QuestionsQuestions (LTO MEMORANDUM)
To clarify the status of motor vehicles used as company couriers versus vehicles requiring an LTFRB franchise, and to guide strict compliance by clarifying when a CPC/franchise is or is not required.
Because the vans and trucks were registered to companies but were being used as couriers without securing the required franchise from the LTFRB, leading to alleged violations.
That the utility/vehicle must be for purposes of public service under Section 13(b) of the Public Service Act, consistent with the definition of “public service.”
It states that “public service” includes any person who owns/operates/manages/controls a common carrier motor vehicle for hire or compensation with general business purposes for freight or passenger or both, with or without fixed route, regardless of classification.
The vehicle must be operated as a common carrier “for hire or compensation” with general business purposes.
When they are registered in the company’s name and are exclusively used for the company’s own business operations (i.e., not operated as a public/common carrier for hire).
They should not be required to secure or acquire a franchise from the LTFRB because they are not considered public service vehicles.
If the vehicle’s operation qualifies as “public service” (common carriage for hire/compensation as defined in the Public Service Act), then a CPC/franchise is required; if not (exclusive internal company use), then franchise is not required.
That the vehicle is used to transport freight/passengers as a service offered to the public or for hire/compensation, rather than solely for the owner-company’s internal business needs.
No. It distinguishes between vehicles used exclusively for the company’s business operations (no franchise needed) and vehicles operated as common carriers for hire/compensation (franchise/CPC needed).
It indicates such vehicles are not public service vehicles and should not be required to secure or acquire an LTFRB franchise, provided the use is exclusively for company operations.
Because that use suggests operation “for hire or compensation” with common carrier characteristics, it would likely be considered “public service,” thus requiring a CPC/franchise from the LTFRB.
Section 13(b) of the Public Service Act, relative to the definition of “public service.”
It suggests the operation is tied to business activity for providing carriage as a service, supporting the classification as public service when the vehicle is used for hire/compensation.
It clarifies that the requirement is not dependent on route structure or vehicle classification; the determining factor is whether it operates as a common carrier for hire/compensation as public service.
For guidance and strict compliance, meaning that agencies should apply the clarified distinction between exclusive company use (no franchise) and public service/common carrier use (franchise/CPC required).
That apprehensions based on an incomplete or incorrect understanding of whether the vehicles are actually being operated as public service/common carriers can cause unnecessary harm and disrupt business operations.