Monday, December 03, 2007 No irregularities in listing of vehicles, says LTO 7 chief
THE Land Transportation Office (LTO) 7 has said that while the number of cars sold by the Cebu Auto Dealers Association (CADA) may differ from the number of registered new vehicles, it does not mean there are irregularities.
LTO 7 Director Alex Leyson said used sports utility vehicles (SUVs) such as Pajero, Terano, Bighorn and Sportage, among others, are registered as new because they follow the DOR (date of original registration) policy.
Leyson said there are rich people who buy new vehicles abroad to save, especially that prices of brand new cars sold by exclusive dealers are jacked up.
Rebuilt SUVs
Leyson said they registered rebuilt SUVs because these are affordable to middle-class customers and small-and-medium entrepreneurs.
Most of the used vehicles are rebuilt by motor vehicle shops that are accredited by the Department of Trade and Industry (DTI).
Under the LTO policy, no new vehicles will be registered without the required Certificate of Payment (CP) of duties and taxes to the Bureau of Customs (BOC), Leyson said.
Once a CP is attached to the application for registration and all the requirements are complied with, the LTO is obliged to register the vehicle, otherwise they can be charged with dereliction of duty, Leyson said.
“As long as a CP is submitted, we presume that the importation of a vehicle is legal and in order,” he said.
Rebuilt SUVs
Florante Ricarte, assistant chief of assessment of the Bureau of Customs Port of Cebu, said they will collect 30 percent duty, 12 percent value-added tax and ad valorem tax on imported brand new vehicle.
He said the ad valorem tax depends on the value of the vehicle, which is indicated in the invoice issued by the seller.
Ricarte said there is no law that prohibits the importation of new vehicles by any person other than the exclusive distributor.
He said that prior to the importation of used vehicles, the importer must have a clearance from the Bureau of Import Services. (EOB)
