Industry > Business

LTO pushes to punish fraudulent dealers and importers

With a seal of approval from the Department of Transportation

Hiding in plain sight can only get you so far. PHOTO BY NATHAN JONAH DELGADO

You are probably familiar with the two Bugatti Chirons in Metro Manila, either within car-spotting groups or through Senator Raffy Tulfo’s speech against their illegal entry into the country. Two months ago, the Bureau of Customs caught up with the owners and forcibly confiscated their prized possessions.

This brings back memories of the crushed illegal imports since the last administration, yet the people behind their respective shady businesses were never punished for their deeds. Now, the Land Transportation Office and the Department of Transportation have had enough of this tomfoolery.

DOTr secretary Jaime Bautista recently approved the call from LTO chief assistant secretary Atty. Vigor Mendoza to Manufacturers, Assemblers, Importers, Rebuilders, Dealers, and Other Entities (MAIRDOE) regarding the penalties against fraudulent activities that fall under two categories.

Everyone has to play it right, or else the tiniest of details could jeopardize a business. PHOTO BY SAM SURLA

The lesser penalties are for entities that fail “to comply with the standard requirements and other laws and their implementing rules and regulations relating to the MAIRDOE business operations” and allow “the use of its accreditation by non-accredited persons or entities.”

  • First offense – P100,000
  • Second offense – P500,000
  • Third offense – P1,000,000
  • Fourth offense – cancellation of Certificate of Accreditation and blacklisted for one year from the finality of the last order
Rules are written in crushed metal. PHOTO FROM BUREAU OF CUSTOMS

The higher penalties are for the devious entities that misrepresent “the filing of the application and its operations, including stock and sales reporting” and submit “fraudulent, fake or falsified stock/sales periodic reports as required by law, rules, and regulations.”

  • First offense – P500,000; suspension from Certificate of Accreditation of not more than six months; cancellation of the Certificate of Stock Reported (CSR), sales report, and registration of the vehicles
  • Second offense – cancellation of Certificate of Accreditation and blacklisted for one year from the finality of the last order
The more we play by the law, the more cars are saved from the bulldozer. PHOTO FROM BUREAU OF CUSTOMS

“The LTO reserves the right to institute criminal actions against the concerned person or entities who committed the above serious offenses,” Mendoza expressed. “During the period of suspension, the user log-in of the MAIRDOE shall be deactivated.”

This amendment would hopefully provide a safer marketplace—especially in the gray market—to deter any lack of transparency toward the public as seen in our country’s history with corruption. It’s not hard to correctly fill out the right documents and pay the right duties up front unless you have something to hide.

Justin Young

Justin loves cars of all forms. Molded by motoring TV shows and Internet car culture, he sees the world from a different perspective that not many get to see every day.