Filing a petition for dropping of units at the Land Transportation Franchising and Regulatory Board (LTFRB) entails submitting a formal application by a Certificate of Public Convenience (CPC) holder who seeks to discontinue the operation of specific authorized vehicles. This process involves adhering to regulatory protocols and technical specifications overseen by the LTFRB Technical Division. By initiating this petition, CPC holders formally communicate their intention to remove designated units from their fleet. Overall, the filing of such a petition signifies a change in a unit’s classification, generally from for-hire to private vehicle, effectively restricting usage and operation.
Dropping unit/s is also quite sensitive as it requires careful documentation and compliance with government regulations when filed at the LTFRB. From the LTFRB’s end, it also takes deliberate administrative actions aimed at adjusting the composition of a CPC holder’s vehicle fleet in accordance with regulatory requirements and operational considerations. That said, the process of dropping units involves highly technical procedures, causing it to take more than a couple of days to complete. In this guide, you can learn more about the steps involved in filing such a petition, including the qualifications, requirements, procedures, fees, and processing time.
What is Petition For Dropping Of Unit/s
A Petition for Dropping of Unit/s is a formal request submitted by a Certificate of Public Convenience (CPC) holder to discontinue the operation of one or more authorized units. This petition signifies the intention of the CPC holder to remove a specific vehicle or vehicles from their fleet. Simply put, if an operator decides to drop a public utility vehicle (PUV) unit, it is removed from their authorized for hire units and is generally already considered converted into a private vehicle that can only be designated for personal use. Note that dropping of unit is different from dropping and substitution of units in the sense that simply dropping a unit does not automatically make way for a new unit replacement under the same franchise.
Typically, the process of filing a petition to drop units involves intricate procedures governed by the rules set by the LTFRB, highlighting the significance of adherence to regulatory requirements and technical specifications. The petition itself can be considered as a critical transaction between the government and operators or CPC holders that it takes approximately eighteen (18) days to complete one such transaction alone. That said, the filing of this petition requires meticulous attention to detail to ensure that the dropping procedure is done in compliance with regulatory standards and that the process is completed without the agency overlooking any aspect that might cause problems or confusion in law enforcement later on.
Qualifications
All CPC Holders are eligible to file a Petition for Dropping of Unit/s.
Requirements
- Four (4) original copies of Sworn Petition/Application
- One (1) Original copy for presentation and one (1) Photocopy of Any Valid Government-Issued ID Card
- One (1) Original copy for presentation and one (1) Photocopy of Current LTO Official Receipt (OR) and Certificate of Registration (CR) of unit to be Dropped
- If not available: One (1) Original copy for presentation and one (1) Photocopy of Certified True Copy of LTO OR/CR with certificate and official receipt of payment
- One (1) Original copy for presentation and one (1) Photocopy of Surrender of Plates / Return Receipt of Plates (RRPL)
In case of lost plate:
- One (1) Original copy for presentation and one (1) Photocopy of Duly notarized Affidavit of Loss
- One (1) Original copy for presentation and one (1) Photocopy of Certificate of No Apprehension
- One (1) Original copy for presentation and one (1) Photocopy of Police Report
In case of improvised plates:
- Certification and authorization to use improvised plates
In case of non-availability of For-Hire Plate:
- Certification and authorization to use the private plates as For Hire plates pending the manufacture of the yellow plates
In case of carnapped units:
- One (1) Original copy for presentation and one (1) Photocopy of Police Report
- One (1) Original copy for presentation and one (1) Photocopy of PNP-HPG Certificate of Non-recovery of unit
- One (1) Original copy for presentation and one (1) Photocopy of Alarm Sheet
- Dark Brown Folder
For Authorized Representatives (Individual Operators)
Personal appearance of the petitioner is required. However, if not possible for petitioner to be physically present, authorized representative is allowed upon presentation of:
- One (1) Original copy for presentation and one (1) Photocopy of Duly notarized Special Power of Attorney (SPA)
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the applicant and authorized representative
For Cooperatives
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution authorizing the Dropping of the unit/s and designating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the authorized representative
For Corporation and Partnership
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution/ Secretary’s Certificate authorizing the Dropping of the unit/s and designating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the authorized representative
Procedures
For a detailed guide on how to file a petition for dropping of unit/s at the LTFRB, here are the steps to follow:
Step 1. Visit the LTFRB office closest to you.
Step 2. Get the Petition/ Application form and checklist of requirements at the Public Assistance Complaint Desk (PACD) of the ground floor of the LTFRB Main Building in East Ave., Quezon City. The form is also available for download online at the official LTFRB website.
Step 3. Submit the Verified Application/Petition along with the required supporting documents to Window 8 and 9 where it will be authenticated and checked for completeness.
Step 4. Once the application is deemed complete, the assessment of fees will be prepared and you will be issued a Payment Order Slip (POS at Window 3 (Central Office).
Step 5. Proceed to the Cashier (Door B) to make the necessary payments and wait for the Official Receipt. The fees include Filing Fee, Clearance of Accounts Fee, Legal Research Fee, Franchise Verification Fee, and Penalty Fee for non-registration of the unit.
Step 6. Submit the Petition/Application along with the Official Receipt of Payment at Window 8 and 9.
Step 7. Wait for the claim stub indicating when to claim a copy of the application/petition to be issued to you. The time in between will then be used by the Technical Division to evaluate the submitted application and requirements, draft, and recommend an Order granting/denying the Petition/Application before sending it to the board for approval and encoding at the Information Systems Management Division (ISMD).
Step 8. On the designated date, visit the LTFRB office where you filed the petition.
Step 9. Wait for your turn at the ISMD Releasing Window on the 2nd Floor.
Step 10. Once your name is called, claim the Approved or Reject Order at the Information Systems Management Division Releasing Unit.
By following these steps and ensuring all required documents are provided, all CPC holders can efficiently file a Petition for Dropping of Unit/s at the LTFRB.
Fees
When filing a petition to drop unit/s at the LTFRB, you need to make sure that you are ready to at least pay the following fees:
- Filing Fee: PHP 250.00 (for the first 2 units), PHP 70.00 per excess unit
- Clearance of Accounts Fee: PHP 50.00
- Legal Research Fee: PHP 10.00
- Franchise Verification Fee: PHP 40.00
- Penalty Fee: PHP 250.00/month/unit for non-registration of the unit (extension fee)
Processing Time
The processing time for a Petition for Dropping of Unit/s is approximately 18 days, provided that all the required documents are submitted. If there are more than one unit to drop or the required documents are incomplete, then you are in for an even longer processing time. You may even have to shell out more money as the costs may be higher as well.
Video: How to Drop Unit/s at LTFRB
For more detailed information on how to file a petition for dropping of unit/s at LTFRB as well as the requirements, procedures, and fees associated with it, you may check out this explainer video from Liway Arguelles:
Summary
Filing a Petition for Dropping of Unit/s at the LTFRB entails filing a formal application by CPC holders who are seeking to discontinue the operation of specific authorized vehicles. This procedure involves strict adherence to regulatory protocols and technical specifications under the oversight of the LTFRB Technical Division. By submitting this petition, CPC holders officially communicate their intent to remove designated units from their fleet, often resulting in a change in the unit’s classification from for-hire to private vehicle status. However, this process is sensitive and requires meticulous documentation and compliance with government regulations to ensure a smooth transition and avoid potential legal complications in the future. Additionally, the processing time for such petitions can be significant, typically spanning several days. As such, CPC holders need to be prepared for the associated fees and procedural intricacies to effectively navigate the process of dropping units at the LTFRB.
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