NDI Guidelines for LGUs' Used Vehicle Donation

Department of Trade and Industry (DTI) through the Bureau of Import Services (BIS) is designated as the implementing agency responsible for enforcing the guidelines.

LGU: Includes Provinces, Cities, Municipalities, and Barangays.
Donee: Any local government unit regardless of donor qualification abroad.
Motor Vehicles: Includes cars, motorcycles, trucks, buses, and special purpose vehicles.

All LGUs are qualified to import used motor vehicles under the no-dollar importation through donation scheme.

Used motor vehicles must be certified as roadworthy and emission compliant by the country of origin, with certification authenticated by the Philippine Embassy or Commercial Attache.
Vehicles must be left-hand drive at the time of importation, as reflected in shipping documents.
Luxury vehicles are excluded, defined by price or engine displacement specifications.
The quantity must be reasonable relative to the LGU's population, area, and needs.
Ownership cannot be disposed within five years or specific penalties apply, including the buyer being treated as importer with corresponding tax liabilities.
A Deed of Donation naming the specific LGU is mandatory.
LGU's local legislative council must pass a resolution accepting the donation.

Use of foreign exchange reserves for the importation is prohibited.
Prior authority from DTI-BIS required before importation.
Application must include specific documents: application form, affidavit, authenticated deed of donation and acceptance, request letter, roadworthiness certificate, and LGU resolution.
Import authority valid for 120 days.
Upon arrival, release clearance requires documents including bill of lading, import declaration, and motor vehicle registration from origin country.
Land Transportation Office (LTO) inspection and compliance with registration requirements are prerequisites.

Qualified importations under this scheme are exempt from additional specific duties under EO No. 418, s. 2005.
Only left-hand drive vehicles will be registered by the LTO.
Registration must be in the name of the donee LGU.
A "No Resale for Five Years" condition is mandated and noted on the certificate of registration.

Amendments to these guidelines may be recommended by the DTI in consultation with concerned LGUs.
Violations result in penalties as provided under Section 5 of EO 156 (s. 2002).
Consistent repeal or modification of prior guidelines upon effectivity.
Includes a separability clause preserving unaffected provisions if any part is declared unconstitutional.
Guidelines take effect 15 days after publication in two newspapers.