Title
LTO Accreditation and Stock Reporting Rules
Law
Lto Administrative Order No. Avt-2014-023
Decision Date
Jan 23, 2014
LTO Administrative Order No. AVT-2014-023 establishes revised rules for the accreditation and stock reporting of manufacturers, assemblers, importers, rebuilders, dealers, and other entities authorized to import motor vehicles and components, ensuring compliance with relevant laws and efficient implementation of the accreditation process.

Definitions

  • Applicant: Person or entity seeking MAIRDOE accreditation.
  • Application Fee & Accreditation Fee: Fees paid during application and upon approval.
  • Authorized Representative: Official contact person for MAIRDOE transactions with LTO.
  • Certificate of Accreditation: Authority granted to transact with LTO regarding stock, sales, and registration.
  • Validity of Accreditation: From approval date to expiration.
  • Operations Division (Central and Regional): LTO offices responsible for processing and monitoring applications and compliance.
  • Component: Engine/motor, chassis, and/or body of a motor vehicle.
  • Defined categories: Manufacturer, Assembler (MVDP member), Importer, Rebuilder (DTI accredited), Dealer, Other Entities (personal use).
  • e-CP: Electronic transmission of Certificate of Payment by BOC.
  • Reporting System: System processing stock reports.
  • Certificate of Stock Reported (CSR): Certificate for each unit reported.

Accreditation Requirements and Process

  • Applicants must comply with documentary and qualification criteria.
  • Applications are submitted to LTO with forms and attachments.
  • Initial review done by Regional Operations Division; final evaluation by Central Operations Division.
  • Certificate of Accreditation issued upon fulfillment.
  • Accreditation valid for one year.
  • Renewal must be filed at least one month before expiration.

Duties and Responsibilities

  • LTO Central Office:
    • Formulates policies and guidelines.
    • Evaluates and issues accreditation.
    • Maintains registry and monitors MAIRDOEs.
  • LTO Regional Office:
    • Reviews and inspects applications.
    • Recommends approval/disapproval.
    • Monitors compliance within regions.

Documentary Requirements

  • For new applications:
    • Application form under oath.
    • Business registration certificates.
    • Mayor's Permit specific to business classification.
    • BIR and SSS certificates.
    • Financial statements certified by CPA.
    • Establishment pictures and location map.
    • Lease contract if applicable.
    • Undertaking to comply with Philippine laws.
    • Additional certificates for Assemblers and Rebuilders.
  • For renewals:
    • Accredited certificate, updated permits, affidavit of compliance.
  • For other authorized entities:
    • Import-related documents including commercial invoice, BOC payment certificate, import declarations.

Fees and Charges

  • Application Fee: Php 500 (non-refundable).
  • Accreditation Fee (new): Php 3,000 plus Legal Research Fund (LRF) Php 10.
  • Renewal: Php 1,000 plus LRF.
  • Other charges for expired accreditation, address changes, certified copies, etc.
  • Payments made at LTO Collection Units.

Application Processing and Inspection

  • New applications filed with Central Office; renewals with Regional Office.
  • Documents checked against checklist; only complete applications processed.
  • Processing timeline includes evaluation, inspection, validation, and approval within specified days.
  • Inspection aims to confirm applicant's capability and requirements compliance.
  • Final approval/disapproval by Assistant Secretary; decision is final.
  • Disapproval notifications must state grounds.

Certificate of Accreditation Details

  • Contains establishment name and address, classification, accreditation number, and validity period.
  • Lost certificates can be replaced upon fee payment.
  • Any change of location or classification must be notified to LTO at least 5 days prior.
  • Transfers of location allowed without area limitation.

Monitoring and Visitorial Powers

  • LTO has authority for inspections to ensure compliance during office hours upon official instructions.

Penalties

  • First offense: Fine of Php 100,000.
  • Second offense: Fine of Php 500,000 and suspension up to 6 months.
  • Third offense: Cancellation of accreditation and blacklisting.
  • Grounds for penalties include fraud, misrepresentation, failure to comply with requirements, submission of falsified reports, and unauthorized use of accreditation.
  • LTO may initiate criminal action for fraud and falsification.

Closure of MAIRDOEs

  • Accredited entities must notify LTO in writing and under oath about closure.
  • LTO issues a cease operation notice.
  • Resumption requires compliance with new application requirements.

Stock Reporting

  • Manufacturers, Assemblers, Importers of new vehicles submit stock reports and supporting documents to LTO Central Office.
  • Upload of stocks in LTO system after validation.
  • Validation discrepancies require rectification with Bureau of Customs.
  • After payment, Certificate of Stock Reported (CSR) is printed.
  • Monthly inventory reports must be submitted by applicants and generated by LTO.
  • Rebuilders and importers of secondhand vehicles also comply with reporting, submitting stock reports, stencils, and BOC payments.
  • Registration Section monitors, evaluates, approves or rejects reports, and prints CSR.
  • Post audit conducted and results submitted to Internal Audit Division.

Administrative Sanctions and Employee Accountability

  • Violations by LTO officials/employees subject to disciplinary actions per Civil Service Rules.

Repealing Clause

  • Prior inconsistent issuances are repealed or amended accordingly.

Effectivity

  • Order takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.

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