Department Circular No. 2001-11-004

PROHIBITION ON THE REFILLING OF LPG CYLINDERS COVERED BY THE RECALL AND REPLACEMENT ORDER OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) – BUREAU OF PRODUCTS STANDARDS (BPS), AND THE SALE OF SUBJECT CYLINDERS, WHETHER REFILLED OR NOT  

WHEREAS, pursuant to Section 2 and Section 5 (k) of Chapter 1 of RA No. 7638, the Department of Energy shall formulate rules and regulations as may be necessary to guide the operations of both government and private entities involved in energy resource supply and distribution; 

WHEREAS, Section 14 of Republic Act No. 8479 mandates the DOE to monitor refining, manufacturing and marketing processes of petroleum products to ensure that clean and safe technologies are applied;

WHEREAS, Section 15 of Republic Act No. 8479 provides for additional powers for the DOE Secretary which may be readily be availed of to deter, restrain, and/or penalize any and all illegal, irregular, and anomalous business practice or activity, with the end in view of cultivating and instilling discipline, honesty, and fair trade practices in the consciousness of each and every player in all levels of the downstream oil industry;

WHEREAS, Section 7 of Republic Act No. 8479 requires DTI and DOE to take all measures to promote fair trade, among other;

WHEREAS, the DOE and DTI forged a Memorandum of Agreement on 18 January 2001 to provide a mechanism for close coordination and enforcement of quality standards for LPG cylinders to avert the proliferation and use of LPG cylinders which pose continuous hazard and threat to the health and safety of consumers;

WHEREAS, to ensure consumers’ safety the DTI-BPS issued on 24 September 2001 a product recall & replacement order to PILIPINAS DAECHANG STEEL., INC. (PDSI) and subsequently published a NOTICE to the Public, for 11-kg. cylinders produced from 01 December 2000 to 30 April 2001 with the following serial numbers and date of testing:  

WHEREFORE, premises considered, all concerned LPG industry players are hereby directed NOT to refill the LPG cylinders which are subject to the recall order of the DTI-BPS, nor to sell or offer to sell LPG contained in subject cylinders whether refilled or not;

Disposition of the recalled cylinders shall be pursuant to the DTI-BPS guidelines.

Any person, whether natural or juridical, found to have violated this directive shall be subject to an administrative penalty of Five Thousand Pesos (P 5,000.00) per cylinder refilled, sold, or offered for sale without prejudice to any other criminal or civil action that may be filed under existing applicable laws, rules and regulations.

This CIRCULAR shall be effective fifteen (15) days after its publication in two (2) newspapers of general circulation.

Fort Bonifacio, Taguig, Metro Manila, 9 November 2001.

VINCENT S. PEREZ, Jr.

Secretary

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