Prohibited Acts.
SEC. 38. Prohibited Acts. – Any natural or juridical person, whether an LPG industry participant or otherwise, shall be prohibited from the following acts:
(a) Engaging in activities without the required licenses, permits, and certificates under this Act, specifically:
(1) Engaging in an activity without a valid license to operate or registration from the DOE, whichever is applicable, business permit, and other required licenses and certificates issued by relevant agencies, and
(2) Manufacturing and repairing of LPG pressure vessels, manufacturing of LPG seals, and requalifying LPG pressure vessels without a valid license, permit, and certificate from the DTI.
(b) Engraving in activities with or as an unauthorized person, specifically:
(1) Knowingly transacting with, or selling or distributing LPG., LPG pressure vessels, or LPG seals to an LPG industry participant who does not have the required licenses, certificates, clearances, or permits, whichever is applicable,
(2) Manufacturing, distributing, refilling, or selling LPG cylinders carrying a trademark or trade name without the express approval of the trademark owner,
(3) Selling, exchanging, bartering, distributing, transferring, or possessing of empty LPG cylinders by any LPG industry participant other than the trademark owner or without its consent outside the LPG Cylinder Exchange and Swapping Program pursuant to Section 31 of this Act, and
(4) Possessing LPG seals, including the seals already used in LPG cylinders, without authority from the trademark or trade name owner or its duly authorized reseller;
(c) Failing to comply with the standards, requirements, and guidelines under this Act, specifically:
(1) Failing to comply with the standards and requirements on:
(i) Safety design including fire safety requirements for refining plants, refilling plants, depots, storage areas, motor vehicles, retail outlets, warehouses, auto-LPG conversion shops, auto-LPG dispensing stations, and other related facilities of LPG industry participants,
(ii) Safety practices,
(iii) LPG, and
(iv) Measuring devices,
(2) Fabricating and manufacturing of LPG pressure vessels using substandard materials,
(3) Manufacturing of LPG pressure vessels without the necessary markings and safety and quality marks as required by the PNS, or the standard governing LPG pressure vessel manufacture, requalification, and repair, whichever is applicable,
(4) Stamping or marking wrong, misleading, incorrect, or inaccurate information on LPG pressure vessels, whichever is applicable,
(5) Creating or manufacturing of illegal or fake LPG seals, and
(6) Failing to comply with the safety design and requirements, permits, and clearances of motor vehicles transporting LPG in bulk and LPG cylinders and cartridges;
(d) Engaging in activities involving LPG and LPG pressure vessels that are noncompliant with the standards, requirements, and guidelines under this Act, specifically:
(1) Importing used or second-hand LPG pressure vessels,
(2) Importing brand new LPG pressure vessels noncompliant with PNS and without a valid certificate or license from the DTI,
(3) Selling and distributing defective, injurious, unsafe, dangerous, noncompliant, or substandard LPG pressure vessels,
(4) Selling or distributing refilled LPG cartridges,
(5) Selling or distributing LPG-filled cylinders without a seal, with a tampered fake, or broken seal, inappropriate or unauthorized seal, or with a seal not belonging to the trademark owner,
(6) Selling or distributing LPG pressure vessels without the necessary markings and safety and quality marks as required by the PNS, or the standard governing LPG pressure vessel manufacture, requalification, and repair, whichever is applicable,
(7) Selling or distributing LPG through means other than in LPG pressure vessels, using tool other than ancillary equipment compliant with the PNS, or through other contractual arrangements not recognized in this Act,
(8) Filling LPG pressure vessels with LPG mixed with another finished or unfinished petroleum or non-petroleum products, substance, or material resulting in the failure of the LPG to meet the required PNS. The possession of LPG pressure vessels containing adulterated LPG shall be prima facie evidence of violation of this provision,
(9) Selling of adulterated LPG in bulk and in pressure vessels,
(10) Refilling LPG cartridges,
(11) Hauling, loading, transporting, or permitting the loading and transportation of LPG in bulk, or LPG-filled cylinders or cartridges in quantities greater than the rated capacity of the motor vehicle or in such a manner that endangers the life and safety of its passengers or the public,
(12) Storing LPG in pressure vessels more than the volume prescribed in Republic Act No. 9514 and its revised implementing rules and regulations,
(13) Selling or storing entry LPG cylinders of other trademark owners in excess of those allowed under the LPG Cylinder Exchange and Swapping Program guidelines upon its effectivity pursuant to Section 31 of this Act, and
(14) Possessing illegal or fake LPG seals;
(e) Failing to comply with the responsibilities as an LPG industry participant, specifically:
(1) Failing to submit periodic reports as may be required pursuant to Section 6 of this Act,
(2) Refusing, preventing, or obstructing the inspection of its premises and records pursuant to Section 6 of this Act,
(3) Refusing or failing to participate in the LPG Cylinder Exchange and Swapping Program, and LPG Cylinder Improvement Program pursuant to Sections 31 and 32 of this Act,
(4) Failing to submit the certification pursuant to Section 34 of this Act, and
(5) Failing to comply with other responsibilities in Chapter III hereof;
(f) Engaging in the following:
(1) Destroying, tampering, altering, or modifying LPG pressure vessel through any means such as, but not limited to, changing the LPG cylinder valve, repainting and relabeling, whichever is applicable: Provided, That this shall not be prohibited if it is done by the trademark owner,
(2) Preventing end-consumers from purchasing LPG from trademark owners, marketers, refillers, dealers, or retail outlets,
(3) Refusing to refund the deposit on the LPG cylinder to any end-consumer, in the case of a trademark or trade name owner and its duly authorized dealer or retail outlet in accordance with the implementing rules and regulations of this Act,
(4) Adulterating LPG,
(5) Pilfering LPG, and
(6) Utilizing the LPG Cylinder Improvement fund for purposes other than what it is intended for.
Underfilling.
SEC. 39. Underfilling. – The following acts undertaken by the following natural or juridical persons shall constitute underfilling of LPG pressure vessels:
(a) The refiller when the net quantity of LPG contained in an LPG pressure vessel sold, transferred, delivered, or filled is less than the LPG pressure vessel content required at the refilling plant; and
(b) The dealer or retail outlet when the net quantity of LPG in a pressure vessel sold, transferred, or delivered is less than the required LPG pressure vessel content quantity.
If applicable, a broken, tampered, absent, or removed seal, or an LPG pressure vessel that does not have the proper seal attached to it, shall be considered prima facie evidence of underfilling.
Illegal Refilling.
SEC. 40. Illegal Refilling. – The following acts shall constitute illegal refilling of LPG pressure vessels:
(a) Filing or refilling of LPG pressure vessels with products or substances other than LPG in an effort to achieve the correct net weight;
(b) Filling or refilling of LPG cylinders directly from LPG bulk storage tank trucks;
(c) Unauthorized cross-filling;
(d) Refilling of LPG from one LPG cylinder to another cylinder;
(e) Refilling of LPG cylinders other than in duly licensed LPG refilling plants;
(f) Refilling of LPG cylinders;
(1) Bearing defaced, tampered, or illegible markings contrary to the mandatory labeling and stamping requirements under this Act,
(2) Noncompliant with the PNS,
(3) Due for repair, requalification or scrappage, or are subject to a recall or prohibition order of the DOE or DTI, and
(4) By auto-LPG dispensing stations;
(g) Unauthorized loading of LPG bulk storage tanks; and
(h) Any other filling or refilling of LPG pressure vessels in violation of the requirements and standards under this Act.
Penalties.
SEC. 41. Penalties. – Any person found in violation of the following acts shall have the following administrative and criminal penalties:
(a) Section 38 (a)(1):
(1) First offense – Administrative penalty of fine amounting to a minimum of Five thousand pesos (P5,000.00) for each day of operation without the required license, permit, certificate, or registration,
(2) Second offense – Administrative penalty of fine amounting to a minimum of Ten thousand pesos (P10,000.00) for each day of operation without the required license, permit, certificate, or registration, and
(3) Third offense – Administrative penalty of fine amounting to a minimum of Twenty thousand pesos (P20,000.00) for each day of operation without the required license, permit, certificate, or registration;
(b) Section 38 (a)(2):
(1) First offense – Administrative penalties of fine amounting to a minimum of Twenty-five thousand pesos (P25,000.00) for very LPG pressure vessel or seal and confiscation of pressure vessels or seals,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Fifty thousand pesos (P50,000.00) for every LPG pressure vessel or seal, confiscation of pressure vessels or seals, and suspension of license to operate. Upon conviction, the criminal penalty of imprisonment for at least one (1) year but not more than three (3) years, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One hundred thousand pesos (P100,000.00) for every LPG pressure vessel or seal, confiscation of LPG pressure vessels or seals, closure, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment for at least three (3) years and one (1) day but not more than six (6) years;
(c) Section 38 (b):
(1) First offense – Administrative penalties of fine amounting to a minimum of Ten thousand pesos (P10,000.00) for every LPG pressure vessel or seal and, if applicable, closure until the required licenses and permits are secured,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Twenty thousand pesos (P20,000.00) for every LPG pressure vessel or seal, whichever is applicable, suspension of license to operate, and if applicable, closure until the required licenses and permits are secured. Upon conviction, the criminal penalty of imprisonment of at least six (6) months but not more than one (1) year, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of Thirty thousand pesos (P30,000.00) for every LPG pressure vessel or seal, closure, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment of one (1) year and one (1) day but not more than three (3) years;
(d) Section 38 (c)(1) and (c)(6):
(1) First offense – Administrative penalty of fine amounting to a minimum of Three hundred thousand pesos (P300,000.00): Provided, That for retail outlets the fine shall be a minimum of Ten thousand pesos (P10,000.00),
(2) Second offense – Administrative penalty of fine amounting to a minimum of Five hundred thousand pesos (P500,000.00) and suspension of license to operate: Provided, That for retail outlets the fine shall be a minimum of Twenty thousand pesos (P20,000.00). Upon conviction, the criminal penalty of imprisonment of at least one (1) year but not more than three (3) years, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One million pesos (P1,000,000.00), closure, and permanent disqualification from engaging in any activity as an LPG industry participant: Provided, That for retail outlets the fine shall be a minimum of Thirty thousand pesos (P30,000.00). Upon conviction, the criminal penalty of imprisonment of at least three (3) years and one (1) day nut not more than six (6) years;
(e) Section 38 (c)(2), (c)(3), (c)(4), and (c)(5):
(1) First offense – Administrative penalties of fine amounting to a minimum of Twenty-five thousand pesos (P25,000.00) for every LPG pressure vessel or seal and confiscation of the said LPG pressure vessel or seal,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Fifty thousand pesos (P50,000.00) for every LPG pressure vessel or seal, confiscation of said LPG pressure vessel or seal, and suspension of license to operate. Upon conviction, the criminal penalty of imprisonment for at least one (1) year but not more than three (3) years, and
(3) Third offense – Administrative penalties of fine amounting to One hundred thousand pesos (P100,000.00) for every LPG pressure vessel or seal, confiscation of said LPG pressure vessel or seal, closure, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment for at least three (3) years and one (1) day but not more than six (6) years;
(f) Sections 38 (d) and 40:
(1) First offense – Administrative penalties of fine amounting to a minimum of Twenty-five thousand pesos (P25,000.00) for every LPG pressure vessel, or seal and confiscation of said LPG pressure vessel or seal: Provided, That in the case of broken seals, the fine shall be a minimum of One thousand pesos (P1,000.00) for every LPG cylinder. In the case of illegal refilling, upon conviction, the criminal penalty shall be imprisonment of six to twelve (6-12) years,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Fifty thousand pesos (P50,000.00) for every LPG pressure vessel or seal, confiscation of said LPG pressure vessel or seal, and suspension of license to operate. Upon conviction, criminal penalty of imprisonment for at least one (1) year but not more than three (3) years. In the case of broken seals, the administrative penalty of fine shall be a minimum of Four thousand pesos (P4,000.00) for every LPG cylinder and there shall be no criminal liability. In the case of illegal refilling, upon conviction, the criminal penalty shall be imprisonment of six to twelve (6-12) years, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One hundred thousand pesos (P100,000.00) for every LPG pressure vessel or seal, closure and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, criminal penalty of imprisonment for at least three (3) years and one (1) day but not more than six (6) years. In the case of broken seals, the administrative penalty of fine shall be a minimum of Eight thousand pesos (P8,000.00) for every LPG cylinder and there shall be no criminal penalty. In the case of illegal refilling, upon conviction, the criminal penalty shall be imprisonment of six to twelve (6-12) years.
The illegally refilled LPG cylinders in Section 40 (c), (d), (e), (f), (g), and (h) shall be confiscated outright;
(g) Section 38 (e)(1), (e)(4), and (e)(5):
(1) First offense – Administrative penalty of fine amounting to a minimum of Twenty thousand pesos (P20,000.00),
(2) Second offense – Administrative penalties of fine amounting to a minimum of Fifty thousand pesos (P50,000.00) and suspension of license to operate, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One hundred thousand pesos (P100,000.00), closure, and permanent disqualification from engaging in any activity as an LPG industry participant;
(h) Section 38 (e)(2) and (e)(3):
(1) First offense – Administrative penalty of fine amounting to a minimum of Three hundred thousand pesos (P300,000.00),
(2) Second offense – Administrative penalties of fine amounting to a minimum of Five hundred thousand pesos (P500,000.00) and the suspension of license to operate, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One million pesos (P1,000,000.00), closure and permanent disqualification from engaging in any activity as an LPG industry participant;
(i) Section 38 (f)(1):
(1) First offense – Administrative penalties of fine amounting to a minimum of Twenty-five thousand pesos (P25,000.00) for every LPG pressure vessel and confiscation of said LPG pressure vessel,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Fifty thousand pesos (P50,000.00) for every LPG pressure vessel, confiscation of the said LPG pressure vessel, and suspension of the license to operate. Upon conviction, the criminal penalty of imprisonment for at lease one (1) year but not more than three (3) years, and
(3) Third offense – Administrative penalties of fine amounting to a minimum of One hundred thousand pesos (P100,000.00) for every LPG pressure vessel, confiscation of the said LPG pressure vessel, closure, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment for at least three (3) years and one (1) day but not more than six (6) years;
(j) Section 38 (f)(2), (f)(4), (f)(5), and (f)(6): Administrative penalties of fine amounting to a minimum of One million pesos (P1,000,000.00), closure, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment for at least six (6) months and one (1) day to six (6) years;
(k) Section 38 (f)(3):
(1) First offense – Administrative penalties of a warning and a fine of Five thousand pesos (P5,000.00) for the failure or refusal to refund the deposit of each LPG cylinder,
(2) Second offense – Administrative penalties of fine of Ten thousand pesos (P10,000.00) for the failure or refusal to refund the deposit of each LPG cylinder and the suspension of license to operate, and
(3) Third offense – Administrative penalties of fine of Twenty thousand pesos (P20,000.00) for the failure or refusal to refund the deposit of each cylinder, closure, and permanent disqualification from engaging in any activity as an LPG industry participant; and
(l) Section 39:
(1) First offense – Administrative penalty of fine amounting to a minimum of Twenty thousand pesos (P20,000.00) for very LPG pressure vessel. Upon conviction, the criminal penalty of imprisonment of six to twelve (6-12) years,
(2) Second offense – Administrative penalties of fine amounting to a minimum of Thirty thousand pesos (P30,000.00) for every LPG pressure vessel, closure and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal penalty of imprisonment of six to twelve (6-12) years.
Violations by Juridical Entities.
SEC. 42. Violations by Juridical Entities. – If the violation is committed by a corporation, partnership, association, or other juridical entity, the penalty of imprisonment shall be imposed on the responsible directors or officers thereof, and the lack of corporate personality cannot be raised as a defense in case the juridical entity is unregistered. Any new juridical entity formed by persons or agents of such persons previously found in violation of the prohibited acts under this Chapter for the third time shall be permanently disqualified from engaging in any activity as an LPG industry participant.
Suspension, Cessation, and Closure.
SEC. 43. Suspension, Cessation, and Closure. – Nothing in this Chapter shall preclude the DOE from ordering the suspension or cessation of the operation of the facility, or the closure thereof until such time that the mandatory requirements or corrective measures directed by the DOE have been met.
Initiation of Administrative Action by the DOE.
SEC. 44. Initiation of Administrative Action by the DOE. – An administrative action shall be initiated by the DOE through the issuance of a show cause order to the LPG industry participant, giving the latter the opportunity to explain in writing within the period prescribed by the DOE from receipt of the order: Provided, That the entire administrative proceeding shall not exceed sixty (60) calendar days from the issuance of a show cause order to the final resolution by the DOE. The DOE shall have the discretion to conduct a hearing pertaining to the violation, or to impose an outright penalty based on the merits of the written explanation.
Imposition of Preventive Suspension Order.
SEC. 45. Imposition of Preventive Suspension Order. – Without prejudice to other administrative remedies, the DOE may, during the pendency of an administrative proceeding, suspend the operations of the concerned business of an LPG industry participant subject of the proceeding within a maximum period of forty-five (45) calendar days to prevent undue interference in the ongoing investigation and tampering of evidence in accordance with the implementing rules and regulations of this Act.
Impoundment and Disposition of Impounded Evidence.
SEC. 46. Impoundment and Disposition of Impounded Evidence. – Without prejudice to Section 35 of this Act, the DOE shall, with the assistance of law enforcement agencies pursuant to Section 13 of this Act, be authorized to impound prohibited LPG, LPG pressure vessels, ancillary equipment, and motor vehicles used in the transportation of LPG and LPG-filled pressure vessels as evidence of the violation under this Act. The final disposal of the impounded items shall be subject to the final resolution of the DOE or the court having jurisdiction over the prohibited act.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
