PROCESS FLOW OF APPLICATION OF PNP LICENSES AND

PROCESS FLOW OF APPLICATION OF PNP LICENSES AND PERMITS SPO 2 Rosie F Caburnay Explosives Management Division, FEO UPLB Seminar October 5, 2016

PROCESS FLOW * PNP Firearms and Explosives Office

REGULATORY AND COMMUNICATIONS PROCESS FLOW PREVIOUS REGULATORY PROCESS FLOW CURRENTLY APPROVED

HIGH RISK CONTROLLED CHEMICAL 1 Ammonium Cerium (IV) Nitrate Chemical Formula Ce(NH 4)2(NO 3)6 2 Ammonium Nitrate (NH 4)(NO 3) 6484 -52 -2 3 Fertilizer containing ≥ 70% Ammonium Nitrate 4 Ammonium perchlorate NH 4 Cl. O 4 14787 -73 -0 5 Calcium Nitrate Ca(NO 3)2 10124 -37 -5 6 Guanidinium Nitrate CH 6 N 4 O 3 506 -93 -4 7 Hydrogen Peroxide, >52% H 2 O 2 7722 -84 -1 8 Magnesium Perchlorate Mg(Cl. O 4)2 10034 -81 -8 9 Nitric Acid, >3% HNO 3 7697 -37 -2 10 Potassium Nitrate ≥ 40% KNO 3 7757 -79 -1 11 Potassium Perchlorate ≥ 40% KCIO 4 7778 -74 -7 12 Potassium Permanganate KMn. O 4 7722 -64 -7 13 Sodium Chlorate ≥ 40% Na. Cl. O 3 7775 -09 -9 14 Sodium Nitrate Na. NO 3 7631 -99 -4 15 Sodium Perchlorate ≥ 40% Na. CIO 4 7791 -07 -3 No. Chemical Name CAS Number 16774 -21 -3

LOW RISK CONTROLLED CHEMICAL No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Chemical Name Aluminum Granular/Powder Ammonium Chlorate Barium Chromate Barium Nitrate Calcium Chlorate Chromium (III) Nitrate Copper Nitrate (Cupric nitrate) Ferric (III) Nitrate Hydrogen Peroxide, 13 -52% Nickel (II) Nitrate Potassium Chlorate, <40% Potassium Nitrate, <40% Potassium Perchlorate, <40% Sodium Chlorite, >40% Sodium Perchlorate, <40% Chemical Formula Al NH 4 Cl. O 3 Ba(Cl. O 3)2 Ba. Cr. O 4 Ba(NO 3)2 Ca(Cl. O 3)2 Cr(NO 3)3 Cu(NO 3)2 Fe(NO 3)3 H 2 O 2 Ni(NO 3)2 KCl. O 3 KNO 3 KCl. O 4 Na. Cl. O 2 Na. Cl. O 4 CAS Number 7429 -90 -5 10192 -29 -7 13477 -00 -4 10294 -40 -3 10022 -31 -8 10137 -74 -3 7789 -02 -8 10031 -43 -3 (trihydrate) 782 -61 -8 7722 -84 -1 13138 -45 -9 3811 -04 -9 7757 -79 -1 7778 -74 -7 7758 -19 -2 7791 -07 -3

STREAMLINING OF PROCESSES LICENSES PUCHASER’S LICENSE (New, Amendment and Renewal) - DTI-certified small enterprises, CHED/Dep. Ed/TESDA-certified academe, DOST-certified analytical/testing laboratories, and DOH-certified hospitals - DTI-certified micro enterprises and Barangay-certified farmers. ACTIVITY TIME NO. REQUIREMENT S MANUAL AUTOMATION 3 5 DAYS 3 DAYS 2 5 DAYS 3 DAYS PNP Firearms and Explosives Office

PNP Requirements D. PURCHASER’S LICENSE (DTI-certified small enterprises, CHED/Dep. Ed/TESDA-certified academe, DOST-certified analytical/testing laboratories, and DOHcertified hospitals): 1. Duly accomplished Application Form; 2. Certification from Department of Trade and Industry (DTI) - For DTI-certified small enterprises. 3. Certification from Commission on Higher Education (CHED)/ Department of Education (Dep. Ed)/Technical Education and Skills Development Authority (TESDA) – For CHED/ Dep. Ed/TESDA-certified academe; 4. Certification from Department of Science and Technology (DOST) – For DOSTcertified analytical/testing laboratories; 5. Certification from Department of Health DOH) – For DOH-certified hospitals; 6. Proof of Payment from the Land Bank of the Philippines. PNP Firearms and Explosives Office

Thank You!

SALIENT FEATURES TITLE IMPLEMENTING RULES AND REGULATIONS ON CONTROLLED CHEMICALS PURSUANT TO SECTION 4 -C TO 4 -F OF PD NO. 1866 AS AMENDED BY R. A. NO. 9516 PNP Firearms and Explosives Office

SALIENT FEATURES Section 3. Categorization of Controlled Chemicals: § PNP Controlled Chemicals are categorized into High Risk and Low Risk. PNP Firearms and Explosives Office

SALIENT FEATURES Section 3. Categorization of Controlled Chemicals: § For reason of public order and safety, the Chief, PNP may motu proprio update the List of Controlled Chemicals and place new chemicals or mixtures under regulation, to take effect immediately, but with due regard to affected new chemicals or mixtures that are still in transit or already in circulation. Within fifteen (15) working days from effectivity, the updated list shall be endorsed to the Research and Development Team, for evaluation and determination. The Research and Development Team shall provide the Chief, PNP with the results within fifteen (15) working days from commencement of its evaluation and determination process. PNP Firearms and Explosives Office

SALIENT FEATURES Section 4. License to Manufacture, Deal and Purchase Controlled Chemicals. § Approving Authority (Licenses and Permits) APPROVING AUTHORITY KINDS OF LICENSES & PERMITS 1. 2. 3. 4. MANUFACTURER’S LICENSE – NEW DEALER’S LICENSE – NEW PERMIT TO IMPORT – MANUFACTURER & DEALER PERMIT TO EXPORT – MANUFACTURER & DEALER 1. PURCHASER’S LICENSE – NEW 2. AMENDMENT a. MANUFACTURER’S LICENSE b. DEALER’S LICENSE c. PURCHASER’S LICENSE 3. PERMIT TO IMPORT – PURCHASER 4. PERMIT TO EXPORT – PURCHASER CHIEF, PNP DIRECTOR, CSG PNP Firearms and Explosives Office

SALIENT FEATURES Section 4. License to Manufacture, Deal and Purchase Controlled Chemicals. § Approving Authority (Licenses and Permits) KINDS OF LICENSES & PERMITS APPROVING AUTHORITY 1. RENEWAL a. MANUFACTURER’S LICENSE b. DEALER’S LICENSE c. PURCHASER’S LICENSE 2. PERMIT TO PURCHASE & MOVE CONTROLLED CHEMICALS 3. PERMIT TO TRANSFER CONTROLLED CHEMICALS 4. PERMIT TO UNLOAD CONTROLLED CHEMICALS 5. SPECIAL PERMIT TO PURCHASE & MOVE CONTROLLED CHEMICALS 6. PERMIT TO TRANSPORT CONTROLLED CHEMICALS CHIEF, FEO PNP Firearms and Explosives Office

SALIENT FEATURES Section 4. License to Manufacture, Deal and Purchase Controlled Chemicals. § Filing of application for renewal of licenses – at least 60 calendar days prior to its expiration. § Graduated penalties for expired licenses – 6 months grace period § Issuance of Certificate of Good Standing PNP Firearms and Explosives Office

ADMINISTRATIVE FINES MONTH/S AFTER EXPIRATION 1 - 30 calendar days 31 -60 calendar days 61 -90 calendar days 91 -120 calendar days 121 -150 calendar days 151 -180 calendar days 181 calendar days and above SURCHARGE/PENALTY 10% of the approved fee 20% of the approved fee 30% of the approved fee 40% of the approved fee 50% of the approved fee 100% of the approved fee Cause for confiscation of all such controlled chemicals PNP Firearms and Explosives Office

Parameters for Issuance of Certificate of Good Standing Applicant must have all the qualifications and none of the disqualifications. 1. Maintained a permanent and complete record of all transactions from the inception of its license; 2. Submitted complete and correct reports on a monthly basis; 3. Prompt renewal of license for at least two years starting from the approval of the IRR on Controlled Chemicals; 4. No derogatory report/s such as but not limited to the following: a. Possession, importation, manufacture or selling of controlled chemicals not covered in the approved license; b. Selling or transfer of controlled chemicals to unlicensed person or entity; c. Purchase of controlled chemical from unlicensed person or entity; d. Movement and transportation of controlled chemicals without appropriate permit; and e. Use of unregistered and unaccredited forwarders in the movement and transportation of controlled chemicals. 5. Endorsement from other government regulatory or investment promotion agencies. PNP Firearms and Explosives Office

Privileges a. The licensed entity may be granted a license with a longer validity period but not more than three years without prejudice to the Inspection under Section 8 and Cancellation under Section 10 of this IRR. b. Exemption from the submission of the following documentary requirements in the renewal of license, to wit: DOCUMENTARY REQUIREMENTS FOR APPLICATION IN THE RENEWAL OF LICENSE COMPANY WITHOUT CERTIFICATE OF GOOD STANDING COMPANY WITH CERTIFICATE OF GOOD STANDING Duly accomplished Application Form Security Survey Inspection Report x Storage Facility Inspection Report x Notarized Latest Monthly Consumption report Proof of payment from the Land Bank of the Philippines x PNP Firearms and Explosives Office

SALIENT FEATURES Section 5. Scope of Licenses § Manufacturer 1. Authority to manufacture controlled chemicals; 2. Authority to deal in or sell controlled chemicals; 3. Authority to purchase and/or import controlled chemicals; 4. Authority to export the items manufactured; and 5. Authority to subcontract the manufacturing/processing of controlled chemicals; however, the subcontractor shall secure Manufacturer’s License to manufacture such controlled chemicals. PNP Firearms and Explosives Office

SALIENT FEATURES Section 5. Scope of Licenses § Dealer 1. Authority to deal in or sell controlled chemicals; 2. Authority to deal in or sell certain controlled chemicals to DTIcertified micro and small enterprises, CHED/Dep. Ed/TESDAcertified academe, DOST-certified analytical/testing laboratories, DOH-certified hospitals, and Barangay-certified farmers at the prescribed maximum allowable quantity; and 3. Authority to purchase and/or import controlled chemicals. PNP Firearms and Explosives Office

SALIENT FEATURES Section 5. Scope of Licenses § Purchaser 1. Authority to purchase and/or import controlled chemicals; 2. Authority to use and process the controlled chemicals to produce its desired product, except the manufacture of another controlled chemicals; and 3. Authority to subcontract the manufacturing/processing of products or chemicals not categorized as controlled chemicals; however, the subcontractor shall secure a Purchaser’s License to manufacture such product or substance using controlled chemicals. PNP Firearms and Explosives Office

SALIENT FEATURES Section 5. Scope of Licenses § Purchaser’s License for DTI-certified small enterprises, CHED/Dep. Ed/TESDA-certified academe, DOST-certified analytical/testing laboratories, and DOH-certified hospitals. 1. Authority to purchase certain controlled chemicals; and 2. Authority to use and process the controlled chemicals to produce its desired product; except the manufacture of another controlled chemicals. § Purchaser’s License for DTI-certified micro enterprises and Barangay-certified farmers 1. Authority to purchase certain controlled chemicals; and 2. Authority to use and process the controlled chemicals to produce its desired product; except the manufacture of another controlled chemicals. PNP Firearms and Explosives Office

SALIENT FEATURES Section 5. Scope of Licenses § For initial importation, application to import may be filed for such quantities as may be needed by the licensee for one year period based on the storage capacity multiplied by 12 months plus 25%. § For the succeeding importation, application to import may be filed for such quantities as may be needed by the licensee for one year period based on the maximum annual average for the past three years plus 25%. PNP Firearms and Explosives Office

SALIENT FEATURES Section 7. Registration and Accreditation of for PNP Accredited Logistics Service Provider/ Forwarder/ Trucker Controlled Chemicals § Enlistment of the services of Logistic Service Provider/Forwarder/ Trucker in lieu of PNP escorts in every movement. Section 8. Record of Transactions, Inventory and Inspection. § Submission of reports, especially consumption reports with delivery receipts, shall be on the 15 th day of the following month. § Inspections of storage facilities shall be done only during office hours and Inspection Checklist indicating the findings will be outrightly issued to the company. PNP Firearms and Explosives Office

SALIENT FEATURES Section 11. Cancellation of License. § Imposition of penalties for failure to maintain records in lieu of outright cancellation of license. § Reason for Cancellation of License a. Possession, importation, manufacture or selling of controlled chemicals not covered in the approved license; b. Selling or transfer of controlled chemicals to unlicensed person or entity unless otherwise exempted; c. Purchase of controlled chemical from unlicensed person or entity; d. Use of unaccredited logistic service provider/forwarder/trucker in the movement and transportation of controlled chemicals; e. Disposal of unused, contaminated and expired controlled chemicals without the appropriate permit; and f. Submission of falsified document in the application of license and/or permits. PNP Firearms and Explosives Office

SALIENT FEATURES Offense Penalty First Offense 50% of the approved license fee Second Offense 100% of the approved license fee Third Offense Cancellation of the license and cause confiscation of all such controlled chemicals, whether or not lawfully imported, purchased or possessed by the licensed manufacturer, dealer or purchaser. PNP Firearms and Explosives Office

SALIENT FEATURES Section 12. Penalties. § The criminal penalties as provided under Sections 3 -A, 3 -B, 3 -C, 3 -D, 4, 4 -A of RA No. 9516 shall be applicable. Section 13. Authority of the Chief of the Philippine National Police (PNP) to Issue Policies and Guidelines. § The Chief, PNP may revise this IRR and its Annexes in consultation with the concerned sectors of society and with approval of the Secretary of the Department of Interior and Local Government to be published in the Official Gazette or in a newspaper of general circulation and to be submitted to the UP Law Center. § The Chief, PNP through the Director, CSG may also issue relevant policies and guidelines in accordance with the law and this IRR for its effective implementation and submission to the UP Law Center and to be fully circulated. PNP Firearms and Explosives Office

SALIENT FEATURES Section 14. Application of Information and Communication Technology. • The PNP shall develop and utilize information and communications technology to enhance regulation and to support a cost-effective and efficient operation. PNP Firearms and Explosives Office

SALIENT FEATURES Section 17. Transitory Provision. • Any person or entity who at the time of the effectivity of this IRR had been licensed shall be considered as licensed under the provisions of this IRR until the expiration of such license and shall be governed by the provisions hereof. • Any person or entity who at the time of the effectivity of this IRR had been issued a temporary license or regular license and affected by this IRR shall continue to operate and shall have sixty (60) calendar days from the effectivity of this IRR within which to comply or undertake appropriate action. PNP Firearms and Explosives Office

COMPARISON PREVIOUS IRR 1. Controlled chemicals exclusively refers to the family of chlorates, nitric acid and such other chemicals and accessories that can be used for the manufacture of explosives and explosive ingredients. 1. Categorization of Chemicals a. High Risk Controlled Chemicals b. Low Risk Controlled Chemicals 2. Types of Licenses a. License to Possess Controlled Chemicals (Manufacturer) b. License to Possess Controlled Chemicals (Dealer) c. License to Possess Controlled Chemicals (Purchaser) 2. Types of Licenses a. Manufacturer’s License b. Dealer’s License c. Purchaser’s License

COMPARISON PREVIOUS IRR 3. Scope of Licenses a. License to Possess Controlled a. Manufacturer’s License Chemicals (Manufacturer) - Authority to manufacture, import, - Authority to manufacture, import export, deal in or sell and export purchase b. License to Possess Controlled b. Dealer’s License Chemicals (Dealer) - Authority to import, export, deal in or sell, purchase and to sell to or sell and purchase. unlicensed but DTI-certified micro c. License to Possess Controlled and small enterprises, academe, Chemicals (Purchaser) analytical laboratories and - Authority to purchase hospitals at a minimum quantity. c. Purchaser’s License - Authority to purchase, use and process controlled chemicals to produce its desired product and subcontract the manufacturing.

COMPARISON PREVIOUS IRR 4. Process Flow, Total Activity Time and Documentary Requirements (Licenses and Permits) 5. Sale, Movement and Transfer of Controlled Chemicals - with corresponding PNP Escorts 5. Sale, Movement and Transfer of Controlled Chemicals - Instead of PNP escort, PNP will accredit logistics service provider/forwarder/trucks.

LICENSES AND PERMITS PNP LICENSES AND PERMITS (REQUIREMENTS AND TIME) (REQUIREMENTS ANDACTIVITY APPROVING AUTHORITY LICENSES & PERMITS PROCESS FLOW (ACTIVITY TIME) REQUIREMENTS PREVIOUS CURRENT PROPOSED (MANUALLY) (AUTOMATION) I – CPNP 1. NEW MANUFACTURER’S LICENSE 2. NEW DEALER’S LICENSE 3. PERMIT TO IMPORT (M & D) 4. PERMIT TO EXPORT (M & D) 14 14 8 4 12 12 3 NGS-2 GS 3 NGS-3 GS 24 D-16 S 20 D-5 S 10 D-5 S II – DCSG 1. NEW PURCHASER’S LICENSE 2. AMENDMENT a. MANUFACTURER’S LICENSE b. DEALER’S LICENSE c. PURCHASER’S LICENSE 3. PERMIT TO IMPORT (P) 4. PERMIT TO EXPORT (P) 1. RENEWAL a. MANUFACTURER’S LICENSE b. DEALER’S LICENSE c. PURCHASER’S LICENSE 2. PERMIT TO PURCHASE & MOVE 3. PERMIT TO UNLOAD 4. SPECIAL PERMIT TO PURCHASE & MOVE CCs 14 12 14 D-4 S 10 D-3 S 5 D-3 S 10 10 10 6 4 8 8 8 3 NGS-2 GS 14 D-4 S 14 D-4 S 10 D-3 S 10 D-3 S 5 D-3 S 5 D-3 S 9 9 9 7 7 7 5 NGS-2 GS 4 NGS-3 GS 6 10 D-4 S 10 D-4 S 5 D-3 S 5 D-3 S 3 D-3 S 3 D-3 S III – CFEO

BACKGROUND June 9, 2016 Approved by SILG June 6, 2016 Signed by the Chief, PNP July 25, 2016 Publication of the IRR in the Official Gazette of the Philippines June 14, 2016 Press Conference Re-IRR Aug 9–Oct 9 2016 60 -day Transitory Period August 9, 2016 Implementation of the IRR PNP Firearms and Explosives Office