SECTION 1. Purpose - Pursuant to Section 4 (d) [1], Article III, Chapter I of Republic Act No. 4136, as amended, Section 5 of Batas Pambansa Bilang 74, and further to Administrative Order No. 010-2005 dated 03 January 2005, the following Implementing Rules and Regulations are hereby promulgated for the guidance and compliance of all concerned.

SECTION 2. Definition of Terms -

1. Brand New Motor Vehicles - as defined in this Order, refer to the new and unregistered motor vehicles manufactured, assembled, imported, distributed and/or sold regardless of classification by corporations or companies that are members of CAMPI, TMA, MDPPA, and other LTO accredited entities.

2. Classification - refers to the four (4) classifications of motor vehicles such as private, for hire, government and diplomatic.

3. CAMPI - refers to the Chamber of Automotive Manufacturers of the Philippines, Inc.

4. TMA - refers to the Truck Manufacturers Association

5. MDPPA - refers to the Motorcycle Development Program Participants Association

6. Motorcycles - as defined in this Order, refer to the motorcycles with engine displacement of above 200 cc

SECTION 3. Coverage of Implementation - The brand new motor vehicles covered by this Order are the following:

1. Brand new motor vehicles manufactured, assembled, imported, distributed and sold by CAMPI, TMA, MDPPA, and other LTO accredited entities;

2. Brand new motor vehicles regardless of classification; and

3. Motorcycles with engine displacement of above 200 cc.

Motorcycles with engine displacement of 200 cc and below are excluded in this Order.

SECTION 4. Registration Requirements - The LTO accredited members of CAMPI, TMA, MDPPA or their authorized or franchised dealers and other LTO accredited entities shall submit to the LTO Central Office or Regional Office their Sales Report, Original Sales Invoice and the stencils of the engine and chassis/frame numbers for the sales reporting.

For the registration of the new motor vehicle, the following documents shall be submitted to the LTO District Office, as follows:

1. Authenticated Sales Invoice;
2. Copy of the Certificate of Stock Reported (CSR);
3. PNP-TMG Clearance;
4. Certification of Quality Control by the manufacturers, assemblers and importers; that subject motor vehicles passed the smoke emission and roadworthiness tests;
5. Appropriate Insurance Policy with validity period of three (3) years;
6. Certificate of Conformity (COC) issued by DENR; and
7. Valid MVIR for identification.

SECTION 5. Registration Rates - The rates of Motor Vehicle User's Charge, as set forth and imposed under Republic Act No. 8794 shall be collected from the owner/s of the covered motor vehicle/s for the registration of the said unit/s.

The minimum collection is for three (3) years and the maximum collection is for three and three fourth (3 3/4) years depending on the ending of the MV Plates to be issued. (Refer to the attached Three (3) - Year Registration Scheme Schedule presented as Annex "A"^* ). For the initial registration of motor vehicles excluded in this Order, the minimum is one (1) year and the maximum collection is one and three fourth (1 3/4) years depending on the ending of the plate issued.

The penalty for the late registration is fifty percent (50%) of the basic one (1) year MVUC FEE. The reckoning date of late registration shall be seven (7) working days from the date on the invoice.

SECTION 6. Renewal of Registration - The renewal of registration thereof shall be pursuant to the provisions of Administrative Order No. 86AO-006 on the Revised Staggered Registration of Motor Vehicles (based on the Plate Number issued).

The year validity tags that will be issued by LTO in the initial registration shall be valid for three (3) years.

In case of change classification within the three (3) year period, which will result to a higher collectible fee, an additional MVUC FEE shall be collected. No refund, however, shall be allowed if the change in classification will result to a lower MVUC FEE. No refund shall also be allowed in case the vehicle will be inactive or placed on storage.

SECTION 7. Computer Fee - Pursuant to the LTO IT Project Build-Operate-Own (BOO) Agreement, a computer fee of P132.00 including VAT shall be collected for the mv registration valid for three (3) years.

SECTION 8. Apprehensions - Should the covered motor vehicles be apprehended within the period of its initial three (3) year registration for violation/s attributable to the motor vehicles as smoke-belching or non-roadworthiness, the subject motor vehicle shall still be required to undergo the accessory penalty or penalties of passing the Motor Vehicle Inspection and/or Emission Tests.

SECTION 9. Repealing Clause - All memoranda, circulars and orders in conflict herewith are deemed superseded and/or repealed accordingly.

SECTION 10. Effectivity - The effectivity of this Memorandum Circular shall commenced immediately when Administrative Order 010-2005 shall have become valid and effective.

For your guidance and strict compliance.

Adopted: 14 Feb. 2005

(SGD.) ANNELI R. LONTOC
Assistant Secretary

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.