Rationale for the Circular
- Streamlines the application and renewal process for licenses to manufacture firearms and related products.
- Reduces paperwork by eliminating endorsements from the Chief, PNP to the Secretary of DILG, who is the final approving authority.
Purpose of the Policy
- Establishes procedures for issuing new and renewal licenses to manufacture firearms, spare parts, accessories, ammunition, and related items.
- Includes provisions on supervision, control, and monitoring of manufacturers.
- Provides guidelines for issuing Authority to Export.
Definitions of Key Terms
- Person: Individuals or entities such as corporations, companies, partnerships, associations.
- Manufacturer: Anyone engaged in the business of manufacturing firearms, ammunition, or similar items for sale or distribution.
- License to Manufacture: Authorization to manufacture firearms, ammunition, air guns, airsoft guns, spare parts, accessories, etc.
- Spare Parts: Integral replaceable parts of firearms.
- Firearm: Includes all guns that discharge projectiles using explosives; air rifles and pistols not classified as toys are also included.
- Ammunition: Loaded shells for various firearms.
- Air Gun and Airsoft Gun: Guns that fire pellets by compressed air or plastic/rubber pellets.
- Authority to Import/Export: Official permits for importing or exporting firearms and related items.
- High Powered Firearms: Defined by bore/caliber size and firing capabilities.
Application Processing and Requirements
- Licenses are valid for five years, contingent on business registration validity.
- Renewal applications must be filed 90 days before expiration at the proper PNP office.
- New applications require:
- Letter to Chief, PNP including shop/factory location, manager’s name, proof of capitalization (minimum P500,000 paid-up capital).
- Supporting documents such as application form, detailed plans, business registration, clearances (NBI, DL, local officials).
- Submission for inspection and recommendation to Police Provincial Office or Chief, FED for Metro Manila.
- Renewals require similar documents plus certificate of no pending case from DOLE, expired license copy, and transaction report.
- Inspection reports must include photographic evidence of the premises and security measures.
Types of Manufacturer Licenses
- Firearms, ammunition, and air munitions for AFP/PNP use.
- Manufacture of mortar fuzes and smoke grenades for law enforcement.
- Commercial firearms and ammunition manufacture.
- Loading/reloading ammunition.
- Manufacture of riflescopes, airguns, airsoft guns, bulletproof vests (commercial and AFP/PNP levels), firearm spare parts, bomb suits.
Importation of Firearm Parts and Ammo Components
- Licensed manufacturers may import only parts and components authorized under their License to Operate.
- Imported materials must be inspected and inventoried by FED-CSG representatives upon arrival.
Exportation Regulations
- Export allowed only to countries with diplomatic ties to the Philippines upon approval.
- Export Authority for samples limited to five firearms per type and 10,000 ammunition rounds.
- Requests require a Letter of Intent, End-User Certificate, and export details.
- Export must not harm Philippine foreign relations or conflict with AFP/PNP requirements.
- Manufactured firearms for export subject to inspection prior to packaging.
- Exported firearms for trade exhibits must be returned post-event.
Manufacturing and Marking Requirements
- Reloading machines must bear serial numbers and be registered with FED.
- Frames and barrels, as major firearm parts, shall be stamped with serial numbers.
Additional Provisions
- Inspection of firearms, ammunition, accessories, and bulletproof vests before sale or export.
- Prototype firearms require approval from the FED Firearm Classification Board before mass production.
- Minimum capitalization of P500,000 for new applicants required.
- Manufacturers exempt from license fees under the Inventors and Invention Incentives Act, but surety bond still required.
- Manufacturers prohibited from diverting firearm parts or components for unauthorized purposes.
- Subcontracting is prohibited without proper manufacturing or repair license.
- Manufacturing only at licensed locations; changes require license amendment.
- Monthly production and sales reports must be submitted to FED, including detailed inventory and material usage.
- Surety bonds required in amounts approved by Chief, PNP.
- Transfer of management or operation rights requires prior approval of Chief, PNP.
- Factory subject to inspections as deemed necessary.
- Violation of conditions can lead to license revocation.
- Chief, PNP may impose additional conditions as required.
Administrative Sanctions
- Penalties include suspension or cancellation of license for serious offenses such as:
- Unauthorized sale of ammunition.
- Failure to maintain required equipment or submit reports.
- Selling firearms intended only for demonstration.
- Submission of false documents.
- Violations investigated by Inspectorate Section; penalties recommended by Chief, FED to Chief, PNP.
Supplementary Authority and Repeal
- Chief, FED may issue additional regulations.
- Previous inconsistent rules and regulations are rescinded or amended.
Effectivity
- Policy effective immediately upon issuance.