DOTR APPROVES ENHANCED PENALTIES FOR ERRING CAR DEALERS AND IMPORTERS

MANILA — Vehicle dealers and importers will soon face steeper penalties for fraudulent vehicle registration following the amendment of an administrative order by the Land Transportation Office (LTO).

In a statement, LTO Chief Assistant Secretary Vigor Mendoza announced that the amendment, greenlit by Department of Transportation (DOTr) Secretary Jaime Bautista, aims to bolster sanctions against manufacturers, assemblers, importers, rebuilders, dealers, and other entities (MAIRDOEs) authorized to import motor vehicles and components.

These escalated penalties will target individuals or entities engaging in fraud and misrepresentation during application filing and operations, including stock and sales reporting. Additionally, penalties will be imposed for the submission of fraudulent, fake, or falsified stock/sales periodic reports as mandated by law.

For a first offense of either violation, the penalty includes suspension of the Certificate of Accreditation (COA) for up to six months, a fine of PHP500,000, and revocation of the Certificate of Stock Reported (CSR), sales report, and vehicle registrations associated with the violation.

Subsequent offenses will lead to more severe penalties, including COA cancellation, a one-year blacklisting from the finality of the cancellation order, and revocation of CSR, sales reports, and vehicle registrations.

Mendoza emphasized that the LTO reserves the right to pursue criminal charges against individuals or entities committing these serious offenses.

Given the classification of both offenses as “serious,” a 90-day preventive suspension will be imposed starting upon receipt of a show cause order from the LTO.

In the same administrative order approved by Bautista, less severe offenses were identified, such as failure to comply with standard requirements and other laws related to MAIRDOE business operations, and allowing unauthorized entities to use its accreditation.

Penalties for these offenses include PHP100,000 for first offense, PHP500,000 for second offense, and PHP1 million for third offense. A fourth offense will result in COA cancellation and a one-year blacklisting period.

Mendoza stressed that these stricter penalties aim to compel MAIRDOEs to adhere to rules and regulations. He cited fraudulent transactions involving two Bugatti Chiron vehicles as an “eye-opener” prompting the review of existing policies and the adjustment of penalties deemed inadequate.

(el Amig/MNM)