On October 01, 2013, this Board issued Memorandum Circular No. 2013- 006, Re: Mandatory Age Limit for School Transport Service, without defining the brand new units to be allowed as authorized unit in new applications for CPC.

Be it clarified that brand new unit refers to a new motor vehicle constructed entirely from new parts that are submitted to the LTO for initial registration (Department Order No. 2010-032). Brand new unit whose initial registration with the LTO covers a three year period (ex. 2012-2014) is allowed to be used in new applications for CPC or as substitute unit for phased out vehicles. Thus, a brand new unit with year model 2012 and whose initial registration covers 2012, 2013 and 2014, it may be used in a new application for CPC or as substitute unit for phased out vehicle provided that such application for new CPC or substitutions filed on or before the renewal of its registration. Refurbished, rebuilt, reconditioned and rehabilitated unit shall not be considered as brand new unit.

Furthermore, pursuant to the authority of the Board to promulgate rules and regulations in the operation of land-based public utility vehicles and as part of the Board ™s Road Safety Program, the Board hereby grants Provisional Authority to applicants for School Transport Service subject to the following conditions:

1) The application for Provisional Authority shall be filed together with the application for School Transport Service;

2) The application should include all the documentary requirements (including the valid Parent-Teacher Association or School Certification/ Endorsement Letter); 

3) The applicant should submit the corresponding Personal Passenger Accident Liability Insurance for each unit covered by the application; 

4) The applicant shall likewise pay the necessary fees for the request for provisional authority; 

5) Upon evaluation of the documents submitted the corresponding Order shall be issued by the Office where the application was filed. The provisional authority shall only be for a period of not more than THREE (3) months counting from the date the application was filed.

The issuance of the Provisional Authority does not automatically mean the granting of the Application for School Transport Service.

All other issuances or parts thereof inconsistent herewith are hereby modified, amended or superseded accordingly.

This Memorandum Circular shall take effect immediately.

SO ORDERED.

Quezon City, Philippines, July 17, 2014.

(SGD) ATTY. WINSTON M. GINEZ, CPA Chairman
(SGD) ENGR. RONALDO F. CORPUS Board Member	(SGD) ATTY. ANTONIO ENRILE-INTON, JR. Board Member
Attested by: (SGD) ATTY. ROBERTO P. CABRERA III Executive Director