Title
AFAB rules for accrediting FAB area service providers
Law
Afab Memorandum
Decision Date
Apr 1, 2014
A Philippine Jurisprudence case discusses a law that aims to ensure transparency and accountability in business activities at the Freeport Area of Bataan, requiring service providers to undergo an accreditation process or face potential fines and penalties, with implementation starting on April 1, 2014.

Scope and Definitions

  • Applies to all service providers seeking accreditation within the FAB.
  • Service Providers include customs brokers, freight forwarders, couriers, truckers, haulers, waste management services, scrap buyers, manpower agencies, security agencies, contractors, insurance agencies authorized and recognized under Philippine laws operating in FAB.
  • FAB Enterprises refer to companies recognized and registered by the AFAB and operating inside the Freeport Area.

Accreditation Filing Requirements

  • Mandatory accreditation for service providers involved in: Customs Brokerage, Freight Forwarding, Courier Services, Trucking/Hauling, Waste Management, Scrap Buying, Security Agency, Manpower Agency, Insurance Agency, Contractors, and Banks.
  • Exemptions:
    • Service contractors visiting FAB occasionally such as machinery and equipment maintenance providers.
    • Banks with internal arrangements with FAB Enterprises.
    • Insurance agencies with no transactions or business offices in FAB, requiring only client endorsement letters for facility entry.

Accreditation Procedures

  • Requests must be filed at the FAB Enterprise Department-Registration Division, located at the Ground Floor, AFAB Administration Building.
  • Accreditation certificates are valid until December 31 of each calendar year.
  • Renewal of accreditation is required annually before expiry.

Penalties and Fines for Non-Compliance

  • Minor Violations:
    • Late renewal of accreditation: Fine of PHP 1,125.00 per quarter.
    • Non-posting/display of Accreditation Permit: PHP 450.00 per violation.
    • Unauthorized placement of tables/chairs/benches: PHP 225.00 per violation.
  • Major Violations:
    • Operating without accreditation:
      • First violation: Fine of PHP 18,000.00 and advised to apply for accreditation.
      • Second violation: Blacklisting from doing business within FAB.
    • Peddling/selling/displaying goods outside designated area:
      • First violation: PHP 1,125.00.
      • Second violation: PHP 2,250.00.
      • Third violation: Suspension until all fines paid.
    • Hiring or employment of non-accredited entities:
      • First violation: PHP 22,500.00 for the entity hiring, PHP 18,000.00 for the entity hired.
      • Second violation: Cancellation of Certificate of Registration (COR).

Effectivity of the Rules

  • The guidelines became effective on April 1, 2014.

Additional Administrative Information

  • Process flowcharts for accreditation and renewal are available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.
  • For further inquiries, the FAB Enterprise Department-Registration Division can be contacted at telephone number 935-4006.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.