QuestionsQuestions (BIR REVENUE MEMORANDUM CIRCULAR NO. 30-2008)
RA 11592 declares as policy of the State to protect end-consumers, ensure general welfare, and establish standards of conduct for the LPG industry. It aims to reform standards and codes of practice; ensure health, safety, security, environmental, and quality standards; promote consumer awareness; uphold consumers’ right to choose LPG trademarks/trade names; and support technological innovation.
RA 11592 applies to: (1) importing, refining, storing, exporting, refilling, transportation, distribution, and marketing of LPG; (2) importation, manufacture, requalification, repair, exchange/swapping, improvement, and scrappage of LPG pressure vessels (as applicable); and (3) safe operations of the entire LPG industry including LPG facilities and residential/commercial/industrial/automotive uses.
End-consumer is any person who purchases LPG for own consumption, but it excludes bulk consumers. Bulk consumer is a duly authorized person who purchases LPG in large quantities for its own use and requires bulk storage, without engaging in distribution/sale to end-consumers.
LPG cylinder is a refillable transportable pressure vessel with up to 150 liters water capacity designed for LPG storage. LPG bulk storage is a refillable pressure vessel with more than 150 liters water capacity designed for LPG storage.
The DOE is the primary lead agency responsible for implementation and enforcement. It regulates, supervises, and monitors the LPG industry and participants to ensure compliance with health, safety, security, environmental standards, applicable PNS, and accepted codes.
DOE may: (1) issue and enforce compliance with licenses to operate (suspend/revoke after due notice and hearing); (2) issue closure or cease and desist orders after due notice and hearing; (3) investigate motu proprio or upon report; (4) confiscate/recall/seize/impound/prohibit noncompliant LPG seals and noncompliant/defective/unsafe LPG and defective vessels; (5) exercise visitorial powers including inspection of records/premises/equipment/transport; and (6) require reports and create a central database.
DTI, in collaboration with DOE, develops and promulgates PNS for LPG and pressure vessels and related facilities; determines methods of requalification and accredits requalifiers; certifies manufacturers/importers/repairers; sets requalification frequency; inspects and evaluates compliance/fits for sale/distribution; and grants/revokes licenses and certificates pursuant to its powers under RA 4109.
BFP must strictly implement the Fire Code (RA 9514) and its IRR on manufacturing, storage, handling, use, and transportation of LPG, including fire safety devices and issuance of relevant permits/certificates. It also formulates transportation guidelines with DOE and LTO (per Section 37) and participates in IEC activities.
LGUs must assist DOE in identifying areas for impounded items; assist in transporting/hauling/storing/decanting/disposing of confiscated LPG and equipment; suspend or revoke the business permit/license upon DOE’s notice of suspension/revocation and communicate such action to DOE within five days.
A refiller must: fill cylinders under its own or authorized trademark; fill accurately to required net content; test weight and conduct leak test before release; refill only cylinders meeting PNS and bearing required safety/quality marks; refuse to refill cartridges and noncompliant/non-certified/non-allowed cylinders; and periodically check dealer/retail outlet compliance with content requirements and calibration/sealing of measuring devices.
They must: carry its own trademark/trade name; ensure adequate and timely LPG supply and correct cylinder/cartridge weight delivered; use distinguishable color/marking scheme registered with DOE; register its LPG seals and seal manufacturers; maintain/repair vessels through licensed manufacturers/repairers and accredited requalifiers; provide servicing/delivery/technical assistance; and periodically check dealer/retail outlet compliance on content and measuring devices.
Under prohibited acts and participant duties, LPG cylinders must bear authorized LPG seals of the refiller/marketer. Dealers and retail outlets must sell only LPG in cylinders with authorized LPG seals. Possessing or using unauthorized, fake, tampered, broken, or incorrect seals constitutes prohibited conduct.
Cross-filling is refilling LPG cylinders by an authorized person as evidenced by a written contract or similar instrument. It becomes relevant because unauthorized cross-filling is expressly included as an act constituting illegal refilling under Section 40.
Illegal refilling includes: filling with non-LPG products to reach correct net weight; refilling cylinders directly from bulk tank trucks; unauthorized cross-filling; refilling from one LPG cylinder to another; refilling outside duly licensed refilling plants; refilling cylinders with defaced/tampered/illegible markings contrary to mandatory requirements, noncompliant with PNS, due for repair/requalification/scrappage or subject to recall/prohibition, or by auto-LPG dispensing stations; unauthorized loading of LPG bulk storage tanks; and other refilling violating RA 11592 requirements.
DOE issues an appropriate order after due notice, and the owner is afforded an opportunity to be heard. DOE must terminate proceedings and make a final determination within 30 calendar days from issuance of the order. However, if items pose imminent threat or risk explosion, disposal may occur without prior notice, with notice to owner within five calendar days after disposition.
Underfilling occurs when: (a) the refiller sells/transfers/delivers/filled with net quantity less than required at the refilling plant; or (b) the dealer or retail outlet sells/transfers/delivers LPG with net quantity less than required content. A broken, tampered, absent, or removed seal (or vessel without proper seal) is prima facie evidence of underfilling.