In an ideal world, that's what should happen. But the reality is that each city acts as if they're an independent kingdom and authorizes their traffic management guys to get your license even for simple violations. You will then have to claim it from the city hall/traffic management office of where you were apprehended.

Automotive journalist James Deakin has an interesting and informative bit on this topic:
Who is allowed to confiscate my license? | James Deakin | Philippine Car News, Reviews and Motorsports