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Only qualified individuals may bring in a used motor vehicle which shall be duly covered by a prior authority to import. Under appendix 1-D of BSP Circular-Letter, Series of 1995, dated October 19, 1995, the importation of used vehicles continue to be regulated and would therefore require prior authority from the Bureau of Import Services (BIS), Department of Trade and Industry (DTI).
WHO IS QUALIFIED TO IMPORT USED MOTOR VEHICLES?
Pursuant to Sec.3 of E.O.156 and Sec.1,Part II of the Implementing Guidelines thereof, the following individuals are allowed to import used motor vehicle under the No-Dollar Import Program:
- Returning Resident- a Filipino citizen who has stayed in a foreign country for at least one (1) year and which residency shall be accumulated within the three (3) year period immediately preceding the date of filing of the application.
- Immigrant-a person issued any of the following types of visa under the Philippine Immigration Act of 1940,as amended:
- A Filipino citizen and a holder of 13G Visa under Sec.13, Sub g(13g);
- A foreign national married to a Filipino and a holder of 13A Visa under Sec.13,Sub a (13a); or
- A Filipino citizen and holder of 47A and 47A2 issued to awardees of Special Government Project/s (SPG).e.g. Philippine Retirement Authority and Balik-Scientist Program.
- The vehicle has a gross vehicle weight (GVW) not exceeding three (3) tons;
- It is covered by an authority to import (Certificate of Authority to Import) issued under the No-Dollar Importation Program by the Bureau of Import Services (BIS) ;
- It is personally owned and registered under the name of a returning resident or immigrant at least six (6) months prior to the date of application for permit to import with the BIS ;
- It is for personal use;
- It cannot be resold for at least three (3) years.
IS PERSONAL PRESENCE OF THE CAR-OWNER NECESSARY?
Personal presence by the car-owner of the used motor vehicle is required.
IS THERE ANY OTHER RESTRICTION ON THE MOTOR VEHICLE THAT MAY BE BROUGHT IN?
Yes. Whether brand-new or not, the motor vehicle should be left-hand drive.
IS THE IMPORTED VEHICLE SUBJECT TO TAXES AND DUTIES?
Yes. Whether brand-new or used, purchased or donated, the imported vehicle is subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement. Its book value serves as the tax base and not the purchase price nor the acquisition cost. The book value is sourced from universally accepted motor vehicle reference books such as the Red Book, Blue Book, World Book depending on the origin of the imported vehicle.
ARE SPARE PARTS SENT WITH THE MOTOR VEHICLE ALSO TAXABLE?
Yes. These are taxed separately.
HOW CAN WE INQUIRE THE TAXES AND DUTIES PAYABLE?
By writing and providing information about the vehicle as to the make, brand, year model, piston displacement, Vehicle Identification Number (VIN) or chassis number or sending a copy of the registration to:
Valuation Center & Library
Bureau of Customs
South Harbor, Manila
One Stop Processing Center
North Harbor, Manila
ARE THERE OTHER CHARGES ASIDE FROM TAXES AND DUTIES?
Yes. There are other non-customs charges that may be due on the shipment such as: storage and arrastre fees which may be collected by the privately-owned arrastre operator; by the shipping line and wharfage dues by the Philippine Ports Authority (PPA).
HOW IMPORTANT IS THE PRIOR IMPORT AUTHORITY (PIA)?
It is very important if the vehicle would not qualify as brand-new as herein defined. A used motor vehicle not covered by PIA shall be seized and may only be released upon payment of heavy penalties on top of the taxes and duties due thereon.
HOW IS PIA OBTAINED?
By submitting to BIS a duly accomplished application form which may be obtained from it and the following documents duly authenticated by the nearest Philippine Consulate abroad where the car-owner resides:
- Proof of his continuous stay abroad for at least one (1) year;
- Copy of the registration papers showing that the vehicle is registered in his name for at least six (6) months;
- Proof that the car was acquired out of the earnings abroad.
WHERE IS THE BIS LOCATED?
The address is as follows:
Bureau of Import Services
3rd Flr., Welding Industries of the Philippines Building
349 Sen. Gil Puyat Avenue Makati City, Metro Manila
Tel. No. (632)895-7466
IS DEPRECIATION IN VALUE ACCORDED TO IMPORTED VEHICLES?
Yes, if the imported motor vehicle is an older model or an earlier than the current year model. The depreciation schedule is 10% per year counted downwards from current year which has a depreciation rate of zero percent (0%). Motor vehicles with a piston displacement of 2000 cc and above may be given a maximum depreciation of 50%, while those below 2000 cc, up to the maximum of 70%.
IS THE IMPORTATION OF MOTOR VEHICLE SUBJECT TO PRE-SHIPMENT INSPECTION (PSI) BY SGS IN THE COUNTRY OF EXPORTATION?
Under Joint-Order 1-91, individually owned motor vehicle is not subject to pre-shipment inspection by SGS. The importation thereof need not be covered by a Clean Report of Findings (CRF) issued by SGS. Non-individually-owned vehicles or those imported for commercial purposes should therefore undergo PSI and their importation should be covered by CRF.