Republic of the Philippines

Department of the lnterior and Local Government

BUREAU OF FIRE PROTECTION
DILG NATIONAL HEADQUARTERS
Agham Road, Sitio San Roque, Brgy. Bagong Pag-asa, Quezon City
Telefax Number: (02) 8426 - 4399
Email: [email protected]

23 SEPTEMBER 2O2O
MEMORANDUM CIRCULAR DATE
NUMBER: 2nro-nT?

GUIDELINES ON ENTRY INTO AGREEMENT

BY THE MUNICIPAUCITY FIRE MARSHALS WITH THE LOCAL GOVERNMENT
UNITS ON THE ASSESSMENT AND COLLECTION OF THE FIRE CODE FEES

I. AUTHORITY

A. Section 5 of Republic Act No. 95'14 othenryise known as the'Fire Code of

the Philippines of 2008',

B. Section 12(h) of RA 9485, as amended by Section I1of RA 11032, and

C. Section 1'l Rule lX of the lmplementing Rules and Regulations (lRR) of RA

11032.

il. scoPE

This Circular shall cover all independent District and City/Municipal Fire
Marshals who will enter into agreements with their Local Government Units (LGUs)
regarding the assessment and collection of Fire Code Fees.

III. PURPOSE

This Circular aims to serve as a guide to all Fire Marshals in exercising their
discretion equitably and prudently when entering into agreements with the LGUs
regarding the assessment and collection of Fire Code Fees.

lv. PoLrcrEs

ln view of the foregoing, the following are the policies to be observed in entering
into agreements with the LGUs regarding the assessment and collection of Fire Code
Fees, to wit:

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A. The Fire Marshals shall be the representatives of the BFP to the LGUs without
need of any additional authority coming from the Chief, BFP as they are already
authorized by Section 1 1 Rule lX of the IRR of RA 1 't 032.

B. An automated system in business and building permitting from the LGU is

required by the BFP prior to entry into Memorandum of Agreement (MOA).

C. A standard MOA shall be issued by the BFP-NHQ to become the standard

format in the entry Into agreement by the Fire Marshals in dealing with their
respective LGUs (see Annex A hereof).

D. The obligations under the standard MOA shall be divided into three, i.e., (1)
Business Permit Application, (2) Building Permit Application, and (3)
Occupancy Permit Application. Each division shall contain LGU and BFP
obligations in it.

E. Modification of the provisions of the standard MOA is not allowed, most

especially the 1 00 percent remittance of collection and the two (2) working days
limit on remittance of the same to BFP as required by Section 11 Rule lX of the
IRR of RA 11032.

F. ln case the modification is inevitable, because of unforeseen circumstances,

the modification shall be subject to the approval of the Chief, BFP.

G. Deletion of specific paragraphs in the standard MOA is also not allowed,

except, if the deletion shall have the effect of deleting the whole of one of the
three obligation divisions such as when a LGU only wants the delegation of
assessment and collection of Business Permit Application and opts to exclude
in the agreement the delegation of Building Permit Application and Occupancy
Permit Application.

H. Addition of provisions which do not contradict the provisions of the standard

MOA and with the aim of improving the relations of the BFP and the LGU and
the promotion of integrity, accountability, proper management of public affairs
and public property, as well as to establish effective practi@s, aimed at efficient
turnaround of the delivery of government services and the prevention of graft
and corruption in government shall also be allowed.

Red flagging of establishments is not limited to those who will violate the safety
standards of RA 9514 and its RIRR. lt may also be made when reporting
erroneous assessments. The system of red flagging shall be agreed upon by
the respective Fire Marshals and LGUs.

J. ln case of delegation of the authority to assess and collect Fire Code Fees to
the LGU, the BFP may still exercise its authority in assessing and collecting
the Fire Code Fees being the principal authority in the exercise of the same.

K. lf the LGU will deposit 100 percent of the collection directly to the BFP
LandBank accounts, they shall be required to submit to the BFP the following:

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1 . List of collection,
2. Certified deposited amount, and
3. Certified true copy of Validated Deposit Slip or Cash Transaction Slip.

L. No Official Receipt shall be issued to the LGU if the latter directly deposited
the amount collected to the BFP LandBank account.

V. REPEALING CLAUSE

All orders, policies, rules and regulations or parts thereof inconsistent to this
Circular are hereby revoked or modified accordingly.

VI. EFFECTIVITY

This Circular shall take effect immediately.

JOSE GJR
DIRE (DSc)
Chief, BFP

c,anc.n 4.4frt6 N. ,t .o5tt or15

 MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and entered by and between

The , local government unit duly organized and existing

purSUanttolaw,withofficeaddreSSat,represented
bytheHonorableMayor-,hereinafterreferredtoastheLGU;
r and

The BUREAU OF FIRE PROTECTION, a national agency created and mandated to enforce
the Fire Code of the Philippines of 2008 and its Revised lmplementing Rules and Regulation (RIRR)
as provided ror in Republic
tilr,rrrll"lo",
nu'l;. *'ffi:ilt:l oJ,

hereinafter referred to as the BFP;

WTNESSETH:

WHEREAS, Section 5 of Republic Act 9514 also krlown as the Fire Code of the Philippines of
2008 and its Revised lmplementing Rules and Regulations (RIRR) authorizes the Chief of the BFP to
enter into Memorandum of Agreement with other departments, bureaus, agencies, offices, and
corporati6ns of the government, as well as private institutions, in order to define areas of cooperation
and coordination and delineate responsibility on fire prevention education, fire safety, fire prevention,
fire suppression and other matters of common concern;

WHEREAS, Section 12(h) of Republic Act No. 9485, as amended by Section 11 of 11032 has
vested the BFP the discretion to enter into agreements with cities or municipalities to allow the latter
to assess and collect fire safety inspection fees;

WHEREAS, Section 1'1 Rule lX of the lmplementing Rules and Regulations of RA '1 1032 has
set the guidelines for the Local Government Unit to be designated as collecting agent, to wit:

"a. For one-time assessment of busrness-related fees for Euslness Permit, LGUg
may be designated lo assess 'the ordinary" fire safety inspection fees (FSIF), provided
that the BFP is abte to check tlie accuracy of the computation and to ceftify the tax
order of payment.

b. . For one-time payment of business related fees, the BFP may allow the
designatlon of city or municipality as collecting agents for the FSIF provided that the
remittance of the said fee to the BFP shall be made not later than two (2) days after the
transaction is made. The BFP is not precluded from collecting additional fees required
after thelir assessment subject to existing laws and regulations.

c. The LGU and the BFP, thru the local fire marshal, may enter into a
Memorandum of Agreement giving authoity to local government officers for collection
and automatic remittance of applicable fees."
i

WHEREAS, for purposes of this agreement, ordinary fire safety inspection fees shall pertain to
the Fire Safety lnspection Fee described in Section 12.0.0.2 (A) (6) of the RIRR of RA 9514,
thus:"Fee charged for the conduct of Fire Safety lnspectionequivalent to fifteen percent (15o/o) of all
fees charged by the Local Government Unit or Philippine Economic Zone Authoity (PEZA), but in no
case shall be lower than FiveHundred Pesos (PhP500.00)."

NOW THEREFORE, in consideration of the foregoing the Parties hereby agree as follows:

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 BUSIN ESS PERMI T APPLICATION:

LGU s ha ll:

1. Establish an automated system which may be used by the BFp as part of its system;

2. Provide the BFP a Business lD No. that is unique to only one establishment;

3 Provide the BFP access to the LGU's automated system to generate the "red flag" for non-
compliant business establishments, and also view registered -business establishments in the
locality;

4 Provide the BFP list of all taxes and fees being collected by the local government during
business permit renewal, and confirm from the BFP which from among the list should be
included in the computation of FSIF, which shall be specifically coded in the Tax Order of
Payment (ToP) and official Receipt (oR) for easy reference and verification by the BFp;

5 Establish a mechanism in handling those with under assessment issues and to give the BFP a
chance to object in the computation;

6. Compute the required fees and taxes for issuance of business permits and integrate the
computation of the BFP's FSIF on its assessment of fees;

7. Provide the BFP, or at least make available upon demand, one clear copy of TOP issued to
each applicant on a daily basis;

8. Collect FSIF from the applicant following the reflected amount in the TOP and make sure that
all regulatory fees where such FSIF are based are specifically and individually listed and coded
in the OR;

9. r Provide the BFP, or at least make available upon demand, one clear copy of OR issued to
each applicant on a daily basis;

10. Remit all collectedFslF and otherFire Code related fees (100% of the collected amount)within
two (2) working daysafter transabtion directly to the BFP, so these maybe reflected in the
BFP's system and in compliance with Presidential Decree No.1445 also known as Government
Auditing Code of the Philippines;

1 1. Provide a weekly summary report of all collections made from

business
i applicants/establishments to concerned BFP Fire Station thru email, not later than the first
working day of the coming week, specifically indicating the name of the payers, date of
payment, kind and amount of taxes and fees collected;

'12.Act promptly and take necessary corrective action on any discrepancy from its reports in the
assessment, collection and remittance of Fire Code Construction Tax and other related fees;

13. Coordinate with BFP in establishing a system of online payment of fees and related charges
and other electronic payment scheme to facilitate the on-time assessment and payment of
business permit-related fees and charges.

14. ln case, the collected Fire Code fees is deposited to the Authorized Government Depository
Bank (AGDB), the BFP shall be provided with a certified true copy of a Validated Deposit Slip
or Cash Transaction Slip. The Fire Code fees collected should be remitted to the Special
Account in the General Fund (Code 151).

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 BF P shall:

1. Coordinate with the LGU on the list of regulatory fees to be included in the ordinary FSlF,s
computation and the code to be used for the items;

2. Provide the LGU with the List of Establishment with issued Fire Safety lnspection Certificates
(FSIC) which will serve as their basis in the renewal of Business Permit or Positive List of
Compliant Establishments.lt is the responsibility of the BFP to ensure that the List is
UPDATED and that changes are immediately coordinated with the LGU;

3. Secure copy of TOPs; ORs and/or Validated Deposit Slips/Cash Transaction Slips from LGU;

4. lnform the LGU discrepancy found in the documents or during the conduct of inspection;

5. lssue Official Receipt to LGU for every remittance of collections made to the BFp;

B U LDING P ERMIT APPLIC ATION:

LGU shall:

1. Develop an automated system for the submission and processing of building permit
application and coordinate with BFP in establishing a system of online payment of fees and
related charges and other electronic payment scheme to facilitate the on-time assessment
and payment of building permit-related fees and charges;

2. Providethe BFP, or at least make available upon demand, one clear copy of TOP issued to
each applicant on a daily basis;

3. Collect Fire Code Construction Tax and other related fees from the applicant following the
reflected amount in the BFP's issued OPS and to make sure that all are specifically and
individually. listed and coded in the Official Receipt;

4. Provide the BFP, or at least make available upon demand, one clear copy of OR issued to
each applicant otua daily basis; .

5. Remit all collected FireCode Construction Tax and other Fire Code related fees (100% of the
collected amount) within two (2) working days after transaction directly to the BFP, so these
maybe reflected in the BFP's system and in compliance with Presidential Decree No.1445;

6. Provide a weekly summary report of all collections made from business

applicants/establishments to concerned BFP Fire Station thru email, not later than the first
working day of the coming week, specifically indicating the name of the payers, date of
payment, kind and amount of taxes and fees collected;

7. Provide the BFP list of issued Building Permits (every 5h day of the month) for their reference
in anticipation of the applicant's future application for a Certificate of Occupancy;

8. Act promptly and take necessary corrective action on any report of discrepancy from the
reports issued by any of its offices to the BFP,

9. Coordinate with BFP in establishing a system of online payment of fees and related charges
and other electronic payment scheme to facilitate the on{ime assessment and payment of
building permit-related fees and charges;

10. Strictly not issue building permit without applicant first securing Fire Safety Evaluation
Clearance (FSEC) from the BFP.

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 BFP shall:

1. Rece]ve with complete documentary requirements and process the endorsed Application for
FSEC and Building Plans from LGU through OBO;

2. Assess the Fire Code Construction Tax and prepare the OPS and endorsed back to LGU
through the application together with the FSEC and/or NOD with checklist;

3. lmmediately inform the LGU of any discrepancy found in the documents and repo(s received.

OCCUPANCY PERMIT APLLICATTON:

LGU shall:

"1. After inspdction, endorse to the BFP through oBo the Application for occupancy to the BFp
together with the Certificate of Completion and its Certificate of Final Electrical lnspection
(cFEr);

2. Provide the BFP, or at least make available upon demand, one clear copy of TOP issued to
each applicant on a daily basis;

3. Collect FSIF as reflected in the TOP and OPS and make sure that all regulatory fees where
such FSIF are based are specifically and individually listed and coded in the OR;

4. Provide the BFP one (1 ) clear copy of OR as proof of payment;

5. Remit all collected FSlFand other Fire Code related fees (100o/o of the collected amount)
within two (2) working days after transaction directly to the BFP, so these maybe reflected in
the BFP's system and in compliance with PD 1445;

6. Provide a weekly summary report (printed and electronic copy) of all Fire Code Fees
Collections made not later than the first working day of the week, specifically indicating the
names of the payers, dates of the payments, and the kind and amount of taxes and fees
collected;

7. Provide the BFP with the List of lssued Certificates of Occupancy (every 5b day of the
month;f

8. Act promptly and take necessary corrective action on any report of discrepancy from the
reports issued by any of its offices to the BFP;

9. Coordinate with BFP in establishing a system of online payment of fees and related charges
and other electronic payment scheme to facilitate the on{ime assessment and payment of
occupancypermit-related fees and charges;
10. Through OBO shall not issue in any circumstance the Certificate of Occupancy to
establishment without a valid Fire Safety lnspection Certificate.

The BFP shall:

1. Accept, receive and process endorsed Application for Occupancy with complete documentary
requirements from LGU through OBO and perform the corresponding courses of action
related to the conduct of fire safety inspection and if found compliant issue FSIC if non-
compliant issue NOD;

2. Endorsed back to LGU through OBO the processed application with attachment of (FSIC or
NOD);

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 3. lmmediately inform the LGU of any discrepancy found in the documents and reports received
from OBO.

Jointly, the Parties agree to automatically revoke this agreement, in the event that disputes
arising from assessment, collection and remittance are not settled within three (3) months after the
reports of discrepancy are submitted by the BFP to concerned office of the LGU.

ln case any provision in this Agreement shall be invalid, illegal or unenforceable by a court of
competent jurisdiction, the validity, legalitity and enforceability of the remaining provisons hereof and
thereof shall not in any way be affected or impaired thereby.

This Memorandum of Agreement shall take effect upon signing of both parties and shall be
valid for one (1) year after approval, and renewable upon consent of both paffes.

lN WTNESS WHEREOF, the parties here unto affixed their signatures this_ day of
_p0_ in the _, Philippines.

MUNICIPAL / CITY GOVERNMENT BUREAU OF FIRE PROTECTION

By: By:

City/Municipal Mayor City/Municipal Fire Director

Signed in the Presence of:

ACKNOWLEDGEMENT

BEFORE ME, this _ day of ,2020 in

, personally appeared:

Name Competent Place and Date

Evidence of ldentity of lssue / Validity

Known to me to be the same persons who executed the foregoing MEMORANDUM OF

AGREEMENT, and acknowledged that same are their free act and deed and of the respective entities
they represent.

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