How to Apply Certificate of Public Convenience (CPC) in LTFRB

As public transportation vehicles increase in number, various regulations and acronyms are implemented govern the industry, each playing a pivotal role in ensuring safety, efficiency, and compliance. One such acronym that holds significant importance is CPC, which stands for Certificate of Public Convenience. This document, issued by the Land Transportation Franchising and Regulatory Board (LTFRB), serves as a cornerstone in the management and operation of public utility vehicles (PUVs) in many countries, including the Philippines.

In this guide, we’ll look into the LTFRB’s CPC, along with the procedures and prohibitions associated with securing and using CPCs. 

What is Certificate of Public Convenience (CPC)?

A Certificate of Public Convenience (CPC) is a legal authorization granted by the LTFRB to individuals or entities seeking permission to operate public transportation services. This certificate essentially gives the holder the right to transport passengers or cargo along specific routes using designated vehicles.

The Purpose of CPC

The primary objective of the CPC is to regulate and control the provision of public transportation services, ensuring that operators adhere to specific standards and guidelines set by the government. By obtaining a CPC, operators commit to meeting safety standards, maintaining their vehicles, and providing reliable services to the public.

Requirements

As stipulated in Section 16(a), Chapter II of the Public Service Act (C.A. No. 146, as amended), the issuance of a certificate is contingent upon the fulfillment of the following prerequisites: 

1. The applicant must be a citizen of the Philippines, or a corporation, co-partnership, association, or joint-stock company formed under Philippine law, with at least 60 percent of its stock or paid-up capital owned by Filipino citizens.

2. The applicant must demonstrate financial capability to undertake the proposed service and fulfill the responsibilities associated with its operation.

3. The applicant must provide evidence that the operation of the proposed public service and the authorization to conduct business will serve the public interest in a proper and suitable manner.

How to Apply for a CPC in LTFRB

The process of obtaining a CPC involves several steps, starting with the submission of a formal application to the LTFRB.

  1. Start by Preparing Your Application: Gather essential details including your personal information, the type of transportation service you plan to offer, proposed routes, and the list of vehicles to be used. These details will constitute your formal application to the LTFRB. Download the application form here – https://ltfrb.gov.ph/wp-content/uploads/2017/10/A.-NEW-CERTIFICATE-OF-PUBLIC-CONVENIENCE-CPC.pdf
  2. Submit Your Application: Once you have collated all necessary information, submit your application to the LTFRB. The board will commence a comprehensive evaluation of your application, assessing various aspects such as the requirement of additional transportation services in your proposed area and your capability to cater to this demand.
  3. Await Application Approval: Following a thorough review, if your application meets all the criteria, the LTFRB will give its approval.
  4. Receive Your CPC: Upon approval, you will be granted a CPC. This certificate will enumerate the authorized routes for operation and the number of operating units permitted.
  5. Comply with CPC Terms and Conditions: Lastly, it’s essential to strictly abide by all terms and conditions outlined in your CPC to ensure continuous compliance with all regulatory standards.

Reminder: Once your application is approved, you will receive a CPC specifying the authorized routes and the number of units allowed to operate. To stay compliant with regulatory requirements, it’s crucial to strictly adhere to the terms and conditions outlined in the CPC.

CPC Filing Fees

  • Filing Fee:
    • Php 510.00 first two (2) units
    • Php 70.00 per unit in excess of two (2) units
  • Unit Verification Fee: Php 40.00 per unit
  • Inspection Fee:
    • Php 50.00 – PUV (with gross weight not exceeding 4,500 kg) per unit
    • Php 100.00 – bus and truck per unit

Download CPC Application Form

You may download a copy of the CPC application form from the LTFRB’s official website here – https://ltfrb.gov.ph/wp-content/uploads/2017/10/A.-NEW-CERTIFICATE-OF-PUBLIC-CONVENIENCE-CPC.pdf

The form is available for download in PDF format and can be easily filled out and submitted electronically.

Here’s a sample screenshot of the CPC application form:

Policy Guidelines for Certificate of Public Convenience Issuance

The issuance of a Certificate of Public Convenience is contingent upon the public need for the service. The presumption of public need favors the applicant, and the burden of proving the absence of need for the proposed service lies with the oppositor. Adhering to the fundamental principle that the interest of public service takes precedence, the following guidelines govern the issuance of a Certificate of Public Convenience for all transport operators:

1. Entry into the Industry

1.1 Top a Monopolized Route:

Ensure a minimum of two (2) operators in any route. Routes served by only one (1) operator must promptly open entry to at least one (1) additional operator offering the same or superior mode/type of service.

1.2 Development Route:

Authorize operators developing routes without existing authorized operators/services to provide required services. Protection of investment for up to two (2) years is granted, after which the route shall be open for entry to at least one (1) additional operator.

1.3 Established Route with Franchised Operator(s):

Allow the entry of an additional operator in a route serviced by existing authorized operators in cases such as providing a more efficient and cost-effective service, introducing quality improvements, meeting additional capacity demands, ensuring effective competition, and addressing the contumacious violation of regulations.

2. Abandonment/Withdrawal/Suspension of Service

2.1 Total or Partial Abandonment/Withdrawal/Suspension:

Operators may forfeit their certificate if they abandon/withdraw/suspend service in authorized routes for one (1) month or more.

2.2 Notice of Withdrawal/Suspension:

Operators can withdraw/suspend services if a notice is filed with the LTFRB at least fifteen (15) days before such action.

3. Vehicle Replacement/Substitution and Addition/Expansion of Service:

Existing/authorized operators may increase units through replacement, introduction of additional units, and route changes with LTFRB approval.

4. Flexibility to Operate on More Than One Route:

Provincial buses may amend authorized routing patterns, subject to LTFRB Memorandum Circular No. 91-007 conditions.

5. Terminal Sharing:

Operators should follow the development of common/public terminals adopted by Local Government Units under RA No. 7160 (Local Government Code).

6. Quality of Service:

Continuous upgrading of safety standards, including vehicle insurance cover, vehicle design, roadworthiness standards, and separate examination systems for drivers of passengers and freight public utility vehicles.

Rate and Fare Setting

Liberalize pricing to introduce price competition with quality of service, subject to prior notice and public hearing. Fares cannot be provisionally authorized without a public hearing.

A. General Structure of Rates:

Widen the existing fare range system for provincial buses and jeepneys to +20% and -25%, replacing authorized fare with an indicated or reference rate.

Determination of Financial Capability of CPC Applicant

Establish financial capability criteria for applicants with more than five (5) units, including working capital and equity investment requirements.

Technical Evaluation

Ensure roadworthy and properly maintained vehicles, meeting established physical, technical, and service standards.

Route Measured Capacity (RMC)

The RMC system is used as a guide, not a limit, in weighing franchise applications based on public need.

Video: Filipino Shares List of Requirements of Certificate of Public Convenience by LTFRB

Check out this video by a Filipino citizen who shared his experience in applying for a CPC with the LTFRB. He discusses the requirements needed for obtaining a CPC and shares tips on how to properly prepare your application. This first-hand account can serve as a helpful guide in understanding the process of obtaining a CPC and what it takes to successfully obtain one.

CPC and Public Safety

The issuance of CPC is closely linked to public safety. By controlling the number of vehicles operating on specific routes and ensuring that operators adhere to safety standards, the LTFRB aims to minimize accidents, maintain order in the transportation system, and protect the well-being of passengers.

Period of Validity of a Franchise

CPCs are valid for five (5) years from issuance.

Penalties/Sanctions

Violations or failures to comply with guidelines constitute grounds for disapproval of CPC applications, in addition to penalties under the Public Service Act and relevant rules and regulations, after due notice and hearing.

Summary

In the intricate web of regulations governing public transportation, the Certificate of Public Convenience (CPC) stands out as a critical element. It serves as both a permission slip and a commitment from operators to uphold standards, ensuring the safe and efficient movement of people and goods. Understanding the role of CPC in LTFRB is essential for both operators and passengers alike, as it shapes the landscape of public transportation and contributes to the overall well-being of communities.

How Much is the Fine for Loading Passengers on Top or Cover of Motor Vehicles? 

Allowing passengers on top of a vehicle is considered a violation of traffic regulations in the Philippines. This practice poses significant safety risks, and fines are typically imposed to deter such behavior. The specific fine amount can vary, and it is advisable to refer to the latest regulations from the Land Transportation Office (LTO) or relevant authorities for the most current information on fines and penalties for this violation. As per MMDA, the fine is PHP 150 for the first offense, another PHP 150 for the second offense, and another PHP 15- for the third offense. Keep in mind that traffic regulations may undergo changes, so it’s essential to consult official sources for the latest updates.

In the bustling streets of the Philippines, where vibrant jeepneys and tricycles weave through traffic, a concern arises regarding the safety of passengers. Loading passengers on top or covering motor vehicles has long been a practice of convenience, but it comes with a price—both in terms of safety and legal consequences. The Republic Act 4136 Section 32b specifically addresses the carrying of passengers and freight on top of vehicles, a crucial component aimed at preventing potential hazards.

Fine for Loading Passengers on Top or Cover of Motor Vehicles

Loading Passengers on Top or Cover of Motor Vehicles

Loading passengers on top or covering motor vehicles refers to the unsafe practice of allowing individuals to sit, stand, or be positioned on the roof or any exterior part of a motor vehicle. This can include people sitting on top of buses, trucks, or other types of vehicles where they are exposed to the open air without proper safety measures. This practice is hazardous as it exposes passengers to the risk of falling, accidents, and other dangers associated with being outside the enclosed space of the vehicle. To ensure the safety of passengers, many jurisdictions, including the Philippines, have regulations prohibiting and penalizing such actions.

Loading passengers on the top or covering motor vehicles poses significant safety risks. The lack of proper restraints or protective measures exposes passengers to the dangers of unpredictable road conditions, weather elements, and potential accidents. Riding on top leaves individuals vulnerable to falls, collisions, and other hazards, compromising their well-being.

Legal Implications

Recognizing the inherent dangers of such practices, the Philippine government has implemented strict regulations and imposed fines for those who violate these rules. RA 4136 Section 32b is crystal clear in its directive: No person operating a motor vehicle shall allow any passenger to ride on the cover or top of such vehicles. The provision underscores the significance of avoiding practices that could compromise the safety of passengers, recognizing the inherent risks associated with allowing individuals on top of moving vehicles. The Land Transportation Office (LTO) oversees and enforces these regulations, ensuring the safety of all commuters.

On the streets, the enforcers deployed by the Metropolitan Manila Development Authority (MMDA) tags this type of violation as Code 046, a violation pertaining to allowing passengers on top or on the cover of a vehicle.

Understanding RA 4136 Section 32b

RA 4136 Section 32b is crystal clear in its directive: no person operating a motor vehicle shall allow any passenger to ride on the cover or top of such vehicles. The provision underscores the significance of avoiding practices that could compromise the safety of passengers, recognizing the inherent risks associated with allowing individuals on top of moving vehicles.

Also Read: How to Dispute / Contest Traffic Violation Online in LTO

Provisions for Freight on Top of Trucks

While passengers are strictly prohibited from riding on top of vehicles, the law allows for the transportation of baggage or freight on the top of trucks. However, this allowance comes with conditions outlined in permits issued by the Director. These conditions primarily revolve around ensuring that the weight of the cargo does not exceed twenty kilos per square meter and is distributed in a manner that does not jeopardize passenger safety or the stability of the truck.

Safety as the Core Principle

The essence of RA 4136 Section 32b lies in prioritizing safety on the roads. By prohibiting passengers from riding on top of vehicles, the law aims to mitigate the risks associated with such practices, including potential accidents, injuries, and fatalities. Simultaneously, the provision for transporting freight on trucks emphasizes the importance of responsible distribution to maintain overall road safety.

The MMDA’s stance on the prohibition of passengers on top of vehicles is grounded in safety concerns. Loading passengers on top exposes them to heightened risks during travel, especially in situations involving sudden stops, turns, or adverse weather conditions which aligns with the broader goal of creating a safer road environment for everyone.

Enforcement and Compliance

To uphold the standards set by RA 4136 Section 32b, enforcement mechanisms play a pivotal role. Law enforcement agencies actively patrol the streets to monitor and penalize those who violate loading regulations. Authorities, including the Land Transportation Office (LTO) and the MMDA, are tasked with ensuring compliance through inspections, penalties for violations, and the issuance of permits under specific conditions. This proactive approach reinforces the commitment to creating a safe and secure environment on Philippine roads.

Penalty Fines & Violations for Toploading

Violating regulations related to loading passengers on top or covering motor vehicles can result in fines and penalties. The fines deter individuals from engaging in unsafe practices. It is crucial for both drivers and passengers to be aware of these fines to avoid legal consequences.

MMDA Violation Code Traffic Violation 1st Offense 2nd Offense 3rd Offense
046 Allowing passenger on top of the vehicle ₱150 ₱150 ₱150

For a first offense under Code 046, the penalty stands at ₱150. Surprisingly, the penalty remains the same for second and third offenses—₱150. This uniformity in penalties underscores the MMDA’s commitment to discouraging the violation, regardless of whether it’s the first or a repeated offense.

Promoting Alternatives for Safety

To address the issue at its root, authorities are also working to provide alternative solutions that prioritize safety. This may include improving public transportation infrastructure, increasing awareness of safer travel options, and investing in campaigns to discourage risky behaviors. Public awareness campaigns further educate citizens about the risks associated with loading passengers on top of motor vehicles and the corresponding fines.

Summary

While the practice of loading passengers on top or covering motor vehicles may seem like a convenient solution to limited transportation options, it poses severe risks to the safety of individuals. The fines imposed by the Philippine government aim to deter such practices and protect the well-being of all commuters. Making it into a form of violation, both for the LTO and the MMDA, serves as a reminder that road safety is a shared responsibility.

The penalties associated with allowing passengers on top of vehicles are not just financial; they underscore the need for a collective and consistent commitment to safer road practices at all times. By understanding and adhering to these regulations, drivers contribute to a harmonious and secure traffic environment, ultimately ensuring the well-being of everyone on the road.

Penalty for No Early Warning Device (EWD) Violation

In adherence to the government’s commitment to road safety, numerous regulations have been implemented over the years. One such imperative directive is the Letter of Instruction No. 229, along with its subsequent amendments, emphasizing the requirement to carry, at all times, a set of Early Warning Devices (EWD) for motor vehicle emergencies. This article delves into the significance of EWD, its specifications, and the associated fines and penalties to ensure compliance.

More than its safety benefits, especially as a preventive tool for accidents in cases of emergencies, carrying around a set of EWDs is mandated by the law, so failure to do so is considered a violation by the Land Transportation Office (LTO). Like any other traffic and driving violations, there are associated fines and penalties for drivers who fail to drag around a set of Early Warning Devices (EWDs).

no early warning device penalty lto

What is an EWD?

An Early Warning Device (EWD) on motor vehicles is a safety device designed to alert other motorists about a potential hazard or obstruction on the road. It serves as a visual indicator, especially in situations where a vehicle is stalled, disabled, or parked for an extended period, ensuring that approaching drivers can take necessary precautions and avoid accidents.

Also read: LTO Muffler Law: Sound Level Standards for Motor Vehicles

EWDs is a safety tool mandated by regulations to signal potential hazards on the road. Its triangular, highly visible design and reflective features contribute to the overall goal of preventing accidents and ensuring the safety of both the disabled vehicle and other road users.

Purpose and Usage of EWDs

The directive mandates all owners, users, or drivers of motor vehicles to carry at least one pair of EWD, consisting of one red and one yellow triangular reflectorized plate. When a vehicle is stalled, disabled, or parked for an extended period, the driver must install the EWD at least four meters away from the front and rear of the vehicle.

This precautionary measure aims to alert other motorists, mitigating the risk of accidents and ensuring overall road safety.

penalty for no early warning device in philippines

ALAMIN: Ang Early Warning Device (EWD) ay mandatory accessory para sa lahat ng sasakyan, maliban sa traysikel at motorsiklo. Ang pares ng EWD ay kailangang laging dala ng drayber at dapat maipresinta sa LTO deputized law enforcer kapag nahuli.

Ang paggamit nito ay kailangang apat (4) na metro ang layo mula sa harapan at likod ng sasakyan kung sakaling nasiraan sa kalsada o biglang huminto ang sasakyan sa lugar kung saan hindi maaaring pumarada.

KNOW THIS: The Early Warning Device (EWD) is a mandatory accessory for all vehicles, except for tricycles and motorcycles. The pair of EWDs must always be carried by the driver and must be presented to LTO deputized law enforcers when caught.

Its use must be four (4) meters away from the front and rear of the vehicle in case of a breakdown on the road or when the vehicle suddenly stops in a place where it is not possible to park.

Key Features of an EWD

Here’s a detailed explanation of key aspects related to Early Warning Devices:

Physical Characteristics

 EWDs typically take the form of triangular, collapsible reflectorized plates. These plates are often in distinct colors, commonly red and yellow, to enhance visibility. The triangular shape and reflectorized surface contribute to their effectiveness in catching the attention of other road users.

Here are some guidelines as to how they are supposed to work:

1. The EWD should be a triangular, collapsible reflectorized plate in red and yellow colors, each side measuring at least 40 cm long and 5 cm wide.

2. Visibility is paramount, even under adverse weather conditions, requiring the triangle to be visible at a distance of at least 400 meters at high beam.

3. The reflectorized triangle must lean slightly backward, ensuring maximum visibility from its sides, and its lower edge should be at least 7 cm above the road surface.

4. The EWD must weigh a minimum of 1.25 kg, concentrated at the base, designed to withstand air currents generated by fast-moving vehicles.

5. Interestingly, no specific accreditation for suppliers or brands is enforced, allowing for homemade EWD, provided they adhere to the stipulated specifications.

Visibility Requirements

EWDs are constructed to be highly visible even under adverse weather conditions or during nighttime. The triangular design ensures visibility from various angles, and the reflectorized surface enables the device to catch and reflect light, making it noticeable from a considerable distance.

Usage Requirement

The primary purpose of EWD is to be deployed when a motor vehicle is stalled, disabled, or parked for an extended period on a street, highway, or expressway.

According to regulations, the device should be installed at least four meters away from the front and rear of the vehicle to effectively warn oncoming traffic.

Legal Compliance

 In many jurisdictions, the installation of EWD on motor vehicles is a legal requirement. It is often mandated by government regulations to ensure road safety. Failure to comply with these regulations may result in fines or other penalties.

Weight and Stability

EWDs are designed to have a specific weight, typically a minimum of 1.25 kilograms, with the weight concentrated at the base. This design ensures stability, preventing the device from being easily displaced by air currents generated by passing vehicles.

Angle and Height Placement

To maximize visibility, EWDs are designed to lean slightly backward, typically at an angle ranging from five to ten degrees perpendicular to the roadway. Additionally, the lower edge of the reflectorized triangle should be a specified distance above the surface of the road.

Adherence to Specifications

 While there may be guidelines and specifications for the design and construction of EWDs, some regulations explicitly state that no accreditation for suppliers or brands is enforced. This allows for flexibility, permitting the use of homemade EWDs as long as they adhere to the specified criteria.

using early warning device ewd philippines for emergency
sample photo of using EWD in Philippines during emergency

Benefits of Having an Early Warning Device for Your Car

The installation of Early Warning Devices (EWD) on motor vehicles holds paramount importance in ensuring road safety and preventing accidents. Here are several key reasons why the implementation of EWD is crucial:

1. Accident Prevention: EWD serves as a visual alert to other motorists, signaling that a vehicle is stalled, disabled, or parked. This early warning is instrumental in preventing rear-end collisions or other accidents, especially in situations where visibility might be compromised.

2. Enhanced Visibility: The triangular, reflectorized design of EWD ensures high visibility, even under adverse weather conditions or low-light situations. This is critical for alerting approaching drivers and creating a clear indication of potential hazards on the road.

3. Compliance with Regulations: Many countries have regulations mandating the installation of EWD on motor vehicles. Adhering to these regulations not only ensures legal compliance but also contributes to the overall safety ecosystem on the roads.

4. Emergency Preparedness: EWD acts as an essential tool for emergency preparedness. In the event of a breakdown or sudden stoppage, having EWD readily available allows drivers to quickly alert others, reducing the risk of oncoming traffic-related incidents.

5. Quick Identification of Disabled Vehicles: EWD enables swift identification of disabled vehicles, allowing approaching drivers to adjust their speed and course accordingly. This minimizes the chances of sudden lane changes or abrupt stops, decreasing the likelihood of accidents.

6. Traffic Management: When vehicles are stalled or disabled, the proper use of EWD assists in efficient traffic management. It provides a clear indication to other drivers to take necessary precautions, helping to maintain a smooth flow of traffic and preventing congestion.

7. Prevention of Secondary Accidents: In situations where a vehicle is immobilized on a busy road, the use of EWD helps prevent secondary accidents. By giving ample warning to approaching drivers, the likelihood of chain-reaction collisions is reduced.

8. Standardization of Safety Measures: The specifications outlined for EWD, including size, color, and visibility requirements, contribute to standardization in safety measures. This ensures that all motor vehicles are equipped with a consistent and effective means of signaling distress.

9. Public Awareness and Education: The requirement for EWD fosters public awareness about the importance of road safety. It educates drivers about the significance of taking proactive measures to prevent accidents and emphasizes responsible behavior on the road.

10. Reduced Severity of Accidents: In scenarios where accidents cannot be entirely avoided, the early warning provided by EWD contributes to a reduction in the severity of collisions. Other drivers have more time to react and take evasive action, potentially minimizing injuries and damage.

Public Information Dissemination

Regional directors play a pivotal role in disseminating public information regarding EWD specifications, emphasizing its requirement for vehicle registration. This proactive approach ensures that motorists are well-informed about the necessity and specifications of EWD.

Fines and Penalties for No EWD LTO

1. Motor vehicles, excluding motorcycles, are ineligible for registration by the Land Transportation Office (LTO) unless equipped with the prescribed EWD.

2. Failure to install the EWD during vehicle stalling or disablement incurs a fine of P300.00, with the driver’s license being suspended for 30 days.

3. If the failure to install EWD results in an accident, the driver faces more severe consequences, including license suspension for up to two years or even revocation, contingent upon the circumstances.

4. LTO employees or officials involved in the registration of motor vehicles without the required EWD face administrative sanctions, emphasizing the accountability of those within the regulatory system.

5. Any LTO official or employee violating the provisions outlined in this circular is subject to administrative consequences, underscoring the importance of adherence to road safety regulations.

How to Install and Set up Early Warning Device on the Road

Here are the steps on how to properly install and set up an Early Warning Device (EWD) on the road:

  1. Always carry at least one pair of EWD in your motor vehicle, consisting of one red and yellow triangle.
  2. In case of a vehicle stall or disablement on the road, park your vehicle at least 4 meters away from the front and rear, and install the EWD on both sides.

Video: Importance of Emergency Warning Device

Here’s a knowledge report by UNTV about the importance of Early Warning Device to prevent road accidents and promote road safety. Watch and learn more about this mandatory vehicle requirement.

Let us all remember that a little precaution goes a long way in ensuring our safety on the road. So let’s make sure to comply with the use of Early Warning Devices and do our part in promoting a safer and more responsible driving culture.

Summary

The installation of Early Warning Devices (EWDs) on motor vehicles is not merely a regulatory obligation but a fundamental step toward fostering a safer road environment. By promoting visibility, alertness, and efficient traffic management, EWD significantly contributes to accident prevention and overall road safety.The stringent LTO regulations requiring drivers to have Early Warning Devices (EWDs) available on the motor vehicles is a testament to the agency’s continuing efforts to enhance road safety by providing clear signals to other motorists during emergencies.

Adherence to these guidelines is not only a legal requirement but also a crucial step in minimizing accidents and promoting responsible driving. Through effective public information dissemination and enforcement of fines and penalties, the government seeks to create a safer and more secure road environment for all.

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