Question & AnswerQ&A (CDC MEMORANDUM CIRCULAR NO. ERD-11-323)
Section 13 of Republic Act 7227, as amended by Republic Act No. 9400, mandates the SBMA as the Zone Management Authority of the Subic Special Economic and Freeport Zone.
The guidelines harmonize the policies relevant to the duty-free and tax-exempt motor vehicle admission privilege for persons and entities operating inside the Subic Bay Freeport (SBF) and Clark Freeport Zone (CFZ).
The guidelines cover self-propelled land transportation motor vehicles designed to travel on roads, classified as Utility-Service/Special-Purpose Vehicles, Tourist-Service Vehicles, and Company-Service Vehicles.
Locators with valid Certificate of Registration and Tax Exemption (CRTE) and valid Lease Agreements with at least three years remaining may apply, subject to criteria and limitations specified by the Zone Authority.
An applicant Locator must have an investment of US$600,000 or its peso equivalent for every motor vehicle admitted. Additional vehicles can be availed for each additional investment of US$600,000.
Maximum allowed are 10 Utility Vehicles, 6 Tourist Service Vehicles, and 6 Company Vehicles.
No sale, transfer, assignment, or payment of duties and taxes is allowed within three years from the date of admission without prior written clearance from the Zone Authority.
There is a fine of US$5,000 for shipping/loading a motor vehicle before receiving approval from the Zone Authority.
Vehicles can be used outside the Freeport Zone for up to 336 hours (14 days) in a month, subject to possible extensions upon prior written approval.
The Authorities use GPS (Global Positioning System) with accredited service providers and Radio Frequency Identification (RFID) systems installed at all Freeport Zone gates for monitoring vehicle in-and-out movement.
A processing fee of US$100 per vehicle is assessed, except for 'green vehicles' which have a fee of US$20. Annual LTO registration renewals require a US$25 administrative fee per vehicle.
There is a fine of US$20 per hour for the first 10 hours and US$25 per hour thereafter. After 48 hours of violation, the case is reported to BOC and LTO; CRTE suspension or cancellation may be imposed.
A fine of US$1,000 will be imposed for failure to present the vehicle for required inspection or inventory.
The Zone Authority’s Motor Vehicle Registration unit or its equivalent office has the authority to approve extensions upon receipt of a written request with reasons.
Only if the official stature of the assignee requires it, and this is strictly limited to the Chairman, Board Members, President, or Vice-President on a one-to-one official to luxury vehicle basis.