Title
Policy on Firearms Manufacture and Licensing
Law
Fed Pnp Circular No. 10
Decision Date
Feb 14, 2008
The FED PNP Circular No. 10 establishes streamlined procedures for the issuance and renewal of licenses to manufacture firearms, ammunition, and related components, while enforcing strict regulations on importation, exportation, and operational oversight to enhance control and compliance in the firearms industry.
firearms
ammunition
manufacture

Legal basis and related issuances

  • The circular is anchored on Presidential Decree 1866 (June 29, 1983) as amended by Republic Act No. 8294 (July 6, 1996), which codifies laws on illegal/unlawful possession, manufacture, dealing in, acquisition of explosives or instruments used in manufacture of firearms, ammunition, or explosives, and imposes stiffer penalties.
  • It recognizes Executive Order No. 256 (December 21, 1995), revising fees and charges on firearms, ammunition, spare parts, accessories, components, explosives and related items.
  • It expressly references Section 878 of the Revised Administrative Code, covering unlawful manufacture, dealing in, acquisition, disposition, or possession of firearms or ammunition (and instruments used or intended to be used in manufacture).
  • It reiterates policies on licensing and export through cross-references including PNP Circular No. 03-2006 (March 08, 2006) on export of defense/military items and on commercial firearms, ammunition, and explosives.
  • It cites Memorandum Circular 99-009 (March 16, 1999) on a policy on firearms and ammunition dealership.
  • It cites Memorandum Circular No. 47 (November 07, 1986) prescribing a uniform procedure on disposition of firearms, parts, ammunition, or manufacturing instruments and explosives imported from abroad (with exceptions for certain imports).
  • It cites Administrative Order No. 118 (May 24, 2005) delegating authority to approve applications for licenses to manufacture or deal in firearms and related items to the Secretary of the Interior and Local Government.
  • It recognizes Memorandum Circular on possession of high powered firearms (referenced without further operational details in the circular).

Purpose and policy objectives

  • The circular reduces the volume and processing time of requests for new applications and renewals of licenses to manufacture firearms, spare parts, and accessories, ammunition, and related matters.
  • The circular reduces paperwork requiring endorsement by Chief, PNP to the Secretary of the Department of the Interior and Local Government as the final approving authority for license to manufacture under the delegated framework referenced in the circular.
  • It prescribes procedures for issuance of:
    • new and renewal licenses to manufacture firearms, spare parts and accessories, ammunition and related items; and
    • Authority to Export.
  • It provides provisions for supervision, control, and monitoring of any person engaged in the business of manufacturing firearms and related items.

Key definitions and license categories

  • “Person” includes any individual, corporation, company, association, firm-partnership, society, or joint stock company.
  • “Manufacturer” means any person engaged in business of manufacturing firearms or ammunition and other similar items for purposes of sale or distribution.
  • “License to Manufacture” authorizes manufacture and assembly of:
    • firearms, ammunition,
    • air gun,
    • airsoft rifle/pistol,
    • spare parts and accessories,
    • ammunition components,
    • rifle scope, and
    • bullet proof vests and load and reload ammunitions.
  • “Spare Parts” are integral parts of a firearm replaceable as needed for operational upgrading and physical enhancement.
  • “Firearm” includes rifles, muskets, carbines, shotguns, revolvers, pistols, and all other deadly weapons from which a bullet/ball/shot/other missile may be discharged by means of gunpowder or other explosives; it also includes air rifles and air pistols not classified as toys under firearms classifications.
  • “Ammunition” refers to loaded shells for rifles, muskets, carbines, shotguns, revolvers, pistols and other firearms from which a bullet/ball/shot/other missile may be fired by means of gun powder or explosives.
  • “Air gun” is a gun that fires pellets by compressed air.
  • “Airsoft Rifle/Pistol” is a special type of airgun using plastic or rubber pellets as ammunition.
  • “Authority to Import” is an official document authorizing importation and sales of firearms, ammunition, spare parts, accessories, raw materials, etc.
  • “Authority to Export” is an official document authorizing exportation of firearms ammunition, spare parts, accessories, raw materials, etc.
  • “High Powered Firearms” are firearms with bore bigger than .38 for pistols and revolvers, including .357, .40, .44, .45, .50, and .22 Centerfire Magnum, and any caliber pistol with firing characteristics of full automatic burst and three round burst; rifles and shotguns with bore bigger than .22 and heavier than 12 gauge, respectively, are also classified as high powered.
  • The circular recognizes these types of Manufacturers’ Licenses to Operate (LTO):
    • License to Manufacture Firearms, Ammunition and Air Munition Products for use of AFP/PNP and other law enforcement agencies only.
    • License to Manufacture Mortar Fuzes and Smoke Grenade for sale to AFP/PNP and other law enforcement agencies only.
    • License to Manufacture Commercial Firearms and Ammunition.
    • License to Manufacture (Load/Reload) Ammunition.
    • License to Manufacture Riflescopes.
    • License to Manufacture Airguns and Airsofts Rifles/Pistols.
    • License to Manufacture Bullet Proof Vests/Vestments (Level I to III for commercial purposes; Level IV above for AFP/PNP use only).
    • License to Manufacture Firearm Spare Parts and Accessories.
    • License to Manufacture Bomb Suits and Blankets.

Scope, coverage, and licensing validity rules

  • The circular applies to all License to Manufacture for new application or renewal for the manufacture of firearms, spare parts, accessories, ammunition, and related items, including load/reload ammunition and items such as rifle scopes and bullet proof vests.
  • Every License to Manufacture is valid for five (5) years from date of issuance, subject to the validity of business registration.
  • License renewal must be filed at Headquarters FED, CSG, Camp Crame, Quezon City ninety (90) days before expiration of the License to Operate, regardless of the place of business.
  • Manufacturers’ operations are territorial: licensed manufacturers may manufacture only in a place stated in the approved license.
  • When transferring to a new place, the licensee must make a subsequent amendment of address in the approved License to Manufacture.
  • Reloading machines used in the manufacturing process and in loading/reloading ammunition must be marked with serial number and registered with FED.
  • Frame and barrel must be assigned and stamped with serial number in consonance with Section 1 of Executive Order No. 256, covering the “two (2) major firearms parts.”

Licensing procedures and application requirements

  • New and renewal licensing procedures require a basic letter addressed to the Chief, PNP (thru Channels).
  • All license applications proceed through inspection, comment, and recommendation by the Police Provincial Office (PPO) or City Director.
  • If the proposed manufacturing plant is located in Metropolitan Manila, the application is submitted to the Chief, FED, HPNP, Camp Crame, QC for processing pursuant to Sec 883 & 884 of the Revised Administrative Code.
  • Each application must be accompanied by the type-specific and form requirements below, in addition to an annual inspection by FED-CSQ.

New application (requirements)

  • A new application must include a basic letter requesting issuance of a License to Manufacture for:
    • firearms,
    • ammo,
    • major FA spare parts, and
    • ammo components.
  • The basic letter must state:
    • a location plan showing distance from the nearest Police Headquarters (in meters);
    • the name of the Manager; and
    • a certification/affidavit from the corporate Treasurer or bank statement showing paid-up capital stock of P500.000.00 as proof of capitalization.
  • The applicant must attach an application form duly accomplished.
  • The applicant must submit a Detailed Location Plan and a detailed plan of the vault used to store finished products before deposit with FED.
  • The applicant must attach copy of Business Registration of the firm with Securities and Exchange Commission and/or Department of Trade and Industry.
  • The applicant must attach copies of Articles of Inc. and By-Laws for a corporation.
  • The applicant must submit original clearances of the Manager from the following: Chief of Police, Mayor, Prosecutor, Court, plus DI clearance and NBI clearance.
  • All papers are submitted to the PPO or City Director for inspection, comment, and recommendation; for Metropolitan Manila, the submission is to Chief, FED, HPNP, Camp Crame, QC.

Renewal application (requirements)

  • A renewal application must include a basic letter requesting issuance of a License to Manufacture for the covered items.
  • The basic letter must state:
    • a location plan showing distance from nearest Police Headquarters (in meters); and
    • the name of the Manager.
  • The renewal application must include an application form duly accomplished and a Detailed Location Plan.
  • The renewal application must include a detailed plan of the vault to store finished products before deposit with FED.
  • The renewal application must include a Certificate of Non-pending case from the Bureau of Working Condition, Department of Labor and Employment (DOLE).
  • The renewal application must include a copy of Business Registration with SEC and/or DTI.
  • The renewal application must include copies of Articles of Inc. and By-Laws for corporations.
  • The renewal application must include clearances of the Manager from the respective local officials (Mayor, Court, Chief of Police), plus DI clearance and NBI clearance.
  • The renewal application must include a copy of expired License to Operate.
  • The renewal application must include a Transaction Report.
  • All papers are submitted to the PPO or City Director for inspection, comment, and recommendation; for Metropolitan Manila, submission is to Chief, FED, HPNP, Camp Crame, QC for processing pursuant to Sec 883 & 884 of the Revised Administrative Code.

Mandatory inspection report documentation

  • All inspection report must be attached with photographs (with proper captions) during actual ocular inspection by authorized authorities in proper uniform.
  • Photographs must show the exterior view of the manufacturing plant/factory including the signage.
  • Photographs must show the machines or equipment used in the manufacturing process.
  • Photographs must show the safety vault (interior and exterior view including the locking device) where manufactured items are stored, and the required fire fighting equipment.

Additional licensing and operational requirements

  • Licensed manufacturers must submit monthly reports to FED, CSG at the end of each month on:
    • production report of manufactured firearms;
    • production report of firearm parts;
    • production report of ammunition showing quantities of primers, brass shells, heads/wads, etc., and the amount of powder used; and
    • sales made during the period plus inventory of products and raw materials on stock.
  • All manufactured firearms, ammunition, spare parts, bullet vests and rifle scopes must be inspected by FED, CSG prior to disposal to legitimate firearm dealers or indentors (as applicable).
  • A prototype firearm must be submitted to the FED Firearm Classification Board for approval of manufacturing prior to mass production and introduction in the market.
  • New applicants (both corporations and single proprietorship firms) must have paid-up capital stock of five hundred thousand pesos (P500,000.00) and attach a treasurer’s certification/affidavit and bank statement as proof of capitalization.
  • Manufacturers under Republic Act No. 7459 (Inventors and Invention Incentives Act of the Philippines) are exempt from the required license fee, but not from the surety bond requirement.
  • Licensed manufacturers may not use or dispose of/sell firearm parts, reloading machines, or reloading components other than for the intended purpose stated in the approved Import Authority.
  • Licensed manufacturers may not enter into subcontracting agreements with any individual or company that has no License to Manufacture or Repair issued by FED-CSG.
  • Licensed manufacturers must post a surety bond in an amount depending on the number of firearms and other related items to be manufactured, to be approved by the Chief, PNP.
  • Any transfer of rights such as outright sale, lease, or delegation of management and/or operation of the factory must be subjected to prior approval of the Chief, Philippine National Police.
  • Factories must be subjected to inspection by representatives of the Chief, PNP as often as necessary.

Importation controls and limits

  • A licensed manufacturer may import firearms parts and ammo components to be used in the manufacture of firearms and ammunition.
  • Imports must be limited to parts and components authorized to be manufactured as reflected in the approved License to Operate.
  • Upon arrival, imported firearm parts, ammunition components, spare parts, accessories, raw materials, etc. must be:
    • transferred directly to the manufacturing plant after payment of taxes due on imported articles with the Bureau of Customs; and
    • placed under inspection, inventory, and recording escorted by an FED-CSG representative.

Exportation and Authority to Export conditions

  • A licensed manufacturer of commercial and military firearms, ammunition, spare parts, accessories, etc. may export upon request and approval by the Chief, PNP to countries with whom the Philippines maintains diplomatic relations.
  • Export Authority for sample, demonstration, test and evaluation may be issued at the level of Director, CSG, subject to limits:
    • firearms not exceeding five (5) per type; and
    • ammunition not exceeding ten thousand (10,000) rounds per firearm.
  • Export requests must be accompanied by:
    • a Letter of Intent; and
    • an End-User’s Certificate of the foreign buyer/importer; and
    • specific information including quantity and nomenclature of items, purpose, and the name and address of the foreign buyer/importer.
  • Export of commercial firearms, ammunition, spare parts, ammo components, and defense/military items is prohibited when export would have an adverse effect on Philippine foreign relations with any foreign government.
  • Export of defense/military items must be processed in accordance with Memorandum Circular 03-2006.
  • AFP and PNP requirements for exported defense/military items must have priority over export of the same and such items must not be re-exported to any third country.
  • The exporter must submit a report of foreign sales under the approved export application to the Chief, FED.
  • Manufactured firearms due for export must undergo inspection by FED, CSG representatives at the manufacturing plant prior to packaging.
  • Locally produced firearms may be sold commercially only through licensed gun dealers licensed indentors, or exported abroad upon approval of the export request.
  • Firearms locally manufactured for use in trade exhibits abroad must be returned to the Philippines after the show.
  • Other export concerns not covered in this section must follow PNP Circular No. 03-2006.

Prohibited acts, sanctions, and compliance consequences

  • Any violation of the circular’s conditions constitutes a sufficient cause for revocation of the company’s license to manufacture.
  • The circular imposes administrative sanctions of suspension or cancellation of a license depending on the gravity and nature of the offense/penalties for prohibited acts, including:
    • selling ammunition to unauthorized persons, entities, security agencies, etc.;
    • failure to maintain basic manufacturer requirements such as vault and fire fighting equipment;
    • failure to submit monthly sales report on time;
    • selling firearms intended for demonstration/test/evaluation purposes;
    • submission of spurious documents in applications for licenses;
    • other similar offenses.
  • The Inspectorate Section, Operations Branch of FED, CSG conducts and determines penalties for violations of the prohibited acts.
  • The Chief, FED recommends penalties to the C, PNP for approval.
  • The Chief, PNP may impose additional conditions from time to time to enforce rules and regulations governing manufacture of firearms and ammunition.

Enforcement, supplementary regulations, and repeal

  • The manufacturing process must comply with existing laws and regulations.
  • Movement and storage of manufactured firearms and ammunition must be under the direction of the Firearms and Explosives Division (FED), Civil Security Group.
  • The Chief, Firearms and Explosives Division may formulate supplementary regulations on matters not covered by the circular.
  • All procedures, rules, and renunciations that are not in conformity with the circular are rescinded, amended, or modified accordingly.
  • The circular is effective immediately upon adoption on 14 Feb. 2008.

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