BOOK VII

Book VII Administrative Procedure of

Administrative Code of 1987

CHAPTER 1

General Provisions

SECTION 1. Scope.—This Book shall be applicable to all agencies as defined in the next
succeeding section, except the Congress, the Judiciary, the Constitutional Commissions,
military establishments in all matters relating exclusively to Armed Forces personnel, the
Board of Pardons and Parole, and state universities and colleges.

SECTION 2. Definitions.—As used in this Book:

(1) “Agency” includes any department, bureau, office, commission, authority or officer of
the National Government authorized by law or executive order to make rules, issue
licenses, grant rights or privileges, and adjudicate cases; research institutions with
respect to licensing functions; government corporations with respect to functions
regulating private right, privileges, occupation or business; and officials in the exercise of
disciplinary power as provided by law.

(2) “Rule” means any agency statement of general applicability that implements or
interprets a law, fixes and describes the procedures in, or practice requirements of, an
agency, including its regulations. The term includes memoranda or statements
concerning the internal administration or management of an agency not affecting the
rights of, or procedure available to, the public.

(3) “Rate” means any charge to the public for a service open to all and upon the same
terms, including individual or joint rates, tolls, classifications, or schedules thereof, as well
as commutation, mileage, kilometerage and other special rates which shall be imposed
by law or regulation to be observed and followed by any person.

(4) “Rule making” means an agency process for the formulation, amendment, or repeal
of a rule.

(5) “Contested case” means any proceeding, including licensing, in which the legal rights,
duties or privileges asserted by specific parties as required by the Constitution or by law
are to be determined after hearing.

(6) “Person” includes an individual, partnership, corporation, association, public or private

organization of any character other than an agency.

(7) “Party” includes a person or agency named or admitted as a party, or properly seeking
and entitled as of right to be admitted as a party, in any agency proceeding; but nothing
herein shall be construed to prevent an agency from admitting any person or agency as
a party for limited purposes.

(8) “Decision” means the whole or any part of the final disposition, not of an interlocutory
character, whether affirmative, negative, or injunctive in form, of an agency in any matter,
including licensing, rate fixing and granting of rights and privileges.

(9) “Adjudication” means an agency process for the formulation of a final order.

(10) “License” includes the whole or any part of any agency permit, certificate, passport,
clearance, approval, registration, charter, membership, statutory exemption or other form
of permission, or regulation of the exercise of a right or privilege.

(11) “Licensing” includes agency process involving the grant, renewal, denial, revocation,
suspension, annulment, withdrawal, limitation, amendment, modification or conditioning
of a license.

(12) “Sanction” includes the whole or part of a prohibition, limitation or other condition
affecting the liberty of any person; the withholding of relief; the imposition of penalty or
fine; the destruction, taking, seizure or withholding of property; the assessment of
damages, reimbursement, restitution, compensation, cost, charges or fees; the
revocation or suspension of license; or the taking of other compulsory or restrictive action.

(13) “Relief” includes the whole or part of any grant of money, assistance, license,
authority, privilege, exemption, exception, or remedy; recognition of any claim, right,
immunity, privilege, exemption or exception; or taking of any action upon the application
or petition of any person.

(14) “Agency proceeding” means any agency process with respect to rule-making,
adjudication and licensing.

(15) “Agency action” includes the whole or part of every agency rule, order, license,
sanction, relief or its equivalent or denial thereof.
CHAPTER 2

Rules and Regulations

SECTION 3. Filing.—(1) Every agency shall file with the University of the Philippines Law
Center three (3) certified copies of every rule adopted by it. Rules in force on the date of
effectivity of this Code which are not filed within three (3) months from that date shall not
thereafter be the basis of any sanction against any party or persons.

(2) The records officer of the agency, or his equivalent functionary, shall carry out the
requirements of this section under pain of disciplinary action.
(3) A permanent register of all rules shall be kept by the issuing agency and shall be open
to public inspection.

SECTION 4. Effectivity.—In addition to other rule-making requirements provided by law

not inconsistent with this Book, each rule shall become effective fifteen (15) days from
the date of filing as above provided unless a different date is fixed by law, or specified in
the rule in cases of imminent danger to public health, safety and welfare, the existence of
which must be expressed in a statement accompanying the rule. The agency shall take
appropriate measures to make emergency rules known to persons who may be affected
by them.

SECTION 5. Publication and Recording.—The University of the Philippines Law Center

shall:

(1) Publish a quarterly bulletin setting forth the text of rules filed with it during the
preceding quarter; and

(2) Keep an up-to-date codification of all rules thus published and remaining in effect,
together with a complete index and appropriate tables.

SECTION 6. Omission of Some Rules.—(1) The University of the Philippines Law Center
may omit from the bulletin or the codification any rule if its publication would be unduly
cumbersome, expensive or otherwise inexpedient, but copies of that rule shall be made
available on application to the agency which adopted it, and the bulletin shall contain a
notice stating the general subject matter of the omitted rule and new copies thereof may
be obtained.

(2) Every rule establishing an offense or defining an act which, pursuant to law is
punishable as a crime or subject to a penalty shall in all cases be published in full text.

SECTION 7. Distribution of Bulletin and Codified Rules.—The University of the

Philippines Law Center shall furnish one (1) free copy each of every issue of the bulletin
and of the codified rules or supplements to the Office of the President, Congress, all
appellate courts and the National Library. The bulletin and the codified rules shall be made
available free of charge to such public officers or agencies as the Congress may select,
and to other persons at a price sufficient to cover publication and mailing or distribution
costs.

SECTION 8. Judicial Notice.—The court shall take judicial notice of the certified copy of
each rule duly filed or as published in the bulletin or the codified rules.

SECTION 9. Public Participation.—(1) If not otherwise required by law, an agency shall,

as far as practicable, publish or circulate notices of proposed rules and afford interested
parties the opportunity to submit their views prior to the adoption of any rule.
(2) In the fixing of rates, no rule or final order shall be valid unless the proposed rates
shall have been published in a newspaper of general circulation at least two (2) weeks
before the first hearing thereon.

(3) In case of opposition, the rules on contested cases shall be observed.

CHAPTER 3

Adjudication

SECTION 10. Compromise and Arbitration.—To expedite administrative proceedings

involving conflicting rights or claims and obviate expensive litigations, every agency shall,
in the public interest, encourage amicable settlement, compromise and arbitration.

SECTION 11. Notice and Hearing in Contested Cases.—(1) In any contested case all
parties shall be entitled to notice and hearing. The notice shall be served at least five (5)
days before the date of the hearing and shall state the date, time and place of the hearing.

(2) The parties shall be given opportunity to present evidence and argument on all issues.
If not precluded by law, informal disposition may be made of any contested case by
stipulation, agreed settlement or default.

(3) The agency shall keep an official record of its proceedings.

SECTION 12. Rules of Evidence.—In a contested case:

(1) The agency may admit and give probative value to evidence commonly accepted by
reasonably prudent men in the conduct of their affairs.

(2) Documentary evidence may be received in the form of copies or excerpts, if the
original is not readily available. Upon request, the parties shall be given opportunity to
compare the copy with the original. If the original is in the official custody of a public officer,
a certified copy thereof may be accepted.

(3) Every party shall have the right to cross-examine witnesses presented against him
and to submit rebuttal evidence.

(4) The agency may take notice of judicially cognizable facts and of generally cognizable
technical or scientific facts within its specialized knowledge. The parties shall be notified
and afforded an opportunity to contest the facts so noticed.

SECTION 13. Subpoena.—In any contested case, the agency shall have the power to
require the attendance of witnesses or the production of books, papers, documents and
other pertinent data, upon request of any party before or during the hearing upon showing
of general relevance. Unless otherwise provided by law, the agency may, in case of
disobedience, invoke the aid of the Regional Trial Court within whose jurisdiction the
contested case being heard falls. The Court may punish contumacy or refusal as
contempt.

SECTION 14. Decision.—Every decision rendered by the agency in a contested case

shall be in writing and shall state clearly and distinctly the facts and the law on which it is
based. The agency shall decide each case within thirty (30) days following its submission.
The parties shall be notified of the decision personally or by registered mail addressed to
their counsel of record, if any, or to them.

SECTION 15. Finality of Order.—The decision of the agency shall become final and
executory fifteen (15) days after the receipt of a copy thereof by the party adversely
affected unless within that period an administrative appeal or judicial review, if proper,
has been perfected. One motion for reconsideration may be filed, which shall suspend
the running of the said period.

SECTION 16. Publication and Compilation of Decisions.—(1) Every agency shall publish
and make available for public inspection all decisions or final orders in the adjudication of
contested cases.

(2) It shall be the duty of the records officer of the agency or his equivalent functionary to
prepare a register or compilation of those decisions or final orders for use by the public.

SECTION 17. Licensing Procedure.—(1) When the grant, renewal, denial or cancellation
of a license is required to be preceded by notice and hearing, the provisions concerning
contested cases shall apply insofar as practicable.

(2) Except in cases of willful violation of pertinent laws, rules and regulations or when
public security, health, or safety require otherwise, no license may be withdrawn,
suspended, revoked or annulled without notice and hearing.

SECTION 18. Non-expiration of License.—Where the licensee has made timely and
sufficient application for the renewal of a license with reference to any activity of a
continuing nature, the existing license shall not expire until the application shall have been
finally determined by the agency.
CHAPTER 4

Administrative Appeal in Contested Cases

SECTION 19. Appeal.—Unless otherwise provided by law or executive order, an appeal

from a final decision of the agency may be taken to the Department head.

SECTION 20. Perfection of Administrative Appeals.—(1) Administrative appeals under

this Chapter shall be perfected within fifteen (15) days after receipt of a copy of the
decision complained of by the party adversely affected, by filing with the agency which
adjudicated the case a notice of appeal, serving copies thereof upon the prevailing party
and the appellate agency, and paying the required fees.
(2) If a motion for reconsideration is denied, the movant shall have the right to perfect his
appeal during the remainder of the period for appeal, reckoned from receipt of the
resolution of denial. If the decision is reversed on reconsideration, the aggrieved party
shall have fifteen (15) days from receipt of the resolution of reversal within which to perfect
his appeal.

(3) The agency shall, upon perfection of the appeal, transmit the records of the case to
the appellate agency.

SECTION 21. Effect of Appeal.—The appeal shall stay the decision appealed from unless
otherwise provided by law, or the appellate agency directs execution pending appeal, as
it may deem just, considering the nature and circumstances of the case.

SECTION 22. Action on Appeal.—The appellate agency shall review the records of the
proceedings and may, on its own initiative or upon motion, receive additional evidence.

SECTION 23. Finality of Decision of Appellate Agency.—In any contested case, the
decision of the appellate agency shall become final and executory fifteen (15) days after
the receipt by the parties of a copy thereof.

SECTION 24. Hearing Officers.—(1) Each agency shall have such number of qualified
and competent members of the base as hearing officers as may be necessary for the
hearing and adjudication of contested cases.

(2) No hearing officer shall engaged in the performance of prosecuting functions in any
contested case or any factually related case.

SECTION 25. Judicial Review.—(1) Agency decisions shall be subject to judicial review
in accordance with this chapter and applicable laws.

(2) Any party aggrieved or adversely affected by an agency decision may seek judicial
review.

(3) The action for judicial review may be brought against the agency, or its officers, and
all indispensable and necessary parties as defined in the Rules of Court.

(4) Appeal from an agency decision shall be perfected by filing with the agency within
fifteen (15) days from receipt of a copy thereof a notice of appeal, and with the reviewing
court a petition for review of the order. Copies of the petition shall be served upon the
agency and all parties of record. The petition shall contain a concise statement of the
issues involved and the grounds relied upon for the review, and shall be accompanied
with a true copy of the order appealed from, together with copies of such material portions
of the records as are referred to therein and other supporting papers. The petition shall
be under oath and shall how, by stating the specific material dates, that it was filed within
the period fixed in this chapter.
(5) The petition for review shall be perfected within fifteen (15) days from receipt of the
final administrative decision. One (1) motion for reconsideration may be allowed. If the
motion is denied, the movant shall perfect his appeal during the remaining period for
appeal reckoned from receipt of the resolution of denial. If the decision is reversed on
reconsideration, the appellant shall have fifteen (15) days from receipt of the resolution
to perfect his appeal.

(6) The review proceeding shall be filed in the court specified by statute or, in the absence
thereof, in any court of competent jurisdiction in accordance with the provisions on venue
of the Rules of Court.

(7) Review shall be made on the basis of the record taken as a whole. The findings of fact
of the agency when supported by substantial evidence shall be final except when
specifically provided otherwise by law.

SECTION 26. Transmittal of Record.—Within fifteen (15) days from the service of the
petition for review, the agency shall transmit to the court the original or a certified copy of
the entire records of the proceeding under review. The record to be transmitted may be
abridged by agreement of all parties to the proceedings. The court may require or permit
subsequent correction or additions to the record.