Law Summary

1. Objectives

This section outlines the goals of the Memorandum Order.

• Legal Principle: The Order aims to streamline the process related to imported personally-owned vehicles (POVs).
• Key Objectives:
  • Ensure proper collection of taxes and duties on imported POVs.
  • Register only legally released imported POVs with the Land Transportation Office (LTO).
  • Establish an automated centralized file of legally released imported POVs for law enforcement.

2. Scope

Defines the applicability of the Order.

• Coverage:
  • All imported POVs, regardless of their status (with or without SGS-CRF, used or brand-new).
  • Applicable to ports including Port of Manila, Manila International Container Port, Port of Subic, Sub-port of Clark, and Port of Cebu.

3. General Provisions

Establishes procedural and institutional changes.

• Key Provisions:
  • The Warrant and Motor Vehicle Unit is transferred to the Office of the Commissioner, maintaining its functions.
  • Installation of an automated Car Valuation System at the Office of the Commissioner, regularly updated by the Valuation Center and Library (VCL).
  • Processing of imported POVs must adhere to existing regulations unless otherwise specified in this Order.
  • Certificates of Payment (CPs) must be submitted to the Office of the Commissioner for review and transmittal to the LTO.

4. Operational Provisions

Details the operational requirements for processing imported POVs.

• Procedures:
  • Upon release of POVs, the Chief of relevant ports/units must forward a signed CP to the Commissioner of Customs.
  • Required documents for CP submission include:
    • Original Customs Entry (front and back).
    • Commercial Invoice/Bill of Sale.
    • SGS-CRF, if applicable.
    • Automated or manual tax and duty computation.
    • If exempt from excise tax, the Authority to Release Imported Goods (ATRIG) from the Bureau of Internal Revenue (BIR).
    • For used vehicles, an Import Authority from the Bureau of Import Services (BIS).
  • The Office of the Commissioner will review documents and maintain an automated record of POV importations.
  • If documents are in order, the CP will be transmitted to the LTO; otherwise, necessary actions will be taken.

5. Repealing Clause

Addresses the consistency of this Order with existing regulations.

• Key Details:
  • All conflicting rules and regulations are repealed, superseded, or modified accordingly.

6. Effectivity

Specifies the commencement of the Order’s provisions.

• Effective Date: This Order takes effect immediately upon adoption, dated August 16, 1999.

Key Takeaways

• The Memorandum Order establishes a centralized system for processing Certificates of Payment for imported personally-owned vehicles to enhance tax collection, ensure proper vehicle registration, and maintain records for law enforcement.
• It mandates specific documentation and procedural requirements for the release of POVs and outlines the roles of different offices within the Bureau of Customs and the Land Transportation Office.
• All existing conflicting regulations are overridden by this Order, effective immediately from the date of adoption.