Guidelines for DTI Certification of MSEs Buying PNP Chemicals

Presidential Decree No. 1866 codifies offenses on illegal/unlawful possession, manufacture, dealing in, acquisition or disposition of firearms, ammunition or explosives or instruments used in their manufacture.
Republic Act No. 9516 amended P.D. No. 1866 by inserting provisions including Sections 4-C to 4-F that authorize or license persons or entities issued manufacturer’s license, dealer’s license, or purchaser’s license by the PNP Firearms and Explosives Division for certain imports, possession, or sales of regulated chemicals and accessories.
The Implementing Rules and Regulations on Controlled Chemicals of P.D. No. 1866, as amended by R.A. No. 9516, provide more lenient conditions for issuance of license to DTI-certified micro and small enterprises, where such certification serves as proof of legitimacy and enterprise size (Section 4 of said IRR as cited in the Order’s Whereas clauses).
The DTI—through the Bureau of Small and Medium Enterprise Development (BSMED)—is tasked to formulate and monitor development programs for institutions assisting trade and industry, including mechanisms and linkages for marketing, financial, subcontracting services, and development programs for livelihood and MSMEs.

Any person, natural or juridical who satisfies the qualifications and none of the disqualifications under Section 3 (a) of Republic Act No. 9178 (the “Barangay Micro Business Enterprises (BMBEs) Act of 2002”) and Section 3 of Republic Act No. 6977 (the “Magna Carta for Micro, Small and Medium Enterprises (MSMEs)” as amended) is eligible to register for certification of size for micro and small enterprises (Section 1).
Applicants must be engaged in business activities that include production, processing, or manufacturing of products or commodities, including agro-processing, trading, and services related to the purchasing, using, and processing of controlled chemicals, pursuant to P.D. No. 1866, as amended, and its implementing rules and regulations (Section 2(a)).
Applicants are covered only for business involving purchasing/using/processing PNP controlled chemicals consistent with the licensing framework under P.D. No. 1866, as amended (Section 2(a)).
Applicants are not covered for the specific activity of manufacture of another controlled chemical under the qualification standard (Section 2(a)).

Asset size must be inclusive of assets arising from loans but exclusive of land where the business entity’s office, plant and equipment are situated (Section 2(b)).
Micro enterprise qualification requires total assets of not more than Three Million Pesos (P3,000,000.00) (Section 2(b)(a)).
Small enterprise qualification requires total assets of Three Million and One Pesos (P3,000,001.00) to Fifteen Million Pesos (P15,000,000.00) (Section 2(b)(b)).
The asset thresholds apply to the applicant that is engaged in the covered business activity under Section 2(a) and that meets the required registration certifications tied to its business form (Section 2(b) together with Section 4(b)).

Applications for certification of size for micro and small enterprises must be filed with the DTI through the Negosyo Centers (Section 3).
Registration requires submission of a duly accomplished Application Form (Form 1A) (Section 4(a)).
Registration requires proof of legal business registration appropriate to the business type (Section 4(b)), including:
- DTI business name certificate for sole proprietorships;
- SEC registration for corporations or partnerships;
- CDA registration for cooperatives;
- DOLE certificate for workers’ association (Section 4(b)).
Registration requires a Business Permit from the Local Government Unit (Section 4(c)).

The applicant must accomplish and file Form 1A with the complete and appropriate attachments at the DTI Negosyo Center (Section 5(1)).
The Negosyo Center evaluates the application to determine qualification (Section 5(2)).
If the applicant is found eligible and qualified, the DTI Regional or Provincial office having jurisdiction must issue the appropriate certification within fifteen (15) working days from receipt of an application with complete requirements (Section 5(3)).
DTI Regional and Provincial Directors are authorized to administer oaths for the application form (Form 1A) under Section 41, Chapter 10 of the Administrative Code of 1987 (Section 7).

The certification is valid for two (2) years for BMBEs and one (1) year for other MSMEs (Section 6).
The certification is renewable for the same period subject to the requirements in Section 4 (Section 6).
The registration and issuance of certification for micro or small enterprise is free of charge (Section 8).

The Order’s effectivity is governed by publication and the 15-day waiting period after publication in a newspaper of general circulation (Section 9).
If any provision or application of the guidelines is declared unconstitutional or invalid, the remainder of the guidelines and the application of the remaining provisions are not affected (Separability Clause) (Section 10).