LTO to impose higher penalties vs erring car distributors, importers, dealers

MANILA: The Land Transportation Office (LTO) shall impose stiffer consequences against erring manufacturers, assemblers, importers, rebuilders, dealers and others who are authorized to import motor vehicles and its components.

In a statement, the agency shared that Department of Transportation (DOTr) Secretary Jaime Bautista approved the recommendation that amends an existing LTO Administrative Order — imposing higher penalties against violators.

Serious offenses' penalties

Based on the amendment approved by the transportation secretary, higher penalties will now be imposed on the commission of fraud and misrepresentation in the filing of the application and its operations, including stock and sales reporting; and, submission of fraudulent, fake or falsified stock/sales periodic reports as required by law, rules and regulations.

When committed for the first time, the penalty for the abovementioned offenses are a P500,000-fine; suspension of the certificate of accreditation of up to six months; as well as cancellation of the certificate of stock reported, sales report and registration of the vehicles.

Those who will violate for the second time will face cancellation of certificate of accreditation and blacklisting for a period of one year from finality of order of cancellation, and cancellation of CSR, sales report and registration of the vehicles.

LTO Chief Assistant Secretary Atty. Vigor Mendoza II said the period of suspension will commence upon finality of the order/decision and payment of the fine imposed and during the period of suspension, the user log-in of the concerned firms shall be deactivated.

“The LTO reserves the right to institute criminal actions against the concerned person or entities who committed the above serious offenses,” Mendoza noted. 

In addition, the sets of penalties for the two offenses also have a 90-day preventive suspension that will start after the receipt of the show cause order that will be issued by the LTO.

Less serious offenses' fines

Under the same AO amendment, less serious offenses were classified as failure to comply with the standard requirements and other laws and their implementing rules and regulations relating to business operations and, allowing the use of its accreditation by non-accredited persons or entities.

The penalty for violating the said offenses for the first time is P100,000. The subsequent penalties would be P500,000 (second); P1 million (third); and cancellation of accreditation certificate as well as blacklisting for a period of one year from finality of order (fourth).

Mendoza expressed optimism that stricter penalties would compel the companies to strictly observe the rules and regulations, saying that this would correct the policy before wherein violators can still transact with the LTO — citing a case involving two Bugatti Chiron units.

Photos from Ruben Manahan IV, Land Transportation Office

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