THE THIRD PARTY CLAIMANT SHALL EXECUTE AN AFFIDAVIT STATING HIS 

TITLE TO PROPERTY OR POSSESSION THEREOF WITH SUPPORTING 

EVIDENCE AND SHALL FILE THE SAME WITH THE SHERIFF AND COPIES 

THEREOF SERVED UPON THE LABOR ARBITER OR PROPER OFFICER 

ISSUING THE WRIT. UPON RECEIPT OF THE THIRD PARTY CLAIM, ALL 

PROCEEDINGS, WITH RESPECT TO THE EXECUTION OF THE PROPERTY 

SUBJECT OF THE THIRD PARTY CLAIM. SHALL AUTOMATICALLY BE 

SUSPENDED. THE LABOR ARBITER WHO ISSUED THE WRIT MAY REQUIRE 

THE THIRD PARTY CLAIMANT TO ADDUCE ADDITIONAL EVIDENCE IN 

SUPPORT OF HIS THIRD PARTY CLAIM AND TO POST CASH OR SURETY 

BOND AS PROVIDED IN SECTION 6, RULE VI, WITHOUT PREJUDICE TO THE 

POSTING BY THE PREVAILING PARTY OF A SUPERSEDEAS BOND IN AN 

AMOUNT EQUIVALENT TO THAT POSTED BY THE THIRD PARTY CLAIMANT, 

AND RESOLVE THE PROPRIETY OF SUCH CLAIM WITHIN TEN (10) WORKING 

DAYS FROM SUBMISSION OF THE CLAIM FOR RESOLUTION.

434 


59. Sections 3 and 4 of Rule IX are hereby deleted. 

60. Section 5 of Rule IX is hereby renumbered as Section 3 and the new Section 5 shall 

read as follows: 

SECTION 5. EXECUTION OF CERTIFIED CASE, THE COMMISSION SHALL 

ISSUE AN ORDER OF EXECUTION UPON MOTION OF THE PARTIES AND 

UPON RECEIPT OF ENTRY OF JUDGMENT. 

61. Section 5 of Rule IX is hereby amended to read as follows: 

SECTION 3. EFFECT OF CERTIFICATION. a) Upon certification, the intended 

or impending strike or lockout is automatically enjoined, notwithstanding the filing 

of any motion for reconsideration of the certification order nor the non-resolution 

of any such motion which may have been duly submitted to the Office of the 

Secretary of Labor and Employment. If a work stoppage has already taken place 

at the time of the certification, all striking or locked out employees shall immediately 

return to work and the employer shall immediately resume operations and readmit 

all workers under the same terms and conditions prevailing before the strike or 

lock out. 

b) All cases between the same parties, except where the certification order 

specifies OTHERWISE the issues submitted for arbitration which are already 

filed or may be filed, and are relevant to or are proper incidents of the certified 

case, shall be considered subsumed or absorbed by the certified case, and shall 

be decided by the appropriate Division of the Commission. 

THE PARTIES TO A CERTIFIED CASE, UNDER PAIN OF CONTEMPT, 

SHALL INFORM THEIR COUNSELS AND THE DIVISION CONCERNED OF ALL 

CASES PENDING WITH THE REGIONAL ARBITRATION BRANCHES AND 

VOLUNTARY ARBITRATORS RELATIVE OR INCIDENT TO THE CERTIFIED 

CASE BEFORE IT. 

Whenever a certified labor dispute involves a business entity with several 

workplaces located in different regions, the Division having territorial jurisdiction 

over the principal office of the company shall acquire jurisdiction to decide such 

labor dispute; unless the certification order provides otherwise. 

62. Section 6 of Rule IX is hereby renumbered as Section 4 and the first paragraph thereof 


SECTION 4. EFFECTS OF DEFIANCE. Non-compliance with certification order 

of the Secretary of Labor and Employment or a return to work order of the 

Commission shall be considered an illegal act committed in the course of the 

strike or lockout and shall authorize the Commission to enforce the same under 

pain of loss of employment status or entitlement to full employment benefits from 

the locking-out employer or backwages, damages and/or other positive and/or 

affirmative reliefs, even to criminal prosecution against the liable party/ies. 

63. Section 2 of Rule X is hereby amended to read as follows:


SECTION 2. INDIRECT CONTEMPT. The Commission or any Labor Arbiter 

may also cite any person for indirect contempt upon the FOLLOWING grounds: 

A) MISBEHAVIOUR OF AN EMPLOYEE OR ANY OFFICER IN THE 

PERFORMANCE OF HIS OFFICIAL DUTIES OR IN HIS OFFICIAL 

TRANSACTION; 

B) DISOBEDIENCE OR RESISTANCE OF A LAWFUL WRIT, ORDER OR 

DECISION; 

C) ANY ABUSE OF, OR ANY UNLAWFUL INTERFERENCE WITH THE 

PROCESSES OR PROCEEDINGS NOT CONSTITUTING DIRECT CONTEMPT; 

D) ANY IMPROPER CONDUCT, DIRECT OR INDIRECT, TO IMPEDE, 

OBSTRUCT OR DEGRADE THE ADMINISTRATION OF JUSTICE; 

E) ASSUMING TO BE AN ATTORNEY OR A REPRESENTATIVE OF PARTY 

WITHOUT AUTHORITY; 

F) FAILURE TO OBEY A SUBPOENA DULY SERVED; 

G) OTHER GROUNDS ANALOGOUS TO THE FOREGOING 

ANY PERSON ADJUDGED GUILTY OF INDIRECT CONTEMPT SHALL 

OBSERVE THE SAME PROCEDURE AS PROVIDED FOR IN THE SECOND 

PARAGRAPH OF SECTION 1 HEREOF. 

64. Section 1 of Rule XI is hereby amended to read as follows: 

SECTION 1. INJUNCTION IN ORDINARY LABOR DISPUTES. A preliminary 

injunction or restraining order may be granted by the Commission through its 

Divisions pursuant to the provisions of paragraph (e) of Article 218 of the Labor 

Code, as amended, when it is established on the basis of the sworn allegations in 

the petition that the acts complained of involving or arising from any labor dispute 

before the Commission, which, if not restrained or performed forthwith, may 

cause grave or irreparable damage to any party or render ineffectual any decision 

in favor of such party. 

A CERTIFICATION OF NON-FORUM SHOPPING SHALL ACCOMPANY THE 

PETITION FOR INJUNCTION. 

The writ of preliminary injunction or TEMPORARY restraining order shall 

BECOME EFFECTIVE only upon POSTING of the REQUIRED CASH bond IN 

THE AMOUNT TO BE DETERMINED BY THE COMMISSION TO answer for any 

damage that may be suffered by the party enjoined, if it is finally determined that 

the petitioner is not entitled thereto. 

65. Paragraph (c) of Section 2, Rule XI is hereby amended to read as follows:

436 


c) That as to each item OF relief to be granted, greater injury will be inflicted 

upon the complainant by the denial of relief THAN will be inflicted upon defendants 

by the granting of relief; 

66. Sections 3, 4, 5, 6, 7, 8, 9 and 10 of Rule XI are hereby renumbered as Sections 4, 3, 

8, 9, 6, 5, 10 and 7 respectively. 


SECTION 8. EFFECTIVITY OF THE TEMPORARY RESTRAINING ORDER. A 

temporary restraining order shall be effective for no longer than twenty (20) days 

and shall become void at the expiration of said twenty (20) days. During the said 

period, the parties shall be required to present evidence to substantiate their 

respective position in the main petition. 


SECTION 7. CASH BOND. No temporary restraining order or temporary 

injunction shall be issued except on condition that PETITIONER shall first file an 

undertaking TO ANSWER FOR THE DAMAGES AND POST A CASH BOND IN 

THE AMOUNT NOT less than THIRTY thousand pesos (P30,000.00) OR AS MAY 

BE DETERMINED BY THE COMMISSION, to recompense those enjoined for 

any loss, expense or damage caused by the improvident or erroneous issuance 

of such order or injunction, including all reasonable costs, together with a 

reasonable attorneyís fee, and expense of defense against the ORDER OR 

AGAINST THE granting of any injunctive relief sought in the same proceeding 

and subsequently denied by the Commission. 


SECTION 10. ORDINARY REMEDY IN LAW OR IN EQUITY. Nothing in this 

Rule shall deprive any party having A claim or cause of action under or upon 

such undertaking from electing to pursue his ordinary remedy by suit at law or in 

equity. 


SECTION 5, RECEPTION OF EVIDENCE; DELEGATION. The reception of 

evidence for the application of a writ of injunction may be delegated by the 

Commission to any of its Labor Arbiters who shall conduct such hearings in such 

places as he may determine to be accessible to the parties and their witnesses, 

and shall thereafter submit his report/RECOMMENDATION to the Commission 

within fifteen (15) days from such delegation. 


SECTION 9. EFFECTS OF DEFIANCE. The order or resolution enjoining the 

PERFORMANCE of illegal acts shall be immediately executory in accordance 

with the terms thereof. In case of noncompliance with such order or resolution, 

the Commission shall impose such sanctions and shall issue such orders as may 

be necessary to implement the said Order or Resolution, including the enlistment


of law enforcement agencies having jurisdiction over the area for the purpose of 

enforcing the same. 

72. Section 4(b) of Rule XII is hereby amended to read as follows: 

b) Filing of Pleadings. He shall receive and file all cases/pleadings and 

documents indicating thereon the date and time filed. All pleadings shall be filed in 

THREE (3) legibly typewritten copies in legal size; 

73. Section 4 (h) of Rule XII is hereby amended to read as follows: 

h) Entry of Judgment . He shall keep a Book of ENTRIES of Judgment, 

Decisions, Resolutions, Orders containing in chronological order the entries of all 

final Orders, Decisions, Resolutions of the Commission. 

74. Section 4(i) of Rule XII is hereby amended to read as follows: 

i) Disposition/Remand of Records. Upon entry of judgment, he shall immediately 

remand the records of the case to the arbitration branch of origin, Regional 

Director or his duly authorized officer, as the case may be. The Records Section 

shall immediately post said records without delay within two (2) working days; 

75. Section 7 of Rule XII is hereby amended to read as follows: 

SECTION 7. ACCESS TO COMMISSION RECORDS. All official records of 

the Commission shall be open to the public during regular office hours, except 

those kept by it in the nature of confidential reports, records or communications 

which cannot be divulged without violating private rights or prejudicing the public 

interest. Minutes of hearings/sessions may not be divulged until after promulgation 

of the Decision/Resolution. 

76. Section 1 of Rule XIII is hereby amended to read as follows: 

SECTION 1. EFFECTIVITY. These Rules shall take effect fifteen (15) days 

after their publication in two (2) newspapers of general circulation. 

This Resolution shall take effect fifteen (15) days following its publication in at least two 

(2) newspapers of general circulation. 


(SGD.) ROY V. SE—ERES 

Cairman 

(SGD.) VICENTE E. VELOSO, III (SGD.) ALBERTO R. QUIMPO 


(SGD.) RAUL T. AQUINO (SGD.) VICTORIANO R. CALAYCAY 

Presiding Commissioner Commissioner

438 


(SGD.) LOURDES C. JAVIER (SGD.) ANGELITA A. GACUTAN 

Presiding Commissioner Commissioner 

(SGD.) IRENEO B. BERNARDO (SGD.) TITO F. GENILO 


(SGD.) IRENEA E. CENIZA (SGD.) EDGARDO M. ENERLAN 


(SGD.) SALIC B. DUMARPA (SGD.) OSCAR S. UY 


(SGD.) LEON G. GONZAGA, JR. (SGD.) OSCAR N. ABELLA 


ATTESTED BY: 

(SGD.) PERLITA B. VELASCO 

Acting Executive Clerk 

NATIONAL POLICE COMMISSION 

PNP- INTERNAL AFFAIRS SERVICE 


Interim Guidelines in the Conduct of Investigation and 

Disposition of Administrative Cases Against PNP Members 

Before the Internal Affairs Service (As Amended) 

REFERENCES: 1. Section 2, Executive Order No. 101 dated May 7, 1999 

2. Title V, Republic Act 8551 

3. NAPOLCOM Memorandum Circular No. 93-024 

Section 1. Powers and Functions of IAS 

a. pro-actively conduct inspections and audits on PNP personnel units; 

b. investigate complaints and gather evidence in support of an open investigation; 

c. conduct summary hearing on PNP members facing administrative charges, and dispose 

of the same based on the evidence presented after due notice and hearing. 

d. submit a periodic report on the assessment, analysis, and evaluation of the character and 

behavior of PNP personnel and units to the Chief, PNP and the Commission;


e. file appropriate criminal cases against PNP members before the court as evidence warrants 

and assists in the prosecution of the case; 

f. provide assistance to the Office of the Ombudsman in cases involving the personnel of the 

PNP. 

g. The IAS shall likewise provide documents or recommendation regarding the promotion of 

PNP members or their assignment to any key position. 

Section 2. Other Powers and Functions - The IAS shall also conduct motu proprio, 

automatic investigation of the following cases: 

a. incidents where a police personnel discharges a firearm; 

b. incidents where death, serious physical injury, or any violation of human rights occurred 

in the conduct of a police operation. 

c. incidents where evidence was compromised, tampered with, obliterated, or lost while in 

the custody of a police personnel; 

d. incidents where a suspect in the custody of the police was seriously injured; and 

e. incidents where the established rules of engagement have been violated. 

Section 3. Definition of Terms - 

a. Complaint - A written and sworn charge filed against any respondent PNP member. 

b. Answer/Counter-Affidavit - The responsive pleading containing the respondentís defenses. 

c. Affidavit - A sworn statement voluntarily made before a notary public or other officer 

authorized to administer oaths. 

d. Breach of Internal Discipline - Any offense committed by a member of the PNP involving 

and affecting order and discipline within the police organization. 

e. Motu Proprio Investigation - An investigation conducted by the IAS of its own initiative/ 

accord. 

f. Probable Cause - From a set of facts and circumstances, there is a reasonable ground to 

believe that an offense has been committed and the respondent has probably committed 

it. 

g. Substantial Evidence - That amount of evidence which to the unprejudiced mind is sufficient 

to support a decision. 

h. Jurisdiction - The power and authority to hear and decide a case. 

i. Venue - The place where the investigation is to be conducted.

440 


j. Ex-Parte Investigation - A proceeding conducted without the presence of either complainant 

or respondent PNP member. 

k. City - Refers only to Highly Urbanized cities. 

ADMINISTRATIVE OFFENSES 

Section 4. Offense Punishable - The following are the offenses for which a member of 

the PNP may be charged administratively: 

a. Neglect of Duty or Non-feasance - is the omission or refusal, without sufficient excuse, to 

perform an act or duty, which it was the peace officerís legal obligation to perform; it 

implies a duty as well as its breach and the fact can never be found in the absence of a 

duty. 

b. Irregularity in the Performance of Duty - is the improper performance of some act which 

could be lawfully done. 

c. Misconduct or malfeasance - is the doing, either through ignorance, inattention or malice, 

of that which the officer had no legal right to do at all, as where he acts without any 

authority whatsoever, or exceeds, ignores or abuses his powers. 

Misconduct generally means wrongful, improper or unlawful conduct, motivated by 

premeditated, obstinate or intentional purpose. It usually refers to transgression of some 

established and definite rule of action, where no discretion is left except what necessity 

may demand; it does not necessarily imply corruption or criminal intention but implies 

wrongful intention and not mere error of judgement. 

d. Incompetency - is the manifest lack of adequate ability and fitness for the satisfactory 

performance of police duties. This has reference to any physical, moral or intellectual 

quality, the lack of which substantially incapacitates one to perform the duties of a peace 

officer. 

e. Oppression - imports an act of cruelty, severity, unlawful exaction, domination, or excessive 

use of authority. The exercise of the unlawful powers or other means, in his will, is generally 

an act of oppression. 

f. Dishonesty - is the concealment or distortion of truth in a matter or act relevant to oneís 

office, or connected with the performance of his duties. 

g. Disloyalty to the Government - consist of abandonment or renunciation of oneís loyalty to 

the Government of the Philippines, or advocating the overthrow of the government. 

h. Violation of Law - presupposes conviction in court of any crime or offense penalized 

under the Revised Penal Code or any special law or ordinance. 

Section 5. Classification of Offenses - For purposes of the application of penalties, 

administrative offenses are classified into light, less grave and grave depending upon the 

seriousness of the acts committed for neglect of duty, irregularity in the performance of duty


and misconduct. For violation of law, the classification shall depend on the seriousness of the 

offense charged and the gravity of the penalty imposed by the courts rendering the judgment. 

The offense of Dishonesty, Disloyalty to the Government, Oppression and Incompetence 

shall always be considered grave or serious offenses. 

PROCEDURE 

Section 6. Complaint, How Initiated - A complaint may be initiated against a PNP 

member through a written verified complaint of any juridical or natural person accompanied 

by sworn statements of witnesses and other documents in support thereof including an 

affidavit of non-forum shopping. 

It may also be initiated motu-proprio by the national, regional/district/city, provincial 

IAS or as may be directed by the Inspector General. 

All complaints whether initiated motu proprio by the IAS or by private individuals shall 

be prosecuted in the name of the Complaints, Investigation and Prosecution Office/Division 

of the national or regional IAS. 

Section 6-A. Complaints Filed Against Certain Senior Police Officers - Administrative 

complaints filed against PNP officers with the rank of Police Senior Superintendent and 

above shall be referred to the Office of the Inspector General for appropriate disposition 

Section 7. Venue - A complaint involving offenses cognizable by the Internal Affairs 

Service shall be filed in the national, regional, city/provincial IAS office where the offense 

was committed. 

Section 7-A. Transfer for Venue - A request for a transfer of the venue of an administrative 

case from one province to another within the same region shall be approved by the IAS 

regional office of that region. A request for transfer of the venue outside of the region shall 

be referred to the national IAS office for approval. 

Section 8. Pre-Charge Investigation 

a. Within three (3) days from receipt of the complaint or after the submission of the aftermission-report 

in cases of motu-proprio investigation, the National, Regional, Provincial/ 

District, City IAS as the case may be, shall issue the notice of complaint attaching 

therewith copies of the complaint, sworn statements and other supporting documents to 

the respondent PNP member directing him to submit his counter-affidavit and other 

documents in support of his defense within five (5) days from receipt of said notice. 

b. Within five (5) days from receipt of the counter-affidavit, the IAS office concerned shall 

immediately set the case for the conduct of a pre-charge investigation, where both parties 

shall be notified, to determine if a probable cause exists to warrant the conduct of a formal 

investigation, which shall in no case exceed five (5) working days; provided that in the 

case of the Provincial/District/City IAS, after the conduct of the same, it shall submit its 

Pre-Charge Investigation Report to the Regional IAS containing its findings and 

recommendations for automatic review;

442 


c. After the automatic review, if the Regional IAS finds the existence of probable cause 

against the respondent PNP member, it shall within three (3) working days, issue summons 

requiring the respondent to submit his answer to the complaint within five (5) days from 

receipt of said summons. Thereafter, with or without said answer, the Regional IAS shall 

schedule the case for formal investigation where all the parties shall be duly notified. In 

cases taken cognizance of and directly filed with the National and Regional IAS, the same 

procedure shall apply; Provided, however, that the Inspector General may, in the interest 

of justice, direct the Regional IAS Office to forward the records of any case to the National 

IAS for investigation and summary hearing. 

Section 9. Effect of Failure to Submit Answer/Counter-Affidavit - Failure of the 

respondent to submit an answer in the pre-charge and formal investigation within the prescribed 

period shall be considered as a general denial of the charges filed against him, whereupon, 

the investigation shall proceed ex-parte. 

Section 10. Preventive Suspension - Based on the findings of the existence of probable 

cause, the National and Regional IAS may preventively suspend the respondent PNP member 

under any of the following circumstances: 

a. Where the administrative charge is serious; 

b. Where the respondent is harassing the complainant and/or any of his witnesses, provided 

however, that the preventive suspension shall not exceed ninety (90) days otherwise, he 

shall be automatically reinstated into the service; 

c. For causes provided under Section 39, RA 8551; 

d. For such causes analogous to the above. 

Such orders for preventive suspension shall be coursed thru the PNP office concerned 

for implementation. 

Section 11. Lifting of Preventive Suspension - The preventive suspension of the 

respondent shall be lifted only on the following grounds: 

a. In the exigency of the service as certified to by the respondentís immediate superior; 

b. After the complainant has rested his case; and 

c. Failure to resolve the case within the period of ninety (90) days. 

FORMAL HEARING 

Section 12. Nature of Proceedings - Proceedings before the IAS shall be summary in 

nature and shall be conducted by duly designated summary hearing offices of the national or 

regional IAS office which shall be terminated within fifteen (15) working days from the date 

of initial hearing. 

Section 13. Preliminary Conference - After the submission of respondentís answer or 

after the lapse of the reglementary period for the respondent to submit his answer, the


National or Regional IAS shall set the case for preliminary conference. The said preliminary 

conference shall be devoted solely for the following purposes: 

a. 1. Identification and Simplification of the issues; 

2. Admissions and stipulation of facts; 

3. Marking of documentary evidence, if any; 

b. After the preliminary conference, the case shall be deemed submitted for resolution on the 

basis of the evidence on record and such additional evidences presented during the 

preliminary conference. 

The parties shall submit a position paper/memorandum within ten (10) days from the 

date of the termination of the preliminary conference attaching therewith the affidavits of 

their respective witnesses and all their documentary evidence. With or without said position 

paper/memorandum, the case shall be resolved on the basis of the records of the 

Preliminary Conference and other documents on record after the lapse of the ten (10) 

day period. 

c. The hearing officer may at his option set the case for clarificatory questions on the parties 

litigants or their witnesses on matters or issues which need to be clarified before the case 

is deemed submitted for resolution. 

Section 14. Effect of Complainantís Failure to Appear - The failure of the complainant 

to appear during the preliminary conference for at least three (3) scheduled hearing despite 

due notice shall constitute a ground to dismiss the complaint for failure to prosecute. However, 

if the culpability of the respondent can be proven by evidence other than the allegations of 

the complainant, the preliminary conference shall proceed even in his absence, it being 

understood that the withdrawal of the complainant or the execution of an affidavit of assistance 

does not result in the outright dismissal of the case filed. 

Section 15. Motion for Postponement - No motion for postponement shall be entertained 

except for extremely meritorious grounds such as illness or physical incapacity of the parties 

or counsels. 

Section 16. Where parties are not represented by counsel - It is the duty of the 

Summary Hearing Officer to ask classificatory questions of all witnesses where one or both 

parties are not represented by counsel. 

Section 17. Period To Render Decision - The Inspector General, or the Director of the 

Regional IAS shall render his decision in writing within twenty (20) days after the lapse of the 

period for the submission of the memorandum with or without said memorandum. 

Section 18. Contents of the Decision - The decision shall contain the names of the 

parties, the offense charged, a brief statement of the material and relevant facts, the findings 

and conclusion, the disposition and the applicable laws, rules and regulations obtaining in 

the case. 

Section 19. Service of the Decision - The decision of the National and Regional IAS 

shall be served to the respondent either personally or by registered mail at the respondentís

444 


place of assignment or at the address reflected in his Personal Data Sheet and to the 

complainant at his address as appearing in the record. Proof of such service shall be 

attached to the records of the case. A copy of the decision shall be coursed to the PNP 

office concerned for issuance of implementing orders subject to the provisions of Sec. 49(b) 

of RA 8551. 

Where the parties are represented by counsel, the decision shall be served to their 

respective counsel. Such service to counsel shall be deemed service to the parties. 

Section 20. Motion for Reconsideration - Any aggrieved part may file a Motion for 

reconsideration within ten (10) days from receipt of the copy of the decision. Only one 

motion for reconsideration shall be allowed. 

APPEALS 

Section 21. Appeal - Any aggrieved party may file his appeal from the decision of the 

Regional Internal Affairs Service to the Office of the Inspector General within ten (10) days 

from receipt of the decision or upon receipt of the resolution denying his motion for 

reconsideration. Decisions of the Inspector General may be appealed by the aggrieved 

party to the National Appellate Board (NAB) of the National Police Commission within the 

same period in cases where the penalty imposed is DISMISSAL from the service, DEMOTION 

or FORCED RESIGNATION. 

Section 22. Finality of Decision - A decision of the National and Regional IAS Imposing 

upon respondent PNP member the penalty of dismissal from the service, demotion in rank or 

forced resignation shall be immediately executory. However, in the event that the respondent 

is exonerated on appeal he shall be immediately reinstated to the service without loss of rank 

and seniority and with entitlement to the payment of back salaries, allowances and other 

benefits which he failed to receive. In the case of demotion in rank, respondent PNP member 

shall be immediately restored to his former rank with payment of difference in salary which 

he failed to receive. 

Section 23. Record of Proceedings - There shall be a record of proceedings containing 

a substantial account of the hearing conducted and duly certified to as correct by the 

Hearing Officer. 

PENALTIES 

Section 24. Imposable Penalties - The following are the penalties that may be imposed 

in police administrative cases: 

a. Suspension 

b. Demotion of not more than one rank or Forced resignation 

c. Dismissal 

Section 25. Schedule of Penalties - The penalties for light, less grave and grave 

offense shall be made in accordance with the following schedules:


A. For Light Offenses: 

Minimum period - 1 to 10 days 

Medium period - 11 to 20 days 

Maximum period - 21 to 30 days 

B. For Less Grave Offense: 


Medium period - 46 to 60 days 

Maximum period - 61 to 90 days 

C. For Grave Offense 


Medium period - Demotion/Forced Resignation 

maximum period - Dismissal 

Section 26. Qualifying Circumstances - In the determination of the penalties to be 

imposed. mitigating and aggravating circumstances attendant to the commission of the offense 

shall be considered. 

The following are mitigating circumstances: 

a. physical illness 

b. good faith 

c. length of service in the government 

d. analogous circumstances 

The following are aggravating circumstances: 

a. taking advantage of official position 

b. taking undue advantage of subordinate 

c. undue disclosure of confidential information 

d. use of government property in the commission of the offense 

e. habituality

446 


f. offense is committed during office hours and/or within the premises of the working office 

or building 

g. employment of fraudulent means to commit or conceal the offense 

h. analogous circumstances 

Section 27. Guidelines in the Application of Penalties - The imposition of the penalty 

shall be made in accordance with the manner herein provided: 

a. Like penalties shall be imposed for like offense and only one penalty shall be imposed for 

each case. ìEach caseî means one administrative case which may involve one or more 

charges or counts; 

b. The minimum of the penalty shall be imposed where only mitigating and no aggravating 

circumstances are present; 

c. The medium of the penalty shall be imposed where no mitigating and aggravating 


d. The maximum of the penalty shall be imposed where only aggravating and no mitigating 


e. Where aggravating and mitigating circumstances are present, rule (b) shall be applied 

where there are more mitigating circumstances present; rule (c) shall be applied where 

the circumstances equally offset each other; and rule (d) shall be applied when there are 

more aggravating circumstances; 

f. If the respondent is found guilty of two (2) or more charges or counts, the penalty to be 

imposed should be that corresponding to the most serious charge or count and the rest 

shall be considered as aggravating circumstances; 

g. In the appreciation of any mitigating circumstance in favor of the respondent or of any 

aggravating circumstance against him, the same must be invoked or pleaded by the party 

concerned, otherwise, such circumstances shall not be considered in the determination 

of the penalty to be imposed; 

h. If the disciplinary authority, after conducting the requisite investigation, and based on the 

evidence submitted during the hearing, shall find that the penalty imposable to respondent 

is beyond its jurisdiction, case must be referred, together with the entire records of the 

proceedings, to the proper disciplinary authority for appropriate disposition. 

Section 28. Administrative Disabilities Inherent in Certain Penalties 

a. The penalty of dismissal, which result in the separation of the respondent from the service, 

shall carry with it that of cancellation of eligibility, forfeiture of leave credits and retirement 

benefits, and the disqualification for re-employment in the police service; 

b. The penalty of suspension, which consists in the temporary separation or cessation from 

work of the respondent for the duration of the sanction, shall carry with it that of 

disqualification for promotion corresponding to the period of suspension.


FINAL PROVISION 

Section 29. Coverage - These Amended Guidelines shall govern all investigations 

before the IAS and shall remain in force and effect unless revised, revoked or otherwise 

amended. 

Section 30. Effectivity - These Amended Guidelines shall take effect on date of issuance 

hereof. 

Adopted: 2 Apr. 2001 

(SGD.) ATTY. ALEXIS C. CANONIZADO 

Inspector General 

NATIONAL TELECOMMUNICATIONS COMMISSION 


Memorandum Circular No. 01-01-2002 

Mandatory Installation of NAVTEX Receiver and Satellite 

EPIRB as Additional Navigational Aids Equipment of Ship 

Radio Stations Engaged in Coastwise Trade 

Pursuant to the provisions of the 1974 International Convention on Safety of Life at Sea 

(SOLAS) and its amendments; and relevant Philippine radiocommunications laws, rules and 

regulations on maritime communication, specifically that of Department Orders 2001-46 and 

2001-47, the National Telecommunications Commissions (NTC) hereby promulgates the 

following rules and guidelines in the installation of NAVTEX receiver and EPIRB navigational 

aids, to wit: 

I. DEFINITION OF TERMS 

1.1Global Positioning System (GPS) - A satellite-aided measurement system that enables a 

ship to locate its position anytime, anywhere expressed in degrees and minutes of latitude 

and longitude. 

1.2 NAVTEX - is a system for the broadcast and automatic reception of maritime safety 

information such as but not limited to navigational/meteorological warnings, search and 

rescue information, urgent information by means of narrow band direct printing telegraphy. 

1.3 Satellite Emergency Positioning Indicating Radio Beacon (EPIRB) - an earth station in 

the mobile-satellite service, the emissions of which are intended to facilitate search and 

rescue operations. A radio beacon when activated transmits the geographical coordinates 

of the unit in distress expressed in degrees and minutes of latitude and longitude intended 

to be received by the COSPAS-SARSAT System.

448 


1.4 COSPAS-SARSAT System - A satellite-aided search and rescue system for locating 

distress vessels by the use of low-altitude near polar-orbiting satellites and designed to 

locate distress satellite EPIRB beacons. 

II. SCOPE/COVERAGE 

The following vessels/ships are required to be equipped with the NAVTEX Receiver and 

Satellite EPIRB navigational equipments 

2.1 Passenger and General Cargo Vessels 150 Gross Tonnage and above; 

2.2 Tankers and High Speed Crafts; 

2.3 Fishing Vessels 75 Gross Tonnage and above; and 

2.4 Tugboats Pushing Pulling Barges. 

III. LICENSING REQUIREMENTS 

All navigational aids equipment must be duly licensed by the National 

Telecommunications Commission (NTC) in compliance with existing maritime radio laws, 

rules and regulations and this Circular. 

IV. DATE OF MANDATORY COMPLIANCE 

All vessels/ships referred to in No. II of this circular is mandated to comply with the 

installation and the maintenance at all times of a NAVTEX Receiver and Satellite EPIRB 

navigational equipment, commencing from the hereunder specified dates: 

4.1 Installation of the Satellite EPIRB - on or before 30 June 2002; 

4.2 Installation of the NAVTEX Receiver - on or before 30 September 2002. 

No extension of the period shall be granted. Non-compliance with this mandatory date 

requirement shall subject the owner of ship/vessel to administrative and penal sanctions, in 

accordance with law. 

V. ADMINISTRATIVE AND PENAL SANCTIONS 

Non-compliance and/or violation of any of the provisions of this Circular and other 

laws, rules and regulations of this Commission shall subject the violator/respondent to the 

imposition of appropriate administrative and penal sanctions, in accordance with law. 

VI. REPEALING CLAUSE 

This supersedes any and all existing Orders, Circulars, Memoranda or any part thereof 

inconsistent herewith. 

VII. EFFECTIVITY 

This circular takes effect fifteen (15) days after publication in a newspaper of general 

circulation and three (3) certified copies furnished the UP Law Center. 



(SGD.) ELISEO M. RIO, JR. 

Commissioner 

(SGD.) KATHLEEN G. HECETA (SGD.) ARMI JANE R. BORJE 

Deputy Commissioner Deputy Commissioner 


--o0o-- 


Clarification on MC11-12-2001 (SUF) 

The Commission hereby issues the following clarifications to Sections 4.1 of MC 11- 

12-2001 (Spectrum User Fees): 

The SUF rates shall cover both transmit and receive, i.e., PhP500,000/MHz shall 

mean one (1) MHz of both transmit and receive. For a 20MHz (total of both TX 

and RX), the total SUF shall be PhP5,000,000.00 This interpretation shall be 

applied to all other rates covered by section 4.1 of MC11-12-2001. 

In view of the proximity of the deadline for the payment of the SUF, the deadline 

for payment of the SUF covered by MC11-12-2001 for this year only shall be on 

28 February 2002. Henceforth, payments shall be made not later than 31 January 

of each year. 

Any circular, memorandum or order or parts thereof inconsistent herewith are deemed 

amended, revised or repealed. 

This circular shall take effect fifteen (15) days after publication in a newspaper of 

general circulation and three (3) certified copies provided the UP Law Center. 



Commissioner 




--o0o-- 


Suspension of the Implementation of the 4-Digit 

Exchange Codes for Area Code ì02î

450 


Based on the position paper submitted by the GMM LEC Technical Committee created 

11 December 2001, in the interest of public service, the Commission hereby suspends the 

implementation of Memorandum Circular No. 9-10-2001, until further notice. 

In furtherance thereof, PTEs are directed to form a technical committee to continue the 

study of COCs and number blocks utilization to address the need to implement the 4-digit 

exchange codes and to recommend necessary measures to optimize the utilization of COCs. 

The committee shall submit a yearly report and recommendation or sooner as maybe 

necessary. 

This Circular takes effect fifteen (15) days after publication in a newspaper of general 

circulation and three (3) certified true copies furnished the UP Law Center. 



Commissioner 



OFFICE OF THE PRESIDENT 



Consolidated Functions of the Abolished Government 

Corporate Monitoring and Coordinating Committee 

(GCMCC) Transferred to the Department of Finance (DOF) 

WHEREAS, Administrative Order No. 16 abolished the GCMCC and transferred its 

functions to the DOF; 

WHEREAS, pursuant to said A.O. No. 16, the DOF shall review, revise and consolidate, 

as may be appropriate, all Presidential issuances regarding the GCMCC and such consolidated 

functions to be performed by DOF shall be submitted to the President for approval. 

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, 

by virtue of the powers vested in me by law and pursuant to the recommendation of the 

Secretary of Finance, hereby order: 

SECTION 1. Definition of Terms ñ 

a. Government-Owned and/or Controlled Corporation (GOCC) ñ As used herein, a 

GOCC is a corporation created by special law or incorporated and organized under the


Corporation Code in which government, directly or indirectly, has ownership of the majority 

of the capital or voting stock. Any subsidiary of a GOCC shall also be deemed a GOCC. 

A Corporation , whether created by special law or incorporated and organized under 

the Corporation Code, where the government has majority control and which is explicitly 

intended under the law and government policy for ultimate transfer to private ownership 

under certain specified conditions, shall be considered a GOCC until it is transferred to 

private ownership and control. 

b. Oversight Agencies ñ Consist of the Department of Budget and Management (DBM), 

National Economic Development Authority (NEDA), Commission on Audit (COA), Bangko 

Sentral ng Pilipinas (BSP), Department of Finance (DOF) and the department to which 

GOCCs are assigned to by law. 

SEC. 2. Additional Functions of the DOF ñ The DOF shall, in addition to its existing 

functions, perform the powers and functions of the abolished GCMCC as follows: 

(a) As a central coordinating monitoring and performance evaluation entity: 

1. Develop guidelines for monitoring of financial and operations performance of GOCCs 

and provide guidance in the preparation of corporate plans; 

2. Establish a Performance Evaluation System (PES) based on relevant financial, economic 

and operational indicators, and performance targets in accordance with performance 

agreements between the GOCC and the President as recommended by the DOF; 

3. In coordination with the other Oversight Agencies, maintain and update the existing Integrated 

Corporate Reporting System (ICRS) for GOCC reports to the Oversight Agencies to avoid 

duplication of reports and combine the essentials into a single set of reports. Proposals 

from other Oversight Agencies to amend, add or further delete reporting formats shall be 

coordinated with the DOF; and 

4. Require GOCC to prepare and submit regular reports and conduct periodic review and 

appraisal of performance. 

(b) As a policy coordinating and recommending body: 

1. Formulate policies, recommendations and guidelines relevant to government corporate 

operations including dispositive action/creation of new GOCCs/subsidiary, acquisition 

and dissolution of GOCCs for approval by the President; 

2. Review and evaluate all proposals, recommendations and studies pertaining to the 

government corporate sector before submission to the President; and 

3. Review and evaluate all financial aspects of proposed and existing minority investments or 

joint venture undertaking of GOCCs. 

(c) Other functions:

452 


1. Coordinate the classification of GOCCs with the other Oversight Agencies according to 

financial and sectoral groupings relative to the formulation of differential treatment of 

GOCCs by Oversight Agencies; 

2. Recommend to the President financial sanctions, restrictions and controls on GOCCsí 

non-compliance with the PES and ICRS such as, but not limited to, withholding of budgetary 

releases; and 

3. Review and evaluate conversion into equity of loans previously extended by a GOCC to a 

private corporation which will result in majority ownership by GOCC. 

SEC. 3. The Department of Finance shall issue the necessary implementing guidelines 

of this Order. 

SEC. 4. All orders, administrative issuances, rules and regulations or parts thereof 

inconsistent with this Order are hereby repealed or modified accordingly. 

SEC. 5. This Administrative Order shall take effect immediately upon approval. 



By the President: 

(SGD.) ALBERTO G. ROMULO 

Executive Secretary 

óo0oó 

Executive Order No. 58 

Authorizing the National Power Corporation to Dispose 

of its 1.6 Hectare property Located in Sitio Pajo, Baesa, 

Quezon City to its Bonafide Occupants 

WHEREAS, in line with the priority concern of the present Administration to provide 

housing to deserving landless and homeless families and ensure security of tenure of informal 

settler families occupying government lands which are no longer utilized for its intended 

purposes; 

WHEREAS, the National Power Corporation (NAPOCOR) owns a property in Sitio 

Pajo, barangay Baesa, Quezon City consisting of 1.6 hectares covered by TCT No. 65721, 

which is being occupied by more or less 300 informal settler faamilies; 

WHEREAS, the NAPOCOR has expressed its intention to segregate and dispose of 

these properties to its present bonafide occupants under the socialized housing program of 

the government, as indicated in Resolution No. 99-03 of the NAPOCOR Board;


NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, 

by virtue of the powers vested in me by law, do hereby authorize NAPOCOR to effect the 

disposition of the above described property to benefit its bonafide occupants. 

It is hereby further ordered that an inter-agency committee be formed to formulate the 

implementing guidelines for the proper disposition of said property. The inter-agency committee 

shall be chaired by NAPOCOR and co-chaired by HUDCC, with the following as members: 

Presidential Commission for the Urban Poor (PCUP), Quezon City government, and Peopleís 

Organizations and Non-Government Organizations (POs and NGOs) as may be identified by 

the chair and co-chair. 

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the 

Republic of the Philippines to be affixed. 






óo0oó 


Further Strengthening the Philippine Council for 

Sustainable Development (PCSD) 

WHEREAS, to ensure that the commitments made in the Rio de Janiero Declaration 

are fulfilled and to realize the countryís sustainable development goals, the PCSD was 

established on 01 September 1992 through Executive Order No. 15; 

WHEREAS, to strengthen PCSD, the expansion of its membership as well as the 

establishment of local councils for sustainable development were provided for through the 

issuance of Executive Order No. 370 (s. 1996); 

WHEREAS, in order to operationalize sustainable development at the local level, 

Memorandum Order No. 47 (s. 1999) was issued mandating local government units (LGUs) 

to formulate and implement their sustainable integrated area development plans or Local 

Agenda 21 with the assistance of concerned government agencies; 

WHEREAS, in light of changing circumstances and emerging issues on sustainable 

development locally and globally, there is an urgent need to pursue new interventions through 

a more responsive PCSD structure; 

WHEREAS, for the PCSD to be more effective and responsive in ensuring the realization 

of the governmentís sustainable development goals, there is a need to streamline and define 

its core functions and membership, keeping in mind the various agencies in government

454 


whose functions are integral components of the overall government sustainable development 

operational thrusts; 

WHEREAS, there is a need for PCSD to focus on strategic interventions that have 

significant and catalytic impact on sustainable development; 

WHEREAS, it is necessary for PCSD as the lead instrumentality responsible for 

mainstreaming sustainable development in national government and affiliated agencies, 

Congress, LGUs, as well as existing multi-stakeholder governance mechanisms. 


by virtue of the powers vested in me by law, do hereby order: 

SECTION 1. Further Strengthening the PCSD. The Philippine Council for Sustainable 

Development, hereinafter referred to as the Council, is hereby further strengthened, structurally 

and functionally, in accordance with the provisions of this Executive Order. 

SEC. 2. Composition of the Council. 

1. The core members from government shall be composed of Secretaries of the following 

Departments as permanent principal members, with an Undersecretary as alternate. 

a. National Economic and Development Authority; 

b. Department of Environment and Natural Resources; 

2. Civil Society, composed of peopleís organizations, non-government organizations and 

sectoral/major groups representation shall have five (5) Council members selected by 

their community, based on their commitment to sustainable development concerns, through 

a process designed by them. These may include the following groups: women, youth, 

farmers, fisherfolk, indigenous people, Moro and Cordillera people, urban poor, persons 

with disabilities, academe, professionals, media, religious groups and NGOs. 

3. Labor and business shall have one (1) representative each in the Council. Representation 

shall, likewise, be decided through a process to be designed by them. 

The Chairperson of the Council shall be the Secretary of Socio-Economic Planning 

and NEDA Director-General. The Secretary of the Department of Environment and Natural 

Resources (DENR) shall be the Vice-Chairperson. 

SEC. 3. Terms of Office and Meetings. The term of office of members shall be coterminus 

with their appointment or election in their respective departments or organizations. 

The Council shall meet quarterly, or as frequently as may be deemed necessary. 

Special meetings may be convened at the call of the Chairperson or by a majority of the 

members of the Council. In the absence of the Chairperson, the Vice-Chairperson shall 

preside. In case any civil society, business or labor sector member of the Council cannot 

attend the meeting, he or she shall be represented by the alternate to be designated through 

their respective selection process for the purpose.


SEC. 4. Powers and Functions of the Council. 

1. To review and ensure the implementation of the commitments made by the Philippines in 

the light of the United Nations Conference on Environment and Development (UNCED) 

and its follow-up processes; 

2. To act as the coordinating mechanism with the United Nations Commission on Sustainable 

Development (UNCSD) and the Governing Bodies or Secretaries of other related multilateral 

conventions, through the Department of Foreign Affairs (DFA); 

3. To establish guidelines and mechanisms that will ensure that the sustainable development 

principles. As embodied in the Rio Declaration, Agenda 21, and the Philippine Agenda 

21, are integrated in the formulation of national, regional and local development policies, 

plans and programs; 

4. To formulate policies and recommend new actions to appropriate bodies on sustainable 

development issues focusing on the environment dimensions of social and economic 

interventions and the social and economic dimensions of environment interventions; 

5. To review and monitor plans, policies, program and legislation on sustainable development 

to promote efficiency and timeliness of their execution and ensure consistency and 

coordination among the Legislative and Executive branches of government, local government 

units, civil society, business, labor and other concerned entities/sectors, and existing 

multi-stakeholder governance mechanisms; 

6. To establish a networking mechanism to link the Council, with local and international 

organizations involved in sustainable development; 

7. To create, reorganize or abolish committees of the Council, ad-hoc or permanent, and to 

define their structure, functions and limitations; 

8. To submit its annual work program with actionable and time bounded targets and regularly 

report to the President the status of implementation and achievement of specific targets 

thereof; and 

9. To perform such other acts which are necessary to carry out its mandated functions and 

responsibilities. 

SEC. 5. Participation of Other Government Agencies in the Council. The Council can 

call upon other government agencies and instrumentalities, civil society, business and labor 

sector organizations to participate in Council business, including its meetings, if so warranted 

by conditions as may exist from time to time. For this purpose, other government agencies 

shall identify a PCSD focal officer not lower than a rank of Director who shall coordinate 

their agencyís participation in PCSD concerns. 

SEC. 6. Secretariat. The Council shall be assisted by a Coordinating Secretariat which 

shall be based at the NEDA, the composition of which shall be determined by the Director- 

General and a Counterpart Secretariat, the composition of which shall be determined by the 

Civil Society Counterpart Council for Sustainable Development (CSCCSD).

456 


SEC. 7. Budget. There shall be provided in the General Appropriations Act (GAA) a 

regular line item under the NEDA budget to cover the operational requirements of the Council 

subject to the prescribed budgetary guidelines, Other member-agencies of the Council shall 

also include a line item in the GAA under their respective agency budgets to cover the cost of 

their activities related to PCSD. 

SEC. 8. Repealing Clause. All Executive Orders, Laws, issuances, rules and regulations, 

or parts thereof, which are inconsistent with the provisions of this Order are hereby repealed 

or amended accordingly. 

SEC. 9. Effectivity. This Executive Order shall take effect immediately. 






--o0o-- 

Memorandum Order No. 46 

Directing the Housing and Urban Development Coordinating 

Council (HUDCC) to Relocate/Provide Alternative Housing Sites 

for the Informal Dwellers Within the Philippine National Railways 

(PNR) Right-of-Way in All Areas to be Affected by the PNR 

Rehabilitation and Modernization 

WHEREAS, the Government recognizes the importance of an efficient rail system for 

providing a reliable means of transportation to the public; 

WHEREAS, the Government intends to pursue an accelerated plan for the upgrading, 

modernization and development of rail transportation services to provide a convenient, efficient 

and affordable means of transport for passengers and freight; 

WHEREAS, House Bill No. 3206 provides for a financial structure to pursue the above 

mentioned rehabilitation of PNR lines; 

WHEREAS, it is essential to clear the rail right-of-way of obstruction and encroachment 

before the said plan can be successfully implemented; 

WHEREAS, the Housing and Urban Development Coordinating Council is the agency 

of the government that plans and coordinates all housing related projects of the government 

throughout the country. 


by virtue of the powers vested in me by law, do hereby order the following;


SECTION 1. In order to expedite the much needed rehabilitation of the Philippine 

National Railways (PNR) lines, the HUDCC is hereby directed to relocate and provide housing 

sites for the informal dwellers who have settled within the PNR right-of-way. 

SECTION 2. All government agencies and entities, including the National Housing 

Authority, as well as all local government units involved in the relocation and provision of 

alternative housing units for affected informal dwellers are directed to coordinate with the 

HUDCC and provide the necessary support and cooperation required. 

SECTION 3. This Order shall take effect immediately. 






óo0oó 


Adoption of the Hybrid Rice Technology As Strategy to Achieve 

Rice Sufficiency and Setting Program Targets Therefor 

WHEREAS, the countryís food security depends primarily on its ability to achieve rice 

sufficiency. 

WHEREAS, the countryís annual population growth rate is at 2.3% while rice yields 

over the last 15 years have grown only by 1.9%. 

WHEREAS, highly populated countries, notably China and India, have been utilizing 

with proven success the hybrid rice technology; 

WHEREAS, the development and promotion of the hybrid rice technology, as a 

continuing program towards rice sufficiency, need all the support of the public and private 

sectors; 


by virtue of the powers vested in me by law, do hereby authorize the Department of Agriculture, 

Department of Trade and Industry, the National Food Authority, and their respective allied 

agencies to accelerate and intensify the promotion of the utilization of the hybrid rice 

technology. 

In support thereof, the Department of Budget and Management shall accord priority to 

the allocation of funds to support the various components of the Hybrid Rice Program, and 

the research institutions in the country, especially the Philippine Rice Research Institute, 

shall focus its research agenda on the development of new hybrids.

458 


I urge the seed producers, the input suppliers, the providers of irrigation and 

mechanization technologies, the market intermediaries composed of millers, wholesalers, 

and retailers, and more particularly our farmers who will cultivate the rice hybrids to support 

and provide the critical mass to increase the utilization of the hybrid rice technology. 

The hybrid rice planting targets shall cover 135,000 hectares in 2002, 200,000 hectares 

in 2003, and 300,000 hectares in 2004 in the major irrigated rice producing provinces. 

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the 

Republic of the Philippines to be affixed. 






óo0oó 


Providing Amendments to MO No. 346 s. of 1996 ìAmending the 

Guidelines on the Car Development Program (CDP), the Commercial 

Vehicle Development Program (CVDP), and the Motorcycle Development 

Program (MDP)î as Amended by M.O. No. 473 s. of 1998 

WHEREAS, the Philippines, as member of the World Trade Organization (WTO), has 

committed to eliminate all laws, provisions, rules, regulations and guidelines that may run 

counter to the different Agreements under the auspices of the WTO to which the Philippines 

is a signatory, such as the Agreement of Trade-Related Investment Measures (TRIMS); 

WHEREAS, the Agreement on TRIMS mandates the elimination of laws, provisions, 

rules, regulations and guidelines that provide for local content (LC) and net foreign exchange 

earnings (NFEE) requirements as they are considered contrary to provisions thereof; 

WHEREAS, the Philippines was granted formal approval by the Council for Trade in 

Goods (CTG) for an extension of the applicability of the subject TRIMS for an additional 

period of 3 1 / 2 years from and after 1 January 2000, the original expiry date of the transition 

period for the elimination of TRIMS, subject to a required phase-out schedule; 


by virtue of the powers vested in me by law, do hereby declare the following amendments to 

the Motor Vehicle Development Programs; 

SECTION 1. Section 7.1 of Chapter 1 (CDP), Section 16.1 & 16.4 of Chapter II 

(CVDP) and Section 24.1 of Chapter III (MDP) are hereby amended to read:


ìParticipants of the CDP, CVDP and MDP shall comply with the following local content 

requirements: 

______________________________________________________________________________________________ 

Period CDP CVDP MDP 

1 & 11 1&11 111 IVA IVB IVC IVD-V Cat. A Cat.B 

Jan. 2, 2002 35% 39.37% 19.16% 18.76% 19.46% 11.839% 12.049% 39.375% 30.625 

until June 30, 2002 

____________________________________________________________________________________________________________ 

July 1, 2002 30% 33.750% 16.425% 16.08% 16.68% 10.148% 10.328% 33.750% 26.250% 

Until Dec. 31, 2002 

_____________________________________________________________________________________________________________ 

As of July 1, 2003 0 0 0 0 0 0 0 0 0 

____________________________________________________________________________________________________________ 

SEC. 2. Sections 10.2, 10.3 and 10.4 of Chapter 1 (CDP), Section 19.1 of Chapter 11 

(CVDP) and Section 26.1 of Chapter 111 (MDP) are hereby amended to read: 

ìParticipants of the CDP, CVDP, MDP will still be required to earn foreign exchange 

credits through the export of automotive products to be able to import CKDs. The net foreign 

earnings shall be recorded in ledger without bonus and the foreign exchange ratio (as a 

percentage of CKD import value) shall be as follows: 

_____________________________________________________________________________________________ 

Date CDP CVDP MDP 

_____________________________________________________________________________________________ 

Cat. 1 Cat. 11 Cat. 111 Cat 1 & 11 Cat. 111 & IV Cat. A & B 

_____________________________________________________________________________________________ 

Jan. 1, 2002 15% 55% 75% 15% 5% 15% 

until Dec. 31, 2002 

_____________________________________________________________________________________________ 

Jan. 1, 2003 15% 55% 75% 15% 5% 15% 

until June 30, 2003 

____________________________________________________________________________________________________________ 

As of July 1, 2003 0 0 0 0 0 0 

_____________________________________________________________________________________________________________ 

SEC. 3. Repealing Clause - All other executive orders, administrative orders, 

memorandum orders, and rules and regulations, or parts thereof inconsistent with the provisions 

of this Memorandum Order are hereby repealed or modified accordingly. 

SEC. 4. Effectivity - This Executive Order shall take effect immediately. 






--o0o--

460 



Declaring Portions of the Property of the Bases Conversion 

Development Authority Located in Fort Bonifacio and its 

Environs as Socialized Housing Sites and Providing for the 

Disposition Thereof to Qualified Occupants and Beneficiaries 


lands to deserving landless and homeless Filipinos, the President has issued a memorandum 

dated 05 February 2001, directing all heads of Government Departments, Agencies, 

Government-Owned and Controlled Corporations and their Instrumentalities to identify areas 

which may be identified for socialized housing purposes; 

WHEREAS, said Memorandum is in accordance with the policy of the present 

Administration of regularizing the land tenurial status of informal settlers occupying public 

lands; 

WHEREAS, the Bases Conversion Development Authority (BCDA), a government 

corporation created under Republic Act No. 7227, accelerated the conversion of the military 

reservations into other productive uses, and pursuant to the same law, was given the authority 

to dispose of these military camp to provide funds for their development and conversion to 

productive civilian use; 

WHEREAS, Republic Act No. 7227, transferred to BCDA the ownership, administration 

and control of a substantial portion of Fort Bonifacio consisting of 723.3 hectares; 

WHEREAS, a portion of the Fort Bonifacio property consisting of 119 hectares has 

been designated as the Bonifacio Housing and Information Technology Zone (BHIT Zone) 

pursuant to the Master Development Plan for the area which was updated pursuant to A.O. 

No. 25, series of 1998; 

WHEREAS, portions of the said BHIT Zone are currently occupied by informal dwellers; 

WHEREAS, another portion of the Fort Bonifacio property identified as Lupang 

Katuparan covering an area of approximately 48 hectares is currently being developed as 

land-based housing site to accommodate the families to be affected by BCDA Projects; 

WHEREAS, the Pamayanang Diego Silang area located along the C-5 Road with a 

total of 2,880 units in 5-storey medium rise building spread out over 23.86 hectares was 

developed for socialized housing purposes primarily to accommodate the families to be 

affected by BCDA Project as well as military, BCDA and PNP/DILG/NAPOLCOM personnel; 

WHEREAS, the area known as Philippine Centennial Village located along the C-5 A 

Road with a total of 1,140 units in 5-storey medium rise buildings covering 13.08 hectares 

was developed for socialized housing purposes primarily to accommodate the families to be 

affected by BCDA Projects. 

WHEREAS, the BCDA as contained in its Board Resolution No. 2002-01-011 has 

signified its approval to dispose of approximately 35 hectares of occupied portions of the


BHIT Zone, Pamayanang Diego Silang covering 13.08 hectares, including 2,880 residential 

units in medium rise buildings, Philippine Village Centennial Village covering 23.86 hectares 

including 1,140 residential units in medium rise buildings, and approximately 48 hectares at 

Lupang Katuparan, to qualified occupants and beneficiaries. 



SECTION 1. Declaration as Socialized Housing Sites - In view of the need of informal 

settlers to acquire home ownership and shelter security, the following portions of BCDAís 

property located in Fort Bonifacio and its environs are hereby declared as socialized housing 

sites open for disposition to qualified occupants and beneficiaries: 

a) A portion of the BHIT Zone Property - 35.00 hectares 

b) Lupang Katuparan - 48.00 hectares 

c) Pamayanang Diego Silang - 23.86 hectares 

d) Philippine Centennial Village - 13.08 hectares 

---------------------- 

Total 119.94 hectares 

This declaration shall include in the case of Pamayanang Diego Silang, 2,880 Residential 

Units in 5-storey medium rise buildings found therein, and, in the case of Philippine Centennial 

Village, 1,140 residential units in 5-storey medium rise buildings therein. 

The actual metes and bounds of the foregoing properties covered by this Order shall, 

as necessary, be subject to final survey. 

SEC. 2. Implementation by Housing and Urban Development Coordinating Council 

(HUDCC). The implementation of this Order shall be the responsibility of HUDCC as lead 

agency. In this connection, BCDA shall ensure the smooth turnover of the administration and 

control of the above-identified areas subject of this Order to HUDCC for this purpose. 

SEC. 3. Executive Committee. An Executive Committee shall be created to assist 

HUDCC in implementing this Order. This committee shall be composed of HUDCC as Chair, 

and the following as members: BCDA, Department of Environment and Natural Resources 

(DENR), Presidential Commission for the Urban Poor (PCUP), Department of National 

Defense/Armed Forces of the Philippines (DND/AFP) in so far as military personnel residing 

in the areas covered, the Municipal Government of Taguig, and the Congressional 

Representative of Taguig. 

The Executive Committee shall, among others, ensure that the actual metes and bounds 

of the properties covered by this Order are established through final survey, as necessary, 

and that the qualifications and identification of beneficiaries, beneficiary guidelines, and a 

fair lot/unit pricing and payment scheme, are established and implemented. The Committee 

shall take into consideration existing agreements with the different peopleís organizations in 

the area. 

SEC. 4. Funding. The Executive Committee shall formulate a budget to implement this 

Order taking into account the funding requirements for the various activities (social preparation, 

census and tagging, ground survey, mobilization, etc.) that must be undertaken in connection

462 


hereof. The Department of Budget and Management shall ensure the provision of the funding 

requirements of the Executive Committee. 

SEC. 5. Separability Clause - In the event that any provision hereof is declared invalid 

by any competent court or tribunal, the other provisions hereof unaffected thereby shall 

remain in full force and effect. 







--o0o-- 


Declaring the Property of the Government Service Insurance 

System (GSIS) Located in Pureza, Quintana, Ampil and De Dios Street, 

Sampaloc, Manila as Socialized Housing Sites and Providing for 

the Disposition Thereof to Qualified Occupants and Beneficiaries 


lands to deserving landless and homeless Filipinos, all heads of departments, agencies, 

government-owned and controlled corporations and their instrumentalities have been directed 

to identify areas which may be suitable for socialized housing purposes; 

WHEREAS, corollary to this concern is the policy of the present Administration of 

regularizing the land tenurial status of informal settlers occupying public lands; 

WHEREAS, the Government Service Insurance System (GSIS) owns certain parcels 

of land located in Pureza, Quintana, Ampil and De Dios Streets, District of Sampaloc, City of 

Manila, covered by Transfer Certificates of Title No. 110310 and 197053, with an aggregate 

area of fifteen thousand one hundred thirty six (15,136) square meters, more or less; 

WHEREAS, the GSIS has endorsed the disposition of the aforesaid property as a 

resettlement site in favor of the informal settlers and bonafide actual occupants thereof. 



SECTION 1. Declaration as Socialized Housing Sites - In view of the need of informal 

settlers to acquire home ownership and shelter security, the aforesaid property of GSIS in 

Sampaloc, Manila is hereby declared as socialized housing sites open for disposition to 

qualified occupants and beneficiaries.


It shall be strictly understood that the development of the area as a socialized housing 

project shall be pursued without obstructing the on-going clearing project being undertaken 

by the Department of Public Works and Highways (DPWH) along Estero de Valencia and 

subject to compliance with the pertinent provisions of the Sanitation Code (P.D. 856) and its 

implementing rules and regulations. 

SEC. 2. Pricing and Payment Scheme and Beneficiary Guidelines. The qualifications 

of beneficiaries, proposed lot pricing, payment scheme, and beneficiary guidelines and 

other conditions shall be established, evaluated and implemented by an Executive Committee 

composed of the GSIS, as chair, with the following as members: Housing and Urban 

Development Coordinating Council (HUDCC), Presidential Adviser for Special Concerns, 

Presidential Commission for the Urban Poor (PCUP) and Non-Government Organizations 

(NGO) as may be identified by the chair. The Committee shall ensure that a fair pricing and 

payment scheme for the beneficiaries shall be instituted. 

SEC. 3. Separability Clause. In the event that any provision hereof is declared invalid 

by any competent court or tribunal, the other provisions hereof unaffected thereby shall 

remain in full force and effect. 







--o0o-- 


Transferring to the Department of Public Works and Highways 

the Oversight Functions on the Presidentís Bridge Program 

WHEREAS, Memorandum Order (M.O.) No. 234, s. of 1994, as amended established 

the Oversight Committee on the Presidentís Bridge Program (PBP) to serve as the policy 

coordinating body for the implementation of the program; 

WHEREAS, owing to the need to reduce special project committees and in order to 

establish clear lines of accountability, the Oversight Committee on the PBP was abolished 

and its primary functions transferred to the Executive Secretary pursuant to M.O. No. 26, s. 

of 2001 as amended; 

WHEREAS, the oversight functions on the PBP involve technical matters which are 

within the DPWHís area of expertise;

464 


WHEREAS, under Section 31, Chapter 10, Title III, 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 

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: 

SECTION 1. Transfer of Oversight Functions. The functions assigned to the Executive 

Secretary in connection with the Presidentís Bridge Program (PBP) under Memorandum 

Order No. 26, series of 2001, as amended, are hereby transferred to and shall be assumed 

by the Secretary of the Department of Public Works and Highways (DPWH). 

SEC. 2. Primary Responsibility. The DPWH Secretary shall oversee and monitor the 

effective and efficient implementation of the projects under the PBP, including the Salam 

ìPeaceî Bridge Project, the Tulay ng Pangulo sa Barangay Project, and the Tulay ng Pangulo 

sa SZOPAD Project. 

SEC. 3. Bridge Site Selection. The selection of eligible bridges shall be made by the 

Executive Secretary. 

SEC. 4. Monthly Accomplishment Reports. The DPWH Secretary shall submit to the 

Executive Secretary monthly accomplishment reports on the projects covered by the PBP. 

SEC. 5. Presidentís Bridge Program Office. A Presidentís Bridge Program (PBP) 

Office shall be established under DPWH as a special program management unit to assist the 

DPWH Secretary in his functions pursuant to this Order. The PBP Office shall have the 

following functions: 

(a) Plan, implement and oversee the operational details and administrative arrangements 

necessary for the effective and efficient implementation of the Program consistent with 

the principles of transparency and accountability; 

(b) Conduct a comprehensive review of all existing loan agreements and submit its 

recommendations to the DPWH Secretary with the end in view of maximizing the utilization 

of the ODA funds; 

(c) Prepare monthly accomplishment reports to the DPWH Secretary on the status of the 

projects under the PBP; 

(d) Obtain support and assistance from appropriate departments, bureaus, governmentowned 

and controlled corporations, local government units, regional development councils, 

private organizations and individuals for the attainment of the Programís objectives; and 

(e) Execute and perform such duties which the DPWH Secretary may order from time to 

time. 

SEC. 6.Funding. The Secretary of Budget and Management shall regularly release the 

allotments and disbursement authority intended for the projects under the Presidentís Bridge 

Program, as authorized in the General Appropriations Act, covering both loan proceeds and 

local counterpart funds.


SEC. 7. Internal Audit. An internal auditor for the PBP shall be appointed by the 

Executive Secretary. Such internal auditor shall have the duty, among others, of reviewing 

and checking the disbursements made from the proceeds of applicable loan agreements as 

well as the Government of the Philippines counterpart funds. The internal auditor shall report 

to and shall be under the supervision of the Secretary of the Department of Budget and 

Management. 

SEC. 8. Repeal. Memorandum Order No. 234 dated September 20, 1994, Memorandum 

Order No. 474 dated April 17, 1998, Memorandum Order No. 26, dated August 22, 2001. 

Memorandum Order No. 26-A dated December 10, 2001 and all other orders, rules, regulations 

and issuances, or parts thereof, which are inconsistent with this Memorandum Order, are 

hereby repealed or modified accordingly. 

SEC. 9. Effectivity. This Memorandum Order shall take effect immediately. 






--o0o-- 


Imposing the Penalty of Six (6) Months Suspension Without Pay 

on Respondent Liduvina C. Reyes, Regional Director, Region II, 

Commission on Higher Education, Tuguegarao City, 

for Violation of Section 7(b)(1) and (2) of Republic Act No. 6713 

This refers to the unsigned and undated letter-complaint filed with the then Presidential 

Commission Against Graft and Corruption (PCAGC), now Presidential Anti-Graft and 

Corruption (PAGC), by Concerned Heads of Schools in Cagayan, et al. against respondent 

Liduvina C. Reyes, Regional Director, Region II, Commission on Higher Education (CHED), 

Tuguegarao City, for alleged various irregularities. 

Records show that the complaint being anonymous, the Commission initially conducted 

a fact-finding investigation. It sent separate letters of inquiry to three (3) private institutions 

of learning cited in the complaint namely, Saint Louis College of Tuguegarao, St. Paul University 

and Cagayan Colleges Tuguegarao, all in Tuguegarao City, who submitted their answers as 

requested. 

Finding sufficient basis to commence an administrative investigation against respondent, 

the Commission issued an Order dated November 9, 1999 requiring respondent Reyes to file 

her Verified Answer or Counter Affidavit. Respondent submitted her Answer dated December 

13, 1999 and her Position Paper of even date. After the termination of the preliminary 

conference on February 1, 1999 and the submission of the complainantís case by the

466 


Commissionís representative as the Nominal Complainant on February 14, 1999, the case 

was set for hearing on March 24, 1999. During the hearing, respondent, through counsel, 

decided to forego presentation of any witness and instead rested her case for resolution 

subject to the submission of her Formal Offer of Evidence and Memorandum. 

The complaint against respondent consists of eight (8) charges, but only one (1) thereof 

was considered by the Commission for lack of evidence. 

The charge identified as No. 7 in the complaint, which was considered by the Commission 

reads, to wit: 

ì7. She also teaches in the graduate schools of private higher education 

institutions in Tuguegarao, Cagayan during office hours, and when she is in the 

office, she reviews masteral and doctoral thesis/dissertation. She teaches at the 

Cagayan Colleges of Tuguegarao, Saint Paul University inTuguegarao, and worst 

in Saint Louis College of Tuguegarao, where she is also the Dean of the Graduate 

School, which is still applying for permit in CHED central office, Pasig City. This 

is in direct disobedience of the order of CHED central office that CHED officials/ 

personnel should teach only in accredited programs, not in programs offered 

without permit, which is in violation of Batas Pambansa 232. As Dean of Saint 

Louis College of Tuguegarao, she is receiving double compensation, and there is 

conflict in interest in her job as Director of CHED Region 02 and Dean of Graduate 

School on one college in Region 02.î 

As gathered by the Commission, respondent Reyes had been a part-time professor at 

the Saint Louis College of Tuguegarao during the school year 1998-1999 and first semester 

of the school year 1999-2000 and she held classes either on Fridays from 5:30 - 8:30 P.M. 

or during Saturdays; that at the Saint Paul University, wherein she likewise taught on a parttime 

basis, she held graduate classes from 10:00 A.M. until 1:00 P.M. on Saturdays; and that 

at the Cagayan Colleges of Tuguegarao, she was invited to conduct special lectures during 

Saturdays or Sundays. 

On the questioned deanship of respondent of the Graduate School of the Saint Louis 

College of Tuguegarao (SLCT), it was found out that she applied for the position on July 22, 

1998 and was appointed as such on August 25, 1998. Her term was from September 1, 1998 

up to March 31, 1999, but served as Dean of said College until the acceptance of her 

resignation by the SLCT Board of Trustees effective September 23, 1999. 

In respondentís Answer, she averred that she never taught in the graduate school of 

any private institution in Region II during office hours and also denied reviewing masteral 

thesis and doctoral dissertations in her office. 

Anent her appointment as Dean of the Graduate School of the Saint Louis College of 

Tuguegarao, she explained that she applied for the position upon receipt of notification from 

then CHED Chairman Angel Alcala informing her that her appointment as Regional Director 

of CHED Region II will no longer be renewed. However, again when notified that CHED 

officials who were earlier asked to vacate their positions will be restored to their positions, 

she resigned and was accepted effective September 23, 1999.


On the charge of double compensation, there is no basis therefor, according to 

respondent, on the ground that she was not technically a CHED personnel at the time she 

served Dean of the graduate school; and that the prohibition against double compensation 

does not apply when the additional compensation is received not from the government or any 

of its entities. 

The Commission presented three (3) issues for resolution of the charge, but only two 

(2) thereof have actually been resolved, considering that the issue on double compensation 

was referred to the Commission on Audit. The two (2) issues are: 

ì(1) Whether or not the teaching activities of respondent Reyes in private 

institutions of higher learning in Region II is expressly allowed by law or do not 

conflict with her official functions as Regional Director of CHED of said Region?; 

ì(2) Whether or not the employment of respondent Reyes as Dean of Graduate 

School of the Saint Louis College of Tuguegarao constitutes a violation of law or 

rules?î 

With respect to the first issue, while respondent admitted the charge of teaching in the 

private institutions of higher learning, she submitted as her basis for doing so, certified copy 

of CHED Resolution No. 40-98, which pertinently reads: 

ìx x x that officials and staff of the Commission on Higher Education (CHED) 

shall be allowed to have teaching loads, provided, however, that they shall only be 

allowed to teach graduate and post graduate programs being offered in Government 

recognized institutions with at least level III accredited programs. 

ìx x x x x x x x x. 

ìx x x that CHED officials and staff shall be required to submit their 

application for permit to teach to the Office of the Chairman supported by 

appropriate credentialsí (Records, p. 89; Exhibit ë4í).î 

The Commission rejected the CHED Resolution No. 40-98 as a valid excuse and 

opined, to wit: 

ìIt is the considered view of this Commission that respondent Reyesí teaching 

activities at the aforementioned private institutions of learning constitute private 

practice of her profession as a teacher which conflicts with the exercise of her 

official function as CHED Regional Director of Region II. Moreover, the Commission 

likewise views CHED Resolution No. 40-98 upon which the herein respondent has 

anchored her alleged authority to teach as puny and of no moment in the instant 

case for reasons, among others, that (1) as an administrative issuance of CHED, 

it cannot certainly be considered to have amended the clear and express provision 

of Section 7(b)(1) of R.A. No. 6713; and (2) respondent Reyes has not presented 

any other evidence in support of her alleged authority to teach, e.g., an application 

to teach and the corresponding approval thereof signed by the CHED Chairman, 

which, obviously, are requirements under the said CHED Resolution (Exhibit ë4í). 

Regarding the second issue, the Commission said:

468 


ìThis Commission views as understandable the action of the herein respondent 

in seeking employment at the Saint Louis College of Tuguegarao which needed 

her professional services, after she was formally apprised by no less than the 

then Chairman of the Commission on Higher Education on the non-renewal of 

her appointment, for which she may not be faulted.î 

In order to further elucidate on the first issue, Section 7(b) (2) of R.A. 6713, otherwise 

known as the ìCode of Conduct and Ethical Standards for Public Officials and Employees 

provides, to wit: 

ìSECTION 7. Political Acts and Transactions - In addition to acts and omissions 

of public officials and employees now prescribed in the Constitution and existing 

laws, the following shall constitute prohibited acts and transactions of any public 

official and employee and are hereby declared to be unlawful: 

(a) x x x 

(b) Outside employment and other activities related thereto - Public officials 

and employees during their incumbency shall not: 

(1) x x x 

(2) Engage in the private practice of their profession unless authorized by the 

Constitution or law, provided that such practice will not conflict or tend to conflict 

with their official functions; 

x x x.î 

On the other hand, CHED Resolution No. 40-98 allows CHED officials and staff to have 

teaching loads under certain conditions, namely, 1) that they shall only be allowed to teach 

graduate and post graduate programs; 2) that these programs are being offered in government 

recognized institutions with at least level III accredited programs; and 3) that they shall be 

required to submit their application for permit to teach to the Office of the Chairman supported 

by appropriate credentials. 

Because of these afore-quoted requirements, it cannot be said that there is a conflict 

between these provisions of R.A. 6713 and the CHED Resolution. As found by the Commission, 

there was no showing that respondent submitted her application for a permit to teach to the 

Office of the CHED Chairman. Perhaps if that application was submitted, it is very probable 

that the conflict between her teaching and her official function as Regional Director for 

Region II could have been properly determined. Further, considering that as alleged by 

complainant, which was not denied by respondent, the SLCT is still applying for a permit 

from CHED, hence not yet a recognized institution for such level. 

With respect to the second issue, Section (b)(1) also prohibits a public official or 

employee during their incumbency to ìaccept employment as officer, employee, consultant, 

counsel, broker, agent, trustee or nominee in any private enterprise regulated, supervised 

or licensed by their office unless expressly allowed by law.î 

The last paragraph of Section 7(b) also states:


ìThese prohibitions shall continue to apply for a period of one (1) year after 

resignation, retirement or separation from public office, except in the case of 

subparagraph (b)(2) above, but the professional concerned cannot practice his 

profession in connection with any matter before the office he used to be with, in 

which case the one year prohibition shall also apply. 

This one-year prohibition fully debunks the Commissionís view that respondent cannot 

be faulted for applying and accepting the position of Dean of the Graduate Studies since 

anyway her appointment can no longer be renewed. While it is true that respondent is 

technically no longer with the CHED, but under Section (b) of RA 6713, the prohibition 

continues to apply one (1) year after resignation, retirement or separation from the service 

hence she is liable for its violation. 

Be that as it may, respondent Reyes is hereby found to have violated Section 7(b)(1) 

and (2) of R.A. 6713. 

WHEREFORE, premises considered, and as recommended by the PCAGC, now PAGC, 

respondent Liduvina C. Reyes, Regional Director, Region II, Commission on Higher Education, 

Tuguegarao City is hereby SUSPENDED FOR A PERIOD OF SIX (6) MONTHS WITHOUT 

PAY, for violation of Section 7(b)(1) and (2) of Republic Act 6713. 

SO ORDERED. 






--o0o-- 


Rationalizing the Agencies Under or 

Attached to the Office of the President 

WHEREAS, public officers and government in general have the constitutional duty to 

serve the Filipino people with utmost responsibility, integrity, loyalty and efficiency; 

WHEREAS, it is the policy of the Administration to improve the quality and efficiency of 

public service to the Filipino people by continually adopting institutional improvements and 

innovations in the bureaucracy and enhancing the capacity of the President to manage the 

Executive Department and supervise agencies requiring greater attention by the President; 

WHEREAS, Section 31, Chapter 10, Title III, Book III of Executive Order No. 292 dated 

July 25, 1987, otherwise known as the Administrative Code of 1987, provides continuing

470 


authority to the President to reorganize the administrative structure of the Office of the 

President; 



SECTION 1. Declaration of Policy - It is the policy of the Administration to undertake 

a streamlining program to rationalize the organization and supervision of the agencies under 

or attached to the Office of the President. 

An agency shall be placed under or attached to the department best able to provide 

policy or program guidance or exercise administrative supervision. An agency shall be 

placed under or attached to the Office of the President only if it is chaired by the President, 

or if its mandate or functional concerns require the immediate attention of the President, or 

cut across sectors or cannot be aligned with those of any of the departments, or if it renders 

direct staff support to the President. 

Agencies created by the President which have fulfilled their mandate, or perform 

functions properly pertaining to other departments, agencies or local government units, or 

have remained dormant shall be abolished, deactivated, merged, consolidated, transferred 

to other departments or agencies, or their functions, positions, personnel, assets and liabilities 

transferred to other departments or agencies. 

SECTION 2. Initial Implementation of Streamlining Program - Agencies presently 

under or attached to the Office of the President listed in Annex ìAî hereof shall be transferred 

to the corresponding departments or agencies, subject to the conditions stated therein. 

Within thirty (30) days from the issuance of this Executive Order, the Chairman of the 

Housing and Urban Development Coordinating Council shall submit his recommendations to 

the Presidential Committee on Effective Governance (PCEG) regarding the rationalization of 

agencies transferred to it. 

Agencies presently under or attached to the Office of the President listed in Annexes 

ìBî and ìCî hereof shall be abolished, subject to the following: 

(a) The Department of Budget and Management shall consult the local government units 

concerned for possible turnover of local or area-specific programs and projects. 

(b) Where the local government units concerned are willing to perform and fund the functions 

of the agency to be abolished, the Department of Budget and Management shall arrange 

for the transfer of functions, positions, personnel, and assets, as may be necessary. 

(c) The Department of Budget and Management shall oversee the winding-up of the activities 

of the agencies whose programs and projects are not accepted by the local government 

units concerned. 

SECTION 3. Winding-up and Disposition of Functions, Positions, Personnel, Assets 

and Liabilities of Abolished Agencies - The winding-up of the abolished agencies, including 

the disposition or transfer of their functions, positions, personnel, and assets, as may be 

necessary, shall be done immediately upon the issuance of this Executive Order and completed 

not later than April 15, 2002.


SECTION 4. Continuous Implementation of Streamlining Program - Within sixty (60) 

days from the issuance of this Order, the PCEG shall submit to the President its 

recommendations for possible abolition, deactivation, merger, consolidation, transfer to other 

departments or agencies, or transfer of functions, positions, personnel, assets and liabilities 

of agencies under or attached to the Office of the President not included in this Executive 

Order. 

SECTION 5. Oversight - The Department of Budget and Management is hereby directed 

to oversee the winding-up of agencies under this Executive Order, including the final disposition 

or transfer of their functions, position, personnel, assets and liabilities. The Department of 

Budget and Management is hereby authorized to issue, upon consultation with the Civil 

Service Commission and the Commission on Audit and subject to the approval of the PCEG, 

the implementing guidelines for the winding-up of agencies and the final disposition or transfer 

of their functions, positions, personnel, assets and liabilities in order to achieve the effective 

implementation of this Executive Order. 

SECTION 6. Reporting Requirement - The Department of Budget and Management, 

in coordination with the PCEG, shall submit a Final Report to the President on the 

implementation of this Executive Order. 

SECTION 7. Effectivity - This Executive Order shall take effect immediately. 





ANNEX ìAî 

LIST OF THIRTEEN (13) AGENCIES TO BE TRANSFERRED FROM THE OFFICE OF 

THE PRESIDENT 

Two (2) agencies attending to locally funded projects of the Office of the President: 

1. Pasig River Rehabilitation Commission - to the Metropolitan Manila Development 

Authority 

2. Inter-Agency Coordinating Committee to -to the Department of Environment and 

Prepare and Coordinate the implementation Natural Resources; provided that the 

of a Land Administration and Management Committee shall complete 

Program the long-term Land Administration and 

Management Program not later than 

September 2003 

Eleven (11) Task Forces and similar entities: 

3. Cabinet Supervisory Committee on the Imple- -to the Office of the Presidential Adviser 

mentation of the GRP -MNLF Peace on the Peace Process 

Agreement

472 


4. Bipartisan Executive - Legislative Advisory -to the Department of Foreign Affairs 

Council on the Sabah Issue 

5. Inter-Agency Committee to Draft Policy -to the Department of Foreign Affairs; 

Guidelines and Framework for Philippine provided that the Committee shall be 

Participation in UN Peacekeeping Operations abolished upon finalization of the 

policy guidelines 

6. National Government Center (NGC) East-Side -to the Housing and Urban Development 

Development Committee Coordinating Council 

7. Northrail Resettlement Project Committee -to the Housing and Urban Development 

Coordinating Council 

8. Southrail Resettlement Project Committee -to the Housing and Urban Development 

Coordinating Council 

9. Inter-Agency Executive Committee to Oversee -to the Housing and Urban Development 

the Comprehensive Development of the National Coordinating Council 

Housing Property in North Triangle, Quezon City 

10. Privatization Council - to the Department of Finance 

11. Ad-Hoc Committee on the Utilization and - to the Department of Finance; provided, 

Disposition of Real Properties of the that the Committee shall be rationalized 

Philippine Government Located Locally in relation to the Privatization Manageand 

Abroad ment Office and units under or attached 

to it 

12. Special Task Force Against Irregularities -to the Department of Finance; provided, 

Committed in Agencies Attached To or Under that the Task Force shall be rationalized 

the Department of Finance 

13. Socsksargen Fishing Industry Steering -to the Socsksargen Area Development 

Committee Project Office 

ANNEX ìBî 

LIST OF SIXTY-ONE (61) AGENCIES UNDER OR ATTACHED TO THE OFFICE OF THE 

PRESIDENT TO BE ABOLISHED 

Six (6) agencies attending to locally funded projects of the Office of the President: 

1. Inter-Agency Committee on Intellectual Property Rights 

2. Mindanao Rail System Task Force 

3. Northwestern Luzon Growth Quadrangle Commission 

4. Presidential Committee on Flagship Programs and Projects 

5. Program Office for the Central East Asia Growth Circle 

6. Philippine International Film and Television Office 

Fifty-five (55) Task Forces and similar bodies 

7. Inter-Agency Coordinating Committee for National Programs and Projects in Metro Manila


8. Inter-Agency Committee for the Development and Management of Leyte Enhanced 

Resource-Based Area for Productivity Project 

9. National Committee on the Culture of Peace 

10. Committee on the Presidentís Urgent Services for Housing 

11. Presidential Housing Assistance One-Stop Center 

12. Presidential Commission for Mass Housing 

13. Coordinating Council on Executive Response and Action for the People 

14. Inter-Agency Committee on Philippine Schools Overseas 

15. Inter-Agency Committee on Foreign Students 

16. Presidential Commission in Educational Reform 

17. National Heroes Committee 

18. Inter-Agency Task Force on the Oil Price Increases 

19. Petrochemical Industry Competitiveness Board 

20. Presidential Iron and Steel Committee 

21. Ad-Hoc Fact Finding Committee on Behest Loans 

22. Executive Committee to Oversee the BOT/BOO Implementation of the Proposed Silangan 

Express 2000 Railway System 

23. Mactan-Cebu Bridge Management Board 

24. Southern Luzon-Central Philippines Rehabilitation Task Force 

25. Executive Committee to Oversee the BOT Implementation of Solid Waste Management 

Projects for Waste Disposal Sites in Carmona (Cavite) and San Mateo (Rizal). 

26. National Coordinating Council for the Sugar Industry 

27. Presidential Air Quality Commission 

28. Iwahig Prison and Penal Farm Joint Working Committee 

29. Presidential Committee to Study and Take Charge of the Modernization and Development 

of Various Penal Institutions in the Country 

30. Preparatory Commission on Constitutional Reforms 

31. Presidential Commission on the New Century and the Millenium 

32. Presidential Retirement Income Commission 

33. Public Acknowledgement Committee for the Participants of EDSA II 

34. Task Force for the Development of Payatas in Quezon City 

35. Cabinet Projects Coordinating Committee 

36. Presidential Task Force on Manila Bay Rehabilitation 

37. Presidential Task Force on Traffic Improvement and Management 

38. Presidential Task Force on Transport Strike and Mass Action 

39. Executive Council on the Suppression of Trafficking in Persons, Particularly Women and 

Children 

40. Joint Congressional-Executive Task Force on Legislative Matters for the Social Pact 

41. Social Protection Coordinating Committee 

42. Economic Coordinating Council 

43. Economic Mobilization Group 

44. Inter-Agency Committee on Investment Analysis, Promotion and Management 

45. Inter-Agency Executive Committee to Assist the Trustee Committee for the Comprehensive 

Development of Welfareville Property in the City of Mandaluyong 

46. Inter-Agency Task Force to Prepare and Implement the Plans and Programs for the 

Maintenance and Beautification of All Roads Leading to the Domestic and International 

Gateways in Metro Manila 

47. Institutional and Perfomance Audit Team on the National Commission on Indigenous 

Peoples

474 


48. Inter-Agency Committee to Oversee the Turnover and Development of Properties in 

Makati Held by the Philippine Development Alternatives Foundations, Inc. and Presidential 

Commission on Good Government to the National Government and National Power 

Corporation 

49. Inter-Agency Committee to Study Proposals for Reorienting the Basic Mandate of the 

Social Security System (SSS) as a Social Institution, Instead of a Financial Institution 

50. Inter-Agency Steering Committee to Assist Local Government Units in the preparation 

and Completion of their Comprehensive Land Use Plans 

51. Inter-Agency Task Force to Combat Securities-Fraud 

52. Multi-Sectoral Consultative Task Force 

53. Ad-Hoc Coconut Levy Funds Audit Committee 

54. Committee on Presidential Foreign Travels and Coordinating Working Committee on 

Overseas Presidential Visits 

55. Task Force to Study and Determine the Settlement of the Obligations of the National 

Government to SGS 

56. Special Committee on the Resettlement of Informal Settlers in Antipolo, Rizal 

57. TaÒon Strait Commission 

58. Maglanco Area Development Coordinating Council 

59. Mindanao Coordinating Council 

60. Mindanao Peace and Development Multi-Sectoral Agency Task Force 

61. Special Development Planning Task Group to Undertake Economic and Social Development 

Planning for the Special Zone of Peace and Development 

ANNEX ìCî 

LIST OF SIXTEEN (16) AGENCIES UNDER OR ATTACHED TO THE OFFICE OF THE 

PRESIDENT TO BE ABOLISHED, SUBJECT TO CONDITIONS 

Ten (1) agencies attending to locally-funded projects of the Office of the President: 

1. Lingayen Gulf Coastal Area Management Commission 

2. Mt. Makiling Reserve Area and Laguna de Bay Commission 

3. Presidential Commission on Rizal-Laguna-Aurora-Quezon Growth Area 

4. Banaue Rice Terraces Task Force 

5. Bicol Tourism Special Development Project Commission 

6. Vigan Heritage Village Commission 

7. Aklan Provincial Tourism Special Development Project Task Force 

8. Sulu Development Task Force 

9. Davao Integrated Development Board 

10. Central Mindanao Development Task Force 

Six (6) Task Forces and similar entities: 

11. Basilan Development Task Force 

12. Cagayan de Oro-Iligan Corridor Special Development Project Steering Committee 

13. Gingoog Bay Development Council 

14. Zamboanga City Council of Elders 

15. Zamboanga Peninsula and Basilan Province (ZAMBAS) Regional Project Development 

Board 

16. Inter-Agency Committtee on Land Titling Anomalies in General Santos City 

--o0o--




Transferring the Philippine Crop Insurance Corporation 

from the Department of Finance to the Department of Agriculture 

WHEREAS, the Philippine Crop Insurance Corporation created under Presidential 

Decree No. 1467 dated June 11, 1978 is mandated to provide insurance protection to farmers 

against losses arising from natural disasters, plant diseases and pest infestation; 

WHEREAS, the Philippine Crop Insurance Corporation was transferred to the 

Department of Finance by virtue of Executive Order No. 42 dated October 15, 2001; 

WHEREAS, the Secretaries of the Department of Agriculture and the Department of 

Finance have jointly recommended that the Philippine Crop Insurance Corporation be attached 

to the Department of Agriculture in order that the corporation may better fulfill its mandate 

and make greater contributions towards achieving a modernized Philippine agricultural sector 

founded on social equity, which is one of the key components of the governmentís national 

agenda for poverty alleviation and national development; 



SECTION 1. The Philippine Crop Insurance Corporation is hereby transferred from 

the Department of Finance and attached to the Department of Agriculture for policy and 

program coordination and for general supervision. 

SECTION 2. All executive orders, rules and regulations and other issuances inconsistent 

with the provisions of this Executive Order are hereby revoked or modified accordingly. 

SECTION 3. This Executive Order shall take effect immediately. 






--o0o-- 


Providing the Implementing Guidelines for the Anti-Kidnapping 

Task Force of the National Anti-Crime Commission

476 


WHEREAS, the National Anti-Crime Commission was created by virtue of Executive 

Order No. 23 dated July 6, 2001 as amended by Executive Order No. 23-A dated August 3, 

2001, to formulate policies, develop modes for coordination and monitor implementation with 

regard to efforts in preventing and combating crime; 

WHEREAS, the National Anti-Crime Commission has created the Anti-Kidnapping Task 

Force. 



SECTION 1. Purpose and Scope - The purposes of this Memorandum Order is to 

provide the Implementing Guidelines of the Anti-Kidnapping Task Force (ìTask Forceî) created 

by the National Anti-Crime Commission (NACC). The scope covers the organizational and 

operational set-up of the Task Force including the mission, organization and composition, 

coordination, line of authority, powers and functions, duties and tasks, operating guidelines, 

discipline and performance evaluation, and funding. 

SECTION 2. Mission - The Task Force is not an agency. It is a temporary task force 

created under the multi-agency NACC to unify, synchronize and optimize efforts and resources 

of the Philippine National Police (PNP), Armed Forces of the Philippines (AFP), National 

Bureau of Investigation (NBI), National Prosecution Service (NPS) and other concerned 

Government agencies in the handling, investigation and prosecution of Kidnap-for-Ransom 

(KFR) cases where the victims are members of the Filipino-Chinese community in particular, 

a well as other KFR cases identified by the President of the Philippines or the NACC or any 

of the latterís component agencies or personalities to be assigned to the Task Force, and to 

conduct operations against such KFR groups as are assigned to it. Other KFR cases not 

specifically assigned to the Task Force shall continue to be handled by the PNP. 

SECTION 3. Definition of Terms - As used in this Memorandum Order, the following 

terms shall mean: 

a. Task Force - the concept of task force as understood in conventional military and police 

doctrine; and 

b. Kidnap-for-Ransom - a crime committed by a private individual who kidnaps or detains 

another, or in any other manner, deprives him of his liberty for the purpose of extorting 

ransom from the victim or any other person. 

SECTION 4. Organization and Composition - The Task Force shall be under a Task 

Force Chief to be designated by the President of the Philippines. He shall be supported by a 

Functional Staff and other special operating units. 

a. The Functional Staff shall assist in the implementation, supervision, and orchestration of 

all actions pertaining to the KFR cases assigned to the Task Force. 

b. Special anti-KFR units/personnel from the PNP, AFP, NBI and the Department of Justice 

(DOJ) shall be assigned by the NACC to the Task Force as needed. 

c. Respective mother agencies shall provide transportation, communications, firearms and 

individual equipment to their respective personnel assigned to the Task Force.


d. A Tactical Center shall be created to monitor and orchestrate the day-to-day activities of 

the different Government agencies involved in the KFR cases assigned to the Task Force. 

SECTION 5. Coordination - The Task Force is hereby authorized to enlist the assistance 

of any agency of the Government, including government-owned and controlled corporations 

in the performance of its official functions. 

SECTION 6. Line of Authority - The line of command and control of the Task Force 

shall be as follows: 

a. The Task Force Chief shall periodically report and update the NACC as a body on all 

matters relative to the anti-KFR campaign cases assigned to it. 

b. The Task Force Chief shall exercise supervision over all personnel and units assigned to 

the Task Force. He is hereby authorized to select the personnel who will work under him. 

SECTION 7. Powers and Functions - The Task Force shall exercise the following 

powers and functions: 

a. Take cognizance of and act as the lead in reported KFR cases where the victims are 

members of the Filipino-Chinese community, as well as other cases specifically assigned 

to it by the President of the Philippines or by any of the component units or individuals that 

constitute NACC; 

b. Cause or direct the immediate arrest, investigation and speedy prosecution of involved 

personalities, conspirators and their associates in accordance with constitutional processes; 

c. Enlist the assistance of any agency of the Government including government-owned and 

controlled corporations in the performance of its mandate; 

d. Maintain a DOJ component in the Task Force to cause the efficient and expeditious 

dispensation of criminal justice through investigation and prosecution; and 

e. Perform such other functions as the President of the Philippines may direct. 

SECTION 8. Duties and Tasks of the Task Force Chief - The Task Force Chief shall 

be principally responsible for the successful implementation and accomplishment of the 

mission and functions of the Task Force. He shall exercise command and control over all 

units/personnel assigned/detailed to the Task Force, direct and supervise the conduct of 

operations on cases assigned to the Task Force, and perform such other tasks as the 

President of the Philippines may determine. 

SECTION 9. Guidelines - The Task Force shall adhere to the following guidelines that 

supplement the existing Police Operational Procedures: 

a. Utmost priority shall be placed on the safe rescue of KFR victims and the confidentiality of 

all information relative to ongoing KFR cases assigned to the Task Force. 

b. The Task Force shall ensure the successful and speedy prosecution of criminal cases 

against all arrested and identified suspects in the cases assigned to it and, for this purpose, 

the Task Force shall include personnel from the DOJ.

478 


c. All operations conducted shall have the prior clearance and knowledge of the Task Force 

Chief. 

d. Counteraction operations conducted against target personalities shall be primarily aimed 

at bringing the suspects to the bar of justice. 

e. Any law enforcement unit/office/agency that initially takes cognizance of a KFR case 

where the victim is a member of the Filipino-Chinese community or of a case subsequently 

assigned by the President of the Philippines or by any of the component units or individuals 

that constitute the NACC to the Task Force, shall turn over to the Task Force all gathered 

evidence. From that point on, joint investigation and operations shall be conducted. The 

Task Force shall have the operational jurisdiction over KFR cases where the victim is a 

member of the Filipino-Chinese community and such other cases as may be assigned to 

it by the President of the Philippines or members of the NACC. 

f. Handling of all media inquiries should be conducted with utmost discretion, taking into 

account the safety of the victims and their immediate relatives. Only the Task Force Chief, 

or his duly authorized representative, or the Chief of the Philippine National Police, or the 

Chairman of the NACC, is allowed to make pronouncements on details of KFR cases. 

g. The personnel strength of the Task Force shall be two hundred (200). 

SECTION 10. Discipline and Performance Evaluation - The Task Force Chief shall 

create an internal mechanism that shall implement periodic background investigation to ensure 

personnel discipline that shall regularly assess individual and unit performance. 

SECTION 11. Funding - The NACC shall provide the necessary funds to the Task 

Force to support and ensure its operational effectiveness. 

SECTION 12. Effectivity - This Memorandum Order shall take effect immediately upon 

approval. 

Adopted: 13 March 2002 





--o0o-- 


Directing All National and Local Government Agencies, 

Government-Owned and Controlled Corporations, Government Financial 

Institutions and Other Government Instrumentalities Including Public Schools, 

Military and Police Units to Use Locally-Produced Materials for their Uniforms


In line with the drive to promote locally made products through the ìBuy-Filipinoî Program, 

to boost the local textile and garment manufacturing industry and generate jobs for Filipinos, 

and upon the recommendation of the Department of Labor and Employment (DOLE), all 

heads of national and local Government agencies, Government-Owned and Controlled 

Corporations, Government Financial Institutions and other government instrumentalities, 

including public schools, military and police units, are hereby directed to use local fabrics, 

knitted or woven from locally manufactured yarns, for the uniform of their employees and for 

other clothing and textile requirements of their respective agencies: Provided, however, That 

the use of imported fabrics may be allowed only where no local fabric of the desired quality 

or standard is available in the market at competitive prices. 

The DOLE and the Department of Trade and Industry shall issue the Implementing 

Guidelines for this Memorandum Circular within thirty (30) days from the date of issuance of 

this Memorandum Circular. 






--o0o-- 


Imposing the Penalty of Six Months Suspension on 

Liberty C. Tupaz, Regional Director, Technical Education 

and Skills Development Authority (TESDA) Region IX 

This refers to the administrative case against Liberty C. Tupaz , Regional Director, 

Technical Education and Skills Development Authority (TESDA) Region IX, for violation of 

the General Appropriations Act and other related laws. 

The findings and recommendation of the then Presidential Commission Against Graft 

and Corruption (PCAGC), as embodied in its Resolution dated April 17, 2001, are quoted as 

follows: 

ìOn October 10, 1999 and November 10, 1999, this Commission issued a 

subpoena ad testificandum and duces tecum requiring the State Auditor of TESDA 

Region IX to submit to this Commission some pertinent documents relative to the 

alleged violation of the respondent. (pp. 17 and 18, Records) 

ìUpon evaluation of the documents thus submitted, it was found that there was 

sufficient evidence to commence an administrative investigation, hence, this 

Commission pursuant to its powers under Executive Order No. 151, as amended, 

issued on January 17, 2000, an order requiring the respondent to submit her

480 


counter-affidavit/verified answer to the complaint together with the affidavits of 

witnesses and other documents/papers in her defense. (pp. 134 to 136, Records). 

ìOn January 14, 2000, the complaint was referred to the Office of the 

Ombudsman for appropriate action on the criminal aspect of the case. (p. 133, 

Records) 

ìOn 11 February 2000, the respondent filed her counter-affidavit/verified answer 

together with certain attached documents. (pp. 137 and 268, Records) 

ìA preliminary conference was conducted on 23 February 2000 wherein both 

parties were duly represented by their respective counsel. (pp. 280 and 281, 

Records) 

ìAs agreed upon, the complainant filed an amended verified complaint on 

March 7, 2000. (pp. 282 to 290, Records) 

ìThe amended complaint charged the respondent of the following acts/omissions, 

to wit: 

(1) that the respondent received transportation allowance (TA) despite the fact 

that a government vehicle was assigned to her; 

(2) that the respondent used the assigned vehicle without the appropriate mark 

ìFOR OFFICIAL USE ONLYî; 

(3) that she failed to appoint an officer-in-charge to sign papers and official 

documents in her absence during her frequent travels to Dipolog City; 

(4) that the respondent failed to observe proper decorum in the discharge of 

her official functions; and 

(5) that the respondent violated the law against nepotism when she designated 

Mr. Edgar S. Cadavedo as officer-in-charge of the Provincial Office in Zamboanga. 

ìIn her counter-affidavit/verified answer, the respondent averred as follows: 

(1) that she denies all the charges levelled against her; 

(2) that while she admitted to have received her transportation allowance from 

November 1997 to December 1998, she altogether desisted from receiving the 

transportation allowance when the Supreme Court issued a ruling in the case of 

Aida Domingo vs. Commission on Audit (G.R. No. 112371, October 7, 1998) in 

relation to COA Circular No. 2000-005 that whenever an official or employee 

entitled to transportation allowance uses the government vehicle issued to his 

office, a corresponding proportionate reduction on his transportation allowance 

shall be made; 

(3) that she claimed that her acts of designating Edgar Cadavedo did not 

constitute a violation of the rules on nepotism because the latter is not related to 

her within the third degree prohibited by the Civil Service Law;


(4) she averred that she used the government vehicle assigned to her without 

the designated mark ëFor Official Use Onlyí because of the threats against her life 

and security; 

(5) on the charge of her frequent travels, she stated that there were some 

national projects and programs which were personal accountability of the Regional 

Director; and 

(6) she denies that she had never appointed any officer-in-charge during her 

travels. (pp. 343 to 348, Records) 

ìOn October 2, 2000, the parties were directed to submit their respective 

formal offer of evidence for the complainant on or before October 12, 2000 and 

for the respondent on or before October 17, 2000. 

ìThe exhibits thus submitted, disclosed that: (1) the respondent issued an 

office order dated February 10, 1998 which provided that Tamaraw FX Plate No. 

611 should be for the official use of the Regional Director (p. 293, Records); (2) 

that the respondent designated Mr. Edgar S. Cadavedo, in her office order dated 

January 12, 2000 (p. 283, Records); (3) that the transportation allowance received 

by the respondent from November 1997 to November 1998 amounting to P73,800.00 

was disallowed. (pp. 294 to 296, Records) 

ìSec. 41 of the General Appropriations Act provides that: 

ëThe transportation allowance herein authorized shall not be granted to 

officials who are assigned a government vehicle or use government motor vehicleí. 

ìThe respondent by receiving a transportation allowance despite the fact that 

she was assigned a government vehicle violated the above-quoted provision in the 

General Appropriations Act. 

ìAlthough the respondent denied all the charges levelled against her, it was, 

however, indubitably shown that she was administratively liable for violation of 

Sec. 41 General Appropriations Act (GAA) in relation to Republic Act No. 3019, 

as amended, otherwise known as the Anti-Graft and Corrupt Practices Act, for 

receiving transportation allowance notwithstanding the fact that she was assigned 

a government motor vehicle. 

ìHer defense that, from the time of the ruling of the Supreme Court in the case 

of Aida Domingo vs. Commission on Audit (G.R. No. 112371, October 7, 1998), 

she desisted from receiving said transportation allowance is unavailing considering 

that the law prohibiting the collection of transportation allowance when an officer 

is assigned/using a government vehicle was already in place/in effect. The best 

that she could have done was to have refunded the amount. 

On the charge of nepotism against the respondent, Sec. 6, Rule XVIII of the 

Civil Service Law is applicable, reading as follows:

482 


ëNo appointment in the national, province, city and municipal government 

or in any branch or instrumentality thereof, including government-owned or 

controlled corporation with original charters shall be made in favor of a relative of 

the appointing or recommending authority, or of the chief of the bureau or office, 

or of the persons exercising immediate supervision over the appointee. 

ëUnless otherwise specifically provided by law, as used in this Section, 

the word ìrelativeî and members of the family referred to those related within the 

third degree either of consanguinity or of affinity.í 

ìThe records of the case failed to show, however, that the appointee is 

related to the respondent within the third degree either of consanguinity or of 

affinity, hence, respondent is not administratively responsible therefore.î 

ìAs regards the other charges, the same are dismissed for insufficiency of 

evidence.î 

ìWHEREFORE, in view of the foregoing, this Commission finds respondent 

Liberty C. Tupaz, Regional Director, Technical Education and Skills Development 

Authority (TESDA) Region IX, GUILTY for violation of Sec. 41, General 

Appropriations Acts in relation to Republic Act No. 3019, as amended, otherwise 

known as the Anti-Graft and Corrupt Practices Act, and so recommends to Her 

Excellency, President Gloria Macapagal-Arroyo, that the penalty of suspension 

from the service for six (6) months be imposed.î 

ìSO RESOLVED.î 

After an exhaustive review of the records of the case, this Office concurs with the 

findings and conclusions of the Presidential Commission Against Graft and Corruption 

supported as they are by substantial evidence. 

WHEREFORE, in view of the foregoing and as recommended by the Presidential 

Commission Against Graft and Corruption, respondent Liberty C. Tupaz, Regional Director, 

Technical Education and Skills Development Authority (TESDA), Region IX, is hereby 

suspended from office without pay for a period of six (6) months effective upon receipt 


SO ORDERED. 





--o0o--



Providing for the Implementation of the Hybrid Rice Program, 

Transferring the Philippine Rice Research Institute from the Department of 

Agriculture to the Office of the President and for Other Purposes 

WHEREAS, the Government is committed to the creation of one million new jobs in 

agriculture and fisheries under the ìOne Million Jobsî Program; 

WHEREAS, by virtue of Administrative Order (A.O.) No. 25 dated December 12, 2001, 

the Government embarked on the Hybrid Rice Program and the Department of Agriculture, 

the Department of Trade and Industry, the National Food Authority and their respective allied 

agencies were authorized to accelerate and intensify the promotion of the utilization of 

hybrid rice technology; 

WHEREAS, under the Hybrid Rice Program, hybrid rice planting targets shall cover 

135,000 hectares in 2002, 200,000 hectares in 2003 and 300,000 hectares in 2004 in the 

major irrigated rice producing provinces; 

WHEREAS, the utilization of hybrid rice technology is expected to increase productivity 

and create new jobs; 

WHEREAS, by virtue of Executive Order No. 1061 dated November 5, 1985, as amended 

by Executive Order No. 60 dated November 7, 1986, the Philippine Rice Research Institute 

was established under the Department of Agriculture, to develop, in coordination with the 

University of the Philippines at Los BaÒos, a national rice research program so as to sustain 

and further improve the gains already made in rice production, improve the income and 

economic condition of small rice farmers, expand employment opportunities in the rural 

areas, and ultimately promote the general welfare of the people through self sufficiency in 

rice production; 

WHEREAS, there is a need to place the Philippine Rice Research Institute under the 

Office of the President for closer administrative supervision and to reconstitute the Board of 

Trustees to enhance its effectiveness; 

WHEREAS, under Section 31, Chapter 10, Title III, 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. Lead Agency - The Philippine Rice Research Institute (PHILRICE) shall 

be the primary Government agency responsible for the Hybrid Rice Program (ìProgramî) 

and the promotion of the utilization of hybrid rice technology. 

The PHILRICE shall recommend to the President the designation of a Program 

Coordinator who shall direct, manage and supervise the day-to-day operations of the Program

484 


and the delivery of various program support interventions to the various provinces included in 

the Program. 

The PHILRICE may call upon any agency of the Government for such assistance as 

may be necessary to attain the objectives and targets of the Program. 

SECTION 2. Transfer - The PHILRICE is hereby transferred from the Department of 

Agriculture (DA) to the Office of the President. 

SECTION 3. Reconstitution - The Board of Trustees of PHILRICE is hereby reconstituted 

and Section 4 of Executive Order No. 1061 dated November 5, 1985, as amended by Executive 

Order No. 60 dated November 7, 1986, is hereby further amended to read as follows: 

ìSECTION 4. Board of Trustees - The corporate powers of the Institute shall 

be exercised, and all its business activities and properties shall be controlled by a 

Board of Trustees, hereinafter referred to as the Board, composed of the 

Presidential Adviser for One Million Jobs as Ex Officio Chairman and twelve (12) 

other members to be appointed by the President of the Philippines upon 

recommendation of the Presidential Adviser for One Million Jobs. The appointive 

members of the Board shall serve for two (2) years. 

The Board shall meet regularly at least once a month or as often as the exigencies 

of the service demand. The presence of at least seven (7) members shall constitute 

a quorum, and the majority vote of the members present, there being a quorum, 

shall be necessary for the adoption of any resolution, rule, regulations, decision 

or any other act of the Board. 

The members of the Board, including the Chairman, shall receive per diem, as 

the Board may determine, for each Board Meeting actually attended: Provided, 

That such per diem shall not exceed Two Thousand Pesos (P2,000.00) during 

any one month for each member. The said members shall also be entitled to 

reimbursable transportation and representation allowances in going to and coming 

from Board Meetings and transacting official business for the institute.î 

SECTION 4. Hybrid Rice Action Teams - The PHILRICE shall, in coordination with 

the concerned agencies and provincial governments, organize Hybrid Rice Action Teams for 

each of the provinces included in the Program. The Hybrid Rice Action Teams shall be 

composed of agriculturists, agrarian reform officers, irrigation officers, representatives of 

the National Food Authority and representatives of the stakeholders of the Program from the 

farming and business sectors. 

The Hybrid Rice Action Teams shall identify suitable rice production areas, recommend 

partners to the farming and business sector of the rice industry, supervise production activities 

at the farm level, facilitate delivery of extension services and ensure the financing and marketing 

of the Program. 

SECTION 5. Reports - The PHILRICE shall submit periodic reports to the President 

on the status of the implementation of the Program.


SECTION 6. Funding - To ensure the attainment of targets of the Program as specified 

in A.O No. 25, the DA shall allocate and realign the amount of Four Hundred Fifty Million 

Pesos (P450 Million) from its Agricultural and Fisheries Modernization Program budget as 

funding support for the Program. 

For the CY 2002 requirements of the Program, the Department of Budget and 

Management (DBM) shall ensure the timely release of funds to the DA, which shall immediately 

sub-allot and transfer the said funds to the PHILRICE. 

For CY 2003 and CY 2004, appropriations for the Program shall be included in the 

budget proposal of the PHILRICE to achieve the targets of 200,000 hectares and 300,000 

hectares respectively. 

SECTION 7. Repeal - All orders, rules, regulations and issuances, or parts thereof, 

which are inconsistent with this Executive Order, are hereby repealed or modified accordingly. 

SECTION 8. Effectivity - This Executive Order shall take effect immediately upon 

approval. 






--o0o-- 


Transferring the National Food Authority and the Philippine 

Coconut Authority from the Office of the President to the 

Department of Agriculture 

WHEREAS, the National Food Authority was created under Presidential Decree No. 

1770 dated January 14, 1981 as a government corporation for the promotion of the integrated 

growth and development of the food industry; 

WHEREAS, the Philippine Coconut Authority was created under Presidential Decree 

No. 232 dated June 30, 1973, as amended, as an independent public corporation for the 

promotion of the accelerated development of the coconut and other palm oils industry; 

WHEREAS, both the National Food Authority and the Philippine Coconut Authority 

were transferred from the Department of Agriculture and attached to the Office of the President 

by virtue of Executive Order No. 41 dated October 15, 2001; 

WHEREAS, the Executive Secretary and the Secretary of the Department of Agriculture 

have jointly recommended that the National Food Authority and the Philippine Coconut

486 


Authority be attached to the Department of Agriculture in order that the said corporations 

may better fulfill their mandate and make greater contributions towards achieving a modernized 

Philippine agricultural sector founded on social equity, which is one of the key components 

of the governmentís national agenda for poverty alleviation and national development; 

WHEREAS, under Section 31, Book III of the Administrative Code of 1987, the President 

has the continuing authority to reorganize the Office of the President; 

NOW, THEREFORE, I, GLORIA MACAPAGAL - ARROYO, President of the Philippines, 


SECTION 1. Transfer of the National Food Authority - The National Food Authority is 

hereby transferred from the Office of the President and attached to the Department of 

Agriculture for policy and program coordination. 

SECTION 2. Transfer of the Philippine Coconut Authority - The Philippine Coconut 

Authority is hereby transferred from the Office of the President and attached to the Department 

of Agriculture for policy and program coordination. 

SECTION 3. Repealing Clause - All executive orders, rules, and regulations and other 

issuances inconsistent with the provisions of this Executive Order are hereby revoked or 

modified accordingly. 

SECTION 4. Effectivity - This Executive Order shall take effect immediately. 




OVERSEAS WORKERS WELFARE ADMINISTRATION 


Memorandum Of Instruction No. 018, s. of 2001 

Prescribing the Guidelines on the Collection of OWWA 

Contributions/Fees on a Per Contract Basis. 

Pursuant to Board Resolution No. 98-004, Series of 1998 

In order to rationalize the payment of OWWA contributions/fees, and enhance collection 

efficiency to enable the Office to provide adequate welfare and protection programs and 

services to our Overseas Filipino Workers, hereunder are the guidelines governing the 

collection of fees on a per contract basis:


I. COVERAGE 

All contract workers deployed overseas (land-and sea-based), including those deployed 

by POEA Hall of Famers except those specified in Section 2 hereof. Extensions or renewals 

of original contracts by the same employer, explicit or implied shall likewise be covered by 

this Guidelines; provided that in cases of implied and/or written contracts with indefinite 

duration, the assessment shall be based on the standard contract duration applicable to the 

corresponding occupation groups, but in no case to exceed two (2) years, provided that, 

if an OFW inks two or more consecutive contracts within one year, he/she shall not be 

assessed the OWWA fees as long as the total duration of the two or more contracts (inclusive 

of vacations in-between contracts), does not exceed one continuous year. 

Undocumented OFWs who acquire legal status as alien residents with work permits 

while abroad, and who desire to avail of the OWWA Voluntary Membership Program are 

likewise covered, If employment term is definite or implied as in the case of extended contracts, 

assessment shall be based on the standard contract duration applicable to the corresponding 

occupation group, but in no case to exceed two (2) years. 

II. EXEMPTION 

OFWs on emergency leave and other similar reasons but returning to the same employer 

to complete their original contracts but in no case shall exceed the standard contract duration 

applicable to corresponding occupation groups are exempted. 

III. FREQUENCY AND MANNER OF PAYMENT 

OWWA contributions/fees shall be processed and paid on a per contract basis. All 

payments shall be made to OWWA Collection Officers or to deputized Collection Officers, as 

the case may be. For contracts submitted to the POEA for processing, including those 

processed by the BALIK-Manggagawa Assistance Center (BMAC) for returning workers, 

payments shall be made to the OWWA Collection Officers. 

For OFWs who have renewed or shall renew their employment contracts on-site, the 

payment should be made to designated/deputized Collection Officers on site. 

IV. AMOUNT OF CONTRIBUTION 

The OWWA contribution shall be TWENTY FIVE DOLLARS (US$25.00) per contract 

per person. Payments may be made in US Dollars or its peso equivalent. For peso payments, 

the exchange rate shall be the conversion rate applicable at the date of payment, as determined 

pursuant to a previous agreement with the sea-based and land-based sectors, embodied in 

OWWA Memorandum of Instruction No. 104, series of 1991. 

On-site payments may be in US Dollars or the local equivalent currency based on the 

prevailing exchange rate thereat. 

V. ISSUANCE OF OFFICIAL RECEIPTS AND CERTIFICATE OF INSURANCE COVERAGE 

Upon payment of OWWA fee, the designated cashier shall issue an Official Receipt 

and a Certificate of Coverage to the worker. The ORs are distributed as follows:

488 


Original (white) Payor 

Duplicate (pink) Attachment to the Report of Collection 

Triplicate (blue) Designated Cashierís File Copy 

VI. DEPOSIT AND REMITTANCE OF COLLECTIONS 

The cashier shall deposit the collections daily with the OWWA Capital Fund Account 

with Land Bank of the Philippines under Savings Account No. 1701-0000-01. Deposit slips 

should be prepared in triplicate. The duplicate should be attached to the Report of Collection 

and the triplicate should be retained with the cashier for reconciliation/record purposes. 

Collections from the regions should be deposited daily with the regional OWWA. Account 

with the Land Bank of the Philippines and should be remitted monthly to the OWWA Capital 

Fund Account No. 1701-0000-01. Remittance should be done not later than the first week of 

the succeeding month. 

For overseas collections, the cashier or Welfare Officer should open an account 

preferably with Land Bankís correspondent banks, where daily deposits shall be made. 

Arrangements with the bank shall be made to ensure that no withdrawals shall be allowed and 

that only fund transfers to our account with Land Bank shall be permitted. All collections shall 

be remitted monthly with the OWWA Dollar Account with Land Bank under Account no. 

0014-0014-25. The duplicate copy of the Remittance Advice should be attached to the Report 

of Collections and the triplicate copy shall be kept by the Cashier or Welfare Officer for 

reconciliation. 

VII. REPORT REQUIREMENTS 

The designated cashier shall submit and maintain the following reports/books: 

Report Book Frequency Time of Submission 

Cash Book Daily Maintained at post 

Report of Collection Monthly 1 st week of the succeeding month 

Report of Accountability Monthly 1 st week of the succeeding month 

Bank Book Maintained at post 

Statement of Account Maintained at post 

Summary of Collection Weekly Every Monday of the succeeding 

and Deposits week 

For compliance. 


(SGD.) WILHELM D. SORIANO 

Administrator


PHILIPPINE DEPOSIT INSURANCE CORPORATION 


PDIC Regulatory Issuance No. 2002-01 

Amended Rules and Regulations on Advertisement 

of Membership with PDIC 

Pursuant to PDIC Board Resolution No. 2002-02-018 dated 22 February 2002, the 

following Regulations are hereby promulgated: 

1. The PDIC shall supply the signs which an insured bank shall display. The signs shall be of 

two (2) types: Desktop or standees and sticker or decal. 

2. The desktop sign shall be displayed at the tellerís counter or window where insured 

deposits are usually and normally received in the bankís principal place of business and in all 

of its branches and/or offices. Every two counters or windows may share one desktop sign. 

3. The sticker shall be posted at each banking unitís main entrance/doors. 

4. At the site of Automated Teller Machines (ATMs), an insured bank shall either display a 

desktop sign or shall post a sticker, whichever is appropriate. Every two ATMs may share 

one sign provided such sign is prominently displayed. 

5. The signs shall be prominently displayed at all times. 

6. An insured bank may use a sign other than the official sign, and it may be of a type other 

than that prescribed herein, provided it meets the following requirements: 

a. That it is of the same size, wording and appearance as the official sign; 

b. That it has been approved in writing by PDIC as conforming to the requirements 

of Section 6.01 of the PDIC Rules and Regulations. 

Such approval being given in individual cases where: 

i. The official sign is not in harmony with the bankís counters and fixtures; or 

ii. The official sign cannot be adequately displayed because of the type of 

construction of the bankís counters and fixtures. 

7. In situations where the bank is unable to display the official sign for reasons cited in Item 

No. 6 of these Rules, the following shall be undertaken by the bank: 

a. Inform PDIC in writing of the particular circumstance hindering the display; 

and 

b. Present the substitute sign to PDIC for approval.

490 


8. Temporary exemption from the display requirements may be granted upon the PDIC 

Board of Directorsí approval of the bankís written application setting forth the facts. 

9. An insured bank shall include the PDIC insurance statement or membership emblem in 

the following types of advertisements: 

a. Advertisements of a bankís deposit products/services; 

b. Advertisements pertaining to Automated Teller Machines (ATM) services; 

c. Advertisements indicating the name of the bank, without showing or mentioning 

any particular bank product or banking services. 

d. All other advertisements not included in No. 13 of these rules. 

10. The PDIC insurance statement shall be of two (2) types: 

a. The official advertising statement ìMember of the Philippine Deposit Insurance 

Corporation. Deposits Insured up to P100,000.00î, which shall be used in all 

printed advertisements; and 

(Printed advertisements shall include, among others, advertisements shown on 

newspapers, magazines, journals, directories, banners, billboards, posters, 

brochures, and leaflets) 

b. The short-title ìMember: PDICî, which shall be used in all TV, film strips, radio 

advertisements and banksí or branchesí (in the case of foreign banks) home or 

main page. 

11. The short title cannot be substituted for the official advertising statement required for 

printed advertisements. 

12. The membership emblem may be used by an insured bank in its printed advertisements 

as an alternative to the PDIC insurance statement. The PDIC emblem is a pattern which is of 

the same design as the sticker or decal. 

13. The PDIC insurance statement may be excluded in the following: 

a. Advertisements relating to: 

1. Trust business or trust department products or services; 

2. Safekeeping box business or services; 

3. Real estate business or services; 

4. Armored car services; 

5. Securities business; 

6. Travel department business; 

7. Loan services; 

8. Trade financing; and 

9. Credit card services, except when the acquisition of a credit card requires the 

maintenance of a deposit account. 

b. Advertisements promoting human values. 

c. Advertisements pertaining to the requirement of a bank personnel, except when 

such advertisements are also included in another advertisement announcing the 

opening of a new bank branch or office.


d. Advertisements which are of the type or character making it impractical to 

include thereon the PDIC insurance statement or emblem: 

i. Advertisements not setting forth the name of the insured bank, except when 

the advertising bank is identifiable. 

ii. Promotional items, which are of a size that cannot practically accommodate 

the insurance statement or emblem. 

e. Statements of Condition and Reports of Condition of an insured bank, publication 

of which is required by law. 

f. Bank supplies such as stationery, envelopes, deposit slips, checks, drafts, 

signature cards, etc. 

14. The PDIC insurance statement may be translated in any other dialect or language provided 

that the transaction has been formally approved by PDIC. 

15. Whenever the official advertising statement or emblem appears in any printed 

advertisement of an insured bank, it shall be of such size and print that is clearly legible. 

16. In case of television and/or filmstrip advertisements, the short title must be shown for at 

least three (3) seconds. 

17. In case of radio advertisements, a particular mention of the short title must be made. 

18. In case of the bank official website, the official PDIC insurance statement or emblem, 

which is linked to PDIC website, must appear in the bankís home or main page or in the 

case of foreign banks, in the branchesí home or main page. 

Instructions to download the PDIC official statement or emblem and link to PDIC website 

can be assessed through www,pdic.gov.ph/pdiclink.asp on the internet. 

19. A bank found violating the advertisement requirements shall be charged a penalty of not 

more than P1,000.00 for each day a violation has been committed in accordance with 

Section 16(A) of R.A. 3591, as amended. 

All other related rules and regulations which are inconsistent herewith are hereby 

repealed or amended accordingly. 

These Regulations shall take effect fifteen (15) days after publication in a newspaper of 


For guidance and strict compliance 


(SGD.) NORBERTO C. NAZARENO 

President and Chief Executive Officer

492 


PHILIPPINE ECONOMIC ZONE AUTHORITY 


1.0 PURPOSE 


Newly Approved Rates of Administrative Fees and Charges 

This Memorandum Circular is issued pursuant to Executive Order No. 197 dated 13 

January 2000 ìxxx directing all departments, bureaus, commissions, agencies, offices, and 

instrumentalities of the national government including government-owned and controlled 

corporations to increase rates of their fees and charges xxxî. 

2.0 SCOPE 

This Circular shall apply to all ecozone developers, ecozone export enterprises, service 

enterprises, utilities, facilities, including operators of commercial establishments and transport 

services, and other entities registered with PEZA. 

3.0 SCHEDULE OF REVISED RATES 

As approved by the PEZA Board of Directors in its meetings on 03 October 2000 and 

11 October 2000, through Resolution Nos. 00-333 and 00-333-A, the following are the new 

rates of fees and charges to be assessed by PEZA: 

A. ANNUAL ADMINISTRATIVE FEE TO ECOZONE DEVELOPER AND OPERATORS 

Those with one (1) to five (5) locators - P 650,000.00 

Those with six (6) to ten (10) locators - 1,000.000.00 

Those with more than ten (10) locators - 1,000,000.00 plus 75,000.00 per 

locator in excess of ten (10) 

B. FEES TO ECOZONE DEVELOPERS 

1. Registration of Private Economic Zone 

a. Application for New Ecozone P 12,000.00 

b. Application for Any Amendment to Registration 1,200.00 

c. Registration Fee 

c.1 Small (25-75 has.) 12,000.00 

c.2 Medium (76-200 has.) 24,000.00 

c.3 Large (>201 has.) 36,000.00 

d. Expansion of New Ecozone (Difference between 

the original fee and the fee in the next appropriate 

category) 

2. Development Permit (per application) 2,500.00/ha. 

3. License to Sell (per application) 1.00/sq. m. 

4. Alteration of Development Plan (per application) 1,000.00


5. Change of Ecozone Owner (per application) 1,000.00 

6. Change of Ecozone Name (per application) 1,000.00 

7. Replacement of damaged or lost Development Permit 

(per application) 1,000.00 

C. FEES TO REGISTERED ENTERPRISES 

I. Registration Fees 

1. Registration of Ecozone Enterprise 

a. Application Fee 

a.1 Application for New Project (non-pioneer) 3,600.00 

a.2 Application for New Project (pioneer) 6,000.00 

a.3 Application for Any Amendment in Registration 

Except for Pioneer Status 1,200.00 

a.4 Application for Conversion from Non-Pioneer to 

Pioneer Status 2,400.00 

a.5 Application for Expansion of Production Capacity 2,400.00 

b. Registration Fee 

b.1 Registration for New Projects 6,000.00 

b.2 Registration for Expansion of Project 

New Product Line/Activity (thru a 

Supplemental Agreement) 3,600.00 

2. For Service Enterprise 

a. Registration Fee 3,600.00 

b. Franchise Fee per Annum 

b.1 Brokerage, trucking, forwarding and security services 6,000.00 

b.2 Banks, Developers (construction of buildings for 

lease/sale) 12,000.00 

b.3 Container Yard Facilities 12,000.00 

b.4 Ferry Terminal Services 12,000.00 

b.5 Telecom Services and Other Utilities 

P6,000 + 10% of monthly gross revenues from operations 

b.6 All Other Service Enterprises 3,600.00 

II. Processing Fees 

1. Local Sales of Quality Finished Products 

P1,000 or 2% of selling price whichever is higher, but not to exceed P10,000 

per transaction 

2. Local Sales of scraps, rejects 5% of selling price 

3. Constructive/Indirect Exports: 

a. Below US$10,000.00 180.00 

b. Above US$10,000.00 360.00

494 


4. Availment of Incentives 

a. Endorsement of 5% Gross Income Tax and 

Availment of Income Tax Holiday 1,200.00 

b. Extension of ITH Entitlement Period 1,200.00 

5. Certifications/True Copies 

a. Certification of Registration 120.00 

b. Filing/Approval of Application 120.00 

c. Other documents 120.00 

6. Mortgage of Building, Equipment and Other Assets 600.00 

7. Import Permit 

a. No Commercial Value 24.00 

b. With Commercial Value (in US$) 

- Up to 100 60.00 

- 101 to 1,000 120.00 

- 1001 up to 10,000 180.00 

- 10,001 up to 50,000 240.00 

- 50,001 up to 100,000 300.00 

- 100,001 up to 500,000 360.00 

- 500,001 up to 1,000,000 420.00 

- 1,000,001 up to 5,000,000 480.00 

- 5,000,001 up o 10,000,000 540.00 

- Over 10,000,000 600.00 

8. Extension of Import Permit 24.00/permit 

9. Request of Amendment of Import Permit 24.00/permit 

10. Processing of Visas for Foreign Nationals 780.00/head 

11. Farm-Out and Inventory 

a. Registration 1,200.00 

b. Application and Processing of Letter of Authority (LOA) 1,200.00 

c. Renewal of LOA 1,200.00 

d. Amendment of LOA 600.00 

12. Zone Vehicle Sticker/Pass (per annum) 60.00 

D. OTHER FEES 

1. Application for Registration of Scrap Buyers 1,200.00 

2. Ecozone Regulatory and Administrative Fees (per anum)


a. Parking Fees: 

a.1 Jeep 1,200.00 

a.2 Tricycle 720.00 

a.3 Delivery Vehicle 240.00 

b. Special Permit to Operate in the Zone: 

b.1 Shuttle services (mini-buses which services are under 

contract with zone enterprise) 1,200.00 

b.2 Delivery Vehicles 

b.2.1 Truck/Van/Pick-Up of manufacturer/ 

producer sub contractor/dealer fo certain products 1,200.00 

b.2.2 Heavy Equipment/Trucks/Containers 1,200.00 

b.2.3 All other Delivery Vehicles 240.00 

b.3 Service Jeep 720.00 

c. Ecozone Function Rooms: 

c.1 First 4 hours 1,200.00 

c.2 Excess of 4 hours 120.00/hr. 

3. Business Permit Fes (per annum) 

a. Eateries 600.00 

b. Grocery Store 840.00 

b.1 Additional Fee for selling beer, liquor and cigarettes 360.00 

c. Bake Shop 600.00 

d. Sari-Sari Store 480.00 

d.1 Additional Fee for selling beer, liquor and cigarettes 240.00 

e. Service Shops 360.00 

f. General Merchandise Shops/Stores 480.00 

g. Wet Market Stalls 360.00 

h. Amusement: 

h.1 Billiards/poolrooms, using ball each table 120.00/table 

h 2. Bowling Center/Cinema 4,800.00 

4. Garbage Collector Fee (for zone entities) 

a. Per Cubic Meter 60.00 

b. Per Truckload 360.00 

c. For Service Enterprises or Persons or entities 

engaged in trade or commerce 90.00 

5. Use of PEZA Equipment: 

a. Link-Belt Crane 25 ton capacity 1 1,012.00/hr. 

b. Fork Lift 5 ton capacity 570.00/hr. 

c. Pay Loader (new) 450.00/hr. 

d. Bulldozer (new) 678.00/hr.

496 


e. Mitsubishi Dump Truck 688.00 

f. Prime Mover/Trailer 40 ton capcity, low bed operated: 

f.1 Within the zone 1,238.00/hr. 

f.2 BEZ to Balanga 5,775.00/trip 

f.3 BEZ to San Fernando 10,164.00/trip 

f.4 BEZ to Manila 20,700.00/trip 

f.5 BEZ to CEZ 25,730.00/trip 

f.6 BEZ to BCEZ 32,460.00/trip 

6. Sewerage Fee 4.80/cu.m. of Water Consumption 

7. Other Business Establishments: 

4.0 EFFECTIVITY 

a. Hotel/Gas Station 4,800.00 

b. Accounting/Auditing Services/and all other persons/entities 

engaged in the profession inside the zone 2,400.00 

c. General Contractor/Advertising/General Services/Film 

making/shooting 2,400.00 

d. Service Fee 60.00 

e. Filing Fee 60.00 

f. Sanitary Permit Fee 90.00 

g. Police Clearance Fee 60.00 

The effectivity of the new approved rates shall be as of 01 October 2000. 

5.0 FOR GUIDANCE 

Adopted:14 Nov. 2000 


(SGD.) LILIA B. DE LIMA 


--o0o-- 


Penalties to be Imposed to Truckers, 

Brokers and Freight Forwarders 

In view of the provisions of Section 8 (A), Rule XXV of the Rules providing that the 

Schedules of Penalties provided thereunder shall apply to all ECOZONE Enterprises, notice 

is hereby given, therefore, that the said Schedules of Penalties, which are reproduced 

hereunder, shall likewise apply to, among others, truckers, brokers and freight forwarders 

for any acts or omissions in violation of the Rules, any provision of their Registration 

Agreement, or any of the terms and conditions of the permit/franchise issued by the Authority.


The Schedules of Penalties are as follows: 

ì1. For late filing of financial statements, income tax returns, performance reports, 

annual reports and all other reports/documents as specifically enumerated under 

Section 4 Rule XXI or required under existing circulars of the PEZA: 

Basic Fine Daily Fine 

1 st Violation P 500.00 P 50.00 

2 nd Violation 1,000.00 150.00 

3 rd Violation 2,000.00 200.00 

2. Failure to wear or display openly the prescribed ECOZONE identification cards/ 

passes - 

1st violation - Reprimand 

2nd violation - Confiscation of ECOZONE identification cards/ 

passes with denial of access to specific areas 

in the ECOZONE for ten (10) days 

3rd violation - Permanent confiscation of identification cards/ 

zone passes with perpetual denial of access 

to specific areas in the ecozone. 

3. For violation of Rules X and XI of these Rules: 

FIRST VIOLATION a fine ranging from 50% to 100% of the value of the 

goods or merchandise. 

SECOND VIOLATION a fine ranging from 101% to 150% of the value of the 

goods or merchandise. 

THIRD VIOLATION a fine ranging from 151% to 200% of the value of the 

goods or merchandise 

For purposes of this rule, the value of the goods shall mean the average valuation 

appearing in the invoices, commercial documents or records on file with the PEZA for the 

same or similar goods or merchandise for the last three (3) years reckoned from the date of 

violation or in the absence thereof, the latest CIF valuation of the Bureau of Customs on the 

subject goods or merchandise. 

B. Suspension of Permits - The PEZA may suspend, withhold, disapprove or revoke import 

or export permits, authority to engage in local sale, authority to farm-out, to avail of any 

incentive or privilege being administered by the PEZA for failure to comply with these 

Rules, any provision of the Registration Agreement between the PEZA and the ECOZONE 

enterprise, the terms and conditions of the permits/franchises issued by the PEZA and/or 

for violation of the Act and the pertinent provisions of the Code and the Decree within a 

stipulated or reasonable period of time.

498 


C. Cancellation/Revocation - Registration, permit and/or franchise of an ECOZONE enterprise 

may be cancelled for any of the following grounds: 

(a) Failure to maintain the qualifications of registration/permit/franchise as required. 

(b) Violation of any pertinent provision of the Act/Code and/or Decree; and 

(c) Violation of any of these Rules and Regulations, the corresponding implementing 

memoranda or circulars or any of the general and specific terms and conditions of the 

Registration Agreement between the PEZA and the ECOZONE enterprise or violation of 

the terms and conditions of the permit/franchise issued by PEZA. 

However, delay by the ECOZONE enterprise in the implementation of the timetable of 

its project as set by the PEZA shall result in the automatic cancellation of the certificate of 

registration/permit/franchise unless extended or a different period is set by the PEZA or 

these Rules. 

The imposition of the above penalties shall be without prejudice to the assessment and 

collection of customs duties and taxes and/or forfeiture in accordance with the applicable 

provisions of the Tariff and Customs Code of the Philippines.î 


For your guidance and information. 





--o0o-- 

Memorandum Order No. 2001-001 

Rental Fees on Public Economic Zone Industrial 

Lots and Standard Factory Buildings 

The PEZA Board of Directors, in its meeting on 15 January 2001, approved Board 

Resolution No. 01-015, amending Board Resolution No. 97-297 and providing for the following: 

1. Locator enterprises in the public economic zones (i.e., Bataan, Cavite, Baguio City and 

Mactan Economic Zones), whether existing or new, shall make a ìgood faith depositîequivalent 

to three (3) months rentals, which shall not be applied to current monthly rentals and which 

may be refunded upon termination of lease contract or offset against any obligations of the 

locator enterprise to PEZA. 

In this connection, all locator enterprises are required to comply with the three (3) 

months ìgood faith depositî on or before 31 May 2001.


2. In addition to the ìgood faith depositî, locator enterprises shall be required to pay regularly 

the monthly rental fees for public economic zone industrial lots and standard factory buildings. 

Failure to pay the monthly rentals shall be subject to appropriate penalties. 

For immediate compliance. 

Adopted: 24 Apr. 2001 



RESOLUTION NO. 01-015 

WHEREAS, under PEZA Board Resolution No. 97-297 dated 15 September 1997, 

locator enterprises which will establish business operations inside public economic zones 

after issuance of said board resolution shall be required to pay rental fees for one (1) year in 

advance for the land and buildings they occupy; 

WHEREAS, as to existing locator enterprises, they shall be allowed to continue paying 

rentals on a monthly basis or an annual rental fee equivalent to the present value of the 

monthly rentals discounted at ten percent (10%) per annum; 

WHEREAS, PEZA Zone Administrators have reported that most locator enterprises are 

finding it difficult to pay their annual rental fees in advance due to limited capitalization and 

cash flow constraints during start-up of operations; 

WHEREAS, majority of the companies locating in the public economic zones are 

relatively lesser in size, resources and exposure compared to locator enterprises in private 

economic zones; 

WHEREAS, management recommended to the PEZA Board several options in the 

payment of rentals by locator enterprises in public economic zones; 

RESOLVED, that the payment of rentals by locator enterprises in the public economic 

zones, whether existing or new, shall be on a monthly basis with one (1) month deposit and 

two (2) months advance; 

RESOLVED, FURTHER, that this resolution supersedes and amends Board Resolution 

No. 97-297. 

(SGD.) ATTY. LUISITO A. TRINIDAD 

Corporate Secretary 


RESOLVED, that rental fees for land and building shall be paid on annual basis starting 

January 1997 subject to existing Contract provisions. Locators already paying on a monthly 

schedule may opt to pay present value annually discounted at 10%, subject to COA Rules 

and Regulations.

500 



(SGD.) PAULO R. GARCIA 

Acting Corporate Secretary 

--o0o-- 


Sub-Contracting Jobs Performed by Economic Zone Export-Producer 

Enterprises for Domestic Market-Oriented Enterprises: Inclusion of 

Sub-contracting Fee Revenues Under Local Sales Allowance and 

Imposition of Local Sales Processing Fees 

Revenues earned by economic zone export-producer enterprises from sub-contracting 

jobs performed for domestic market-oriented enterprises should be counted as part of local 

sales in order to prevent abuse in the use of machinery and equipment economic zone 

export-producer enterprises are allowed to import tax and duty-free. The revenues should be 

limited to the actual amounts received by an enterprise for the sub-contracting job/activity 

performed, which should include cost of labor and the value of other production inputs 

owned and supplied by the economic zone export-producer enterprises, overhead and other 

costs. Cost of raw materials, semi-finished products and other materials supplied (i.e., farmedin) 

by the domestic market oriented enterprises for which the sub-contracting job is being 

performed should not be counted as part of the subcontracting fee/revenue. 

As in local sales of finished products by economic zone export-producer enterprises, a 

Local Sales Processing Fee (LSPF) of 2% shall be imposed on the Sub-contracting Fee for 

every sub-contracting job performed for domestic market-oriented enterprise, provided that 

the LSPF for each transaction shall not be less than P1,000.00 or shall not exceed P10,000.00 

per transaction, per Memorandum Circular No. 99-0009 dated 09 November 1999, 

implementing PEZA Board Resolution No. 99-263 dated 06 October 1999. 

Please note that the 2% Local Sale Processing Fee, as an administrative service fee, 

already covers the application fee which was previously set at P1,000.00 and collected 

separately from the 2% processing fee. 


Adopted: 13 Nov. 2000 




--o0o-- 

Memorandum Circular No. 99-0009, s. 1999 

Explanatory Notes in the Recent Adjustment of Local Sales Processing Fee


We have received a number of calls, re PEZAís adjustment of the Local Sales Processing 

Fee (LSPF), which maintained the rate at 2% of sales value but set a minimum fee of 

P1,000.00 and a maximum fee of P10,000.00. 

Some economic zone enterprises with relatively low-value sales (i.e., sales less than 

P50,000.00) complained that the P1,000.00 minimum LSPF is higher than what they had to 

pay prior to the adjustment. Others wanted to know if the maximum LSPF of P10,000.00 

applies to their entire authorized annual local sales allowance or to one sales-transaction 

only. 

In this connection, please take careful note of the following important points: 

1. The original LSPF of 2% of sales was perceived as a tax, in as much the fee was based on 

an ìad valoremî rate (i.e., it was based on value and did not have a maximum limit). 

Consequently, a number of companies complained that they were paying PEZA huge 

sums of money for their local sales. They pointed out that the local sales allowance is 

intended to be an incentive for export producers and, therefore, should not be taxed by 

PEZA. 

2. The PEZA Management Committee decided that, as an administrative fee, the LSPF 

should reasonably cover all costs pertaining to the processing, issuance, recording, 

monitoring and filing of authorized annual local sales allowances and permits for withdrawal 

of goods (to be sold in the domestic market) from the economic zones. The PEZA 

Management Committee further decided that, as much as possible, the LSPF should be a 

fixed amount, preferably a reasonably small one. 

3. The first estimate was for PEZA to charge a fixed LSPF of P5,000.00; the amount was 

subsequently lowered to P3,000.00. 

A fixed LSPF of P5,000.00 will benefit enterprises with local sales usually valued at 

P250.000.00 or greater and will be disadvantageous to those with local sales usually 

valued lower than this amount. 

Similarly, a fixed LSPF of P3,000.00 will benefit enterprises with local sales usually 

valued at P150,000.00 or greater and will be disadvantageous to those with local sales 

usually valued lower than this amount. 

4. In order that the LSPF will not be too burdensome for economic zone enterprises with 

smaller local sales transactions (i.e., local sales lower than P150,000.00), the PEZA 

Management Committee decided to implement a ìcompromiseî scheme that will ensure 

economic zone enterprises with big local sales transactions that their LSPF will not exceed 

P10,000.00 no matter what the value of their local sales and, at the same time, allow PEZA 

to ìcross-subsidizeî the LSPF of economic zone enterprises with smaller local sales 

transactions. The ìcompromiseî LSPF scheme consists of: 

l A minimum LSPF of P1,000.00 (for local sales with values less than or equal to 

P50,000.00). 

l LSPF of 2% of sales value (for local sales with values greater than P50,000.00 but less 

than P500,000.00); and

502 


l A maximum LSPF of P10,000.00 (for local sales with values of P500,000.00 or greater. 

5. The LSPF rates (i.e., minimum, 2% of sales value and maximum) shall apply to each 

sales-transaction or to each batch or shipment of goods to be withdrawn from an economic 

zone enterprise for local sales. The LSPF has nothing to do with an economic zone 

enterpriseís authorized annual total local sales allowance. 

6. Economic zone enterprises with small-value local sales transactions may mitigate or reduce 

the impact of the minimum LSPF of P1,000.00 per local sales transaction by arranging to 

sell in bulk to a trading company outside the economic zone for ìretailî resale to traditional 

buyers. 



(SGD.) MARY HARRIET O. ABORDO 

Deputy Director General for Operations 


RESOLVED, That Resolution No. 95-163 dated 06 December 1995 is hereby amended 

insofar as the processing fee for local sales of quality finished products is concerned. 

RESOLVED FURTHER, That henceforth, the processing fee for local sales of quality 

finished products shall be two percent (2%) of the selling price: Provided, That in no case 

should the said processing fee be less than Php 1,000.00 nor more than Php 10,000.00 per 

transaction. 

(SGD.) ATTY. B. MARC A. CANUTO 


PHILIPPINE INTERNATIONAL TRADING CORPORATION 


Countertrade Monitoring Fees 

ìResolved as it is hereby resolved, that the Board of Directors of PITC approves the 

adoption of the following Schedule of Fees to be charged and collected by PITC for monitoring 

the performance of the countertrade obligations of government suppliers and/or their assignees 

pursuant to E.O. 120, s. 1993 and its Implementing Rules and Regulations. 

Resolved further, that the said fees, which are based on the total value of countertrade 

obligations, shall be categorized according to the type of government importation project, to 

wit:


CATEGORY A: Importation of capital equipment, machineries, spare parts and 

related items by government agencies/offices. 

CATEGORY B: Importation of essential/basic commodities or raw materials by 

government agencies/offices 

CATEGORY A: CAPITAL EQUIPMENT, MACHINERIES AND SPARE PARTS 

VALUE OF COUNTERTRADE COUNTERTRADE FEE RATE 

OBLIGATIONS (IN US$) 

25M or less 1.5% 

over 25M - 50 M 1.25% 

over 50 M - 100 M 1.00 % 

over 100M - 150M 0.75% 

over 150M - 200M 0.5% 

over 200 M 0.25% 

CATEGORY B: ESSENTIAL/BASIC COMMODITIES & RAW MATERIALS 

The countertrade fee for countertrade obligations arising from government importation 

of essential/basic commodities or raw materials shall be at a rate of not more than 0.25% of 

the value of the countertrade obligations performed/fulfilled. 

Resolved, furthermore, that the President of the Corporation be duly authorized to 

make the necessary adjustments or modifications of the above schedule of fees as the 

circumstances may warrant. 

Resolved, finally, that the aforesaid fees shall take effect immediately. 


(SGD.) MA. VICTORIA C. MAGCASE 


PHILIPPINE NATIONAL POLICE 

(National Headquarters) 


I. AUTHORITY 

Circular No. 2001-011 

Amending Memorandum Circular 2000-11, 

ìStreamlining the PNP Motor Vehicle Clearance Procedureî 

A. RA 6539, otherwise known as the Anti-Carnapping Act of 1972;

504 


B. SOP Nr 02 Streamlining the Motor Vehicle Clearance Procedure; 

C. PNPís Commitment to PGMAís SONA on Reducing Red Tape and Eradicating Graft and 

Corruption in Govít Agencies 

II. PURPOSES 

A. To reduce the steps/shorten the procedure in securing a Motor Vehicle Clearance 

Certificate without sacrificing its integrity and reliability. 

B. To have a one-stop-shop in securing a Motor Vehicle Clearance for faster, efficient, 

and better appreciated public service at the same time eliminating opportunities for graft and 

corruption. 

C. To further reduce Government expenses with a leaner manpower requirement and 

lesser accessory costs. 

III. SCOPE 

This Memorandum applies to all Traffic Management Group (TMG) Offices issuing 

Motor Vehicle Clearance Certificates and Crime Laboratory (CL) offices conducting macroetching 

examinations of motor vehicles. 

IV. POLICY 

A. All motor vehicles applying for Motor Vehicle Clearance Certificate shall undergo 

Physical Inspection and Stenciling by TMG Personnel prior to issuance of a Motor Vehicle 

Clearance Certificate. 

B. All motor vehicles found to have signs of tampering and/or alteration shall be 

immediately endorsed to the CL for macro-etching examination to possibly restore its original 

engine and chassis numbers. 

C. All newly manufactured (Brand New) motor vehicles shall be required the original 

Land Transportation Office Confirmation Certificate (LTOCC) as part of the documents required 

for Original Registration. Brand New motor vehicles shall be exempted from actual Physical 

Inspection. 

V. RESCISSION 

All issuances, memoranda and SOPs inconsistent with this Memorandum Circular are 

hereby rescinded. 

VI. EFFECTIVITY 

This Memorandum Circular shall take effect 15 days after publication in a newspaper 


(SGD.) LEANDRO R. MENDOZA 

Police Director General 

Chief, PNP


PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION 



HIV/AIDS Education in the PDOS 

There is an increasing recognition that migrants and mobile populations are more 

vulnerable to HIV/AIDS than populations that do not move. Given the fact that millions of 

Overseas Filipino Workers (OFWs) compose the greater bulk of Filipino migrant workers, 

the government recognizes an urgent need to systematically implement an HIV/AIDS 

prevention and control program. 

In coordination with other concerned authorities in both the national and international 

levels, the Philippine Overseas Employment Administration (POEA) has thus adopted a 

preventive strategy by integrating an HIV/AIDS Education component in its mandatory Pre- 

Departure Orientation Seminar (PDOS) and other information/education programs for OFWs. 

All accredited PDOS providers are therefore directed to integrate the HIV/AIDS module 

for OFWs in their PDOS. All accredited trainors who have not attended training on the new 

module shall coordinate with the Workers Education Division, Welfare and Employment 

Office for scheduling. 

This Memorandum Circular takes effect immediately. 

For compliance. 




(SGD.) ROSALINDA DIMAPILIS-BALDOZ 

Administrator 

--o0o-- 

POEA Rules and Regulations Governing the Recruitment 

and Employment of Land-based Overseas Workers* 



APPROVED: 


Chairperson

506 


(SGD.) ROSALINDA DIMAPILIS-BALDOZ (SGD.) LUZVIMINDA L. ELBINAS 

Board Member Board Member 

(SGD.) EZEKIEL T. ALUNEN (SGD.) VICENTE F. ALDANESE, JR. 

Board Member Board Member 


(SGD.) GREGORIO S. OCA 

Board Member 

--o0o-- 

POEA-OWWA Joint Circular No. 01, s. 2002 

Guidelines in the Provision of Return Tickets/Pre-Paid Travel 

Advices (PTAs) for Overseas Filipino Workers (OFWs) Due for 

Repatriation and the Payment of Cost of Repatriation of OFWs 

Advanced by the Overseas Workers Welfare Administration (OWWA) 

1.0 Purpose 

This circular is issued to set-up a common procedure in the repatriation of OFWs and 

improve the collection of cost of tickets as advanced by OWWA, in accordance with Republic 

Act No. 8042, otherwise known as the Migrant Workers and Overseas Filipino Act of 1995. 

2.0 Definition of Terms 

As used in this circular, the following terms shall be understood in the context indicated 

hereunder: 

2.1 Overseas Filipino Workers (OFWs) or Migrant Workers - a person who is to be engaged, 

or has been engaged in a renumerated activity in a state of which he or she is not a legal 

resident or in a vessel of foreign registry. A person ìto be engaged in a remunerated 

activityî refers to an applicant who has been promised or assured employment overseas 

and acting on such promise or assurance sustains damage and/or injury. 

2.2 Documented Migrant Workers -- are migrant workers who are authorized by the receiving 

country to enter, stay and engage in employment in that State in accordance with the laws 

of that State, such as: 

(a) those who possess valid passports and visas or permits to stay in the host country and 

whose contracts of employment have been processed by the POEA if required by law or 

regulation; or 

(b) those registered by the Filipinos Workers Resources Center or by the Philippine 

Overseas Labor Office (POLOs). 

Those who do not fall under the preceding paragraph are considered undocumented 

migrant workers.


2.3 Undocumented Filipinos - are migrant workers who are not authorized by the host country 

to enter, stay and work in that country, such as, but not limited to the following: 

(a) those who acquired their passports through fraud or misrepresentation; 

(b) those who possess expired visas or permits to stay; 

(c) those who have no travel documents whatsoever; and 

(d) those who have valid but inappropriate visas. 

2.4 Name Hire - a worker who is able to secure an overseas employment opportunity with an 

employer without the assistance or participation of any agency, duly processed by POEA 

as such. 

2.5 Direct Hire - a worker hired by members of the diplomatic corps, international organizations 

and such other employers as may be allowed by the Secretary of Labor. 

2.6 Government Hire - a worker hired for overseas employment primarily on a government to 

government arrangement and for foreign employers in such sectors as policy may dictate, 

thru the facilities of the POEA. 

2.7 Balik-Manggagawa (Vacationing Worker) - a landbased contract worker who is on a 

vacation or on emergency leave and who is returning to the same worksite to resume his 

employment. 

2.8 Agency Hire - a worker hired through a licensed recruitment placement or manning 

agency. 

2.9 PTA - Pre-paid Travel Advice 

2.10 POEA - Philippine Overseas Employment Administration 

2.11. OWWA - Overseas Workers Welfare Administration 

2.12 DFA - Department of Foreign Affairs 

2.13 POLO - Philippine Overseas Labor Office 

3.0 General 

3.1 When a need for repatriation arises and the foreign employer fails to provide for its cost, 

the Philippine Overseas Labor Office (POLO) shall notify the POEA to advise the concerned 

agency of such need. 

In case of failure of the agency to provide the ticket or prepaid ticket travel advice 

(PTA), POEA shall inform OWWA accordingly within 48 hours from agencyís non-compliance 

therewith. 

3.2 POEA shall determine if OFW is documented or undocumented. 

3.2.1 If undocumented, POEA shall immediately advise DFA and copy furnish OWWA of 

the need for repatriation.

508 


3.2.2. IF the OFW is documented, POEA shall further classify if he/she was deployed as 

balikmanggagawa, name hire/direct hire, Government hire or agency hire worker. The 

cost of PTA of the balikmanggagawa, name hire/direct hire and Government hire OFWs 

shall be advanced by OWWA without prejudice to reimbursement by the appropriate 

parties. 

3.2.3 In the case of an agency hire OFW, the POEA shall immediately notify the agency 

concerned of the need for repatriation with a recourse to documentary suspension, 

garnishment or other sanctions as the case may be. The agency shall provide the plane 

ticket or the PTA to the Filipino Workers Resource Center or to the appropriate Philippine 

Embassy and notify POEA of such compliance. The POEA shall inform OWWA of the 

action of the agency. 

3.2.4 If the employment agency fails to provide the ticket of PTA within 48 hours from 

receipt of the notice, the POEA shall suspend the license of the agency or impose such 

sanctions as it may deem necessary. Upon notice from the POEA, OWWA shall advance 

the cost of repatriation with recourse to the agency or principal. The Administrative sanction 

shall not be lifted until the agency reimburses the OWWA of the cost of repatriation with 

legal interest. 

3.3 In all cases where the principal or agency of the worker cannot be identified, cannot be 

located or had ceased operations, and the worker is in need and without means, the 

OWWA personnel at the jobsite, in coordination with the DFA, shall cause the repatriation. 

All costs attendant to repatriation borne by the OWWA are chargeable to teh Emergency 

Repatriation Fund provided in R.A. 8042, without prejudice to the OWWA requiring the 

agency/employer or the worker to reimburse the cost of repatriation, in appropriate cases. 

3.4 When repatriation becomes immediate and necessary, the OWWA shall advance the 

needed costs from the Emergency Repatriation Fund without prejudice to reimbursement 

by the deploying agency and/or principal, or the worker in appropriate cases. 

3.5 In the case of mandatory repatriation of underage migrant workers, the responsible 

officer at the foreign service post shall immediately course the repatriation of said underage 

Filipino migrant worker. The cost attendant to this activity shall be done correspondingly 

by the agency and/or principal or the OWWA or DFA as the case may be. 

3.6 The OWWA shall take charge of the collection of PTA advances in close coordination 

with the POEA. 

The POEA shall likewise provide OWWA on a monthly basis with a list of agencies 

which were meted orders of suspension of documentary processing and other sanctions for 

failure to respond to the directive of POEA to provide return tickets or PTAs for their deployed 

workers. Such suspension order or other sanctions shall not be lifted unless a clearance 

from OWWA is secured. 

If the agency continuously fails or refuses to reimburse OWWA of the amount it advanced 

for the repatriation of the worker, the agencyís bond may upon order of the Philippine 

Overseas Employment Administration be garnished to satisfy the claim of OWWA for 

reimbursement.


3.7 OWWA shall maintain a record of the following: 

a. list of the repatriated OFWs; 

b. number of PTA advances; 

c. itemized and total repatriation costs advanced by OWWA; 

d. amount paid by agencies to OWWA; 

e. names of delinquent payers; and 

f. other relevant data. 

4.0 Effectivity 

(SGD.) ROSALINDA DIMAPILIS BALDOZ (SGD.) WILHELM D. SORIANO 

Administrator Administrator 

POEA OWWA 


1.0 Purpose 

--o0o-- 

POEA-OWWA Joint Circular No. 02, s. 2002 

Guidelines in the Delivery of Welfare Services by the Philippine 

Overseas Employment Administration (POEA) and Overseas 

Workers Welfare Administration (OWWA) to Overseas 

Filipino Workers (OFWs) and Their Kins 

This circular is issued in compliance with the transitory provision of the Revised POEA 

Rules and Regulations to transfer the POEA Welfare Services to OWWA within three months 

from the effectivity of said Rules (Part IX, Sec. 1, POEA Revised Rules) and to clarify their 

respective roles pursuant to their mandate. 

The specific aim is to delineate the welfare service related functions of POEA and 

OWWA to eliminate gaps and overlaps which are creating confusion among the public. 

This circular is however without prejudice to the directives and issuances defining 

official roles and responsibilities of other agencies and officials of the DOLE. 

II. General Guidelines 

In order to achieve the common objectives, the respective offices shall provide assistance 

to OFWs as follows: 

A. The OWWA shall: 

1. Conciliate complaints of workers who are still at the jobsite, and/or their families arising out 

of the following cases, under the supervision of the Labor Attache:

510 


a. Contract violations involving OFWs on-site, such as: 

- non-payment of salaries 

- non-payment of employment benefits 

- delayed salaries 

- delayed allotment 

- reduction/underpayment of salary 

- non-payment of overtime work/rest day 

- illegal work 

- poor working conditions 

- job substitution 

- finished contract - unable to come home 

- breach of contract 

- termination of employment 

- other related cases 

b. Common Welfare Problems of OFWs on site, such as: 

- tracing of whereabouts 

- non-communication 

- sexual abuse/rape 

- maltreatment/mistreatment 

- sexual harassment 

- detained 

- unfetched worker 

- accident 

- accident benefits 

- medical sickness/hospitalization/outbreak of epidemic 

- apprehended/arrested 

- claims for medical/sickness benefits 

- assistance for issuance of exit visa 

- claims for death benefits 

- request for death report 

- request for police report 

- request for official documents (police clearance) 

- medical repatriation 

- claim for airfare expenses 

- request for hold departure of OFW 

- non-remittance of allotment by OFW 

- non-issuance of work and residence permits (IQAMA) 

- gender problems 

- request for replacement 

- overstaying 

- prostitution 

- human trafficking 

- request to relay message to OFW 

- other problems 

2. Assist in requests for assistance/case involving seafarers who are still on board the 

vessel;


3. Undertake the repatriation of workers, remains and transport of their belongings under the 

following circumstances: 

a) Incapacity/inability of licensed agencies/employers to repatriate without prejudice to 

seeking recourse against them; 

b) In cases where the principals/recruitment agencies cannot be identified; 

c) In cases of war, epidemic, disasters or calamities, natural or man-made or other 

similar events; 

4. Assist repatriated OFWs at the airport/seaport. 

5. Provide legal assistance to OFWs on-site on cases involving employer-employee relationship 

in coordination wiith the DOLE; 

6. Provide insurance coverage, burial gratuity, medicare for OFWs and dependents and 

other forms of financial assistance under the existing programs of OWWA; 

7. Recommend to POEA matters of watchlisting or blacklisting of OFWs, foreign employers/ 

revocation of license of agency and suspension of its documentary processing/recruitment 

agencies; 

8. Provide human resource development, psycho-social and re-integration program for OFWs 

and their dependents; 

9. Assist in the non-support cases/unpaid allotments; 

10. Implement other welfare related projects mandated under RA 8042 and enabling acts of 

the agency; 

11. Maintain a shared information system for coordination and efficient delivery of services. 

B. The POEA shall: 

1. In cases of repatriation, notify the agency concerned to provide plane ticket or Prepaid 

Travel Advice (PTA), under pain of administrative sanction; (Sec. 15, R.A. 8042 and 

Secs. 54 & 55, Implementing Guidelines). 

2. Issue order for temporary watchlisting of foreign employers/principals upon recommendation 

by the Embassies/POLOs/OWWA and other agencies, until compliance with the laws, 

rules and regulations on overseas employment; 

3. Impose sanctions on licensed local recruitment agencies for failure to cooperate in providing 

welfare assistance to OFWs they have deployed; 

4. Suspend/Lift documentary suspension of processing of licensed agencies for its failure to 

provide PTA;

512 


5. Issue Welfare and Employment Office (WEO) Clearance Certificates to OFWs, agencies 

and principals; 

6. Provided technical and administrative support to the National Conciliation and Mediation 

Board (NCMB) in monitoring cases involving seafarers, their employers/principals that 

are being submitted to conciliation, mediation and voluntary arbitration, pursuant to the 

existing memorandum of agreement on the matter; 

7. Act on Complaints of OFWs who are still at the jobsite and/or their families arising out of 

pre-employment and disciplinary cases which are administrative in character; 

8. Maintain a system of referring cases to the appropriate agency which has jurisdiction over 

the request for assistance; 

9. Monitor incidents concerning OFWs as reported by agencies pursuant to POEA MC No. 

13, series of 1992; 

10. Establish welfare programs and services, such as pre-employment orientation seminars 

(PEOS), to prevent exploitation or abuse of OFWs; 

11. Assist in the collection of the cost of repatriation advanced by OWWA for the agency. 

12. Maintain a shared information system for coordination and efficient delivery of services. 

III. Effectivity 

This circular shall take effect immediately. 

(SGD.) ROSALINDA DIMAPILIS-BALDOZ (SGD.) WILHELM D. SORIANO 

Administrator, POEA Administrator, OWWA 

PHILIPPINE PORTS AUTHORITY 


PPA Operations Memorandum Order No. 06-2001 

Standby Penalty Charges at South Harbor and 

Manila International Container Terminal (MICT) 

The imposition of standby penalty charges has resulted in various conflicts between the 

operators and shipping lines in the application of crane productivity rate under PPA MC Nos. 

04-2001 and 08-2001. In order to resolve these, the following clarifications are hereby 

issued.


1. SCOPE 

This Memorandum Order shall cover the imposition of allowable standby penalty charges 

at the South Harbor and the MICT. 

2. OBJECTIVES 

2.1 To guide ATI and ICTSI in the proper imposition of allowable standby penalty charges; 

2.2 To resolve disagreements between the cargo handling service providers and the shipping 

lines with respect to the imposition of standby penalty charges. 

3. CLARIFICATIONS 

3.1 Standby Penalty Charges 

Standby penalty charges shall be applied on delays in the loading or discharging of 

containers, the causes of which are beyond the control of the terminal operator. In general, 

standby penalty charges shall be imposed from the time operation stops up to the time it 

resumes, under any of the following circumstances. 

3.1.1 Waiting for vesselís arrival, provided, the reckoning point shall be based on vesselís 

original ETA. Amendments to ETA should be submitted not later than 12 hours before ETA 

from foreign port and 6 hours from any local port; 

3.1.2 Waiting for shipís agent, provided, there will be no charge if agent transports 

quarantine doctor/boarding officer; 

3.1.3 Opening/closing bay covers by shipís crew, which is applicable only to McGregor or 

similar hatches; 

3.1.4 Waiting for shipís crew, provided, there is a written request from shipping line; 

3.1.5 Waiting for cargo from outside port zone, excluding exempted cargoes in the PPA 

ruling, i.e., transshipment. refrigerated, dangerous cargoes, etc., provided, there is a 

written request from shipping line; 

3.1.6 Snatching of cargo/container which involves the removal of container from the 

ëtween deck; 

3.1.7 Change of stowage plan shipís agent if submission of same is made after loading 

closing time (LCT); 

3.1.8 Waiting for loading sequence/bay plan if submission of same is made after LCT; 

3.1.9 Vesselís listing/trimming, provided, there is confirmation from the shipping line/ 

vessel command and terminal operator; 

3.1.10 Delay due to lack of lashing materials, revision of lashing scheme, provided, there 

is confirmation from the shipping line and terminal operator;

514 


3.1.11 Hold by customs and other authorities, provided, the cause is attributable to shipping 

lines; 

3.1.12 Vessel shifting berth, provided, there will be no charge if shifting is for the convenience 

of the terminal operator; 

3.1.13 Waiting for consigneeís transport which is applicable only in case of direct delivery. 

4. EFFECTIVITY 

This Order shall take effect November 15, 2001. 



(SGD.) BENJAMIN B. CECILIO 

Assistant General Manager 

Operations Office 

--o0o-- 

PPA Memorandum Circular No. 45-2001 

Implementing Rules and Regulations for 

Executive Order No. 27, dated 31 July 2001 

Pursuant to Section 4 of Executive Order No. 27, dated 31 July 2001, entitled ìAuthorizing 

the Philippine Ports Authority to Implement Pro-Poor Programs Within the Port Communities, 

Nationwide,î the following guidelines are hereby issued for the guidance and compliance of 

all concerned. 

1. OBJECTIVES 

1.1 To ensure that the policy of the Administrator to provide proper assistance to the 

marginalized sector of our society, particularly those living in the port communities 

nationwide, is fully and properly implemented. 

1.2 To implement pro-poor and social amelioration projects, programs and activities for 

informal settlers living within the port communities nationwide. 

1.3 To uplift and improve the skills and livelihood opportunities of the informal settlers living 

within the port communities through the conduct of various practical skills training. 

2. SCOPE 

This guidelines shall cover the marginalized sector of society, particularly those living 

within the port communities and PPA relocation sites. 

3. DEFINITION OF TERMS


3.1 Port Communities - That segment of society who lives within the port zone limits and 

normally derive their livelihood from the various commercial activities in the ports. 

3.2 Poor or Marginalized Sector of Society - Those who are living below the poverty line/level 

and cannot afford to provide for themselves and for their families the basic necessities in 

life. 

3.3 Pro-Poor Program/s and Social Amelioration Project/s (PPA-SAP) - This refers to a set 

or sets of activities which aim to improve the standard of living of the marginalized sector 

of society, particularly those living within the port communities. 

3.4 Skills and Livelihood Training - The conduct of special courses to introduce new skills or 

to upgrade certain skills in order to provide the participants/trainees with the necessary 

qualifications for certain livelihood opportunities and gainful employment. 

4. GENERAL GUIDELINES 

4.1 Pro-Poor Program and Social Amelioration Projects (PPA-SAP) 

4.1.1 The PPA-SAP shall cover, among others, the following areas of concern: 

a) Poverty alleviation 

b) Practical skills and livelihood training 

c) Health and sanitation services 

d) Responsible parenthood and values formation 

e) Other PPA-SAP which are suited and applicable to the community with particular 

attention to children 

4.1.2 All Port Management Offices (PMOs) shall submit thru their respective Port District 

Offices (PDOS) their PPA-SAP with the corresponding budgetary requirements, in 

accordance with the following schedule. 

a) For the last quarter of CY-2001, within fifteen (15) days from date of issuance 


b) For succeeding years, it shall be included in the submission of the PMOs 

regular plans and budget. 

4.2 Budgetary Allocation 

4.2.1 The budgetary requirements for pro-poor programs under E.O. No. 27 of Head 

Office and the PDOs/PMOs from the time of the issuance of E.O. No. 27 up to the end of 

2001 shall be charged to the GAD approved budget for 2001. 

4.2.2 To properly determine the supplemental budget requirement for each PMO covering 

CY-2002, all PMOs shall conduct a profile survey of the informal settlers living within the 

port community (Survey Form in ANNEX ìAî)*. The PMOs shall submit thru their respective 

PDOs to the Office of the Assistant General Manager for Finance and Administration 

(OAGM-FA) within fifteen (15) days from issuance of this guidelines a Consolidated 

Statistical Report using the format in ANNEX ìBî* hereof. 

*Text Available at Office of the National Administrative Register, U.P. Law Compled, Diliman, 

Quezon City.

516 


4.2.3 The profile survey shall be updated yearly or as needed. 

4.2.4 Each PMO shall also conduct a survey as to the various practical skills and livelihood 

training needs of informal settlers within its area of jurisdiction, e.g. cosmetology, 

dressmaking, food processing, reflexology, welding, etc. and other forms of assistance 

e.g. health services (medical, dental, mass immunization, etc.), educational facilities, 

sanitation and other similar needs. 

4.3 Special Task Force 

4.3.1 Each PDO shall officially create a Special Task Force (STF) for each of the PMOs 

within its jurisdiction to attend to the needs and other concerns of said special undertaking, 

and to ensure its systematic and efficient operation and management. 

4.3.2 The STF shall be responsible, among others, for the following: 

a) Preparation of the PPA-SAP for the PMO 

b) Determination of budgetary requirements for PPA-SAP 

c) Conduct of Profile Survey and the preparation of Consolidated Statistical Report 

d) Preparation of PPA-SAP quarterly reports and other reports which may be 

required by Management 

4.4 Assistance in the Sourcing of Funds 

The PDOs/PMOs thru their respective Special Task Forces shall assist trainees of 

practical skills and livelihood training courses in the sourcing of funds thru Non-Governmental 

Organizations (NGOs) or private entities which may have the capability and willingness to 

provide start-up capital to said trainees. 

4.5 Assistance in the Organization of Cooperatives 

As an integral part of PPA-SAP under the auspices of Gender and Development, the 

trainees shall be organized into cooperatives by PDOs/PMOs concerned. 

4.6 Reporting System 

4.4.1 All PMOs shall submit thru their respective PDOs a quarterly report of PPA-SAP 

activities conducted, cost incurred, problem/s encountered, other pertinent issues/concerns 

and suggested/recommended solutions using the format in ANNEX ìCî*. The quarterly 

report shall be submitted within ten (10) days after the end of the quarter. 


This Memorandum Circular takes effect immediately and shall remain in force coterminus 

with Executive Order No. 27. 

Adopted: 03 Dec. 2001



(SGD.) ALFONSO G. CUSI 

General Manager 

--o0o-- 

PPA Memorandum Circular No. 46-2001 

Monitoring of Chemicals under the Priority Chemicals List (PCL) 

1. AUTHORITY/REFERENCE 

1.1 Section 6(a) (iii) of Presidential Decree No. 857 

1.2 PPA Memorandum Circular No. 28-85 entitled ìGuidelines on the Handling and Storage 

of Dangerous Goodsî 

1.3 Republic Act 6969 entitled ìToxic Substances and Hazardous and Nuclear Waste Control 

Act of 1990î 

1.4 Section 30 of Republic Act No. 8749 entitled ìPhilippine Clean Air Act of 1999î 

1.5 Department of Environment and Natural Resources (DENR) Administrative Order No. 98- 

58 (Priority Chemicals List) 

1.6 Department of Environment and Natural Resources (DENR) Administrative Order No. 

200-18 entitled ìChemical Control Order (CCO) for Ozone Depleting Substancesî 

2. SCOPE 

This Circular shall be applied and implemented in all government and private ports 

under the jurisdiction of the Philippine Ports Authority. 

3. OBJECTIVES 

3.1 To properly monitor the movement of environmentally hazardous chemicals passing through 

the ports. 

3.2 To assist the DENR in the implementation of laws concerning the importation and 

transportation of chemicals particularly those covered by R.A. 6969 and R.A. 8749. 

3.3 To establish a database for chemicals hazardous to the environment. 

4. MONITORING GUIDELINES 

4.1 The following chemicals are under the Priority Chemicals List (PCL): 

4.1.1 Arsenic Compounds 

4.1.2 Asbestos

518 


4.1.3 Benzene 

4.1.4 Beryllium Compounds 

4.1.5 Cadmium Compounds 

4.1.6 Carbon Tetrachloride 

4.1.7 Chlorofluoro Carbons (CFCís) 

4.1.8 Chloroform 

4.1.9 Chlorinated Ethers 

4.1.10 Chromium Compounds 

4.1.11 Cyanide Compounds 

4.1.12 Diphenylhydrazine 

4.1.13 Ethylene Dibromide 

4.1.14 Ethylene Oxide 

4.1.15 Halons 

4.1.16 Hexachlorobenzene 

4.1.17 Hexachloroethane 

4.1.18 Lead Compounds 

4.1.19 Mercury Compounds 

4.1.20 Mirex 

4.1.21 Pentachlorophenol 

4.1.22 Phosgene 

4.1.23 Polybrominated Biphenyls (PBBs) 

4.1.24 Polychlorinated Biphenyls (PCBs) 

4.1.25 Selenium 

4.1.26 Tributyltin 

4.1.27 Trichloroethane 

4.1.28 Vinyl Chloride 

4.2 For every arrival of any of the chemicals above-mentioned, the PMO concerned shall 

record in a logbook indicating the following information list: the name, volume, weight and 

consignee/importer including the address and name of vessel. A monthly summary report 

shall be submitted to the Office of the Assistant General Manager for Operations within 

five (5) working days of the following month, using the attached Form*. 

4.3 Imported equipment in bulk (i.e. vehicle with air condition, refrigerator, air conditioning 

unit, cylinder) containing and/or using Ozone Depleting Substances (ODS) such as 

Chlorofluoro Carbons (CFCís), shall likewise be monitored and recorded in the logbook to 

include the chemical content, if practicable. 

4.4 The Clearing Officer (Marine Personnel) shall furnish the Safety Officer a copy of the 

manifest and shall likewise coordinate with the latter in the preparation of the monthly 

report. 

4.5 The PPA Committee on Safety, Health and Environment shall consolidate the reports and 

transmit the gathered information to the DENR-EMB on or before the 15 th day of every 

month. 

5. SEMINAR/TRAININGS 

To familiarize and enhance the capability of the Safety and Clearing Officers in identifying 

the chemicals under the Priority Chemicals List (PCL), appropriate seminars/trainings shall


be conducted by the PPA Training Center in coordination with the Environmental Management 

Bureau (EMB) of the Dept. of Environment and Natural Resources (DENR). 



Adopted:11 Dec. 2001 

(SGD.) ALFONSO G. CUSI 

General Manager 

PHILIPPINE PUBLIC SAFETY COLLEGE 

(DILG) 


BOT Circular No. 07, s. 2001 

PNPA Administrative Disciplinary Machinery 

Pursuant to Sections 66, 67 and 68 of Republic Act No. 6975, dated December 13, 

1990 as amended by RA 8551 dated February 20, 1998, Section 6, Rule IV of PPSC 

Operations Manual and Rule X of PPSC Education and Training Code, dated January 15, 

1997, the Investigation, Adjudication or Disposition of Administrative Cases Against the PNPA 

Cadets shall be in accordance with the following Rules: 

RULE I 

Purpose, Scope and Title 

Section 1. Purpose - To ensure uniformity in the conduct of investigation and disposition 

of administrative cases against erring cadets of the Philippine National Police Academy 

(PNPA), the procedure sets forth the specific policies and rules to be observed in the conduct 

of such investigation and disposition. 

Section 2. Scope - These rules and regulations delineate the organization, jurisdiction, 

powers, duties and procedures to be observed in investigating and adjudicating cases against 

erring PNPA cadets. 

Section 3. Title - This procedure shall be known as ìPNPA Disciplinary Machineryî. 

RULE II 


Section 1. Administrative Offense - refers to an act or omission in which a cadet may 

be administratively charged, and shall include, but not be limited to misconduct, violation of

520 


law, neglect of duty, irregularity in the performance of duty, incompetence, oppression, 

dishonesty and disloyalty to the government. 

Section 2. Serious Infraction of PNPA Rules and Regulations - refers to act(s) in 

violation of the PNPA Cadet Guide and punishable by commensurate penalty including 

dismissal from the Academy. It shall include, but not limited to the following: 

a. Violation of the Honor Code (i.e., cheating, stealing, lying, or tolerating the 

violation of the Honor Code). 

b. Unauthorized possession of firearms, ammunitions, explosives and other forms 

of deadly weapon; 

c. Conduct unbecoming of an officer or acts inimical or prejudicial to good order 

and discipline; 

d. Engaging in any form of gambling inside camp; 

e. Exceeding maximum allowable demerits; 

f. Gross insubordination; 

g. Habituality or recidivism; 

h. Drinking alcoholic beverages or liquor; 

i. Possessing, using, or pushing of dangerous drugs; 

j. Unauthorized absence or neglect of assigned duties; 

k. Causing physical injury to another; 

l. Causing damage or destruction to any government facility or property; 

m. Absence Without Official Leave (AWOL), cutting classes, malingering, violation 

of restriction orders; 

n. Unauthorized presence in off limits or restricted areas; 

o. Other analogous offenses as the Director or Commandant may determine. 

Section 3. Command Inspector - refers to the officer in charge of the Inspectorate and 

Internal Affairs Office of the PNPA. 

RULE III 

Summary Disciplinary Authority 

Section 1. Director, PNPA - The Director, PNPA shall be the summary disciplinary 

authority over all cadets of the PNPA. All decisions or orders of the Director, PNPA involving 

suspension or dismissal is appealable to the President, Philippine Public Safety College 

(PPSC). 

Section 2. Penalties - The Director, PNPA has the authority to impose the following 

penalties; admonition, reprimand, restriction to specified limits, withholding of privileges, 

suspension, or dismissal from the Academy. 

RULE IV 

Commencement of Administrative Action 

Section 1. Complaint or Delinquency Report - All proceedings must be commenced 

by a verified written complaint signed by the complainant or his duly authorized representative 

against any cadet(s) who appears to be responsible therefor. The proceedings may also be 

commenced by a Delinquency Report signed by competent authority.


Section 2. Form of a Complaint or Delinquency Report - The Complaint or Delinquency 

Report, which shall be drawn in clear, simple, brief and concise language, must contain the 

name of respondent cadet, rank, address, designation of violation or infraction complained 

of, the place, date and time of commission, and a brief statement of relevant and material 

facts. 

Section 3. Where to File the Complaint or Delinquency Report - All complaints and 

delinquency reports involving administrative offenses or serious infraction of PNPA rules and 

regulations shall be filed with the Office of the Director, PNPA. Thereafter, Director, PNPA 

shall direct the Command Inspector to conduct the pre-charge investigation. 

Section 1. Procedure - 

RULE V 

Pre-Charge Investigation 

a. Within two (2) days from receipt of the Complaint or Delinquency Report from the Summary 

Disciplinary Authority, the Command Inspector shall conduct preliminary inquiry wherein 

both the complainant(s) and the respondent(s) and their witnesses, if any, shall be notified 

of the complaint or Delinquency Report and summoned to appear before the investigating 

officer. 

b. The respondent(s) shall be furnished with a copy of the complaint or charges, affidavit(s) 

of witness(es), and pertinent documents submitted by the complainant(s), and an Order 

directing him to submit Explanation, attaching therewith any pertinent documents in support 

of his defense, should there be any, within three (3) days from receipt of the complaint. 

No extension to file explanation is allowed. 

c. Failure on the part of the respondent(s), despite due notice, to appear during the preliminary 

inquiry, or to submit his Explanation within the prescribed period shall be a basis for the 

investigation to proceed ex-parte. 

d. During the preliminary inquiry, the complainant shall be allowed to identify the respondent(s). 

Section 2. Report of Investigation - Within two (2) days after the preliminary inquiry, 

the Command Inspector shall submit to the Director, PNPA, his Report of the investigation 

together with his recommendation for either of the following actions: 

a. To dismiss the complaint for lack of jurisdiction and, thereafter, to refer the same to other 

disciplinary authority which has appropriate jurisdiction over the case; 

b. To impose demerit if the offense committed turns out to be not serious; 

c. To dismiss the complaint for lack of probable cause, or; 

d. To order the formal investigation of the case after finding that probable cause exists 

against the respondent cadet(s). 

Section 3. Referral of the Case to the Summary Hearing Officer - Upon approval by 

the Director, PNPA of the Command Inspectorís recommendation for the conduct of formal

522 


investigation, the case shall immediately be referred to the Summary Hearing Officer (SHO) 

duly designated by the Disciplinary Authority concerned, for the conduct of summary hearing. 

RULE VI 

Summary Hearing 

Section 1. Notification of Complaint/Charges and Order to Answer - Within one (1) 

day from receipt of the record of the case, the Summary Hearing Officer shall furnish, the 

respondent a copy of the complaint or charges filed against him, to include copies of the 

affidavits of witnesses and other documents submitted by the complainant, should there be 

any, and shall be directed to submit an answer or counter-affidavit or affirm his previously 

submitted explanation and other pertinent documents within five (5) days from receipt of the 

complaint, attaching therewith pertinent documents or evidence in support of his defense. 

Section 2. Failure or Refusal to File Answer - If the respondent fails or refuses to file 

his answer or counter affidavit within the period allowed under these Rules, he shall be 

deemed to have entered a plea of general denial of the charge. 

Section 3, Duration of Summary Hearing - Within twenty-four (24) hours after receipt 

of respondentís answer or expiration of the period to answer, the Director, PNPA or his duly 

designated Summary Hearing Officer shall conduct the hearing, which shall be finished not 

beyond five (5) successive days from its commencement. Should the respondent, despite 

due notice, fail to appear during the scheduled hearing, such failure shall be considered a 

waiver of his right to testify and the SHO shall conduct the hearing ex-parte. The SHO shall 

profound questions, interrogate witnesses, and examine material and relevant evidence in 

order to establish the truth and to arrive at a fair, just and adequate conclusion. 

Section 4. Report of Summary Hearing Officer - Within five (5) days from the termination 

of the hearing, the SHO shall submit to the Summary Disciplinary Authority (SDA) his report 

or evaluation. 

Section 5. Failure of Complainant to Appear - Failure of complainant to appear during 

the scheduled hearing, despite due notice, shall be a sufficient ground to dismiss the complaint 

for failure to prosecute, where the culpability of the respondent cannot be established without 

the testimony of the complainant. If the culpability of the respondent can be proved by 

evidence other than the testimony of the complainant, his non-appearance shall not be a 

ground to terminate the proceedings. 

Section 6. Affidavits of Witnesses to Serve as Direct Testimony - Being summary in 

nature, direct examination of witnesses shall be dispensed with and the sworn statements of 

witnesses or their affidavits shall take the place of their direct testimony subject to crossexamination. 

Either party shall limit cross-examination only on material and relevant matter. 

Cross-examination shall be limited to not more than fifteen (15) minutes for each witness. 

Section 7. Services of Counsel - Either party may avail the services of a counsel of his 

choice. 

Section 8. Notice or Summons to the Parties - The parties and witnesses shall be 

summoned to appear on the date set for summary hearing. Postponement of hearing shall 

not be allowed, except on meritorious grounds.


RULE VII 

Decision 

Section 1. Period to render decision - The Director, PNPA shall render his decision in 

writing and personally signed by him within five (5) days from receipt of Summary Hearing 

Officerís Report or Evaluation. 

Section 2. Contents of the Decision - The decision shall contain the names of the 

parties, the offense charged, a brief statement of the material and relevant facts, the findings 

and conclusion, the applicable laws, rules and regulations obtaining in the case and the 

disposition thereof. 

Section 3. Service of Decision - The decision of the Director, PNPA shall be served 

personally to both complainant and respondent wherever they may be found or by registered 

mail with return card at their last known address within two (2) days from rendition thereof. 

In all cases, proof of such service, shall be attached to the records of the case for 

purposes of determining jurisdiction in case of appeal. 

Section 4. Finality of Decision - The decision of the Director, PNPA is considered final 

and executory if no appeal or motion for reconsideration is perfected or filed within the 

reglementary period to appeal. 

RULE VIII 

Motion for Reconsideration 

Section 1. Who May File a Motion for Reconsideration - Either party may file a motion 

for reconsideration on the decision rendered by the Director, PNPA within the period to 

appeal. Only one (1) motion for reconsideration is allowed, which shall be resolved within two 

(2) days from the filing thereof. 

Section 2. Grounds for Motion for Reconsideration or Appeal - The respondent may 

file a motion for reconsideration or notice of appeal with the Office of the Director, PNPA 

based on the following grounds: 

a. New evidence has been discovered which materially affects the decision rendered; 

b. The decision is not supported by evidence on record; 

c. Errors of law or irregularities have been committed prejudicial to the interest of the 

movant; and, 

d. The penalty imposed is not commensurate to the offense committed. 

RULE IX 

Appellate Jurisdiction 

Section 1. Appellate Jurisdiction of President, PPSC - The decision of the Director, 

PNPA imposing the penalty of suspension from training or dismissal from the Academy may 

be appealed to the President, PPSC.

524 


Section 2. Perfection of Appeal - An appeal shall be perfected by the respondent by 

filing and serving upon the Director,PNPA a notice of appeal within three (3) days from 

receipt of the decision or resolution subject of appeal within three (3) days from receipt of 

the decision or resolution subject of appeal. Within forty-eight (48) hours from receipt of the 

notice of appeal, the Director, PNPA, shall forward the records of the case, duly numbered 

and initialed, and the exhibits properly marked, to include the summary record of proceedings 

to the Office of the President, PPSC. Position paper or record on appeal or memorandum 

may be filed by the appellant. 

Section 3. Period to Decide Appeal - The President, PPSC shall decide the appeal 

within ten (10) days after receipt of the entire records of the case from the Director, PNPA. 

The decision/resolution/order rendered by the President PPSC on cases brought to his 

Office on appeal shall be final and executory, unless a timely motion for reconsideration is 

filed with his Office within three (3) days from receipt of the said decision or resolution or 

order by the appellant. only one (1) motion for reconsideration is allowed which shall be 

resolved within five (5) days from receipt thereof. 

Section 4. Service of Decision - All parties shall be furnished with a copy of the 

decision or resolution or order rendered by the President, PPSC. 

RULE X 

Final Provisions 

Section 1. Repealing Clause - All rules and regulations and other issuances, or portions 

thereof, inconsistent with the Rules of Procedure are hereby repealed or modified accordingly. 

Section 2. Separability Clause - In the event that any provisions of these Rules are 

declared illegal, the validity of the other provisions shall not be affected by such declaration. 

Section 3. Effectivity - These Rules of Procedure shall take effect upon approval by 

the Board of Trustees. 


(SGD.) LEANDRO MENDOZA 

Police Director General 

Chief, PNP/Member 

(SGD.) ATTY. RAMSEY L. OCAMPO 

Police Director 

Acting President, PSC/Ex-Officio Member 

(SGD.) HON. JOSE D. LINA, JR. 

Secretary, DILG/Chairman 

Attested: 

(SGD.) DIR. DULCE G. REYES, MPSA 

Board Secretary


PHILIPPINE SCIENCE HIGH SCHOOL 


Implementing Rules and Regulations (IRR) of R.A. No. 7877 

or the Anti-Sexual Harassment Act of 1995, For the Philippine 

Science High School System (PSHS System) 

In compliance with Section 4 of R.A. No. 7877 or the Anti-Sexual Harassment Act of 

1995 and Section 58 of the ìAdministrative Disciplinary Rules on Sexual Harassment Casesî 

embodied in CSC Resolution No. 01-0940 and CSC MC No. 17, Series of 2001, the PSHS 

System Board of Trustees hereby promulgates these rules and regulations to effectively 

carry out the provisions of R.A. No. 7877, within the premises and jurisdiction of the PSHS 

System campuses. 

Rule I. Affirmation of State Policy and Commitment 

Section 1. The PSHS System: 

1.1 values the dignity of every individual 

1.2 enhances the development of its human resources 

1.3 guarantees full respect for human rights 

1.4 upholds the dignity of teachers, staff, employees, applicants for employment, students 

or those undergoing training, instruction or education 

Section 2. The PSHS System commits itself to provide a teaching-working environment 

that is free from all forms of sexual harassment. 

Rule II. Coverage 

Section 1. These Rules and Regulations cover the following: 

1.1 all school officials, teachers, staff, employees of agents of the school under a contract 

and students within the jurisdiction of the PSHS System. 

1.2 All applicants for a teaching or administrative position, applicants for admission as 

students, after receipt of the application by the campus 

Section 2. Definition of Terms 

2.1 PSHS System ñ includes the Office of the Executive Director, the PSHS Main Campus 

in Diliman and the six (6) regional campuses, namely, PSHS Nueva Vizcaya, PSHS 

Camarines Sur, PSHS Western Visayas, PSHS Eastern Visayas, PSHS Northern Mindanao 

and PSHS Central Mindanao. 

2.2 Student ñ means any person enrolled in the four-year secondary course at the PSHS 

System, including those who are participants in short-term training courses, seminars,

526 


workshops, review programs, contests or competitions conducted by any of the system 

campuses, on or off campus. 

2.3 Employee/Staff ñ means any person holding an appointment or designation in any unit 

of the PSHS System, including contractual employees and employees of agents of the 

school under a Contract assigned at a particular PSHS campus. 

2.4 Faculty/ Teacher ñ any teacher of the PSHS System, regardless of rank, including the 

guidance counselors, librarians, research assistants, as well as trainors/coaches, 

specialists, consultants and speakers invited during seminars, workshops, training and 

the like. 

Rule III. Sexual Harassment 

Section 1. Sexual Harassment is committed by: 

1.1 school officials, teachers, staff, coach, trainor and employees of agents of the school 

under a Contract or any other person; 

1.2 such official, teacher, staff, etc., has authority, influence or moral ascendancy over 

another in any aspect of academic or administrative work in any campus, classroom, 

office or unit of the PSHS System; 

1.3 such official, teacher, etc., demands, requests or otherwise requires any sexual favor 

from the other, regardless of whether the demand, request or requirement for submission 

is accepted or not by the object of such act. 

Section 2. Other persons liable for sexual harassment: 

2.1 Any person who directs or induces another to commit any act of sexual harassment as 

herein defined; 

2.2 Any person who cooperates in the commission thereof by another without which sexual 

harassment would not have been committed. 

Section 3. In a work-related environment, sexual harassment is committed when: 

3.1 the sexual favor is made as a condition for the hiring/employment/re-employment of the 

individual who is the object of sexual harassment; or 

3.2 the sexual favor is made as a condition for granting such a person favorable compensation 

or promotion or any other terms, conditions or privileges; or 

3.3 the refusal to grant the sexual favor results in limiting, segregating or classifying a 

faculty/teacher/staff which would discriminate, deprive him or her or diminish employment 

opportunities or otherwise adversely affect such faculty member or staff; 

3.4 the above acts would impair the teacherís/staffís rights or privileges under existing Civil 

Service laws, rules and regulations; or


3.5 the above acts would result in an intimidating, hostile or offensive environment for the 

teacher or staff. 

Section 4. In the school or training environment, sexual harassment is committed: 

4.1 against a student, tutee, trainee or one who is under the care, custody, supervision or 

advisorship of the offender; 

4.2 against one whose education, training, apprenticeship or tutorship is entrusted to the 

offender; 

4.3 when the sexual favor is made as a condition to the giving of a passing or a high grade, 

or the granting of honors and scholarships, or the payment of a stipend, allowance or 

other benefits, privileges or considerations; or 

4.4 when the sexual advances result in an intimidating, hostile or offensive environment for 

the student, trainee or apprentice. 

Section 5. Sexual Harassment under these rules includes those in peer relationships, 

such as: 

5.1 faculty-faculty 

5.2 employee-employee, and 

5.3 student-student relations 

Section 6. Sexual harassment under these rules also includes those involving harassment 

of teachers or employees by students. 

Section 7. Forms of Sexual Harassment 

7.1 Physical 

7.1.1 Malicious touching 

7.1.2 Overt sexual advances 

7.1.3 Gestures and lewd insinuations 

7.2 Verbal, such as, but not limited to, requests or demands for sexual favors and lurid 

remarks 

7.3 Use of objects, pictures or graphics, letters, written notes, texts via cellular phones with 

sexual underpinnings 

7.4 Other forms analogous to the foregoing 

Section 8. It shall be the duty of the Executive Director/Campus Director to:

528 


8.1 prevent or deter the commission of acts of sexual harassment; 

8.2 cause the settlement, prosecution or resolution of acts of sexual harassment in accordance 

with the procedure in these IRR. 

Rule IV. Committee on Decorum and Investigation 

Section 1. A Committee on Decorum and Investigation is hereby created in each 

PSHS System campus under the Office of the Campus Director. 

Section 2. The Committee shall be composed of the following: 

2.1 a Division Chief or Academic Chief as representative of the Administration, who shall act 

as Chairperson 

2.2 a supervisor/area coordinator or unit head 

2.3 a union member, if any 

2.4 a rank and file faculty 

2.5 a rank and file staff 

Section 3. The Chairperson and members shall serve for a term of two (2) years. 

Section 4. The Committee shall: 

4.1 disseminate these rules, regulations and procedures to the different sectors of the PSHS 

community to increase understanding and prevent incidents of sexual harassment. 

4.2 receive and act on reports and complaints of sexual harassment 

4.3 provide support measures to victims of sexual harassment 

4.4 conduct the preliminary investigation of sexual harassment cases 

4.5 conduct the formal investigation of the case, once formal charges are filed by the Campus 

Director. 

4.6 Submit a report of its findings to the Campus Director 

Rule V. Procedure 

A. Informal 

Section 1. Informal procedure refers to PSHS System action, through the CDI of each 

campus, which does not involve formal investigation nor the filing of formal charges. It may 

consist of counseling, providing information, referral to an agency offering professional help 

and advice on options available as well as other means of support.


Section 2. The aggrieved party or anyone who witnesses or discovers the commission 

of any act of sexual harassment shall report the incident/act, in writing, to the CDI or to any 

school official, faculty or staff who shall in turn endorse the said report to the CDI within 

twenty-four (24) hours from the receipt of such report. 

Section 3. The aggrieved party shall be interviewed by the CDI, and where necessary 

referred to the Guidance Center or agency offering professional help for counseling and 

assistance. 

Section 4. The CDI, after consultation with the persons concerned, shall recommend 

measures to be adopted to prevent the repetition of the incident. 

Section 5. Incidents of sexual harassment dealt with in this manner shall be documented 

by the CDI to determine whether patterns of sexual harassment are present. If the situation 

requires resort to formal charges of sexual harassment, the procedure set out in the 

succeeding sections shall be complied with. 

Section 1. Complaint 

B. Formal Investigation of Sexual Harassment Case 

1.1 The Complaint may be filed directly with the Committee on Decorum and Investigation 

(CDI) or with the Campus Director who shall endorse the same within 24 hours from 

receipt thereof to the CDI. 

1.2 The Complaint must be in writing, signed and sworn to by the complainant. It must 

contain the following: 

(1) full name and address of the complainant 

(2) full name, address and position of the respondent 

(3) a specification of the charge/charges 

(4) a brief statement of the relevant and material facts 

(5) evidence, in the form of affidavits of witnesses, in support of the Complaint, if any 

(6) a certification of non-forum shopping 

1.3 In the absence of any one of the aforementioned requirements, the Complaint shall be 

dismissed without prejudice to its re-filing. 

1.4 Where the Complaint is not under oath, the complainant shall be summoned by the 

Committee to swear to the truth of the allegations in the Complaint. 

1.5 A withdrawal of the Complaint at any stage of the proceedings shall not preclude the 

CDI from proceeding with the investigation of the case. 

1.6 The CDI shall notify the respondent in writing of the sexual harassment charge.

530 


Section 2. Counter-Affidavit/Comment 

2.1 If the Complaint is sufficient in form and substance, the CDI will require the respondent 

to file a Counter-Affidavit/Comment, under oath, within three (3) working days from receipt 

of the notice of the sexual harassment charge. 

2.2 The respondent shall furnish a copy of such counter-affidavit/comment to the complainant, 

otherwise the same shall be considered as not filed. 

Section 3. Preliminary Investigation 

3.1 Within five (5) working days from receipt of the counter-affidavit/comments, the CDI 

shall conduct a preliminary investigation of the sexual harassment case by examining all 

documents submitted, ex parte and shall be terminated fifteen (15) working days thereafter. 

3.2 Within five (5) working days from the termination of the preliminary investigation, the CDI 

shall submit its Investigation Report and the complete records of the case to the Campus 

Director. 

Section 4. Formal charge 

4.1 If, after preliminary investigation, a prima facie case exists , a formal charge shall be 

issued by the Campus Director within three (3) working days from receipt of the Investigation 

Report, otherwise, the Complaint is dismissed within the same period. 

4.2 The formal charge shall contain: 

a. the specific charge(s) 

b. a brief statement of material or relevant facts, with certified true copies of the 

documentary evidence, if any 

c. sworn statements covering the testimony of witnesses 

d. a directive to answer the charges in writing under oath within 72 hours from receipt 

thereof 

e. an advice to indicate in the Answer that respondent elects/does not elect a formal 

investigation of the charges 

f. a notice that respondent is entitled to be assisted by counsel 

Section 5. Answer 

5.1 The Answer shall be in writing, signed and sworn to by the respondent, copy furnished 

the complainant, supported by documentary evidence, including affidavits of witnesses. 

5.2 The respondent shall be given not less than 72 hours after receipt of the Complaint to file 

an Answer, unless a different period is given. No other pleading shall be entertained 

during this period.


5.3 The respondent shall indicate in his Answer whether or not he elects a formal investigation. 

5.4 Failure of the respondent to file an Answer or to appear in the investigation shall be 

construed as a waiver to present evidence in his/her behalf. 

Section 6. Preventive Suspension 

6.1 The Board of Trustees (BOT), through the Executive Director, upon the recommendation 

of the CDI and the Campus Director, may order the preventive suspension of the respondent 

during the pendency of the investigation where the evidence of guilt is strong. 

6.2 A Motion for Reconsideration of the Order of Preventive Suspension may be filed with 

the BOT or the said Order may be appealed before the Civil Service Commission within 

fifteen (15) days from the receipt of such Order. 

6.3 If the case against the respondent is not finally decided within ninety days, after the date 

of suspension, he/she shall be automatically reinstated in the service. 

Section 7. Pre-Hearing 

7.1 The CDI may conduct a pre-hearing conference where the parties appear to agree on 


a. stipulation of facts 

b. simplification of issues 

c. identification/marking of evidence 

d. waiver of objections to admissibility of evidence 

e. number and names of witnesses 

f. dates of hearings 

g. other matters that may aid the prompt and just resolution of the case 

7.2 Parties may submit position papers or memoranda. 

7.3 The case may be submitted for resolution without need of further hearing. 

Section 8. Hearing 

8.1 If the case is submitted for further hearing, the CDI shall conduct a hearing not earlier 

than five (5) working days nor later than ten working (10) days from the date of receipt of 

the respondentís Answer or complainantís Reply, if any. 

8.2 The hearing shall be concluded within thirty (30) days from the filing of the charges. 

8.3 The CDI shall submit its report and recommendations to the Campus Director within 

fifteen (15) days from the conclusion of the hearing. 

Section 9. Decision 

9.1 The Campus Director shall render a decision within thirty (30) days from receipt of the 

CDI report.

532 


9.2 Such decision shall be final and executory where a penalty of suspension for not more 

than thirty (30) days or a fine not exceeding thirty (30) days salary is imposed. 

Section 10. Motion for Reconsideration 

9.1 A Motion for Reconsideration (MR) may be filed with the Campus Director within fifteen 

(15) days from receipt of the decision. 

9.2 Only one MR shall be entertained. 

9.3 The MR shall be based on any of the following grounds: 

9.3.1 New evidence is discovered. 

9.3.2 The decision is not supported by the evidence on record. 

9.3.3 Errors of law or irregularities have been committed prejudicial to the interest of the 

movant. 

Section 11. Appeal 

11.1 An appeal may be filed by the respondent with the Board of Trustees, through the 

Executive Director, within fifteen (15) days from the receipt of the decision of the Campus 

Director. 

11.2 Any appeal of the decision shall be filed in accordance with the CSC rules on 

administrative cases. 

Rule VI. Administrative Penalties 

Section 1. Acts of sexual harassment shall be punishable as light, less grave and grave 

offenses, as follows: 

1.1 Light Offenses 

1 st offense ñ Reprimand 

2 nd offense ñ Fine or Suspension not exceeding thirty (30) days 

3 rd offense ñ Dismissal 

1.2 Less Grave Offenses 

1 st offense ñ Fine or Suspension not less than thirty (30) days and not exceeding six (6) 

months 

2 nd offense ñ Dismissal 

1.3 Grave Offenses 

Dismissal 

Section 2. A respondent found guilty of two or more charges shall be imposed the 

highest penalty corresponding to the most serious charge and the other charges shall be 

counted as aggravating circumstances.


Section 3. The Head of Agency who fails to act within fifteen (15) days from receipt of 

any Complaint for Sexual Harassment properly filed against any employee in that office shall 

be charged with Neglect of Duty. 

Rule VII. Guidelines on Proper Decorum at the PSHS System Campuses 

Section 1. School officials, members of the faculty and staff shall treat one another with 

dignity and respect. They shall: 

1.1 avoid telling green jokes in the classroom and in other public places. 

1.2 avoid the use of language with sexual overtones 

Section 2. All employees shall adhere to the agency dress code while in the school 

premises. Students must be in proper and complete uniform at all times. 

Section 3. All employees and students shall observe prudence in all their actions. They 

shall: 

3.1 avoid talking and being left alone with the opposite sex in abandoned, secluded and 

unlighted places. 

3.2 avoid body language or acts that would convey or invite sexual meanings or interpretations 

Section 4. Dormitory rooms should be strictly off-limits to students of the opposite sex. 

Rule VIII. Special Provisions 

Section 1. Independent Civil and/or Criminal Actions 

1.1 After the filing of a formal charge (administrative case), the victim of sexual harassment 

is not precluded from instituting a separate and independent civil action for damages and 

other affirmative relief in any court or tribunal against the respondent. 

1.2 Administrative sanctions shall not be a bar to the filing of a criminal action and prosecution 

in the proper courts for acts of sexual harassment 

Section 2. Penalties 

2.1 Any person who violates the provisions of R.A. 7877, shall upon conviction by the courts, 

be penalized by: 

2.1.1 imprisonment of not less than one (1) month nor more than six (6) months, or 

2.1.2 a fine of not less than ten thousand pesos (PhP10,000.00) nor more than twenty 

thousand pesos (PhP 20,000.00). 

2.1.3 both such fine and imprisonment at the discretion of the court.

534 


Section 3. Civil Liability of the Campus Director 

3.1 The Campus Director shall be held solidarily liable for damages arising from acts of 

sexual harassment in the campus, if formally informed of such acts by the offended party 

and no immediate action is taken thereon. 

Section 4. Prescription 

4.1 Any action arising from violation of R.A. No. 7877 shall prescribe in three (3) years. 

Section 5. Annual Report 

5.1 The Campus Directors shall submit an annual report to the Executive Director on the 

implementation of these rules and regulations together with an evaluation thereof at the 

end of each school year. 

Section 6. Adoption of CSC Resolution No. 01-0940 

6.1 Rules IX,X and XI of CSC Resolution No. 01-0940 are hereby adopted as part of this 

IRR. 

6.2 All other provisions of the aforesaid resolution shall be applied suppletorily to this IRR. 

6.3 In cases where provisions of this IRR overlap with those of the law and CSC Rules, the 

latter shall prevail (i.e., the law, CSC rules, PSHS System disciplinary rules). 

Section 7. Adoption of the PSHS System Code of Conduct shall be applied suppletorily 

to this IRR. 

Section 8. Procedure for Offenders who are Employees of Agents of the School under 

a Contract 

8.1 Offenders who are employees of agents of the school under a Contract shall be proceeded 

against criminally or civilly. 

8.2 The employee complained of shall be placed under preventive suspension by his employer 

upon the filing of the complaint. 

Rule IX ñ Effectivity 

This Implementing Rules and Regulations shall take effect upon its approval and 

publication in the respective school organs of the campuses, certified copies of which shall 

be filed with the UP Law Center. 


APPROVED: 

(SGD.) ESTRELLA F. ALABASTRO 

Secretary, DOST & Chairman, 

PSHS System Board of Trustees


PRESIDENTIAL ANTI-GRAFT COMMISSION 



A Resolution Adopting A New Rule of Procedure 

for the Presidential Anti-Graft Commission (PAGC) 

WHEREAS, Section 16, Article II of the 1987 Constitution provides that ìall persons 

shall have the right to speedy disposition of their cases before all judicial, quasi-judicial or 

administrative bodiesî; 

WHEREAS, Section 17, of Executive Order No. 12 dated April 16, 2001, provides that 

this Commission ìshall promulgate or adopt its rules and regulations for the effective 

implementation of this Executive Orderî; 

WHEREAS, there is a need to adopt a new Rules of Procedure in order to speed up 

the process in the investigation and hearing of cases filed before the Commission in order to 

carry out its mandate. 

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that the 

Presidential Anti-Graft Commission (PAGC) adopt its own rules and regulations pursuant to 

Executive Order No. 12. 

BE IT RESOLVED FURTHER, that three (3) copies of this Resolution and the New 

Rules of Procedure of the PAGC be filed by the executive Director with the University of the 

Philippines Law Center pursuant to the provisions of Sec. 3, Chapter 2, Book VII of the 

Administrative Code of 1987. 


(SGD.) DARIO C. RAMA 

Chairman 

(SGD.) CESAR D. BUENAFLOR (SGD.) TERESITA D. BALTAZAR 



Attested by: 

(SGD.) JOSE SONNY G. MATULA 


--o0o-- 

NEW RULES OF PROCEDURE

536 


RULE I - GENERAL PROVISIONS 

Section 1. Title of the Rules ñ These Rules shall be known and cited as the New Rules 

of Procedure of the Presidential Anti-Graft Commission (PAGC). 

Section 2. Basis and Construction ñ These Rules promulgated pursuant to Section 17 

of Executive Order No. 12, dated April 16, 2001, shall be liberally construed in order to carry 

out its objective of promoting accountability of public officers under Section 1 of Article XI of 

the Constitution. 

The Commission shall use every and all reasonable means to ascertain the facts in 

each case or complaint speedily and objectively and without regard to technicalities of law or 

procedure, in all instances observing due process. 

Section 3. Jurisdiction ñ The Commission shall have the authority to investigate or 

hear administrative cases or complaints filed against personnel in the Executive Department 

of the government, namely: 

(a) Presidential appointees occupying the positions of assistant regional director, 

or an equivalent rank, and higher, otherwise classified as Salary Grade ì26î and higher, of 

the Compensation and Position Classification Act of 1989 (Republic Act No. 6758). 

(b) Also, Presidential appointees who are members of the governing board of 

any instrumentality, regulatory agency, chartered institution and directors or officers appointed 

or nominated by the President to government-owned or controlled corporation or corporations 

where the government has a minority interest or who otherwise represent the interests of the 

government. 

Likewise, the Commission shall have jurisdiction to investigate a non-presidential 

appointee who may have acted in conspiracy or may have been involved with a presidential 

appointee or ranking officer mentioned in this section. 

The Commission shall have no jurisdiction over members of the Armed Forces of the 

Philippines (AFP) and the Philippine National Police (PNP). 

Section 4. Governing Rules ñ Proceedings on verified complaints and on written charges 

filed with the Commission or those referred by disciplining authorities whose investigation is 

taken over by the Commission pursuant to its charter, shall be governed by the Rules on 

Administrative Investigations under Part I hereof. 

Proceedings on anonymous and unsworn complaints, motu propio investigations and 

other reports shall be governed by the Rules on Fact-Finding Inquiries under Part II hereof. 

Section 5. Investigations: Commission En Banc and Panel of Hearing Officers ñ The 

investigation or hearing involving presidential appointees occupying the position of 

Undersecretary or higher shall be conducted by the Commission sitting en banc. The 

investigation or hearing involving presidential appointees occupying lower positions may be 

entrusted to a Commissioner or to a panel of hearing officers duly designated by the Chairman; 

Provided, however, that the reports or recommendations of the Commissioner or panel of 

hearing officers who investigated or heard the administrative case or complaint shall be


deliberated upon and reviewed by the Commission en banc before submitting its report and 

recommendation to the President. 

PART I 

RULES ON ADMINISTRATIVE INVESTIGATIONS 

RULE II - INITIATION AND EVALUATION OF ADMINISTRATIVE 

COMPLAINTS AND CHARGES 

Section 1. Administrative Charge; How Initiated ñ An administrative charge within the 

jurisdiction of the Commission may be initiated and prosecuted by: 

(a) written complaint under oath accompanied by affidavits of witnesses and 

other evidences in support of the charge(s), or 

(b) upon written charge by the disciplining authority. 

Except in the case of anonymous complaint, no complaint shall be given due course 

unless the same is under oath. 

In case where a complaint is filed not under oath, the Commission shall direct the 

complainant to comply with the formal requirements. 

Sec. 2. Preliminary Evaluation ñ The complaint or charge shall be assigned by the 

Chairman to a Commissioner and it shall be immediately referred by the Executive Director 

to the Director of the Investigation Office, for preliminary evaluation and recommendation to 

the assigned Commissioner. 

The docket number of complaints or charges referred to the Investigation Office, shall, 

thereafter, bear and be identified as an administrative proceeding by the prefix ìPAGC 

ADMî. 

Sec. 3. Recommendation for Dismissal of the Complaint Where Prima Facie Case 

or Jurisdiction is not Established ñ If the subject matter of the case or the person of the 

respondent to be investigated is not within the jurisdiction of the Commission, the 

Commissioner, assigned shall submit, for adoption by the Commission, an Order dismissing 

the case for lack of jurisdiction, Thereafter, the Commissioner shall advise the President in 

writing of such dismissal. 

And if, in his opinion, no prima facie case has been established, the Commissioner 

assigned shall likewise submit for adoption by the Commission on a Memorandum 

recommending the dismissal of the case. Such recommendation shall be submitted to the 

Office of the President for approval. 

Section 4. Recommendation for Preventive Suspension ñ In proper cases, during the 

pendency of its investigation on the administrative case against the respondent, the 

Commission may recommend to the President his preventive suspension for such periods as 

may be allowed by law.

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Where the administrative investigation against the respondent under preventive 

suspension is not completed within the period of suspension and the delay in the disposition 

of the case is due to the fault, negligence or request of the respondent, the Commission may 

recommend to the President the extension of the suspension for a period equivalent to the 

delay. 

RULE III - Formal Complaint 

Section 1. How Respondent Charged ñ Where a prima facie case is determined to 

have been established, the respondent shall be required, through an ORDER, to file his or 

her counter-affidavit/verified answer (not a Motion to Dismiss or Motion for Bill of Particulars) 

to the charges against him or her, furnishing him or her with copies of the complaint, the 

sworn statements and other documents submitted by the complainant. 

Respondent is given an inextendible period of ten (10) days from receipt of the Order to 

file his Counter-Affidavit/verified Answer (not a Motion to Dismiss or Motion for Bill of 

Particulars), together with affidavits of his or her witnesses and other documents in his or her 

defense and proof of service on the complainant or his/her counsel. 

Any motion to dismiss or for a bill of particulars that may be filed shall be expunged 

from the records, and the filing thereof shall not suspend the proceedings nor the period for 

the filing of the respondentís Counter Affidavit/verified Answer. 

The filing or submission of reply-affidavits and/or rejoinders shall not be required or 

allowed except where new issues of fact or questions of law which are material and substantial 

in nature are raised or invoked in the counter-affidavit or subsequent pleadings and there 

exists a need for said issues or questions to be controverted or rebutted, clarified or explained 

to enable the Commission to arrive at a fair and judicious resolution of the case. 

If allowed or required by the Commission, the period for the submission of reply affidavits 

or rejoinders shall not exceed five (5) days. 

Section 2. Failure to File Response ñ The respondentís failure to file his Counter- 

Affidavit/verified Answer within the ten (10) day period given him or her shall be considered 

a waiver of his or her right to file the same and to present evidence in his or her behalf, and 

the Commissioner assigned shall recommend the appropriate action to the Commission, on 

the basis of the complaint and documents on record. 

Section 3. Action After Respondentís Response ñ If, upon evaluation of the documents 

submitted by both parties, it should appear either that the charge or charges have been 

satisfactorily traversed by the respondent in his Counter-Affidavit/verified Answer, or that the 

Counter-Affidavit/verified Answer does not tender a genuine issue, the Commissioner assigned 

shall forthwith, or after a clarificatory hearing to ascertain the authenticity and/or significance 

of the relevant documents, submit for adoption by the Commission the appropriate 

recommendation to the President. 

The Commissioner assigned may, at his sole discretion, set a hearing to propound 

clarificatory questions to the parties or their witnesses if he or she believes that there are 

matters which need to be inquired into personally by him or her. In said hearing, the parties 

shall be afforded the opportunity to be present but without the right to examine or cross-


examine. If they so desire, they may submit written questions to the Commissioner assigned 

who may propound such questions to the parties or witnesses concerned. Thereafter, the 

parties be required, to file with the Commission, within an inextendible period of five (5) 

days, and serve on the adverse party his verified Position Paper. 

Section 4. Summary Resolution After Preliminary Conference ñ Should it be determined 

prior to the first hearing date, that the issues can be resolved without need for setting the 

case for clarificatory questioning, the Commissioner assigned shall forthwith, submit, for 

adoption by this Commission, the appropriate recommendation to the President. 

Section 5. Calendar and Postponements ñ (a) Postponements shall not be allowed 

except in meritorious cases substantiated under oath and in no instance shall each party be 

granted more than one postponement of five (5) days nor shall a postponement cancel more 

than one (1) scheduled hearing. 

Section 6. Request for Subpoena ñ All requests for the issuance of subpoenas for 

witnesses previously named shall be made three (3) days before the scheduled hearing, 

Requests for the issuance of subpoenas for other witnesses shall be made at least five (5) 

days before the date of hearing at which they are supposed to appear. 

RULE IV - SUPPLETORY RULES 

Section 1. Suppletory Application of the Rules of Court ñ In administrative proceedings 

before the Commission, these Rules of Procedure promulgated by the Commission shall be 

primarily applied. 

The Commission shall not be bound by the strict technical rules of procedure and 

evidence contained in the Rules of Court but may adopt, in the absence of any applicable 

rule herein, such modes of proceedings consistent with the requirements of fair play and 

due process and conducive to the just, speedy and inexpensive disposition of cases. 

Where no alternative mode of procedure is so adopted, the Rules of Court may be 

applied in a suppletory character in instances not covered by these rules unless inconsistent 

with the spirit and purpose thereof. 

PART II 

RULES ON FACT-FINDING INQUIRIES 

RULE V - EVALUATION OF ANONYMOUS AND UNSWORN COMPLAINTS 

AND OTHER REPORTS AND MOTU PROPIO INVESTIGATION 

Section 1. Evaluation of Complaints, etc ñ Anonymous and unsworn complaints, and 

similar reports or request for motu-propio investigation shall, after notation by the Chairman 

of the Commission, be referred by the Executive Director to the head of the Fact-Finding 

Office for a preliminary evaluation of the verifiability, significance and magnitude of the 

transactions and amounts involved. 

The docket number of complaints or charges referred to the Fact-Finding Office shall, 

thereafter, bear and be identified as a fact-finding inquiry by the prefix ìPAGC FFI-ì

540 


Section 2. Anonymous Complaint Against Presidential Appointee ñ An anonymous 

complaint against a presidential appointee in the Executive Department shall not be given 

due course unless there appears on its face or the supporting documents attached to the 

anonymous complaint a probable cause to engender a belief that the allegations may be 

true. 

RULE VI - FORMAL FACT-FINDING INQUIRY 

Section 1. When Formal Inquiry Initiated ñ (a) If, upon review of the Evaluation Report, 

the Commissioner assigned believes that the events or transactions reported are verifiable 

and further inquiry into the complaint or report may uncover graft or corruption or may 

disclose serious deficiencies in the recording, implementation, monitoring and/or control 

procedures in the government unit or government-owned or controlled corporation involved, 

for which the Commission may recommend to the President measures to eradicate the 

opportunities and climate favorable to the commission of graft and corruption in the unit or 

corporation, he or she shall submit, for the approval of the Commission, an Order so stating 

and directing the docketing of the complaint or report for Formal Inquiry by the Commission. 

Otherwise, she shall submit for the approval by the Commission, an Order terminating further 

proceedings on the complaint or report. 

(b) In the Formal Inquiry, the Commissioner assigned, assisted by the Chief of 

the Fact-Finding Office, shall receive, on invitation or on subpoena, such documents and 

testimonies of witnesses as may be relevant and material to the inquiry, and shall call and 

secure the assistance of any government unit as may be necessary. A public officer identified 

in an anonymous or unverified complaint or report as a participant in a questioned transaction, 

whose testimony may be material to the fact-finding inquiry, may be invited, if he so wishes, 

to give his comments, which need not be verified. 

Section 2. Courses of Action Where Administrative Offense Uncovered ñ (a) If in the 

course of the Fact-Finding Inquiry, evidence is uncovered tending to prove the commission 

of an administrative offense by a public officer or employee, the Commission shall proceed, 

alternatively, as follows: 

(1) If the case is not within its jurisdiction, the Commissioner assigned shall 

submit, for adoption by the Commission, a Memorandum advising the President of the motu 

propio dismissal thereof and the transmittal of the documents and other evidence to the 

proper disciplining authority with its preliminary findings and recommendations; 

(2) If the case is within its jurisdiction, the Commission shall refer the documents 

to the Director of the Investigation Office for further evaluation, who shall, if he finds the 

existence of a prima facie case, file a charge or a sworn complaint in the name of the 

Investigation Office as nominal complainant. The charge or complaint shall be entered in the 

records of the Receiving Section under a new docket number which shall bear and be 

identified as an administrative case by the prefix ìPAGC ADMî. 

(b) If a complaint or charge against the public officer or employee is filed with 

the Commission pursuant to the provisions of the immediately preceding subsection (a)(2) 

the case shall thereafter proceed and be governed by the Rules on Administrative Investigation 

and henceforth all evidence relating to the commission of the offense shall be included from 

the Fact-Finding Inquiry and presented in the administrative proceedings.


PART III 

COMMON PROVISIONS 

RULE VII - ASSIGNMENT, CONSOLIDATION OF CASES 

AND DESIGNATION OF HEARING OFFICERS 

Section 1. Assignment of Investigation/Fact-Finding Inquiry ñ (a) The investigation/ 

fact-finding inquiry of complaints, charges, request for motu proprio investigation or reports 

bearing odd docket numbers shall be assigned to the senior Commissioner and those bearing 

even docket numbers to the other. However, in the interest of distributing work load and for 

other justifiable reasons, the Chairman may assign to himself or herself and assume, 

jurisdiction over any case, or assign the same to either of the two (2) Commissioners, or 

order the same to be heard by the Commission en banc, or assign same to a panel of 

hearing officers. 

The Chairman, or the Commissioner assigned, or the head of the panel of hearing 

officers, shall issue all interlocutory orders that may be required in the course of an 

administrative investigation. 

Section 2. Designation of Panel of Hearing Officers; Powers ñ The Chairman, in the 

interest of the expeditious completion of any investigation or inquiry may constitute panels of 

hearing officers from among the Commissionís lawyers to conduct hearings on cases as well 

as to submit the corresponding reports and recommendations thereon, at the instance of the 

Commissioners concerned. Each panel of hearing officers, through its head designated by 

the Chairman, shall have the power to administer oaths and affirmations, received testimonies 

and documents submitted in the course of the hearing, mark exhibits, grant continuances, 

rule on motions, objections and other questions of procedure, and to issue all interlocutory 

orders which may be issued under the Rules by the Commissioner assigned, and to 

recommend to the latter in proper cases the presentation, for adoption by the Commission, 

of appropriate recommendations and reports to the President. 

In addition, the panel of hearing officers, through its designated head, shall have the 

authority to issue subpoenas and to rule on the admissibility of evidence. 

Section 3. Consolidation of Cases ñ where there are two or more investigations/ 

inquiries pending before different Commissioners or panels of hearing officers, involving 

the same parties, or the same or related issues, the latter ones shall, whenever practicable 

be consolidated with the first to avoid unnecessary inconvenience and delay and, after such 

consolidation, shall be disposed of by the Commissioner or head of the panel of hearing 

officers to whom the first investigation/inquiry was assigned. 

In case of any objection to the consolidation, the same shall be resolved by the Chairman 

of the Commission. 

Section 4. Scope of and Period for Preliminary Evaluation ñ (a) The preliminary 

evaluation of a complaint, charge or report shall include the examination of the records and 

documents submitted as well as of other relevant documents including those available in 

government offices and the validation and verification thereof by oath or certification.

542 


On application by the Director of the Investigation Office or the head of the Fact- 

Finding Office, the Chairman or the Commissioner assigned may issue subpoena duces 

tecum for the production of documents or materials needed in the course of the preliminary 

evaluation. 

(b) The preliminary evaluation shall be completed, and the Evaluation Report submitted 

to the Commissioner assigned, within five (5) days from receipt of the records by the Director 

of the Fact-Finding Office unless an extension is granted by the Chairman. 

Section 5. Ascertaining Facts in Each Case ñ The Commission shall use every and all 

reasonable means to ascertain the facts in each case or complaint speedily and objectively 

and without regard to technicalities of law or procedure, in all instances observing due 

process. 

Section 6. Powers Incidental to Investigation ñ The Commission shall have the power 

to administer oaths and issue subpoenas ad testificandum and duces tecum. The Commission 

shall likewise have the power to call upon and secure the assistance of any office, committee, 

commission, bureau, agency, department or instrumentality in the Executive Branch, including 

government-owned or controlled corporations. 

Section 7. Enforcement of Subpoena ñ Upon failure to comply with a subpoena issued 

by the Commission or by its authority without adequate cause, the Commission en banc, on 

motion or motu propio, may undertake any or all of the following measures: 

(a) the filing of a charge of indirect contempt of court pursuant to the provisions 

of Book VII, Chapter 3, Section 13 in relation to Chapter 1, Section 2(1), Book VII of the 

Administrative Code; 

(b) the filing of a complaint for violation of Article 231 of the Revised Penal 

Code; and 

(c) the submission to the President of a recommendation, after formal charge 

and hearing, for the suspension or dismissal from the service, in case the non-complying 

witness is a government personnel. 

Section 8. Resignation/Retirement of Respondent ñ The resignation or retirement of 

the public officer under investigation shall not divest the Commission of jurisdiction to continue 

the investigation or hearing and submit its recommendation to the President as to the 

imposition of accessory penalties or such other action to be taken. 

Section 9. Disclosures ñ The Commission shall not disclose or make public any record 

or information in connection with any investigation or hearing when such disclosure would 

deprive the respondent of his right to a fair and impartial adjudication. All disclosures of the 

Commission relating to an administrative case or complaint shall be balanced, fair, and 

accurate. 

PART IV 

MISCELLANEOUS PROVISIONS


RULE VIII - RECORD OF PROCEEDINGS, REPORTS AND 

CONFIDENTIALITY OF RECOMMENDATIONS 

Section 1. Record of Proceedings ñ The proceedings of the Administrative Investigation 

and Fact-Finding Inquiry of the Commission are not required to be recorded by stenographer. 

In lieu of a transcript of stenographic notes, the record of the hearings shall consist of the 

written summary thereof made by the Commission, the Commissioner assigned or the panel 

of hearing officers and incorporated in an Order issued after each hearing. The said summary 

shall include an abstract of the substance of the testimony of witnesses, an enumeration of 

the documents offered in evidence and the marking thereof, the significant rulings handed 

down, and other matters which the Commission, the Commissioner assigned, or the panel of 

hearing officers may consider important and significant. The proceedings may be taperecorded 

by the parties. 

Section 2. Submission of Report and Recommendations ñ After completing its 

investigation or hearing, the Commission en banc shall submit its report and recommendations 

to the President. The report and recommendations shall state, among others, the factual 

findings and legal conclusions, as well as the penalty recommended to be imposed or such 

other action that may be taken. 

Section 3. Referral to Other Government Units ñ Whenever the Commission deems it 

warranted and necessary, it may refer for appropriate action any case to the Office of the 

Ombudsman, or any other office, committee, commission, bureau, agency, department, 

instrumentality or branch of the government, including government-owned or controlled 

corporations. 

Section 4. Measures to Prevent and Minimize Graft and Corruption ñ The Commission 

may conduct studies, on its own or in cooperation with other government agencies or nongovernment 

organizations, on new measures to prevent and minimize the opportunities for 

graft and corruption at all levels of the bureaucracy. 

RULE IX - PUBLICATION AND EFFECTIVITY 

Section 1. Filing in UP Law Center; Effectivity ñ These Rules shall be published by the 

filing of three (3) certified copies thereof in the UP Law Center and shall be effective and 

shall govern all proceedings before the Commission upon the expiry of fifteen (15) days from 

the date of the receipt of such copy by the said Center. 

Adopted: 13 March 2002 

(SGD.) DARIO C. RAMA 

Chairman 

(SGD.) CESAR D. BUENAFLOR (SGD.) TERESITA D. BALTAZAR 


ATTESTED BY: 

(SGD.) JOSE SONNY G. MATULA 

Executive Director

544 


SECURITIES AND EXCHANGE COMMISSION 


SEC Memorandum Circular No. 16 

Deadline for Filing Requests for Reconsideration 

In view of the current global financial crisis, the Commission, in lieu of an amnesty, has 

been granting requests for reduction or waiver of penalties imposed on public companies, 

brokers and dealers pre-need companies and the corporations for failure to file on time 

periodic and other reports that are required under the rules and regulations being implemented 

by the Commission. 

However, the Commission in its meeting of December 13, 2001, resolved that corporations 

which have not yet availed of said policy shall have up to March 31, 2002 within which to file 

similar requests. The same shall cover only assessments made by the Commission as of 

December 29, 2001. 

This Circular shall take effect fifteen (15) days following its publication in a newspaper 



(SGD.) LILIA R. BAUTISTA 

Chairperson 

SUGAR REGULATORY ADMINISTRATION 


General Administrative Order No. 01, s. 2001-2002 

Increase in Fees and Charges Pursuant 

to Executive Order No. 197 

Pursuant to Executive Order No. 197 dated January 13, 2000 of the Office of the 

President directing all Departments, Bureaus, Commissions, Agencies, Offices and 

Instrumentalities of the National Government, including Government-Owned or Controlled 

Corporations, to increase their rates of fees and charges by not less than 20 percent, and 

under and by virtue of the powers vested in the Sugar Regulatory Administration, it is hereby 

ordered that:


SECTION 1. The following Fees and Charges are hereby increased and the new rates 

shall be imposed and collected: 

1. Registration/Renewal/Fee 

a. Sugar/Molasses Traders P10,000.00 per application 

2. Clearance Fee 

a. Export of Sugar P 20.00 per Metric Ton 

b. Export of Molasses P 2.00 per Metric Ton 

c. Imported Refined Sugar P 11.90 per LKG 

d. Imported Raw Sugar P 11.00 per LKG 

e. Imported Molasses P 360.00 per Metric Ton 

3. Swapping/Exchange/Surcharge Fee 

a. Regular Swapping P 1.00 per LKG 

b. Advance Swapping/Replenishment P 2.00 per LKG 

c. Switching Fee P 1.00 per LKG 

4. Monitoring/Service Fee 

a. From Raw to Refined/Washed/Blanco P 2.00 per LKG 

5. Milling Permit P 0.40 per LKG 

6. Shipping Permit P 0.40 per LKG 

SECTION 2. All other fees and charges currently being charged and collected and not 

covered by this Order shall continue to be collected. 

SECTION 3. This Order shall take effect fifteen (15) days after publication. 


(SGD.) JAMES C. LEDESMA 

Administrator 

Approved: 


Secretary, Department of Agriculture

546 


TECHNICAL EDUCATION AND SKILLS DEVELOPMENT 

AUTHORITY 


Adopted: 14 Sept. 2001 

Manual of Policies and Guidelines on the Establishment 

and Operation of Public and Private TVET Institutions* 



(SGD.) MA. ADORINDA DE JESUS-FORRO 



Secretary of Labor and Employment 

Chairperson, TESDA Board 

VIDEOGRAM REGULATORY BOARD 


Memorandum Circular No. 2001 - 001 

Clarification of Memorandum Circular No. 2000-001 

Pursuant to the implementing powers vested in the undersigned under Section 4 of 

Presidential Decree No. 1987, otherwise known as An Act Creating the Videogram Regulatory 

Board, the License Fee of Thirty Five Thousand Philippine Pesos (P35,000.00) imposed on 

DUPLICATOR shall be based on the number of VCD Injection Line in possession. Therefore, 

an applicant shall be charged the said License Fee for Duplicators, for each VCD Injection 

Line in its inventory/asset. 

All provisions contrary to the above stipulation shall be deemed amended, modified 

and/or repealed. 

This memorandum shall take effect immediately upon signing, and shall be applied 

prospectively. 

Adopted: 15 March 2001



(SGD.) BGEN. MANUEL B. MARIANO, AFP (Ret.) 

Chairman/Chief Executive Officer 

--o0o-- 


Reiteration of Memorandum Circular No. 05-89 & 96-001 

Exhibitors shall cover the following establishments engaged in the showing of 

cinematographic art, performance, or event in videograms or any technical variation thereof 

in public places for commercial purposes or in private places for monetary or promotional 

considerations: 

1. Restaurants; 7. Ships; 

2. Pubs; 8. Motels; 

3. Karaoke Bars; 9. Hotels; 

4. KTVs; 10. Establishment operating coin-operated 

5. Buses; karaoke machines; 

6. Airplanes 11. Other similar establishments. 

All establishments mentioned hereinabove are required to register the same with the 

Videogram Regulatory Board located at the 2nd Floor, CSP Building, 815 Quezon Avenue, 

Quezon City, on or before 31 May 2001. Non-registration may result in the imposition of 

administrative and/or criminal sanctions. 

For inquiries please call telephone nos. 374-1393 and 374-0237, or personally visit our 

office in the above address. 

Adopted: 18 April 2001 




--o0o-- 


Videogram Titles 

Pursuant to Board Resolution No. 01-07-05 which was passed by the VRB Board of 

Directors during its regular meeting held on July 24, 2001, this Resolution is hereby 

implemented.

548 


I. Effective immediately, VRB Holograms issued by the agency prior to 02 June 1999 

shall not be validly used on videogram titles issued with classification and commercial permit 

by the BOARD from 01 January 2001. 

II. Violation of this circular shall have administrative sanctions: 

(a) First Offense - Fine of P10,000 + P100 for each videogram 

(b) Second Offense - Fine of P20,000 + 150 for each videogram and 30 day suspension 

of license 

(c) Third Offense - Fine of P30,000 + P200 for each videogram and 60 day suspension 

of license 

(d) Fourth Offense - Fine of P50,000 + 250 for each videogram and cancellation of 

license 

No administrative fine that may be imposed shall exceed P100,000 

III. Any videogram found not complying with this circular shall be deemed illegal and 

unlicensed. 

This circular shall take effect 15 days upon its publication in a newspaper of general 

circulation and copy furnished the U.P. Law Center. 

Adopted: 




--o0o-- 


Schedule of Licensing Fees 

Pursuant to Board Resolution No. 01-11-10 which was passed by the VRB Board of 

Directors during its regular meeting held on November 09, 2001, the following schedule of 

licensing fees to be imposed on cable TV operators are hereby implemented. 

VRB SCHEDULE OF LICENSING FEES 

NCR & 1 st Class Cities P 5,000.00 

2 nd & 3 rd Class Cities 3,000.00 

1 st & 2 nd Class Municipalities 2,500.00 

3 rd , 4 th & 5 th Class Municipalities 2,250.00


This circular shall take effect 15 days upon its publication in a newspaper of general 

circulation and copy furnished the University of the Philippines Law Center. 





--o0o-- 


Videogram in VCD Format 

Please be advised of the following Resolution No. 01-11-13 approved by the Videogram 

Regulatory Board during its regular meeting of November 2001 at 3rd Floor CSP Bldg., 815 

Quezon Avenue, Quezon City. 

Resolved, as it is hereby resolved, that the Board hereby imposes as additional 

requirements the submission of a copy of the reviewed and classified videogram in VCD 

format ready for commercial disposition in the Philippine market for verification and reference 

purposes. 

This memorandum shall take effect immediately. 





--o0o-- 


Exportation of Legal Copies of VRB Approved Videogram 

Titles by Licensed Distributors Thereof 

In reference to the Memorandum Circular No. 99-001 dated June 09, 1999, the following 

shall be the provisional guidelines for the exportation of legal copies of VRB reviewed, 

classified and approved videogram title by the licensed distributors thereof, to wit: 

(1) The title or titles and the quantity of copies per title shall be properly indicated; 

(2) The exporter should be the licensed distributor for such title(s) reflected in the 

records of the Board;

550 


(3) The exportation shall be charged a corresponding Clearance Fee of P300.00 per 

shipment. 

All other videogram titles, pending review, classification and approval by the Board or 

not yet applied videogram review and classification, are excluded from this coverage. The 

latter shall be segregated and processed in accordance with Memorandum Circular No. 

2000-001. 

This circular shall take effect immediately and shall be applied until such time as the 

Board has fully rationalized in a resolution the fees and charges being imposed on clearances 

on exported videograms. 



(SGD.) ATTY. LUALHATI R. BUENAFE, CESO II 

Chairperson and Chief Executive Officer 

--o0o-- 


Cost of the VRB Hologram Sticker 

Please be advised of the following Board Resolution No. 01-11-11 as approved by the 

Directors of the Videogram Regulatory Board during its regular meeting held on the 28th of 

November 2001 at the 3rd Floor CSP Building, 815 Quezon Avenue, Quezon City. 

ìRESOLVED, as it is hereby resolved, that in the light of the present economic situation, 

the Board hereby reduces the cost of the VRB hologram sticker from P 5.70 to P3.50. 

All the existing hologram stock are to be sold at the aforementioned lowered cost. 

This Resolution shall take effect on December 01, 2001 until revoked or superceded by 

the Board.î 




Chairperson and Chief Executive Officer 

--o0o-- 

Termination of Memorandum Order No. 2001-001


Pursuant to Board Resolution No. 01-11-15 dated November 28, 2001 which was passed 

by the VRB Board of Directors during its regular meeting, it was: 

ìRESOLVED, as it is hereby resolved, that Memorandum Order No. 2001-001 

dated 21 August 2001, known as The Guidelines in the Registration and Licensing 

of Videogram Peddlers is hereby revoked and terminated.î 

All videogram peddlers who were issued temporary license which expired a month after 

it issuance are hereby advised to secure new license as RETAILER and should comply with 

the existing requirements regarding licensing of retailers. 



Chairman and Chief Executive Officer

552 

National Administrative Register Volume 13/1

Volume 13 Number 1 - University of the Philippines College of Law

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