Question & AnswerQ&A (NTC MEMORANDUM CIRCULAR NO. 08-08-2004)
The primary purpose is to enable the National Telecommunications Commission (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.
A Mobile Phone Dealer (MPD) is a person or entity primarily engaged in the purchase, sale, lease, and/or retail of mobile phones including parts and accessories thereof.
No, no person shall engage in the business of a Mobile Phone Dealer without first securing the necessary permit from the Commission.
An MPD must register with the Commission all available mobile phone units in their stock and/or possession by submitting the list of its International Mobile Equipment Identity (IMEI) codes monthly. They must also submit a list of all subscriber identification module (SIM) numbers in their stock.
The operation may be subject to closure, imposition of fines (PHP 5,000), and suspension or revocation of permits. The establishment may be closed until the required permit is secured.
Applicants must pay a Filing Fee of PHP 180.00, a Permit Fee of PHP 1,200.00 per year, and an Inspection Fee of PHP 720.00 per year.
Fines include PHP 5,000 per unit/violation for illegal purchase, sale, lease, or retail of mobile phones from illegal sources or without NTC type-approval labels; PHP 50,000 per unit for illegal importation; and PHP 5,000 and closure for operating without a valid permit.
NTC technical staff conduct inspections. If non-conformances are found, they are noted and communicated to the applicant, who has 30 days to correct them and schedule re-inspection.
Required documents include: a certified true copy of SEC or DTI registration and business permit, a valid dealership agreement with an accredited distributor/supplier, list of stocks of spare parts and accessories covering at least six months warranty, and proof of paid-up capitalization of at least PHP100,000.
Yes, the NTC may suspend, cancel, or revoke permits for violations of the Circular or other applicable rules. It may do so upon complaints or reports, issuing a Show Cause order for the dealer to explain within 15 days, and may issue a Cease and Desist order pending final determination to protect public interest.