LTFRB recommendation on 15-year age cap for trucks out this month

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ID-100307943The Land Transportation Franchising and Regulatory Board (LTFRB) will present within the month its recommendation on the proposed policy putting a limit of 15 years on the age of trucks, saying it would base the suggestion on feedback from stakeholders.

The recommendation will be submitted to the Department of Transportation and Communications (DOTC), which will announce the final verdict on whether the proposed policy will be implemented or not.

“We will make a recommendation based on position papers that we’ve received and we’ll submit it to (Transport) Secretary (Joseph Emilio) Abaya,” Atty. Winston Ginez, chairman of DOTC-attached agency LTFRB, told PortCalls on the sidelines of the induction of officers of the Confederation of Truckers Association of the Philippines (CTAP) held March 3.

The proposed policy, which provides that the age of trucks be the basis for the issuance of a certificate of public convenience, has garnered opposition from trucking and industry associations.

Truck organizations said road-worthiness, not age, should be the basis for issuing a franchise. CTAP and the Integrated North Harbor Truckers Association earlier said a second-hand refurbished truck is as good a new one.

In a position paper, CTAP said most trucks operating on the roads were purchased second hand — considering the prohibitive price of brand-new models — and are more than 15 years old.

According to truckers, if the LTFRB policy is implemented this year the industry would need more than P50 billion to replace 19,000 units suddenly deemed non-compliant and that would have to be phased out until 2019.

CTAP said it would be ironic if demand for trucks increased due to the growing economy and regional integration yet supply decreased because of the proposed LTFRB policy.

Truckers have earlier asked LTFRB for a moratorium on the planned 15-year age limit for trucks. CTAP specifically requested for a five-year moratorium, while INHTA sought a moratorium until such time that the policies and guidelines for the phase-out have been drafted and approved.

Ginez, during his speech at the CTAP officers’ induction, said LTFRB understands the policy’s effects on the economy, the ports, the government’s revenue collection, and trade.

He said he hopes a “decision will be made while I am still in LTFRB.”

As of December 2014, Ginez said around 50,000 trucks have applied for franchise at the LTFRB’s central office alone, a figure that is higher than the 11,000 applications filed before the implementation in June last year of Joint Administrative Order 2014-01, which raised penalties for colorum (operating without a franchise) vehicles.

As for determining the age of a truck, Ginez said: “It will be reckoned from the date of manufacture from the country of origin, not the year of the registration here.”

For this purpose, LTRFB, together with sister agency Land Transportation Office, in December last year came out with another joint administrative order providing guidelines for determining a motor vehicle’s year model.

Under the guidelines, a brand-new vehicle’s age will be based on the year model as indicated by the manufacturer, assembler, and importer.

The age of a rebuilt motor vehicle, on the other hand, will be determined under two categories. One is that if any of the major components (engine/chassis/body) was taken from the previously registered vehicle, the oldest component will be the basis for the year model. The other is, if any of the component used is imported, the year model will be based on either the engine or chassis.

For used imported motor vehicles, the year model will be identified as the year of manufacture or assembly as specified in the vehicle identification of the completely built unit.

Meanwhile, Ginez said LTFRB still provides provisional authorities to trucks applying for franchise. The provisional authority will be valid for 90 days, which Ginez said is sufficient time for LTFRB to issue a decision on whether or not to issue a franchise. – Roumina Pablo

Image courtesy of nitinut at FreeDigitalPhotos.net