,

,'
•
'
, .
~

• dtI DEPARTMENT OF
(
TRADE &INDUSTRY
PHILIPPINES

DEPARTMENT ORDER NO. _48

_
Series of 2008

SUBJECT: DTI'S GENERAL ENFORCEMENT GUIDELINES FOR

TRADE AND INDUSTRY AND CONSUMER CASES

In the interest of uniformity and consistency and pursuant to the applicable

provisions of Executive Order No. 292, otherwise known as the Administrative Code of
1987, Executive Order No. 913, s. 1983 and R.A. 7394, the following guidelines are
hereby issued for the information, guidance and compliance of all DTI-authorized
enforcement personneVofficers.

SECTION 1. SCOPE. These guidelines shall govern all DTI-authorized

enforcers, either from the main office, attached agencies, regional offices or provincial
offices.

SECTION 2. COVERAGE. These guidelines shall apply to all monitoring and

enforcement activities related to the implementation of Trade & Industry Laws and the
Consumer Act of the Philippines.

SECTION 3. MONITORING DEFINED. An activity where DTI, through its

authorized enforcers, keeps track, watches, observes or checks on the goods, products,
operations or services of private business entities for the purpose of seeing to it that
these goods, products, operations or services comply with existing DTI laws and
regulations.

SECTION 4. ENFORCEMENT DEFINED. An activity or operation where DTI,

through its authorized enforcers, detects violations or possible violations of DTI laws and
regulations based on the products, goods, operations and services of private businesses
or entities.

SECTION 5. ENFORCEMENT TEAM. In order to carry out this Order/Guidelines,

enforcement teams shall be organized. There can be more than one enforcement team
per DTI Regional Office and attached agency.

Enforcement Teams shall be composed of not more than five (5) DTIIDTI-
attached agency employees to be headed by a senior DTI personnel. The team may
invite a representative from private industry association and a representative from a
consumer group to join either as observers or technical experts.

The Enforcement Team shall be issued an authorization by the head of

agencylbureau/office. Accordingly, the authority to conduct monitoring and enforcement
shall be for a specific area and duration.

O,~'"""~~
4F Industry & Investments Building, 385 Sen. Gil J. PuyatAvenue, 1200 Makati City, Philippines
Telephone: (632) 899.7450 • Fax (632) 896.1166 • E-mail: PBFavila@boLgov.ph
www.dtL gov.p h \ " ' 1
... I
1
c,.,.<cl
, I -"/
'- c
'.h· · • ".v
l ~
 • •
." . to..,

"

SECTION 6. BASES OF THE NEED TO CONDUCT MONITORING OR

ENFORCEMENT. - Monitoring and enforcement activities or operations are based
either from DTI's motu proprio mandate to conduct the same or from verified reports or
complaints either through phone call, e-mail, fax message, text message, walk-in or
mailed complaints.

SECTION 7. MANNER OR MODE OF MONITORING/ENFORCEMENT. The

team may apply any or a combination of the following modes:

a) On the spot monitoring - conducted by DTI on its own initiative

b) Report-BasedlComplaint-Based monitoring - conducted by DTI based on

report/complaint gathered or received

c) Test-buy operation - The team shall, on its own initiative or based on verified
report or complaint, buy samples of local or imported goods or products and
submit the same to government-accredited testing laboratories

d) Seizure operation - If in the course of its monitoring activity or operation, the

team chances upon non-conforming local or imported goods or products,
these goods or products may be seized, provided, an inventory duly prepared
and signed and a copy thereof be left at the subject establishment to any
employee of sufficient age and discretion.

In the conduct of monitoring and enforcement, constitutional and human rights

shall be respected.

SECTION 8. DUTIES AND RESPONSIBILITIES OF THE HEADS OF THE

DIFFERENT ENFORCEMENT TEAMS. The head of a monitoring or enforcement team
shall:

a) Review and scrutinize reports/complaints received by the team;

b) Give instructions to any of his/her members to verify said report/complaint;

c) Make an overall plan regarding the details of any operation to be undertaken

by the team and brief the team members of such plan induding the proper
conduct and courteous approach in implementing the operations plan;

d) Identify the logistics needed and ensure that the same are available during
the actual conduct of the monitoring/enforcement activity or operation;

e) See to it that all members of the team wear their valid Identification Cards
during the conduct of monitoring/enforcement activity or operation;

f) See to it that the representative of a DTI-recognized private industry and that

of a DTI-recognized consumer group are duly authorized by the entity or
group being represented and equipped with valid Identification Cards;
 • •
g) See to it the members of the team attend seminars or trainings relative to any
Trade and Industry Laws induding the Consumer Act of the Philippines,
particularly on the monitoring and enforcement thereof, once a year;

h) Sign the Incident Report prepared by hislher member;

i) Sign and issue the Notice of Violation, depending upon the circumstances.

j) Decide whether or not conforming products/goods shall be sealed in the

premises of the establishment and/or be withdrawn and placed in the DTI
designated holding area.

SECTION 9. DUTIES AND RESPONSIBILITIES OF THE MEMBERS OF THE

ENFORCEMENT TEAM. - The members of the team shall be duty bound to observe the
following:

a) To be familiarized with the different trade and indUStry laws and the Consumer
Act of the Philippines;

b) To be familiarized with laws and rules governing conducts and ethics of

government officials and employees;

c) To obey legal instructions or directives from the head of the team;

d) To immediately inform or relay to the head of the team any information or

complaint received or gathered;

e) To verify any reports or complaints received or gathered;

f) To take photographs of the premises and subject products, goods;

g) To prepare an inventory of goods/products within the period of the team's

enforcement activity or operation, have the same signed or witnessed by a
representative of the subject private business entity and leave a copy thereof to
said representative;

h) To prepare a written report of what transpired during the monitoring/enforcement

activity or operation, have it signed by the head of the team and the
representative of the subject private business entity and thereafter, submit the
same to the DTI office concerned;

SECTION 10. GENERAL ENFORCEMENT PROCEDURE. Any monitoring and

enforcement activity or operation shall be in accordance with the following procedure:

a) The Head shall get the members' input regarding the strategies and steps to be
taken by the team and come up with a detailed plan thereof;
• L'
,,.
" .. '

• •
b) The Head shall brief and give clear instructions to the members before
proceeding to the target establishment/s;

c) The team shall proceed to the target establishment/s, equipped with the
necessary documents and/or paraphernalia, such as a copy of this Order,
cameras, identification card;

d) Upon arrival at the target establishment/s, the Head shall first look for the owner
if the target establishment is a sale proprietorship or, the manager or officer-in-
charge if it's a corporation or a partnership and shall inform the latter of the
team's identities (by showing their respective I.D.s) and the purpose of their
presence therein;

e) The team shall roam around the premises and then and there observe and check
on the goods/products and/or the manner the business is being operated.

f) If based on the observation made by the team, some goods or products do not
conform to what a trade and industry law/rule or the Consumer Act/rule requires,
or the business itself does not comply with certain provisions of such laws/rules,
a Notice of Violation shall be prepared to be signed by the Head of the team and
have the same received by a representative of the establishment who is of
sufficient age and discretion. The Notice of Violation shall be addressed to the
owner/manager of a private establishment subject of monitoring and
enforcement, informing himlher that their goods/products/services/operation do
not comply with certain provisions of a specific trade and industry law or the
Consumer Act of the Philippines and that he has to explain his side within forty-
eight (48) hours from receipt of the Notice of Violation.

g) The team shall, in the presence of the representative of the establishment, make
an inventory of non-conforming or non-complying goods/products. The Head of
the team shall decide whether or not non-<:<>nforming or non-complying
goods/products be sealed in the premises of the establishment or be withdrawn
therefrom and transferred to a DTI-designated holding area.

h) A written report on what transpired during the monitoring and enforcement shall
be prepared to be signed by the Head of the team and a representative of the
establishment, and witnessed by two (2) members of the team. A duplicate copy
of the Report shall be left to the establishment's representative and the original
copy shall be submitted to the Agency DirectorlProvincial Director/Area Director
concemed within twenty-four (24) hours from the preparation thereof. However, if
the head of the team is a PO/Area Director, the report shall be submitted to the
Regional Director concemed who shall designate a technical personnel to
conduct the pre-adjudication hearing.

i) The Agency Director/Provincial Director/Area Director or the technical personnel

duly assigned by the Regional Director concerned shall conduct a hearing within
forty-eight (48) hours from receipt of the Notice of Violation, to determine whether
~.,

;
, , "
",
i 1 ,

• •
or not to file a Formal Charge against the business establishment or the owner
thereof.

SECTION 11. ENFORCEMENT PROCEDURE FOR INJURIOUS, DANGEROUS

AND UNSAFE GOODs/PRODUCTS. Whenever the team finds, by their own initiative
or by petition of a consumer, that a consumer good/product is injurious, unsafe or
dangerous, the following procedure, in addition to those provided in the preceding
section, shall apply.

a) After making the necessary inventory, all non-conforming or non-complying

goods/products shall be pulled out or withdrawn from the premises of the
establishment, or the team shall secure the same by appropriate means to
prevent loss, disappearance, or unauthorized withdrawal;

b) The owner/manager of the subject establishment shall be given forty-eight (48)

hours from notice within which to appear before the DTI provincial/area/office
concerned. The form containing this notice shall be attached to the Notice of
Violation to be signed by Head of the team;

c) The Head of the team shall prepare a recommendation on what necessary and
proper actions to do under the given circumstances to be submitted to the
Agency Director/Provincial Director/Area Director concerned and a copy of
which shall be furnished the Regional Director exercising supervision over the
said Agency Director/Provincial Director/Area Director. However, if the team is
headed by a PO/Area Director, said recommendation shall be submitted to the
technical personnel duly assigned to conduct the necessary pre-adjudication
hearing.

d) Based on the aforementioned report and recommendation, the Agency

Director/Provincial Director/Area Director shall immediately issue the necessary
Formal Charge and have it served on the respondent concerned. However, if a
PO/Area Director heads the team, the Regional shall be the one to issue and
sign the Formal Charge. The Agency Director/Provincial Director/Area Director
or duly assigned technical personnel from the DTI Regional Office shall, after
hearing the side of the respondent, exercise his/her discretion whether or not to
issue an appropriate order for the recall or prohibition from public sale or
distribution of the SUbject goods/products.

If the team's recommendation is to subject the goods/products for further

testing, the Agency Director/Provincial Director/Area Director or duly assigned
technical personnel from the DTI Regional Office shall await the result thereof
before taking the necessary action on the team's report.

e) In case an Order for the recall or prohibition is issued, all expenses incurred
relative and incidental thereto shall be borne by the Respondent.

SECTION 12. ADMISSION OF VIOLATION. If during the monitoring or

enforcement activity or operation, the owner of the goods/productslbusiness subject of
,'"
I •
"",
""'"
. ,'.
.
.,

• •
the monitoring or enforcement activity admits the violation, a report to that effect shall be
issued by the team to be affirmed by the owner by affixing hisJher signature thereon. In
such case, the Agency DirectorlProvincial DirectorfArea Director shall dispense with the
48 hour requirement and shall file the appropriate Formal Charge under DAO No.7, s.
2006. The owner of the business establishment shall be required to submit a sworn
undertaking that he/she shall abide by the decision/order to be rendered as a
consequence of his /her admission. In view thereof, the concerned Adjudication Officer
shall issue the necessary Decision/Final Order based on the Report submitted by the
Team together with such admission and other pertinent documents attached thereto and
the schedule of fines under DAO No.2, s. 2006.

SECTION 13. MOTU PROPRIO FILING OF ADMINISTRATIVE

CHARGE/ACTION. The concerned Agency DirectorlProvincial Director/Area
Director/Regional Director may commence an investigation upon petition or upon letter-
complaint from any consumer. Provided, That upon finding of a prima facie violation of a
provision or some provisions of any trade and industry laws, including the Consumer Act
of the Philippines, DTI, through any of its authorized officers, may motu proprio
commence formal administrative action against any person who appears responsible
therefor.

SECTION 14. NON-APPLICABILITY OF MEDIATION AND THE ALTERNATIVE

DISPUTE RESOLUTION (ADR) LAW. ADR includinq mediation is defined as any
process or procedure used to resolve a dispute or controversy, other than by
adjudication of a presiding judge of a court or an officer of the government agency, in
which a neutral third party participates to assist in the resolution of issues. Thus, during
monitoring or enforcement, mediation and the ADR Law do not apply since at such level
or stage, there is no dispute or controversy yet, not to mention that DTI, being the party
interested in filing a formal charge against a person apparenUy violating a DTI lawfrule
cannot be considered as a neutral third party. In connection therewith, DAO 5, s. 2007
on non-mediation of formal charges filed by the DTI Field Offices for violation/s of the
applicable trade and industry law/s under DAO 7, s. 2006, shall be with force and effect.

SECTION 15. REPEALING CLAUSE. All previous D.A.O.s and D.O.s

inconsistent herewith are hereby repealed.

SECTION 16. EFFECTIVITY. This Order/Guidelines shall take effect

immediately.

Issued this 29th day of September 2008 in Makati City.

PETER B. FAVILA
Secretary ct
.,
• •
RECOMMENDING APPROVAL:

AGLAYA
forCWTRG

A~I'~ AnY.

YJ Y}l,U}-IU'fIU~.....,...--
Director, 0 Di

AnY. VICTORIO MARIO A. DIMAGIBA ENGR. JESUS L. MOTOOMULL

Director, BTRCP Director, BPS

~
CIRILA S. BOTOR
L»-
JAIME L. OLMOS
Director, PAO Caretaker, NCAC

&~NGA
Divisio Chief, ClAP