MEMORANDUM CIRCULAR

NO. 2-05-88

Subject: RULES AND REGULATIONS GOVERNING THE MANUFACTURE,

ACQUISITION, SALE AND SERVICE OF RADIOCOMMUNICATION
EQUIPMENT.

Pursuant to the provisions of the Radio Control Law, Act. No. 3846, as amended,
and Executive Order No. 546, dated 23 July 1979, the following rules and regulations
governing the manufacture, acquisition, servicing and sale of radio transmitters and
transceivers in the Philippines are hereby promulgated:

1.0 PURPOSE

1.1 To update existing rules and regulations governing the manufacture.

Acquisition, sales and service or radio transmitters and transceivers and
the establishment of Radiocommunication Equipment Service Centers.

1.2 To enable the National Telecommunications Commission to monitor and

control effectively the servicing, manufacture, acquisition, sale and other
transactions involving transmitters and transceivers in the public interest.

2.0 DEFINITIONS OF TERMS

2.1 RADIO TRANSMITTER OR TRANSMITTER – A device capable of

emitting radio frequency waves or energy intended for transmission of
signals, messages or intelligence.

2.2 TRANSCEIVER – An inherent combination of a radio transmitter and

receiver.

2.3 DEALER – A person or entity engaged in the buying and selling of

transmitters and/or transceivers, including parts and accessories thereof.

2.4 MANUFACTURER – A person or entity engaged in the manufacture of

transmitters and/or transceivers, including parts and accessories thereof.

2.5 SERVICE CENTER OPERATOR - A person or entity engaged in the

repair, service or maintenance of transmitters, transceivers and other
radiocommunication equipment.

2.6 RADIOCOMMUNICATION EQUIPMENT DEALER PERMIT (REDP)

– A permit issued by the Commission authorizing the holder thereof to
engage in the acquisition, servicing, maintenance, purchase or sale of
transmitters and/or transceivers, parts and accessories thereof.
 2.7 RADIOCOMMUNICATION EQUIPMENT MANUFACTURER
PERMIT ( REMP) – A permit issued by the commission authorizing the
holder thereof to manufacture and/or assemble transmitters and
transceivers including, but not valid for solely the manufacture of parts
and accessories thereof.

2.8 RADIOCOMMUNICATION EQUIPMENT SERVICE CENTER

PERMIT (RESCP) – A permit issued by the Commission authorizing the
holder thereof to repair or service transmitters and/or transceivers and
maintain radiocommunication equipment and accessories.

2.9 PERMIT TO SELL – A permit issued by the Commission authorizing the

holder thereof to sell specific transmitter(s) or transceiver(s) to a holder of
a Permit to Purchase or to a holder of an REDP.

2.10 PERMIT TO PURCHASE – A permit issued by the Commission

authorizing the holder thereof to purchase specific transmitter(s) or
transceiver(s) from a holder of a Permit to Sell or an REDP.

2.11 PERMIT TO POSSESS – A permit issued by the Commission authorizing

the holder thereof to possess transmitter(s) or transceiver(s) as described
therein.

3.0. OPERATING GUIDELINES FOR AUTHORIZED RADIOCOMMUNICATION

EQUIPMENT DEALERS, MANUFACTURERS AND SERVICE CENTER
OPERATORS

3.1 Permitters shall, in the conduct of their respective activities in the

acquisition, repair, sales, service, promotion or marketing of transmitters
or transceivers, strictly comply with the provisions of this Circular and
other existing radio laws, rules and regulations.

3.2 Manufacturers shall take an active role in the research and development of
modern and reliable radiocommunication equipment.

3.3 The service, repair and maintenance of radiocommunication equipment

shall be done in such a manner that there shall be neither degradation of
nor deviation from their normal operation.

4.0 CATEGORIES OF RADIOCOMMUNICATION EQUIPMENT DEALERS

AND MANUFACTURERS –

Radiocommunication Equipment Dealers and Manufacturers shall be categorized

in accordance with the criteria based on capitalization, technical capability and
area of specialization to be recommended by their accredited associations for
approval of the Commission.
5.0 APPLICATIONS AND PERMITS

5.1 Permit Required – Radiocommunication Equipment Dealers,

Manufacturers and Service Centers Operators shall secure appropriate
permits from the Commission before carrying out their respective
activities.

5.2 Filing of Application – The application for the permit shall be filed together
with required supporting documents specified in the application form, with
the Commission.

5.3 General Qualifications of Applicants –

The applicant must be;

5.3.1 Filipino citizen(s), if a single proprietor or partnership or

incorporated under existing laws of the Philippines, in the case of
corporations and associations.

5.3.2 Registered with the Bureau of Domestic Trade or with the

Securities and Exchange Commission in the case of firms,
companies or associations;

5.3.3 A holder of other valid permits or licenses required by other

concerned government agencies allowing such applicant to engage
either in radiocommunication equipment dealership, manufacturing
and/or assembling or servicing; and

The application for renewal of an REMP, REDP or RESP shall be

submitted to the Commission at least sixty (60) days before its date
of expiration, provided however, that in the case of Dealers, the
applicant must have been submitting regular quarterly reports of
sales and stock to the Commission.

5.8. Issuance of a Duplicate for Lost Permit

An application for a duplicate of a permit which has been lost, mutilated

or destroyed should be submitted as soon as possible to the office of issue
together with a statement attesting to the facts related thereto. The
original of the lost permit, if found, shall be surrendered to the
Commission immediately.

5.9 Fees
 The fees to be charged for the issuance of an REDP, REMP, RESP shall
be prescribed by the Commission under a separate Memorandum Circular
covering all other fees and charges which may be updated from time to
time.

6.0 BASIC DIAGNOSTIC/TEST EQUIPMENTS AND MEASURING INSTRUMENTS

REQUIRED

6.1 For Radiocommunication Equipment Dealers or Service Centers

- Reflectometer, with ranges covering HF to UHF Bands

- Frequency Counter, HF to UHF Bands
- RF Power Meter
- VTVM or Digital Multimeter
- RF and AF Signal Generator capable of emitting 00.1uV to 5 volts across
all frequency ranges
- Oscilloscope with RF probes
- Dummy load with ranges across encountered transmitter power outputs
- RF carrier deviation meter/RF modulation meter

6.2 For manufacturers

- Reflectometer with ranges covering HF to UHF bands

- Volt-Ohm-Milliameter or multitester capable of measuring voltage,
resistance and current ranges encountered in the testing of
radiocommunication equipment.
- Frequency counter, HF to UHF bands
- RF power meter
- RF and AF signal generators capable of emitting 0.1uV to 5 volts across
all frequency bands
- DC micro/multimeter
- Distortion analyser
- Oscilloscope with RF probes
- Dummy antenna leads with appropriate power ranges
- Spectrum Analyzer, at least 10 KHz to 1.8 GHz frequency range
- SINAD meter

7.0 GENERAL PROVISIONS

7.1 No person or entity without a valid permit to sell, purchase, possess or sell
issued by the commission shall purchase, acquire or sell radio transmitter(s)
and/or transceiver(s).

7.2 An REDP shall be issued by the Commission only to a qualified person or

entity who is engaged primarily in the business of selling and/or acquiring
 radiocommunication equipment, but not limited to purchase, indenting,
trading, bartering or bidding.

7.3 An authorized dealer shall sell or lease only transmitters and/or transceivers
which are type approved by and duly registered with the Commission.

7.4 No dealer shall keep on stock for any person or entity any transceiver and/or
transmitter or radiocommunication equipment where were illegally acquired
or not registered with the Commission.

7.5 No person or entity who are not holders of valid Permit to Possess or REDP
issued by the Commission, shall advertise or cause to advertise in any form of
media, such as newspapers, magazines, manuals, radio television or
signboards any information leading to the supply or sale of any transmitter or
transceiver.

7.6 No dealer shall sell transmitters and/or transceivers to any person or entity
who is not a holder of a valid Permit to Purchase or REDP issued by the
Commission. Radiocommunication equipment purchased by the Military, are
however, exempted from this provision provided that such purchases from the
authorized dealers concerned are reflected in their respective periodic sales
report to the Commission.

7.7 An authorized dealer shall keep on stock at all times for two years at least one
set of critical replacement and spare parts for each type, model and make of
transmitter or transceiver sold.

7.8 Prior clearance or permit from the Commission is required before transmitters
and/or transceivers may be acquired from sources other than authorized
Radiocommunication Equipment Dealers.

7.9 A letter of authorization from the Commission is required before parts and
components for repair, construction or manufacture of type approved radio
equipment may be imported.

7.10 No person or entity shall engage commercially in the construction,

manufacture, sale or purchase of radio transmitters or transceivers or repair of
the same without a corresponding valid Permit issued by the Commission.

7.11 An authorized Radiocommunication Equipment Manufacturer shall

provide adequate production and quality control facilities and shall adhere
strictly to the standards of good engineering practice in the manufacture or
assembly of radio transmitters and transceivers and other related equipment.

7.12 All existing repair and service centers or shops engaged in the servicing,
modification and maintenance of transmitters or transceivers, shall register
 with the commission and obtain the necessary permit to operate said shops or
service centers within 180 days after promulgation of the rules and regulations
under this Circular.

7.13 It is strictly prohibited for any person to perform circuit modification of

any registered or type approved transceiver without a valid modification
permit issued therefor by the Commission.

7.14 The business and location of authorized Radiocommunication Dealers,

Manufacturer or Service Centers shall be properly identified as such by
posting conspicuously at the entrance of their respective premises sign boards
of at least 50 x 100 c,. dimension indicating clearly the registered business
name of the establishment, the kind of services offered, the name of the
permittee, and business address.

7.15 All authorized Radiocommunication Equipment Dealers, Manufacturers or

Service Centers, shall strictly honor any guarantee or warranty declared or
issued to the customer in relation to the nature of service rendered or quality
of equipment sold.

7.16 The Commission shall allow only the importation of

transmitter(s)/transceivers of models and kinds not manufactured or
assembled in the Philippines or, of any type of radio equipment already
available locally, but does not reasonably satisfy specifications required by
and-users.

8.0 LICENSE REQUIRED FOR PERSONNEL

8.1 Personnel who are directly in charge of actual test, modification, repair,
calibration and/or tuning of radio transmitters and/or transceivers must be
holders of valid First Class Radiotelephone or Radiotelegraph Commercial
Radio Operator’s Certificate.

8.2 Personnel employed by Radiocommunication Equipment Dealers,

Manufacturers or Service Centers, whose duties and responsibilities are
governed by Section 3 and 4 of Department Order No. 88, dated December
28, 1972, must be duly registered Electronics and Communication Engineers.

9.0 REQUIRED REPORTS

9.1 Stock and Sales Reports

An authorized Radiocommunication Equipment Dealer or Manufacturer shall

submit to the Commission quarterly stock and sales reports on prescribed
forms not later than seven days after the end of each quarter.
 9.2 Condemned Equipment

Transmitters and transceivers which are not in working conditions, has

become obsolete or unserviceable while in stick and no longer intended to be
sold, rebuilt, repaired or reconditioned shall be declared condemned and
manifested as such by the permittee in the quarterly report to the Commission.

10.0 SERIAL NUMBERS REQUIRED

10.1 Authorized Radiocommunication Equipment Dealers and Manufacturers

shall at all times up-date their records of available stocks according to their
models, make and serial numbers.

10.2 Blocks of serial number for current and future stocks shall be allocated to
Radiocommunication Equipment Manufacturers upon request. The serial
numbers assigned to each unit must be etched or engraved in the name plate of
each equipment bearing its type, make, and model and also in the main chassis
or frame.

10.3 No serial number shall be removed, changed or altered without prior

authority from the commission.

10.4 Transceivers or transmitters without serial numbers or with tampered

serial numbers are subject to confiscation by the Commission and the person
or entity possessing such transceiver(s) or transmitter(s) shall be prosecuted
accordingly.

11.0 REQUIREMENTS FOR THE PREVENTION OF INTERFERENCE

All tests, calibration and tuning of transmitters or transceivers with rated power
output of 150 watts or more shall be conducted with the use of dummy load
antenna inside an RF radiation proof cubicle. Tests, calibration and tuning
transmitters or transceivers with rated power output of less than 150 watts may be
done using only a dummy load antenna.

12.0 GROUNDS FOR SUSPENSION OR REVOCATION OF PERMITS

Any permit issued under these Regulations may be revoked, cancelled or

suspended for any of the following:

12.1 Violation of any provision of this Circular or any provision of the Radio
Control Law, Act 3846, as amended or other relevant international or national
laws, rules and regulations affecting the operation of permittee;

12.2 False statement in the application for Permit or in any Report required
under this Commission.
 12.3 Purchase, sale servicing and transactions involving illegally acquired radio
transmitters and/or transceivers; and

12.4 Failure to comply with any of the conditions or particulars specified in the
Permit.

13.0 PROCEDURE FOR THE SUSPENSION OR REVOCATION OF PERMITS

The Commission may suspend, cancel or revoke the permit of any authorized
dealer, manufacturer or radiocommunication servicing center found to have
violated any provision of this Circular; provided, however, that no order of
suspension, revocation or cancellation of the permit shall take place without
written notice from the Commission stating the cause for such action, served to
the respondent. The order of suspension, revocation or cancellation of the permit
shall take effect fifteen (15) days from receipt of the notice by the respondent.
Within the fifteen (15) days period from receipt of the notice, respondent may file
a written petition for the hearing of said Order to the commission. In the event
that the respondent fails to file the written petition for hearing within this
prescribed period, the order shall become final and executory.

14.0 REPEALING CLAUSE

The provisions of this Circular supersede all provisions of any memorandum

Circular and other rules and regulations inconsistent herewith.

15.0 EFFECTIVITY CLAUSE

This Circular shall take effect thirty (300 days after its publication in accordance
with law.

Quezon City, Philippines

JOSE LUIS A. ALCUAZ

Commissioner

Approved:

RAINERIO O. REYES
Secretary
Department of Transportation and Communication