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

Penalties include fines up to P1-M, certificate of accreditation suspension

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.

KEY TAKEAWAYS

  • What were classified as serious offenses

    The serious offenses classified under the approved amendment include 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.
  • What were classified as less serious offenses under the approved amendment?

    The less serious offenses in the approved revision include 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.
  • 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.

    EDSA

    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.

    LTO Chief Vigor Mendoza II

    “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).

    LTO logo

    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

    Also read:

    LTO to use MMDA cameras vs traffic violators

    LTO’s ‘No Registration, No Travel’ policy get more support from mayors

    LTO says new facility can produce 32,000 plates daily

    Sell your car at the best price

    Verified and genuine buyers Verified and genuine buyers
    Free listing Free listing
    List your car

    You might also be interested in

    • Upcoming
    • Omoda E5
      Omoda E5
      ₱1.5 Million Expected Price Manila
      Expected Launch Aug, 2024 Alert Me When Launched
    • JAECOO J7
      JAECOO J7
      ₱1.6 Million Expected Price Manila
      Expected Launch Aug, 2024 Alert Me When Launched
    • Honda WR-V
      Honda WR-V
      ₱1.266 Million Expected Price Manila
      Expected Launch Sep, 2024 Alert Me When Launched
    • MG RX8
      MG RX8
      ₱1.05 Million Expected Price Manila
      Expected Launch Aug, 2024 Alert Me When Launched
    • Toyota Vios 2024
      Toyota Vios 2024
      ₱832,000 Expected Price Manila
      Expected Launch Jul, 2024 Alert Me When Launched

    Latest Car Videos on Zigwheels

    Zigwheels
    • 2024 Suzuki XL7 Hybrid First Drive | Zigwheels.Ph
      2024 Suzuki XL7 Hybrid First Drive | Zigwheels.Ph
      24 May, 2024 .
    • 2024 Ford Territory Titanium X Review | Zigwheels.Ph
      2024 Ford Territory Titanium X Review | Zigwheels.Ph
      24 May, 2024 .
    • Sailun Turismo SU59 Performance Tires | Zigwheels.Ph in partnership with Sailun Philippines
      Sailun Turismo SU59 Performance Tires | Zigwheels.Ph in partnership with Sailun Philippines
      24 May, 2024 .
    • 2024 Chevrolet Trailblazer Premiere Review | Carmudi Philippines
      2024 Chevrolet Trailblazer Premiere Review | Carmudi Philippines
      16 May, 2024 .
    • 2024 Geely GX3 Pro Comfort Review | Carmudi Philippines
      2024 Geely GX3 Pro Comfort Review | Carmudi Philippines
      15 May, 2024 .
    • 2024 Toyota Yaris Cross S HEV Review | Zigwheels.Ph
      2024 Toyota Yaris Cross S HEV Review | Zigwheels.Ph
      15 May, 2024 .
    • 2024 Toyota Yaris Cross S HEV Spec Guide | Zigwheels.Ph
      2024 Toyota Yaris Cross S HEV Spec Guide | Zigwheels.Ph
      15 May, 2024 .
    • 2024 Ford Everest Sport Spec Guide | Zigwheels.Ph
      2024 Ford Everest Sport Spec Guide | Zigwheels.Ph
      06 May, 2024 .
    • 2024 Ford Everest Sport Review | Zigwheels.Ph
      2024 Ford Everest Sport Review | Zigwheels.Ph
      06 May, 2024 .
    • 2024 GAC Emkoo GL Review | Zigwheels.Ph
      2024 GAC Emkoo GL Review | Zigwheels.Ph
      06 May, 2024 .
    Watch Car Videos

    Car Articles From Carmudi

    • journal
    • advice
    • financing
    • insurance
    • McLaren MCL38 to wear Senna-inspired livery
      McLaren MCL38 to wear Senna-inspired livery
      Paulo Papa, May 24, 2024
    • General Tire relaunched under YHI PH
      General Tire relaunched under YHI PH
      Paulo Papa, May 24, 2024
    • Ford Bronco enters PH market
      Ford Bronco enters PH market
      Ruben Manahan IV, May 23, 2024
    • ACMobility expands charging network with new stations in Cebu
      ACMobility expands charging network with new stations in Cebu
      Paulo Papa, May 23, 2024
    • BAIC PH to open 8 dealerships, secures partners
      BAIC PH to open 8 dealerships, secures partners
      Ruben Manahan IV, May 22, 2024
    • LTMS Portal Online: All you need to know from registration to requirement
      LTMS Portal Online: All you need to know from registration to requirement
      Carmudi PH, May 23, 2024
    • Car Registration in LTO: A step-by-step guide
      Car Registration in LTO: A step-by-step guide
      Carmudi PH, May 18, 2024
    • Understanding 3-year LTO registration in detail
      Understanding 3-year LTO registration in detail
      Carmudi PH, May 15, 2024
    • Want to buy a car? Here's a complete list of all associated costs
      Want to buy a car? Here's a complete list of all associated costs
      Carmudi PH, May 10, 2024
    • Check out all the violations, penalties, and fines a driver may face in the Philippines - Part II
      Check out all the violations, penalties, and fines a driver may face in the Philippines - Part II
      Carmudi PH, May 09, 2024
    • Congratulations, you've fully paid for your used car. Now, what's next?
      Congratulations, you've fully paid for your used car. Now, what's next?
      Carmudi PH, May 15, 2024
    • Personal loan or car loan: Finding the right financing option for your car
      Personal loan or car loan: Finding the right financing option for your car
      Carmudi PH, May 08, 2024
    •  When and why to refinance your car loan
      When and why to refinance your car loan
      Carmudi PH, May 02, 2024
    • Uncovering the impact of credit scores on car loans in the Philippines
      Uncovering the impact of credit scores on car loans in the Philippines
      Carmudi PH, Apr 22, 2024
    • How to budget for your car loan repayment effectively
      How to budget for your car loan repayment effectively
      Carmudi PH, Apr 20, 2024
    • How do car modifications affect insurance in the Philippines?
      How do car modifications affect insurance in the Philippines?
      Carmudi PH, May 24, 2024
    • Car insurance participation fee: All you need to know
      Car insurance participation fee: All you need to know
      Carmudi PH, May 20, 2024
    • Here's how to get a notarised affidavit of car insurance claim
      Here's how to get a notarised affidavit of car insurance claim
      Carmudi PH, May 21, 2024
    • Your guide to car insurance payment options in the Philippines
      Your guide to car insurance payment options in the Philippines
      Carmudi PH, May 17, 2024
    • Switching car insurance providers in the Philippines: A detailed step-by-step guide
      Switching car insurance providers in the Philippines: A detailed step-by-step guide
      Carmudi PH, May 17, 2024

    Compare

    You can add 3 variants maximum*