Accreditation of Manufacturers, Assemblers, Importers and Dealers

July 8, 1988

LTO ADMINISTRATIVE ORDER NO. 001-88

SUBJECT : Accreditation of Manufacturers, Assemblers, Importers and Dealers

Pursuant to the provisions of Republic Act 4136, otherwise known as the Land Transportation and Traffic Code, as amended and R.A. 6539, known as Anti-Carnapping Act of 1972, the following rules and regulations on accreditation of manufacturers, assemblers, importers and dealers are hereby promulgated for the information, guidance and compliance of all concerned.

SECTION 1. Definition of Terms. — The following terms, for purposes of these regulations, are defined as follows:

a) Assembler — refers to any person, firm or corporation engaged in the assembly of engine, chassis and bodies to make a whole unit thereof out of such parts which are imported in the Philippines. This shall not be associated with repair/rebuilding shops which are engaged in the rebuilding of motor vehicles from components which have been previously registered.

b) Manufacturer — synonymous to an assembler.

c) Dealer — refers to any person, firm or corporation directly selling any motor vehicle unit or component as evidenced by a commercial invoice. This shall include junk second hand and surplus dealers.

d) Importer — refers to any person, firm or corporation engaged in the importation of surplus motor vehicles or its components. TIDHCc

e) Component — refers to any major part of a motor vehicle such as engine, chassis and/or body.

f) Accreditation Permit — is an authority to transact business with the Land Transportation Office (LTO) relative to motor vehicles or its components.

SECTION 2. Application and Scope. — Any person, firm corporation desiring to transact business with the LTO relative to motor vehicles or its components, shall file with the Assistant Secretary of the Land Transportation Office, an application on a form prescribed by the Office, containing certain prescribed information and showing compliance with the requirements hereinafter set forth. In the case of the National Capital Region applications may be filed directly with the Land Transportation Office, East Avenue, Quezon City, while in the regions, it may be filed in the regional offices.

SECTION 3. Documentation. — The following requirements shall be submitted for application for accreditation.

a) Securities and Exchange Commission (SEC) Certificate of Registration and Articles of Incorporations and by-laws in case of a corporation;

b) SEC Certificate of Registration and Articles of Partnership and by-laws in case of partnership;

c) Registration of business name and trade name in case of single proprietorship duly approved and registered by the Bureau of Domestic Trade and Consumers, Department of Trade and Industry;

d) Mayor's Permit of the place of business of the person, firm or corporation or Business Permit;

e) Income Tax Returns/Clearance of tax payment in case the applicant is on-going concern;

f) Statement of Assets and Liabilities or Financial Statement duly certified by a Certified Public Accountant (CPA); aSHAIC

g) SSS Certificate of Membership of Corporation/Partnership/Single Proprietorship;

h) Central Bank Authority;

i) Department of Trade and Industry/BOI authority.

In case of single proprietorship, only the requirements under items c-i shall be required. The same rules shall apply when the applicant is a dealer of junked and/or second-hand motor vehicles or its components.

SECTION 4. Committee on Accreditation. — Upon receipt of the application for Accreditation of manufacturers, assemblers, importers and dealers, the Assistant Secretary shall cause the applicant to be interviewed by a Committee on Accreditation duly appointed by him in order to ascertain and verify the correctness and truth of the information contained in the application. He shall forthwith require such Committee to make an ocular inspection of the applicant's establishment, equipment and facilities and evaluate the degree by which he has met the standard requirements as herein provided. The Assistant Secretary, upon finding the report of the Committee, the application and supporting evidence satisfactory, may grant the accreditation permit or renew the same if the establishment is already established and operating.

SECTION 5. Accreditation Fee. — Upon approval of the application for accreditation, an initial fee of FIVE HUNDRED PESOS (P500.00) shall be collected and TWO HUNDRED PESOS (P200.00) for every year of subsequent renewal accreditation. All applications approved and granted by this Office shall be valid for one (1) year starting January 1 to December 31 of any given year, provided that any accreditation permit issued at a certain date shall be valid only up to December 31 of any given year. Renewal of accreditation shall be on or before the last working day of the year. Such renewal accreditation shall be valid for the next succeeding year.

In case of failure to renew during the period herein prescribed, an administrative fine of TWO HUNDRED PESOS (P200.00) shall be imposed, in addition to the renewal accreditation fee of P200.00.

SECTION 6. Reporting System. — All manufacturers, assemblers, importers and dealers shall submit to the Land Transportation Office, Registration Section, a accurate monthly stock/sales with the following documents:

a) Stocks/Sales Report by Importers. — the importers of motor vehicles, engine and/or chassis shall, after release thereof by the Bureau of Customs and delivery to the compound of the importer or at any other place he so designated, submit: aDCIHE

1) Commercial Invoice from the country of origin;

2) Consular Invoice covering the shipment;

3) Bill of Lading transporting the shipment to the Philippines;

4) Central Bank Release Certificate of the shipment;

5) Official Receipt issued by the Bureau of Customs showing payment of the collectible taxes thereon;

6) Marine Insurance Policy;

7) Letter of the President/General Manager/Owner to the LTO submitting the report stating actual number of the motor vehicle's engine, chassis and etc.; and

8) Stencils of the engine number, chassis number, body number as the case may be.

b) Periodic Stock/Sales Report by Dealers. — The assemblers, manufacturers and dealers of locally assembled motor vehicles and its components shall submit stock/sales reports together with the documents mentioned above in Nos. 7 and 8.

c) Periodic Report by Junk Dealers. — All junk dealers from the moment of the acquisition of such junked items pursuant to Section 6 of this Order, shall submit stock/sales report to this Office, together with the following documents:

1) Formal letter/report of the acquisition of the junked/second hand items;

2) Original Certificate of Registration (CR) and the Official Receipt (OR) showing latest payment of registration fees;

3) Copy of the absolute deed of sale evidencing the sale of the junked items;

4) Clear and legible stencils of the serial number of the secondhand/junked items; and

5) Copy of the Constabulary Highway Patrol Group (CHPG) clearance issued at the time of the acquisition of the junked item by the junk dealer.

When the junked items are acquired pursuant to an auction sale or public bidding, all the bidding papers authenticated and signed by the duly authorized official shall accompany the sales/stock report, properly identifying the item or items which were the subject of public auction or public bidding. IHEaAc

SECTION 7. Acquisition (Purchase) Report of Junk Dealers. — In order to entitle junk dealers to purchase or acquire junked items from legitimate parties, the following must be secured from the owners thereof:

a) Authentic original Certificate of Registration covering the motor vehicle or its components;

b) That the serial numbers of the components are intact and are original;

c) Notarized deed of absolute sale covering such motor vehicle or its components; and

d) CHPG clearance pursuant to Republic Act No. 6539.

SECTION 8. Period When Confirmation May Be Made. — The Office may, within reasonable time confirm the stocks/sales reported after the date of submission of a periodic and accurate stock/sales report made by the duly accredited members.

SECTION 9. Penal Provisions. — The manufacturers, assemblers, importers and dealers, may, after due notice and hearing be imposed an administrative fine of P1,000 for the first offense, two years suspension for the second offense and cancellation of the accreditation permit for the third offense, whenever the Assistant Secretary has reason to believe: THCSAE

1) That the company/corporation has submitted fake or falsified stock/sales periodic reports as required by law and regulations;

2) That the company/corporation does not comply with the standard requirements herein provided in this administrative order and other laws and their implementing rules and regulations;

3) That the company has committed fraud and misrepresentation in the filing of the application and in its operation.

Any person, firm, corporation found operating without the accreditation permit or having filed an application for accreditation after the 90-day period within which to secure/renew accreditation with the Office shall be fined P1,000 and denied transactions with the LTO.

SECTION 10. Retroactivity. — All persons, firms and corporations engaged in the business of assembling, manufacturing, importing and selling motor vehicles or its components at the same time these regulations take effect shall be given a period of ninety (90) days within which to secure or renew accreditation with the Office.

SECTION 11. Repealing Clause. — All rules and regulations which are inconsistent herewith are hereby modified, amended, repealed and/or superseded.

SECTION 12. Effectivity. — The order shall take effect thirty (30) days after publication in a newspaper of general circulation.

 

(SGD.) MANUEL N. SABALZAAssistant Secretary

APPROVED:

 

(SGD.) RAINERIO O. REYESSecretary