1. Reference:

a. Presidential Decree 1866 dated 29 June 1983 as amended by Republic Act Number 8294 dated 06 July 1996 "Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition of Explosives or Instruments Used in the Manufacture of Firearms, Ammunition or Explosives and imposing Stiffer Penalties for certain Violations Thereof, and For Relevant Purposes (TAB "A"^* ).

b. Executive Order Number 256 dated 21 December 1995 revising E.O. No. 58 By Rationalizing the Fees and Charges on Firearms, Ammunition, Spare parts, Accessories, Components. Explosives, Explosives Ingredients, Pyrotechnic and Devices (TAB "B"^* ).

c. Section 878 of the Revise Administrative Code entitled Unlawful Manufacture, dealing In, Acquisition, Disposition, or Possession of Firearms, or Ammunition Therefore, or Instrument Used or Intended to be Used in the Manufacture of Firearms and Ammunition (TAB"C"*).

d. PNP Circular No. 03-2006 dated March 08, 2006 otherwise known as Export of Defense/Military Items, Commercial Firearms, Ammunition and Explosives (TAB "D"*).

e. Memorandum Circular 99-009 dated March 16, 999 entitled new Policy on Firearms and Ammunition Dealership (TAB "G"*).

f. Memorandum Circular Number 47 dated 07 November 1986 Prescribing a uniform Procedure on the Disposition of Firearms, Parts of Firearms, Ammunition, or Instruments Used in the Manufacture Thereof, and Explosives and Their Ingredients Coming From Abroad, Save Those Imported By and Belonging to the New AFP (TAB "H"*).

g. Administrative Order Number 118 dated 24 May 2005 Delegating the Authority to Approve Applications for Licenses to Manufacture or Deal In Firearms, Parts of Firearms, Ammunition or Explosives to the Secretary of Interior and Local Government (TAB "I"*).

h. Memorandum Circular, Reiterating the Policy on the Possession of High Powered Firearms (TAB "J"*).

2. Rationale.

This Circular will reduce the volume and the processing time of the request for new applications and renewal of licenses to manufacture firearms, spare parts, and accessories, ammunition and related matters. This will also reduce paper works of such nature requiring endorsement by Chief, PNP to the Secretary of the Department of the Interior and Local Government considering the latter as the final approving authority of License to Manufacture as delegated by the President of the Republic of the Philippines pursuant to the provision of reference (d) above.

3. Purpose.

This circular prescribes the procedures in the issuance of new and renewal of license to manufacture firearms, spare parts and accessories, ammunition and related items as well as the issuance of Authority to Export. Likewise, it shall also provide the provisions governing the supervision, control and monitoring of any person engaged in the business of manufacturing firearms, ammunition and other related items.

4. Definition of Terms.

a) Person - includes any individual, corporation, company, association, firm-partnership, society, or joint stock company.

b) Manufacturer - means any person engaged in the business of manufacturing firearms or ammunition and other similar items for purposes of sale or distribution.

c) License to Manufacture - License authorizing the manufacture and assembly of fire arms, ammunition, air gun, airsoft rifle/pistol, spare parts and accessories, ammunition components, rifle scope, and bullet proof vests and load and reload ammunitions.

d) Spare Parts - integral parts of a firearm that are replaceable as the need arises for its operational upgrading and physical enhancement.

e) Firearm - includes rifles, muskets, carbines, shotguns, revolvers, pistols and all other deadly weapons from which a bullet, ball, shot, shall or other missile may be discharged by means of gunpowder or other explosives. The term also includes air rifles and air pistols not classified as toys under the firearms shall be considered a complete firearm.

f) Ammunition - Refers to loaded shells for rifles, muskets, carbines, shotguns, revolvers, pistols and other firearms from which a bullet, ball, shot, shall or other missile may be fired by means of gun powder or explosives.

g) Air gun - gun that fires pellets by compressed air

h) Airsoft Rifle/Pistol - special type of airgun using plastic or rubber, pellets as its ammunition.

i) Authority to Import - Official document authorizing the importation and sales of firearms, ammunition, spare parts, accessories, raw materials, etc.

j) Authority to Export - Official document authorizing the exportation of firearms ammunition, spare parts, accessories, raw materials, etc.

k) High Powered Firearms - are defined as firearms with bore bigger than cal .38 for pistols and revolvers which include Cal. 357, Cal .40, cal .44, Cal .45, Cal .50, and cal .22 Centerfire Magnum and any caliber pistol with firing characteristics of full automatic burst and three round burst. Rifles and shotguns with bore bigger than Cal .22 and heavier than 12 gauge respectively are also classified as high powered.

5. Processing of Applications.

All License to Manufacture whether for new application or renewal shall henceforth be valid for a period of five (5) years from the date of issuance subject to the validity of their business registration. The payment to be applied shall be computed as provided for by E.0.256 multiplied by the number of years. Application for renewal thereof shall be filed at Headquarters FED, CSG, Camp Crarne, Quezon City ninety (90) days before the expiration of the License to Operate regardless of the place of business.

The following requirements/procedures are necessary in the processing of applications in addition to yearly inspection to be conducted by FED-CSQ.

a. NEW

1) Basic letter from the applicant addressed to the Chief, PNP (thru Channels) requesting issuance of a License to Manufacture Firearms, Ammo, Major FA Spare Parts and Ammo Components with the following:

a) Location plan of a shop or factory showing distance from nearest Police Headquarters (in meters).
b) Name of the Manager of the shop or factory.
c) Certification/Affidavit from the corporate Treasurer or Bank statement stat ing therein the Paid-up capital Stock of P500.000.00 as proof of capitalization.
d) Some other information the applicant wishes to convey.

2) The applicant will attach to the letter the following documents:

a) Application form duly accomplished.
b) "Detailed Location Plan" of the shop/factory.
c) Detailed pian of the vault which will be used to store finished products before deposit thereof to FED.
d) Copy of Business Registration of the firm with the Securities and Exchange Commission and/or Department of Trade and Industry
e) Copies of Articles of Inc. and By-Laws, for Corporation.
f) Original Clearances of the Manager (Chief of Police, Mayor, Prosecutor, Court), Dl Clearance and NBI Clearance.

3) Submit all papers to the Police Provincial Office (PPO) or City Director for-inspection, comment and recommendation. If the proposed manufacturing plant is located in Metropolitan Manila, the application shall be submitted to the Chief, FED, HPNP, Camp Crame, QC for processing pursuant to Sec 883 & 884 of the Revised Administrative Code.

b. RENEWAL

1) Basic letter from the applicant addressed to the Chief, PNP (thru Channels) requesting issuance of a License to Manufacture Firearms, Ammo, Major FA Spare Parts and Ammo Components.

a) Location plan of a shop or factory showing distance from nearest Police Headquarters (in meters).
b) Name of the Manager of the shop or factory.
c) Some other information the applicant wishes to convey.

2) The applicant will attach to the letter the following documents:

a) Application form duly accomplished.
b) "Detailed Location Plan" of the shop/factory.
c) Detailed plan of the vault which will be used to store finished products before deposit thereof to FED.
d) Certificate of Non-pending case from the Bureau of Working Condition, Department of Labor and Employment (DOLE)
e) Copy of Business Registration of the firm with the Securities and Exchange Commission and/or Department of Trade and Industry.
f) Copies of Articles of Inc. and By-Laws, for Corporation.
g) Clearances of the Manager from the respective Local Officials (Mayor, Court, Chief of Police), Dl Clearance and NBI Clearance.
h) Copy of expired License to Operate.
i) Transaction Report

3) Submit all papers to the Police Provincial Office (PPO) or City Director for inspection, comment and recommendation. If the proposed manufacturing plant is located in Metropolitan Manila, the application shall be submitted to the Chief, FED, HPNP, Camp Crame, QC for processing pursuant to Sec 883 & 884 of the Revised Administrative Code.

NOTE: All inspection report shall be attached with photographs (with proper captions) during the actual ocular inspection of authorized authorities in proper uniform. The photographs should show the exterior view of the manufacturing plant/factory to include the signage. It should also show the machines or equipment used in the manufacturing process, the safety vault (interior and exterior view including the locking device) where the manufactured items are stored: and the required fire fighting equipment.

c. Additionally, below are the type of Manufacturers' Licenses to Operate (LTO) that are being issued:

c.1) License to Manufacture Firearms, Ammunition and Air Munition Products for use of AFP/PNP and other law Enforcement Agencies only.
c.2) License to Manufacture Mortar Fuzes and Smoke Grenade for sale to AFP/PNP and other Law Enforcement Agencies only.
c.3) License to Manufacture Commercial Firearms and Ammunition
c.4) License to Manufacture (Load/Reload) Ammunition
c. 5) License to Manufacture Riflescopes
c.6) License to Manufacture Airguns and Airsofts Rifles/Pistols ;
c.7) License to Manufacture Buiiet Proof VestsA/Vestments (Level I to III shall be for commercial purposes while Level IV above shall be for AFP/PNP use only)
c.8) License to Manufacture Firearm Spare Parts and Accessories.
c.9) License to Manufacture Bomb Suits and Blankets

6. Importation of Firearm Parts and Ammo Components

A Licensed Manufacturer may Import firearms parts and ammo components to be used in the manufacture of firearms and ammunition. Firearms parts and ammunition components to be imported shall however be limited to the parts and components of the firearms and ammunition authorized to be manufactured as reflected in the approved License to Operate.

All imported firearm parts, ammunition components, spare parts, accessories, raw materials, etc. upon arrival and payment of taxes due on imported articles with the Bureau of Customs shall be transferred directly to the manufacturing plant for inspection, inventory and recording escorted by FED-CSG representative.

7. Exportation of Firearms, Ammunition and others

a) A licensed manufacturer of commercial and military firearms, ammunition, spare parts, accessories, etc., may upon request and approval by C, PNP export their products to countries with whom the Philippines maintain diplomatic relations. Export Authority for sample, demonstration, test and evaluation may be issued at the level of Director, CSG provided that the number of firearms shall not exceed five (5) per type of firearm and ammunition shall not exceed ten thousand (10,000) rounds per firearm.

b) The request for authority to export shall be accompanied by a Letter of Intent and End-User's Certificate of foreign buyer/importer and specific information such as the quantity & nomenclature of the articles sought for export, the purpose and the name & address of the foreign buyer/importer.

c) The export of commercial firearms, ammunition, spare parts, ammo components, etc and defense/military items shall not be allowed when such export will have an adverse effect on Philippine foreign relations with any foreign government. The request to export defense/military items shall be processed in accordance with Memorandum Circular 03-2006. The requirements of the AFP and PNP for any defense/military items sought to be exported shall have prior ity over the export of same and shall not be re-exported to any third country. The exporter shall submit a report of foreign sales under approved export application to the C, FED.

d) All manufactured firearms due for export shall be subjected for inspection by representative of FED, CSG at the manufacturing plant of the licensed manufacturer prior to its packaging.

e) All firearms and ammunition locally produced by licensed manufacturers shall be inspected by representative of FED, CSG or FESAGS for PRO'S and may be sold commercially only through licensed gun dealers licensed indentors, or exported abroad upon approval of the request.

f) The exportation of locally manufactured firearms used in trade exhibit abroad shall be returned to the Philippines after the show.

g) Other export concerns not mentioned in this section shall be in accordance with PNP Circular No. 03-2006.

8. Reloading Machines used in the manufacturing process and in the loading/reloading of ammunition shall be marked with serial number and registered with FED.

9. In consonance with the provision of Section 1 Executive Order No. 256, the two (2) major firearms parts that is the frame and barrel shall henceforth be assigned and stamped with serial number.

10. Miscellaneous Provision:

a) All manufactured firearms, ammunition, spare parts, bullet vests and rifle scopes shall be subjected to inspection by FED, CSG prior to disposal to legitimate firearm dealers or indentors as the case may be.

b) A prototype firearms shall be submitted to the FED Firearm Classification Board for the approval of its manufacturing prior to its mass production and introduction in the market to ensure quality and safety.

c) New applicants for license to manufacture, both for corporations and single proprietorship firm shall be required a paid-up capital stock of five hundred thousand pesos (P500,000.00). Acertification or affidavit of the Corporate Treasurer and Bank Statement as a proof of capitalization should be attached in the application for License to Operate.

d) Manufacturers falling under the category of R.A. 7459 otherwise known as Inventors and Invention Incentives Act of the Philippines shall be exempted from the required license fee but not for the surety bond.

e) Licensed manufacturers are not allowed to use/dispose or sell firearm parts, reloading machines, reloading components other than its intended purpose as indicated in the approved Import Authority.

f) Licensed manufacturers are not allowed to enter into sub contracting agreement with any other individual or company who has no License to Manufacture or Repair issued by FED-CSG.

g) For purposes of territoriality, Licensed Manufacturers shall only be allowed to manufacture their items only in a place stated in the approved license. In case of transfer to a new place, subsequent amendment of address in the approved License to Manufacture should be made by the licensee.

h) That at the end of each month, the licensed manufacturer shall render monthly reports to FED, CSG on the following:

1.) production report of manufactured firearm.
2.) production report of firearm parts.
3.) production report of ammunition indicating the quantities of primers, brass shells, heads/wads etc., and the amount of powder used.
4.) Sales made during the period as well as the inventory of the products and raw materials on stock.

i) That the licensed manufacturer shall post a surety bond in the amount depending on the number of firearms and other related items to be manufactured and to be approved by the Chief, PNP.

j) That any transfer of right such as outright sale, lease or delegation of right of the management and/or operation of the factory shall be subjected for the prior approval of the Chief, Philippine National Police.

k) That the factory shall be subjected to inspection by representatives of the Chief, Philippine National Police as often as necessary.

l) That violation of any conditions herein provided will be a sufficient cause for the revocation of the Company's license to manufacture.

m) That additional condition may be imposed by the Chief, Philippine National Police from time to time for the purpose of enforcing the rules and regulations governing the manufacture of firearms and ammunition.

n) That the manufacturing process shall be in accordance with the existing laws and regulations and that the movement and storage of manufactured fire-. arms and ammunition shall be under the direction of Firearms and Explosives Division (FED), Civil Security Group.

11. Administrative Sanctions:

a) There shall be an Administrative Sanction of suspension or cancellation of license depending on the gravity and nature of the offense/penalties on the following prohibited acts:

1.) Selling of ammunition to unauthorized persons, entities, security agencies, etc,
2.) Failure to maintain the basic requirement of a manufacturer such as : vault, fire fighting equipment, etc.
3.) Failure to submit monthly sales report on time.
4.) Selling of firearms intended for demonstration/test/evaluation purposes. 5.) Submission of spurious documents in the application for licenses. 6.) Other similar offenses.

b) The Inspectorate Section, Operations Branch of FED, CSG shall conduct and determine penalties on violations of the above provisions. Chief, FED shall recommend same to the C, PNP for approval.

12. The Chief, Firearms and Explosives Division may formulate supplementary: and regulations on matters not covered by this new circular.

13. Repealing Clause:

All procedures, rules and renunciations not in conformity with this new policy are hereby rescinded, amended or modified accordingly.

14. Effectivity:

This policy shall take effect immediately.

Adopted: 14 Feb. 2008

(SGD.) AVELINO I. RAZON JR.
Police Director General
Chief, PNP

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^* Not Filed with ONAR.

^* Not Filed with ONAR.