What is Permit to Operate for MFADDIEs?
Permit to Operate (PTO) is a privilege granted to any Manufacturer, Fabricators, Assemblers, Dealers, Distributors, Importers, and Exporters (MFADDIEs) that have passed the review, inspection, and evaluation conducted by DA-BAFE and DA-RAED and is allowed to engage in a particular line of activity which include manufacturing, fabrication, assembly, distribution, dealing, importation, and exportation of agricultural and fisheries machinery.
Legal Basis?
The need to secure a Permit to Operate (PTO) for MFADDIE or MFADDIE Registration is in compliance to Sections 20 and 24 of Republic Act No. 10601 otherwise known as the AFMech law and Department of Agriculture’s Department Circular 4, Series of 2019 that prescribes the guidelines on the registration and issuance of PTO for MFADDIEs.
To learn more on the legal bases of PTO, visit: http://bit.ly/AFMechlaw
Why do MFADDIEs need to secure a Permit to Operate?
Having a PTO allows MFADDIEs to engage in a particular line of activity which includes manufacturing, fabrication, assembly, distribution, dealing, importation, and exportation of agricultural and fisheries machinery.
BAFE at its discretion may impose sanctions which may include fine, warning, and other administrative sanctions for violators.
What is the purpose of Permit to Operate?
- Prevent the proliferation of MFADDIEs from committing any misconduct in manufacturing, fabrication, assembling, distribution, dealing, importation, and exportation of agricultural and fisheries machinery
- Establish a national registry of agricultural and fisheries machinery MFADDIEs and machinery supplied in the market
- Ensure fair trade practices among MFADDIE and end-users
- Provide opportunities for business growth through the availability of information that may help MFADDIEs in their market research such as availability of existing and current agri-fishery machineries in different areas.
- Safeguard the interest of the consumers by ensuring good and quality machinery.
What are the requirements for the application of PTO?
PTO Application Requirements
- Duly accomplished Application Form
- Photocopy of Business/Mayor’s Permit from the city/municipality where the establishment is located for the current year
- Location map of the establishment
- Duplicate copy of the official receipt of payment of application fee
- Product listing Form
Additional Requirement for Sole Proprietorship
- Photocopy of the Certificate of Business Name Registration issued by the Department of Trade and Industry (DTI)
Additional Requirements for Corporation / Partnership / Association / Cooperatives
- Photocopy of the Certificate of Registration issued by the Securities and Exchange Commission (SEC)
- Article of Incorporation and By-laws and all amendments thereto
What are the requirements for the renewal of PTO?
- Duly accomplished Application Form
- Photocopy of previously issued PTO
- Photocopy of Business/Mayor’s Permit from the city/municipality where the establishment is located for the current year
- Duplicate copy of the official receipt of payment of application fee
- Updated product listing
What is a Provisional PTO?
A provisional PTO is issued in cases of delay due to unforeseen circumstances. This is issued provided that the application has passed the initial evaluation.
What is the validity of the PTO and Provisional PTO?
The PTO is valid for five (5) years while the provisional PTO is valid for three (3) months.
Where and how to apply for PTO?
- New applications for PTO are accepted anytime of the year. Application forms can be secured from:
- BAFE central office
- DA-RAED
- Download from BAFE website at: https://www.bafe.da.gov.ph or from respective DA-RFO websites
- Applicants located in the regions shall submit their application to their respective DA Regional Field Office Regional Agricultural Engineering Division while applicants located in the NCR shall submit their application directly to BAFE.
Only application with the complete set of required documents shall be considered for review and processing.
What are the sanctions for failure to secure PTO for MFADDIE’s?
Failure to secure a PTO is punishable under Article VIII, Sections 23, 24, and 25 of the Department of Agriculture’s Department Circular No. 4 Series of 2019.