Clarification on Policy Issuances Affecting Petitions/Applications for Sale and Transfer and Dropping and Substitution of Units

February 12, 2007

LTFRB MEMORANDUM CIRCULAR NO. 2007-006

 

On 24 February 2003, the Board issued Memorandum Circular No. 2003-005 [Implementing Guidelines on USEC Valdez's Memo dated 09 January 2003 (Re: Metro Manila Bus Route Rationalization Program)], pertinent portion of which reads:

"1. Acceptance of Petition/Application for Sale and Transfer and Dropping and Substitution of Buses under the Bus Route Rationalization Program is temporarily being held in abeyance until such program is finished. The same shall also be enforced in LTFRB National Capital Region except for the following:

"1.1 Units included in Tables 1, 2 and 3 of the Bus Rationalization Program

"1.2 Units already approved under the Bus Rationalization Program."

In fine, Petition/Application for Sale and Transfer and Dropping and Substitution of Unit/s may be accepted if the PUB units are included in Tables 1, 2 and 3 and/or already approved under the Bus Rationalization Program.

Subsequently, on 4 September 2003, the Board issued Memorandum Circular No. 2003-024 (Re: Continuing Prohibition for the Dropping and Substitution of Units of PUB Buses under the Route Rationalization Program unless the Substitute Units are Brand New). With such issuance, the Board further extended the exceptions on the acceptance of Petition/Application for Dropping and Substitution of PUB Units. cDTSHE

However, on 2 December 2005, the Board issued Memorandum Circular No. 2005-049 purportedly to reconcile the two (2) afore-mentioned memorandum circulars (MCs 2003-005 and 2003-024) stating that it only lifted the suspension of Petitions for Dropping and Substitution of PUB units (provided the substitute units are brand new), and not Petitions for Sale and Transfer of CPCs. Prior thereto the Board also issued Memorandum Circular No. 2005-047 on December 2005 (Re: Prohibition on Simultaneous Filing of Sale and Transfer and Dropping and Substitution) using as basis thereof the above-cited MCs 2003-005 and 2003-024.

As a result of the issuance of MCs 2005-047 and 2005-049, the Board prohibited the filing of the following applications/petitions, to wit:

a. Petitions/Applications for Sale and Transfer of CPCs under the Bus Rationalization Program; and

b. Petitions/Applications for Sale and Transfer of CPC with Dropping and Substitution of Unit/s for ALL TYPES OF DENOMINATION and not only those under the Bus Rationalization Program.

On 10 April 2006, the Board issued Memorandum Circular No. 2006-024 (Re: Voluntary Segregation Program for Public Utility Buses) which provides that "no application for dropping and substitution shall be accepted during the segregation program of CPC."

To finally clarify the conflicting policy issuances, the Board hereby RESOLVES to allow the acceptance and filing of the following:

a. Petitions for Dropping and Substitution of PUB Units under the Bus Rationalization Program provided that the substitute units are brand new. (provided in MC 2003-024 dated 4 September 2003). However, if the CPC is subject of an Application for Voluntary Segregation of any of the authorized PUB Unit, the substitution of the unit subject thereof shall not be allowed during the period of the Voluntary Segregation Program.

b. Petitions for Sale and Transfer of CPCs if the:

b.1 Units are included in Tables 1, 2 and 3 of the Bus Rationalization Program cEaDTA

b.2 Units are already approved under the Bus Rationalization Program.

 (Exceptions provided in MC No. 2003-025 dated 24 February 2003).

c. Petition for Sale and Transfer with Dropping and Substitution of Units for all other types of denomination (PUJ, TAXI, TH, etc.)

d. Petitions for Sale and Transfer, Dropping and Substitution may be processed at anytime during the validity of the CPCs.

This Memorandum Circular supersedes any and all issuances inconsistent herewith and shall be effective fifteen (15) days after its publication in a newspaper of general circulation or in the Official Gazette.

Quezon City, Philippines, February 12, 2007.

 

(SGD.) THOMPSON C. LANTIONChairman

(SGD.) GERARDO A. PINILIBoard Member

(SGD.) MARIA ELLEN-DIRIGE CABATUBoard Member

Published in the Official Gazette, Vol. 103, No. 28, p. 4391, July 9, 2007.