16/02/2020
AN EXPLANATION ON WHAT IS MEMORANDUM CIRCULAR 2019-003 AND WHAT IS THE LEGAL WAY OF USING IT?
If you will read carefully the MC 2019-003 specifically on paragraph 2 stated that in order to obviate the confusion as to type of car rental service and/or private vehicle which are exempted from securing Franchise, the board limits the application of MC 2011-008 only to those private vehicles catering the long term lease and EXCLUDE private vehicles classified as TOURIST TRANSPORT SERVICE (which Clientele may vary from time to time), Shuttle service, truck for hire and school service which are EXPLICITLY REQUIRED to secure franchise from the board and Private vehicle rented out are hereby exempted from coverage of the above-said Circular subject to the following conditions:
1. Private vehicle must be Covered by a long-term lease contract of not LESS THAN THREE (3) YEARS between the lessee and the Car rental Company/owner; and
2. The Vehicle must be exclusive used and driven by the lessee or his/her authorized representative.
The Board uses the word “EXCLUDE” and “EXPLICITLY REQUIRED” to obviate the confusion and stated also who are excluded to wit:
1. TOURIST TRANSPORT SERVICE
2. SHUTTLE SERVICE
3. TRUCK FOR HIRE
4. SCHOLL SERVICE
The real Question here the Circulating who are included as per the explanation of Mr. Joel Bolano the Chief Technical of LTFRB Central Office that those catering services directly to company and being the company as the lessee and not use in private business such us:
1. TRAVEL AND TOURS
2. CAR RENTAL COMPANY
3. OTHER BUSINESS USING THE RENTED VEHICLE FOR FEE
SCENARIO:
You will lease out your building property & you will be paid on a monthly basis on the whole property not part of it for the not less than 3 years contract.
CONCLUSIONS
Therefore MC 2019-003 or the Contract of Lease Vehicle are only for the use of The Company that not engage in Travel and Tours, Car Rental Company and other business getting a fee to its clientele. If you are Lease Contract holder from any provider, Unsolicited Advice, This the time for you think million times as per the JOINT ADMINISTRATIVE ORDER NO. 2014-01 - REVISED SCHEDULE OF FINES AND PENALTIES FOR VIOLATION OF LAWS , RULES AND REGULATIONS GOVERNING LAND TRANSPORTATION OFFICE the penalty for violating coloron are for BUS - 1Million, Trucks - Php 200,000, Jeepney Php 50,000, Vans - Php 200,000, and Sedan Php 120,000 plus the impounding Fee for 3 month.
LOOKING BACK WHERE IT BEGUN.
if you will read and study the previous issuance of the board covering the use of Contract of Lease of Vehicle it all started with Memorandum Circular 98-027 –clearly stated that the owners of all dump/Cargo trucks and other private vehicle rented out for a fee are hereby required to apply franchise from this board or its regional offices in their respective regional offices in their respective jurisdiction to legitimize their operation, MC 98-027 requiring all private vehicle including dump truck/cargo to secure franchise from the board.
Memorandum Circular 2011-008 – MC 98-027 was amended and superseded stated that Private Vehicle rented out for are fee are hereby exempted from the coverage of MC 98-027 from securing franchise from the board subject to the following conditions:
1. Private vehicle must be Covered by a long-term lease contract of between the lessee and the Car rental Company/owner; and
2. The Vehicle must be exclusive used and driven by the lessee or his/her authorized representative.
On MC 2011-008 the board stated very clearly the 2 conditions only to be able to exempted from securing franchise.
