Law Summary
Scope
- Applies to buyers in good faith of:
- All imported Complete Built Units (CBUs).
- CBUs assembled from imported replacement parts identified by engine and/or chassis/Vehicle Identification Number (VIN).
- All imported motorcycles.
Exclusions
- Does not apply to:
- Motor vehicles imported under the government's Motor Vehicle Development Program (MVDP).
- Motor vehicles imported by diplomatic entities such as embassies and consulates.
- Trucks and buses with Certificates of Payments (CPs) indicating full payment of duties and taxes by Department of Trade and Industry (DTI) accredited rebuilders.
Definitions
- Buyer in Good Faith:
- A person who is not the importer nor acted as an agent for the importer.
- Has verified the genuineness of the BOC Certificate of Payment and the LTO Certificate of Registration at purchase.
- Has no personal knowledge of unpaid taxes or deficiencies in importation.
General Procedure
- Step 1: Submission to the Office of the Assistant Secretary through the Executive Director, including:
- Letter-request and Affidavit of Undertaking by the applicant.
- Certificate of Registration (CR) and Latest Official Receipt for registration fees.
- Physical inspection of the motor vehicle and an approved Motor Vehicle Inspection Report (MVIR).
- Taxpayer Identification Number (TIN) and engine and chassis number stencils.
- Output: Endorsement to BOC/PASG for processing.
- Step 2: Bureau of Customs/Presidential Anti-Smuggling Group (BOC/PASG) actions:
- Issuance of Official Receipt for paid taxes and duties.
- Issuance of original Certificate of Payment (CP), forwarded to LTO via official courier.
- BOC/PASG Clearance.
- Step 3: LTO Registration Section:
- Confirmation of Official Receipt and Certification of Stock Reported (CSR).
- Step 4: LTO District Office:
- Confirmation of CP.
- Issuance of Official Receipt for duties.
- CSR, Police Clearance (PNP TMG Clearance), Certificate of Compliance to Emission Standard (for used vehicles), Smoke Emission Test, and Insurance Certificate of Cover.
- Inspection for out-of-NCR owners to be done at the nearest district office.
Venue of Registration
- Initial/original registration restricted to four LTO district offices:
- Diliman, Quezon City, Pasay City, and Caloocan City.
- Renewal registration requires notification to the originating district office with copies of amended CP and BOC/PASG clearance.
- Transfer of ownership handled only at these four district offices with confirmation and document sharing protocols.
Reporting System
- All registering district offices must submit reports to the LTO Registration Section at the Central Office twice a month.
Penalties
- Personnel violating provisions of the Memorandum Circular shall be subject to appropriate disciplinary action.
Repealing Clause
- Prior orders, memoranda, circulars, and regulations inconsistent with this Memorandum Circular are revoked or modified accordingly.
Effectivity
- The Memorandum Circular takes effect fifteen (15) days after publication on October 5, 2007.
Signed by Assistant Secretary Reynaldo I. Berroya.