Stiffer penalties for erring car dealers, importers approved

Stiffer penalties for erring car dealers, importers approved

MANILA, Philippines — The Land Transportation Office (LTO) on Friday announced an increase in penalties for offenses involving erring car dealers and importers.

This came after Transportation Secretary Jaime Bautista approved the LTO’s recommendation to amend its administrative order for higher penalties against erring Manufacturers, Assemblers, Importers, Rebuilders, Dealers And Other Entities (MAIRDOE) authorized to import motor vehicles and its components.

Under the amended LTO administrative order, higher penalties will now be imposed on the following offenses:

• Commission of fraud and misrepresentation in the filing of the application and its operations, including stock and sales reporting; and
• the submission of fraudulent, fake or falsified stock/sales periodic reports as required by law, rules and regulations. 

For the first offense on both, violators will face a Suspension of Certificate of Accreditation of not more than six months, a fine of P500,000, as well as cancellation of the Certificate of Stock Reported (CSR), sales report and registration of the vehicles.

For the second offense, penalties now include Certificate of Accreditation and blacklisting for one year from finality of order of cancellation and the cancellation of the CSR, sales report and registration of the vehicles.

According to LTO chief Vigor Mendoza II, the period of suspension will start only upon finality of the order or decision.

Meanwhile, the user log-in of erring MAIRDOEs on LTO’s online portal shall also be deactivated within the payment of the fine imposed and during the period of suspension.

Mendoza said the penalties shall also include a 90-day preventive suspension which will start after the receipt of the Show Cause Order that will be issued by the LTO.

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

Meanwhile, for less serious offenses — such as failure to comply with the standard requirements and other laws and their implementing rules and regulations relating to the MAIRDOE business operations and allowing the use of its accreditation by non-accredited persons or entities — the penalty for the first offense will be P100,000.

The second offense will incur a penalty of P500,000 to the violator; and for the third offense, P1 million.

For the fourth offense, MAIRDOEs will face cancellation of Certificate of Accreditation and blacklisting for a period of one year from finality of order of cancellation.

Mendoza explained that the higher fines were introduced after the case of the fraudulent transactions involving two Bugatti Chirons, allegedly smuggled in the country.