How to Apply to Operate a Private Emission Testing Center (PETC)

Filing an application for the issuance of new authority to operate a Private Emission Testing Center (PETC) involves meeting specific qualifications, gathering required documents, and following a detailed submission process with the Department of Transportation (DOTr). Applicants must ensure their facilities meet the necessary standards and submit a range of documents, including business registrations, financial statements, and equipment certifications. Once all requirements are met and fees paid, the DOTr will then evaluate and either approve or deny the application, culminating in the issuance of a Certificate of Authorization (COA). Note that this is different from the accreditation procedures by the Land Transportation Office (LTO) for their partner testing centers.

Understanding this process is an important step for entrepreneurs looking to enter the PETC business, as it ensures compliance with regulations and contributes to environmental protection. After all, PETCs are more than just your regular business venture as it also plays a vital role in controlling vehicle emissions, helping to reduce air pollution as mandated by the Clean Air Act. By adhering to these procedures, your PETC business can operate legally and effectively, supporting public health and environmental sustainability while raking in money from car owners in need to complete emission testing procedures. 

What is a PETC? 

A Private Emission Testing Center (PETC) is a facility that tests motor vehicle emissions to ensure they meet environmental standards set by the Department of Environment and Natural Resources (DENR). These centers check the opacity and gaseous content of emissions of all kinds of motor vehicles to verify their compliance with the Clean Air Act, helping to control air pollution. PETCs are business ventures, yes, but they can be considered as essential business necessary for reducing harmful emissions from vehicles, and protecting public health and the environment.

Operating a PETC is a good business venture due to the growing number of vehicles that require annual emission testing for registration renewal. With millions of motor vehicles already on the road and the continuous demand for even more in the future, the demand for emission testing services is consistently high. Additionally, running a PETC contributes positively to environmental sustainability, making it both a profitable and socially responsible business opportunity at the same time.

How to Apply for Authority to Operate a New Private Emission Testing Center (PETC)

Operating a new PETC is a lucrative business opportunity in the Philippines, especially given the rising number of motor vehicles on the road. So, if you are looking to get into this line of business, then here’s the step-by-step process on how to file an application for the issuance of new authority to operate a PETC.

Qualifications and General Requirements

Before you begin your application, ensure that you meet the following qualifications and general requirements:

  • Eligibility
    • The applicant must be a natural person at least 18 years old or 
    • Must be a juridical person not disqualified by any existing laws or regulations to engage in vehicle emission testing activity.
  • Facility Requirements
    • The testing area should have a maneuvering area of at least 6 meters in length and width, with a minimum height of 4.5 meters.
  • Moratorium Exceptions: The nationwide moratorium under Department Order (DO) No. 2016-020 is still in effect with exceptions:

Documentary Requirements

When applying for authority to operate a new PETC business, you will need to prepare the following documents:

  • LTO Endorsement Letter (1 original)
  • LTO Acknowledgement Receipt (1 original)
  • LTO Inspection Report (1 original)
  • Accomplished Checklist by LTO (1 original)
  • Official Receipt for payment of application fee (1 original)
  • Duly accomplished application form, under oath (1 original)
  • Certified true copies of various business and registration documents depending on your business structure (e.g., DTI, SEC, CDA Certificates)
  • Certified True Copy of valid DTI Accreditation Certificate (1 original)
  • Mayor’s or Business Permit (1 photocopy)
  • BIR Registration and TIN (1 photocopy)
  • SSS Membership Certificate (1 photocopy)
  • Audited Financial Statement for the last two years or pre-operating Financial Statement (1 photocopy)
  • Certified True Copy of Transfer Certificate of Title or Lease Contract (1 original)
  • Location map and layout of the center (1 photocopy)
  • Organizational structure and list of personnel with job descriptions and qualifications (1 photocopy)
  • List of equipment and manuals (1 photocopy)
  • Manual of test procedures and personnel (1 photocopy)
  • Procedure for handling complaints (1 photocopy)
  • Certificates of Conformity and LTO-MID interface for testing equipment (1 photocopy)
  • Copy of PETC Contract with an authorized IT Service Provider (1 photocopy)
  • Photographs of the Center (1 photocopy)
  • Affidavit of Undertaking stating no interest in any PETC IT Service Provider companies (1 original)

Application Procedures

For the complete procedures and details on how to get a new authority to operate a PETC issued, please see this list:

Step 1. File Application

  • Submit your application to the concerned LTO Regional Director (RD) or Regional Evaluation and Monitoring Committee (REMC).
    • Preliminary Assessment: The application will be assessed for completeness.
    • Assign Identification Number: Your application will be assigned a unique ID.
    • Acknowledgement Receipt: You will receive an acknowledgment receipt with essential details.

Step 2. Address Deficiencies

  • Submit any missing documents or corrections within 30 days.
    • Facility Inspection: The LTO will inspect your facility.
    • Corrective Actions: Make any necessary corrections based on the inspection.

Step 3. Transmittal and Evaluation

  • Complete applications will be forwarded to the Administrative Support Staff (ASS) and evaluated.
    • Draft Certification of Authorization (COA): If approved, a COA will be drafted.
    • Final Approval/Denial: The application is submitted for final approval or denial.

Step 4. Payment of Fees

  • Pay the Authorization and other fees as per the assessment form.
    • Application Fee: PHP 3,000.00
    • Authorization Fee Per Lane: PHP 5,000.00
    • Legal Research Fund (LRF): PHP 10.00

Step 5. Issuance of Notice of Approval

  • Present proof of payment and valid identification to receive your Certificate of Authorization (COA).

Processing Time and Fees

The processing time for the application is approximately 19 days and 55 minutes. You also need to be prepared to shell out some funds for the fees, which include the following: 

  • Application fee of PHP 3,000.00, 
  • Authorization fee of PHP 5,000.00 per lane, and
  • Legal Research Fund (LRF) of PHP 10.00.

Video: Vehicle Emission Testing Center in the Philippines

In this video, you can watch as the creators behind the Youtube Channel Amazing Philippines get their vehicle checked at one of the vehicle emission testing centers in the Philippines. Watch til the end to also learn more about the costs and procedures involved in the process:

Summary

Establishing and operating a PETC is not only a profitable venture but also a significant contribution to environmental conservation. By ensuring vehicles meet emission standards, PETCs play a crucial role in reducing air pollution. For more information, contact the DOTr via the following contact information or visit their official website.

Department of Transportation (DOTr)

Office Address: The Columbia Tower, Brgy. Wack-wack, Ortigas Avenue, 1555 Mandaluyong City, Philippines
Official Website: www.dotr.gov.ph
Trunkline: 8790-8300/8790-8400