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(NAR) VOL. 19 NO. 1 / JANUARY - MARCH 2008
[ FED PNP CIRCULAR NO. 9, February 14, 2008 ]
POLICY ON FIREARMS AND AMMUNITION DEALERSHIP/REPAIR
a. Presidential Decree 1866 dated 29 June 1983 as amended by Republic Act Number 8294 dated 06 July 1996 "Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Explosives or Instruments Used in the Manufacture of Firearms, Ammunition or Explosives and Imposing Stiffer Penalties for Certain Violations Thereof, and For relevant Purposes (TAB "A").
b. Executive Order No. 256 dated 21 December 1995 revising E.O. No. 58 By Rationalizing the Fees and Charges on Firearms, Ammunition, Spare parts, Accessories, Components, Explosives, Explosives Ingredients, Pyrotechnic and Devices (TAB "B").
c. Section 878, RAC entitled Unlawful Manufacture. Dealing In, Acquisition. Disposition, or Possession of Firearms, or Ammunition Therefore, or Instrument Used or Intended to be Used in the Manufacture of Firearms and Ammunition (TAB "C").
d. Memorandum Circular Number 03-2006 dated March 08, 2006 entitled Export of defense/Military items. Commercial Firearms. Ammunition and Explosives. (TAB"D”)
e. HPC Circular Number 2 dated 11 September 1990 "Annual Verification of Fire arms (TAB "E").
f. HPC SOP Number 4 dated Nov. 02, 1972 Safe of Firearms to Police Forces & Security Agencies (TAB "F").
g. Memorandum Circular 99-009 dated March 16, 1999 entitled new Policy on Firearms and Ammunition Dealership (TAB "G").
2. Rationale:
This Circular will correct the awkward situation where the main license, to operate of a gun dealer has expired or ceased while its branch license is still valid.
This Circular will reduce the volume of new applications and renewal of Licenses to Operate Dealership, Licenses to Repair and Licenses of Inventor in firearms and ammunition, spare parts and accessories and related matters.
3. Purpose:
This Circular prescribes the procedures in the issuance of the various new licenses and authorities mentioned herein and the general provisions in the control on the sales of firearms, ammunition, spare parts and other related matters. The procedure herein established shall also govern the renewal of the licenses and authorities granted under this Circular.
4. Definition of Terms:
a. License to Deal - License authorizing the purchase, sale and general business in handling firearms and ammunition, spare parts and accessories, airguns, airsofts, reload ing machine and components, and bullet-proof vest.
b. License to Repair - License authorizing the repair of defective firearms to restore its original composition or to enhance or upgrade firearms.
c. Indent License to Deal - License authorizing the importation and sales of firearms, ammunition, spare parts, etc., for the AFP, PNP and other government entities.
d. Authority to Import - Official document authorizing the importation of firearms, ammunition, spare parts, accessories, raw materials, etc.
e. Authority to Export-Official document authorizing the exportation of firearms, ammunition, spare parts, accessories, raw materials, etc.
f. Accessories - is an optional firearm part which may enhance or increase the operational efficiency or accuracy of a firearm.
g. Refurbishment/refurbish - the process by which a licensed gun repair shop or manufacturer restores the original features of a firearm.
h. Major Firearms Parts - Frame, slide and barrel
i. Conversion Kit - is the upper assembly by pistol which is used to change a firearm from one caliber to another (barrel, slide, firing pin spring, extractor and firing pin block).
j. Bodega Transfer - transfer of firearms from one dealer to another inside the FED Bodega.
k. Authority to Display - Official document issued to legitimate dealers authorizing them to display firearms for commercial purposes.
l. Mother License-refers to the main license issued to a particular dealer to operate a primary store.
m. Branch License - refers to the license issued to particular dealer operating in a different address to that of the mother license.
5. Processing of Applications:
a. All Licenses to Operate whether for new applications or renewal shall be valid for a period of five (5) years. Application for renewal thereof shall be filed at Headquarters FED- CSG, Camp Crarne, Quezon City not later than ninety (90) days before expiration of the LTO regardless of the place of business. Upon expiration of the LTO, the dealer, indentor, or gun repair shop should automatically stop its operation. However, in the event that an application for renewal is duly filed prior to its expiration, the licensee may request for a certification from FED-CSG certifying that their application is on process. The validity of the certification shall be thirty (30) days only but it can be renewed whenever necessary.
b. In addition, all applications for issuance of license to operate, whether new or renewal, covered by this policy shall be grouped and combined according to their business activity.
d. Applicant to operate a new branch store shall be approved by D, CSG. The succeeding renewal of branch license shall be approved at the level of Cr FED unless certain changes in the license will be made which will require the approval of D, CSG anew.
e. Effective ninety (90) days upon approval of this Circular, all effectivity date of License to Operate branch shall be the same with that of the effectivity date of the mother license. In no case, shall an applicant to operate new branch store by any firm be allowed without mother license. The payment of renewal fee shall be computed in accordance with the provision of Executive Order 256 in a proportionate manner.
f. The following documentary requirements shall be necessary for the application for License to Operate dealership (New and Renewal):
NEW
1. The applicant shall submit the following in three (3) copies each.
4. From the Provincial Director/City Director thru their respective FESAGSs of the Police Provincial Offices, the application will be forwarded to the Chief, FED which after processing will be forwarded to the C, PNP (thru: channels) pursuant to PNP Memo Cir No. 99-009 dated 16 March 1999.
5. If the application is approved by the C, PNP, License to Deal in Firearms and Ammunition/License to Repair Firearms is issued by C, FED after submission of Dealer's Bond by the applicant.
6. Importation of Firearms, Ammunition and Others
'Only defective items which were previously imported by a licensed gun dealer shall be allowed to be re-exported back to the country of origin.
8. Control on the Sale of Ammunition, Spare Parts and Ammunition Components
a. Ali sales of ammunition by authorized dealers must be to licensed firearm holders and members of the PNP, AFP, Law Enforcement Agencies, and government entities with law enforcement functions who are issued government firearms covered by Memorandum Receipt only and upon approval and issuance of the required Permit to Purchase Ammunition (PPA) and Permit to Transport (PPT) by Chief, FED. PPA issued to buyers shail form part of the monthly Report on Sales to be submitted to FED on or before the 10th day of the succeeding month. The monthly report submitted shall be the consolidation of all sales made by main and its branch stores.
b. Permit to Purchase Ammunition maybe availed upon request of the licensee on quantities not more than 50 rounds, except for caliber 22, wherein a licensee is authorized up to 100 rounds. Juridical entities such as Private Security Agencies, Company Guard Forces, PNP & AFP units maybe allowed to purchase ammunition on large quantities at any given time as need arises. Licensed firearm holders may secure their permit to purchase ammunition at their respective Provincial/Regional Director/City Director.
c. Branch dealers in the provinces may keep in their respective depository vault a maxi mum of 100,000 rounds of various calibers of ammunition for sale to licensees in the area with approved PPA. Only when the dealer can account for the previous ammunition acquired may he/she be allowed to replenish their inventory stock in the store by C, FED.
d. All imported firearms, and major firearm parts (barrel, slide and frame) by licensed dealers, upon arrival and payment of taxes due on importation, shall be transferred to FED for inspection, inventory and recording and thereafter must be allowed to be kept in store vault of importing dealer and can be displayed in stores provided such is covered with appropriate Authority to Display issued by C, FED. The dealer concerned shall maintain its own Record Book where the names and addresses of buyers of firearms and major firearm parts will be logged. In the same manner, the FED shall maintain its own records of importation and withdrawal of major firearm parts made by the dealers. The buyer shail furnish the dealer a copy of his valid firearm license prior the sale of major firearm parts is made. Monthly report on sales shall be submitted to FED, CSG together indicating the firearm details and the list of individuals to whom firearms were sold and has been licensed as basis of allowing the dealer to replenish his inventory stock.
e. Control on firearms frame/conversion kit, slide and barrel:
9. Miscellaneous Provisions:
a. The Firearms and Explosives Division, Civil Security Group is the authorized custodian and depository of all commercial firearms, ammunition, spare parts, components, etc. by licensed dealers. Firearm dealers with stock on hand but failed to renew their License to Operate shall be required to transfer their items at FED-CSG storage volt.
b. New applicants for dealership, for corporation, shall be required a paid-up capital stock of P500,000.00 and shall maintain office/store in a commercial district. If the applicants is single proprietorship firm, the same amount of business capitalization is needed. A certification or affidavit of the Corporate Treasure and Bank Statement as a proof of capitalization is a requirement. Henceforth, no person will be allowed to engaged, operate or have interest in more than one dealership with similar business activity. A licensee may establish branch stores provided a separate registration from the Bureau of Domestice Trade and Mayor's Permit to operate branch in the locality are secured.
c. Authority to Display issued by the Chief, FED i's necessary to cover the display of firearms and ammunition by any licensed gun dealer in their respective stores upon re quest of dealer concerned to serve as display for appreciation of their customers.
d. The sale on imported firearms intended for test and evaluation is prohibited unless prior written authorization from their foreign supplier/manufacturer is submitted and prior approval of the C, PNP is secured.
e. Licensed gun repair shop is prohibited from doing repair on unlicensed/unregistered firearms.
f. Gun store and gun repair shop shall be subject to inspection by representatives of the FED, CSG or FESAGS of PRO'S as often as necessary.
g. Additional conditions may be imposed by the Chief, Philippine National Police from time to time for the purpose of enforcing the rules and regulations governing the dealership of firearms and ammunition.
h. The dealership process shall be in accordance with the existing laws and regulations and that the movement and storage of firearms and ammunition shall be under the direction of Firearms and Explosives Division (FED), Civil Security Group.
i. Internal arrangement between dealers in the form of Memorandum of Agreement as a sign of good gesture shall be allowed in order to legalize their transaction of whatever legal purpose.
10. Administrative Sanction
a. There shall be an Administrative Sanction of suspension or cancellation of license de pending on the gravity and nature of the offense on the following prohibited acts:
c. The Inspectorate Section of the Operations Branch, FED, CSG shall conduct and de termine penalties on violations of the above provisions, Chief, FED shall recommend same to the C, PNP for approval.
d. Gun dealers with expired License to Operate shall not be allowed to renew same if no sale of firearm was made during the period of the validity of the license.
11. The Chief, Firearms and Explosives division may formulate supplementary rules and regulations on matters not covered by this new circular.
12. Repealing Clause:
All procedures, rules and regulation not in conformity with this new circular are hereby rescinded, amended or modified accordingly.
13. Effectivity
This policy shall take effect immediately.
Adopted: 14 Feb. 2008
(SGD.) AVELINO I. RAZON JR.
Police Director General
Chief, PNP
b. Executive Order No. 256 dated 21 December 1995 revising E.O. No. 58 By Rationalizing the Fees and Charges on Firearms, Ammunition, Spare parts, Accessories, Components, Explosives, Explosives Ingredients, Pyrotechnic and Devices (TAB "B").
c. Section 878, RAC entitled Unlawful Manufacture. Dealing In, Acquisition. Disposition, or Possession of Firearms, or Ammunition Therefore, or Instrument Used or Intended to be Used in the Manufacture of Firearms and Ammunition (TAB "C").
d. Memorandum Circular Number 03-2006 dated March 08, 2006 entitled Export of defense/Military items. Commercial Firearms. Ammunition and Explosives. (TAB"D”)
e. HPC Circular Number 2 dated 11 September 1990 "Annual Verification of Fire arms (TAB "E").
f. HPC SOP Number 4 dated Nov. 02, 1972 Safe of Firearms to Police Forces & Security Agencies (TAB "F").
g. Memorandum Circular 99-009 dated March 16, 1999 entitled new Policy on Firearms and Ammunition Dealership (TAB "G").
This Circular will correct the awkward situation where the main license, to operate of a gun dealer has expired or ceased while its branch license is still valid.
This Circular will reduce the volume of new applications and renewal of Licenses to Operate Dealership, Licenses to Repair and Licenses of Inventor in firearms and ammunition, spare parts and accessories and related matters.
This Circular prescribes the procedures in the issuance of the various new licenses and authorities mentioned herein and the general provisions in the control on the sales of firearms, ammunition, spare parts and other related matters. The procedure herein established shall also govern the renewal of the licenses and authorities granted under this Circular.
a. License to Deal - License authorizing the purchase, sale and general business in handling firearms and ammunition, spare parts and accessories, airguns, airsofts, reload ing machine and components, and bullet-proof vest.
b. License to Repair - License authorizing the repair of defective firearms to restore its original composition or to enhance or upgrade firearms.
c. Indent License to Deal - License authorizing the importation and sales of firearms, ammunition, spare parts, etc., for the AFP, PNP and other government entities.
d. Authority to Import - Official document authorizing the importation of firearms, ammunition, spare parts, accessories, raw materials, etc.
e. Authority to Export-Official document authorizing the exportation of firearms, ammunition, spare parts, accessories, raw materials, etc.
f. Accessories - is an optional firearm part which may enhance or increase the operational efficiency or accuracy of a firearm.
g. Refurbishment/refurbish - the process by which a licensed gun repair shop or manufacturer restores the original features of a firearm.
h. Major Firearms Parts - Frame, slide and barrel
i. Conversion Kit - is the upper assembly by pistol which is used to change a firearm from one caliber to another (barrel, slide, firing pin spring, extractor and firing pin block).
j. Bodega Transfer - transfer of firearms from one dealer to another inside the FED Bodega.
k. Authority to Display - Official document issued to legitimate dealers authorizing them to display firearms for commercial purposes.
l. Mother License-refers to the main license issued to a particular dealer to operate a primary store.
m. Branch License - refers to the license issued to particular dealer operating in a different address to that of the mother license.
a. All Licenses to Operate whether for new applications or renewal shall be valid for a period of five (5) years. Application for renewal thereof shall be filed at Headquarters FED- CSG, Camp Crarne, Quezon City not later than ninety (90) days before expiration of the LTO regardless of the place of business. Upon expiration of the LTO, the dealer, indentor, or gun repair shop should automatically stop its operation. However, in the event that an application for renewal is duly filed prior to its expiration, the licensee may request for a certification from FED-CSG certifying that their application is on process. The validity of the certification shall be thirty (30) days only but it can be renewed whenever necessary.
b. In addition, all applications for issuance of license to operate, whether new or renewal, covered by this policy shall be grouped and combined according to their business activity.
Group I-License to Operate Dealershipc. Application to operate several licenses of new applicant - for mother license - with the same business activity will be processed as one and will be issued with only one (1) license to operate indicating therein the type of business applied subject to the approval of the Chief. PHP. The License to Operate issued shall authorize the licensee concerned to engage in business only in the given address as indicated in the license However, the amount of license fee to be collected shall depend on the number of business activities applied in accordance with Executive Order No. 256. Considering that the LTO had been previously approved/issued by Chief. PNP. succeeding renewal thereof shall be issued at the level of D, CSG unless certain amendments/changes in the license is needed which require the approval of C, PNP a new.
a) Firearms and Ammunition
b) Firearm spare parts & accessories
c) Air gun
d) Ammunition Reloading Components
e) Bullet Proof Vests (Level I, II, and III only)
f) Bomb Suit/Bomb Blanket
g) Airsoft Rifle/Pistol
Group II - License to Operate Gun Repair Shop
Group III - License to Operate as Indentor
d. Applicant to operate a new branch store shall be approved by D, CSG. The succeeding renewal of branch license shall be approved at the level of Cr FED unless certain changes in the license will be made which will require the approval of D, CSG anew.
e. Effective ninety (90) days upon approval of this Circular, all effectivity date of License to Operate branch shall be the same with that of the effectivity date of the mother license. In no case, shall an applicant to operate new branch store by any firm be allowed without mother license. The payment of renewal fee shall be computed in accordance with the provision of Executive Order 256 in a proportionate manner.
f. The following documentary requirements shall be necessary for the application for License to Operate dealership (New and Renewal):
NEW
1. The applicant shall submit the following in three (3) copies each.
a. Location pian of the proposed gun store or repair shop showing distance from the nearest Police Headquarters (in meters).2. Basic letter from the applicant addressed to the Chief, PNP (thru: Channels) requesting issuance of License to Deal in Firearms and Ammunition/Gun Repair and also stating among other things, the following:
b. Sketch of the firearms and ammunition vault showing inside dimension and construction materials used and the kind of door and locking device.
c. Copy of Business Registration of the firm with the Securities and Exchange Commission (Articles of Incorporation and By-Laws) and/or the Department of Trade and Industry.
d. Clearances of the Manager/Proprietor/Person who will manage the Firearm/ Ammunition Dealership or perform1 the repair of firearms from the City/Municipal Mayor, Metropolitan/Municipal Chief of Police in the place of his/her residence, NBI Clearance and Dl Clearance or Regional Intelligence and Investigation Division (R1ID) Clearance for provincial applicants.
e. The applicant will accomplish Application for License deal in Firearms and Ammunition (Form 1).
a Certification or Affidavit of the Corporate Treasurer and bank Statement stating therein the Paid-up capital stock of P500,000.00 as proof of capitalization.3. Submit all papers to the Police Provincial City Director for inspection, comment and recommendation. If the gun store/gun shop is located in Metropolitan Manila, the application shall be submitted to the Chief, FED, Camp Crame, Quezon City.
Gun dealer, established as Sole Proprietorship shall submit a certification from the bank stating therein a bank deposit of at least P500,000.00 in the name of the store.
b. Location of the gun store/gun repair whether it is properly constructed of strong materials and safely located. Whether it is provided with burglar and fire proof vault enough to safely accommodate the quantity of firearms and ammunition applied for.
c. Name of the Proprietor/manager who will actually manage the gun store and his/her corresponding qualification in the business. A certification from licensee is needed certifying therein that the gunsmith to be employed has a technical know how of the job and possesses sufficient experience in doing repair jobs.
d. Picture of gun store/repair shop with captions during ocular inspection show ing the following:1. exterior viewe. Certification from Provincial Director/City Director that the gun store/repair shop is secured and safe from insurgents and other form of lawless elements.
2. interior view
3. display cabinet/counters
4. vault
5. equipment/machines use if any
f. Tax Identification Number Re-Revenue Regulations No. 11-99. Such other information that will justify the application. Secure Order of Payment and Special Bank Receipt (SBR) for License Fee and Surety Bond.
4. From the Provincial Director/City Director thru their respective FESAGSs of the Police Provincial Offices, the application will be forwarded to the Chief, FED which after processing will be forwarded to the C, PNP (thru: channels) pursuant to PNP Memo Cir No. 99-009 dated 16 March 1999.
5. If the application is approved by the C, PNP, License to Deal in Firearms and Ammunition/License to Repair Firearms is issued by C, FED after submission of Dealer's Bond by the applicant.
NOTE: Applicant for Indentor's License to deal in Firearms & Ammo and other related items to PNP. AFP and other Government Entities for commercial purposes shall disregard the requirements in paragraph 1 a and 1 b and paragraph in 2a, 2b, 2c. 2e and 2f.NOTE: Renewal of License to Deal Firearms and Ammunition of every gun dealer with rented space for storage at FED-CSG shall first pay the corresponding storage fee before the renewal process.
RENEWAL
1 Letter Request
2. Xerox Copy of old LTO
3 Mayor's Permit
4. Original Directorate for Intelligence (Dl) Clearance or Regional intelligence and
Investigation Division (RIID) Clearance for provincial applicants & NBI Clearance!
5. DTI/SEC Registration (with Articles of Incorporation and By-Laws)
6. Special Bank Receipt (SBR)-Dealer's Fee
7. Dealer's Firearms Bond
8. Summary of Transaction (24 months) including List of Individuals to whom fire arms were sold
9. Picture of Gun Store with captions during Ocular Inspection showing the ft:a. exterior view10. Letter of Justification for Late Filing
b. interior view
c. display cabinet/counters
d. vault
e. equipment/machines use if any
11. TIN Revenue Reg No. 11-99
12. Inspection Report Conducted by Inspectorate & Investigation Branch, FED.
13. For Provincial Applicants include the ff:a. Certification from the Provincial/City Director that the place is Safe & Secured from Insurgents
b. Ocular Inspection Report conducted by said PPD
c. Endorsement from PD/City Director
6. Importation of Firearms, Ammunition and Others
a) A licensed dealer may import firearms; ammunition, raw materials for manufacturing, etc. which shall be based on the highest yearly importation made by concerned dealer during the past three (3) calendar years, minus current stock : on hand following the ratio of 70% and 30% for low-powered and high-powered . handgun respectively based on their present quantity as reflected in their ap-; proved LTO and/or Import Authority. The number of firearms, ammunition, etc., on import Authority may be applied not exceeding the quantities approved in the license including the actual stock on hand when the application was filed. All imported firearms, major firearm parts except ammunition, spare parts, accessories, airsofts and airguns upon arrival and payment of taxes due on imported articles with the Bureau of Customs shall be transferred to the Firearms & Explosives Division, Civil Security Group for deposit. Only the store with the mother (main) license shall be allowed To import and in no case shall a branch be allowed to import other than that of the main license.7. Exportation of Firearms, Ammunition and Others
b) The authority to import shall be issued by C, PNP, the validity period of which shall be three (3) years except for authority to import indentor's items which will be valid for one (1) year.
c) All importation by licensed firearm dealers/indentors for the purpose of demonstration shall be returned to the country of origin or shall be donated to the PNP upon completion of the demonstration by the requesting unit/agency or before the expiration of the Import Authority issued by the C, PNP or his authorized representative. Imported items intended for test and evaluation by the PNP and other Law Enforcement Agencies shall be properly endorsed by the Directorate for Research and Development (DRD) of National Headquarters- PNP. Date or duration of the demonstration shall be categorically specified in the Import Authority. Subsequent approval by Chief, PNP for commercial sale to any qualified individual or entity is needed. Request for approval shall be made by concerned indentor.
d) Request for Authority to Import indentors item should be strictly supported by the following attachments:
FORAFP/PNPAND OTHER LAW ENFORCEMENTAGENCIES
DONATION OF LOCAL GOVERNMENT UNITS (LGUS) TO AFP/PNP/OTHER LAW ENFORCEMENTAGENCIES 1. Purchase Order (original/authenticated copy) 2. Original End-User's Certificate (authorized signatories are either of the ff. - Chief, PNP/Regional Director (RD) for PNP, Commanding General for AFP or Head of Office for Other Law Enforcement Agencies) 3. Certificate of Availability of funds
e) All new models of firearms imported by licensed dealers should have sample of each type which shall be subject for approval of the Firearm Classification Board before its commercial availability in the local market to ensure quality and safety.
'Only defective items which were previously imported by a licensed gun dealer shall be allowed to be re-exported back to the country of origin.
8. Control on the Sale of Ammunition, Spare Parts and Ammunition Components
a. Ali sales of ammunition by authorized dealers must be to licensed firearm holders and members of the PNP, AFP, Law Enforcement Agencies, and government entities with law enforcement functions who are issued government firearms covered by Memorandum Receipt only and upon approval and issuance of the required Permit to Purchase Ammunition (PPA) and Permit to Transport (PPT) by Chief, FED. PPA issued to buyers shail form part of the monthly Report on Sales to be submitted to FED on or before the 10th day of the succeeding month. The monthly report submitted shall be the consolidation of all sales made by main and its branch stores.
b. Permit to Purchase Ammunition maybe availed upon request of the licensee on quantities not more than 50 rounds, except for caliber 22, wherein a licensee is authorized up to 100 rounds. Juridical entities such as Private Security Agencies, Company Guard Forces, PNP & AFP units maybe allowed to purchase ammunition on large quantities at any given time as need arises. Licensed firearm holders may secure their permit to purchase ammunition at their respective Provincial/Regional Director/City Director.
c. Branch dealers in the provinces may keep in their respective depository vault a maxi mum of 100,000 rounds of various calibers of ammunition for sale to licensees in the area with approved PPA. Only when the dealer can account for the previous ammunition acquired may he/she be allowed to replenish their inventory stock in the store by C, FED.
d. All imported firearms, and major firearm parts (barrel, slide and frame) by licensed dealers, upon arrival and payment of taxes due on importation, shall be transferred to FED for inspection, inventory and recording and thereafter must be allowed to be kept in store vault of importing dealer and can be displayed in stores provided such is covered with appropriate Authority to Display issued by C, FED. The dealer concerned shall maintain its own Record Book where the names and addresses of buyers of firearms and major firearm parts will be logged. In the same manner, the FED shall maintain its own records of importation and withdrawal of major firearm parts made by the dealers. The buyer shail furnish the dealer a copy of his valid firearm license prior the sale of major firearm parts is made. Monthly report on sales shall be submitted to FED, CSG together indicating the firearm details and the list of individuals to whom firearms were sold and has been licensed as basis of allowing the dealer to replenish his inventory stock.
e. Control on firearms frame/conversion kit, slide and barrel:
1) Firearm frame/conversion kit shall be treated as a firearm and the purchase of it shall be treated as if buying a complete firearm necessitating compliance with the requirements stated in SOP 13. The caliber of firearm to be assembled out of the purchased frame shall be indicated in the application " form. An individual who is a licensed firearm holder who desires to purchase/ own a new frame, shall dispose/transfer ownership of the said license firearm frame to a qualified person or surrender/turn-over same to FED for proper disposition. However, individual gun club members may retain the old and the newly purchased frame provided the latter shall be licensed to him as another firearm in accordance with SOP13.f. Ammunition components, like gun powder and primer, need an approved Permit to Purchase Components issued by C, FED prior to sale, which shall form part of the Monthly report submitted by dealers. The monthly report of production on ammunition submitted shall indicate the quantities of ammunition produced and the number of primers, brass shells, heads/wads, etc., and amount of powder used. Ammunition Components of Dealers must be sold to authorized entities only, such as licensed manufacturer, duly recognized gun clubs and units of the AFP and PNP as follows:
2) Purchase of slide and/or barrel shall be accompanied by a permit to purchase slide and/or barrel, compatible/similar in caliber and make with the buyer's licensed firearm. A qualified individual who desires to purchase/own a slide and/or barrel assembly indicating the same serial number of his licensed firearm together with the new caliber formed by the said purchased
3) Only licensed firearm holders can purchase/own slide and/or barrel compatible with thw make as stated approved license.
1) Units of the Armed Forces of the Philippinesg. No more than 10, 000 small arms primers may be displayed in any commercial establishments. Additional Stocks shall be stored in a magazine designed for primers. Transport of same shall be done in accordance with the provision of SOP #4 entitled Control and Supervision of Importation, sale, and possession and use of explosive dated April 19, 1991
2) Units of the Philippine National Police
3) Government entities possessing one hundred (100) or more firearms under Long Certificate of Registration (firearms owned by the government)
4) Licensed Security Agencies and Company guards forces
5) Military/Police/Security Guard Training Schools
6) Gun clubs, public or private, duly recognized PNP.
a. The Firearms and Explosives Division, Civil Security Group is the authorized custodian and depository of all commercial firearms, ammunition, spare parts, components, etc. by licensed dealers. Firearm dealers with stock on hand but failed to renew their License to Operate shall be required to transfer their items at FED-CSG storage volt.
b. New applicants for dealership, for corporation, shall be required a paid-up capital stock of P500,000.00 and shall maintain office/store in a commercial district. If the applicants is single proprietorship firm, the same amount of business capitalization is needed. A certification or affidavit of the Corporate Treasure and Bank Statement as a proof of capitalization is a requirement. Henceforth, no person will be allowed to engaged, operate or have interest in more than one dealership with similar business activity. A licensee may establish branch stores provided a separate registration from the Bureau of Domestice Trade and Mayor's Permit to operate branch in the locality are secured.
c. Authority to Display issued by the Chief, FED i's necessary to cover the display of firearms and ammunition by any licensed gun dealer in their respective stores upon re quest of dealer concerned to serve as display for appreciation of their customers.
d. The sale on imported firearms intended for test and evaluation is prohibited unless prior written authorization from their foreign supplier/manufacturer is submitted and prior approval of the C, PNP is secured.
e. Licensed gun repair shop is prohibited from doing repair on unlicensed/unregistered firearms.
f. Gun store and gun repair shop shall be subject to inspection by representatives of the FED, CSG or FESAGS of PRO'S as often as necessary.
g. Additional conditions may be imposed by the Chief, Philippine National Police from time to time for the purpose of enforcing the rules and regulations governing the dealership of firearms and ammunition.
h. The dealership process shall be in accordance with the existing laws and regulations and that the movement and storage of firearms and ammunition shall be under the direction of Firearms and Explosives Division (FED), Civil Security Group.
i. Internal arrangement between dealers in the form of Memorandum of Agreement as a sign of good gesture shall be allowed in order to legalize their transaction of whatever legal purpose.
a. There shall be an Administrative Sanction of suspension or cancellation of license de pending on the gravity and nature of the offense on the following prohibited acts:
1) Selling of ammunition to unauthorized persons, entities, security agencies, etc.b. Holders of license to operate with unrenewed license shall have six (6) months from the effectivity of this Circular within which to renew their expired licenses; otherwise, their licenses are deemed cancelled. Those with cancelled licenses will be given another six (6) months to dispose remaining stocks, if any, after which stocks left will be confiscated in favor of the government upon due process. Gun dealers with expired license and eventually on the brink of closing the company shall be allowed to sell its remaining items on hand thru bodega transfer as part of its dissolution and winding up period.
2) Selling of display firearm.without authority.
3) Failure to maintain the basic security and safety requirements of a gun dealer and gun repair shop such as vault, fire fighting equipment and maintenance of security guards from a licensed security agency.
4) Failure to submit monthly sales report on time to FED, CSG
5) Unauthorized disposition or selling of firearms intended for demonstration/ test/evaluation and display during gun show purposes.
6) Submission of spurious documents in the application for licenses. 7) Other similar offenses.
c. The Inspectorate Section of the Operations Branch, FED, CSG shall conduct and de termine penalties on violations of the above provisions, Chief, FED shall recommend same to the C, PNP for approval.
d. Gun dealers with expired License to Operate shall not be allowed to renew same if no sale of firearm was made during the period of the validity of the license.
12. Repealing Clause:
All procedures, rules and regulation not in conformity with this new circular are hereby rescinded, amended or modified accordingly.
This policy shall take effect immediately.
Adopted: 14 Feb. 2008
Police Director General
Chief, PNP