Question & AnswerQ&A (LTO MEMORANDUM CIRCULAR 776-2006)
The main purpose of LTO Memorandum Circular 776-2006 is to provide guidelines and procedures in sales reporting of motor vehicles by accredited dealers to ensure legitimate sales are recorded in the MAID Registration System and to streamline the motor vehicle registration process.
Accredited dealers of motor vehicles who act as agents for the sale of one or more makes, styles, or kinds of motor vehicles who keep stock or sell motor vehicles are required to submit regular sales reports.
Accredited dealers must report their sales to the MAIDRS Section, Operations Division of the Regional Offices regularly at least once a week or as often as necessary.
The required documentary requirements include sales report using the prescribed form, sales invoice (2nd copy or certified xerox), sales certification using the attached form, stencil of engine/chassis/frame numbers, and certified xerox copy of certificate of stock reported (CSR).
The MAIDRS Section must evaluate the supporting documents within two days upon receipt of the sales report and upload/encode the details of the sale in the MAID Registration System.
The LTO district office evaluator verifies the stocks and sales data in the MAIDRS electronically via online confirmation using the engine or chassis number, employing a hard validation procedure to ensure the correctness and validity of data.
Any official or employee found violating this memorandum circular shall be subjected to disciplinary action in accordance with existing office and Civil Service rules and regulations.
All orders, circulars, and memoranda in conflict with LTO Memorandum Circular 776-2006 are deemed superseded.
The requirements are based on Item B of MC No. 33 dated Oct. 6, 1977, Section 5(c) of BP Blg. 74 dated June 2, 1980, Section 3 of Circular No. 84C-DIR-013 dated July 23, 1984, and item no. 5 of MC No. 513-2004 dated April 30, 2004.
Because issuing confirmation of the commercial sales invoice without corresponding stock and sales reports submitted by dealers or manufacturers and without accompanying sales certification and stencils is against existing LTO laws, rules, and regulations. Thus, authenticated sales invoice alone violates the required documentary process.