Section 38Sec./Art. 38

Prohibited Acts. Any natural or juridical person, whether an LPG industry participant or otherwise, shall be prohibited from the following acts:

(a) Engaging in activities without the required licenses, permits, and certificates under this Act, specifically:

(1) Engaging in an activity without a valid license to operate or registration from the DOE, whichever is applicable, business permit, and other required licenses and certificates issued by relevant agencies, and

(2) Manufacturing and repairing of LPG pressure vessels, manufacturing of LPG seals, and requalifying LPG pressure vessels without a valid license, permit, and certificate from the DTI.

(b) Engraving in activities with or as an unauthorized person, specifically:

(1) Knowingly transacting with, or selling or distributing LPG., LPG pressure vessels, or LPG seals to an LPG industry participant who does not have the required licenses, certificates, clearances, or permits, whichever is applicable,

(2) Manufacturing, distributing, refilling, or selling LPG cylinders carrying a trademark or trade name without the express approval of the trademark owner,

(3) Selling, exchanging, bartering, distributing, transferring, or possessing of empty LPG cylinders by any LPG industry participant other than the trademark owner or without its consent outside the LPG Cylinder Exchange and Swapping Program pursuant to Section 31 of this Act, and

(4) Possessing LPG seals, including the seals already used in LPG cylinders, without authority from the trademark or trade name owner or its duly authorized reseller;

(c) Failing to comply with the standards, requirements, and guidelines under this Act, specifically:

(1) Failing to comply with the standards and requirements on:

(i) Safety design including fire safety requirements for refining plants, refilling plants, depots, storage areas, motor vehicles, retail outlets, warehouses, auto-LPG conversion shops, auto-LPG dispensing stations, and other related facilities of LPG industry participants,

(ii) Safety practices,

(iii) LPG, and

(iv) Measuring devices,

(2) Fabricating and manufacturing of LPG pressure vessels using substandard materials,

(3) Manufacturing of LPG pressure vessels without the necessary markings and safety and quality marks as required by the PNS, or the standard governing LPG pressure vessel manufacture, requalification, and repair, whichever is applicable,

(4) Stamping or marking wrong, misleading, incorrect, or inaccurate information on LPG pressure vessels, whichever is applicable,

(5) Creating or manufacturing of illegal or fake LPG seals, and

(6) Failing to comply with the safety design and requirements, permits, and clearances of motor vehicles transporting LPG in bulk and LPG cylinders and cartridges;

(d) Engaging in activities involving LPG and LPG pressure vessels that are noncompliant with the standards, requirements, and guidelines under this Act, specifically:

(1) Importing used or second-hand LPG pressure vessels,

(2) Importing brand new LPG pressure vessels noncompliant with PNS and without a valid certificate or license from the DTI,

(3) Selling and distributing defective, injurious, unsafe, dangerous, noncompliant, or substandard LPG pressure vessels,

(4) Selling or distributing refilled LPG cartridges,

(5) Selling or distributing LPG-filled cylinders without a seal, with a tampered fake, or broken seal, inappropriate or unauthorized seal, or with a seal not belonging to the trademark owner,

(6) Selling or distributing LPG pressure vessels without the necessary markings and safety and quality marks as required by the PNS, or the standard governing LPG pressure vessel manufacture, requalification, and repair, whichever is applicable,

(7) Selling or distributing LPG through means other than in LPG pressure vessels, using tool other than ancillary equipment compliant with the PNS, or through other contractual arrangements not recognized in this Act,

(8) Filling LPG pressure vessels with LPG mixed with another finished or unfinished petroleum or non-petroleum products, substance, or material resulting in the failure of the LPG to meet the required PNS. The possession of LPG pressure vessels containing adulterated LPG shall be prima facie evidence of violation of this provision,

(9) Selling of adulterated LPG in bulk and in pressure vessels,

(10) Refilling LPG cartridges,

(11) Hauling, loading, transporting, or permitting the loading and transportation of LPG in bulk, or LPG-filled cylinders or cartridges in quantities greater than the rated capacity of the motor vehicle or in such a manner that endangers the life and safety of its passengers or the public,

(12) Storing LPG in pressure vessels more than the volume prescribed in Republic Act No. 9514 and its revised implementing rules and regulations,

(13) Selling or storing entry LPG cylinders of other trademark owners in excess of those allowed under the LPG Cylinder Exchange and Swapping Program guidelines upon its effectivity pursuant to Section 31 of this Act, and

(14) Possessing illegal or fake LPG seals;

(e) Failing to comply with the responsibilities as an LPG industry participant, specifically:

(1) Failing to submit periodic reports as may be required pursuant to Section 6 of this Act,

(2) Refusing, preventing, or obstructing the inspection of its premises and records pursuant to Section 6 of this Act,

(3) Refusing or failing to participate in the LPG Cylinder Exchange and Swapping Program, and LPG Cylinder Improvement Program pursuant to Sections 31 and 32 of this Act,

(4) Failing to submit the certification pursuant to Section 34 of this Act, and

(5) Failing to comply with other responsibilities in Chapter III hereof;

(f) Engaging in the following:

(1) Destroying, tampering, altering, or modifying LPG pressure vessel through any means such as, but not limited to, changing the LPG cylinder valve, repainting and relabeling, whichever is applicable: Provided, That this shall not be prohibited if it is done by the trademark owner,

(2) Preventing end-consumers from purchasing LPG from trademark owners, marketers, refillers, dealers, or retail outlets,

(3) Refusing to refund the deposit on the LPG cylinder to any end-consumer, in the case of a trademark or trade name owner and its duly authorized dealer or retail outlet in accordance with the implementing rules and regulations of this Act,

(4) Adulterating LPG,

(5) Pilfering LPG, and

(6) Utilizing the LPG Cylinder Improvement fund for purposes other than what it is intended for.