Revised Rules and Regulations on the Sales Reporting and Initial Registration of Brand New and Other Motor Vehicles

January 24, 2014

LTO ADMINISTRATIVE ORDER NO. AVT-2014-024

REVISED RULES AND REGULATIONS GOVERNING THE SALES REPORTING AND INITIAL REGISTRATION OF BRAND NEW AND OTHER MOTOR VEHICLES

In accordance with the provisions of Republic Act No. 4136, otherwise known as the Land Transportation and Traffic Code, as amended, the following rules and regulations governing the sales reporting and initial registration of all motor vehicles are hereby prescribed and promulgated for the compliance, information and guidance of all concerned:

1. Coverage

These regulations shall govern the sales reporting and new or initial registration of all types of motor vehicles, including the subsequent miscellaneous and renewal transactions thereof.

2. Objectives — These regulations are effected in order to:

2.1 Streamline the process of registration as all pre-registration matters, including sales reporting, are presently done at the Regional Offices of the Land Transportation Office (LTO);

2.2 Remove the negative effects brought about by decentralization, such as loss of records, double transactions, fraudulent transfers, etc.;

2.3 De-clog the transaction load of District and Extension Offices, allowing faster processing of renewal and miscellaneous registrations;

2.4 Eliminate Request for System Updates of motor vehicle details;

2.5 Eliminate red tape and excessive bureaucracy as accredited Dealers will be able to complete the initial registration of their reported sales at the Regional Offices, without the additional need to go to and transact with the District and Extension Offices;

2.6 Improve the system of ordering, distribution and issuance of license plates for production; and

2.7 Ensure the efficient release of license plates nationwide.

3. Definition of Terms

3.1 Motor Vehicles — as defined under RA 4136, shall mean any vehicle propelled by any power other than muscular power using the public highways, but excepting road rollers, trolley cars, street-sweepers, sprinklers, lawn mowers, bulldozers, graders, forklifts, amphibian trucks, and cranes if not used on public highways, vehicles which run only on rails or tracks, and tractors, trailers and traction engines of all kinds used exclusively for agricultural purposes. EcaDCI

 Trailer having any number of wheels, when propelled or intended to be propelled by attachment to a motor vehicle, shall be classified as separate motor vehicle with no power rating.

3.2 New Vehicle — as defined under this Order, shall refer to the new and unregistered motor vehicles manufactured, assembled, imported, distributed and/or sold by LTO accredited entities.

3.3 Rebuilt Motor Vehicles — refers to motor vehicles that are locally assembled or manufactured with one or more used major components.

3.4 Initial Registration — refers to the first registration of a motor vehicle in the Philippines with the LTO.

3.5 Renewal Registration — refers to the subsequent registration of motor vehicles already registered with the LTO.

3.6 Sales Reporting — refers to the requirement of reporting all motor vehicle sales to the LTO prior to its registration.

4. Types of Motor Vehicle Registration

4.1 Initial Registration

4.1.1 Brand New

4.1.1.1  Locally assembled/manufactured Completely Built Units (CBUs)

4.1.1.2  Imported CBUs

4.1.2 Others

4.1.2.1  Imported used CBUs

4.1.2.2  Rebuilt Motor Vehicles

4.1.2.3  Imported CBUs acquired through public bidding conducted by the Bureau of Customs (BOC).

4.1.3 Special

 New registration with special qualification transactions falling under this type are those that are registered for the first time in the Philippines but no Certificate of Registration (CR) is issued. Thus, they are distinctly categorized as Special. cDECIA

4.1.3.1  Underbond MVs

 Tax exempt imported MVs specifically for the use of Foreign Consultants for six-month period counted from the date of issuance of the official receipt evidencing payment of registration fees with LTO, after six months, they are subject to re-exportation, unless extended for the same period by the Bureau of Customs; and

4.1.3.2   MVs under Written Commitment

 Tax exempt imported MVs indorsed by the Department of Finance for use in various projects in the Philippines. After the specific project for which they are imported is completed, they are subject for re-exportation, unless extended by the Bureau of Customs.

4.2 Renewal — Subsequent registration after initial MV registration

4.2.1 Renewal registration for all classifications (private, for hire, government, diplomatic);

4.2.2 Other Exempt Vehicles (OEV) (e.g., from SBMA, Clark Development Corporation and Cagayan Export Zone Authority).

4.3 Miscellaneous Transactions

4.3.1 Transactions Requiring Change of Certificate of Registration:

4.3.1.1  Annotation of Mortgages and Other Liens or Encumbrances

4.3.1.2  Cancellation of Mortgage or Other Liens and Encumbrances

4.3.1.3  Cancellation of Mortgage when the Financing Company (mortgagee) no longer exists and the Release of Mortgage Contract is missing

4.3.1.4  Change Classification:

a. Private to For Hire

b. For Hire to Private cACEHI

c. Private to Government

d. Government to Private

e. Diplomatic to Private

f. Private to Diplomatic

g. Diplomatic to Government

4.3.1.5   Change Engine from Previously Registered MVs

4.3.1.6  Duplicate Certificate of Registration (CR)/Certificate of Registration Encumbered (CRE)

4.3.1.7  Replacement of Certificate of Registration (CR)/Certificate of Registration Encumbered (CRE)

4.3.1.8  Registration of MVs Acquired through:

a. Donation

b. Extra-Judicial Settlement of Estate of Deceased Person

c. Judicial Settlement of Estate of Deceased Person

d. Public Bidding conducted by a Government Office/Entity

e. Public Auction before a Notary Public through Mechanic's Lien

4.3.1.9  Transfer of ownership

a. Private MVs

b. For Hire MVs

c. Covered by CB No. 1158 Purchased from "Balikbayans"

d. Purchased from Diplomatic/Tax Exempt Personnel AcEIHC

e. Obtained under an Extra-Judicial Foreclosure Sale Conducted Before the Notary Public (Arts. 2112/2114, New Civil Code of the Philippines in relation to Act 1508)

f. Obtained Under a Sheriff's Certificate of Sale Issued under a Judicial Foreclosure

g. Obtained under Sheriff's Certificate of Sale Pursuant to a Money Judgment which has become final

h. Underbond MVs

4.3.2 Transactions Not Requiring Change of Certificate of Registration

4.3.2.1  Change Color

4.3.2.2  Duplicate Plates

4.3.2.3  Replacement Plates

4.3.2.4  Issuance of Vanity License Plates

4.3.2.5  Issuance of Special Permits

4.3.2.6  Optional MV Special Plate

4.3.2.7  Re-stamping of Engine/Chassis Identification Numbers

4.3.2.8  Reactivation of Stored MVs

4.3.2.9  Recorded MVs

4.3.2.10 Replacement of Official Receipt (OR) of Payment of Registration Fees

4.3.2.11 Replacement Stickers

4.3.2.12 Request for Confirmation/Reply to Confirmation

4.3.2.13 Storage of MVs

4.3.2.14 Use of Security Plates/Stickers

5. Venue for Registration

5.1 The initial registration of all types of new motor vehicles subject hereof shall be done only at the appropriate Regional Office where the sale of the particular motor vehicle is reported. The MV File Number for the newly registered motor vehicle shall be the agency code assigned to the Regional Office. cDSaEH

5.2 The Regional Office shall provide the necessary personnel to handle the subject initial registrations, with as many Evaluators, Approving Officers and Cashiers and Records Officers as may be required.

5.3 All records pertaining to the subject initial registration shall remain in the custody of the Regional Office.

5.4 Renewal and miscellaneous transactions thereof may be done at any LTO District or Extension offices capable of handling the same.

6. Registration Requirements for Brand New Motor Vehicles

The Documentary Requirements for the initial registration of all types of new motor vehicles, including the subsequent miscellaneous and renewal transactions thereof, shall remain the same.

7. Registration Processes

7.1 Any natural or juridical person desiring to transact business with the LTO relative to motor vehicles and/or its components, should be duly accredited under the existing rules and regulations for Manufacturers, Assemblers, Importers, Rebuilders, Dealers and Other Entities Authorized to Import Motor Vehicles and/or its Components (MAIRDOEs).

7.2 No motor vehicle sale shall be reported and registered without prior stock reporting in accordance with existing rules.

7.3 Procedure:

7.3.1 The receiving personnel of the Regional Office shall accept applications for sales reporting and initial registration, and thereafter, forward the same to the Evaluator for sales reporting.

7.3.2 The Evaluator for sales reporting shall determine the completeness of the requirements for sales reporting and initial registration based on the checklist provided. The application is rejected outright when the documentary requirements are incomplete. CcSTHI

7.3.2 n  If complete, the Evaluator encodes the Customer Details of the sales reported and transmits the same to the Approving Officer for sales reporting. No data shall be encoded in the system by the Regional Office apart from the relevant Customer Details of the particular motor vehicle. In case of any missing data in the system, the application shall be rejected and the registrant shall be advised to return the documents to the appropriate MAIRDOE for correction and/or completion in the system.

7.3.3 The Approving Officer for sales reporting approves the sales report, if warranted, and transmits the same to the Evaluator for initial registration. The Evaluator for initial registration checks the type of transaction and validates the registration requirements in the system only prior to transmitting the same to the Approving Officer for registration for approval. Pending the execution of an agreement with the Philippine National Police to exempt the evaluation of the PNP Clearance prior to registration, only the PNP Clearance shall be evaluated manually. All other requirements shall be validated in the system only. 

7.3.4 The Approving Officer for registration reviews the completeness and authenticity of the supporting documents, reviews the digital images and if so warranted, approves the transaction and sends the documents to the Cashier.

7.3.5 The Cashier collects payment and issues the appropriate computer-generated official receipt, and sends the documents to the Supply Officer. The payment made initiates the issuance of the plates, stickers and/or Certificate of Registration.

7.3.6 The Supply Officer releases the stickers, plates and prints the Certificate of Registration and forwards the documents with the printed CR to the Approving Officer for signature. The Supply Officer shall then tag the plates and sticker in the system as released.

7.3.7 The Records Officer dockets the plate and sticker number on the logbook and writes the sticker number in the OR. The client will then be required to sign the logbook for plate, stickers and CR for audit purposes. The Records Officer keeps and files the supporting documents after the transaction is completed. CEDScA

7.3.8 The Regional Office shall be charged with the monthly post audit of all registrations transacted, including the completeness and authenticity of the required documents and shall submit the same to the Internal Audit Division (IAD) of the Central Office for validation. Said Monthly Post-Audit Report of all initial registrations shall be prepared and certified correct by the designated employee, certified correct and recommended by the Assistant Regional Director, and certified correct and approved by the Regional Director, to be submitted within ten (10) days of the following month. No report shall be accepted without the certifications and signatures of all the above officials/employees.

 Attached herewith as Annex "A" is the Process Flow of the New Procedure for Sales Reporting and Initial Registration in the Regional Office.

7.4 The procedure for the renewal registration of new motor vehicles registered under this Order, and that of under previous Orders, Rules and Regulations, shall remain the same and may be accomplished in any LTO District or Extension Office.

7.5 Miscellaneous Transactions

7.5.1 The procedure for miscellaneous transactions of new motor vehicles registered under this Order and that of under previous Orders, Rules and Regulations, shall remain the same and may be accomplished in any LTO District or Extension Office.

7.5.2 In cases of Miscellaneous Transactions requiring the records of its registration from the Regional Office, the following shall be observed:

7.5.2.1  The concerned District or Extension Office shall request the Regional Office for the appropriate registration documents of the motor vehicle;

7.5.2.2  The Records Officer of the Regional Office shall release certified true copies of such registration documents to the requesting office. The latter shall take the appropriate action and return the same documents together with the original copies of the resulting transaction documents, i.e., original CR, Plate Receipt, to the Regional Office. ScCIaA

7.5.2.3  The entire transaction, including the return of the pertinent documents must be completed within a period of seven (7) days from receipt of the application.

7.5.2.4  The custody and safekeeping of registration documents is the primary responsibility and liability of the Records Officer of the Regional Office.

7.5.2.5  In the case of a request from a District Office in one region to another region, the same shall be coursed through the Regional Office of the requesting District Office to the Regional Office of the concerned District Office following the procedure detailed above.

8. Inspection of Motor Vehicles

Brand New Motor Vehicles shall be exempt from inspection. All other types of new motor vehicles under 4.1.2 and 4.1.3 shall be subject to inspection. No motor vehicle shall be accepted for renewal registration and miscellaneous transactions requiring inspection unless fully inspected in accordance with the standards and procedures of motor vehicles inspection.

9. Administrative Liability

Any official or employee who, after due notice and hearing, is found guilty of committing any of the following acts, either willfully or through negligence, shall be administratively liable for offense(s) defined under the Civil Service Laws, rules and regulations:

9.1 Registering or causing the registration of a motor vehicle in violation of any of the provisions of this Order;

9.2 Reporting or certifying that a motor vehicle passed the standards set when such is not the case;

9.3 Reporting or certifying that a motor vehicle was properly registered when such is not the case;

9.4 Failure to file and certify any required report;

9.5 Conspiring and/or assisting in the commission of any of the foregoing acts; and aESIDH

9.6 Violating or preventing, by his act or omission, the enforcement or implementation of any of the provisions of this Administrative Order.

10. Repealing Clause

All prior orders, circulars and memoranda as well as any related issuances or part thereof inconsistent with these provisions are hereby repealed or amended accordingly.

11. Separability Clause

Should any part hereof should be declared unconstitutional or in violation of any existing law, the provisions not so affected shall remain valid and in full force and effect.

12. Effectivity

This Order shall take effect fifteen (15) days after publication in the Official Gazette or in the two (2) newspapers of general circulation in the Philippines.

Recommending Approval:

 

(SGD.) ATTY. ALFONSO V. TAN, JR.Assistant Secretary

Approved:

 

(SGD.) HON. JOSEPH EMILIO A. ABAYASecretary

ANNEX A

 

Process Flow of the New Procedure for Sales Reporting and Initial Registration in the Regional Office

 

n   Note from the Publisher: Copied verbatim from the official copy. Duplication of paragraph 7.3.2.