TAX NOTES

Mandatory accreditation of transporters of PNP-controlled chemicals

UNDER the Implementing Rules and Regulations of Republic Act 9516, controlled chemicals such as but not limited to ammonium nitrate, nitric acid, hydrogen peroxide and sodium chlorite, are considered dangerous goods, since these can be used to manufacture explosives. Therefore, for safety and security, a higher degree of due care and diligence is required when transporting this type of chemicals.

The Philippine National Police (PNP) is solely responsible for regulating and supervising possession, manufacturing, dealing, acquiring and disposing of controlled chemicals. Through PNP Memorandum Circular 2012-009, all entities that utilize controlled chemicals in whatever form, quantity, and even for commercial use, are mandatorily required to secure the appropriate licenses and permits from the PNP, including the need to secure police escort during transport thereof.

But with the growing concern on costs and procedural efficiency of stakeholders involved in using controlled chemicals for legal commercial purposes, the PNP has shifted the police escorted transport to the accredited logistics providers. The shift will unburden the PNP of depleting its human resources to better address national security; will allow the PNP to more efficiently monitor the location, direction and position of transport service vehicles through global positioning system (GPS); and will lead to a safer and more cost efficient method.

The Philippine Economic Zone Authority (Peza) supported the new directive by issuing Peza Memorandum Circular 2017-05 last April 20, 2017, emphasizing the requirement for logistics providers, brokers, forwarders, truckers, manufacturers, dealers and purchasers with company-owned vehicles, who are engaged in the transport of controlled chemicals over land using truck lorries, tractor head loading container vans and similar vehicles, to apply for accreditation with the PNP Accreditation Board.

Some of the requirements include a notarized and duly accomplished application form, personal data sheet, NBI clearance, SEC certificate of registration, business permit, notarized accountability statement, list of vehicles, list of drivers and helpers, and proof of payment for the accreditation fee.

Applicants must also submit their vehicles for inspection to verify and authenticate the registration documents, condition of the vehicles, existence of the GPS tracking device and the provision of containment, emergency equipment and markings.

Approved applicants shall be issued an accreditation certificate, which shall be valid for one year, and shall be renewed at least 30 calendar days prior to its expiration date.

Failure to comply with the guidelines set forth by law on controlled chemicals shall penalize the responsible entity with a fine of 50 percent of the approved accreditation fee for the first offense, 100 percent for the second offense and revocation of accreditation for the third offense.

Source: P&A Grant Thornton

 

As published in Sunstar Cebu dated 8 August 2017.