Truck-for-Hire Service CPC Requirement

Ltfrb Memorandum Circular No. 2004-043
All owners and operators of private vehicles classified as trucks or aluminum vans, except tricycles, must secure a Certificate of Public Convenience from the LTFRB to operate as a truck-for-hire service, with a 60-day compliance period before enforcement begins.

Policy, purpose, and governing power

  • The LTFRB exercises its policy-making powers to issue a Certificate of Public Convenience (CPC) or permit authorizing operation of public land transportation services using motor vehicles.
  • The directive is intended to promote and develop the public land transport sector.
  • The directive is intended to maintain and foster fair competition in the trucking transport industry.

Coverage: truck-for-hire CPC requirement

  • Owners/operators of private vehicles classified as “Truck, Aluminum Van or called by other name/s or has other configuration” must secure a CPC to operate a Truck-for-Hire Service.
  • The requirement covers such vehicles registered with the LTO (Land Transportation Office).
  • The requirement does not apply to tricycles registered with the LTO.
  • Vehicles covered include those used for hauling purposes, when registered with the LTO and classified as truck/aluminum van/other comparable configuration.

Exemption for exclusive use by owner

  • Vehicles operated for the exclusive use and in furtherance of the owners’ own business may be exempted from the Circular, as determined solely by LTFRB.
  • To obtain exemption, the owner/operator must file a Petition/Application for Exemption.
  • The Petition/Application for Exemption must attach the following documents:
    • Certificates of Registration and Official Receipts of the units sought to be exempted.
    • Certificate of Incorporation or Cooperation duly issued by the Securities and Exchange Commission or Cooperative Development Authority, as the case may be.
    • Business Name duly issued by the Department of Trade and Industry for sole proprietorship.
    • Business Permit/Mayor’s Permit issued by the local government unit where the applicant’s principal business is located.
    • Financial Statement for the last two fiscal years duly received by the Bureau of Internal Revenue, if the applicant is a corporation or cooperative.
    • Income Tax Return.
    • SSS Enrolment/Coverage of their Employees.

Filing deadline and transition period

  • Owners/operators are granted sixty (60) days from the effectivity of the Circular to file the Petition/Application for Exemption.
  • After the 60-day period, enforcement begins as specified in the Circular.

Enforcement and apprehension rules

  • All traffic enforcement units are ordered to apprehend the driver/s of the covered vehicles effective 15 February 2005.
  • Apprehension is required except for drivers who can show proof of the existence of their CPC or Order of Exemption.
  • Enforcement applies to drivers of the covered vehicles used under circumstances described by the Circular (including the truck/aluminum van/other configuration classification, registered with the LTO, with the tricycle carve-out).

Supersession and consistency

  • LTFRB Memorandum Circular No. 2004-043 supersedes any and all issuances inconsistent with it.

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