Title
Regulation of Service and Repair Enterprises
Law
Presidential Decree No. 1572
Decision Date
Jun 11, 1978
Presidential Decree No. 1572 empowers the Secretary of Trade to regulate and control service and repair enterprises in the Philippines, establishing a program of accreditation and enforcing ethical standards, with violations resulting in fines, imprisonment, or deportation.

Law Summary

Powers and Functions of the Secretary of Trade

  • Conduct research on current practices and conditions affecting relevant service and repair enterprises.
  • Establish and enforce ethical, moral, and professional standards.
  • Set basic requirements for setting up and operating accredited enterprises.
  • Promote professionalism and consumer protection in the service and repair sector.
  • Investigate violations, issue subpoenas, and impose appropriate penalties.
  • Collect filing and accreditation fees from enterprises and commercial practice fees from technicians, with rates varying by classification.
  • Allocate up to 50% of collected fees for accreditation board maintenance and up to 10% for discretionary use.
  • Create additional accreditation boards as necessary and recommend their dissolution.
  • Establish exempt positions and appoint personnel for effective implementation.
  • Delegate powers to officials when necessary.
  • Issue rules, policies, and programs to enforce the decree.

Establishment of Accreditation Boards

  • Created specific boards to assist the Secretary of Trade:
    • Motor Vehicles, Heavy Equipment, Engineering Works and Engine Service
    • Electronics, Electrical, Airconditioning and Refrigeration Services
    • Office Equipment Services
    • Medical and Dental Services

Composition and Qualifications of Accreditation Boards

  • Each board comprises 9 to 11 members including the Secretary of Trade as Chairman.
  • Members chosen from reputable professional or technical associations and must include a consumer representative.
  • Members must be Filipino citizens, possess good moral character and integrity.
  • Technical/professional members required to have recognized competence in their field.
  • Vice Chairman designated by the Chairman from among members.

Compensation and Tenure of Board Members

  • Chairman and Vice Chairman receive per diem not exceeding PHP 350 and PHP 200 respectively per meeting.
  • Members’ monthly compensation capped at PHP 1,050 (Chairman) and PHP 600 (members).
  • Staggered terms for initial board members: three one-year terms, three two-year terms, remainder three years.
  • Filling vacancies to complete unexpired terms only.

Penalties for Violations

  • Fines ranging from PHP 100 to PHP 5,000; imprisonment from 30 days up to 1 year; or both.
  • In case of corporate violations, responsible directors, partners, or employees are liable.
  • Aliens found guilty are deported after serving sentence.
  • Naturalized Filipino offenders lose citizenship and are deported after sentence.
  • Government officials or employees face additional penalty of perpetual disqualification from public office.

Appropriations and Funding

  • Annual appropriation of PHP 1,000,000 from the National Treasury for implementation.
  • Funds allocated for Accreditation Boards and the Secretary of Trade manages apportionment.
  • Additional appropriations may be granted subject to justification.

Repealing Clause

  • All prior laws, orders, and regulations inconsistent with this decree are repealed or amended, except those under the Professional Regulation Commission.

Effectivity Clause

  • The decree takes effect immediately upon approval.

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