Title
Guidelines for DTI Certification of MSEs Buying PNP Chemicals
Law
Department Administrative Order No. 18-01
Decision Date
Apr 3, 2018
The Philippine law provides guidelines for the certification of micro and small enterprises engaged in purchasing PNP controlled chemicals, requiring them to meet certain qualifications and submit necessary documents to the DTI for evaluation and issuance of certification.

Questions (DEPARTMENT ADMINISTRATIVE ORDER NO. 18-01)

The guidelines are anchored on Presidential Decree No. 1866 (as amended by Republic Act No. 9516), particularly RA 9516’s amendments inserting licensing/purchaser-related provisions under Sections 4-C to 4-F, and on the IRR provisions that allow a more lenient condition for DTI-certified MSEs where DTI certification serves as proof of legitimacy and enterprise size.

Any person, natural or juridical, who has the qualifications and none of the disqualifications under Section 3(a) of RA 9178 (Barangay Micro Business Enterprises Act of 2002) and Section 3 of RA 6977 (Magna Carta for Micro, Small and Medium Enterprises), as amended.

Engagement in any business activity or enterprise engaged in the production, processing, manufacturing, trading, or services in relation to purchasing, using, and processing controlled chemicals, except the manufacture of another controlled chemical, pursuant to PD 1866, as amended, and its IRR.

Micro: not more than PHP 3,000,000.00; Small: PHP 3,000,001.00 to PHP 15,000,000.00. These are inclusive of assets arising from loans but exclusive of land where the office/plant/equipment are situated.

No. The asset size is exclusive of the land where the business entity’s office, plant and equipment are situated.

Applications must be filed with the DTI through the Negosyo Centers.

1) Duly accomplished Application Form (Form 1); 2) Certificate of registration as a business entity (DTI certificate for sole proprietorship, SEC registration for corporations/partnerships, CDA for cooperatives, DOLE certificate for workers’ associations); and 3) Business permit from the Local Government Unit.

1) Accomplish and file the application with complete attachments to the DTI Negosyo Center; 2) Negosyo Center evaluates for qualification; 3) DTI Regional/Provincial office issues certification within 15 working days from receipt of application with complete requirements, after finding the applicant eligible.

The DTI Regional or Provincial office must issue the certification within fifteen (15) working days from receipt of the application with complete requirements.

For BMBEs: valid for two (2) years. For other MSMEs: valid for one (1) year. In both cases, it is renewable for the same period subject to the requirements provided under Section 4.

No. Section 8 provides that registration and issuance of certification of micro or small enterprise shall be free of charge.

DTI Regional and Provincial Directors, pursuant to Section 41 of Chapter 10 of the Administrative Code of 1987, are authorized to administer oaths with respect to the application form (Form 1).

After fifteen (15) days from its publication in a newspaper of general circulation.

If any provision is declared unconstitutional or invalid, the remainder of the guidelines (or the application of the remaining provisions) is not affected.

The text emphasizes that, under the IRR of PD 1866 as amended by RA 9516, DTI certification of micro and small enterprises serves as proof of the entity’s legitimacy and enterprise size, and thus supports a more lenient condition for licensing/authorization related to controlled chemicals.

Evaluation is done by the DTI Negosyo Center; final issuance of certification is done by the DTI Regional or Provincial office having jurisdiction over the Negosyo Center’s location.


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