Title
AFAB rules for accrediting FAB area service providers
Law
Afab Memorandum
Decision Date
Apr 1, 2014
A Philippine Jurisprudence case discusses a law that aims to ensure transparency and accountability in business activities at the Freeport Area of Bataan, requiring service providers to undergo an accreditation process or face potential fines and penalties, with implementation starting on April 1, 2014.

Q&A (AFAB MEMORANDUM)

The main objective is to ensure transparency and accountability in business activities between locators and non-locators by ensuring that registered enterprises acquire legitimate services from accredited companies.

Service Providers include customs brokers, freight forwarders, couriers, truckers, haulers, waste management services, scrap buyers, manpower agencies, security agencies, contractors, and insurance agencies engaged in business activities within the Freeport Area of Bataan and authorized by the AFAB.

All FAB Service Providers in categories such as Customs Brokerage, Freight Forwarding, Courier Services, Trucking/Hauling, Waste Management, Scrap Buying, Security Agency, Manpower Agency, Insurance Agency, Contractor, and Banks are required to file for accreditation.

Yes. Service contractors involved in machinery and equipment maintenance who visit occasionally, banks with internal arrangements with FAB Enterprises, and insurance agencies that do not transact or have business offices in the Freeport Area of Bataan are exempted provided their entry is endorsed by the client's company.

Accreditation requests must be filed at the FAB Enterprise Department-Registration Division, Ground Floor, AFAB Administration Building, Freeport Area of Bataan, after completing the necessary documents.

Late renewal of accreditation incurs a fine of P1,125.00 per quarter; non-posting of accreditation permit incurs P450.00 per violation.

The first violation entails a fine of P18,000.00 and advising the entity to apply for accreditation. The second violation results in blacklisting from doing business within the Freeport Area of Bataan.

The first violation results in a fine of P22,500.00 for the hiring company and P18,000.00 for the employed entity. The second violation causes cancellation of the Certificate of Registration (COR).

These rules and guidelines took effect on April 1, 2014.


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