REQUIRING OWNERS OF TAXABLE IMPORTED MOTOR VEHICLES TO SECURE CLEARANCES FROM THE BUREAU OF CUSTOMS AND BUREAU OF INTERNAL REVENUE AS A PRECONDITION FOR THEIR INITIAL REGISTRATI…

WHEREAS, there have been reports that
an undetermined number of taxable imported motor vehicles have not been
registered with the Land Transportation Office, or, have been registered
without the correct taxes, duties and fees collectible thereon being
paid; and

WHEREAS, there is a need for the
Bureau of Customs, Bureau of Internal Revenue, and the Land
Transportation Office to pursue a joint plan of action to collect the
unpaid taxes, duties and fees due on imported motor vehicles, to be
assessed pursuant to the Tariff and Customs Code of the Philippines, as
amended.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1.       This Order shall cover taxable imported motor vehicles, except those imported under the Car Development Program of the Philippines by car manufacturers and assemblers duly registered with the Board of Investments.

SECTION 2.       The
Land Transportation Office shall not allow the initial or renewal of
the registration on any imported motor vehicle covered by this Order,
unless the appropriate clearances have been issued by the Bureau of
Internal Revenue and the Bureau of Customs certifying that the
correct/proper taxes, duties and fees accruing thereon have been
previously paid, or subsequently satisfied in accordance with this
Order.

SECTION 3.       The
Bureau of Customs and the Bureau of Internal Revenue shall adopt a
uniform compromise payment schedule fixing the compromise amounts to be
paid by the registered owner of taxable imported motor vehicles subject
of this Order, in lieu of the taxes, duties and fees collectible thereon
under the aforementioned Codes, which schedule shall be promulgated by
the Secretary of Finance through a Department Order.

SECTION 4.       The
requirement to secure clearances from the Bureau of Customs and the
Bureau of Internal Revenue shall be a one-time requirement, such that
the owner of a taxable imported motor vehicle which has already been
cleared pursuant to this Order shall no longer be required to obtain
clearances for the succeeding renewal of registration.

SECTION 5.       The
Department of Finance and the Department of Transportation and
Communication shall jointly issue the appropriate rules and regulations
to implement the provisions of this Order within thirty (30) days from effectivity
thereof, which shall include a provision for a “cut-off” period for
this implementation to ensure the speedy and efficient collection of the
compromise amount consistent with the following schedule.

a.      Upon effectivity up to the end of 2002 — Upon effectivity
of this Executive Order until the end of CY 2002, the Land
Transportation Office shall accommodate applications for registration of
unregistered imported motor vehicles after clearance from the Bureau of
Customs and Bureau of Internal Revenue shall have been secured pursuant
to Section 2 hereof.  The period provided herein
may be extended as may be determined jointly by the Bureau of Customs,
the Bureau of Internal Revenue, and the Land Transportation, but in no
case to exceed four (4) months.  Renewal of registration of imported motor vehicles shall be done as they fall due under existing regulations.  An
importer/motor vehicle owner of a registered vehicle may voluntarily
avail himself of re-registration of his vehicle under this scheme within
the period stated herein.

b.      January
2003 to December 2003 — The Bureau of Customs and the Bureau of
Internal Revenue shall review the payment of duties, taxes, fees and
assemblers tax for non-members of the Progressive Car Manufacturing
Program, respectively, and the Land Transportation Office shall renew
the registration of the motor vehicle after clearance from the Bureau of
Internal Revenue and the Bureau of Customs.

Adopted: 02 Nov. 2002

BY THE PRESIDENT:

(SGD.) ALBERTO G. ROMULO
Executive Secretary