IRR for the Registration of Imported Motor Vehicles Acquired by Buyers in Good Faith Pursuant to the BOC-LTO MOA

October 5, 2007

LTO MEMORANDUM CIRCULAR NO. RIB-892-07

IMPLEMENTING RULES AND REGULATIONS FOR THE REGISTRATION OF IMPORTED MOTOR VEHICLES ACQUIRED BY BUYERS IN GOOD FAITH PURSUANT TO THE MEMORANDUM OF AGREEMENT (MOA) BETWEEN THE BUREAU OF CUSTOMS (BOC) AND THE LAND TRANSPORTATION OFFICE (LTO)

Pursuant to the provisions of the Memorandum of Agreement dated 07 August 2007 signed by the BOC and this Office relative to the collection of duties and taxes and the registration of imported motor vehicles primarily concerning buyers in good faith, the following implementing rules and regulations shall be observed:

A. OBJECTIVE

To pursue a concerted action to collect taxes and duties on imported motor vehicles in consonance with the national initiative to generate more revenue for the government by establishing One-Stop-Shop at the LTO Compound, East Avenue, Quezon City.

B. SCOPE

This MC covers buyers in good faith of:

1. All imported Complete Built Units (CBUs) and

2. All CBUs from imported replacement parts indicated only by the engine and or chassis/Vehicle Identification Number (VIN) EITcaH

3. All imported motorcycles

C. EXCLUSION

The following imported motor vehicles are excluded from this MC:

1. Motor Vehicles imported pursuant to the Motor Vehicle Development Program (MVDP) of the government;

2. Motor Vehicles imported by embassies, consulates and other diplomatic missions; and

3. Trucks and buses covered by Certificate of Payments (CPs) which indicated the payment of duties and taxes for the whole motor vehicle by the Department of Trade and Industry (DTI) accredited rebuilders.

D. DEFINITION OF TERMS

A buyer in good faith is:

1. One who is not the importer of the motor vehicle nor has acted as agent for the importer in effecting the importation but who is able to identify the seller of the motor vehicle; DISHEA

2. One who has verified the existence/genuineness of the BOC CP and the LTO Certificate of Registration (CR) at the time of purchase of the motor vehicle; and

3. One who has no personal knowledge that the motor vehicle was imported without payment of taxes and duties or with deficiencies.

E. GENERAL PROCEDURE

Step 1 — Office of the Assistant Secretary thru the Executive Director

Submission of:

a. Letter-request of the applicant

b. Affidavit of Undertaking

c. Certificate of Registration (CR)

d. Latest Official Receipt (OR) of payment of registration fees

e. Actual inspection of motor vehicle with duly accomplished and approved Motor Vehicle Inspection Report (MVIR)

f. Taxpayer's Identification Number (TIN)

g. Stencils of engine and chassis numbers

Output: Indorsement to the BOC/PASG for appropriate action.

Step 2 — Bureau of Customs/Presidential Anti Smuggling Group

Output:

a. Issuance of Official Receipt covering payment of taxes and duties to owner

b. Issuance of original copy of Certificate of Payment (CP) to be transmitted to LTO through a BOC official courier HDATCc

c. BOC/PASG Clearance

Note: All original BOC Certificate of Payments shall be forwarded to the LTO Registration Section, Central Office through an official courier

Step 3 — LTO Registration Section

Output:

a. Confirmation of OR

b. Certification of Stock Reported (CSR)

Step 4 — LTO District Office

a. LTO CP confirmation

b. Issuance of Official Receipt covering payment of taxes and duties

c. CSR

d. PNP TMG Clearance

e. Certificate of Compliance to Emission Standard (CCES) for used imported motor vehicles

f. Smoke Emission Test

g. Appropriate Insurance Certificate of Cover

Note: For owners of imported motor vehicles outside the NCR, the actual inspection shall be done at the district office nearest their residence.

F. VENUE OF REGISTRATION

1. For effective monitoring of the registration of these imported motor vehicles initial/original registration shall be restricted to the following district offices only: acCITS

a. Diliman District Office

b. Quezon City District Office

c. Pasay City District Office

d. Caloocan City District office

2. For renewal registration, the originating district official shall be furnished a photocopy of the amendment of the CP and the BOC/PASG clearance.

3. For transfer of ownership, it shall be effected at the aforecited four (4) district offices provided confirmation of the documents shall be done and a copy of the amendment of the CP and the BOC/PASG clearance shall be furnished the originating agency.

G. REPORTING SYSTEM

All registering district offices, new and renewal, shall submit a report twice a month to the Registration Section — Central Office. ISaCTE

H. PENAL CLAUSE

Any personnel found to have violated the provisions of the Memo Circular shall be dealt with accordingly.

I. REPEALING CLAUSE

Previous orders, memoranda, circulars, rules and regulations in conflict herewith are hereby deemed superseded and or modified accordingly.

J. EFFECTIVITY

This Memo Circular shall take effect fifteen (15) days after publication.

Adopted: October 5, 2007

Date Filed: October 31, 2007

 

(SGD.) REYNALDO I. BERROYAAssistant Secretary

Published in the National Administrative Register, Vol. XVIII No. 4 (October-December 2007).