DEPARTMENT CIRCULAR  NO.  2009-07-0010

GUIDELINES FOR THE ACCREDITATION OF MANUFACTURERS, FABRICATORS AND SUPPLIERS OF LOCALLY-PRODUCED RENEWABLE ENERGY EQUIPMENT AND COMPONENTS

WHEREAS, Republic Act No. 9513, otherwise known as the “Renewable Energy Act of 2008” (Act) provides that it is the policy of the State to increase the utilization of renewable energy resources such as, but not limited to, biomass, solar, wind, hydropower, geothermal, and ocean energy sources, and including hybrid system by institutionalizing the development of national and local capabilities in the use of renewable energy systems, and promoting its efficient and cost-effective commercial application by providing fiscal incentives;

WHEREAS, the Implementing Rules and Regulations (IRR) of the Act mandates the Department of Energy (DOE) to provide the guidelines for the accreditation of manufacturers, fabricators and suppliers of locally-produced RE equipment and components for purposes of availment of fiscal incentives;

NOW, THEREFORE, in consideration of the foregoing premises, the DOE hereby issues the following guidelines:

SECTION 1. Title. – This Circular shall be known as the “Guidelines for the Accreditation of Manufacturers, Fabricators and Suppliers of Locally-Produced Renewable Energy Equipment and Components.”

SECTION 2. Scope. – This Circular shall govern the registration of renewable energy (RE) manufacturers, fabricators and suppliers of locally-produced RE equipment and components and the issuance of Certificate of Accreditation for the availment of incentives under the Act.

SECTION 3. Incentives for Manufacturers, Fabricators and Suppliers. – Without prejudice to any other requirements as may be imposed by other agencies tasked with the administration of incentives under the Act, all existing and new manufacturers, fabricators and suppliers of locally-produced RE equipment, parts and components shall be required to obtain an accreditation with the DOE through Renewable Energy Management Bureau (REMB) in order to enjoy any of the incentives as provided for under Section 21 of the Act.

SECTION 4. Who May Apply. – Any person, natural or juridical, registered and/or authorized to operate in the Philippines under existing Philippine laws and engaged in the manufacture, fabrication and supply of locally-produced RE equipment  and components may apply for accreditation with the REMB.

SECTION 5. Application Requirements. – All applications for DOE Certificate of Accreditation shall be made in writing and must be verified. The applicant must submit the following documents:

(a)Letter of Application addressed to REMB Director;

(b)Company Profile or Business Background – must show proof of good standing, i.e., demonstrate full compliance with the pertinent rules and regulations governing the applicant’s business;

(c) A copy of Articles of Incorporation from the Securities and Exchange Commission (SEC) or a Certificate of Registration from Department of Trade and Industry (DTI) for single proprietorship;

(d) Nature and Scope of RE activities (RE manufacturing, fabricating, and/or supplying of locally-produced RE machineries, equipment, components and parts);

(e) Appropriate Business Permit in the name of the Company or proprietor – that it must be actively engaged in the business involving similar activities applied for accreditation, including certified copy of Bureau of Internal Revenue (BIR) Registration;

(f) Proof of technical, financial and physical or logistical capabilities to handle RE equipment, machinery, components and parts appropriate and commensurate to the scope of activity applied for accreditation;

(g) Track record, if applicable; and

(h) Such other documents as may be required by the REMB.

SECTION 6. Processing and Approval of Application. – The application for accreditation shall be granted by the DOE upon evaluation that the applicant has complied with all the requirements specified above. The processing period for any application for accreditation shall be within thirty (30) days from the date of submission of complete requirements to the REMB. No application for accreditation shall be accepted without due payment of application and processing fees.

In case of incomplete application requirements, the REMB shall, within fifteen (15) days from receipt of application, notify the applicant, in writing, to correct the deficiency. If the applicant fails to correct the deficiency within fifteen (15) days from receipt of the notice, the application shall be deemed to have been abandoned. 

SECTION 7. Obligations of Accredited RE Manufacturers, Fabricators and Suppliers. – 

The DOE-accredited manufacturers, fabricators and suppliers of locally-produced RE equipment, parts and components shall comply with the terms and conditions set forth in the Certificate of Accreditation, in addition to the following:

(a)Comply with pertinent government rules and regulations including, but not limited to, payment of taxes, environmental protection, safety, as a requisite for availment of and continuous enjoyment of incentives under the Act;

(b) Submit reports on the importation, local purchases, sales, and inventory, among others, in relation to accredited RE activities  (manufacturing, fabrication, and supply of locally-produced RE machineries, equipment, components and parts);

(c) Adhere to standards, or in its absence, to industry-accepted norms and practices in the manufacture, fabrication or supply of RE machineries, equipment and components; 

(d) Allow DOE personnel, at all reasonable time, full access to its facilities, books of accounts and other pertinent records relative to its business operation; and

(e) Shall not assign, transfer, dispose or otherwise convey its interest acquired under the DOE accreditation.

SECTION 8. Period of Validity. – The DOE Certificate of Accreditation for RE manufacturers, fabricators and suppliers of locally-produced RE machineries, equipment, components and parts, shall be valid for a period of three (3) years from date of its issuance unless earlier revoked or cancelled by the DOE through REMB on valid grounds. The Certificate of Accreditation shall be renewable every three (3) years, subject to compliance with the requirements.  

SECTION 9. Revocation or Cancellation of Certificate of Accreditation. – The DOE may, motu proprio or upon filing of any complaint, revoke or cancel any Certificate of Accreditation following the provisions of Department Circular No. 2002-07-004 or the “Rules of Practice and Procedure of the Department of Energy” due to, among others, failure of any of the accredited manufacturer, fabricator and/or supplier to comply with its obligations as provided in Section 6 hereof and the terms and conditions under which the accreditation was issued.

SECTION 10. Separability Clause. – If for any reason, any provision of this Circular is declared unconstitutional or invalid, the other parts or provisions not affected thereby shall remain in full force and effect.

SECTION 11. Repealing Clause. – The provisions of other department circulars which are inconsistent with the provisions of this Circular are hereby repealed, amended or modified accordingly.

SECTION 12. Effectivity. – This Circular shall take into effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation.

Issued this 12th day of July 2009 in Fort Bonifacio, Taguig City, Metro Manila. 

ANGELO T. REYES

Secretary