QuestionsQuestions (BOC MEMORANDUM ORDER NO. 4-2003)
Only brand-new CKD parts and components for assembly purposes, sourced from a foreign Original Equipment Manufacturer (OEM), are allowed for importations under the MVDP.
They are subject to the regular customs duty rates following the 'essential character' principle under the rules of classification in Section 103 of the Tariff and Customs Code of the Philippines (TCCP).
It allows brand-new CKD parts/components imported by MVDP participants to enjoy applicable CKD duty rates specific to MVDP importations, as determined by existing rules and/or BOI-DTI.
Customs must closely and continually coordinate with BOI to maintain an updated list of MVDP participants and their respective foreign OEMs.
CKD refers to completely knocked down parts and components, including sub-parts/parts and sub-assemblies/assemblies of motor vehicles for assembly into a complete unit.
Major parts/components such as engines, transmissions, axle assemblies, chassis, body assemblies and the like.
Their importation is governed by Central Bank Circular (CBC) No. 1389, as amended, and requires prior clearance from the Board of Investments (BOI-DTI).
Examples include dashboards, doors, running boards, fenders, radiator cowlings, floor mats (other than of textile material/rubber), seats of a kind used for motor vehicles, and other accessories listed under Section II.
Used motor vehicles are banned importations through all ports, including special economic zones/free ports, except the specific exceptions enumerated in the order.
(a) Personally owned vehicles imported by returning residents/immigrants under the No-Dollar Importation (NDI) Scheme with DTI-BIS Import Authority; (b) vehicles for diplomatic corps officials authorized by DFA; (c) trucks (excluding pick-up trucks) with GVW 2.5–6.0 tons with DTI-BIS authority; (d) buses with GVW 6–12 tons with DTI-BIS authority; and (e) Special Purpose Vehicles, which do not require import authority.
They must not exceed GVW of 3 tons, must be covered by a DTI-BIS Import Authority, and must not be sold within three years from date of importation.
Liberalized used motor vehicles (no DTI-BIS import authority required) need a Certificate of Roadworthiness and a Certificate of Compliance to Emission Standards from the appropriate agency in the country of origin. Regulated used motor vehicles (those requiring DTI-BIS authority) need a Release Certificate issued by DTI-BIS.
The covering Certificate of Payment shall be withheld until compliance, or a similar certification is issued by the competent authority.
Current/advance year models or immediately preceding year models with 200-km or less mileage, acquired from the dealer by the importer as the first owner.
Yes. Brand-new motor vehicles remain liberalized importations pursuant to E.O. 264 (1995) and Monetary Board Circular No. 92 (1995), and thus do not require import authority.
RHD vehicles, brand-new or used, remain banned importations as mandated by R.A. 8506.
The motor vehicle shall be subject to seizure by the Bureau of Customs without benefit of redemption.