Purpose and liberal construction
- Section 2 (Construction) directs that these rules be liberally construed to protect and promote public interest.
- Section 2 (Construction) requires that the liberal construction also assist parties in obtaining just, speedy and inexpensive action or remedy.
Key definitions and terms
- A “Branch” is any station or substation directly operated and managed by an authorized private firm for receiving, delivery, and dispatching of mails and parcels within the firm’s authorized scope.
- A “Committee” is the Postal Regulation Committee composed of the Chairman, the Vice-Chairman, and two (2) members, which hears, decides, processes applications, investigates complaints and violations, and adjudicates administrative controversies relating to these services.
- The “Department” or “DOTC” refers to the Department of Transportation and Communications.
- An “Express and/or Messengerial Delivery Service Firm” (“Firm”) includes any natural or juridical person that owns, operates, manages, or controls in the Philippines, for hire or compensation, with general or limited clientele (permanent, occasional or accidental, for general business purposes), any service for the personal delivery to other persons of written messages and any mail matter except telegram.
- A person or employee delivering an article owned by the former is not conducting an express and/or messengerial delivery service within the circular’s context.
- An “Extension Office” is a station used not for acceptance or posting of mails, but only as drop and consolidation points for mails and parcels to be distributed and delivered to specific areas.
- “Jurisdictional Requirements” consist of: acknowledgment receipts of service of the Notice of Hearing and a copy of the application to PEMAP, PPC, and other affected operators; the Affidavit of Publication; and copies of the newspapers publishing the Notice of Hearing.
- “Mail” or “Mail Matters” are matters authorized by the Government to be delivered through the postal service, including letters, parcels, printed materials, and money orders.
- An “Operator” is a person (natural or juridical) granted by DOTC authority to operate private express and/or messenger delivery services.
- An “Oppositor” is a person authorized by law to file and that files a written opposition to an application for authority to operate.
- A “Parcel” is a package whose dimension and weight are specified in the Philippine Postal Corporation (PPC) Weight and Measure, containing goods or transportable property intended for delivery to an addressee whose name and address are conspicuously written on at least one side.
- “PEMAP” refers to the Private Express and Messengerial Association of the Philippines.
- “PEMEDES” refers to Private Express and/or Messenger Delivery Services.
- “Private Express and/or Messengerial Delivery Service” is delivery of written messages and mail matter according to these schedules:
- Ordinary mail: delivered to the addressee within seven (7) working days from receipt by the Firm.
- Special delivery mail: delivered within three (3) working days from receipt by the Firm.
- Rush mail: delivered within twenty four (24) hours from receipt by the Firm.
- The “Secretary” refers to the Secretary of DOTC.
Pleadings and basic filing requirements
- Petitions/applications for authority and complaints against violators must bear the parties’ full names, addresses, and ultimate facts constituting the cause(s of action, stated with particularity and sufficient definiteness.
- All other pleadings must have in the caption the full names of all parties and the case number.
- The petition/application and complaint must be verified.
Authority to operate: who may apply
- An application for authority to operate may be filed by any Filipino citizen, or by a corporation or partnership duly registered with the SEC with at least sixty percent (60%) of its capital stock or shares owned by Filipino citizens.
- For applicants seeking authority to operate in two or more administrative regions, the applicant must have paid-up capital of Five Hundred Thousand (P500,000.00) Pesos.
- For applicants seeking authority to operate in Metro Manila or in one administrative region only, the applicant must have paid-up capital of at least Three Hundred Thousand (P300,000.00) Pesos.
- Operators with existing authority whose paid-up capital is less than P500,000.00 or P300,000.00, as applicable, must increase capital to the appropriate levels within a period of two (2) years from the date of effectivity of the circular.
Application form, deposits, documents, and undertakings
- The application/petition must be verified and must state that:
- the applicant intends to operate and has deposited in the bank the required capital, and will update the deposit by bank certification every ninety (90) days during the hearing of the application;
- the applicant meets the Filipino ownership requirement and its executive and managing officers are citizens of the Philippines;
- the applicant will operate in a definite geographical area described by limits and boundaries, and the area is not yet saturated considering population, volume of mails, and existing operators, and grant will improve mail delivery and serve the public good;
- the applicant undertakes to post a surety bond within thirty (30) days from issuance of the Decision granting authority:
- FIFTY THOUSAND (P50,000.00) PESOS for authority in two or more regions, or
- THIRTY THOUSAND (P30,000.00) PESOS for authority in Metro Manila only or one region;
- the surety bond is in favor of the Department to answer for loss of or damage to mail or parcels while in the operator’s custody;
- the applicant has the financial and technical capacity to operate the service applied for.
- The application must include (where applicable) these documentary requirements:
- SEC Registration, Articles of Incorporation and By-Laws for corporations, or DTI Registration and Original Application of Business Name for single proprietorships; or SEC Registration and Articles of Partnership for partnerships;
- the complete address of management offices and operating stations, and land title(s) if owned or lease/contracts if rented;
- Notarized Letters of Intent of at least five (5) prospective clients; each must be renewed every sixty (60) days from issuance;
- a Feasibility Study including organizational structure, standards for operations and recruitment of personnel (especially messengers), and three (3) years projection of volume of deliveries, income and expenses, and cash flows;
- a notarized and updated deposit statement/certification of the bank where capital is deposited;
- an undertaking under oath not to withdraw the bank deposit during pendency and not to operate prior to grant;
- a written waiver of confidentiality of the bank deposit specifying the account number, or an exemption in writing from the Bank Secrecy Law;
- a list of office equipment, furniture, fixtures, and motor vehicles with actual valuation and current official receipts/registrations for motor vehicles;
- a sketch of office location and office lay-out;
- bio-data of the President/Proprietor and prospective General Manager and/or Operations Manager.
- The application must be paid with the required filing fee before acceptance (see filing fee rules below).
Filing fee, publication, rate-fixing, and stamp-mark
- For an application for a new authority or for renewal/extension, the filing fee is:
- THREE THOUSAND (P3,000.00) PESOS, plus
- FIVE HUNDRED (P500.000) PESOS for every branch,
- payable to the Department’s cashier, and accepted only upon presentation of the official receipt.
- Renewal/extension must be filed on or before the authority’s expiration date to allow continued operation pending approval.
- If renewal/extension is not filed on time, the applicant is treated as a “colorum” operator and is charged ONE THOUSAND (P1,000.00) PESOS as penalty for every month of delay or a portion thereof, with a three (3) months grace period reckoned from expiration.
- Renewal/extension filed after the three (3) months grace period is no longer accepted by the Department.
- After required fees, docketing, and the ocular inspection required under Section 1, Rule 5, the Committee Chairman issues a Notice of Hearing setting initial hearing date, time, and place.
- The applicant must cause the Notice of Hearing to be published once a week for three (3) consecutive weeks in a newspaper of general circulation within thirty (30) days from receipt of the Notice.
- The Notice of Hearing must contain: applicant name, case number, concise statement of authority applied for, and place, date, and time of hearing.
- The applicant must serve copies of the Notice of Hearing, the application, and annexes on PEMAP, PPC, and other affected operators.
- Those intending to oppose must file a verified Opposition through the Committee, and must serve a copy on the applicant at least fifteen (15) days before the scheduled initial hearing.
- The Secretary may fix or adjust rates after due notice and hearing, and operators must file verified rate adjustment applications showing bases and justification.
- The hearing for rate adjustment is opened to the public, with the schedule widely disseminated, and the Committee must ensure affected parties are invited.
- The authorized operator must have a stamp-mark with its name, date of posting/receipt, and classification of mail matter, legibly imprinted on the face or side of all articles accepted for delivery.
Prohibitions on authority and pricing
- A holder of authority must not lease, transfer, sell, or assign the authority and appurtenant rights and privileges to any person or entity, nor merge with another person/entity organized for the same purpose, without approval of the Secretary.
- A holder of authority must not charge delivery rates lower than regulated postal charges imposed on the Philippine Postal Corporation for clients’ mail/parcels.
Application processing, provisional authority, and fees
- Although the applicant bears the burden of proving public necessity and convenience, the Department through the Committee may conduct surveys or studies to determine feasibility and whether approval will be for the good of the public and will improve existing mail delivery service.
- Survey results guide whether proposed areas for new or additional operators will be opened.
- Hearings for applications are conducted by the Committee to receive evidence of applicant and oppositors.
- If, after hearing, the Committee finds the applicant qualified and technically and financially capable, the Secretary (upon finding) issues a provisional authority for six (6) months.
- During the six (6) months provisional period, the operator must set up an office and/or branches according to Department standards, recruit and train staff and messengers, provide facilities/equipment/materials, and formalize agreements with prospective clients.
- The provisional authority holder must submit:
- a quarterly production report within thirty (30) days after the end of the quarter, and
- a semi-annual management report including a list of employees, regular clients, furniture/fixtures/equipment in duplicate one (1) month before expiration of provisional authority.
- Delay in submitting these reports makes the operator liable for Five Hundred (P500.00) Pesos for each month of delay or a portion thereof.
- Within the month prior to expiration, the Committee assesses compliance with all requirements.
- If the Committee finds failure to comply after assessment, the provisional authority is not renewed and expires after six (6) months, with written notification to the operator (copy furnished to PEMAP).
- If the Committee finds compliance after assessment, an original authority for one (1) year may be granted by the Secretary and may be renewed upon application on a graduated scale:
- two (2) years, three (3) years, from four (4) years up to five (5) years,
- and thereafter renewable every five (5) years.
- The authority may be amended, suspended, or cancelled when the public interest requires or whenever the holder violates any order, rule, or regulation prescribed by the Department.
- Upon issuance of provisional authority, the applicant must pay a one-time registration fee of FOUR THOUSAND ONE HUNDRED (P4,100.00) PESOS.
- Operators must pay an annual supervision and regulation fee of THREE THOUSAND (P3,000.00) PESOS plus Five Hundred Pesos for every branch on or before January 31 each year.
- Unpaid supervision and regulation fees incur:
- a penalty equivalent to Twenty Five (25%) Percent of the fee for failure on the due date, and
- a surcharge of One (1%) Percent for every month of delay.
- Renewal/extension of authority is not acted upon unless the operator submits proof of payment of the supervision/regulation fee and the applicable penalties and surcharges.
Messenger’s work license and identification rules
- Every operator must secure from DOTC through the Committee a Messenger’s Work License for every person employed as messenger within sixty (60) days from effectivity of the circular and thereafter.
- Each messenger license is valid for two (2) years and may be renewed for the same period.
- The Committee issues the license only after ascertaining the messenger has no derogatory record and after requiring clearance from:
- the NBI,
- the Prosecutor’s Office, and
- the Regional Trial Court exercising jurisdiction over the firm’s area of operation.
- The operator must provide each messenger with an Identification Card (2" x 4") showing, among others, the license’s serial number and issuance date, a 2 x 2 picture, and the name and signature of the responsible firm officer.
- Messengers must always wear their IDs while on service routes delivering mails/parcels.
- The operator pays a service fee of One Hundred Fifty (P150.00) Pesos for each messenger’s work license application.
- The Committee may cancel/revoke a messenger’s license after due notice and hearing if the messenger is found guilty of grave misconduct or dishonesty in performance of assigned work.
Hearing process and committee powers
- Hearings follow an order of procedure requiring:
- proof of jurisdictional requirements (including service of Notice of Hearing and application to PEMAP/PPC/affected operators, Affidavit of Publication, and newspaper copies),
- applicant evidence supporting the application,
- oppositor evidence supporting the opposition,
- applicant rebuttal evidence (if any),
- operator sur-rebuttal evidence (if any), with hearing officer authority to permit additional evidence for good reasons or in furtherance of justice,
- formal offer of evidence by the parties,
- memoranda within fifteen (15) days from receipt of transcript of last proceedings, extendable only once for another fifteen (15) days at the hearing officer’s discretion.
- The Committee Chairman may issue the Notice of Hearing and subpoenas to complete witnesses’ attendance and require production of books, papers, and records, and may administer oaths.
- Upon a vote of at least two (2) members, the Chairman may sign and issue cease and desist orders and show cause orders.
- Postponement or adjournment may be granted at the Committee or hearing officer’s discretion, but no postponement/adjournment may exceed fifteen (15) days.
- Hearings are conducted in the Office of the Chairman, Postal Regulation Committee, unless the Secretary decides otherwise.
- Testimonies of witnesses are under oath, and minutes are transcribed by a designated stenographer within one (1) week after the hearing.
- The Committee or hearing officer submits to the Secretary within fifteen (15) days after receipt of the transcript:
- a concise statement of the case and facts,
- factual and legal findings,
- conclusions and recommendations,
- and includes a draft Resolution or Decision reflecting the findings and conclusions.
Uncontested applications: no automatic grant
- The authority to operate is granted only upon compliance with law and regulations, proved by substantial evidence presented by the applicant.
- The absence of an oppositor does not entitle an applicant to an automatic grant of authority.
- In uncontested cases, the Committee may receive evidence itself or refer reception to a hearing officer, who submits findings and recommendations to the Committee.
- The Committee may require further reception of evidence at its discretion.
Contested applications, service rates, and complaints
- Proceedings for applications, fixing of postal rates, and complaints against courier services proceed without regard to technicalities, legal forms, and technical rules of evidence.
- Substantial evidence suffices to support an order or decision.
- Applications and complaints are heard and decided by the Committee or its designated hearing officer.
- When exigency requires, the Secretary may designate any DOTC employee who is a lawyer or has sufficient legal training and experience to act as hearing officer.
- The Secretary decides all applications for authority, upon consideration of the Committee’s findings and recommendations passed upon by the Assistant Secretary for Legal and Administrative Affairs and the Undersecretary for Staff Services.
Motions for reconsideration and appeals
- Any party in interest dissatisfied with the Secretary’s decision or order may file a motion for reconsideration within fifteen (15) days from receipt of notice of the decision or order with the Office of the Secretary.
- A motion for reconsideration must be in writing and must specifically state in detail the particular objections.
- Only one (1) motion for reconsideration by each party is entertained unless otherwise allowed by the Committee.
- After an opposition to the motion is filed, the Committee Chairman schedules a hearing and notifies the parties.
- At the hearing, the movant presents competent evidence and/or argues for the motion; the oppositor presents competent evidence and/or argues against the motion, and then the matter is submitted for resolution.
- A one-time extension of up to fifteen (15) days to file a motion for reconsideration may be granted by the Committee on meritorious grounds.
- A party aggrieved by the Secretary’s decision or order may file an appeal to the Court of Appeals within thirty (30) days from receipt.
Complaints: investigation and hearings
- An investigation may be commenced against an operator for:
- violation of postal laws, rules, and regulations,
- infidelity in the handling and treatment of articles accepted for mailing, and
- malpractice.
- The complaint must be a written sworn complaint filed with the Office of the Chairman, Postal Regulation Committee.
- Anonymous complaints are not entertained but may be used by the Committee as bases for fact-finding.
- Upon receipt of the sworn complaint, it is referred to appropriate DOTC personnel for investigation.
- If the Committee finds a prima facie case exists based on investigation results, it orders the operator within five (5) days from receipt of the order to submit a written explanation and evidence supporting the defense.
- If the operator requests a formal hearing, it proceeds in a manner similar to the application hearing procedure rules.
- If formal hearing is not requested, the parties submit position papers and their evidence, and the Committee decides based on submissions and evidence on record.
Stenographic transcripts and stenographer duties
- The designated stenographer must transcribe stenographic notes within one (1) week from the hearing.
- A requesting party is entitled to a copy of the transcript (or a specific part) at the requesting party’s cost.
Rules of court, revocation, and separability
- The Rules of Court apply suppletorily where consistent with these rules and to promote substantial justice and equity.
- Rules and regulations inconsistent with these rules are deemed revoked or modified accordingly.
- These rules take effect fifteen (15) days after publication in a newspaper of national circulation or in the Official Gazette.