Ban on CPC Transfer Within 1 Year

The LTFRB sets a policy to minimize the “trafficking” of Certificates of Public Convenience (CPCs).
The policy governs the early period after issuance of a CPC.
The policy is implemented by a time-bound prohibition on the transfer and alienation of CPCs.

The circular prohibits any sale, transfer, assignment, or alienation of a CPC issued to operate a transport service.
The prohibition applies within one (1) year from the date of issuance of the CPC.
No CPC may be transferred or alienated during the one-year period.
The rule is framed as a blanket restriction, subject only to the specific exceptions stated in the circular.

The rule applies to a CPC to operate transport service issued by the Board.
The regulated acts include sale, transfer, assignment, or alienation “in any way.”
The one-year restriction runs from the date of issuance of the CPC.
The prohibition covers both transfer of the CPC itself and alienation generally within the one-year period.

The prohibition does not apply when the original CPC holder, if an individual, dies and the heir/heirs step into his shoes under the law on succession and continue the transportation business by deciding to do so.
The prohibition does not apply when the original CPC holder sells, leases, or assigns the CPC and the units being operated under the certificate to a duly registered corporation authorized to engage in transportation business in which the CPC holder is the majority stockholder.
The prohibition does not apply when the original CPC holder sells, leases, or assigns the CPC and the units being operated under the certificate to a duly registered partnership authorized to engage in transportation business in which he owns more than one-half of all the combined holdings of his other partners in the partnership.
The exceptions require compliance with the stated ownership/control conditions and the authority of the transferee entity to engage in transportation business.

The circular takes effect immediately.
The circular supersedes any provision of any existing Memorandum Circular or Board rule or regulation that is inconsistent with the circular.