Title
Rules on Mobile Phone Trade Permits
Law
Ntc Memorandum Circular No. 08-08-2004a
Decision Date
Jan 24, 2005
The National Telecommunications Commission issues a circular to regulate the purchase, sale, lease, and retail of mobile phones in the Philippines, requiring permits for Mobile Phone Dealers and imposing penalties for violations.

Questions (NTC MEMORANDUM CIRCULAR NO. 08-08-2004A)

Its primary purpose is to enable the NTC to monitor and effectively regulate the purchase, sale, lease and/or retail of mobile phone units, parts and accessories, in the interest of the public.

MPSD is an accredited entity to import mobile phones (including parts/accessories) and sell/distribute them to dealers. MPD is authorized to purchase mobile phones locally from an accredited supplier/distributor and sell to end users (and may have multiple branches). MPRR is registered to buy from an MPD and engage in limited buy-and-sell/retail to end users for a limited period.

No. Section 3.1 provides that no person shall engage in such business without securing the necessary accreditation/permit/registration certificate from the Commission.

MPD and MPRR shall not keep on stock mobile phones illegally acquired and/or without NTC type-approval/type acceptance labels/stickers.

They must register with the NTC all available mobile phone units in stock/possession by submitting a list of IMEI codes monthly, and also submit a list of all available SIM numbers in their stock/possession.

An MPD shall submit a monthly sales and stock report to the Commission.

They must not acquire, purchase, sell, lease and/or retail mobile phones from any unauthorized or illegal source (and must not advertise transactions involving phones coming from unauthorized/illegal sources).

It must post conspicuously at the entrance a signboard at least 50cm x 100cm showing registered business name, type of services, full address, and the MPD permit number.

It shall not have in its possession any inventory/stock of mobile phone units/parts/accessories from unauthorized and illegal sources.

Section 5.1 states that no one shall do so without a valid MPD/MPRR Registration Certificate issued by the Commission.

Certified SEC registration and Articles of Incorporation or DTI registration and business permit; proof of a valid dealership agreement with an accredited MPSD; list of spare parts/accessories sufficient for at least six (6) months warranty (or per dealership agreement); and proof of paid-up capitalization of at least PHP 100,000.00.

Certified SEC/DTI registration and local business permit; proof of capitalization at least PHP 50,000.00 (e.g., bank CD, treasurer/partners/corporation certification verified by NTC); and a certificate of stall lease agreement for the business activity.

Filing fee PHP 500.00; MPD permit fee PHP 2,500.00/year; MPD branch permit PHP 1,500.00/year/branch; MPRR registration fee PHP 1,500.00/year; MPSD accreditation PHP 2,500.00/year; and inspection fee PHP 1,500.00/year.

Non-payment is a ground for denial, disapproval, suspension, and/or revocation of permits.

Valid for one (1) year and renewable upon proof of continued compliance with the requirements.

NTC technical staff conducts inspection prior to approval to verify minimum requirements. Non-conformances are noted and communicated to officials/applicants, and applicants are given a 30-day grace period to correct deficiencies and notify NTC for re-inspection.

Examples include: PHP 5,000.00 per unit/violation for illegal purchase/sale/lease/retail from illegal sources; PHP 5,000.00 per unit/violation for purchase/sale/lease/retail without NTC type-approval/type acceptance labels/stickers; PHP 5,000.00 per unit for illegal importation; and PHP 5,000.00 (plus closure of establishment) for operating without a valid NTC permit.


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