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AMENDMENT OF 
ADMINISTRATIVE ORDER 56 s. 1989 
JOSELYN R. GUZMAN, RPh,MPA 
FDRO II
SUBJECT: Rules and Regulations on the Licensing 
of Drug Establishments and Other Related 
Authorizations Further Amending for this Purpose 
Administrative Order No. 56 s. 1989 on the 
“Revised Regulations for the Licensing of Drug 
Establishments and Outlets,” and for other 
Purposes
A.O. 56 s. 1989 
Pursuant to Section 26(a) in relation 
to Section 21(a) and 11(k) of 
Republic Act No. 3720, known as the 
Foods, Drugs and Devices, and 
Cosmetics Act as amended by 
Executive Order No. 175 s. 1987 and 
consistent with Republic Act No. 
6675, known as the Generic Act of 
1988, the following regulations are 
hereby promulgated governing drug 
establishments and drug outlets 
under the Bureau of Food and Drugs 
(BFAD). 
Revised Guidelines 
I. RATIONALE 
II. AUTHORITY/BASES 
III. OBJECTIVES 
IV. SCOPE 
…
I. RATIONALE 
Section 15, Article II of the 1987 Constitution 
declared it the policy of the State to protect and promote 
the right to health of the people and instill health 
consciousness among them. The Constitution also 
mandates the State to adopt an integrated and 
comprehensive approach to health development which 
shall endeavor to make essential goods, health and other 
social services available to all the people at affordable cost 
(Section 11, Article XIII).
I. RATIONALE 
Republic Act No. 3720 as amended by RA 9711 and 
its implementing rules and regulations, and RA 7394, in 
implementing the above Constitutional policy, declares 
further as a policy of the State to insure safe and good 
quality of food, drugs, and cosmetics, and to regulate the 
production, sale, and traffic of the same to protect the 
health of the people. In so doing, the same laws, empower 
the Food and Drug Administration to issue licenses to 
establishments manufacturing and/or distributing 
pharmaceutical products.
I. RATIONALE 
Republic Act No. 8792 or the “Electronic Commerce Act of 
2000” declares it as an objective to facilitate domestic and 
international dealings, transactions, arrangements, agreements, 
contracts and exchanges, and storage of information through the 
utilization of electronic, optical and similar medium, mode, 
instrumentality and technology to recognize the authenticity and 
reliability of electronic documents related to such activities and to 
promote the universal use of electronic transaction in the 
government and general public. The above objective of RA 8792 
and its Implementing Rules and Regulations mandate the use of 
electronic data messages, electronic document and electronic 
signatures in government transactions.
I. RATIONALE 
Republic Act No. 9502, otherwise known as the 
“Universally Accessible Cheaper and Quality Medicines Act 
of 2008” and its Implementing Rules and Regulations 
provides as a policy of the State that when the public 
interest or circumstances of extreme urgency so require, it 
shall adopt appropriate measures to promote and ensure 
access to affordable quality pharmaceutical products for all 
through an effective competition policy in the supply and 
demand thereof.
I. RATIONALE 
Therefore, pursuant to the foregoing, to streamline 
regulatory approaches in licensing of drug establishments; 
provide faster access of pharmaceutical products to the 
public; and promote transparency through the universal 
use of electronic transaction in the government and general 
public, the following rules and regulations in the licensing 
of drug establishments as provided below are hereby 
adopted and prescribed for the information and 
compliance of all concerned.
II. AUTHORITY/BASES 
This Order is issued by virtue under: 
•Section 26 of Republic Act No. 3720 as amended by Republic Act 9711 
otherwise known as “FDA Act of 2009”; 
•Republic Act No. 7394 or the “Consumer Act of the Philippines”; 
•Republic Act No. 9502, otherwise known as the “Universally Accessible 
Cheaper and Quality Medicines Act of 2008”; 
•Republic Act No. 6675 or the “Generics Law of 1988” as amended; 
•Republic Act No. 5921 or “The Pharmacy Law” as amended; 
•Executive Order No. 292 or the Administrative Code of 1987; 
•and Section 27, Part IV of Republic Act No. 8792 or the “Electronic 
Commerce Act of 2000.”
III. OBJECTIVES 
1. Further amend the existing rules and regulations in the 
licensing of drug establishments to align with the 
recently promulgated laws and adopted policies 
affecting drug establishments; 
2. Ensure the public that establishments licensed by FDA 
comply with current regulatory standards such as, but 
not limited to, Good Manufacturing Practice (GMP), 
Good Distribution Practice (GDP), Good Storage Practice 
(GSP), Good Pharmacy Practice (GPP) and Good 
Dispensing Practice.
III. OBJECTIVES 
3. Prescribe the use and implementation of new 
innovations, such as but not limited to, electronic data 
messages, electronic submission of documents and 
electronic signatures in the Food of Drug Administration 
pursuant to Republic Act No. 8792 or the “Electronic 
Commerce Act of 2000.”
IV. SCOPE 
– This Order shall apply to all drug establishments, including local 
government units, government owned and controlled 
corporations, non-government organizations, other government 
offices and instrumentalities engaged in the manufacture, 
importation, exportation, sale, offer for sale, distribution in 
wholesale and/or retail basis and transfer of pharmaceutical 
product. 
– Entities engaged in the activities such as donation, promotion, 
advertising, or sponsorship of pharmaceutical product shall be 
responsible therefor and shall secure an authorization.
A.O. 56 s. 1989 
In accordance with Section 3 Paragraph 
5 & 6 of RA 6675, any organization, 
company or business establishments in the 
pharmaceutical industry shall fall under the 
following general classifications; 
I. Drug Establishment means any 
organization or company involved in the 
manufacture, importation, 
repacking and/or distribution of drugs or 
medicines. This is covered by Chapter I 
below. 
II. Drug Outlet means drugstore, 
pharmacy, and other business 
establishment which sells drugs or 
medicines. This is covered by Chapter II 
below. 
Revised Guidelines 
V. DEFINITION OF TERMS 
VI. GENERAL PROVISION
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
1. FDA – shall refer to the Food and Drug Administration 
2. Drug Establishment – a sole proprietorship, a partnership, a 
corporation, an institution, an association, or an organization 
engaged in the manufacture, importation, exportation, sale, 
offer for sale, distribution in wholesale and/or retail basis, 
donation, transfer, use, testing, promotion, advertising, or 
sponsorship of pharmaceutical product including the facilities 
and installations needed for its activities
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
3. PIC/S – means Pharmaceutical Inspection Co-operation 
Scheme 
4. Pharmaceutical products – are the same as drug or 
medicinal products as defined in AO 2012-0008 “Adoption 
and Implementation of PIC/S Guides for the Good 
Manufacturing Practice for Medicinal Products
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
5. License to Operate (LTO) – is an authorization or permission 
embodied in a document granted by FDA to any natural or 
juridical person engaged in the manufacture, importation, 
exportation, sale, offer for sale, distribution, and transfer of 
pharmaceutical products 
6. Professional Regulation Commission (PRC)- is a national 
government agency created by Presidential Decree (P.D.) No. 
223 dated June 22, 1973
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
7. Special Permit- is a form of authorization granted to 
national government, local government unit, non-government 
organization and other entities that procures 
medicines for use of their constituents, medical missions and 
other health programs, and other purposes such as donation, 
promotion, advertising, or sponsorship of pharmaceutical 
product
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
8. Pharmacy Compounding - is a practice in which a licensed 
pharmacist combines, mixes, or alters ingredients in response 
to a prescription to create a medication tailored to the 
medical needs of an individual patient
V. DEFINITION OF TERMS 
As used in this Order, the following words, phrases or terms shall have 
the following meaning: 
9. Specialty pharmaceuticals - generally defined as products 
used to treat chronic, high-cost, or rare diseases and can be 
injectable, infusible, oral, or inhaled medications
VI. GENERAL PROVISIONS 
A. No drug establishment shall manufacture, import, export, sell, 
offer for sale, distribute, transfer, promote, advertise and/or 
sponsor any activity that involves pharmaceutical product, 
without a license or appropriate authorization from FDA 
pursuant to this Order. 
B. The recipient of donated pharmaceutical products, whether 
foreign or locally manufactured, for purposes of either medical 
missions or other health related programs, shall secure a special 
permit prior to the product’s distribution. The products covered 
herein shall not be available for sale in the market.
VI. GENERAL PROVISIONS 
C. Any pharmaceutical product sold in its original packaging 
(container), the seal of which has not been broken or tampered 
with, the liability of ensuring its safety, efficacy, quality and/or 
purity, rests upon all the stakeholders involved in the supply 
chain shall be held liable thereof. 
D. All drug distributors shall not sell directly to the general public 
or consumer, unless they have license as a retailer. 
E. The application must meet the required documentary and/or 
technical requirements or appropriate standards.
VI. GENERAL PROVISIONS 
F. Misrepresentations, false entries, or withholding of any relevant 
data contrary to the provisions of the law, rules and regulations 
or appropriate standards shall mean disapproval of the 
application. 
G. A violation with any of the terms and conditions of its license 
shall likewise result in the disapproval of the application. 
H. Applications may also be disapproved for similar causes as 
determined by the FDA.
VI. GENERAL PROVISIONS 
I. All licensed drug establishments must continuously comply with 
the existing requirements, regulations and standards, otherwise 
the establishment may be ordered close or their licenses 
suspended or revoked motu proprio or upon petition by any 
person. 
J. Any pharmaceutical product imported or offered for import, the 
sale or use of which has been banned or withdrawn for health 
and safety reasons in the country of manufacture or country of 
origin, shall likewise be banned and refused admission in the 
Philippines.
VI. GENERAL PROVISIONS 
K. Any pharmaceutical product that is declared by the Secretary of 
Health or the FDA Director-General to be imminently injurious, 
unsafe or dangerous shall be ordered for their immediate recall, 
seizure or banning from public sale or distribution. 
L. All entities, whether government or non-government offices, 
that regularly procure medicines on wholesale basis from any 
FDA authorized drug establishment for use of their constituents 
must be licensed as a drugstore/pharmacy or distributor (see 
Sec. 25 of RA 5921 and RA 3720)
VI. GENERAL PROVISIONS 
M.Institutional Pharmacies procuring medicines on a wholesale 
basis from any FDA authorized drug establishment for use of 
their employees and dependents must likewise be licensed as 
drugstore/ pharmacy. 
N. Every pharmacy, drugstore, institutional or hospital pharmacy 
whether owned by the government or a private person or firm 
shall at all times when open for business be under the personal 
and immediate supervision of a registered pharmacist except 
otherwise allowed by pertinent laws.
VI. GENERAL PROVISIONS 
O.All establishment applying for a license to manufacture, import, 
distribute, sell vaccines and other biological products are 
hereby directed to comply with the Cold Chain Management 
requirement. Likewise, existing establishment handling the 
same shall upgrade their cold chain management capabilities. 
P. The FDA shall have the authority to verify all original or 
authenticated copies of the submitted documents for LTO (See 
Sec 27 & 28 of RA 3720).
VI. GENERAL PROVISIONS 
Q. The FDA shall endeavor to integrate all electronic submissions 
or processes into electronic format pursuant to Republic Act 
No. 8792 or the “Electronic Commerce Act of 2000” 
R. Rule 17. Non-Discriminatory Clause of IRR of RA 9502: 
Section 1. General Rule 
Section 2. Patented Drugs 
Section 3. Permit to Import and Distribute 
Section 4. Requirements for Request for Mandatory Carry 
Section 5. Mandatory Carry 
Section 6. Refusal to Sell Drugs and Medicines
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
VII. Classification of 
DRUG ESTABLISHMENTS
VII A. Drug Manufacturer 
A.O. 56 s. 1989 
any establishment engaged in operations 
involved in the production of a drug, 
including propagation, processing, 
compounding, finishing, filling, packing, 
repacking, altering, ornamenting and 
labelling with the end in view of 
storage, distribution or sale of the 
product: provided that for the purpose 
of this regulation the compounding 
and filling of prescriptions in 
drugstores and hospital pharmacies 
shall not be considered as production 
operations. 
Revised Guidelines 
any establishment engaged in any and all 
operations involved in the production of 
pharmaceutical products including 
preparatory processing, compounding, 
formulating, filling, packaging, 
repackaging, altering, ornamenting, 
finishing and labeling with the end in view 
of its storage, sale or distribution; 
provided, that the term shall not apply to 
the compounding and filling of 
prescriptions in drugstores and hospital 
pharmacies.
VII A. Drug Manufacturer 
a “DRUG MANUFACTURER” can be further classified into the following: 
•DRUG MANUFACTURER-REPACKER 
•DRUG MANUFACTURER-PACKER 
•DRUG MANUFACTURER-TRADER 
Drug Trader under A.O. 56 is now classified as a drug 
manufacturer
VII A. Drug Manufacturer 
a “DRUG MANUFACTURER” can be further classified into the following: 
•DRUG MANUFACTURER-REPACKER 
refers to any establishment that repacks a finished drug product into smaller 
quantities in a separate container and/or into secondary packaging, 
including but not limited to 
•Relabeling 
•Stickering 
•bundling for promo packs 
with the end view of storage, distribution, or sale of the product. Provided, it shall 
not cover repacking of drugs at the time of purchase for purposes of dispensing.
VII A. Drug Manufacturer 
a “DRUG MANUFACTURER” can be further classified into the following: 
•DRUG MANUFACTURER-REPACKER 
•DRUG MANUFACTURER-PACKER 
refers to any establishment that packages a bulk drug product into its immediate 
container with the end view of storage, distribution, or sale of the product.
VII A. Drug Manufacturer 
a “DRUG MANUFACTURER” can be further classified into the following: 
•DRUG MANUFACTURER-REPACKER 
•DRUG MANUFACTURER-PACKER 
•DRUG MANUFACTURER-TRADER 
refers to any establishment which is a registered owner of a pharmaceutical product 
and the formulation and procures the raw materials and packing components, and 
provides the production monographs, quality control standards and procedures, but 
subcontracts the manufacture of such product to a licensed manufacturer. 
In addition, a trader may also engage in the distribution and or marketing of its 
products. A trader shall be categorized as a manufacturer.
VII B. Drug Distributor/Exporter 
A.O. 56 s. 1989 Revised Guidelines 
any drug establishment 
that exports raw materials, 
active ingredients and/or 
finished products to another 
country 
any establishment that 
exports raw materials, active 
ingredients and finished 
products for distribution to 
other drug establishments 
outside the country.
VII C. Drug Distributor/Importer 
A.O. 56 s. 1989 Revised Guidelines 
any establishment that 
imports raw materials, active 
ingredients and/or finished 
products for its own use or 
for wholesale distribution to 
other drug establishments 
or outlets 
any establishment that 
imports raw materials, active 
ingredients and/or finished 
products for wholesale 
distribution to other local 
FDA- licensed drug 
establishment.
VII D. Drug Distributor-Wholesaler 
A.O. 56 s. 1989 Revised Guidelines 
any drug establishment 
that exports raw materials, 
active ingredients and/or 
finished products from local 
establishments for local 
distribution on wholesale 
basis. 
any establishment that 
procures raw materials, 
active ingredients and/or 
finished products from a 
local FDA licensed drug 
establishment for local 
distribution on wholesale 
basis.
VII E. Drugstore/Pharmacy/Botica and similar outlets 
such as Hospital Pharmacy and Institutional Pharmacy 
A.O. 56 s. 1989 Revised Guidelines 
a drug outlet where 
registered drugs, chemical 
products, active principles, 
proprietary medicines or 
pharmaceutical specialties 
and dental medicinal, 
galenical or veterinary 
preparations are compounded 
and/or dispensed. 
drug establishment where 
registered drugs, chemical 
products, specialty pharmaceutical 
and dental, medicinal and 
household remedies are dispensed 
directly to the general public on a 
retail basis. 
Botika ng Barangay and its variants 
that sell prescription product shall 
be reclassified and required to 
secure LTO as a drugstore.
VII F. Retail Outlet for Non-Prescription Drugs 
(RONPD) 
A.O. 56 s. 1989 Revised Guidelines 
including non-traditional outlets such as 
supermarkets and stores, means a drug 
outlet where registered non-prescription 
or Over-the-Counter (OTC) drugs are sold 
in their original packages, bottles or 
containers or in smaller quantities not in 
their original containers 
drug establishments such as 
supermarkets, convenient stores and other 
similar retail establishments licensed to sell 
registered non-prescription or Over-the- 
Counter (OTC) drugs which are sold in 
their individual original and primary 
packaging and are dispensed directly to 
the general public on a retail basis. 
Botika ng Barangay and its variants that 
sell non-prescription or OTC product only 
shall be reclassified and required to secure 
LTO as a RONPD.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII.Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
VIII. Requirements for Securing an LTO 
Any qualified natural or juridical person 
desiring to engage or operate in the 
manufacture, packing, repacking, importation, 
exportation, sale, offer for sale, distribution or 
transfer of pharmaceutical products shall 
comply with the requirements that FDA is 
authorized to promulgate through the 
appropriate issuance including amendments 
thereto.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
IX. Renewal of LTO 
A.O. 56 s. 1989 
The License to Operate shall have 
the following validities for all 
categories of drug establishments: 
•Initial Application- 1 year 
•Renewal Application- 2 years 
At least one month prior to the 
expiration of the LTO, drug 
establishments shall apply to renew 
their license. 
In considering the renewal application, 
BFAD shall ascertain the continued 
compliance by the establishment with 
the standards and requirements (General 
and Specific requirements) 
Revised Guidelines 
Stipulated in Section XIII 
Application for regular renewal of 
license may be filed within six months 
from its expiration. 
Applications for Automatic Renewal 
Detailed in Sections VIII, X, XI, XII, XIII
IX. Renewal of LTO 
A.O. 56 s. 1989 
In case of renewal of LTO, the 
drug outlet must have a history of 
satisfactory performance, consistent 
with BFAD standards and 
requirements, without any cases of 
serious violation of laws, rules and 
regulations 
Revised Guidelines 
Detailed in Sections VIII, X, XI, XII, XIII
IX. Renewal of LTO (A) 
Application for regular renewal of license may be filed within six 
months from its expiration. 
An application received after expiration of the LTO shall be subject to a 
surcharge or penalty equivalent to twice the renewal licensing fee and 
an additional ten percent (10%) per month or a fraction thereof of 
continuing non-submission of such application up to a maximum of 
one hundred twenty (120) days. 
OLD AO56: 
A surcharge of fifty percent (50%) of the above fees shall be issued on 
application for renewal filed after the validity of the license has lapsed. (AO 56 
Chapter 2, Section 6)
IX. Renewal of LTO (A) 
Any application for renewal of license filed beyond the 120 days after 
the original expiration shall be considered expired and shall be subject 
to a fee equivalent to the total surcharge or penalty plus the initial 
license fee. Such application shall undergo the initial filing and 
evaluation procedure.
IX. Renewal of LTO (A) 
For applications for renewal filed within one hundred twenty (120) days 
from its original expiry, the LTO shall be considered valid and existing 
until a decision or resolution by the FDA is rendered on the application 
for renewal.
IX. Renewal of LTO (B) 
The Automatic Renewal 
Automatic renewal shall apply to the following conditions: 
1. The application is filed before the expiration date; 
2. The prescribed renewal fee is paid upon filing of the application; 
3. A sworn statement indicating no change or variation whatsoever in 
the establishment is attached to the application.
IX. Renewal of LTO (C) 
In considering both renewal application, FDA shall ascertain the 
continued compliance by the establishment with the existing standards 
and requirements. In either case above, the instances provided in Section 
4, Article I, Book II of the IRR of RA 9711(Paragraph E, Item VI above) shall 
be grounds for non-renewal of application. 
“Paragraph E, Item VI 
E. The application must meet the required documentary and/or technical 
requirements or appropriate standards.”
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
Standards and Requirements for 
License to Operate ( AO56 ) 
Documentary requirements specified in Sections I.2 and 
II.2 “Standards and Requirements” in AO 56 are 
transfered in the proposed FDA Circular: 
Guidelines on the Implementation of Rules and Regulations on 
the Licensing of Drug Establishments and Other Related 
Authorizations Further Amending for this Purpose 
Administrative Order No. 56 s. 1989 on the “Revised 
Regulations for the Licensing of Drug Establishments and 
Outlets,” and for other Purposes
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
X. Application for Amendment 
FDA shall issue a certification for those FDA licensed 
establishments applying for amendment during the validity of 
their Licenses to Operate. 
This certification shall form an integral part of the LTO attachment 
issued at the time of LTO renewal. Consequently, all amendments 
shall be incorporated once the LTO is re-issued for renewal. Thus, 
previous LTO and certifications related to amendments shall be 
surrendered to this Office.
X. Application for Amendment 
Amendment referred hereto shall include the following: 
1. Inclusion or deletion of product (finished or raw material) and/or product line 
2. Inclusion or deletion of sources (including toll manufacturer/repacker, trader) 
3. Change in business name/address of the source and/or manufacturer 
4. Change of key personnel for Quality Assurance, Quality Control, Production Manager, 
Authorized Person and Pharmacist as reflected in the LTO 
5. Inclusion or deletion of activity e.g. from Manufacturer to Toll Manufacturer/ 
Repacker/ Importer/Exporter or Trader to Trader/ Importer/ Exporter 
(raw materials or finished bulk products)
X. Application for Amendment 
Other amendments, as enumerated below, shall require re-issuance 
of License to Operate after the conduct of inspection as these 
particulars are reflected in the LTO itself: 
•Change of business name, ownership and transfer of location of 
the establishment 
•Re-classification of the establishment (e.g. from 
Distributor/Importer to Distributor/Wholesaler), except for those 
which were reclassified into another class of establishment (e.g. 
from Distributor/Importer/ Wholesaler to Trader).
X. Application for Amendment 
NOTE: 
Change of Address for drug manufacturer is considered 
opening, hence all the documentary requirements for 
initial application shall be submitted and payment of the 
initial license fee shall be made.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
XI. Licensing Process 
A. Filing of Applications 
B. Where to File 
C. Period to File
XI. Licensing Process 
A. Filing of Applications 
An application, whether initial, renewal, automatic 
renewal or amendment, is deemed filed upon 
submission of duly accomplished application form and 
Self-Assessment Checklist (SAC) with the complete 
attached required documents, payment of required fees 
and acceptance of the authorized FDA officer. 
Any application not pursued by the applicant within three (3) 
months from filing shall be deemed discarded and will be 
automatically cancelled and delisted from the application list.
XI. Licensing Process 
A. Filing of Applications 
B. Where to File 
An application shall be filed with the respective Regional 
Field Offices having jurisdiction over the establishment 
or as defined in accordance with issuance.
XI. Licensing Process 
A. Filing of Applications 
B. Where to File 
C. Period to File 
Initial application. It shall be filed prior to operation subject to 
compliance of the requirements and conduct of site inspection but in 
no case shall the establishment commence to operate until the 
issuance of the corresponding License to Operate. 
Renewal application. Regular renewal shall be filed six (6) months prior 
to expiration of the original validity of the LTO. 
Automatic renewal shall be filed prior to the expiration of the original 
validity of the LTO.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
XII. Licensing Guidelines 
A. Place of Business, Warehouse or Plant 
B. Display of Signboard and License 
C. Request for Information
XII. Licensing Guidelines 
A. Place of Business, Warehouse or Plant 
All the office, warehouse and plant shall be covered by a single license 
notwithstanding their distance or different locations within one 
locality indicating merely their address in the license, except when 
any of the office, warehouse and plant carries an entirely different 
and complete stage of operation for different product, in which case, 
each shall be covered by separate license. In this instance, the 
principal office address shall be reflected at the front page of the LTO 
while the others at the back page thereof or secondary page 
appended thereto. 
The place of business should be situated in accordance with the zonal 
site.
XII. Licensing Guidelines 
A. Place of Business, Warehouse or Plant 
B. Display of Signboard and License 
Every licensed establishment shall cause the public display the duly 
issued license in a conspicuous place within the premises of the 
establishment.
XII. Licensing Guidelines 
A. Place of Business, Warehouse or Plant 
B. Display of Signboard and License 
C. Request for Information 
Any request for information whether by the company or any 
other party shall be governed by the existing policies on 
disclosure.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
XIII. License to Operate 
A. Validity 
All Licenses to Operate shall have the following validity for any 
classification of drug establishments from the date of 
issuance reflected as such and renewal thereafter. 
a. Initial – Initial LTO issued shall be valid for one year 
b. Renewal- Renewed LTO shall be valid for two years 
In either case, the LTO shall be valid only in the address indicated 
therein and the warehouse or plant covered.
XIII. License to Operate 
B. Lost or Destroyed LTO 
An LTO shall be re-issued upon the filing of request with affidavit 
of loss or affidavit of such destruction and other documents 
whenever necessary and payment of the prescribed fee. 
Provided that there is no change whatsoever in the 
establishment, otherwise the same shall be treated as 
amendment or initial as the case may be.
XIII. License to Operate 
C. Cancellation of LTO 
a. Automatic 
Any application for renewal of a LTO filed after one-hundred 
twenty (120) days after the expiration of the original validity 
shall be automatically considered expired and cancelled. 
Likewise, unrenewed LTO for successive years shall be 
automatically cancelled and deleted from the list of 
registered establishments.
XIII. License to Operate 
C. Cancellation of LTO 
b. Voluntary 
The owner or authorized person of a licensed establishment 
may apply before the FDA or its regional field office having 
jurisdiction over the establishment for voluntary cancellation 
of its existing license by filing a formal notification together 
with the original LTO issued, or in case of loss or destruction, 
an appropriate affidavit therefore. 
Any voluntary cancellation intended to defraud the government, its creditors, and/or its 
workers shall not deprive FDA jurisdiction to perform acts in ensuring the safety of the 
public.
XIII. License to Operate 
C. Cancellation of LTO 
c. Involuntary 
This shall be effected only on the grounds and procedures 
provided in the Rules of Administrative Procedure provided 
in the IRR OF RA 9711 or other relevant rules and regulations 
in case of violation or upon petition by any party. 
Nothing in this section shall restrict the FDA or the DOH in 
imposing the penalty of suspension, revocation, or 
cancellation of LTO or other authorization for administrative 
violations of any other relevant laws or their implementing 
rules and regulations.
XIII. License to Operate 
C. Cancellation of LTO 
Any notice of disapproval of applications for license or 
authorization or suspension, revocation, or cancellation of an 
existing license, or authorization must clearly state the 
ground/s on which the disapproval, suspension, revocation, 
or cancellation is based.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
XIV. Violations and Administrative Sanctions 
A.O. 56 s. 1989 Revised Guidelines 
CHAPTER I - DRUG ESTABLISHMENTS 
4.1. Grounds for Revocation of LTO 
4.2. Grounds for Suspension of LTO 
CHAPTER II - DRUG OUTLETS 
4.1. Temporary Closure 
4.2. Suspension of License to Operate 
4.3. Revocation of License to Operate 
Violations and administrative 
sanctions shall be covered by a 
separate issuance. 
A.Re-application after Disapproval 
B.Resumption after Suspension 
C.Re-application after Revocation
XIV. Violations and Administrative Sanctions 
Violations and administrative sanctions shall be 
covered by a separate issuance. 
A.Re-application after Disapproval 
B.Resumption after Suspension 
C.Re-application after Revocation
XIV. Violations and Administrative Sanctions 
A. Re-application after Disapproval 
The disapproval of an application is without 
prejudice to re-application. However, 
disapproval of application shall mean outright 
forfeiture of payment.
XIV. Violations and Administrative Sanctions 
B. Resumption after Suspension 
The lifting of the order of suspension and the 
resumption of the operation of an 
establishment that have been issued a 
suspension of its LTO, shall take effect only 
after due application and satisfactory 
compliance of the deficiencies for which it was 
suspended.
XIV. Violations and Administrative Sanctions 
C. Re-application after Revocation 
Unless permanently barred, any establishment 
whose LTO have been revoked may apply for 
initial application after three years from date of 
revocation.
A.O. 56 s. 1989 Revised Guidelines 
… I. Drug Establishments 
1. Definition 
2. Standards and Requirements for 
License to Operate (LTO) 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
II. Drug Outlets 
1. Definition 
2. Standards and Requirements for 
LTO 
3. Renewal of LTO 
4. Administrative Sanctions 
5. Schedule of Fees 
.... 
VII. Classification of Drug 
Establishments 
VIII. Requirements for Securing an LTO 
IX. Renewal of LTO 
X. Application for Amendment 
XI. Licensing Process 
XII. Licensing Guidelines 
XIII. License to Operate 
XIV. Violations and Administrative 
Sanctions 
XV. Schedule of Fees
XV. Schedule of Fees 
A.O. 56 s. 1989 Revised Guidelines 
Chapter I 
Chapter II 
Upon application for license to 
operate, the drug establishment shall 
be charged with the corresponding 
non-refundable fees for each type of 
activity or classification that it will 
engage into. The fees shall be based 
on the existing Administrative Order 
on schedule of fees including any 
applicable amendment thereto.
XVI. Separability Clause 
If any of the provisions of this administrative order is found by a court of 
competent jurisdiction to be void or unenforceable, in whole or in part, 
such provision shall be deemed deleted from this Order but the remaining 
provisions thereof shall remain in full force and effect. 
XVII. Repealing Clause 
All provisions of existing administrative orders, circulars, regulations and other 
issuances inconsistent with this Order are hereby repealed or amended 
accordingly. 
XVIII. Effectivity Clause 
This Order shall take effect after fifteen (15) days following its publication in a 
newspaper of national circulation and upon submission to the University of 
the Philippines Law Center;This AO is subject for review after 2 years from

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AO 56 revised presentation

  • 1. AMENDMENT OF ADMINISTRATIVE ORDER 56 s. 1989 JOSELYN R. GUZMAN, RPh,MPA FDRO II
  • 2. SUBJECT: Rules and Regulations on the Licensing of Drug Establishments and Other Related Authorizations Further Amending for this Purpose Administrative Order No. 56 s. 1989 on the “Revised Regulations for the Licensing of Drug Establishments and Outlets,” and for other Purposes
  • 3. A.O. 56 s. 1989 Pursuant to Section 26(a) in relation to Section 21(a) and 11(k) of Republic Act No. 3720, known as the Foods, Drugs and Devices, and Cosmetics Act as amended by Executive Order No. 175 s. 1987 and consistent with Republic Act No. 6675, known as the Generic Act of 1988, the following regulations are hereby promulgated governing drug establishments and drug outlets under the Bureau of Food and Drugs (BFAD). Revised Guidelines I. RATIONALE II. AUTHORITY/BASES III. OBJECTIVES IV. SCOPE …
  • 4. I. RATIONALE Section 15, Article II of the 1987 Constitution declared it the policy of the State to protect and promote the right to health of the people and instill health consciousness among them. The Constitution also mandates the State to adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost (Section 11, Article XIII).
  • 5. I. RATIONALE Republic Act No. 3720 as amended by RA 9711 and its implementing rules and regulations, and RA 7394, in implementing the above Constitutional policy, declares further as a policy of the State to insure safe and good quality of food, drugs, and cosmetics, and to regulate the production, sale, and traffic of the same to protect the health of the people. In so doing, the same laws, empower the Food and Drug Administration to issue licenses to establishments manufacturing and/or distributing pharmaceutical products.
  • 6. I. RATIONALE Republic Act No. 8792 or the “Electronic Commerce Act of 2000” declares it as an objective to facilitate domestic and international dealings, transactions, arrangements, agreements, contracts and exchanges, and storage of information through the utilization of electronic, optical and similar medium, mode, instrumentality and technology to recognize the authenticity and reliability of electronic documents related to such activities and to promote the universal use of electronic transaction in the government and general public. The above objective of RA 8792 and its Implementing Rules and Regulations mandate the use of electronic data messages, electronic document and electronic signatures in government transactions.
  • 7. I. RATIONALE Republic Act No. 9502, otherwise known as the “Universally Accessible Cheaper and Quality Medicines Act of 2008” and its Implementing Rules and Regulations provides as a policy of the State that when the public interest or circumstances of extreme urgency so require, it shall adopt appropriate measures to promote and ensure access to affordable quality pharmaceutical products for all through an effective competition policy in the supply and demand thereof.
  • 8. I. RATIONALE Therefore, pursuant to the foregoing, to streamline regulatory approaches in licensing of drug establishments; provide faster access of pharmaceutical products to the public; and promote transparency through the universal use of electronic transaction in the government and general public, the following rules and regulations in the licensing of drug establishments as provided below are hereby adopted and prescribed for the information and compliance of all concerned.
  • 9. II. AUTHORITY/BASES This Order is issued by virtue under: •Section 26 of Republic Act No. 3720 as amended by Republic Act 9711 otherwise known as “FDA Act of 2009”; •Republic Act No. 7394 or the “Consumer Act of the Philippines”; •Republic Act No. 9502, otherwise known as the “Universally Accessible Cheaper and Quality Medicines Act of 2008”; •Republic Act No. 6675 or the “Generics Law of 1988” as amended; •Republic Act No. 5921 or “The Pharmacy Law” as amended; •Executive Order No. 292 or the Administrative Code of 1987; •and Section 27, Part IV of Republic Act No. 8792 or the “Electronic Commerce Act of 2000.”
  • 10. III. OBJECTIVES 1. Further amend the existing rules and regulations in the licensing of drug establishments to align with the recently promulgated laws and adopted policies affecting drug establishments; 2. Ensure the public that establishments licensed by FDA comply with current regulatory standards such as, but not limited to, Good Manufacturing Practice (GMP), Good Distribution Practice (GDP), Good Storage Practice (GSP), Good Pharmacy Practice (GPP) and Good Dispensing Practice.
  • 11. III. OBJECTIVES 3. Prescribe the use and implementation of new innovations, such as but not limited to, electronic data messages, electronic submission of documents and electronic signatures in the Food of Drug Administration pursuant to Republic Act No. 8792 or the “Electronic Commerce Act of 2000.”
  • 12. IV. SCOPE – This Order shall apply to all drug establishments, including local government units, government owned and controlled corporations, non-government organizations, other government offices and instrumentalities engaged in the manufacture, importation, exportation, sale, offer for sale, distribution in wholesale and/or retail basis and transfer of pharmaceutical product. – Entities engaged in the activities such as donation, promotion, advertising, or sponsorship of pharmaceutical product shall be responsible therefor and shall secure an authorization.
  • 13. A.O. 56 s. 1989 In accordance with Section 3 Paragraph 5 & 6 of RA 6675, any organization, company or business establishments in the pharmaceutical industry shall fall under the following general classifications; I. Drug Establishment means any organization or company involved in the manufacture, importation, repacking and/or distribution of drugs or medicines. This is covered by Chapter I below. II. Drug Outlet means drugstore, pharmacy, and other business establishment which sells drugs or medicines. This is covered by Chapter II below. Revised Guidelines V. DEFINITION OF TERMS VI. GENERAL PROVISION
  • 14. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 1. FDA – shall refer to the Food and Drug Administration 2. Drug Establishment – a sole proprietorship, a partnership, a corporation, an institution, an association, or an organization engaged in the manufacture, importation, exportation, sale, offer for sale, distribution in wholesale and/or retail basis, donation, transfer, use, testing, promotion, advertising, or sponsorship of pharmaceutical product including the facilities and installations needed for its activities
  • 15. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 3. PIC/S – means Pharmaceutical Inspection Co-operation Scheme 4. Pharmaceutical products – are the same as drug or medicinal products as defined in AO 2012-0008 “Adoption and Implementation of PIC/S Guides for the Good Manufacturing Practice for Medicinal Products
  • 16. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 5. License to Operate (LTO) – is an authorization or permission embodied in a document granted by FDA to any natural or juridical person engaged in the manufacture, importation, exportation, sale, offer for sale, distribution, and transfer of pharmaceutical products 6. Professional Regulation Commission (PRC)- is a national government agency created by Presidential Decree (P.D.) No. 223 dated June 22, 1973
  • 17. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 7. Special Permit- is a form of authorization granted to national government, local government unit, non-government organization and other entities that procures medicines for use of their constituents, medical missions and other health programs, and other purposes such as donation, promotion, advertising, or sponsorship of pharmaceutical product
  • 18. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 8. Pharmacy Compounding - is a practice in which a licensed pharmacist combines, mixes, or alters ingredients in response to a prescription to create a medication tailored to the medical needs of an individual patient
  • 19. V. DEFINITION OF TERMS As used in this Order, the following words, phrases or terms shall have the following meaning: 9. Specialty pharmaceuticals - generally defined as products used to treat chronic, high-cost, or rare diseases and can be injectable, infusible, oral, or inhaled medications
  • 20. VI. GENERAL PROVISIONS A. No drug establishment shall manufacture, import, export, sell, offer for sale, distribute, transfer, promote, advertise and/or sponsor any activity that involves pharmaceutical product, without a license or appropriate authorization from FDA pursuant to this Order. B. The recipient of donated pharmaceutical products, whether foreign or locally manufactured, for purposes of either medical missions or other health related programs, shall secure a special permit prior to the product’s distribution. The products covered herein shall not be available for sale in the market.
  • 21. VI. GENERAL PROVISIONS C. Any pharmaceutical product sold in its original packaging (container), the seal of which has not been broken or tampered with, the liability of ensuring its safety, efficacy, quality and/or purity, rests upon all the stakeholders involved in the supply chain shall be held liable thereof. D. All drug distributors shall not sell directly to the general public or consumer, unless they have license as a retailer. E. The application must meet the required documentary and/or technical requirements or appropriate standards.
  • 22. VI. GENERAL PROVISIONS F. Misrepresentations, false entries, or withholding of any relevant data contrary to the provisions of the law, rules and regulations or appropriate standards shall mean disapproval of the application. G. A violation with any of the terms and conditions of its license shall likewise result in the disapproval of the application. H. Applications may also be disapproved for similar causes as determined by the FDA.
  • 23. VI. GENERAL PROVISIONS I. All licensed drug establishments must continuously comply with the existing requirements, regulations and standards, otherwise the establishment may be ordered close or their licenses suspended or revoked motu proprio or upon petition by any person. J. Any pharmaceutical product imported or offered for import, the sale or use of which has been banned or withdrawn for health and safety reasons in the country of manufacture or country of origin, shall likewise be banned and refused admission in the Philippines.
  • 24. VI. GENERAL PROVISIONS K. Any pharmaceutical product that is declared by the Secretary of Health or the FDA Director-General to be imminently injurious, unsafe or dangerous shall be ordered for their immediate recall, seizure or banning from public sale or distribution. L. All entities, whether government or non-government offices, that regularly procure medicines on wholesale basis from any FDA authorized drug establishment for use of their constituents must be licensed as a drugstore/pharmacy or distributor (see Sec. 25 of RA 5921 and RA 3720)
  • 25. VI. GENERAL PROVISIONS M.Institutional Pharmacies procuring medicines on a wholesale basis from any FDA authorized drug establishment for use of their employees and dependents must likewise be licensed as drugstore/ pharmacy. N. Every pharmacy, drugstore, institutional or hospital pharmacy whether owned by the government or a private person or firm shall at all times when open for business be under the personal and immediate supervision of a registered pharmacist except otherwise allowed by pertinent laws.
  • 26. VI. GENERAL PROVISIONS O.All establishment applying for a license to manufacture, import, distribute, sell vaccines and other biological products are hereby directed to comply with the Cold Chain Management requirement. Likewise, existing establishment handling the same shall upgrade their cold chain management capabilities. P. The FDA shall have the authority to verify all original or authenticated copies of the submitted documents for LTO (See Sec 27 & 28 of RA 3720).
  • 27. VI. GENERAL PROVISIONS Q. The FDA shall endeavor to integrate all electronic submissions or processes into electronic format pursuant to Republic Act No. 8792 or the “Electronic Commerce Act of 2000” R. Rule 17. Non-Discriminatory Clause of IRR of RA 9502: Section 1. General Rule Section 2. Patented Drugs Section 3. Permit to Import and Distribute Section 4. Requirements for Request for Mandatory Carry Section 5. Mandatory Carry Section 6. Refusal to Sell Drugs and Medicines
  • 28. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 29. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 30. VII. Classification of DRUG ESTABLISHMENTS
  • 31. VII A. Drug Manufacturer A.O. 56 s. 1989 any establishment engaged in operations involved in the production of a drug, including propagation, processing, compounding, finishing, filling, packing, repacking, altering, ornamenting and labelling with the end in view of storage, distribution or sale of the product: provided that for the purpose of this regulation the compounding and filling of prescriptions in drugstores and hospital pharmacies shall not be considered as production operations. Revised Guidelines any establishment engaged in any and all operations involved in the production of pharmaceutical products including preparatory processing, compounding, formulating, filling, packaging, repackaging, altering, ornamenting, finishing and labeling with the end in view of its storage, sale or distribution; provided, that the term shall not apply to the compounding and filling of prescriptions in drugstores and hospital pharmacies.
  • 32. VII A. Drug Manufacturer a “DRUG MANUFACTURER” can be further classified into the following: •DRUG MANUFACTURER-REPACKER •DRUG MANUFACTURER-PACKER •DRUG MANUFACTURER-TRADER Drug Trader under A.O. 56 is now classified as a drug manufacturer
  • 33. VII A. Drug Manufacturer a “DRUG MANUFACTURER” can be further classified into the following: •DRUG MANUFACTURER-REPACKER refers to any establishment that repacks a finished drug product into smaller quantities in a separate container and/or into secondary packaging, including but not limited to •Relabeling •Stickering •bundling for promo packs with the end view of storage, distribution, or sale of the product. Provided, it shall not cover repacking of drugs at the time of purchase for purposes of dispensing.
  • 34. VII A. Drug Manufacturer a “DRUG MANUFACTURER” can be further classified into the following: •DRUG MANUFACTURER-REPACKER •DRUG MANUFACTURER-PACKER refers to any establishment that packages a bulk drug product into its immediate container with the end view of storage, distribution, or sale of the product.
  • 35. VII A. Drug Manufacturer a “DRUG MANUFACTURER” can be further classified into the following: •DRUG MANUFACTURER-REPACKER •DRUG MANUFACTURER-PACKER •DRUG MANUFACTURER-TRADER refers to any establishment which is a registered owner of a pharmaceutical product and the formulation and procures the raw materials and packing components, and provides the production monographs, quality control standards and procedures, but subcontracts the manufacture of such product to a licensed manufacturer. In addition, a trader may also engage in the distribution and or marketing of its products. A trader shall be categorized as a manufacturer.
  • 36. VII B. Drug Distributor/Exporter A.O. 56 s. 1989 Revised Guidelines any drug establishment that exports raw materials, active ingredients and/or finished products to another country any establishment that exports raw materials, active ingredients and finished products for distribution to other drug establishments outside the country.
  • 37. VII C. Drug Distributor/Importer A.O. 56 s. 1989 Revised Guidelines any establishment that imports raw materials, active ingredients and/or finished products for its own use or for wholesale distribution to other drug establishments or outlets any establishment that imports raw materials, active ingredients and/or finished products for wholesale distribution to other local FDA- licensed drug establishment.
  • 38. VII D. Drug Distributor-Wholesaler A.O. 56 s. 1989 Revised Guidelines any drug establishment that exports raw materials, active ingredients and/or finished products from local establishments for local distribution on wholesale basis. any establishment that procures raw materials, active ingredients and/or finished products from a local FDA licensed drug establishment for local distribution on wholesale basis.
  • 39. VII E. Drugstore/Pharmacy/Botica and similar outlets such as Hospital Pharmacy and Institutional Pharmacy A.O. 56 s. 1989 Revised Guidelines a drug outlet where registered drugs, chemical products, active principles, proprietary medicines or pharmaceutical specialties and dental medicinal, galenical or veterinary preparations are compounded and/or dispensed. drug establishment where registered drugs, chemical products, specialty pharmaceutical and dental, medicinal and household remedies are dispensed directly to the general public on a retail basis. Botika ng Barangay and its variants that sell prescription product shall be reclassified and required to secure LTO as a drugstore.
  • 40. VII F. Retail Outlet for Non-Prescription Drugs (RONPD) A.O. 56 s. 1989 Revised Guidelines including non-traditional outlets such as supermarkets and stores, means a drug outlet where registered non-prescription or Over-the-Counter (OTC) drugs are sold in their original packages, bottles or containers or in smaller quantities not in their original containers drug establishments such as supermarkets, convenient stores and other similar retail establishments licensed to sell registered non-prescription or Over-the- Counter (OTC) drugs which are sold in their individual original and primary packaging and are dispensed directly to the general public on a retail basis. Botika ng Barangay and its variants that sell non-prescription or OTC product only shall be reclassified and required to secure LTO as a RONPD.
  • 41. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII.Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 42. VIII. Requirements for Securing an LTO Any qualified natural or juridical person desiring to engage or operate in the manufacture, packing, repacking, importation, exportation, sale, offer for sale, distribution or transfer of pharmaceutical products shall comply with the requirements that FDA is authorized to promulgate through the appropriate issuance including amendments thereto.
  • 43. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 44. IX. Renewal of LTO A.O. 56 s. 1989 The License to Operate shall have the following validities for all categories of drug establishments: •Initial Application- 1 year •Renewal Application- 2 years At least one month prior to the expiration of the LTO, drug establishments shall apply to renew their license. In considering the renewal application, BFAD shall ascertain the continued compliance by the establishment with the standards and requirements (General and Specific requirements) Revised Guidelines Stipulated in Section XIII Application for regular renewal of license may be filed within six months from its expiration. Applications for Automatic Renewal Detailed in Sections VIII, X, XI, XII, XIII
  • 45. IX. Renewal of LTO A.O. 56 s. 1989 In case of renewal of LTO, the drug outlet must have a history of satisfactory performance, consistent with BFAD standards and requirements, without any cases of serious violation of laws, rules and regulations Revised Guidelines Detailed in Sections VIII, X, XI, XII, XIII
  • 46. IX. Renewal of LTO (A) Application for regular renewal of license may be filed within six months from its expiration. An application received after expiration of the LTO shall be subject to a surcharge or penalty equivalent to twice the renewal licensing fee and an additional ten percent (10%) per month or a fraction thereof of continuing non-submission of such application up to a maximum of one hundred twenty (120) days. OLD AO56: A surcharge of fifty percent (50%) of the above fees shall be issued on application for renewal filed after the validity of the license has lapsed. (AO 56 Chapter 2, Section 6)
  • 47. IX. Renewal of LTO (A) Any application for renewal of license filed beyond the 120 days after the original expiration shall be considered expired and shall be subject to a fee equivalent to the total surcharge or penalty plus the initial license fee. Such application shall undergo the initial filing and evaluation procedure.
  • 48. IX. Renewal of LTO (A) For applications for renewal filed within one hundred twenty (120) days from its original expiry, the LTO shall be considered valid and existing until a decision or resolution by the FDA is rendered on the application for renewal.
  • 49. IX. Renewal of LTO (B) The Automatic Renewal Automatic renewal shall apply to the following conditions: 1. The application is filed before the expiration date; 2. The prescribed renewal fee is paid upon filing of the application; 3. A sworn statement indicating no change or variation whatsoever in the establishment is attached to the application.
  • 50. IX. Renewal of LTO (C) In considering both renewal application, FDA shall ascertain the continued compliance by the establishment with the existing standards and requirements. In either case above, the instances provided in Section 4, Article I, Book II of the IRR of RA 9711(Paragraph E, Item VI above) shall be grounds for non-renewal of application. “Paragraph E, Item VI E. The application must meet the required documentary and/or technical requirements or appropriate standards.”
  • 51. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 52. Standards and Requirements for License to Operate ( AO56 ) Documentary requirements specified in Sections I.2 and II.2 “Standards and Requirements” in AO 56 are transfered in the proposed FDA Circular: Guidelines on the Implementation of Rules and Regulations on the Licensing of Drug Establishments and Other Related Authorizations Further Amending for this Purpose Administrative Order No. 56 s. 1989 on the “Revised Regulations for the Licensing of Drug Establishments and Outlets,” and for other Purposes
  • 53. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 54. X. Application for Amendment FDA shall issue a certification for those FDA licensed establishments applying for amendment during the validity of their Licenses to Operate. This certification shall form an integral part of the LTO attachment issued at the time of LTO renewal. Consequently, all amendments shall be incorporated once the LTO is re-issued for renewal. Thus, previous LTO and certifications related to amendments shall be surrendered to this Office.
  • 55. X. Application for Amendment Amendment referred hereto shall include the following: 1. Inclusion or deletion of product (finished or raw material) and/or product line 2. Inclusion or deletion of sources (including toll manufacturer/repacker, trader) 3. Change in business name/address of the source and/or manufacturer 4. Change of key personnel for Quality Assurance, Quality Control, Production Manager, Authorized Person and Pharmacist as reflected in the LTO 5. Inclusion or deletion of activity e.g. from Manufacturer to Toll Manufacturer/ Repacker/ Importer/Exporter or Trader to Trader/ Importer/ Exporter (raw materials or finished bulk products)
  • 56. X. Application for Amendment Other amendments, as enumerated below, shall require re-issuance of License to Operate after the conduct of inspection as these particulars are reflected in the LTO itself: •Change of business name, ownership and transfer of location of the establishment •Re-classification of the establishment (e.g. from Distributor/Importer to Distributor/Wholesaler), except for those which were reclassified into another class of establishment (e.g. from Distributor/Importer/ Wholesaler to Trader).
  • 57. X. Application for Amendment NOTE: Change of Address for drug manufacturer is considered opening, hence all the documentary requirements for initial application shall be submitted and payment of the initial license fee shall be made.
  • 58. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 59. XI. Licensing Process A. Filing of Applications B. Where to File C. Period to File
  • 60. XI. Licensing Process A. Filing of Applications An application, whether initial, renewal, automatic renewal or amendment, is deemed filed upon submission of duly accomplished application form and Self-Assessment Checklist (SAC) with the complete attached required documents, payment of required fees and acceptance of the authorized FDA officer. Any application not pursued by the applicant within three (3) months from filing shall be deemed discarded and will be automatically cancelled and delisted from the application list.
  • 61. XI. Licensing Process A. Filing of Applications B. Where to File An application shall be filed with the respective Regional Field Offices having jurisdiction over the establishment or as defined in accordance with issuance.
  • 62. XI. Licensing Process A. Filing of Applications B. Where to File C. Period to File Initial application. It shall be filed prior to operation subject to compliance of the requirements and conduct of site inspection but in no case shall the establishment commence to operate until the issuance of the corresponding License to Operate. Renewal application. Regular renewal shall be filed six (6) months prior to expiration of the original validity of the LTO. Automatic renewal shall be filed prior to the expiration of the original validity of the LTO.
  • 63. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 64. XII. Licensing Guidelines A. Place of Business, Warehouse or Plant B. Display of Signboard and License C. Request for Information
  • 65. XII. Licensing Guidelines A. Place of Business, Warehouse or Plant All the office, warehouse and plant shall be covered by a single license notwithstanding their distance or different locations within one locality indicating merely their address in the license, except when any of the office, warehouse and plant carries an entirely different and complete stage of operation for different product, in which case, each shall be covered by separate license. In this instance, the principal office address shall be reflected at the front page of the LTO while the others at the back page thereof or secondary page appended thereto. The place of business should be situated in accordance with the zonal site.
  • 66. XII. Licensing Guidelines A. Place of Business, Warehouse or Plant B. Display of Signboard and License Every licensed establishment shall cause the public display the duly issued license in a conspicuous place within the premises of the establishment.
  • 67. XII. Licensing Guidelines A. Place of Business, Warehouse or Plant B. Display of Signboard and License C. Request for Information Any request for information whether by the company or any other party shall be governed by the existing policies on disclosure.
  • 68. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 69. XIII. License to Operate A. Validity All Licenses to Operate shall have the following validity for any classification of drug establishments from the date of issuance reflected as such and renewal thereafter. a. Initial – Initial LTO issued shall be valid for one year b. Renewal- Renewed LTO shall be valid for two years In either case, the LTO shall be valid only in the address indicated therein and the warehouse or plant covered.
  • 70. XIII. License to Operate B. Lost or Destroyed LTO An LTO shall be re-issued upon the filing of request with affidavit of loss or affidavit of such destruction and other documents whenever necessary and payment of the prescribed fee. Provided that there is no change whatsoever in the establishment, otherwise the same shall be treated as amendment or initial as the case may be.
  • 71. XIII. License to Operate C. Cancellation of LTO a. Automatic Any application for renewal of a LTO filed after one-hundred twenty (120) days after the expiration of the original validity shall be automatically considered expired and cancelled. Likewise, unrenewed LTO for successive years shall be automatically cancelled and deleted from the list of registered establishments.
  • 72. XIII. License to Operate C. Cancellation of LTO b. Voluntary The owner or authorized person of a licensed establishment may apply before the FDA or its regional field office having jurisdiction over the establishment for voluntary cancellation of its existing license by filing a formal notification together with the original LTO issued, or in case of loss or destruction, an appropriate affidavit therefore. Any voluntary cancellation intended to defraud the government, its creditors, and/or its workers shall not deprive FDA jurisdiction to perform acts in ensuring the safety of the public.
  • 73. XIII. License to Operate C. Cancellation of LTO c. Involuntary This shall be effected only on the grounds and procedures provided in the Rules of Administrative Procedure provided in the IRR OF RA 9711 or other relevant rules and regulations in case of violation or upon petition by any party. Nothing in this section shall restrict the FDA or the DOH in imposing the penalty of suspension, revocation, or cancellation of LTO or other authorization for administrative violations of any other relevant laws or their implementing rules and regulations.
  • 74. XIII. License to Operate C. Cancellation of LTO Any notice of disapproval of applications for license or authorization or suspension, revocation, or cancellation of an existing license, or authorization must clearly state the ground/s on which the disapproval, suspension, revocation, or cancellation is based.
  • 75. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 76. XIV. Violations and Administrative Sanctions A.O. 56 s. 1989 Revised Guidelines CHAPTER I - DRUG ESTABLISHMENTS 4.1. Grounds for Revocation of LTO 4.2. Grounds for Suspension of LTO CHAPTER II - DRUG OUTLETS 4.1. Temporary Closure 4.2. Suspension of License to Operate 4.3. Revocation of License to Operate Violations and administrative sanctions shall be covered by a separate issuance. A.Re-application after Disapproval B.Resumption after Suspension C.Re-application after Revocation
  • 77. XIV. Violations and Administrative Sanctions Violations and administrative sanctions shall be covered by a separate issuance. A.Re-application after Disapproval B.Resumption after Suspension C.Re-application after Revocation
  • 78. XIV. Violations and Administrative Sanctions A. Re-application after Disapproval The disapproval of an application is without prejudice to re-application. However, disapproval of application shall mean outright forfeiture of payment.
  • 79. XIV. Violations and Administrative Sanctions B. Resumption after Suspension The lifting of the order of suspension and the resumption of the operation of an establishment that have been issued a suspension of its LTO, shall take effect only after due application and satisfactory compliance of the deficiencies for which it was suspended.
  • 80. XIV. Violations and Administrative Sanctions C. Re-application after Revocation Unless permanently barred, any establishment whose LTO have been revoked may apply for initial application after three years from date of revocation.
  • 81. A.O. 56 s. 1989 Revised Guidelines … I. Drug Establishments 1. Definition 2. Standards and Requirements for License to Operate (LTO) 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees II. Drug Outlets 1. Definition 2. Standards and Requirements for LTO 3. Renewal of LTO 4. Administrative Sanctions 5. Schedule of Fees .... VII. Classification of Drug Establishments VIII. Requirements for Securing an LTO IX. Renewal of LTO X. Application for Amendment XI. Licensing Process XII. Licensing Guidelines XIII. License to Operate XIV. Violations and Administrative Sanctions XV. Schedule of Fees
  • 82. XV. Schedule of Fees A.O. 56 s. 1989 Revised Guidelines Chapter I Chapter II Upon application for license to operate, the drug establishment shall be charged with the corresponding non-refundable fees for each type of activity or classification that it will engage into. The fees shall be based on the existing Administrative Order on schedule of fees including any applicable amendment thereto.
  • 83. XVI. Separability Clause If any of the provisions of this administrative order is found by a court of competent jurisdiction to be void or unenforceable, in whole or in part, such provision shall be deemed deleted from this Order but the remaining provisions thereof shall remain in full force and effect. XVII. Repealing Clause All provisions of existing administrative orders, circulars, regulations and other issuances inconsistent with this Order are hereby repealed or amended accordingly. XVIII. Effectivity Clause This Order shall take effect after fifteen (15) days following its publication in a newspaper of national circulation and upon submission to the University of the Philippines Law Center;This AO is subject for review after 2 years from

Editor's Notes

  1. In accordance with Section 3 Paragraphs 5 and 6 of R.A. 6675, any organization, company or business establishments in the pharmaceutical industry shall fall under the following general classification: I.               Drug Establishment means any organization or company involved in the manufacture, importation, repacking and/or distribution of drugs or medicines. This is covered by Chapter I below. II.              Drug Outlet means drugstore, pharmacy, and other business establishment which sells drugs or medicines. This is covered by Chapter II below.
  2. In accordance with Section 3 Paragraphs 5 and 6 of R.A. 6675, any organization, company or business establishments in the pharmaceutical industry shall fall under the following general classification: I.               Drug Establishment means any organization or company involved in the manufacture, importation, repacking and/or distribution of drugs or medicines. This is covered by Chapter I below. II.              Drug Outlet means drugstore, pharmacy, and other business establishment which sells drugs or medicines. This is covered by Chapter II below.
  3. Explain: Drug outlets is considered as drug establishment; use of terminologies ?? Why started in G?
  4. - The Standards part was divided into different clauses
  5. - The Standards part was placed into a different clause
  6. The TURNED initial ( does not appear in AO 56)
  7. Not mentioned in AO 56. references?
  8. - The Standards part was placed into a different clause
  9. - The Standards part was placed into a different clause
  10. Payment for the amendments shall be collected in accordance with the existing regulations pertaining thereto. No change in the previously approved circumstances of the application of the establishment shall be effected unless proper notification and submission of necessary documents to the FDA and approval of such change(s) has been made.