CHAPTER 3

LAWS REGULATING
TRANSPORTATION COMPANIES

The Philippines has become one of the promising tourist destinations due to the
extraordinary hospitality of the Filipinos and diversity of tourist attractions in
the country.
However, one challenging aspect of promoting inbound tourism in the Philippines is
the security and safety issue. Some of the best transportation and travel
professionals are Filipinos, c.g, seafarers, pilots, drivers, flight attendants,
cruise cabin crew, aircraf mechanics, etc. Ironically, some of the worst recorded
transportation disasters and accidents are in the Philippines. This chapter will
deal with the different laws affecting the transportation sector as they are
integral in the study of tourism.
Law on Common Carriers
The primary law that governs common carriers is the Civil Code of the Philippines
as clearly implied in Article 1766 thereof which states that "in all matters not
regulated by this Code, the rights and obligations of common carriers shall be
governed by the Code of Commence and special laws."
The Law
Article 1732. Common carriers are persons, corporations, firms or occasions engaged
in the business of carrying or transporting passengers or goods or both, by land,
water, or air, for compensation, offering their services to the public.

Nature of Contract of Carriage

A contract to transport passengers is quite different in kind and degree from any
other contractual relation, and this is because of the relation which an air
carrier sustains with the public. It invites people to avail the comforts and
advantages it offers. The contract of carriage therefore, generates a relation
attended with a public duty. Neglect or malfeasance of the carrier's employees
naturally could give ground for an action for damages. 208
Responsibility of Common Carriers

The Law
Article 1733. Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the vigilance over
the goods and for the safety of the passengers transported by them, according to
all the circumstances of each case.

Article 1755. A common carrier is bound to carry the passengers safely as far as
human care and foresight can provide, using the utmost diligence of very cautious
persons, with due regard for all the circumstances.

Article 1756. In case of death of or injuries to passengers, common carriers are

presumed to have been at fault or to have acted negligently, unless they prove that
they observed extraordinary diligence as prescribed in Articles 1733 and 1755.

Article 1757. The responsibility of a common carrier for the safety of passengers
as required in Articles 1733 and 1755 cannot be dispensed with or lessened by
stipulation, by the posting of notices, by statements on tickets, or otherwise.

Liabilities of Common Carriers for the Acts of Employees and Strangers

The Law
Article 1759. Common carriers are liable for the death or injuries to passengers
through the negligence or willful acts of the former's employees, although such
employees may have acted beyond the scope of their authority or in violation of the
orders of the common carriers.
This liability of the common carrier does not cease upon proof that they exercised
the diligence of a good father of a family in the selection and supervision of
their employees.

Enforcement of Liability of Common Carriers

The liability of common carriers can be enforced on the following causes of action:
(1)In case of death or injury caused to passengers, the victim may file a case of
breach of contract of carriage or culpa contractual against the owner of the common
carrier.

(2)In case of death or injury caused to stranger or pedestrian, the victim may file
a criminal complaint against the driver of the common carrier for reckless
imprudence resulting in homicide and damage to property. The victim may also file a
civil suit against the common carrier and its driven on the ground of culpa
aquiliana or quasi-delict.
Damages Recoverable from Common Carriers
In an action based on a culpa contractual or culpa aquiliana, the damages that are
recoverable are as follows: actual damages, compensatory damages, moral damages,
exemplary damages, death indemnity and attorney's fees. Nominal damages may be
awarded in case moral or exemplary damages may not be awarded.

(a)Actual damages consist in expenses for medicine, hospitalization, etc.

(b)Unrealized profits are recoverable as compensatory damages which shall be fixed

by determining in the next yearly income of the injured or deceased passenger and
multiplying the same by the number of years that he was expected to live or lead a
gainful existence as determined by mortality tables or life insurance companies of
the Philippines.
Moral damages may be awarded when the mishap resulted in the death of a
passenger,217 or when the heirs of the deceased suffered mental anguish," or when
the carrier was guilty of fraud or bad faith, even if death did not result 219 The
big amount of damages will be awarded in view of the importance of the person of
the passenger.220
(d) Exemplary or corrective damages are awarded by way of example or correction of
the public good,21 or when the common carrier acted in wanton, reckless and
oppressive manner 222 While the immediate beneficiaries of the standard of
extraordinary diligence are, of course, the passengers and owners of cargo carried
by common carrier, they are not the only persons that the law secks to benefit.
Article 2231 of the Civil Code explicitly authorizes the imposition of exemplary
damages in case of quasi- delicts "if the defendant acted with gross negligence."
(e) Award for death indemnity is in accordance with current rulings of the Court.
224
(f) Award for attorney's fees may be recovered when exemplary damages are awarded.
Under Article 2008 of the Civil Code, attorney's fees may be recovered when
exemplary damages are awarded. In the case of Metro Manila Transit Corporation v.
Court of Appeals [298 SCRA 945] (1998) it was held that an award of P50,000 as
attorney's fees is reasonable.?25
(g) In case moral damages cannot be awarded without proof of the carrier's bad
faith, ill will, malice or wanton conduct, conduct nominal damages may be allowed
under the circumstances. Nominal damages may be awarded as provided under Articles
2221 and 2222 of the Civil Code of the Philippines for the purpose of indemnifying
the victim for any loss suffered by him. Nominal damages are recoverable if no
actual, substantial, or specific damages were shown to have resulted from the
breach. The amount of such damages is addressed to the sound discretion of the
court, taking into account the relevant circumstances.226

The Law
Nature of Airline, Bus, and Shipping Tickets
The best evidence of a contract of carriage is the passage ticket.? Under
jurisprudence, an airline, bus, or shipping ticket is a contract of adhesion
considering that all the provisions thereof are prepared and drafted only by the
carrier. The only participation left of the other party is to affix his signature
thereto. In such situation, the Supreme Court ruled that the terms thereof must be
interpreted against the party who drafted the same, in this case the carrier.228

Regulation of the Transportation Business

The Department of Transportation and Communication (DOTC) is the primary policy,
planning, programming, regulating, and administrative entity of Executive branch of
government in the promotion, development, and regulation of dependable and
coordinated networks of transportation and communications systems as well as in the
fast, safe, efficient and reliable postal, transportation and communications
services (Administrative Code of 1987, Book IV, Title Xv, Sec.2).
It has the power, authority and technical expertise to determine whether or not a
specific transportation or communication project is necessary, viable, and
beneficial to the people. (Bureau Veritas v. Office of the President, 205 SCRA 705
[1992)).

Regulation of Air Transportation Business

Legislative Act No. 3909 passed by the Philippine Legislature on November
20, 1931 created an Office under the Department of Commerce and Communications to
handle aviation matters particularly the enforcement of rules and regulations
governing commercial aviation as well as private flying. It was amended by Act 3996
to include licensing of airmen and aircraft, inspection of aircraft concerning air
traffic rules, schedules and rates and enforcement of Aviation Laws.
On June 20, 1952, R.A. No.776, otherwise known as the Civil Aeronautics Act of the
Philippines was enacted which defined the powers and duties of the Civil
Aeronautics Board, personnel and the regulations of Civil Aviation. On April
4,1987,
Executive Order No. 125 was enacted creating the

Air Transportation Office.

The Civil Aeronautics Board (CAB) regulates the economic aspect of air
transportation and has general supervision and regulation of and jurisdiction and
control over air carriers as well as their property rights, equipment, facilities,
and franchise.234 It has the power to fix and determine reasonable rates, charges
or fares which an air carrier may demand, collect, or receive for any service in
connection with air commerce. 35 It also has the power to issue, deny, amend,
revise, alter, modify, cancel, suspend or revokc any temporary permit or
Certificate of Public Convenience and Necessity (CPCN). In case of foreign air
cariers, the permit shall be used with the approval of the President of the
Ropublic of the Philippines.26 It has been ruled that the Legislature has validly
delegated the CAB the authority to issue a CPCN or Temporary Operating Permit to a
prospective domestic air transport operator which does not possess a legislative
franchise to operate 237
Persons authorized to engage in domestic air transportation (air transportation
within the limits of the Philippines territory 38 shall be reserved only to
citizens of the Philippines, except as otherwise provided in the Constitution and
existing treaty or treaties.239 The term "citizen of the Philippines" means:
(a)any individual who is a citizen of the Philippines; or
(b)a partnership of which each member is much an individual; or
(c)a corporation or association created or organized under the laws of the
Philippines, of which the directing head and 2/3 or more of the Board of Directors
and other managing officers are citizens of the Philippines, and in which 60% of
the voting interest is owned or controlled by persons who are citizens of the
Philippines.240

The CAB grants the CPCN if it finds:

(a)that the applicant is fit, willing and able to perform service to the public;
and
(b)that such service is required by public convenience and necessity.241
The Air Transportation Office (ATO) is primarily charged with the technical and
operational phase of civil aviation matters.?42 It performs the following
functions:

(a) Establishes and enforces rules and regulations for the inspection and
registration of all aircraft owned and operated in the Philippines and all air
facilities;
(b) Establishes and prescribes the corresponding rules and regulations for the
enforcement of laws governing air transportation;
(c) Imposes and prescribes charges and/or rates pertinent to the operation of
public air utility facilities and services (i.e., collection of landing fees,
parking space fees, terminal fees, etc.);

(d)Administers and operates the Civil Aviation Training Center (CATC);

(e)Operates and maintains national airports, air navigation, and other similar
facilities 243
(f)Promulgates rules and rules and regulations in the interest of safety in air
commerce;
(g)Investigates aircraft accidents; and
(h)Issues, denies, cancels, or revokes any certificate, permit or license
pertaining to aircraft, airmen and air agencies.?A

Registration Aircraft
The Law
Only aircraft owned by or leased to a citizen of the Philippines, and which are not
registered under the laws of any foreign country may be eligible for registration.
• Discussion of the Law
The certificate of registration is conclusive evidence of ownership, except in a
proceeding where such ownership is in issue or when the aircraft is only under
lease.245

Regulation of the Shipping Industry

The Maritime Industry Authority (MARINA) was created on June 1, 1974
with the issuance of Presidential Decree No. 474 to integrate the development,
promotion, and regulation of the maritime industry in the country. It was
originally placed under the Office of the President. With the creation of the
Ministry (now Department) of Transportation and Communications by virtue of
Executive Order No.
546 the "MARINA" was attached to the DOTC for policy and program coordination on
July 23, 1979.
By virtue of R.A. No.9295 (May 03, 2004), MARINA has the following functions:
(1)Registers vessels;
(2)Issues certificates of public convenience or any extensions or amendments
thereto, authorizing the operation of all kinds. Classes and types of vessels in
domestic shipping: Provided, that no such certificate shall be valid for a period
of more than twenty-five (25) years;
(3)Modifies, suspends, or revokes at any time upon notice and hearing, any
certificate, license or accreditation it may have issued to any domestic ship
operator.
(4)Establish and prescribe routes, zones, or areas of operations of domestic ship
operators;
(5)Requires any domestic ship operator to provide shipping services to any coastal
area, island or region in the country where such services are necessary for the
development of the area, to meet emergency sealift requirements, or when public
interest requires;
(6)Sets safety standards for vessels in accordance with applicable conversations
and regulations;
(7)Requires all domestics with ship operators to comply with operational and safety
standards for vessels set by applicable conventions and regulations, maintain its
vessels in safe and serviceable conditions, meet the standards of safety of life at
sea manning requirements, and furnish safe, adequate, efficient, reliable and
proper service at all times;
(8)Inspects all vessels to ensure and enforce compliance with safety standards and
other times;
(9)Ensures that all documents ship operators shall have the financial capacity to
provide and sustain safe, reliable, efficient and economic passenger or cargo
service, or both;
(10)Determines the impact which any new service shall have to the locality it will
serve;
(11)Adopts and enforces such rules and regulations which will ensure compliance by
every domestic ship operator with required safety
(12)standards and other rules and regulations on vessel safety;
Adopts such rules and regulations which ensure the reasonable stability of
passengers and freight rates and, if necessary, to interview in order to protect
public interest.
(13)Hears and adjudicates any complaint made in writing involving any violation of
this law or the rules and regulations of the MARINA;
(14) Imposes such fines and penalties on, including the revocations of licenses of
any domestic ship operator who shall fail to maintain its vessels in safe and
serviceable condition, or who shall violate or fail to comply with safety
regulations;
(15)Investigates any complaint made in writing against any domestic ship operator,
or any shipper, or any group of shippers regarding any matter involving violations
of the provisions of this Act;
(16)Upon notice and hearing, imposes such fines, suspends or revokes certificates
of public convenience or other license issued, or otherwise penalizes any ship
operator, shipper or group of shippers found violating the provisions of this Act;
and
(17)Issues such rules and regulations necessary to implement the provisions of this
Act: Provided, that such rules and regulations cannot change or in any way amend or
be contrary to the intent and purpose of this Act.347

Authority to Operate
No franchise, certificate, or any other form authorization awarded by MARINA for
the carriage of cargo or passenger, or both in the domestic trade, shall be granted
except to domestic ship owners or operators.24 The term "domestic ship owner or
operator" means a citizen of the Philippines, or a commercial partnership wholly
owned by Filipinos, or a corporation at least sixty percent (60%) of the capital of
which is owned by Filipinos, which is dully authorized by the Maritime Industry
Authority (MARINA) to engage in the business of domestic shipping.249 However,
foreign vessels who may wish to engage in trade and commerce within

Philippines territorial waters may be granted a Special Permit by the MARINA when
no domestic vessels are available or suitable to provide the needed shipping
service and where public interest warrants the same.250
By reason of the deregulation of the domestic shipping industry as mandated by R.A.
No. 9295 and to encourage investments in the domestic shipping industry, domestic
ship operators are now authorized to establish their own shipping rates provided
that effective competition is fostered and public interest is served. 51

Regulation of the Land Transportation

The concept of land transportation system in the Philippines started when our
ancestors invented means of locomotion. The early means of transportation used in
moving people and goods from place to place were animals. Although the means of
land transportation during the early days were not as sophisticated as the modern
vehicles of today and the roads were not as well constructed, the early Filipinos
also observed some forms of laws to govern their mobility. These laws were as
informal as simple as specifying which animal could be used for certain purposes.
However, the existence of these rules showed that our ancestors already felt the
need to regulate the transportation system.
Today, it is the Land Transportation Office (LTO) and the Land Transportation
Franchising and Regulatory Board (LTFRB)?52 which are the agencies involved in the
regulation of the land transportation industry.
The LTO is the proper agency which controls the registration and operation of motor
vehicles and licensing of owners, dealers, conductors, drivers, and similar
matters. Under the Clean Air Act of 1999, vehicles must pass the emission testing
requirements to be administered by the Department of Transportation and
Communications as a prerequisite for registration.
On the other hand, the functions of the LTFRB are as follows:
(a)To prescribe routes of service, economically viable capacities and zones or
areas of operation of public land transportation services provided by motorized
vehicles in accordance with the public land transportation development plans and
programs approved by the Department of Transportation and Communications;
(b)To issue, amend, revise, suspend or cancel Certificates of Public Convenience or
permits authorizing the operation of public land transportation services provided
by motorized vehicles, and to prescribe the appropriate terms and conditions
therefor;

(c)To determine, prescribe, and approve and periodically review and adjust,
reasonable fares, rates and other related charges, relative to the operation of
public land transportation services provided by motorized vehicles;
(d)To issue preliminary or permanent injunction, whether prohibitory or mandatory,
in all cases in which it has jurisdiction, and in which cases the pertinent
provisions of the Rules of Court shall apply;
(e)To punish for contempt of the Board, both direct and indirect, in accordance
with the pertinent provisions of, and the penalties by, the Rules of Court;
(f)To issue subpoena duces tecum and summon witnesses to appear in any proceedings
of the Board, to administer oaths and affirmations;
(g)To conduct investigations and hearings of complaints for violation of the public
service laws on land transportation and of the Board's rules and regulations,
orders, decisions and/or rulings and to impose fines and/ penalties for such
violations;
(h)To review motu proprio the decisions/actions of the Regional Franchising and
Regulatory Office herein created;
(i)To promulgate rules and regulations governing proceedings before the Board and
the Regional Franchising and Regulatory Office: Provided, that except with respect
to paragraphs d, e, f and g hereof, the rules of procedure and evidence prevailing
in the courts of laws should not be controlling and it is the spirit and intention
of said rules that the Board and the Regional Franchising and Regulatory Offices
shall use every and all reasonable means to ascertain facts in its case speedily
and objectively and without regard to technicalities of law and procedures, all in
the interest of due process;
(j)To fix, impose and collect, and periodically review and adjust, reasonable fees
and other related charges for services rendered;
(k)To formulate, promulgate, administer, implement and enforce rules and
regulations on land transportation public utilities, standards of measurements
and/or design, and rules and regulations requiring operators of any public land
transportation service to equip, install and provide in their utilities and in
their stations such devices, equipment facilities and operating procedures and
techniques as may promote safety, protection, comfort and convenience to persons
and property in their charges as well as the safety of persons and property within
their areas of operations;

(l)To coordinate and cooperate with other government agencies and entities
concerned with any aspect involving public land transportation services with the
end in view of effecting continuing improvement of such services; and
(m)To perform such other functions and duties as may be provided by law, or as may
be necessary, or proper or incidental to the purposes and objectives of this
Executive Order.253
The LTFRB has been delegated the authority by the Legislature to fix the rates of
public services. However, this authority cannot be delegated to a common carrier, a
transport operator, or other public service.254

Accreditation of Transportation Vehicles by the

Department of Tourism
This involves the minimum requirements for the operation, establishment, and
maintenance of transportation vehicles in order to be accredited by the Department
of Tourism. Under the Tourism Act of 2009255 and the implementing Rules and
Regulations of R.A. No. 9593,256 Primary Tourism Enterprises shall be periodically
required to obtain accreditation from the DOT as to the quality of their facilities
and standard of services. Tourist transport services, whether for land, sea and air
transport exclusively or majority of its seats are for tourist use, including
airport taxis and tourist drivers, are already classified as Primary Tourism
Enterprises; hence, accreditation by the Department of Tourism is now mandatory.

Standard Requirements for Tourism Land Transport Vehicles

To the registrable, every tourist transport must be found roadworthy upon
inspection by a team from the Department of Tourism. In the case of bus or coaster,
it shall not be more than ten (10) years reckoned from the year of manufacture.
For a tourist car, it shall not be more than five (5) years reckoned from the year
of manufacture, provided however, the tourist luxury cars shall have a minimum
allowable age of ten (10) years. For this purpose, luxury cars shall refer to
passenger cars with engine displacement of not less than 2190 and which are not
locally assembled/manufactured.257 Every tourist transport shall be provided with a
left-hand drive; it shall be properly equipped with adequate air-conditioning
units; and it shall be provided or installed with at least one portable fire
extinguisher for the protection of its passengers.

For tourist buses or coasters, a public address system shall be installed. Every
tourist transport unit shall be provided with the fustid kit and an adequate supply
of emergency medicines. It shall have clean and comfortable seats, and shall have
enough legroom and sufficient storage space.
Lastly, every tourist transport operator shall provide an adequate garage and
repair shop for the maintenance of its equipment, and a parking space sufficient to
accommodate all its registered units.258
In case of original registration and/or transfer of ownership of tourist transport,
the necessary clearance from the appropriate unit of the PNP should be secured
prior to registration.259
Standard Requirements for Tourist Water Transport Vessels
There should be at least one restroom each with toilet and washing facilities for
male and female located at the passenger accommodation area. In addition, there
should be a common toilet and bath at the cabin for a long haul trip. Tissue paper,
soap, and hand/paper towel should also be provided. A receptionist should be
available to usher in guests. There should be a refreshment which should be well-
stocked at all times. In case of long-haul trips, a dining area capable of seating,
at least, one-fourth (1/4) of the total passengers at one serving should be
provided with appropriate and well-maintained furniture. There should be a
promenade or airing space at the upper deck for the exclusive use of passengers.
There should be a baggage area provided with racks or similar and safe storage in
the passenger accommodation area.
Adequate number of well-trained, well-groomed, experienced, efficient and courteous
staff should be employed. They shall wear clean uniforms at all times.
Frontline staff should have a good speaking knowledge of English.
Adequate lighting arrangement and fixtures should be installed in all levels of
vessel in accordance with the Philippine Merchant Marine Rules and Regulations.260

Standard Requirements for Tourist Air Transport

Adequate life-saving devices and adequate communication equipment should be
provided in accordance with the requirements prescribed by the ATO,261
Documents Required to Support Application to Operate as Tourist Transport
Operator
(a)Mayor's Permit and/or Municipal License
(b)Business name certificate and all amendments thereto, if any, in the case of
single proprietorship. In the case of a corporation or partnership, a certified
true copy of the Articles of Incorporation, its By-laws or Articles of Partnership
and amendments thereto, if any, duly registered with the Securities and Exchange
Commission.

(c)Proof of ownership or contract of lease over an area adequate to serve as

maintenance depot and garage for all its units (not applicable to water transport)
(d)A list of names of all officials and employees, and their respective
designations, nationalities, home address, certified correct under oath by the
general manager/president
(e)Such other papers or documents as may be required from time to time by the
Department262

For Land and Transport

(a)A copy of the LTFRB certificate of franchise or authorization for tourist
car/bus service
(b)A copy of the transportation rates as approved by LIFRB
(c)Pictures of the vehicles showing the side, back and front views thereof with the
company's name and logo imprinted at its rear and sides, respectively
(d)Such other papers or documents as may be required from time to time by the
Department

For Water Transport

(a)A copy of Certificate of Public Convenience and Necessity issued by the Maritime
Industry Authority
(b)A copy of the transportation rates as approved by the Maritime Industry
Authority
(c)Pictures of the vessel showing the side, back and front views thereof with the
company name and/or logo imprinted at its sides
(d)A copy of routes to be served and schedules
(e)Such other papers or documents as may be required from time to time by the
Department

For Air Transport

а.A copy of the CPCN issued by the CAB
b. A copy of the transportation rates as approved by the CAB

c.
d.
e. f.
Pictures of the plane showing the side, back and front views thereof with the
company's name and/or logo imprinted at its sides
List of operations and maintenance officials and personnel with their
ATO license
Copy of the routes to be served and flight schedules
Such other papers or documents as may be required from time to time by the
Department263

Accreditation of Motorized Boat/Banca Engaged in Tourism Activities and

Services
A motorized boat/banca engage in tourist services shall mean a vessel of
20 Gross Tonnage (GRT) and below engaged in providing water transport services
including sightseeing and water-related tourism activities to foreign or domestic
tourist for a fee or any form of compensation.264
For purpose of accreditation, the boat/banca should be made of good quality
materials and in accordance with the MARINA standards.
The boat/banca should be provided with the following equipment:
(a)Lifesaving and firefighting equipment and facilities;
(b)Adequate number of life vest as specified in the MARINA Certificate of
Inspection to be given to and worn by passengers upon boarding;
(c)Adequate number or required firefighting facilities in accordance with the
Philippine Merchant Marine Rules and Regulations (PMMRR); and
(d)First-aid kit with adequate supply of emergency medicines.
Adequate lighting, flashlights and radio equipment shall be provided. The
boat/banca should be provided with adequate waste bins; and there should be a short
briefing on boat rules on sale travel, proper waste disposal and other concerns
before boarding or an adequate notice thereof or brochures should be conspicuously
displayed on the motorized boat/banca are given to passengers.

The boat/banca should be manned by at least two (2) boatmen who are well-trained,
efficient, and courteous and with proper work permit/license from MARINA.
The boatmen should wear Identification Cards and clean uniform prescribed by the
Department of Tourism at all times and should provide optimum service geared on
passenger safety, comfort and convenience.

The following may apply for accreditation as motorized boat/banca engaged in

tourism activities and services:
(a)single proprietorship owned by a resident Filipino citizen;
(b)a partnership organized under the laws of the Philippines, at least 60% of its
capital being owned by Filipino citizen; and
(c)a corporation organized under the laws of the Philippines, at least 60% of the
subscribed common or voting shares of stocks of which is owned by Filipino citizens
and the composition of its Board of Directors being at least 60% Filipinos.266

The application for accreditation should be accompanied by the following

documents:
(a)In the case of single proprietorship, a Business Name Certification and all
amendments thereto duly registered with the Bureau of Trade Regulation and Consumer
Protection, Department of Trade and Industry; in case of a corporation/partnership,
a certified copy of the Articles of Incorporation/Partnership and its By-laws and
amendments thereto, duly registered with the Securities and Exchange Commission;
(b)Mayor's Permit and/or Municipal License;
(c)Resolution of the Board of Directors authorizing the filling of application and
designating the person authorized to sign and act for and in its behalf and
transact business with the Department. If single proprietorship or partnership, a
letter of authority from the owner/partners;
(d)Complete list of its officers and employees, indicating therein the nationality,
home address and position, certified correct under oath by the general
manager/president;
(e)MARINA Documents:
(a)Copy of MARINA certificate of inspection which validity shall not be less than
three (3) months from the date of filing of application with the Department; and
(b)Valid Certificate of Public Convenience (CPC Provisional
Authority (PA) Special Permit (SP).
(f)Valid copy of the Compulsory Passenger Insurance with appropriate coverage for
each passenger;
(g)Copy of rates and routes to be served and schedules; and
(h)Such other documents that the Department may require from time to time 267

Seatbelt Law
The Law
The Seatbelt was enacted to secure and safeguard its citizenry, particularly the
passengers and drivers of private and public motor vehicles, from the ruinous and
extremely injurious effects of vehicular accidents. In order of seatbelt devices by
the drivers and front seat passengers of private and public motor vehicles shall be
enforced.268

Discussion of the Law

The highlights of the law are as follows:
(1)The driver and front seat passengers of a public vehicle are required to wear or
use their seatbelt devices while inside a vehicle of running engine on any road or
thoroughfare. In addition, the driver of a public motor vehicle shall be required
to immediately inform and require the front seat passengers upon boarding a vehicle
of running engine to wear the prescribed seatbelts. Any passenger who refuses to
wear seatbelts shall not be allowed to continue his/her trip.
(2)Infants and/or children aged (6) years and below shall be prohibited to sit in
the front seat of any running motor vehicle.
(3)It shall be unlawful for any person to import or cause the importation of any
vehicle without appropriate and operational seatbelt devices.
(4)For new vehicles, compliance is required for registration.

Law on Transportation of Animals

The Law
By virtue of R.A. No.8485,269 also known as the Animal Welfare Act of 1998, it
shall be the duty of any operator of any land, air, or water public utility
transporting pets, wildlife and all the other animals to provide in all cases
adequate, clean and sanitary facilities for the safe conveyance and delivery
thereof to their consignee at the place of confinement. These animals shall be
provided sufficient food and water while in transit for more than twelve (12)
hours or whenever necessary.
No public utility shall transport any such animal without a written permit from the
Director of the Bureau of Animal Industry or his/her authorized representative. Any
form of cruelty shall be penalized even if the transporter has obtained a permit
from the Bureau of Animal Industry. Cruelty in transporting includes overcrowding,
placing animals in the trunks or under the food trunks of the vehicles. 270
Discussion of the Law
In order to assure safety of passenger and crew members of aircraft or vessels, it
is necessary to obtain a shipping permit from the Bureau of Ouarantine before an
animal may be allowed to be transported on board.27 The Bureau of Quarantine has
required the following documents as certified by a licensed veterinary doctor or
veterinary clinic/hospital to be presented before shipping permit will be issued;
(a)Certified of rabies vaccination for not less than 30 days; in case of
international carriage, a certificate of *5 in 1" vaccination (parvo influenza,
lepto, deworming, distemper, and hepatitis) may also be required."
(b)For agricultural animals, a certified of clearance from the coggin test and FMD
(foot and mouth disease) test is required.
On the other hand, a person planning to bring any animal into the Philippines from
abroad must apply in writing for an import permit at the following address:
The Director, Bureau of Animals Industry Visayas Avenue, Quezon City, Philippines
Attention: Animal Health Division
A valid health and rabies certificate must be obtained from the agency concerned at
quarantine officer upon arrival at the port of disembarkation. Any pet without such
a certificate will be detained by the Bureau of Animals Industry (BAI) until
cleared.
For countries declared to be rabies-free, the rabies vaccination is waived. The
appropriate authorities in the country of origin can provide this information. For
pet fishes, in lieu of a health certificate, a prior import permit must be obtained
from the Bureau of Fisheries and Aquatic Resources (BFAR).
All animals imported into the Philippines shall be subject to such quarantine and
tests as may be prescribed by the director of animals industry and those found to
be infected with dangerous communicable animal disease shall immediately be
condemned, killed, and properly burned or buried in the presence of representative
of the Bureau of Animal Industry at the expense of the importer.

Law on Importation of Vehicles

The Law
There are relevant laws on the importation of vehicles which may be useful for the
transportation business, namely:
R.. No. 7227 allows the free flow of goods and capital within the Subic Bay
Freeport in Subic, Province of Zambales in order to attract investors to invest
their capital in a business climate with the least government intervention.
President Arrovo's Executive Order 156 prohibits the importation of used motor
vehicles into the country except:
(a)on territories that are declared Freeport Zone, such as the Subic Bay Freeport
in Subic, Province of Zambales by virtue of R.A. No. 7227.272
(b)if the vehicle is owned by a returning resident or immigrant and covered by an
authority to import issued under the Non-Dollar Importation Program;
(c)if the vehicle is for the use of an official of the diplomatic corps and
authorized to be imported by the Department of Foreign Affairs (DA); and
(d)if the vehicle falls under the category of "special purpose vehicles" such as
ambulance, fire trucks, refers, tanker trucks and crane lorries.273
Under Republic Act. No. 6537 which was enacted on August 26, 1972, or otherwise
known as the Anti-Carnapping Act of 1972, it shall be the duty of the Collector of
Customs jurisdiction of the principal port of entry where an imported motor vehicle
is unloaded to make a report of the shipment of the vehicle to the Land
Transportation Office within seven days after the arrival of the imported motor
vehicle, specifying the make, type and serial numbers of the motor vehicle engine,
engine block and chassis or body, and stating the names and addresses of the owner
or consignee thereof. If the motor vehicle engine, engine block, chassis or body
does not bear any serial number, the Collector of Customs concerned shall hold the
motor vehicle engine, engine block, chassis or body until it is numbered by the
Land Transportation Commission 274
In this regard, any person engaged in the importation of motor vehicles shall keep
a permanent record of his stocks, stating therein their type, make and serial
numbers, and the names and addresses of the persons from whom they were acquired
and the names and addresses of the persons to whom they were sold, and shall render
an accurate monthly report of his transactions in motor vehicles to the Land
Transportation Commission275
Under the Philippine Clean Air Act of 1999, any imported new or local ssembled new
motor vehicle shall not be registered at the LTO unless it complies with the
emission standards set as evidence by the Certified of the Conformity by the
Department of Environment and Natural Resources.
Under R.A. No. 8750 or known as the Seatbelts Use Act of 1999, it shall be unlawful
for any person to import or cause the importation of any vehicle without
appropriate and operational seatbelts devices.

Public Service Laws

The Law
Public service includes every person who may own, operate, manage or control in the
Philippines for hire or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and done for general business purposes, any
common carrier, railroad or street railway, traction railway, subway motor vehicle,
steamboat, or steamship line, ferries, and water craft, shipyard,
XXX 276
Unless otherwise exempt, no public service shall operate without having heen issued
a certificate of public convenience or a certificate of public convenience and
necessity.277
Discussion of the Law
Public utilities are privately owned and operated businesses whose service is
essential to the general public. They are enterprises which specially cater to the
needs of the public and conduce to their comfort and convenience. As such, public
utility services are impressed with public interest and concern. The same is true
with respect to the business of common carrier which holds such a peculiar relation
to the public interest that there is superinduced upon it the right of public
regulation when private properties are affected with public interest. 278
As mandated by law, no public service shall operate without having been issued a
certificate of public convenience (which is considered a privilege and not a
property right).

A certificate of public convenience is an authorized granted by the proper

government agency for the operation of public service for which a franchise is
required by law for public use as required by law.
The requisites before a certificate of public convenience may be granted are:
(1)The applicant must be a citizen of the Philippines, or a corporation or co.
partnership, association or join-stock company constituted and organized under the
laws of the Philippines, at least 60 percent of its stock or paid. up capital must
belong entirely to citizens of the Philippines;
(2)The applicant must be financially capable of undertaking the proposed service
and meeting the responsibilities incident to its operation; and
(3)The applicant must prove that the operation of the public service proposed and
the authorization is to do business will promote the public interest in a proper
and suitable manner. 279
The following are the government agencies which have the authority to grant a
certificate of public convenience:
(1)Civil Aeronautics Board (CAB) (R.A. No. 776) for Air Transportation;
(2)Land Transportation Franchising and Regulatory Board (LTFRB)
(Executive Order 202) for Land Transportation; and
(3) . Maritime Industry Authority (MARINA) (Presidential Decree No. 474)
for Water Transportation.

Traffic Laws
R.A. No. 4136, which is enacted on June 20, 1964 is a compilation relative to
traffic rules and regulations. Some of the highlights of the law are as follows:

Rules on Registration of Motor Vehicles

(1)No motor vehicle shall be used or operated on or upon any public highway of the
Philippines unless the same is properly registered at the LTO.
(2)Tourist bringing their own motor vehicles to the Philippines may, without
registering such motor vehicles, use the same during but not after ninety days of
their sojourn: Provided, that the motor vehicle displays the number plates for the
current year of some other country or state, and said number plates as well as the
name and address (permanent and temporary) of the owner thereof are registered in
the Land Transportation Commission prior to the operation of the motor vehicle.
(3)For public utility automobiles, application for registration shall be
accompanied by a certificate of public convenience and motor vehicles registered
shall be subject to the Public Service Law, rules and regulations.
(4)No person shall operate any motor vehicle without first procuring a license to
drive a motor vehicle for the current year, nor while such license is delinquent,
invalid, suspended or revoked. The license shall be carried by the driver at all
times when operating a motor vehicle, and shall be shown and/or surrendered for
cause and upon demand to any person with authority under this Act to confiscate the
same. An examination or demonstration to show any applicant's ability to operate
motor vehicles may also be required.
(5)No person operating any vehicle shall allow more passenger or more freight or
cargo in his vehicle than its registered capacity. No driver shall permit any
person to ride on the running board, step board, mudguard of his motor vehicle for
any purpose.
(6)Every vehicle must be provided with sufficient car accessories such as tires,
brakes, horns, headlights, taillights, stoplight, windshield wipers, mufflers and
lights when disabled for the security and safety of the motor vehicle. Under Letter
of Instruction dated December 2, 1974, every motor vehicle must have at all times
at least one (1) pair of early warning device consisting of triangular, collapsible
reflectorized plates in red or yellow colors at least 15 cm. at the base and 40 cm.
at the sides.

Restriction as to Speed
(1)Any person driving a motor vehicle on a highway shall drive the same at a
careful and prudent speed, not greater nor less than is reasonable and proper,
having due regard for the traffic, the width of the highway, and of any other
condition than the three existing; and no person shall drive any motor vehicle upon
a highway at such a speed as to endanger the life, limb and property of any person,
nor at a speed greater than will permit him to bring the vehicle to a stop within
the assured clear distance ahead.
(2)Subject to the provisions of the preceding paragraph, the rate of speed of any
motor vehicle shall not exceed the following:

R.A. No. 10916 or "An act requiring the mandatory installation of speed limiter in
public utility and certain types of vehicles" will require all covered public
transportation vehicles to have a speed limiter. Vehicles without speed limiters
before the passage of the law will have to comply within 18 months after it takes
effect. The absence of a speed limiter will not be allowed for registration or be
given a franchise permit, and the owners or operators for the vehicle will be fined
with P50,000.
Meanwhile, the driver's license will be suspended for one month and the franchise
permit for three months for the first offense. Sanctions for succeeding offenses
will be license suspension for three months and franchise suspension for six months
on top of imposed fines at the second offense; and revocation of license and
franchise suspension for at least a year, and an imposed fine for the third
offense.
Offenders caught tampering with speed limiters will be imprisoned for six to 36
months and fined with P30,000.280

Restrictions on Overtaking and Passing

The driver of a vehicle shall not drive to the left side of the center line of a
highway in overtaking or passing another vehicle proceeding in the same direction,
unless such left side is clearly visible, and is free of oncoming traffic for a
sufficient distance ahead to permit such overtaking or passing to be made in
safety.

Right of Way
(a)When two vehicles approach or enter an intersection at approximately the same
time, the driver of the vehicle on the left shall yield the right of way to the
vehicle on the right.
(b)The driver of any vehicle upon a highway, within a business or residential
district shall yield the right of way to a pedestrian crossing such highway within
a crosswalk, except at intersections where the movement of traffic is being
regulated by a peace officer or by traffic signal. Every pedestrian crossing a
highway within a business or residential district, at any point other than a
crosswalk, shall yield the right way to vehicles upon the highway.
(c)The driver of a vehicle upon a highway shall bring to a full stop such vehicle
before traversing any "through highway" or railroad crossing.
Provided, that when it is apparent that no hazard exists, the vehicle may be slowed
down to five miles per hour instead of bringing it to a full stop.

parking Prohibition
No driver shall park a vehicle, or permit it to stand, whether attended or
unattended, upon a highway in any of the following places:
(a)Within an intersection;
(b)On a crosswalk;
(c)Within six meters of the intersection of curb lines;
(d)Within four meters of the driveway entrance to and fire station;
(e)Within four meters of fire hydrant;
(f)In front of a private driveway;
(g)On the roadway side of any vehicle stopped or parked at the curb or edge of the
highway; and
(h)At any place where official signs have been erected prohibiting parking.

Driving or Parking on Sidewalk

No person shall drive or park a motor vehicle upon or along any sidewalk, path or
alley not intended for vehicular traffic or parking.
Driving and Substance Intake
No person shall drive a motor vehicle while under the influence of liquor or
narcotic drug.

Obstruction of Traffic
No person shall drive his motor vehicle in such a manner as to obstruct or impede
the passage of any vehicle, nor, while discharging or taking on passengers or
loading or unloading freight, obstruct the free passage of other vehicles on the
highway.

Duty of Driver During an Accident

In the event that any accident should occur as a result of the operation of a motor
vehicle upon a highway, the driver present, shall show his driver's license, Elve
his true name and address and also the true name and address of the owner of
the motor vehicle.

No driver of a motor vehicle concerned in a vehicular accident shall leave the

scene of the accident without aiding the victim, except under any of the following
circumstances:
1. If he is in an imminent danger of being seriously harmed by any person
or persons by reason of the accident;
2. If he reports the accidents to the nearest officer of the law; or
3. If he has to summon a physician or nurse to aid the victim

Laws Regulating Tricycles, Pedicabs, Calesas and Other Related Provisions Under the
Local Government Code of 1991

In case of regulating tricycles, pedicabs, and calesas, the local government unit
concerned, through the city or municipality, has the power to regulate the same by
virtue of the Local Government Code. Regulation of tricycles by the city or
municipality shall be subject to the guidelines prescribed by the Department of
Transportation and Communication (DOTC. 281
Limited Access Highway Act (R.A. 2000, June 22, 1957), as Amended by Executive
Order 546
Under said law, the DOTC is authorized to design any limited access facility and to
regulate, restrict, or prohibit access as to the best serve the traffic for which
such facility is intended. On February 19, 1968, Secretary Antonio V. Raquiza of
the Department of Public Works and Communications issued Administrative Order
(A) 1, which prohibited motorcycles, pedicabs, tricycles and bicycles on limited
access highways. The pertinent provisions of AO 1 read:

Subject: Revised Rules and Regulation

Governing Limited Access
Highways
By virtue of the authority granted the Secretary of Public Works and Communications
under
Section 3 of R.A. 2000, otherwise known as the Limited Access Highway Act, the
following rules and regulations governing limited access highways are hereby
promulgated for the guidance of all concerned:

group of person to:

Section 3 - On limited access highways, it is unlawful for any person or

(h) Drive any bicycle, tricycle, pedicab, motorcycle or any vehicle (not
motorized).

The use of public highways is subject to regulation as an exercise of the police

power of the state. The police power is far-reaching in scope and is the Popost
essential, insistent and illimitable" of all government powers. The tendency to
extend rather than to restrict the use of police power. The sole standard in
neasuring its exercise is reasonableness. What is "reasonable is not subject to
exact definition or scientific formulation. No all-embracing test of reasonable
exist, for its determination rests upon human judgment applied to the facts and
circumstances of each particular case. 282

Accreditation of Calesa Drivers

A resident Filipino citizen who is at least eighteen (18) years of age, physically
and mentally fit and of good moral character may apply for accreditation as a
calesa
driver.

The application for accreditation shall be accompanied by the following documents:

(a)Appropriate mayor's permit and/or municipal license;
(b)Proof that the driver has passed a seminar for calesa driver conducted by the
Department or any organization. duly authorized by the Department;
(c)Police clearance and/or barangay clearance;
(d)Certified of good health issued by a duly licensed physician and veterinarian
for the calesa driver and horse, respectively; and
(e) Other documents that the Department may require from time to time 284

For purposes of accreditation, the following are the minimum requirements

for the operation and maintenance of a calesa:
(a)Physical appearance of the carriage:
(1)The carriage shall be made of good quality materials and shall be of excellent
workmanship.
(2)It shall be neatly painted with a color/numeral markings duly prescribed or
assigned by the Department.
(3)It shall have a non-skid stepping board.
(4)It shall be clean, well-maintained, and provided with the comfortable seats.
(b)Horse - The horse shall be in good physical condition.
(c)Roadworthiness - The calesa shall be fit for operation on all publie
thoroughfares.
(d)Seating capacity - The calesa shall have a maximum load of two (2 passengers.
(e)First-Aid Kit - The calesa shall have the first-aid kit.
(f)Horse Waste Receptacle - Every calesa shall have a horse waste receptacle at the
rear end of the horse below the tail.
(g)Calesa Drivers - The drivers shall be trained, well-groomed, courteous and shall
wear the prescribed uniform and DOT ID at all times during actual operating hours
and shall provide service that is safe, comfortable and convenient as possible.
Moreover, they shall look after the welfare of their respective horses.
(h)Routes
(1)The calesa shall serve routes which are considered tourist zone belt areas and
shall not disrupt the normal flow of traffic.
(2)The service shall be limited to the boundary of the city or municipality issuing
the pertinent mayor's permit or municipal license.
(i)Fares - The calesa driver shall charge only such fares for his services as may
be approved or fixed by any competent government agency.285

Anti-Drunk and Drugged Driving Act of 2003

The Law
Sec. 5. Punishable Act. - It shall be unlawful for any person to drive a motor
vehicle while under the influence of alcohol, dangerous drugs and/or other similar
substances.
Sec. 6. Conduct of Field Sobriety, Chemical and Confirmatory Tests. - A law
enforcement officer who has probable cause to believe that a person is driving
under the influence of alcohol, dangerous drugs and/or other similar substance by
apparent indications and manifestations, including overspeeding, wearing, lane
straddling, sudden stops, swerving, poor coordination or the evident smell of
alcohol in a person's breath or signs of use of dangerous drugs and other similar
substances, shall conduct field sobriety tests.
If the driver fails in the sobriety tests, it shall be the duty of the law
enforcement officer to implement the mandatory determination of the driver's blood
alcohol concentration level through the use of a breath analyzer or similar
measuring
instrument.
If the law enforcement officer has probable cause to believe that a person is
driving under the influence of dangerous drugs andlor other similar substances, it
shall be the duty of the law enforcement officer to bring the driver to the nearest
police station to be subjected to a drug screening test and, if necessary, a drug
confirmatory test as mandated under Republic Act No. 9165.
Law enforcement officers and deputized local traffic, enforcement officers shall be
responsible in implementing this section.
Sec 7. Mandatory Alcohol and Chemical Testing of Drivers Involved in
Motor Vehicular Accidents. - A driver of a motor vehicle involved in a vehicular
accident resulting in the loss of human life or physical injuries shall be
subjected to chemical tests, including a drug screening test and, if necessary, a
drug confirmatory test as mandated under Republic Act No. 9165, to determine the
presence and or concentration of alcohol, dangerous drugs and/or similar substances
in the bloodstream or body.
Sec 8. Refusal to Subject Oneself to Mandatory Tests. - A driver of a motor vehicle
who refuses to undergo the mandatory field sobriety and drug test under Section 6,
7 and 15 of this Act shall be penalized by the confiscation and automatic
revocation of his or her driver's license, in addition to other penalties provided
herein and/or other pertinent laws 286
Discussion of the Law
On May 27, 2013, R.A. 10586, also known as the Anti-Drunk and Drugged Driving Act
of 2013, was signed into law penalizing persons driving under, the influence of
alcohol, dangerous drugs, and similar substances.
The conduct of "Field Sobriety Test" and "Chemical Test" such as drug screening
test and drug confirmatory test by law enforcement officers shall be subject to the
implementing Rules and Regulations as promulgated by the DOTC, the DOH and the
NAPOLCOM. In addition, the LTO shall conduct random terminal inspections and quick
random drug tests of public utility drivers. The cost of such tests shall be
defrayed by the LTO.

Distracted Driving
R.A. No. 10913 or "An act defining and penalizing distracted driving" will mean
that any person who is using their phones in non-emergency cases and/or needs it
for work will be penalized with a fine of P5,000 for first offense, P10,000 for
second offense, and P15,000 and suspension of license for three months for the
third offense. The law added that the fine may be increased, along with ultimately
suspending the driver's license if properly disseminated to the public. Meanwhile,
those who are driving public utility vehicles, school buses, or carriers with
flammable or toxic material within a 50-meter radius from school premises will be
fined with P30,000 and have their licenses suspended for three months.