LTFRB now accepting transfer requests for PUV franchise

The Land Transportation Franchising and Regulatory Board (LTFRB) is now accepting requests for the transfer of certificates of public convenience (CPC) for public utility vehicles (PUV).

In a statement, the LTFRB announced the release of Memorandum Circular 2023-027, or the “Guidelines on the Transfer of Certificate of Public Convenience” that essentially removes the “prohibition on the acceptance of application for sale and transfer, whether voluntary or involuntary, of CPC.”

“This way, it will be easier to distribute aid to operators such as the Pantawid Pasada or Fuel Subsidy program of the government,” it said.

The memorandum came after transport groups such as the Nagkakaisang Samahan ng mga Nangangasiwa ng Panlalawigang Bus sa Pilipinas, Inc. asked the LTFRB to review Memorandum Circular (MC) 2016-010 that prohibits the transfer of CPC to other operators.

“Operators can now easily join the Public Utility Vehicle Modernization Program (PUVMP) since they will be able to transfer and register their vehicles much faster,” it said.

Before a CPC can be transferred, the LTFRB requires some conditions such as “the CPC subject for transfer must be valid and subsisting at the time of the application,” and that “the transfer must also cover all authorized units under the subject CPC and no fractional transfer of CPC shall be allowed.”

In addition, only two transfers are allowed during the validity of a CPC “provided that no transfer shall be allowed during the first year from the grant of CPC nor during the one year prior to the expiration of the validity of the CPC.”

Previously, Memorandum Circular 2016-010 was issued to “solve the problem of commercialization of CPCs or their ‘buy-and-sell’ and operators who have abused and hijacked the franchising process by trafficking in CPCs/franchises at a huge profit instead of operating the same.”

After the review of MC 2016-010 and a series of consultative meetings, the LTFRB decided to “set aside the prohibition” and include safeguards to deter the commercialization of CPCs.PNA