CEBU, Philippines — The Land Transportation Franchising and Regulatory Board has relaxed the documentary requirements needed for securing a franchise for public utility vehicles (PUVs) on loans from banks.
The LTFRB said that it will drop the certificate of conformity (COC) requirement for franchise applications.
The Board said that the COC requirement was seen as a "frequent cause of delay or dismissal of applications” of certificate of public convenience (CPC).
Under Board Resolution 05-2023, the LTFRB removed the COC requirement, a document issued by banks or financial institutions, for new CPC applications even if the vehicle is encumbered or has outstanding financial obligations.
The Board said that all sectors will stand to benefit from the laxed requirements, particularly when their vehicles are still on loan.
The relaxed requirement is part of the agency’s commitment to comply with Republic Act 11032, also known as the "Ease of Doing Business and Efficient Government Delivery Service Act of 2018."
"In the spirit of RA 11032, which was enacted to help simplify and streamline requirements to reduce red tape in business transactions in government, we hope that removing the COC requirement in a vehicle franchise application will help ease the burden among the transacting public and give them more convenience in securing that much-needed vehicle franchise," LTFRB chairperson Teofilo Guadiz said, in a statement. — Philippine Star News Service/GMR (FREEMAN)