Title
Implementing Rules for RFID Vehicle Tagging
Law
Lto Memorandum Circular No. Acl-2009-1199
Decision Date
Aug 7, 2009
The RFID Project aims to improve motor vehicle registration and renewal by implementing RFID technology for vehicle identification, anti-carnapping, anti-colorum, law enforcement, and compliance monitoring with the Clean Air Act of 1999.
motor vehicle registration
law enforcement
compliance monitoring

Legal basis and implementing framework

  • The Circular is grounded on Republic Act No. 4136, as amended, otherwise known as the Land Transportation and Traffic Code, which authorizes the regulation of registration and re-registration of motor vehicles and the making of arrests for violations of the Code.
  • The RFID Project is part of the LTO/DOTC information technology enhancement under the Build-Own-Operate (BOO) scheme of Republic Act No. 6957, as amended by Republic Act No. 7718, known as the BOT Law.
  • The Circular implements and operationalizes Department Circular No. 2009-06 (dated May 6, 2009, effective July 7, 2009), which approved implementation of the RFID Project.
  • The RFID Project is tied to compliance enhancement with the Clean Air Act of 1999, Republic Act No. 8749, by enabling ascertainment of the actual physical appearance of every motor vehicle during emission testing.

Purpose and RFID Project objectives

  • The RFID Project eases motor vehicle registration and renewal by tagging each motor vehicle with an RFID Tag.
  • The RFID system supports compliance with motor vehicle registration requirements, including road worthiness and emission testing, and supports other LTO concerns including vehicle identification, anti-carnapping, anti-colorum, and law enforcement and traffic adjudication.
  • The RFID system binds RFID tag records to existing motor vehicle information in the LTO database to enable electronic verification and compliance monitoring beyond manual and visual confirmation.
  • The objectives include:
    • maintaining motor vehicle registration process flow without major disruptions,
    • integrating the RFID system without substantial modifications in existing LTO IT systems,
    • deploying RFID Tags onto motor vehicles nationwide,
    • deploying RFID Readers to LTO District and Extension Offices, private emission testing centers, and motor vehicle inspection centers, and
    • integrating RFID Readers in the PETC IT Facility and the MVIS for data verification and compliance monitoring.

Definitions and covered entities

  • The Code refers to Republic Act No. 4136, as amended, the Land Transportation and Traffic Code.
  • LTO refers to the government agency created under and by virtue of the Code.
  • Motor Vehicle refers to a mechanical transportation propelled by non-muscular power using public thoroughfares and required to be registered with LTO under the Code.
  • Motor Vehicle Registration System (MVRS) covers registration transactions including:
    • New Registration;
    • New Registration of Previously Recorded Motor Vehicle;
    • Renewal Registration;
    • Registration of Imported Motor Vehicle;
    • Registration of Chop-Chop Motor Vehicle;
    • Registration of Locally Assembled/Backyard Rebuilt Motor Vehicle by Non-Accredited Manufacturer;
    • Registration of Previously Registered Assembled/Backyard Rebuilt Motor Vehicle by Non-Accredited Manufacturer;
    • Registration of Undocumented Motor Vehicle;
    • Registration of Stolen and Recovered Motor Vehicle;
    • Special Registration of Imported Vehicles;
    • Special Registration of Auctioned Vehicles;
    • Special Registration of Government Vehicles;
    • Special Registration of Recovered Vehicles;
    • Special Registration of Assembled Vehicles;
    • Change classification (all types);
    • Transfer of Ownership (all types);
    • Annotation of Mortgage;
    • Cancellation of Mortgage and other liens or encumbrances;
    • Certification Transactions;
    • and other miscellaneous transactions including: Duplicate Certificate of Registration; Duplicate Official Receipt; Duplicate Plates/Replacement Stickers; Re-stamping of Engine/Chassis Number; Stamping of Component Identification Number; Underbond Motor Vehicles; MV obtained under Sheriff Certificate of Sale; MV obtained under an Extra-Judicial Sale before the Notary Public; MV obtained under Sheriff’s Certificate of Sale pursuant to a Money Judgment; MV purchased from Diplomatic or Tax-Exempt Personnel; Motor Vehicle with Restraint and Levy; and When the Financing Company No Longer Exists and Release Mortgage Contracts is Missing.
  • The Circular defines PETCs as persons accredited and authorized by the Department of Trade and Industry and DOTC/LTO, respectively, to conduct emission tests on motor vehicles.
  • The Circular defines PETC IT Provider and PETC IT Facility to cover IT services and the IT infrastructure needed for interconnection with LTO IT systems and database.

RFID tagging requirement and timelines

  • All motor vehicles required to be registered under the Code must have a duly approved RFID Tag attached or mounted to the duly specified location of its windshield or body as a pre-requisite to registration or re-registration.
  • RFID Tagging rollout for all covered motor vehicles is scheduled to commence on October 1, 2009, based on existing renewal registration schedules, at applicable LTO District and Extension Offices.
  • All new motor vehicles after October 1, 2009 must have an RFID Tag attached prior to registration.
  • No motor vehicle is permitted renewal registration on its renewal registration deadline date without first having been tagged with an RFID Tag after October 1, 2009.
  • Motor vehicle owners/registrants may opt for RFID Tagging after October 1, 2009 but before their actual scheduled renewal registration deadline.
  • RFID Tagging for a previously installed RFID Tag that is damaged or destroyed requires the installation of a new RFID Tag within fifteen (15) days from the date of damage or destruction, subject to the condition that the motor vehicle remains operable and road worthy.

RFID for emission testing and PETC requirements

  • The PETC IT Facility must be enhanced to verify the actual physical presence of a motor vehicle during emission testing.
  • LTO and the LTO IT Project Proponent and/or PETCs and/or PETC IT Providers must ensure development, roll-out, and testing of RFID integration with the PETC IT Facility in time for implementation on January 1, 2010.
  • No PETC or PETC IT Provider is granted authorization or is allowed continuance of authorization if facilities and systems are non-compliant with RFID Project requirements and standards.
  • Beginning January 1, 2010, a PETC shall not conduct a smoke emission test on any motor vehicle without an RFID Tag.
  • Beginning January 1, 2010, motor vehicle owners must first obtain RFID Tag attachment at a duly authorized LTO District Office before proceeding to any authorized PETC for smoke emission testing.
  • Beginning January 1, 2010, after smoke emission testing, PETCs must electronically transmit emission test results to the PETC IT Provider or directly to the PETC IT Facility for authentication and verification.
  • Beginning January 1, 2010, after a successful smoke emission test, the motor vehicle owner may proceed to the nearest LTO District Office for the applicable MVRS transaction.
  • Beginning October 1, 2010, all motor vehicles with RFID Tags may proceed directly to any authorized PETC for smoke emission testing, and PETCs must electronically send test results for authentication and verification.
  • The Circular encourages motor vehicle owners to have their motor vehicles tagged at any LTO District Office prior to their registration schedule for more efficient processing.

RFID tag and reader standards

  • RFID Tags have a single colored background and bear a unique serial number loaded in the LTO IT Project’s IMS.
  • RFID Tags are accountable items and shall not be detached once attached to a motor vehicle; any attempt to remove damages or destroys the RFID Tag.
  • If RFID Tag damage or destruction occurs, the motor vehicle owner must immediately obtain another RFID Tag from LTO as provided in the Circular’s procedures.
  • Except for motorcycles and tricycles, RFID Tags use a front adhesive type; motorcycles and tricycles use a back adhesive type.
  • The RFID Tag includes two portions: (1) Write Once and (2) Read and Write Many.
  • The Write Once portion contains the Unique ID (UID) number only, which cannot be changed during the life of the RFID Tag.
  • The UID is not the serial number of the RFID Tag, is encrypted by the RFID System, and is accessed only via an authorized RFID Reader.
  • For the Read and Write Many portion, information may be saved subject to further review and approval.
  • Authorized personnel using the prescribed RFID Reader may access specific motor vehicle data elements stored/linked through the RFID Tag, including: MV file number, body type, engine number, MV classification, chassis number, franchise, plate number, route, MV type, owner name, color, last registration date, make, alarms (settled and unsettled), series, other necessary data, and year model.
  • An unauthorized RFID Reader cannot access RFID Tag data, and data retrieved/read must be used only for the intended purpose.
  • Fixed RFID Readers are ISO-compliant passive readers mounted on fixed stands and connected through an ethernet interface to a computer application system.
  • Handheld RFID Readers are ISO-compliant, programmable devices with adjustable reading distance; only authorized RFID Readers can read the RFID Tag information.
  • RFID Reader validations and encryptions include Unique ID, RFID Reader Code, username and password, RFID Reader IP Address, and computer IP address, and transmitted data is encrypted with the RFID System holding the key to decrypt.

Modified registration and RFID workflow

  • For motor vehicle registration transactions under MVRS, motor vehicles required to be registered must be installed with an RFID tag prior to release of applicable accountable items such as registration stickers for the current year.
  • The RFID tagging workflow for MVRS transactions begins upon payment of applicable MVRS transaction fees, including the RFID fee as prescribed in DOTC D.C. No. 2009-06, and presentation of the LTO Official Receipt.
  • After authenticating the LTO Official Receipt, the LTO Inspector must check using the RFID System that the motor vehicle physical attributes match LTO IT Project database information; if they do not match, the transaction is reverted to the originating LTO Evaluator for correction and/or reconciliation.
  • When physical attributes match the LTO IT Project database, the LTO Inspector scans an RFID Tag and assigns it to the motor vehicle, then physically attaches it:
    • for all vehicles other than motorcycles/tricycles, to the upper middle area inside of the windshield, with tint removal required to allow placement, and
    • for motorcycles/tricycles, to the upper middle area of its gas tank.
  • The LTO Inspector scans the RFID Tag with an RFID Reader to confirm it was not damaged during installation and to verify assignment, then uploads pertinent information to the RFID System so RFID Tagging is deemed complete.
  • The LTO Releasing Officer releases applicable accountable items only after verifying in the RFID System and/or LTO IT Project system that RFID Tagging was successfully completed.
  • LTO officials have defined roles:
    • The LTO Inspector attaches the RFID Tag and ensures only duly registered motor vehicles are provided RFID Tags.
    • The LTO Evaluator ensures that after RFID Tag attachment, only such motor vehicles are subsequently registered.
    • The LTO Cashier collects the prescribed RFID fee and deposits it to the duly designated government depository bank account.
    • The LTO Custodian/Releasing Officer holds custody of RFID equipment and RFID Tags until issuance to the LTO Inspector.
    • The LTO District Office Chief ensures proper implementation within jurisdiction, including RFID Tagging.
    • The RFID Tagging Assistant assists the LTO Inspector in attaching the RFID Tag to the prescribed location.

RFID tag acquisition without registration due

  • Motor vehicle owners who want an RFID Tag even if their motor vehicle is not yet due for an MVRS transaction may obtain a RFID Tag from any duly authorized LTO District Office.
  • Such owners must bring the motor vehicle for physical inspection and bring the motor vehicle’s LTO Official Receipt (OR) and Certificate of Registration (CR).
  • The OR and CR are submitted to the LTO Evaluator for assessment and verification.
  • Motor vehicles with an existing alarm or apprehension are not permitted to obtain an RFID Tag unless the alarm or apprehension is settled.
  • Motor vehicles found to be delinquent must first update registration prior or simultaneous to obtaining an RFID Tag.
  • After payment of the RFID fee as prescribed in DOTC D.C. No. 2009-06, the procedures for MVRS RFID tagging apply.

Inventory, consequences, and repeal

  • The Project Proponent must maintain an RFID Tag inventory equivalent to ten percent (10%) of the average motor vehicle registration transactions of each LTO District or Extension Office for the immediately preceding three (3) months.
  • A motor vehicle deemed not duly registered under the RFID rules is subject to the provisions of the Code, existing laws, rules, and regulations.
  • All related orders, issuances, or parts thereof inconsistent with the Circular are repealed or amended accordingly.
  • If any provision or any document executed in connection with the Circular is declared invalid, illegal, or unenforceable by a court of competent jurisdiction with finality, the remaining provisions and documents are not impaired.

Implementation compliance and publication

  • The Circular is marked for strict compliance.
  • It is adopted on 07 Aug. 2009.
  • Its effectivity requires both administrative registration with ONAR and publication in two (2) newspapers of general circulation in the Philippines.

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