Saturday, February 15, 2014

LTO Streamlines Motor Vehicle Importation Process In Line With Anti-Corruption Reform Program

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In order to ensure efficient and effective importation of motor vehicles, the Land Transportation Office (LTO) has revised all Rules and Regulations on the Accreditation and Stock Reporting of Manufacturers, Assemblers, Importers, Rebuilders, Dealers and Other Entities (MAIRDOEs) authorized to import motor vehicles and/or its components.

This is under Administrative Order No. AVT-2014-23, which was published last January 24 and took effect on 9 February 2014.

“This is part of our reform program at the LTO to improve our services, streamline processes, and curb corrupt or illicit practices. This will benefit stakeholders in the automotive industry, which we hope will translate into faster and better services to the general public,” said LTO Assistant Secretary Alfonso Tan, Jr.

Aside from providing a more detailed and organized structure of the process, the new AO eliminates unnecessary steps which could be sources of delays, particularly in stock reporting, which will be done by the applicants themselves.

The current reporting system requires accredited manufacturers, assemblers, importers and rebuilders of both brand new and second hand motor vehicles to submit an accurate monthly stocks/sales report to the LTO Registration Section, after which LTO personnel will check, encode and approve the reports.

The required documents include a soft and hard copy of the stock report, a stencil of engine and chassis, a Certificate of Payment from the Bureau of Customs and a Certificate of Conformity from the Department of Environmental and Natural Resources for brand new vehicles.

Meanwhile, second hand vehicles and parts are required to submit a stock report, a stencil for engine and chassis and a BOC Certificate of Payment.

With the new system aimed to be implemented beginning on 24 February 2014, authorized representatives of accredited manufacturers will be the ones to encode reports and scan stencil images directly to the LTO-CSR Processing Room which will be uploaded into the system.

If the stocks validation is correct, a transaction summary will be generated together with the Transaction ID and Payment Order Slip which will be printed by the representative.

The representative can easily proceed to the LTO Collection Unit for payment and the Certificate of Stock Reported will be printed at the CSR Processing Room—expediting the process to one to three days—depending on the volume of transactions.

For invalid reports, the transaction will be voided and the representative will be advised to coordinate with the BOC to rectify the discrepancy.

The LTO says this will eliminate red tape in the agency because the approval of stock reports is not relied on the LTO employee but solely on the authorized representative of the manufacturers, assemblers, importers and rebuilders.

The Chamber of Automotive Manufacturers of the Philippines Inc. welcomes the new accreditation and reporting system.

“The do-it-yourself system will be beneficial to the industry in terms of faster processing time, especially in the light of the continued strong demand for vehicle products.” said CAMPI President Attorney Rommel Gutierrez.

The Philippine Automotive Association says the new AO has been debated upon in the past LTO leaderships and is long overdue.

“The new project will further reduce the registration period. We may have some problems during its early implementation but if properly implemented and all will cooperate, we don’t see any reason why this program will not succeed.” said Benjie Guererro of PAA.

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