The Land Transportation Franchising and Regulatory Board (LTFRB) has dropped the certificate of conformity (COC) as requirement in securing a vehicle franchise more known as a certificate of public convenience (CPC).
Under Board Resolution No. 05 Series of 2023, the LTFRB decision removing the COC, which is issued by a bank or financial institution, is part of its commitment to comply with the tenets of Republic Act 11032, also known as the Ease of Doing Business and Efficient Government Delivery Service Act of 2018.
In the resolution, the agency board, after careful evaluation, recognized the COC requirement is a “frequent cause of delay or dismissal of applications.”
The COC forms part of requirements in securing a vehicle franchise as stated in the 2020 Citizen’s Charter when applying for a new CPC, especially if the vehicle is “encumbered” or has outstanding financial obligations.
“In the spirit of RA 11032, which was enacted to help simplify and streamline requirements to reduce red tape in business transactions in government, we hope that removing the COC requirement in a vehicle franchise application will help ease the burden among the transacting public and give them more convenience in securing that much-needed vehicle franchise,” said LTFRB Chairman Teofilo Guadiz III.
