QuestionsQuestions (NTC MEMORANDUM CIRCULAR NO. 08-08-2004)
The Circular is issued pursuant to the Radio Control Law, Act No. 3846 (as amended), Executive Order No. 546, and Republic Act 7925. It also states that it forms part of MC No. 1-04-88 and MC No. 02-01-2001.
An MPD is a person or entity primarily engaged in the purchase, sale, lease and/or retail of mobile phones, including parts and accessories thereof.
It is a permit issued by the NTC authorizing the holder to engage in the purchase, sale, lease and/or retail of mobile phones, including parts and accessories thereof.
No. The Circular expressly provides that no person shall engage in the business of an MPD without first securing the necessary permit from the Commission.
An MPD shall not keep on stock mobile phones that are illegally acquired and/or mobile phones without NTC type-approval/type acceptance labels/stickers.
MPDs must register with the NTC all available mobile phone units in their stock/possession by submitting, on a monthly basis, a list of IMEI codes. They must also submit a list of all available SIM numbers in their stock/possession.
An MPD shall not acquire/purchase/sell/lease/retail mobile phones from any unauthorized or illegal source.
An MPD shall not advertise the purchase, sale, lease and/or retail of mobile phone units/parts/accessories coming from any unauthorized or illegal source.
The MPD must properly identify its business and location by posting conspicuously at the entrance of its premises a signboard at least 50cm x 100cm, indicating the registered business name, type of services, full business address, and the MPD sources.
No. The Circular prohibits an MPD from having in its possession any inventory/stock of mobile phone units/parts/accessories from any unauthorized and illegal permit number.
The Circular provides that a violation includes suspension, cancellation, revocation of permits, closure of the operation/establishment, and fines. Specifically, operating without valid NTC Permit includes closure and a fine of PHP 5,000.00.
Illegal source: PHP 5,000.00 (per unit/violation). Without NTC type-approval/type acceptance labels/stickers: PHP 5,000.00 (per unit/violation).
PHP 50,000.00 per unit.
The application must include: (1) certified true copy of SEC registration and Articles of Incorporation or DTI registration and LGU business permit authorizing the business; (2) copy of valid dealership agreement with an accredited mobile phone distributor/supplier; (3) list of spare parts/accessories sufficient to cover warranty of at least six (6) months or as per the Dealership Agreement; and (4) proof of paid-up capitalization of at least PHP 100,000.00.
Filing fee: PHP 180.00. Permit fee: PHP 1,200.00/year. Inspection fee: PHP 720.00/year.
A permit is valid for one (1) year and renewable upon presentation of continued compliance with the requirements mentioned in the Circular.
NTC technical staff conduct inspection prior to approval/issuance. Non-conformances are noted. The applicant is given a grace period of thirty (30) days to correct the non-conformance and must notify the Commission for the schedule of re-inspection within the same period.