Title
Supreme Court
Registration Guidelines for CEZA Tax-Exempt Vehicles
Law
Lto Memorandum Circular No. Rtl-mc-03457
Decision Date
Jun 6, 2003
Guidelines for the registration of tax-exempt vehicles in the Cagayan Economic Zone Authority (CEZA) mandate that accredited investors submit specific documentation and comply with inspection requirements, while emphasizing restrictions on vehicle use outside the designated area.

Law Summary

Required Documentation for Initial Registration

  • Original Certificate of Registration from country of origin for used vehicles, or commercial invoice for new vehicles.
  • Bill of Lading.
  • Clearance from the Philippine National Police-Technical Management Group (PNP-TMG) pursuant to RA 6539.
  • Compulsory Third Party (TPL) Insurance Certificate of Cover in accordance with PD 612 as amended.
  • Primary document from LTO Registration Section.
  • Motor Vehicle Inspection Report.
  • CEZA Import Permit.
  • Bureau of Customs (BOC) Certificate of Payment or Certificate of Clearance.
  • BOC Informal Entry.
  • BOC Official Receipt for payment of fees.
  • Renewal is subject to prior approval based on CEZA's list of accredited persons/entities maintaining eligibility.

Mandatory Inspection

  • Physical and mechanical inspection of tax exempt vehicles is required to ensure compliance with safety standards and verification of vehicle identification.

Issuance of Primary Document

  • Primary document issued by LTO Registration Section, East Avenue, Quezon City, replacing the Certificate of Confirmation.
  • Issuance contingent upon submission of CEZA Import Permit, BOC certificates and receipts, and Informal Entry.

Registration and Operational Limitations

  • Vehicles under this category do not receive a Certificate of Registration; the official receipt of payment (Motor Vehicle Registration Receipt - MVRR) serves as proof of registration.
  • MVRR records are stamped indicating tax-exempt status under R.A. 7922 but subject to taxes upon transfer.
  • Vehicles must be visibly marked on both front doors denoting tax exempt status and exclusive ownership.
  • Operation outside CEZA requires obtaining a written travel permit from CEZA/LTO detailing period, destinations, drivers, passengers, and cargo.
  • Unauthorized operation outside CEZA results in apprehension and impoundment.
  • Release conditions include full payment of customs duties and taxes or approval by authorized CEZA officials.

Fees

  • Regular registration fees and charges applicable as prescribed under LTO regulations for vehicles under this Circular.

Reporting Requirements

  • Monthly submission of reports on tax exempt vehicle registrations to LTO Central Office.
  • Reports accompanied by machine copies of all supporting documentation and issued MVRRs.

Supersession Clause

  • Conflicting previous orders, circulars, and memoranda are superseded or amended as to vehicles covered by this Circular.

Effectivity

  • The Circular takes effect immediately upon issuance on June 6, 2003, endorsed by Assistant Secretary Roberto T. Lastimoso.

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