Implementation of the Memorandum of Agreement among BOC, BIR, LTO, PNP-TMG, CAMPI, TMA, MDPPA and PAA

April 30, 2004 LTO MEMORANDUM CIRCULAR NO. 513-04 TO : All Regional Directors, Assistant Regional Directors, Transportation District Officers and Concerned Employees SUBJECT : Implementation of the Memorandum of Agreement (MOA) among BOC, BIR, LTO, PNP-TMG, CAMPI, TMA, MDPPA and PAA on the Streamlining of the Process in the Importation and Registration of New Motor Vehicles, Both CKD and CBU by the Members of the Automotive and Motorcycle Industry Associations and their Franchised Vehicle Dealers Who are Parties to the MOA In the best interest of public service, in view of the implementation of the "No Plates No Travel" Policy of the NAKTF and pursuant to the MOA entered into by this Office with BOC, BIR, PNP-TMG, CAMPI, TMA, MDPPA and PAA on April 14, 2004, the following guidelines and procedure are hereby promulgated for the guidance and strict compliance of all concerned: 1. This Memorandum Circular shall cover the importation and registration of new motor vehicles both completely knocked down (CKD) and completely built up (CBU) by the members of the automotive and motorcycle industry associations and their franchised vehicle dealers who are parties to the agreement; 2. For purposes of clarification, motor vehicles as defined under RA 4136 otherwise known as the Land Transportation and Traffic Code include motorcycles which shall be entitled to the use of the green copy of the Certificate of Payment which shall be sufficient to commence the registration process; 3. By submission of the owner's green copy of the Bureau of Custom's Certificate of Payment together with the importation documents such as packing list, bill of lading, commercial invoice from the country of origin, stencils of the engine and chassis/frame numbers covering the imported unit indicated in the Certificate of Payment, the Registration Section, Central Office/Regional Office with installed MAIDRS shall accept and process stock reports and shall within three (3) working days from receipt of the manufacturers/importer's Stock Report issue the corresponding Certificate of Stock Report (CSR). LTO shall not accept from the manufacturer/importer/assembler applications for CSR with incomplete documentary requirements; HSaEAD 4. LTO shall make available to the manufacturers/assemblers/importers information on the pending CSRs. An updated daily status report of CSRs shall be posted in a conspicuous place at the Registration Section, Central Office and Regional Offices; 5. The franchised dealers while applying for a PNP-TMG clearance shall simultaneously submit to LTO Regional Office the sales report, sales invoice and the stencils of the engine and chassis/frame numbers in diskette form with hard copies which shall be uploaded in the MAIDR system in the Regional Offices within two (2) days. Since verification can be done at the District Office through the computerized online system, issuance of Confirmation Certificate is not necessary, hence, should cease. Likewise, computerization of imported motor vehicles shall be implemented, hence the Registration Section, Central Office shall stop issuing Confirmation Certificates to imported motor vehicles and all verifications will be done online. Stock reports prior to the implementation of CSR shall be encoded as the application comes and shall be issued with CSR; 6. The franchised dealers shall submit to LTO district office all the documentary requirements for the registration of the motor vehicle. Verifications of stocks and sales data in the MAIDRS shall be done electronically, employing hard validation procedure to ensure correctness and validity of data. The LTO district office shall register the motor vehicle within a day and issue the CR, OR, plates, tags and stickers. Pending the submission of BOC to LTO of the original CP, LTO shall withhold the release of the original Certificate of Registration; 7. Attached as Annex "A" is the list of the bonafide members of the automotive and motorcycle industry associations which are parties and signatories to the MOA, namely: CAMPI, TMA, MDPPA and PAA. They shall update the list of their duly registered members for dissemination to all LTO Regional and District Offices in case of changes in the membership; CHATcE 8. The streamlined procedure is hereto attached as Annex "B" for the guidance and observance of all concerned; and 9. Attached as Annex "C" is the copy of the subject MOA among BOC, BIR, LTO, PNP-TMG, CAMPI, TMA, MDPPA and PAA for reference and guidance. All Orders/issuances that are in conflict with this memorandum circular are hereby repealed or modified accordingly. This Order shall take effect immediately. For strict compliance. (SGD.) ANNELI R. LONTOC Assistant Secretary ANNEX A LIST OF BONAFIDE MEMBERS OF CAMPI, TMA, MDPPA AND PAA I. CHAMBER OF AUTOMOTIVE MANUFACTURERS OF THE PHILIPPINES, INC. (CAMPI) 1. Asian Carmakers Corporation 2. Columbian Autocar Corporation 3. Honda Car Philippines, Inc. 4. Isuzu Philippines Corporation 5. Mitsubishi Motor Philippines Corporation 6. Nissan Motor Philippines, Inc. 7. Scandinavian Motors Corporation 8. Toyota Motor Philippines Corporation 9. Universal Motors Corporation 10. General Motors Automobile Philippines, Inc. 11. Hyundai Asia Resources, Inc. II. TRUCK MANUFACTURERS ASSOCIATION (TMA) Not submitted yet III. MOTORCYCLE DEVELOPMENT PROGRAM PARTICIPANTS ASSOCIATION, INC. (MDPPA) 1. Honda Philippines, Inc. 2. Kawasaki Motors (Phils) Corp. 3. Norkis Trading Co. Inc. 4. SC Kymco Pilipinas Inc. 5. Suzuki Philippines Inc. 6. Victoria Motors Industries Corporation 7. Eastworld Motors Industries Corporation 8. Porta Coeli Industrial Company IV. PHILIPPINE AUTOMOTIVE ASSOCIATION (PAA) Regular Members Metro Manila 1. Autohaus BMW TCaEIc 2. CATS Motors, Inc. 3. Citimotors, Inc. 4. Diamond Motor Corp. 5. Ford Balintawak 6. Ford EDSA 7. Ford Libis 8. Ford Makati 9. GM Auto World Makati 10. GM Auto World Quezon City 11. GM Shaw/Juno Cars, Inc. 12. Honda Cars Makati, Inc. 13. Honda Cars, Quezon City, Inc. 14. Hyundai Makati, Inc. 15. Hyundai Ortigas 16. Isuzu Alabang 17. Isuzu EDSA/Inteco 18. Isuzu Makati/Gencars 19. Isuzu Manila, Inc. 20. Kia Motor Sales Corp/Pasay 21. Mantrade Development Corp. EaTCSA 22. Nissan Central Manila 23. Nissan Commonwealth 24. Nissan Gallery-Ortigas 25. Nissan North EDSA 26. Nissan U.N. Avenue 27. PGA Cars, Inc. 28. Pilhino Sales Corporation 29. Prestige Cars Makati, Inc. 30. Toyota Alabang, Inc. 31. Toyota Balintawak, Inc. 32. Toyota Bel-air, Inc. 33. Toyota Cubao, Inc. 34. Toyota Manila Bay Corp. 35. Toyota Pasong Tamo 36. Toyota Quezon Avenue, Inc. 37. Toyota Shaw, Inc. 38. Union Motor Corporation 39. Universal Motor Corporation 40. Viking Cars, Inc. 41. Wheels, Inc. DTAHSI Provincial 42. Caleb Motor Corp. Naga 43. Carworld, Inc. Pampanga 44. Chrysler Pampanga 45. Ford Pampanga 46. Freeway Motor Sales Cabanatuan 47. Honda Cars San Pablo, Inc. 48. Jabez Motor Corporation 49. Isuzu Isabela/BM Domingo Motor Sales 50. KarAsia Inc., Davao 51. Kia Pampanga/Traders Autocenter 52. Mindanao Integrated Commercial Inc. 53. Mitsubishi Motors Cebu 54. Nissan Cagayan de Oro 55. Nissan Davao/Davao Unicar Corp. 56. Nissan Iloilo Inc. 57. Nissan Naga 58. Royce Motor Center, Inc. 59. SFM Sales Corp. 60. Suzuki Auto Pampanga CSDAIa 61. Toyota Batangas City, Inc. 62. Toyota Cabanatuan City, Inc. Satellite Members 1. Diamond Motors Fairview 2. Diamond Motors Marcos Highway 3. Diamond Motors Quezon Avenue 4. Ford Quezon Avenue 5. Hyundai Quezon Avenue 6. Isuzu Cavite 7. Isuzu Pasig 8. Toyota Dasmarias 9. Toyota Marikina 10. World Cars, Inc. ANNEX C MEMORANDUM OF AGREEMENT This MEMORANDUM OF AGREEMENT is made and entered into in the City of Manila, by and among: The BUREAU OF CUSTOMS (BOC), a government agency tasked to enforce the Tariff and Customs Code of the Philippines, with principal address at the South Harbor, Port Area, Manila, represented herein by its Commissioner, ANTONIO M. BERNARDO; SEIaHT The BUREAU OF INTERNAL REVENUE (BIR), a government agency tasked to implement the National Internal Revenue Code, with principal address at Diliman, Quezon City, represented herein by its Deputy Commissioner, LICERIO C. EVANGELISTA; The LAND TRANSPORTATION OFFICE (LTO), a government agency tasked to implement the Land Transportation and Traffic Code, with principal address at East Avenue, Quezon City, represented herein by its Assistant Secretary, ANNELI R. LONTOC; The PHILIPPINE NATIONAL POLICE TRAFFIC MANAGEMENT GROUP (PNP-TMG), a government agency principally tasked to enforce the Anti-Carnapping Act of 1972, with principal address at Camp Crame, Quezon City, represented herein by its Director, Police Chief Superintendent DANILO P. MANGILA; The CHAMBER OF AUTOMOTIVE MANUFACTURERS OF THE PHILIPPINES, INC. (CAMPI), for and in behalf of its members who are automobile manufacturers/importers, with principal address at Suite 1206, 12th Floor, Jollibee Center, San Miguel Avenue, Pasig City, represented herein by its President, JOSE Ch. ALVAREZ; The TRUCK MANUFACTURERS ASSOCIATION (TMA), for and in behalf of its members who are commercial vehicle manufacturers/importers, with principal address at c/o Universal Motors Corporation, Pasong Tamo Avenue, Makati City, represented herein by its President, ELIZABETH H. LEE; The MOTORCYCLE DEVELOPMENT PROGRAM PARTICIPANTS ASSOCIATION (MDPPA), for and in behalf of its members who are motorcycle manufacturers/importers, with principal address at Suite 1206, 12th Floor, Jollibee Center, San Miguel Avenue, Pasig City, represented herein by its President, ALFREDO B. ALARCON; ScCEIA The PHILIPPINE AUTOMOTIVE ASSOCIATION (PAA), for and in behalf of its members who are franchised dealers of motor vehicles, with principal address at Mezzanine, Diamond Motor Corp., Ortigas Avenue corner Roosevelt St., Greenhills, San Juan, Metro Manila, represented herein by its President, GEORGE F. BLAYLOCK; WITNESSETH THAT: WHEREAS, with the complexity of the current system, there is an urgent need to facilitate, streamline and shorten the time frame for the processing of documents for the importation and registration of new motor vehicles by the members of the automotive and motorcycle industry associations and their franchised vehicle dealers who are parties to this Agreement; WHEREAS, towards this end, there is a necessity for the government agencies concerned to set up new or upgrade current systems to attain substantial improvement in the processing of these documents concerning motor vehicles; WHEREAS, a modernized and much improved processing system will redound to the benefit of the government, industry and consumers in terms of efficient public service and revenue generation, better business environment and a system responsive to the needs of the consumers. NOW, THEREFORE, the Parties hereby agree that: 1. This Memorandum of Agreement shall cover the importation and registration of new motor vehicles, both Completely Knocked Down (CKD) and Completely Built Up (CBU), by the members of the automotive and motorcycle industry associations and their franchised vehicle dealers who are parties to this Agreement which are being processed by BOC, BIR, TMG, and LTO. 2. The Authority to Release Imported Goods (ATRIG) for CBUs shall be processed by BIR in advance before the arrival of the shipment, provided that the following documents are submitted by the manufacturer/importer: a) Bill of lading/sea waybill; TCacIE b) Packing list; c) Commercial invoice; d) Chassis/frame/engine numbers; e) Updated Manufacturer's/Importer's/Assembler's Sworn Statement. The ATRIG shall be processed and issued within three (3) working days from filing of the duly accomplished application form together with the required documents. 3. The BIR shall transmit the ATRIG to BOC immediately after approval. 4. The BOC shall transmit the BIR copy of the duly processed/approved Import Entry and Internal Revenue Declaration (IEIRD) directly to the BIR Large Taxpayers Service (LTS) within three (3) working days from approval thereof. 5. The original copy of the Certificate of Payment (CP) of duties and taxes shall be transmitted officially by BOC to LTO, within five (5) working days, and the green copy (owner's copy) to the manufacturer/importer within three (3) working days, both counted from the date of payment of duties and taxes or the filing of import entry or receipt by BOC of the ATRIG (if applicable), whichever comes later. 6. For CBUs, the One (1) Unit-One (1) CP policy of the BOC, and other related rules and regulations, will still be in force and effect. 7. The presentation of the green copy of the CP by the manufacturer/importer to LTO shall be sufficient to commence the registration process of the subject motor vehicle. 8. The LTO shall, within three (3) working days from receipt of the Manufacturer's/Importer's Stock Report, together with the other required documents, issue the corresponding Certificate of Stock Report (CSR) to the manufacturer/importer. For monitoring purposes, the LTO shall provide information on pending CSRs to the manufacturer/importer concerned. DAETHc 9. After the release of the CSR, the manufacturer/importer shall distribute it to their respective franchised dealers within two (2) working days. 10. Upon receipt of the CSR by the franchised dealer, the said dealer shall apply for a PNP-TMG clearance by submitting all the required documents, including the CSR and Special Bank Receipt (SBR), and the PNP-TMG clearance shall be issued to the franchised dealer within two (2) working days. Simultaneously, the franchised dealer shall submit to the LTO Regional Office the sales report, original sales invoice and the stencils of the engine and chassis/frame numbers for confirmation of sales. 11. The franchised dealer shall submit thereafter to LTO all the required registration documents and LTO shall issue the Official Receipt/Certificate of Registration (OR/CR) and license plate and cause the registration of the vehicle in the permanent registry of motor vehicles within one (1) working day from submission of the complete requirements. However, pending the receipt of the original CP, the LTO shall withhold the release of the original OR/CR. 12. In case of any discrepancy in the duties and taxes paid, the concerned manufacturer/importer shall be liable to pay the same to BOC. In line with the foregoing, the automotive and motorcycle industry associations which are parties and signatories herein hereby undertake to police their respective ranks and cause the payment of such discrepancy by the manufacturer/importer concerned. 13. The government agencies herein mutually agree that they shall furnish each other from time to time or as requested such other information necessary for the effective implementation of this Agreement. 14. The provisions of this Agreement shall cover and apply only to the importation and registration of motor vehicles by bonafide members of the automotive and motorcycle industry associations which are parties and signatories herein, as listed in Annex A hereto attached. The associations shall update the list of their membership by submitting the updated list to the government agencies which are parties and signatories to this Agreement. cITAaD 15. This Agreement shall take effect immediately upon signing of all the parties herein and shall supersede the 1973 Memorandum of Agreement by and among the LTO, BOC and Constabulary Highway Patrol Group, as well as the Addendum to the 1973 Memorandum of Agreement by and among the BOC, LTO and the PNP-TMG dated 10 July 1997. IN WITNESS WHEREOF, the Parties herein have hereunto affixed their signatures this 14th day of April 2004 in Manila, Philippines. BUREAU OF CUSTOMS BUREAU OF INTERNAL REVENUE By: By: (SGD.) ANTONIO M. BERNARDO (SGD.) LICERIO C. EVANGELISTA Commissioner Deputy Commissioner LAND TRANSPORTATION PNP-TRAFFIC MANAGEMENT OFFICE GROUP By: By: (SGD.) ANNELI R. LONTOC (SGD.) DANILO P. MANGILA Assistant Secretary Director CHAMBER OF AUTOMOTIVE TRUCK MANUFACTURERS MANUFACTURERS OF THE ASSOCIATION PHILIPPINES, INC. By: By: (SGD.) JOSE Ch. ALVAREZ (SGD.) ELIZABETH H. LEE President President MOTORCYCLE DEVELOPMENT PHILIPPINE AUTOMOTIVE PROGRAM PARTICIPANTS ASSOCIATION ASSOCIATION By: By: (SGD.) ALFREDO B. ALARCON (SGD.) GEORGE F. BLAYLOCK President President