Title
EO 142 Motor Vehicle Tax Clearance Rules
Law
Lto-boc-bir Joint Department Order No. 2002-82
Decision Date
Nov 26, 2002
Taxable imported motor vehicle owners must secure clearances from the Bureau of Customs and Bureau of Internal Revenue before initial registration or renewal with the Land Transportation Office to ensure the payment of duties, taxes, and fees.
A

Scope

  • Applies to taxable imported vehicles.
  • Excludes vehicles imported under the Car Development Program by manufacturers and assemblers registered with the Board of Investments.

Coverage and Application

  • Initially covers completely built-up (CBU) imported motor vehicles, including motorcycles.
  • Locally assembled or re-assembled vehicles with imported parts to be covered under a separate order.
  • Applications for initial registration for unregistered imported vehicles (outside customs zones) accepted until April 30, 2003.
  • Applies initially for vehicles imported from January 1, 2000 to December 31, 2002 for registration renewal.
  • Clearance requirement is a one-time process per vehicle.

Clearance Requirement for Registration

  • Registration or renewal of imported vehicles prohibited without clearances from Bureau of Customs (BOC) and/or Bureau of Internal Revenue (BIR).
  • Clearances certify payment of correct duties, taxes, and fees or settlement pursuant to the order.

Assistance and Implementation Measures

  • LTO, BIR, and BOC personnel to assist vehicle owners for smooth payment and clearance processing.
  • Establishment of a One-Stop-Shop Clearance Office (OSSCO) at LTO Compound for streamlined service.
  • Separate memorandum orders by LTO, BIR, and BOC to enforce these guidelines.
  • Disciplinary actions against personnel violating the provisions.
  • Creation of an information feedback loop for resolving clearance issuance issues.

Roles and Responsibilities: Land Transportation Office (LTO)

  • Provide space and facilities for OSSCO.
  • Accept vehicle registration and renewal applications.
  • Forward applications and documents to BOC/BIR for verification.
  • Proceed with vehicle registration after clearance and compliance with other LTO regulations.

Assignment and Functions of BOC/BIR Personnel at OSSCO

  • Dedicated BOC/BIR units under respective Commissioners detailed to OSSCO to facilitate payments and clearances.

Bureau of Customs (BOC)

  • Verify LTO applications and supporting documents.
  • Receive payment of duties, taxes, and fees.
  • Issue Certificate of Payment for vehicles with no prior duties paid.
  • Grant BOC clearance and issue car stickers.

Bureau of Internal Revenue (BIR)

  • Verify applications and authenticity of documents.
  • Issue Certificate of Tax Clearance when applicable.

Repealing Clause

  • Revokes or supersedes inconsistent prior orders.

Effectivity

  • The Joint Department Order took effect immediately upon issuance on November 26, 2002.

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