Clarification on company courier vehicles and LTFRB franchise

The memorandum reiterates a franchise-related requirement tied to Section 13(B) of the Public Service Act.
Section 13(B) requires that a utility for which a Certificate of Public Convenience is issued be for purposes of public service.
The memorandum treats public service as including every person, now or later, who owns, operates, manages, or controls in the Philippines for hire or compensation a common carrier.
Section 13(B) defines “public service” as common carrier operation using a motor vehicle for freight or passenger or both, with or without a fixed route and regardless of classification.

Company vehicles registered in a company’s name and used exclusively for the company’s business operations are not considered public service vehicles.
Company vehicles used exclusively by the company for its business operations should not be required to secure or acquire a franchise from the LTFRB.
The memorandum frames the rule for delivery vans and trucks that are registered under companies and operated solely for the companies’ own business purposes.
The memorandum characterizes apprehensions for lack of LTFRB franchise against such exclusively-used company vehicles as requiring correction through clarification.

LTO deputized agents are addressing delivery vans and trucks registered to companies without LTFRB franchises.
The memorandum instructs strict compliance with the clarified status of exclusively company-operated vehicles.
The memorandum reiterates that the issuance of a Certificate of Public Convenience is premised on the utility’s being used for public service under Section 13(B).
The memorandum is expressly issued to resolve confusion arising from prior citation, tied to a prior memorandum of the LTO Assistant Secretary dated May 4, 2007.

Vehicles qualify for franchise treatment when they operate as part of public service, meaning operation for hire or compensation as a common carrier under Section 13(B).
Vehicles do not require LTFRB franchise when they are company vehicles registered in the company’s name and operated exclusively for the company’s business operations.
The memorandum links the franchise requirement to whether the operation is for public service as defined in Section 13(B).
The memorandum therefore distinguishes between common-carrier-type operations for compensation and internal/exclusive company operations.