EXECUTIVE ORDER NO. 142
EXECUTIVE ORDER NO. 142 - 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 REGISTRATION OR RENEWAL OF REGISTRATION WITH THE LAND
TRANSPORTATION OFFICE
WHEREAS,
imported motor vehicles, unless entered duty-and-tax-free pursuant to
existing laws, are subject to excise tax and value-added tax under the
National Internal Revenue Code, as amended, and duties and other fees
under the Tariff and Customs Code of the Philippines, as
amended;
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.
Sec. 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.
Sec. 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.
Sec. 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.
Sec. 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 Sec. 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.
DONE in the City of Manila,
this 2nd day of November, in the year of our Lord, Two Thousand and Two.
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Since 19.07.98.