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Republic of the Philippines
Department of Energy
(Kagawaran ng Enerhiya)

BAGONC PILIPINAS

DEPARTMENT CIRCULAR NO. 0c 2025-I!— C0R F
GUIDELINES ON COAL TRADING AND UTILIZATION

WHEREAS, Section 2, Article XII of the 1987 Constitution states that all lands of the
public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
resources are owned by the State and their exploration, development, and utilization
shall be under its full control and supervision;

WHEREAS, Presidential Decree (PD) No. 972, otherwise known as the “Coal
Development Act of 1976,” as amended, declares it a policy of the State to immediately
accelerate the exploration, development, exploitation, production, and utilization of the
country’s coal resources, and vested the Energy Development Board (now the
Department of Energy) with the authority to promulgate rules and regulations for its
implementation;

WHEREAS, Sections 5(c) of Republic Act (RA) No. 7638, otherwise known as the
“Department of Energy (DOE) Act of 1992,” as amended by Section 37(g) of RA No.
9136, otherwise known as the “Electric Power Industry Reform Act of 2001,” mandates
the DOE to establish and administer programs for the exploration, transportation,
marketing, distribution, utilization, conservation, stockpiling, and storage of energy
resources of all forms, whether conventional or non-conventional;

WHEREAS, on 22 May 2012, the DOE issued Department Circular (DC) No. DC2012-
05-0006, otherwise known as the “Guidelines on the Accreditation of Coal Traders and
Registration of Coal End-Users,” to strengthen and rationalize existing regulations on
coal trading and sale;

WHEREAS, on 15 May 2018, the DOE issued Department Order (DO) No. DO2018-
03-0004, otherwise known as the “Decentralization of the Department of Energy by
Implementing Institutional Strengthening and Allowing Full Devolution of General and
Specific Functions to its Field Offices (FOs),” to optimize its operations, synchronize
functions, and eliminate redundancies;

WHEREAS, under Section 3.1.5 of DO No. DO2018-03-0004, the DOE FOs shall
exercise, within their jurisdiction, the conduct of investigation and validation of illegal
coal trading activities and proper implementation of DC No. DC2012-05-0006;

WHEREAS, there is a need to align DOE’s existing policies and regulations on coal
trading and utilization towards the goal of achieving a Clean Energy Scenario under
the Philippine Energy Plan (PEP) to help ensure energy security, continued
employment generation, and sustained wealth creation, while in the energy transition
phase;

NOW, THEREFORE, the foregoing premises considered, the following guidelines are
hereby adopted and promulgated for compliance by all concerned:

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Section 1. Scope and Coverage. This Circular shall govern the following:

1.1

1:2

1.3

1.4

Accreditation of Coal Traders, Coal End-Users, and Coal Logistics Service
Providers, as defined under Section 2 hereof;

All activities relating to the trading and utilization of coal;
Apprehension, seizure, confiscation, and disposal of confiscated coal; and

Imposition of administrative fines and penalties.

Section 2. Definition of Terms. As used in this Circular, the following terms shall
mean as follows:

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

Abandoned Coal - refers to coal stockpile without any known claimant;

Accredited Entities — refer to Coal Traders, Coal End-Users, Coal Logistics
Service Providers issued a Certificate of Accreditation by the DOE in
accordance with this Circular, including Operators of Coal Operating
Contracts (COCs) under Development/Production (D/P) Phase and Small-
Scale Coal Mining Permits (SSCMPs);

Coal — refers to a black or brownish-black solid combustible rock containing
less than forty percent (40%) non-combustible inorganic components, formed
by the accumulation, decomposition, and compaction of plant material under
a long-acting geological process;

Coal End-User (CEU) - refers to any person, natural or juridical, requiring
the supply and delivery of coal for its own use or utilization, such as, but not
limited to, power generation, cement, metal processing, chemical, canning,
paper, rubber, garments, food and beverage, and other manufacturing
industries;

Coal Logistics Service Provider (CLSP) — refers to any person, natural or
juridical, that provides transportation of coal by land or sea, port operations
such as coal loading and unloading, temporary storage in port facilities and/or
stevedoring, hustling, and other related activities;

Coal Trader (CT) — refers to any person, natural or juridical, engaged in coal
trading;

Coal Trading -— refers to the business of buying, selling, importing, exporting,
marketing, transporting, distributing, retailing, handling, stockpiling, and
storage of coal, and all other related activities; and

Coal Utilization — refers to the act of using coal for any purpose, such as,
but not limited to, power generation, cement, metal processing, chemical,
canning, paper, rubber, garments, food and beverage, and other
manufacturing industries.
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Section 3. Procedure and Requirements for Accreditation and Renewal of CTs,
CEUs, and CLSPs. All CTs, CEUs, and CLSPs shall apply for accreditation or renewal
of accreditation with the DOE prior to engaging in, or continuing, their respective coal-
related business operations, in accordance with the procedures and requirements
prescribed under this Section 3.

3.1

3.2

Application Form and Payment of Application Fee.

A. The applicant shall submit a duly accomplished and notarized application

form (Annex A):

i. For CTs and CLSPs — to the DOE-Energy Resource Development
Bureau (ERDB).

ii. For CEUs — to the concerned DOE FO where its business
operation/plant that utilizes or will utilize coal is located. In the case of
applications covering Regions IV-A, IV-B, V, and the National Capital
Region (NCR), the same shall be filed with the ERDB.

. The ERDB or concerned FO shall prepare a billing statement for the

issuance of an Order of Payment, which shall be sent to the applicant's
email address indicated in the application form.

. Within ten (10) calendar days from the issuance of the Order of Payment,

the applicant shall pay a non-refundable application fee in the amount of
Ten Thousand Pesos (Php 10,000.00), net of all charges, such as, but
not limited to, documentary stamps and wire/cable charges, which shall
be for the account of the applicant.

. Payments may be made in cash, manager's cheque, direct over-the-

counter bank deposit, or via wire/bank transfer payable to the
“Department of Energy.”

Submission of Documentary Requirements. After payment of the
application fee, the applicant shall submit the following documentary
requirements, along with the copy of the invoice as proof of payment of the
application fee, to the concerned receiving unit specified in Section 3.1(A) of
this Circular:

A. Coal Trader

i. Certified true copy of the registration certificate issued by the
Securities and Exchange Commission (SEC), Department of Trade
and Industry (DTI) for sole proprietorship, or Cooperative
Development Authority (CDA) for cooperatives, as may be applicable;

—

ii. Certified true copy of the Business Permit issued by the City or
Municipality where the principal office is located and, if applicable, a
certified true copy of the Business Permit from the City or Municipality
where the storage facility is located;
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Vi.

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Certified true copy of the duly notarized/authenticated coal supply
agreement with an Operator of a COC under D/P Phase, with
approved Work Program and Budget (WPB) and production of not less
than 100,000 metric tons per year; and/or a Holder of an SSCMP;
and/or foreign coal supplier/s.

Such contract must be for a period of at least one (1) year and should
indicate the volume of coal to be supplied;

. Proof of ownership or duly notarized lease contract of the coal storage

facility/ies;

. Certified true copy of the Environmental Compliance Certificate (ECC)

or Certificate of Non-Coverage (CNC) issued by the Department of
Environment and Natural Resources (DENR), as applicable, and
photos of the coal storage facility;

Proof of ownership of transportation vehicle/s or equipment, or
certified true copy of service agreement with an accredited CLSP,
including the following:

1. For land transportation:
a. List of vehicles with plate numbers and copies of valid Official
Receipts and Certificates of Registration (ORs/CRs); and
b. List of authorized drivers with copy of valid licenses.

2. For sea transportation:
a. List of barges/ships with copy of registration and ownership
documents;

vii. Proof of authority of the representative of the applicant, if applicable.

B. Coal End-User

Certified true copy of the registration certificate issued by the SEC, DTI
for sole proprietorship, or CDA for cooperatives, as may be applicable;

ii. Certified true copy of the Business Permit issued by the City or

Municipality where the business operation/plant that utilizes or will
utilize coal is located and, if applicable, a certified true copy of the
Business Permit from the City or Municipality where the storage facility
is located;

. Technical specifications of coal-fired equipment and plant location

map;

iv. Certified true copy of ECC and Permit to Operate (PTO) each in

respect of the coal facility issued by the DENR, and photos of the coal
storage facility;

. Certified true copy of service agreement with an accredited CLSP, if

applicable; and
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vi. Proof of authority of the representative of the applicant, if applicable.
C. Coal Logistics Service Provider

i. Certified true copy of the registration certificate issued by the SEC, DTI
for sole proprietorship, or CDA for cooperatives, as may be applicable;

ii. Certified true copy of Business Permit issued by the City or
Municipality where the principal office and the storage facility are
located;

iii. Proof of ownership or duly notarized lease contract of the coal storage

and/or port facility/ies, if applicable;

iv. Certified true copy of ECC or CNC issued by the DENR, as applicable,
and photos of the coal storage facility;

v. Proof of ownership of transportation vehicle/s or equipment, for coal
conveyance, if applicable, including the following:

1. For land transportation:
a. List of vehicles with plate numbers and copies of valid ORs/CRs;
and
b. List of authorized drivers with copy of valid licenses.

2. For sea transportation:
a. List of barges/ships with copy of registration and ownership
documents;

vi. Certified true copy of service agreement with an accredited CT or
CEU, or with an Operator of COC under D/P Phase or Holder of an
SSCMP, as applicable; and

vii. Proof of authority of the representative of the applicant, if applicable.
3.3 Evaluation of Submitted Documents

A. Upon receipt of the applicant's submission, the concerned receiving unit
shall transmit the documents to the ERDB-Coal and Nuclear Minerals
Division (CNMD) or FO-Energy Resource Development Division (ERDD),
as applicable, for evaluation.

B. Applications with incomplete documentary requirements shall be
disapproved, without prejudice to re-application.

C. If necessary, the ERDB-CNMD or the FO-ERDD may conduct site
verification: Provided, That the conduct of site verification shall suspend
the period for acting on the application: Provided, further, That the site
verification shall be conducted within seven (7) working days from notice
to the applicant, which period may be extended for reasonable grounds.
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3.4

3.5

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D. If the application is approved, the applicant shall be issued a Certificate
of Accreditation.

E. If the application is disapproved for reasons other than the incomplete
submission of documentary requirements, the applicant may file a Motion
for Reconsideration (MR) within seven (7) working days from receipt of
the notice of disapproval. The ERDB or concerned FO shall resolve the
MR within fifteen (15) working days from receipt thereof.

F. If the disapproval is affirmed, the applicant may file an appeal to the
Office of the Secretary within fifteen (15) working days from receipt of the
notice denying the MR.

Renewal of Accreditation. An accredited CT, CEU, or CLSP may apply for
renewal of its Certificate of Accreditation not earlier than ninety (90) calendar
days but not later than thirty (30) calendar days prior to its expiration.

In addition to the requirements prescribed under Section 3 of this Circular, all
renewal applications shall be accompanied by a valid Financial Clearance
issued by the DOE Financial Services Conventional Energy Resources
Compliance Division (FS-CERCD).

In case the documentary requirements previously submitted pursuant to
Section 3 hereof remain valid and unchanged as of the time of application for
renewal, the applicant may submit a sworn certification (Annex B), duly
signed by its authorized representative, attesting to the continued validity,
accuracy, and completeness of such documents, in lieu of resubmission of
documentary requirements.

Applications received beyond the prescribed period shall be assessed an
additional late processing fee of Twenty Thousand Pesos (Php 20,000.00).

Validity. The Certificate of Accreditation shall remain valid unless earlier
revoked or canceled by the DOE based on the grounds set forth in this
Circular and/or violation of other applicable laws, rules, and regulations,
subject to the following validity periods:

A. Coal Trader and Coal Logistics Service Provider — two (2) years from
the date of issuance; and

B. Coal End-User — five (5) years from the date of issuance.
In both cases, the Certificate of Accreditation shall be automatically revoked

in case of non-renewal or cancellation/revocation of any other required
government permit.
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Section 4. Rights of Accredited Entities. All accredited CTs, CEUs, and CLSPs shall
have the following rights:

4.1

4.2

4.3

Coal Trader

A. To buy, sell, market, distribute, retail, handle, stockpile, and store coal;

B. To import coal and be issued a Certificate of Compliance as may be
required by the Bureau of Customs (BOC) and Bureau of Internal
Revenue (BIR); and

C. To transport or convey coal utilizing owned or directly contracted
equipment with accredited CLSP.

Coal End-User

A. To purchase coal from Operators of COCs under D/P Phase and Holders
of SSCMPs, and/or accredited CTs;

B. To import coal and be issued a Certificate of Compliance as may be
required by the BOC and BIR; and

C. To utilize coal purchased for its own operations.

Coal Logistics Service Provider

A. To provide coal handling services to other Accredited Entities, such as
transportation of coal by land or sea, port operations such as coal loading

and unloading, stevedoring, hustling, and stockpiling, as specified in its
Certificate of Accreditation.

Section 5. Obligations of Accredited Entities. All accredited CTs, CEUs, and
CLSPs shall have the following obligations:

5.1

5.2

5.3

5.4

5.5

To transact only with Accredited Entities, as defined under this Circular;

To maintain books of accounts and records relating to its coal trading
activities and retain all documents supporting the revenues and expenses
relative to its coal deliveries for a period of not less than five (5) years;

To submit quarterly reports to the DOE within sixty (60) calendar days from
the end of each quarter, provide a status update in cases where no
transactions were made, i.e., zero report, and ensure that all payment
transactions are made in the name/account of the Accredited Entity;

To allow DOE representatives, at all reasonable times upon prior written
notice, access to its facilities and premises, books of accounts, and records
relating to its obligations hereunder for proper monitoring, computation of
appropriate government share, and other valid purposes;

To comply with the provisions of the DOE DC No. DC2024-01-0006, entitled
“Guidelines on the Conduct of Audit and Reportorial and Remittance
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5.6

5.7

5.8

5.9

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Obligations of Upstream Conventional and Renewable Energy Service
Contractors, Small-Scale Coal Mining Permittees, Accredited Coal Traders,
Power Generating Companies, and/or Energy Resource Developers
including Reportorial Obligation of Coal End-Users”,

To provide temporary storage of any confiscated coal;

To comply with the orders of the DOE and other related laws, rules, and
regulations; and

To ensure proper handling and storage of coal as required by the DOE.

Additional Obligations. Accredited Entities shall have the following
additional obligations:

A. Coal Trader

.

To maintain appropriate storage facility;

To remit quarterly to the DOE the three percent (3%) government
share of the net proceeds from the sale of locally produced coal,
within sixty (60) calendar days from the end of each quarter; and
To secure the necessary permit for every transportation,
conveyance, delivery, or distribution of coal.

B. Coal End-User

To purchase coal only from accredited Coal Traders, Operators of
COCs under D/P Phase, or Holders of SSCMPs, and to engage
only the services of accredited CLSPs for coal transport and
handling;

To comply with all rules and regulations pertinent to the Issuance of
Certificate of Compliance for Coal Importation (CoC-Cl), in case of
importation; and

To maintain books of accounts and records relating to its coal
trading activities, and to retain all documents supporting the
revenues and expenses relative to its coal deliveries for a period of
not less than five (5) years.

C. Coal Logistics Service Provider

To ensure the roadworthiness or seaworthiness of trucks, vessels,
and other coal conveyances to prevent fugitive coal dust and/or coal
spillages during the transportation of coal;

To provide logistics services to Operator of COCs under D/P Phase,
Holders of SSCMPs, or accredited CTs or CEUs, including
transportation of coal by land or sea, port operations, loading and
unloading, stevedoring, hustling, stockpiling, and other related
activities;

To submit quarterly reports to the DOE on its transactions within
sixty (60) calendar days from the end of each quarter, and to provide
a status update in cases where no transactions were made, i.e.,
zero report; and
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iv. To maintain books of accounts and records relating to its coal
trading activities, and to retain all documents supporting the
revenues and expenses relative to its coal deliveries for a period of
not less than five (5) years.

Section 6. Rights and Obligations of Operators of COCs under D/P Phase and
Holders of SSCMPs. Operators of COCs under D/P Phase with approved Work
Program and Budget (WPB) and production of not less than 100,000 metric tons per
year, and Holders of SSCMPs shall be issued a Certificate of Accreditation as Coal
Trader by the DOE without the need to apply and submit the requirements under this
Circular. By virtue of their valid COCs or SSCMPs, these entities may sell, market,
distribute, or retail coal: Provided, That they shall transact only with Accredited Entities,
as defined under this Circular: Provided, further, That they shall secure the necessary
permit for every transportation, conveyance, delivery, or distribution of coal as provided
under Section 7 hereof.

Section 7. Transportation and Delivery of Coal.

7.1. Coal Transport Permit (CTP). For every delivery of coal, accredited CTs,
CEUs, and Holders of SSCMPs shall request the issuance of a CTP from the
concerned DOE office having jurisdiction over the place where the coal
delivery will originate: Provided, That Operators of COCs under D/P Phase
shall request for the issuance of CTPs with the ERDB-CNMD.

7.2 Special Coal Transport Permit (SCTP). The transport of coal under special
circumstances, as may be determined by the DOE, shall require the issuance
of an SCTP by the ERDB-CNMD.

7.3. The CTP or SCTP, as applicable, shall be valid only for the particular date of
delivery and shall automatically expire upon the lapse of the period stated
therein.

7.4 Procedure and Requirements for the Issuance of CTP or SCTP.

A. The requesting party shall file a duly accomplished application form
(Annex C) at least seven (7) working days before the scheduled delivery
with the concerned FO-ERDD having jurisdiction over the
city/municipality where the coal originates: Provided, That in case the
place of origin is within Regions IV-A, IV-B, V, and NCR, the request shall
be filed with the ERDB-CNMD.

B. An Order of Payment shall be sent to the requesting party's email
address as indicated in the application form. The following non-
refundable processing fee, net of all charges, shall be paid by the

requesting party:

e Php 100.00/truck per delivery

e Barges:
<3,000MT — Php 1,000.00 per delivery
>3,001-6,000MT — Php 2,000.00 per delivery
>6,001-10,000MT — Php 3,000.00 per delivery
>10,001MT — Php 4,000.00 per delivery
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The basis of weight is the draft survey report.

C. Requests received beyond the prescribed period shall be assessed an
additional late processing fee in the following amounts:

Php 200.00/truck per delivery

Barges:

<3,000MT — Php 2,000.00 per delivery
>3,001-6,000MT — Php 4,000.00 per delivery
>6,001-10,000MT — Php 6,000.00 per delivery
>10,001MT — Php 8,000.00 per delivery

The basis of weight is the draft survey report.

D. Payments may be made in cash, manager's cheque, direct over-the-
counter bank deposit, or via wire/bank transfer payable to the
“Department of Energy.”

E. After payment of the processing fee, the requesting party shall submit the
following documentary requirements to the DOE:

For CTP

e Copy of Purchase Order

e Copy of Invoice as proof of payment of the processing fee

e For Operators of COCs under D/P Phase and Holders of SSCMPs,
proof of coal production and available inventory;

ii. For SCTP

Name of buyer/end-user

Name and details of CLSP (as may be applicable)
Quantity and quantity of coal to be transported
Estimated date of transfer

e Purpose/Justification

F. Applications with incomplete documentary requirements shall be
disapproved, without prejudice to re-application.

Section 8. Importation and Exportation of Coal.

8.1

8.2

Certificate of Compliance for Coal Importation (CoC-Cl). For every
importation of coal, accredited CTs and CEUs shall apply for a CoC-Cl with
the ERDB-CNMD.

Certificate of Compliance for Coal Exportation (CoC-CE). For every
exportation of coal, Operators of COCs under D/P Phase shall apply for a
CoC-CE with the ERDB-CNMD.
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8.3. Procedure and Requirements for the Issuance of CoC-Cl and CoC-CE.

A. The requesting party shall file a duly accomplished request form (Annex
D) with the ERDB-CNMD at least thirty (30) working days before the
expected arrival of the imported coal or the expected release of the
exported coal.

B. An Order of Payment shall be sent to the requesting party’s email
address as indicated in the application form.

C. Within ten (10) calendar days from the issuance of the Order of Payment,
the requesting party shall pay a non-refundable processing fee in the
amount of Five Thousand Pesos (Php 5,000), net of all charges, such as,
but not be limited to, documentary stamps and wire/cable charges, which
shall be for the account of the requesting party.

D. Requests received beyond the prescribed period shall be assessed an
additional late processing fee in the amount of Ten Thousand Pesos (Php
10,000.00).

E. Payments may be made in cash, manager's cheque, direct over-the-
counter bank deposit, or via wire/bank transfer payable to the
“Department of Energy.”

F. After payment of the processing fee, the requesting party shall submit the
following documentary requirements to the ERDB-CNMD:

e Certified copy of coal logistics service agreement with an accredited
CLSP, if applicable;

e Coal analysis/guaranteed specifications;

e Proforma Invoice or other related documents;

e Complete submission of Post-Import Documents (PIDs) for previously
approved CoC-Cls, or Post-Export Documents (PEDs) for previously
approved CoC-CEs, as may be applicable; and

e Copy of Invoice for the payment of the processing fee.

The DOE may require the submission of additional documents, if
necessary, in which case the period for issuing the requested CoC-Cl or
CoC-CE, as the case may be, shall be suspended and shall resume upon
receipt of the additional documents.

G. The CoC-Cl or CoC-CE, as applicable, shall be valid only for the
particular date of delivery and shall automatically expire upon the lapse
of the period stated therein.

Section 9. Visitorial and Enforcement Powers of the DOE. The DOE, through the
ERDB or the concerned FO, may, at all reasonable times and upon prior written notice,
conduct on-site validation and inspection of the facilities and premises, books of
accounts, and records of Accredited Entities relative to their obligations under this
Circular.
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Section 10. Prohibited Acts. Any person or entity, natural or juridical, shall be
penalized under Section 11 of this Circular for the commission of the following
prohibited acts:

10.1 Trading and utilization of coal without prior accreditation issued by the DOE;
and

10.2 Transporting, conveying, or delivering coal from one place to another without
a valid transport permit issued by the DOE.

Section 11. Administrative Fines and Penalties. For every finding of non-
compliance, the following penalties shall be imposed:

11.1. Unaccredited Coal Trading, Transport, and Utilization. Any entity that
engages in coal trading, transport, and utilization without the accreditation
prescribed under this Circular shall be penalized with a fine amounting to One
Hundred Thousand Pesos (Php 100,000.00) per delivery, confiscation,
seizure, and disposal of all coal, instruments, and tools in favor of the
Government.

11.2 Transacting with an Unaccredited Entity. Any Accredited Entity that
transacts with an unaccredited entity/ies shall be penalized as follows:

First Offense: Twenty-Five Thousand Pesos (Php 25,000.00) per
transaction or delivery

Second Offense: Fifty Thousand Pesos (Php 50,000.00) per
transaction or delivery, and suspension of
accreditation for a period of thirty (30) calendar days

Third Offense: Cancellation of accreditation

11.3 Transportation of Coal Without Permit. Transportation of coal by
accredited CTs, Operators of COCs under D/P Phase, and Holders of
SSCMPs without the required CTP, SCTP, CoC-Cl, or CoC-CE, as the case
may be, shall be penalized as follows:

First Offense: Twenty-Five Thousand Pesos (Php 25,000.00) per
transaction or delivery

Second Offense: Fifty Thousand Pesos (Php 50,000.00) per
transaction or delivery, and suspension of
accreditation for a period of thirty (30) calendar days

Third Offense: Cancellation of accreditation
11.4 Non-compliance with Reportorial and Remittance Obligations.
A. Non-compliance by accredited CTs and CEUs with reportorial and
remittance obligations, including failure to submit quarterly report and

remit the government share, shall be governed by DOE DC No. DC2024-
01-0006.
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B. Failure of CLSPs to timely submit any quarterly report shall be subject to
a penalty of One Thousand Pesos (Php 1,000.00) per quarter. Late or
non-submission of reports for four (4) consecutive quarters shall be a
ground for suspension and/or cancellation of accreditation.

Refusal to Allow Inspection and Non-Compliance with Other
Obligations. Refusal to allow inspection or on-site validation by the ERDB-
CNMD and/or the concerned FO-ERDD, as well as any non-compliance with
other obligations under this Circular, shall result in the suspension of
accreditation until corrective measures are implemented.

11.6 Any entity whose accreditation has been canceled due to any of the offenses

mentioned in this Circular shall only be allowed to reapply for an accreditation
after one (1) year from the date of cancellation and after settlement of all
penalties and obligations.

In all cases, the DOE may further recommend the suspension or revocation
of the business permit and/or closure of business establishment to the
concerned Local Government Unit (LGU), and the cancellation of ECC and
PTO to the DENR-Environmental Management Bureau (EMB), as applicable.

For violation of any provision of this Circular resulting in environmental
incidents such as, but not limited to, coal spillages, contamination, fire,
spontaneous combustion, coal run-off into seas, rivers, or other water bodies,
and/or serious injury resulting in the loss of life or limb, an additional penalty
of Two Hundred Thousand Pesos (Php 200,000.00) and suspension or
cancellation of accreditation, as may be appropriate, shall be imposed.

Section 12. Administrative Procedures for the Imposition of Fines and Penalties.
The following rules shall be observed in the imposition of fines and penalties under this

Circular:

42.1

12.3

Issuance of Show Cause Order. For every finding of non-compliance or
violation of this Circular, the ERDB or the concerned FO shall issue a Show
Cause Order directing the party to submit a verified answer with supporting
documents and/or evidence, within seven (7) working days from receipt
thereof.

Filing of Verified Answer. Upon receipt of the verified answer, the ERDB or
the concerned FO shall evaluate the same together with the supporting
documents and/or evidence submitted.

If no verified answer is filed within the prescribed period, the party shall be
deemed to have waived the right to submit controverting evidence. The
ERDB or concerned FO shall be constrained to resolve the matter based on
the available information and documents.

Resolution of the Administrative Case. Within fifteen (15) working days
from receipt of the verified answer, or upon the lapse of the period and no
verified answer is filed, the ERDB or concerned FO shall issue an Order
resolving the administrative case.
=== dc2025-11-0027-pages-14.ppm ===
DC on Coal Trading and Utilization

12.4

12.5

12.6

Page 14 of 16

If necessary, the ERDB or concerned FO may require the submission of
additional supporting documents, in which case, the period to resolve the
administrative case shall be suspended and shall resume upon receipt of the
additional supporting documents or upon the lapse of the period to submit the
same.

Motion for Reconsideration. Within fifteen (15) working days from receipt
of the Order, a Motion for Reconsideration (MR) may be filed. The ERDB or
concerned FO shall resolve the MR within fifteen (15) working days from
receipt thereof.

If necessary, the ERDB or concerned FO may require the submission of
additional supporting documents, in which case, the period to resolve the MR
shall be suspended and shall resume upon receipt of the additional
supporting documents or upon the lapse of the period to submit the same.

Execution of Order. If no MR is timely filed, or when the MR is denied, the
Order of the Director of the ERDB or concerned FO becomes immediately
executory.

In cases where the penalty imposed includes a fine, the party shall pay the
fine within seven (7) working days from receipt of the Order; otherwise, its
accreditation shall be suspended until the fine is fully paid.

Appeal to the Secretary. A resolution denying an MR may be appealed to
the Office of the Secretary within seven (7) calendar days from receipt
thereof.

No appeal to the Secretary shall be entertained unless the party pays a non-
refundable appeal fee in the amount of Ten Thousand Pesos (Php
10,000.00). The timely filing of an appeal to the Secretary shall stay the
execution of the Order or Resolution.

In case of denial of the appeal, the party shall pay the assessed fine within
seven (7) working days from receipt of the Order; otherwise, an interest of
ten percent (10%) per annum shall be imposed until fully paid, and its
accreditation shall be suspended until full payment of the fine, including any
interest thereon.

Section 13. Apprehension, Seizure, Confiscation, and Disposal Procedures.

13.1

In addition to the administrative fines and penalties under Section 11 of this
Circular, the ERDB or concerned FO, LGUs, Philippine National Police
(PNP), or other law enforcement agencies shall have the authority to
apprehend, seize, and/or confiscate coal products, instruments, tools, and
proceeds, consistent with applicable laws, rules, and regulations, under the
following circumstances:

A. Abandoned coal;

B. Coal stockpiled within the facility of an unaccredited entity;

C. Coal stockpiled inappropriately, such as on roads or areas not covered
by the ECC;
=== dc2025-11-0027-pages-15.ppm ===
DC on Coal Trading and Utilization

13.2

13.4

13.5

13.6

13.7

Page 15 of 16

Coal produced or purchased from illegal or unaccredited sources;

Coal sold or delivered to unaccredited CTs or CEUs;

Coal transported by an unaccredited CTs, CEUs, or CLSPs;

Coal transported without a valid CTP, SCTP, CoC-Cl or CoC-CE; or
Coal involved in any environmental incident as specified under Section
11.6 hereof.

IQmmMo

The ERDB or concerned FO shall properly identify, measure, and label the
confiscated coal.

The Municipality/City where the confiscation occurred may take custody of
and dispose of the confiscated coal: Provided, That it may sell such
confiscated coal only to accredited CTs or CEUs using conveyance from
accredited CLSPs: Provided, further, That the Municipality/City shall be
entitled to reimbursement of all expenses incurred in the disposal of coal.

The DOE-ERDB or concerned FO shall provide the necessary assistance in
the disposal of the confiscated coal, such as, but not limited to, issuance of
Coal Transport Permit.

If, within seven calendar (7) days from the confiscation, there is no offer
received from the Municipality/City, the DOE shall take possession of the
confiscated coal and notify all Accredited Entities within the Region where the
apprehension occurred to submit an offer to purchase the confiscated coal
within three (3) days therefrom.

Accredited Entities, if required by the ERDB or concerned FO, shall provide
temporary storage for any confiscated coal until disposal.

Upon the lapse of the three (3)-day period, the DOE-ERDB or concerned FO
shall determine the best offer for the confiscated coal based on the highest
price received. In case of a tie, the earlier submission shall prevail.

Within three (3) calendar days from notice, the winning offeror must pay the
offer price; otherwise, the next best offer shall be considered.

In case of failure of all offerors to pay their offer price or no offer was received,
the Accredited Entity that took custody of the confiscated coal shall be entitled
to purchase the same at a negotiated price.

Section 14. Filing of Criminal Cases. Whenever a violation of this Circular warrants
the filing of a criminal complaint, the same may be filed by the DOE through the Director
of the ERDB or concerned FO having jurisdiction over the area where the
apprehension took place.

Section 15. Transitory Provision. All accreditations of CTs and registrations of CEUs
issued prior to the effectivity of this Circular shall remain valid until the expiration date
stated therein: Provided, That such CTs, CEUs, and CLSPs shall be required to comply
with the provisions of this Circular.
=== dc2025-11-0027-pages-16.ppm ===
DC on Coal Trading and Utilization
Page 16 of 16

Section 16. Separability Clause. If for any reason, any provision of this Circular is
declared unconstitutional or invalid, such part not affected shall remain in full force and
effect.

Section 17. Repealing Clause. The provisions of DOE DC No. DC2012-05-0006 and
all other circulars, orders, rules, and regulations inconsistent with this Circular are
hereby modified, amended, and repealed accordingly.

Section 18. Effectivity. This Circular shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation and shall remain in
effect until otherwise revoked. A copy of this Circular shall be filed with the University
of the Philippines Law Center — Office of the National Administrative Register (UPLC-
ONAR).

Issued on NOV 18 2025 at DOE, Energy Center, Rizal Drive corner 34"
Street, Bonifacio Global City, Taguig City, Metro Manila.

=== dc2025-11-0027-pages-17.ppm ===
®
LSE ga Republic of the Philippines Department Circular No. DC2025-11-0027
4 .. rE |) DEPARTMENT OF ENERGY Annex A - Application Form
s oe? (Kagawaran ng Enerhiya)

APPLICATION FOR ACCREDITATION

Date:
0 Coal Trader O New
O Coal End-User Oj Renewal
O Coal Logistics Service Provider Current Accreditation No.

Expiry Date:

ee eeeSeSeSESEee

Business address

Plant and coal storage facility address
O Same as business address

Authorized representative
Position/designation
Contact number

Email Address

(Please ensure that the email address is active.
Order of payment will be sent to this email address.)

WITNESSETH

1. All statements made above are considered essential conditions in the granting of the Accreditation and any falsehood
in these statements or omissions of facts which may later change or affect substantially the facts set forth in this
application shall be sufficient ground for the cancellation or revocation of the Accreditation granted.

2. The applicant agrees to submit additional requirements to the DOE as may be deemed necessary for purposes of
determining its qualification for the Accreditation applied for.

3. This application is filed for the exclusive use and sole benefit of the applicant and not for the direct or indirect benefit
of any other person or entity.

4. The applicant further undertakes that the rights and obligations under this application, in case approved, shall not be
transferred or assigned to any other person or entity.

5. The applicant authorizes the publication of the company and authorized personnel's information on the official
website and publications of and by the Department of Energy.

6. The foregoing statements are hereby certified to be true to the best of the applicant's knowledge and belief.

Signature Over Printed Name
of Authorized Representative

ACKNOWLEDGEMENT
Republic of the Philippines)
Province of )s. S.
City/Municipality of )
SUBSCRIBED AND SWORN to before me at the place aforesaid, on . The affiant exhibited to
me his/her ID No. issued at on .
Doc. No. ;
Pane oe, — Notary Public
Book No.

Series of
=== dc2025-11-0027-pages-18.ppm ===
Department Circular No. DC2025-11-0027
Annex B — Sworn Certification

Sworn Certification of Validity of Previously Submitted Documents
For Renewal of Accreditation

REPUBLIC OF THE PHILIPPINES
CITY/MUNICIPALITY OF ) S.S.

iF , of legal age, a Filipino citizen, and with office
oo han OF Atti

address at , after having been duly sworn
in accordance with law, do hereby depose and state that:

1. lamthe of
a  OSMOUOSSTGOG eter a

’
ompany Name

hee?
duly registered under the laws of the Republic of the Philippines, and accredited as a

under Certificate of Accreditation No.
Coal Trader, Coal End-User, or Coal Logistics Service Provider

, issued by the Department of Energy (DOE).

2. In connection with our application for renewal of said accreditation, | hereby certify
that the following documents, as previously submitted pursuant to Section 3.2 of
Department Circular No. DC2025-11-0027, remain valid, subsisting, and unchanged
as of the date of this certification:

A. For Coal Trader

Registration certificate from SEC/DTI/CDA

Proof of ownership or lease contract of the coal storage facility/ies

ECC/CNC from DENR

Proof of ownership of transportation vehicle/s or equipment or service
agreement with an accredited CLSP

List of vehicles and valid ORs/CRs and drivers’ licenses

List of barges/ships with registration and ownership documents

B. For Coal End-User
O) Registration certificate from SEC/DTI/CDA
O Technical specifications of coal-fired equipment and plant location map
O ECC and PTO from DENR
O Service agreement with accredited coal logistics provider

OO oooo

C. For Coal Logistics Service Provider

Registration certificate from SEC/DTI/CDA

Proof of ownership or lease contract of the coal storage and/or port facility/ies
ECC/CNC from DENR

Proof of ownership of transportation vehicle/s or equipment, for coal
conveyance

List of vehicles and valid ORs/CRs and drivers’ licenses

List of barges/ships with registration and ownership documents

Service agreement with accredited CT, CEU, COC D/P Operator, or SSCMP
Operator

OOO OOOO
=== dc2025-11-0027-pages-19.ppm ===
3. | further certify that should any of the above-listed documents be revoked, amended,
or otherwise rendered invalid, we shall immediately notify the DOE and submit the
updated documents within five (5) working days from the occurrence of such change.

4. |am executing this sworn certification to attest to the truthfulness of the foregoing, for
purposes of renewing our Certificate of Accreditation with the DOE.

IN WITNESS WHEREOF, | have hereunto set my hand on at
, Philippines.

a ee
Signature Over Printed Name of Authorized Representative

SUBSCRIBED AND SWORN to before me on the affiant
having exhibited to me his/her competent proof of identity:

Type of ID Presented:

ID Number:

NOTARY PUBLIC

Doc. No. :
Page No. :
Book No. ;
Series of
=== dc2025-11-0027-pages-20.ppm ===
. dase Department Circular No. DC2025-11-0027
Republic of the Philippines Annex C - CTP or SCTP Application Form
2) Y Department of Energy

(Kagawaran ng Enerhiya)

APPLICATION FORM FOR TRANSPORT PERMIT
Q COAL TRANSPORT PERMIT O SPECIAL COAL TRANSPORT PERMIT

DATE CONTROL NO.
COMPANY NAME

ACCREDITATION NUMBER

INVOICE NUMBER

INVENTORY MT AS OF

SOURCE OF COAL OQLOCAL
OCOC
OSSCMP

QOIMPORTED
COUNTRY
SUPPLIER

QCOAL TRADER

COAL LOGISTICS SERVICE PROVIDER
ADDRESS

VESSEL NAME/TRUCK PLATE NUMBER
VESSEL CAPTAIN/TRUCK DRIVER

QUANTITY MT DATE OF DELIVERY
POINT OF ORIGIN

BUYER
ADDRESS

FOR SCTP, INDICATE REASON/PURPOSE OF TRANSFER.

Signature

Printed Name of Authorized Representative

Designation
=== dc2025-11-0027-pages-21.ppm ===
Department Circular No. DC2025-11-0027
Annex D—- Request Form

Republic of the Philippines
E> DEPARTMENT OF ENERGY
y (Kagawaran ng Enerhiya)

REQUEST FOR CERTIFICATE OF COMPLIANCE

O Coal Importation O Coal Exportation

Date:

Accreditation number

FOR COAL IMPORTATION

Estimated date of arrival
Discharge port

Supplier

FOR COAL EXPORTATION

Signature

Name of Authorized Personnel

Designation