Title
LTO Accreditation and Inspection of Used Imported Vehicles
Law
Lto Memorandum Circular No. Rtl-mc-02402
Decision Date
Jul 23, 2002
The LTO Memorandum Circular mandates that all importers of used motor vehicles must obtain a Motor Vehicle Inspection Certificate from accredited service shops at major ports of entry to ensure compliance with safety and environmental standards before registration and travel.

Legal basis and regulatory anchors

  • The Circular is issued pursuant to Republic Act No. 4136.
  • The Circular is also issued pursuant to Republic Act No. 8749 (the Philippine Clean Air Act of 1999) and its implementing rules and regulations.
  • The Circular adopts inspection standards and methods “based on or adopted from” LTO Administrative Order AO-91-005, Sections 6–20.

Coverage and what the MVIC authorizes

  • All importers of used motor vehicles must secure a Motor Vehicle Inspection Certificate (MVIC) before release from Bureau of Customs custody and/or major ports of entry in the Philippines.
  • The MVIC must come from a duly accredited DOTC-LTO Inspection/Testing Service Center serving as Alternate Inspection/Testing Sites.
  • The MVIC functions as a special permit to travel and as the basis for LTO initial/first registration.
  • MVIC coverage is required in areas where accredited service shops operate as alternate inspection/testing sites.

Accreditation of inspection/testing shops

  • Any inspection/testing shop strategically situated within major ports of entry may apply for accreditation with the Assistant Secretary of the Land Transportation Office.
  • The Committee of Accreditation verifies the correctness and truth of supporting documents in the application.
  • The Committee conducts an ocular inspection of the applicant’s establishment, equipment, instruments, and gadgets to determine their adequacy for efficient inspection/testing of used-imported motor vehicles.
  • An accreditation permit is issued to qualified applicants who meet the required standards.
  • The accreditation permit is valid for one year from the date of issuance, and renewal is allowed upon compliance with the requirements.

Required documents and fees

  • Accreditation applications require notarized/authenticated supporting documents for photocopied documents.
  • The following documents are required for accreditation:
    • SEC Certificate of Registration, Article of Incorporation and By-Laws;
    • Current Mayor’s Permit showing the total area of the establishment;
    • Latest Income Tax Return of the company;
    • Latest Audited Financial Statement by a CPA, with paid-up capital of not lower than Php 50M;
    • SSS Certificate of Membership;
    • DTI Accreditation or BOI Registration;
    • Lay-out Plan with Picture of establishment, equipment, instruments, gadgets;
    • Proof of Ownership of Site or Lease Contract;
    • Bio-data of Principal Officers;
    • Board Resolution authorizing the application and designating the duly authorized representative officer/signatory;
    • BIR Registration certificate.
  • A filing fee of Php 1,000 plus Php 10.00 LRF must be paid to the Accreditation Committee.
  • The Accreditation Committee issues a POS for payment at the LTO collecting unit to obtain the required OR.
  • The filing fee is not refundable.
  • An accreditation fee of Php 5,000.00 is collected upon approval of the certificate of accreditation by the LTO Assistant Secretary.

Inspection site, equipment, and personnel

  • The inspection shop must have a minimum area of 1,500 sq. meters for 2 lanes—one for light motor vehicles and one for heavy motor vehicles.
  • If the installed equipment is universal type, one lane suffices.
  • Accredited stations must have the minimum testing/inspection equipment, including:
    • A Gas Emission Tester duly tested/calibrated by DENR, used for:
      • EMISSION TEST:
        • Gasoline tests using:
          • Chassis Dynamometer
          • 5 gas analyzer (HC, CO, CO2, O2, Nox) NDIR Type
          • Ability to check 2-cycle (MC), 4-cycle, and special type engines
          • Compliance with RA 8749 and its implementing rules and regulations
        • Diesel tests using:
          • Opacity meter using a Lug down test with the same chassis dynamometer used for gasoline vehicles
          • Compliance with RA 8749 and its implementing rules and regulations
      • SAFETY TEST equipment including:
        • Chassis, Dynamometer
        • Pit with Pneumatic Lifter or its equivalent for underchassis inspection
        • Computerized Brake Tester
        • Front and Rear Axle Load Meter
        • Side slip Tester
        • Lights Luminosity and Detection Tester
        • Suspension and Shock Absorber Tester
  • Inspection personnel must be duly LTO Certified Trained personnel who are technically competent in inspection procedures and methods.

Testing standards and procedures

  • Accredited stations must implement standards and methods for used-imported motor vehicle inspection, based on or adopted from LTO Administrative Order AO-91-005, Sections 6–20.
  • Identity and construction standards require:
    • No tampering of the chassis number of the motor/engine and no signs of tampering;
    • The motor/engine and chassis number must match the chassis number appearing in the application for inspection/testing.
  • Dimension standards prohibit a motor vehicle operating as a single unit from exceeding:
    • Overall length:
      • Freight vehicle with two axles: 10 (10) meters
      • Passenger vehicles with two axles: 11 (11) meters
      • Vehicles with 3 or more axles: 14 (14) meters
    • Overall width:
      • 2.5 meters
      • 4 (4) meters
  • Frame and body standards require:
    • The frame and body must be secured to withstand operation and must not have damage due to corrosion, wear and tear;
    • The body must be firmly fixed to the frame so it does not loosen by vibration, impact, etc.;
    • The body must be free from sharp edges or rotating protrusions that may endanger people and other vehicles.
  • Riding accommodation standards for passenger compartments require:
    • Safe boarding and protection against passengers falling off or stumbling due to vibration/impact;
    • Necessary ventilation for driver and passenger compartments;
    • Seats that are fully upholstered for passenger comfort;
    • Driver’s seat construction allowing full view necessary for driving and control without obstruction by passengers or cargo;
    • Passenger compartment equipped with bright white colored light;
    • Floorboard condition preventing passengers from falling and keeping dust, water, and dirt from entering the passenger compartment;
    • Doors that easily open/close and door glass that can be easily rolled open/close;
    • Seatbelts in accordance with RA 8750 (Seat Belts Act of 1999) or its equivalent.
  • Goods-loading accommodation must be secured and constructed for safe and reliable loading.
  • Visual confirmation test requires ocular inspection to determine physical condition of light reflectors, rear-view mirrors, windshield wipers, and tires, and actual testing of proper wiper operation.
  • Clearance light rules require:
    • No clearance lamps except for vehicles allowed by the stated exceptions;
    • Clearance light color must be white, light yellow or amber;
    • Clearance lights must be mounted symmetrically on left and right.
  • Number plate light rules require:
    • A number plate light at the rear to illuminate the number plate with white light;
    • Wiring that prevents alteration at the driver’s seat and ensures activation when headlights or clearance lights are turned on.
  • Tail light rules require:
    • Red tail lights on both sides visible at least one hundred (100) meters from the rear, except that two- or three-wheeled vehicles require only one tail light.
  • Parking light rules require:
    • Parking lights at both the front and rear on each side for all motor vehicles except stated two- or three-wheeled/trailer conditions;
    • For a tractor and trailer coupled unit, parking lights must follow the same front/rear rule;
    • Front and rear parking lights must be clearly visible at night at a distance of one hundred (100) meters;
    • Parking lights must be wired to turn on only when the vehicle is not in operation;
    • Front parking light color must be yellow or amber and rear parking lamps must be red.
  • Rear reflex reflector rules require:
    • Rear reflex reflectors on each side at the rear visible at night at least one hundred (100) meter away.
  • Stop/brake light rules require:
    • Stop lights on each side at the rear except that two- or three-wheeled vehicles require only one;
    • Inspection by turning the light on/off at the driver’s compartment;
    • Stop lamps must be wired to turn on only when the service brake system is applied;
    • Stop lamps must be red.
  • Back-up light rules require:
    • Back-up lights except for two-wheeled vehicles with or without sidecar and vehicles with width of 0.8m or less;
    • Wiring to turn on only when transmission is in reverse;
    • Light color white or yellow.
  • Signal light rules require:
    • Direction indicators on right and left sides and at the front and rear;
    • Front signal light color must be yellow, amber or red;
    • Flash at a constant rate of not less than 60 or not more than 120 cycles per minute.
  • Horn rule requires:
    • Motor vehicles must be equipped with a horn that is not a siren or bell.
  • Rear-view mirror rule requires:
    • Rear-view mirrors for all motor vehicles, trailers, and semi-trailers enabling the driver to observe traffic condition at the left side up to 30 meters backward;
    • The right rear-view mirror is optional;
    • Mirrors must be mounted for easy adjustment.
  • Windshield wiper rules require:
    • Automatic windshield wipers for all motor vehicles except two- and three-wheeled vehicles;
    • If two wipers are provided, they must operate together.
  • Tire rules require:
    • No cracks, bare cord, or damage;
    • Skid-proof road-contact point;
    • Wheel bolt and nut must be complete and well tightened.
  • Side slip test requires measuring sideslip on an Alignment Tester platform, with a standard of 3mm or less when running one meter.
  • Steering system inspection requires:
    • Steering wheel parts secured for safe and efficient operation;
    • Steering wheel made for easy handling and secured maximum maneuverability;
    • Steering wheel/parts must not contact chassis frame, fender, or other vehicle parts when steered;
    • Turning angle ratio left/right must not differ considerably from tire steering angle;
    • Steering wheel clearance not more than forty-five degrees when turned left/right.
  • Brake test standards require:
    • Braking force sum (right + left) not less than 50% of axle weight;
    • Difference between right and left braking forces not exceeding 10% of axle weight;
    • Brake system secured to withstand operation and not be damaged by vibration/contact/impact;
    • Brake system functioning without interfering with steering performance;
    • Brake service system working on at least half the number of wheels, always including all rear wheels;
    • Service brake system stopping performance under stated maximum speed and application force ranges, with the following stopping distances:
      • 80 or more km/hr → initial speed 50 → stopping distance 22 or less;
      • 35 or more but less than 80 → initial speed 35 → stopping distance 14 or less;
      • 20 or more but less than 35 → initial speed 20 → stopping distance 5 or less;
      • less than 20 → initial speed maximum speed → stopping distance 5 or less;
    • Brake piping failure resilience requirements with exceptions for certain types (including stated two-wheeled and three-wheeled conditions);
    • Brake fluid must not corrode piping or form bubbles due to heat sources;
    • Mechanical holding requirement on a dry paved road with gradient 1/5 while driver is away from seat, under stated application forces (foot-operated 90 kgs or less; hand-operated 50 kgs or less);
    • Tractor and trailer coupling requirements for compliance, and trailer braking system requirements including:
      • System withstand operation without damage;
      • Trailer service brake system operates in connection with tractor serviced brake system;
      • One braking line holds an unloaded stationary trailer on dry paved road with gradient 1/5 under application forces of foot-operated 90 kgs or less or hand-operated 50 kgs or less.
  • Speedometer requirements require:
    • Accuracy standard measured when wheels rotate such that speedometer indicates 40 km/hr, with a standard between 32 and 48 kilometer per hour;
    • Speedometer positioned for easy driver observation;
    • Speedometer glare-proof, with lighting device or luminous-painted dial plate with pointer, enabling driver confirmation while vehicle runs.
  • Exhaust emission test must comply with standards as provided in RA 8749.
  • Headlight test requires:
    • Measurement of headlamp brightness and deviation of optic axis from main beam using headlight testers, with proper operation tested by turning headlights on/off;
    • Headlamp placement rules, with only one headlamp sufficient for stated two-wheeled conditions and vehicles with width of .8 meter or less;
    • Luminous density and optic-axis deviation standards, including:
      • 4-lamp type: 10,000 cd or more
      • 2-lamp type: 10,000 cd or more
      • Right headlamp deviation at 10 m: up 0; down 20 cm; left 20 cm; right 20 cm or less
      • Left headlamp deviation at 10 m: up 0; down 20 cm; left 10 cm; right 20 cm or less
    • Headlamp color white or light yellow;
    • Intensity enabling driver to discern obstacles at 100 meters at night;
    • Beam directed to vehicle course;
    • Headlamp mounting height 1.2 meters or less above the front and symmetrical mounting rules;
    • Headlamps must be dimmable and allow aim downward adjustment;
    • Aim must not be readily disturbed by vibration/impact;
    • Auxiliary headlights must satisfy wiring limits and beam direction/color constraints.
  • Buffer system requires:
    • All motor vehicles must have buffer system (springs or adequate padding) with sufficient capacity against ground impact for safe operation;
    • Exemption applies for large size special motor vehicles and motor vehicles with gross vehicle weight less than 2,000 kilograms or maximum speed less than 20 kilometer per hour, except those carrying dangerous articles.
  • Fuel system requires strict construction and placement rules, including:
    • Fuel tank and piping must be secured to prevent leaking and prevent damage by vibration/impact;
    • For passenger-carrying vehicles, fuel tank and piping must make substantial leakage unlikely in collision impacts;
    • Fuel tank must use regular steel, and plastic containers cannot be used as fuel tanks;
    • Filler and gas vent must prevent leakage when jolted;
    • Filler and gas vent location relative to exhaust pipe discharge opening, requiring at least 300 millimeters distance;
    • Filler and gas vent must not open into passenger compartments with seats or standing space (except the driver’s compartment separated by partition);
    • Filler must be outside the passenger compartment;
    • Filler and gas vent must be at least 200 millimeters or more away from any exposed electric terminal or switch.
  • Electrical system requires:
    • Electrical wiring inside compartments or LPG gas container compartments with partition wall (e.g., boot) must be covered with an insulator and fixed to the body;
    • Electric terminal switch and electric system likely to spark inside the vehicle must be suitably covered;
    • Storage battery must be fixed against movement/damage by vibration/impact;
    • If battery is in the vehicle compartment, it must be covered with a wooden case or other insulating materials.
  • Dynamometer testing methodology includes I/M program aims to ensure emissions control systems function over the vehicle lifetime ensuring compliance for 80,000 kms or five (5) years, using treadmill/dynamometer tests and measured emission systems performance under load, including evaluation of emissions and emission-related devices.
  • Pit inspection requires a 2.3 meter deep pit for underbody inspection by ocular inspection of specified parts including brake hose/pipes, steering system, radiator, propeller shaft, shock absorber, exhaust pipe, catalyst/heat shielding plates, and leakages from engine/transmission.
  • Additional inspection may include inclination angle measuring inspection and sound level inspection.
  • Inspection/testing fee:
    • Accredited shops must charge an inspection/testing fee as authorized by the LTO Assistant Secretary.

Reporting, MVIC issuance, and signboard rules

  • Accredited shops must submit a monthly statistical report in diskette form every 7th day of the following month or through computer on-line, to the LTO Assistant Secretary via the Accreditation Committee, using the attached format.
  • The MVIC is an LTO accountable form and is issued to used-imported motor vehicles that passed the required inspection under these guidelines.
  • Signboard display requirement:
    • Every accredited shop must install and display a signboard within thirty (30) days before receipt of its Certificate of Accreditation in a conspicuous place inside or outside its premises, whichever is practicable.
    • The signboard must be at least 0.60 meters high and 1.50 meters long.
    • The signboard must contain legible letters with a minimum size of 5 inches by 1 inch showing the name of the shop, Accreditation Number, and the statement "LTO Accredited Motor Vehicle Inspection Station."

Penalties for accreditation guideline violations

  • Accredited inspection/testing shops that violate the guidelines and procedures are penalized after due notice and hearing with:
    • Php10,000.00 for the first offense;
    • Php30,000.00 for the second offense;
    • Php50,000.00 fine and cancellation of permit for the third offense.
  • The Circular also authorizes outright cancellation depending on the gravity of the offense or violation.
  • Violations include:
    • Non-compliance with inspection standards or methods embodied in AO-91-005;
    • Failure to comply with laws, rules, and regulations enforced under the Memorandum Circular;
    • Misrepresented/faked/tampered supporting documents for accreditation.

Effectivity and compliance instruction

  • The Circular takes effect within 30 days after its publication.
  • The Circular is issued for information and strict compliance.

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