BOC tightens rules on vehicle imports

By Iris C. Gonzales, The Philippine Star

Posted at Jul 07 2011 07:20 AM | Updated as of Jul 07 2011 03:20 PM

MANILA, Philippines - The Bureau of Customs (BOC) has tightened the rules on the entry of imported motor vehicles in the country as part of efforts to curb smuggling.

Customs Commissioner Angelito Alvarez said a new office has been created which would approve the release of imported motor vehicles.

As such, no imported vehicles would be released from customs zones unless covered by a “Clearance of No Derogatory Information (CONDI) issued by the newly-created Motor Vehicle Monitoring and Clearance Office (MVMCO),” Alvarez said in a statement yesterday.

The MVMCO will be under the office of the Enforcement and Security Service.

Alvarez said the new requirement will apply to all imported motor vehicles including motorcycles and motor scooters that are either personally-owned or brought in for personal use under the No-Dollar Importation Program; imported by tax-exempt persons or entities under various laws and subsequently sold to non-tax exempt persons or entities; and those that are pre-owned, regardless of whether they are declared under consumption or warehousing entries.”

Furthermore, Alvarez said that used imported parts and components declared as replacement parts or intended for use by local assemblers or those engaged in vehicle rebuilding business will also be covered by the new rules.

In the past, the payment by the importer of the final tax assessment by the customs examiner be enough for the agency to release the vehicles.

The new regulations now require that all motor vehicle import entries shall be endorsed to the MVMCO.

According to Alvarez, the creation of the MVMCO and the imposition of the new requirement was meant to ensure that only legally-imported vehicles or those coming from legitimate sources could enter the country.

“Aside from protecting the revenue interest of the government, the creation of the MVMCO will also pave the way for the removal of the Philippines from the list of countries being used as dumping grounds for motor vehicles stolen by international crime syndicates,” Alvarez said.

The BOC, the government’s second largest revenue agency, is tasked to collect P320 billion this year.