Rules and Regulations Implementing Presidential Decree No. 1572

January 1, 1979

RULES AND REGULATIONS IMPLEMENTING PRESIDENTIAL DECREE NO. 1572 WHICH GOVERNS THE ACCREDITATION, AMONG OTHERS, OF ELECTRONICS, ELECTRICAL, AIRCONDITIONING AND REFRIGERATION SERVICE AND REPAIR ENTERPRISES

Pursuant to Section 2 (k) of Presidential Decree No. 1572 the following Rules and regulations, hereinafter referred to as Rules, are hereby promulgated to implement the decree: cd

TITLE I

Definition of Terms

SECTION 1. For purposes of these Rules, the following definitions are hereby adopted:

a) "Board" refers to the Accreditation Board for Electronics, Electrical, Airconditioning and Refrigeration Service and Repair Enterprises.

b) "Accreditation" means the legal recognition that a service and/or repair enterprise and the technical personnel employed therein, or a specialty contractor who is accredited, have complied with the requirements of PD 1572 and fulfilled the basic operational requirements of the service and repair business and are, therefore, deemed reliable and competent to engage in the trade.

c) "Person" refers to an individual, partnership, corporation or other legal forms of business organizations engaged in the service and repair of electronics, electrical, airconditioning and refrigeration appliances.

d) "Service or Repair Enterprises" refer to any person as defined in sub-section (c) hereof, with a place of activity or an established location open to the public where alteration, repairing, servicing, electrical rewinding and repair, reconditioning and rebuilding of electronics, electrical, airconditioning, and refrigeration appliances and equipment are undertaken, and which is equipped with the proper service and repair tools and equipment and manned by reliable, qualified and competent technical service personnel.

e) "Electronics Equipment" refers to equipment such as simple and multiple band AM radio receivers; public address, paging and intercom systems; FM radio receivers, mono phonographic and mono tapes recorders; mono chrome television sets (black and white); stereo phonographs and stereo tape recorders; antennae systems; multiband AM/FM radio receivers; color television sets; close circuit television; quadrosonic and 4- channel amplifiers; FM multiplex stereo and quadruplets radio receivers; sound distributing system including speech clinics (audio visual); other advanced and highly sophisticated electronics and communications equipment not covered by Republic Act No. 5734.

f) "Electrical Equipment" refers to electric fans and ventilators, water heaters, washing machines, electric clothes dryers and ironers; water pumps and its accessories; electric or electronic ovens and ranges; fan motors, electric motors, generators; transformers, starters and controls.

g) "Airconditioning Equipment" refers to equipment for the control of temperature, humidity, purity, and environment such as room, split and unitary package type (aircooled and water-cooled) airconditioners whose prime mover may be steam, electricity, the sun and any other source of power, commercial and industrial airconditioning systems; direct expansion or chilled water systems; airconditioners for all types of vehicles, sealed, semi-sealed and open type refrigerant compressor of the reciprocating rotary, screw, centrifugal, or absorption type; cooling towers, airblowers, ventilators air handling units, condensers, receivers, and evaporator coils; electric or pneumatic controls.

h) "Refrigeration Equipment" refers to gas, solar or electrically operated machines for the control of medium and low temperature such as conventional and frost-free household and commercial refrigerators and freezers; beverage coolers, water coolers, ice cream, ice drop and ice cube making machines and vendo machines; cold storage, brine tanks, brine and storage coils; sealed, semi-seal and open type refrigeration compressors.

i) "Appliance" refers to refrigerators, freezers, room airconditioners, TV, stereo and radio sets, and the like.

j) "Guarantee" is the commitment given in writing by a service and repair enterprise undertaking a service or repair work on a particular appliance or equipment, that repair enterprise shall undertake a rework of the previous service and repair without any obligation from the customer.

k) "Engineering Works' refers to airconditioning and refrigeration works such as fabrication of air ducts, air grilles, cooling towers, condensers and evaporation coils, steel base and brackets, and airhandling units, etc.

l) "Technical Personnel" refers to electronics, airconditioning and refrigeration technicians, mechanics and servicemen and electricians whose qualifications meet the standards set by the Trade Skills Standards, Testing and Certification Program, Office of Manpower Skills Development of the National Manpower & Youth Council.

TITLE II

Accreditation

SECTION 1. All service and repair enterprises including all technical personnel employed therein and specialty contractors who are actually engaged in the service and repair business shall apply for accreditation with the Ministry of Trade within ninety (90) days from the promulgation of Presidential Decree No. 1572, and shall apply for renewal of their accreditation in accordance with sub-section (c), Section 3, Title X of these Rules. cd i

SECTION 2. No service and repair enterprise including all technical personnel employed therein and also Specialty Contractors actually engaged in the service and repair business shall be licensed or permitted to engage in the service and repair trade without first being received by the Ministry of Trade.

TITLE III

Powers and Functions of the Minister of Trade

SECTION 1. Powers and Functions. — The Minister of Trade is vested with authority and conformably with the provisions of Presidential Decree No. 1572:

a) To undertake researches on the conditions, practices, and facilities affecting the operation of enterprises engaged in the service and repair of motor vehicles, heavy equipment, engines and engineering works; electronics, electrical, airconditioning and refrigeration; office equipment; medical and dental equipment; and other consumer mechanical and industrial electro-mechanical, chemical, gaseous equipment, appliances or devices in the country;

b) To establish, promote, maintain and enforce ethical, moral and professional standards in the operation and practice of such service and repair enterprises;

c) To undertake researchers and prescribe the basic essential requirements of setting-up, including the management and operation of such enterprises and accredit those which have complied such requirements;

d) To establish measures as may be deemed proper for the advance of professionalism and consumerism in such service and repair enterprises; cd

e) To investigate violations of this Decree and its implementing Rules and or this purpose issue subpoena and subpoena duces tecum to secure attendance of witnesses and the production of documents in connection with charges presented to and/or any investigation pending with the Ministry of Trade and to impose penalties, sanctions and such other appropriate measures;

f) To collect filing fees and accreditation fees from service and repair enterprises and Specialty Contractors, and fees for the commercial practice of technicians classified according to the Manpower and Youth Council Classification in accordance with the rates; prescribed in PD 1572;

g) To create other accreditation boards, national or regional in scope, for other consumer and/or industrial, electro-mechanical, chemical, gaseous equipment and machinery, appliances, or devices and to recommend to the President of the Philippines the dissolution of such boards including the boards created herein when their services are deemed no longer necessary;

h) To create appropriate positions exempt from WAPCO and to appoint the personnel required to fill such positions for the effective implementation, maintenance and attainment and observance of the objectives, aims of this Decree and the implementing Rules, programs and policies; aisa dc

i) To delegate any or part of his power to any official when the exigencies of the service require to attain the aims and objective of this Decree; and

j) To lay down policies and issue rules and regulations and programs of actions for the implementation or compliance with this Decree.

TITLE IV

Accreditation Board

SECTION 1. Composition of the Board. — The board which is under the supervision and control of the Minister of Trade, shall be composed of eleven (11) members including the Minister as Chairman. Nine (9) of the members shall be appointed by the Minister upon recommendation and certification by the Appliance Service Association of the Philippines, Inc. (ASAP) as professionally, academically, and morally qualified and possessing recognized competence in the field of repair, technical servicing, service management and service contracting. One (1) member representing the consumer shall be appointed also by the Minister. A Vice Chairman shall be designated by the Minister from among the members of the Board upon recommendation of the members.

SECTION 2. Tenure of Office. — The term of office of the Chairman shall be co-terminus with his tenure as Minister of Trade; three (3) shall be for one (1) year; three (3) shall be for two (2) years; and four (4) shall be for three (3) years, subject to reappointment by the Minister upon recommendation of the Appliance Service Association of the Philippines, Inc. (ASAP). Any person appointed to fill a vacancy shall hold office only for the unexpired portion of the terms of the member whom he succeeds.

SECTION 3. Powers and Duties of the Board. — The Board is vested with the authority conformably within the intent and provisions of the Decree:

a) To recommend to the Minister of Trade the rules and regulations as may be necessary to implement the intent and provisions of P.D. No. 1572;

b) To recommend to the Minister of Trade the Issuance, suspension or revocation of Certificates of Accreditation in accordance with the procedures set in these Rules;

c) To formulate and recommend policies and measures essential to the promotion and maintenance of ethical, moral and professional standards in the operation of electronics, electrical, airconditioning, and refrigeration service and repair enterprises;

e) To recommend from time to time, measures necessary as it may deem proper for the advancement of professionalism in the operation of said service and repair enterprises in keeping with the progress of the industry;

f) To recommend the setting-up of regional accreditation boards of the said service and repair enterprises, its composition, tenure of office of the members of the regional board, powers and functions, compensation, office furnitures and fixtures, office equipment, employees and other requirements in the interest of the service;

g) To create working committees within the Board to handle special projects envisioned by the Board for the progress and development of the said service and repair enterprises, and to conduct seminars on accreditation on regional levels; cd

h) To request the officials of the various offices under the Ministry of Trade for assistance on matters affecting the implementation of the intents and objectives of these Rules;

i) To render annual reports to the Minister of Trade and such special reports as may be requested;

j) To establish a system for coordinating all government activities on accreditation and ensure continuing and meaningful interaction among various government agencies with respect to the determination of the impact of accreditation on national development;

k) To serve as a forum for the continuing inter-change of ideas and information among the concerned government agencies, the private service and repair enterprises, associations and the consuming public on policy issues, problems, and alternative approaches relating to accreditation;

l) To perform such other functions as may be necessary for the accomplishment of its objectives:

SECTION 4. Board Meeting. — The Board shall meet regularly once a month and not more than three (3) times a month including special meetings which may be called by the Vice-Chairman or the Chairman. The presence of one half (1/2) plus one of the members shall constitute a quorum. In the absence of a quorum, the members present shall constitute an Executive Committee to deliberate on the scheduled agenda subject to approval during a regular or special Board meeting.

TITLE V

Qualifications, Classifications and Categories of Accreditation

SECTION 1. Qualifications. — The accreditation of service and repair enterprises shall be based on the following minimum requirements and categories as defined in Section 3 of this Title:

a) Technical competence;

b) Adequate number of manpower whose technical qualifications are in accordance with the trade skill as set up by the Trade Skills Standards, Testing and Certification Program, Office of Manpower Skills Development of the National Manpower and Youth Council;

c) Adequate service and repair area;

d) Established guarantee service policies and work standards;

e) Provision for safety, technical training and development for service personnel;

f) Must carry at least a fire insurance coverage for the property of the enterprise and the property of its customers secured from an insurance company of its choice but accredited by the Office of the Insurance Commission, without prejudice to whatever additional insurance coverage that the Board may require; and

g) Other requirements stipulated in the application from.

SECTION 2. Classification. — The classification of accreditation for electronics, electrical, airconditioning and refrigeration service and repair enterprises shall be as follows: acd

a) Electronics Service and Repair Enterprises;

b) Electrical Service and Repair Enterprises;

c) Airconditioning and Refrigeration Service and Repair Enterprises;

d) Any two combination of a, b and c; and

e) Combination of a, b and c.

SECTION 3. Categories. — The categories of accreditation for electronics, electrical, airconditioning and refrigeration service and repair enterprises shall be as follows:

CATEGORY A — Electronics Service and Repair Enterprises.

Competent in the installation, maintenance, service, repair, reconditioning and re-installation of the following electronics equipment:

a) Simple and multiple band AM radio systems;

b) Public address, paging and intercom systems;

c) FM radio receivers;

d) Mono phonographs and mono tape recorders;

e) Monochrome television sets;

f) Stereo phonographs and mono tape recorders;

g) Multiband AM/FM radio receivers;

h) Color television sets;

i) Quadrosonic and 4-channel amplifiers;

j) FM multiplex stereo and quadroplex radio receivers;

k) Sound distributing systems including speech clinics;

l) Close circuit television sets;

m) Video tape and beta max

CATEGORY B — Electrical Service and Repair Enterprises

Competent in dis-assembly, repair, rewinding and re-assembly of the following electrical equipment:

a) Electric or electronic ovens and ranges;

b) Water heaters, washing machines, electric clothes dryers and ironers; cd i

c) Water pumps and its accessories;

d) Electric fans and ventilators;

f) Electric motors;

g) Transformers

h) Sealed and semi-sealed compressors.

CATEGORY C — Airconditioning and Refrigeration Service and Repair Enterprises

Competent in the installation, maintenance, service, repair, reconditioning and re-installation of the following airconditioning and refrigeration equipment:

a) Gas, solar or electrically operated conventional and frost-free refrigerators and freezers;

b) Beverage coolers, water coolers, vendo machines, ice cream, ice drop and ice cube making machines;

c) Room, free-blow or ducted split and unitary package type (aircooled and water cooled) airconditioners, auto airconditioners for bantam up to extra, heavy vehicles;

d) Sealed, semi-sealed and open type airconditioning and refrigeration compressors; cd

e) Cold storage, walk-in refrigerators and freezers, ice making equipment and its accessories, airconditioning and refrigeration mains including insulation works, brine tanks, brine coils and storage coils; and

f) Airducts, air grilles, cooling towers, air handling units, dehumidifiers, condensers and evaporator coils.

CATEGORY D-1 — Any combination of two Categories A, B, and C.

CATEGORY D-2 — A combination of Categories A, B, and C.

TITLE VI

Service and Repair Centers

SECTION 1. Service and Repair Centers. — The service and repair centers of accredited service and repair enterprises enumerated in Section 2, Title V of the Rules shall display a copy of the Certificate of Accreditation of the parent company in a conspicuous place in the center; Provided, that such service and repair center handles monthly maintenance, general cleaning and attendance to do repair on units manufactured or components thereof under factory warranty and is just an extension of the parent company.

SECTION 2. Listings. — The parent company shall present proofs that such service and repair centers perform only activities enumerated in Section 1 of this Title. It shall also submit a complete list of its service and repair centers showing their location, number of technical personnel, service vehicles, service tools and equipment.

SECTION 3. Registration. — Service and repair centers actually performing service and repair works outside of these mentioned in Section 1 of this Title shall file a separate application for accreditation to be processed and evaluated in accordance with those Rules.

TITLE VII

Service and Repair Enterprises Facilities

SECTION 1. Service and Repair Tools and Equipment. — All applicants for accreditation shall be equipped with the tools and equipment required by the nature of the operation of their ship, namely:

A. Electronics Tools and Equipment. —

a) VOM or VTVM

b) Pattern Generator (optional)

c) Tube checker (optional)

d) Transistor checker

e) RF Signal Generator

f) Socket wrench

g) Aligning tools

h) Soldering gun

i) Electric pliers

B. Electrical Tools and Equipment. —

a) Electrical Rewinding (Electric Motor)

1. Volt-ohmmeters

2. Volt-ammeters

3. Oven temperature tester

4. Puller

5. Screwdrivers

6. Meager

7. Coil winding machine

8. Soldering gun

9. Electric drill

b) Electrical Rewinding (Compressor)

1. Oxy-acetylene welding set

2. Electric welding set

3. Nitrogen regulator

4. Spray gun

5. Air compressor

6. Vise

7. Oiler

8. Test Board

9. Baking oven

10. Cleaning tank

C. Airconditioning and Refrigeration Tools and Equipment. —

a) Vacuum pump with vacuum gauge

b) Nitrogen regulator

c) Oxy-acetylene welding set

d) Electric welding set

e) Air compressor

f) Spray gun

g) Charging cylinder, adapter, manifold and hose

h) Flaring and charging tools

i) Volt-ohmmeter

j) Volt-ammeter

k) Screw driver (philipp and ordinary)

l) Electrical and mechanical pliers

m) Thermometer

n) Leak detector

o) Electric drill, electric solder

p) Hand truck, anvil, lifter acd

q) Wrench, hammer, saw

r) Electric grinder, vise, vise grip

s) Temperature recorder (Optional)

t) Voltage recorder (Optional)

D. Area of Shop. — The service and repair area shall be well-secured and adequate to handle satisfactory volume of business of the enterprise.

E. Safety Equipment/Storage Area. —

a) Fire extinguisher or Type A, B and C fire

b) Storage for inflammable materials, etc.

c) Fire alarm systems

TITLE VIII

Issuance of Certificate

SECTION 1. Certificate of Accreditation for Service and Repair Enterprises. — The Minister of Trade shall, upon recommendation of the Board and the payment of corresponding filing and accreditation fees by the applicant, issue a certificate of Accreditation showing that he has satisfactorily complied with the requirements for accreditation of an electronics, electrical or airconditioning and refrigeration service and repair enterprise.

SECTION 2. Certificate of Accreditation for Technical Personnel. — The Minister of Trade shall issue a Certificate of Accreditation to technical personnel who is self-employed or employed in a service or repair enterprise upon payment of the corresponding fees and recommendation of the Board based on presentation of proof that the person has passed the test on Trade Skills Standards given by the National Manpower and Youth Council or on a certification by the Appliances Service Association of the Philippines, Inc. that said person possesses the technical skill, training or experience for which he is accredited.

SECTION 3. Certificate of Accreditation as a Prerequisite. — The Certificate of Accreditation shall be a prerequisite or the issuance of a license for a service and repair enterprise to operate its business and for technical personnel who is self-employed or will be employed in the electronics, electrical, airconditioning and refrigeration service and repair enterprise.

TITLE IX

Filing and Accreditation Fees

SECTION 1. Filing, accreditation and renewal fees for service and repair enterprises and for technical personnel who are self-employed or employed therein, and for Specialty Contractors shall be within the rates prescribed in PD 1572 as follows:

a) Filing Fee of Fifty (P50.00) Pesos; cd

b) Accreditation Fee of not less than One Hundred (P100.00) Pesos but not more than Five Hundred (P500.00) Pesos depending on the classification of the enterprise;

c) For Technicians not covered by the Professional Regulation Commission:

1st Class — P50.00

2nd Class — P25.00

3rd Class — P20.00

SECTION 2. The Minister of Trade upon recommendation of the Board shall issue circulars fixing the fees within the foregoing rates to be paid by applicants for accreditation, including those for service/repair centers (satellites). The fees fixed are subject to change depending on the conditions practices obtaining at a given point of time and the service and repair industry.

TITLE X

Application for Accreditation

SECTION 1. Application forms, copy of PD 1572, Rules and Regulations. — Application forms and copies of Presidential Decree No. 1572 and the Forms may be secured from any of the following offices:

a)	National Accreditation Board for Electronics
	Electrical, Airconditioning and Refrigeration
	Service and Repair Enterprises (NABEEAR)
	Ministry of Trade
	7th Floor, Filcapital Building Ayala Avenue,
	Makati, Metro Manila
b)	Office of the Regional (NABEEAR)
	Trade Assistance Center (TAC)
	Ministry of Trade (List attached)

SECTION 2. Where to file applications. —

a) Applications for service and repair enterprises located within Metro Manila shall be filed with the Board.

Applications for service and repair enterprises in the various regions outside of Metro Manila shall be filed with the Office of the Regional NABEEAR (TAC).

SECTION 3. Processing, inspection and renewal of applications. —

a) The Board shall process and evaluate all applications filed with its and determine whether the applicant has complied substantially with the requirements enumerated in Title V of this Rules Incomplete applications shall be returned to the applicants.

b) Applications received by the Regional NABEEAR shall be processed and evaluated therein and shall be forwarded with its recommendation to the Board for appropriate action. cd

The Board shall inform the Regional NABEEAR of the names of the service and repair enterprises whose application are approved, the categories under which they are classified and the fees to be paid by them.

c) Applications for renewal shall be filed on or before the thirty first (31st) day of January of each calendar year with the offices mentioned in Section 1 hereof, accompanied by the current Certificate of Accreditation and the latest receipt of payment of fees. An applicant who filed his application for renewal after January 31 shall pay a penalty equivalent to twenty five (25%) per centum of the annual fees.

SECTION 4. Fees. — a) Application in the various regions shall pay the filing fee upon the filing of their applications. The Regional NABEEAR shall wait for the notification of the approval of the application, the category of the shop and the corresponding accreditation fee to be paid by the applicant.

b) The Regional NABEEAR shall issue certificate of filing when required by the applicant and also temporary or provisional receipts for fees collected and shall remit such fees to the Board. Official receipts together with the corresponding Certificate of Accreditation of applicants shall be sent by the Board to the Regional NABEEAR for transmittal to the applicants.

SECTION 5. Change of Classification. — The classification of a service and repair enterprises may be changed to a higher or lower category upon application by the enterprise concerned. The original Certificate of Accreditation shall be surrendered to the Board together with the application for reclassification. cdt

SECTION 6. Inspection. — The inspection of service and repair enterprises shall be conducted by persons duly authorized and provided with Mission Orders signed by the Minister of Trade using inspection report forms (IRF) designed and approved by the Board. The IRF shall be accomplished in triplicate, original, duplicate and triplicate to be retained by the Board, the person who conducted the inspection and enterprise inspected, respectively.

In the case of Regional NABEEAR, the original, duplicate and triplicate shall be retained by the Board, Regional NABEEAR and the enterprise inspected, respectively.

TITLE XI

Display of Certificate of Accreditation

SECTION 1. Display of Certificate, Sign Board. — Service and repair enterprises duly accredited by the Ministry of Trade shall:

a) Display their Certificate of Accreditation in a conspicuous place in their establishment;

b) Display a sign board, 1' x 3' in size, with an inscription of the class for which he is accredited, e.g. "Accredited Electronics Service and Repair Enterprises, Ministry of Trade, Certificate of Accreditation NO. " or any of the appropriate classification enumerated in Section 2 of Title V of these Rules.

TITLE XII

Service and Repair Guarantee

SECTION 1. Service and Repair Guarantee. — Service and repair enterprises duly accredited by the Ministry of Trade shall guarantee their services and repair work against defects in materials and workmanship, as follows:

a) All materials and labor supplied on all electronics equipment shall be given a minimum guarantee of thirty (30) days starting from the date of delivery and acceptance of the equipment by the customer;

b) All materials and labor supplied on all electrical equipment shall be given a minimum guarantee of sixty (60) days starting from the date of delivery and acceptance of the equipment by the customer;

c) All materials and labor supplied on all airconditioning and refrigeration equipment shall be given a minimum guarantee of ninety (90) days from the date of delivery and acceptance of the equipment by the customer;

d) All replaced materials, parts, and components shall be returned to the customer;

e) All guarantee shall be explicitly given in writing. It shall be understood to cover only those service and repair actually undertaken and any re-work within the guarantee shall be done without the obligation on the part of the customer.

TITLE XIII

Validity of Certification of Accreditation

SECTION 1. Validity. — A certificate of accreditation shall be valid from January 1 to December 31 of the calendar year when it was issued. A certificate of accreditation issued in any month during the calendar year shall be valid until December 31 of that year. aisa dc

TITLE XIV

Refusal, Appeal and Reinstatement of Certificate of Accreditation

SECTION 1. Refusal. — Upon recommendation of the Board, the Minister of Trade may not issue a Certificate of Accreditation to any service and repair enterprise whose owner or manager has been convicted by a court of competent jurisdiction of any criminal offense or found guilty of any act contrary to PD 1572, existing business and trade laws, rules and regulations or of any unethical practice.

SECTION 2. Appeal. — The respondent may within thirty (30) days from the date of the denial of his application file a petition for reconsideration with the Minister of Trade, otherwise the decision shall become final.

SECTION 3. Reinstatement. — Upon application and payment of the required fees and for reasons of equity and justice, the Minister of Trade upon recommendation of the Board may lift the suspension or revalidate the revocation of a Certificate of Accreditation.

A new certificate of accreditation to replace a certificate lost, destroyed or mutilated through force majeure may be issued by the Minister of Trade without payment of any fees. If the loss, destruction or mutilation was due to the negligence of the owner of the Certificate, a fee of Twenty Five (P25.00) Pesos shall be paid by him for the issuance of a new certificate.

TITLE XV

Roster of Accredited Service and Repair Enterprises and Technical Personnel

SECTION 1. The Board shall make a roster of service and repair enterprises, technical personnel and Specialty Contractors accredited showing their names, addresses, place of business, classifications and categories. Copies of the roster shall be sent to the persons accredited, government agencies and consumer groups. When necessary the roster may be published at least once a year in newspapers of general circulation. cd

TITLE XVI

Scope of Trade Practice

SECTION 1. Scope. — A duly accredited service and repair enterprise and the technical personnel employed therein and Specialty Contractors shall engage only in the service and repair business within the scope of the category or categories to which he/it is accredited, subject to any limitation that may be imposed in the Certificate of Accreditation.

SECTION 2. Incidental Work. — A duly accredited service and repair enterprise and the technical personnel employed therein and Specialty Contractors may take and execute a contract involving the use of two or more crafts of trade other than the one to which incidental or supplemental to the performance of service and repair for which he/it is accredited.

SECTION 3. Death of Member. — If upon the death of a member of an accredited partnership the partnership is not dissolved by reason off such death, the surviving member or members shall be entitled to continue the business under the same accreditation until the expiration thereof, provided that an application for permission to do so continue is filed with the Board within thirty (30) days after the death and application.

SECTION 4. Notice of Disassociation Required. — If the general manager, managing office or employee, through whom a partnership or corporation has been qualified and issued a Certificate of Accreditation, ceases for any reason whatsoever to be associated with such partnership or corporation, the Minister of Trade, through the Board, shall be notified accordingly in writing within ten (10) days following the cessation of the relationship between the officer or employee and his employer. All changes in the organizational set-up of the service and repair enterprise shall also be reported in writing to the Office of the Ministry of Trade.

SECTION 5. Complaints. — Any complaint based on any of the cause or causes provided herein shall be writing and under oath and shall be filed with the Office of the Ministry of Trade who shall order the investigation of the complaint in accordance with law.

TITLE XVII

Penalties

SECTION 1. Penalties. — A fine of not less than One Hundred (P100.00) Pesos and not more than Five Thousand (P5,000.00) Pesos or imprisonment of not less than thirty (30) days and not more than one (1) year, or both, at the discretion of the court, shall be imposed for violation of any of the provisions of PD 1572 and the Rules; provided, That, if the violation is committed by a corporation, partnership or an association, the penalty provided herein shall be imposed upon the director, partners, employees or persons therein responsible for the offense; and Provided, further, That, if the violation is committed by an alien, he shall be deported after service of sentence, if the offender is a naturalized Filipino citizen, he shall be automatically divested of his Filipino citizenship and, likewise, deported after service of sentence. If the offender is a government official or employee he shall, in addition to the penalty herein provided for, after the penalty or perpetual and absolute disqualification to hold public office.

TITLE XVIII

Code of Ethics/Practices

SECTION 1. Code Ethics/Practices. — In order to effectively carry out a progressive accreditation program aimed at upgrading and professionalizing the services and repair trade, the following code of ethics and practices are hereby adopted to guide the actions of accredited service and repair enterprises and the technical personnel employed therein the pursuit of their trade:

a) To uphold the honor and dignity of the service industry, a service and repair contractor and any technical personnel employed or engaged in the industry should be fair and honest in his business dealings. His practices and activities should be guided by the principles of justice and equity. The true worth of a service and repair contractor and technical personnel is the value set on him by the public and his associates;

b) To foster good understanding, a service and repair contractor and any technical personnel employed or engaged in the service and repair industry should conduct himself with his fellow service and repair contractors and technical personnel. He should cooperate with them for the protection and advancement of the service industry. It is highly unethical to speak maliciously of the work, reputation or ability of a fellow service and repair contractor and technical personnel;

c) It is not only improper but also immoral for a service and repair contractor and technical personnel to advertise his firm's business by means of misleading terms and false representations. The hope of evil gains is the beginning of business downfall; casia

d) Unfair competition is a disservice to the service industry. A service and repair contractor and technical personnel should therefor refrain from such practices;

e) A service and repair contractor and any technical personnel employed or engaged in the service and repair industry should be fair and just to his employees and subcontractors. A fair deal begets an efficient service in one's business. Their welfare should be considered with sympathy and understanding and acd

f) Any attempt to supplant a `fellow' service and repair contractor who is in the employ of the owner or to prevent a contractor of service or to repair from undertaking that which the owner has engaged him do is a practice that is observed to the honor and dignity of service industry.

TITLE XIX

Effectivity

SECTION 1. Effectivity. — These rules and regulations take effect after seven (7) days following their publication in at least two (2) newspapers of general circulation in the Philippines.

January 1, 1979