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Pursuant to the provisions of Republic Act No. 4136, otherwise known as the Land Transportation and Traffic Code, as amended and Republic Act No. 6539, known as the Anti-Carnapping Act of 1972, the following rules and regulations on accreditation of rebuilders of trucks are hereby promulgated for the information, guidance and compliance of all concerned.

SECTION 1.       Definition of Terms — The following terms, for purposes of these regulations are defined as follows:

a.         Rebuilder — shall mean any person, firm, partnership or corporation who is engaged in the reconditioning and reassembling of a whole unit of motor vehicle out of imported and/or local components.

b.         Component — shall mean any major part of a motor vehicle namely engine/motor, body or chassis.

c.         Truck — shall mean any motor vehicle whose body configuration is designed to carry heavy loads, general freight, or for special purpose, regardless of gross vehicle weight.

d.         Accreditation Commitee — shall mean the group authorized by the Assistant Secretary of Land Transportation Office (LTO) to evaluate, analyze and recommend approval of application for accreditation.

e.         Accreditation Permit — shall mean the authority granted by the Land Transportation Office (LTO) to be able to transact business relative to the registration of the subject motor vehicle.

f.          Application Fee — shall mean the amount to be collected upon filing of an application for accreditation.

g.         Accreditation Fee — shall mean the amount to be collected upon approval of the application for accreditation.

h.         Renewal Fee shall mean the amount to be collected for the renewal of accreditation.

SECTION 2.       Scope — Any person, firm, partnership or corporation engaged in rebuilding of trucks as defined in Section 1 hereof, who intends to transact business with LTO relative to the registration of the subject motor vehicle, shall file for accreditation with the LTO.

SECTION 3.       Procedure — In applying for accreditation as rebuilder of truck, the following steps shall be followed:

3.1       Application for Initial Accreditation:

a.    The applicant shall submit a duly accomplished application form, together with the documentary requirements hereinafter set forth, to the LTO through the Committee on Accreditation.

Upon filing of the application for accreditation, an application fee shall be collected hereinafter set forth.

In case of the National Capital Region (NCR), application shall be filed at LTO Central Office; East Avenue, Quezon City. While in case of other regions of the country, application shall be filed at the LTO Regional Office where the concerned establishment operates.

b.    The Committee on Accreditation evaluates the application, conducts ocular inspection of the establishment, facilities and equipment and recommends approval or disapproval of application to the LTO Assistant Secretary depending upon the result of evaluation.

c.    The Assistant Secretary, upon finding the application satisfactory, may approve the application and issue an Accreditation Permit.

Upon approval of the application, an accreditation fee shall be collected hereinafter set forth.

3.2       Application for Renewal of Accreditation:

The renewal of accreditation shall be filed, processed and approved at the LTO Regional Office where the concerned establishment operates. However in case of NCR, it shall be done at the LTO Central Office. In order to update the data base of all accredited truck rebuilders in the country, all LTO Regional Offices shall submit an updated record of all renewed accreditation to the Accreditation Committee at LTO Central Office.

a.    The applicant shall present its latest Accreditation Permit and the corresponding official receipt of payment to the LTO Regional Office or LTO Central Office, as the case may be.

b.    In securing the renewed Accreditation Permit, the person/ entity concerned must submit a valid and appropriate Mayor's Permit.

SECTION 4.       Documentary Requirements — The following documents shall be submitted upon filing an application for accreditation/authorization:

a.         Securities and Exchange Commission (SEC) Certificate of Registration and Articles of Incorporation and By-Laws, if corporation or partnership;

b.         Certificate of Business Name Registration from the Department of Trade and Industry (DTI), if single proprietorship;

c.         Valid and appropriate Mayor's Permit;

d.         Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR), in case business has been operating for less than one year;

e.         Latest Income Tax Return (ITR) and Financial Statement

duly certified by a Certified Public Accountant in case business has been operating for one year or more;

f.          Certificate of business' membership with the Social Security System (SSS)

g.         Importation documents for liberalized commodities:

—Packing List;
—Bill of Lading;
—Societe Generalle de Surveillance (SGS) Clean Report of Findings (CRF);
—Fully processed Import Entry Declaration (IED) from the Bureau of Customs (BOC); and
—BOC Certificate of Payment (C/P) and Official Receipt (OR)

h.         BIR Certificate of Clearance on Motor Vehicle together with Authority to Accept Payment.

i.          Additional requirements for regulated commodities:

—DTI Release Certificate (RC); and
—DTI Certificate of Authority to Import (CAI)

SECTION 5.       Reporting System — All rebuilders of trucks are required to submit periodic stock/sales report to the LTO Regional Office or Central Office as the case may be.

SECTION 6.       Fees — The following fees shall be collected:

a.         An application fee of Five Hundred Pesos (P500.00) shall be collected upon filing of application for accreditation.

b.         An accreditation fee of One Thousand Pesos (P1.000.00) shall be collected upon approval of said application.

c.         A renewal fee of Eight Hundred Pesos (P800.00) shall be collected for every renewal of accreditation.

In case of failure to renew before the date of expiration of the Accreditation Permit, a penalty of Four Hundred Pesos (400.00) or fifty percent (50%) of the renewal fee. shall be imposed, in addition to the renewal fee of Eight Hundred Pesos (P800.00).

SECTION 7.       Validity — The Accreditation Permit shall be valid for one (1) year reckoned from the date of approval thereof, renewable annually thereafter. . 8/3 July - September 1997 q

SECTION 8.       Penal Provisions — The rebuilder may be imposed an administrative fine of One Thousand Peso (P1,000.00) for the first offense, two (2) years suspend for the second offense and cancellation of the Accreditation Permit for the third offense for the following violations:

a.         submission of fake or tampered stock/sales report required by law and regulations.

b.         non-compliance with the standard requirements he provided and other laws and its implementing rules regulations.

c.         misrepresentation in the filing of the application of d report. ( In no case shall a sales report be submitted ahead of the stock report).

Any person, firm, partnership or corporation found operating as rebuilder of truck without an Accreditation Permit from the LTO or without having filed an application for accreditation, shall be fined One Thousand Pesos (P1,000.00) and/or denied transaction with the LTO.

SECTION 9.       Repealing Clause — All rules and regulations which are in conflict herewith are hereby modified, amended repealed and/or susperseded.

SECTION 10.    Effectivity — This Administrative Order shall take effect thirty (30) days after publication in a newspaper of general circulation.

Adopted: 8 August 1997