Empowering The Secretary Of Trade To Regulate And Control The Operation Of Service And Repair Enterprises For Motor Vehicles, Heavy Equipment And Engines And Engineering Works; Electronics,

Case Overview and Summary

PRESIDENTIAL DECREE No. 1572

Summary:

Accreditation of Service and Repair Enterprises
- All enterprises engaged in service and repair of motor vehicles, heavy equipment, electronics, electrical, air-conditioning, refrigeration, office equipment, medical/dental equipment, and other consumer/industrial equipment must apply for accreditation with the Department of Trade within 90 days. (Section 1)
- No unaccredited enterprise shall operate or be licensed. (Section 1)

Powers and Functions of the Secretary of Trade
- Undertake research on conditions, practices, and facilities of service/repair enterprises. (Section 2a)
- Establish and enforce ethical, moral, and professional standards. (Section 2b)
- Prescribe basic requirements for setting up enterprises and accredit compliant ones. (Section 2c)
- Establish measures for professionalism and consumerism. (Section 2d)
- Investigate violations, issue subpoenas, and impose penalties. (Section 2e)
- Collect filing fees (₱50) and accreditation fees (₱100-500 for enterprises, ₱20-50 for technicians). (Section 2f)
- Utilize up to 50% of income for accreditation boards, and 10% for discretionary use. (Section 2g)
- Create or dissolve accreditation boards as necessary. (Section 2h)
- Create exempt positions and appoint personnel for implementation. (Section 2i)
- Delegate powers as needed. (Section 2j)
- Issue rules, regulations, and programs for implementation. (Section 2k)

Accreditation Boards
- Boards created for motor vehicles/heavy equipment, electronics/electrical/air-conditioning/refrigeration, office equipment, and medical/dental enterprises. (Section 3)
- Each board has 9-11 members, including the Secretary as Chairman, representing relevant associations and consumers. (Section 4)
- Members must be qualified, with recognized competence in the field. (Section 5)
- Members receive per diem compensation (up to ₱1,050 for Chairman, ₱600 for members). (Section 6)

Qualifications, Classifications, and Categories
- Accreditation based on technical competence, manpower, service area, guarantee policies, safety provisions, and insurance coverage. (Section 1, Title V)
- Classifications: electronics, electrical, air-conditioning/refrigeration, or combinations. (Section 2, Title V)
- Categories defined for each classification, specifying the types of equipment covered. (Section 3, Title V)

Service and Repair Centers
- Centers must display parent company's accreditation and follow specified activities. (Sections 1-2, Title VI)
- Centers performing additional work must apply separately. (Section 3, Title VI)

Facilities and Equipment
- Enterprises must have adequate tools and equipment for their operations, as specified. (Section 1, Title VII)
- Service/repair area must be secure and adequate for business volume. (Section D, Title VII)
- Safety equipment like fire extinguishers and storage areas required. (Section E, Title VII)

Issuance of Certificates
- Secretary issues accreditation certificates to compliant enterprises and technical personnel upon payment of fees. (Sections 1-2, Title VIII)
- Certificate is a prerequisite for operating license. (Section 3, Title VIII)

Fees
- Filing fee: ₱50 (Section 1a, Title IX)
- Accreditation fee: ₱100-500 for enterprises, based on classification (Section 1b, Title IX)
- Technician fees: ₱20-50 based on class (Section 1c, Title IX)
- Fees subject to change based on industry conditions. (Section 2, Title IX)

Application Process
- Application forms available from accreditation boards and regional offices. (Section 1, Title X)
- Applications filed with boards (Metro Manila) or regional offices (outside Metro Manila). (Section 2, Title X)
- Boards process and evaluate applications, conduct inspections, and issue certificates upon approval and fee payment. (Section 3, Title X)
- Renewal applications filed annually by January 31, with late penalty of 25%. (Section 3c, Title X)
- Reclassification allowed upon application and surrender of original certificate. (Section 5, Title X)

Display and Guarantee
- Accredited enterprises must display certificate and signboard with accreditation details. (Section 1, Title XI)
- Minimum service guarantees: 30 days for electronics, 60 days for electrical, 90 days for air-conditioning/refrigeration. (Section 1, Title XII)
- Replaced parts must be returned, and guarantee given in writing. (Sections d-e, Title XII)

Validity and Reinstatement
- Certificates valid from January 1 to December 31 of the issued year. (Section 1, Title XIII)
- Certificates may be refused, suspended, or revoked for violations, with appeal process. (Sections 1-2, Title XIV)
- Reinstatement possible upon application, fees, and for reasons of equity/justice. (Section 3, Title XIV)
- Replacement certificates issued for lost/destroyed ones, with fee for negligence cases. (Section 3, Title XIV)

Trade Practices
- Accredited enterprises can only operate within their accredited category. (Section 1, Title XVI)
- Incidental work involving other trades allowed if supplemental. (Section 2, Title XVI)
- Surviving partners can continue business upon member's death with notification. (Section 3, Title XVI)
- Disassociation of key personnel must be notified within 10 days. (Section 4, Title XVI)
- Complaints must be filed in writing and under oath. (Section 5, Title XVI)

Penalties
- Violations punishable by fines (₱100-5,000) and/or imprisonment (30 days - 1 year). (Section 1, Title XVII)
- Penalties apply to responsible individuals in case of corporations/partnerships. (Section 1, Title XVII)
- Additional penalties for aliens (deportation), naturalized Filipinos (denaturalization and deportation), and government officials (perpetual disqualification from public office). (Section 1, Title XVII)

Code of Ethics/Practices
- Code of ethics and practices adopted to guide accredited enterprises and personnel, covering principles of fairness, honesty, cooperation, ethical advertising, fair competition, and treatment of employees/subcontractors. (Section 1, Title XVIII)

Effectivity
- Rules and regulations take effect 7 days after publication in at least two newspapers of general circulation. (Section 1, Title XIX)