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.