Law Summary

I. Introduction

This memorandum issued on April 3, 1995, establishes guidelines for the importation and registration of motor vehicles by investors in Philippine Freeport and Special Economic Zones (SEZs). It aims to implement control measures for the movement and registration of these vehicles.

II. Import Permit Requirement

• Legal Principle: All motor vehicles imported by registered enterprises within the Freeport/SEZ must have an Import Permit issued by the Subic Bay Metropolitan Authority (SBMA).
• Key Definitions:
  • Investors/Registered Enterprises: Entities authorized to operate within the Freeport/SEZ.
• Requirements:
  • Import Permits are mandatory for all vehicles.
  • Usage of vehicles is restricted to the secure area until further regulations are issued.
• Consequences: Non-compliance with the Import Permit requirement may lead to penalties or denial of registration.

III. Processing of Import Entry Declarations

• Legal Principle: Designated District Collectors are responsible for processing the import entry declarations of motor vehicles.
• Requirements:
  • Examination and assessment of the vehicles are mandatory.
  • Issuance of clearance certificates is necessary for vehicle registration.
• Deadlines: No specific timeframes are mentioned for processing, but prompt action is implied.

IV. Clearance Certificates

• Legal Principle: Clearance certificates serve as substitutes for certificates of payment for vehicle registration with the Land Transportation Office (LTO).
• Requirements:
  • Issuance of a clearance certificate is required before registration with the LTO.

V. Registration Process with the Land Transportation Office

• Legal Principle: The LTO provides registration receipts for the vehicles.
• Key Definitions:
  • Registration Receipt: Official document indicating the vehicle is registered.
• Requirements:
  • Registration receipts must include a notation: “Tax Exempt under RA 7227: Subject to Payment of Customs Duties and Taxes upon Transfer.”
• Consequences: Vehicles not properly registered may face legal repercussions.

VI. Monitoring and Coordination

• Legal Principle: Zone authorities and the LTO must coordinate to monitor the use of vehicles.
• Requirements:
  • Issuance of distinctive plates and appropriate markings to indicate compliance with RA 7227.
  • District Collectors must coordinate with Freeport/SEZ authorities for effective implementation.
• Deadlines: Monthly reports of processed motor vehicles are required from District Collectors.

VII. Implementation and Effectivity

• Legal Principle: The memorandum takes effect immediately upon adoption.
• Key Definitions:
  • RA 7227: Refers to the law providing tax exemptions for vehicles in the Freeport/SEZ.
• Consequences: Immediate compliance is expected from all stakeholders involved.

Key Takeaways

• All motor vehicles imported by investors in Freeport/SEZ must be accompanied by an Import Permit from SBMA.
• District Collectors are responsible for processing import entries and issuing clearance certificates, which are necessary for vehicle registration.
• The LTO registration includes specific notations regarding tax exemptions and potential duties upon transfer.
• Effective monitoring and coordination between authorities are essential, with mandatory monthly reporting of vehicle processing.
• The guidelines are effective immediately, emphasizing the need for compliance by all registered enterprises.