Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 2011-008)
The main purpose is to exempt certain car-rental services from the coverage of Memorandum Circular No. 98-027, which requires dump trucks and other private vehicles rented out for a fee to secure franchises from the LTFRB.
Memorandum Circular No. 98-027, issued on September 25, 1998, required dump/cargo trucks or private vehicles rented out for a fee to apply for and secure franchises from the LTFRB or its regional offices to legitimize their operations.
Private vehicles rented out under a long-term lease contract between the lessee and rental company/owner, or vehicles exclusively used and driven by the lessee or his/her authorized representative, are exempted.
The private vehicle must be covered by a long-term lease contract between the lessee and the car rental company or owner.
It means that the vehicle is used solely by the lessee or someone they have authorized to drive it, without being rented out to the public for 'for hire' services.
No, only those meeting the specified conditions are exempt. All other rent-a-car services not falling under the exemptions remain covered by M.C. 98-027.
It took effect fifteen (15) days after its publication in a newspaper of general circulation and after filing three copies with the UP Law Center as required by Presidential Memorandum Circular No. 11 dated October 9, 1992.
Yes, it supersedes all prior issuances inconsistent with its provisions.
It was signed by Atty. Nelson P. Laluces (Chairman), Engr. Samuel Julius B. Garcia, and Atty. Manuel M. Iway (Board Members).
Owners of rent-a-car services not covered by the exemptions must continue to comply with Memorandum Circular No. 98-027, which requires securing a franchise from the LTFRB to operate legally.