3-Year Registration for Brand New Motor Vehicles

The authority to prescribe registration procedures is anchored on Section 4(d), Article III, Chapter I of Republic Act No. 4136, as amended.
The registration scheme is anchored on Section 5 of Batas Pambansa Bilang 74, requiring registration of motor vehicles and trailers used or operated on Philippine highways and basing annual registration dates on a registration scheme prepared by the Bureau of Land Transportation and approved by the Minister (now Secretary).
The motor vehicle registration rate for the covered scheme is tied to Republic Act No. 8794, through the Motor Vehicle User’s Charge collection.

The Order establishes that the initial registration of all brand new motor vehicles is valid and effective for three (3) years from the date of first registration.
The initial three-year registration scheme requires compliance with environmental conformity and compulsory insurance requirements before registration is effective.

“Brand new motor vehicles” are new and unregistered motor vehicles that are manufactured, assembled, imported, distributed, and/or sold by corporations or companies accredited by or members of CAMPI, TMA, or MDPPA.
CAMPI means Chamber of Automotive Manufacturers of the Philippines, Inc.
TMA means Truck Manufacturers Association.
MDPPA means Motorcycle Development Program Participants Association.
The coverage includes brand new motor vehicles imported by other LTO accredited entities.
The scheme excludes backyard-assembled and imported used motor vehicles.
The scheme excludes motorcycles with engine displacement of 200 cc and below.

Initial registration of covered brand new motor vehicles is valid for three (3) years from first registration.
Initial registration requires a Certificate of Conformity (COC) issued by the Department of Environment and Natural Resources (DENR).
Initial registration also requires a Compulsory Third Party Liability insurance policy valid for three (3) years.

The rates of the Motor Vehicle User’s Charge imposed under Republic Act No. 8794 are collected from the owner of covered motor vehicles for the registration of the units.

If a covered motor vehicle is apprehended within the period of its initial three-year registration for violations attributable to the motor vehicle (e.g., smoke belching or non-roadworthiness), the vehicle must still undergo the accessory penalty or penalties of passing the Motor Vehicle Inspection and/or Emission Tests.

Any memoranda or orders (including their memoranda or orders) that are inconsistent with the Order are repealed or amended accordingly.

The Order takes effect ninety (90) days after publication in two (2) newspapers of general circulation in the Philippines, or after filing three (3) copies with the University of the Philippines Law Center.