Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6455

Introduced by Representatives:
Pantaleon D. Alvarez and Cesar V. Sarmiento

EXPLANATORY NOTE

This bill seeks to provide for a speedy processing by the Land
Transportation Office of the registration of imported motor vehicles.

Section 27 of Article II of the Constitution provides that “it is the policy
of the State to maintain honesty and integrity in the public service™tnd take
positive and effective measures against graft and corruption.”

Accordingly, President Rodrigo R. Duterte directed the officials of the
Land transportation Office (LTO) to reduce and streamline the process of
issuing certificates of registration, permits, licenses and other legal documents
to the “barest minimum” as he pledged to cut down on red tape and corruption.

The Land Transportation Office (LTO) is the lead agency responsible for
all land transportation in the Philippines especially implementing transportation
laws, rules and regulations. Currently, the presence of bureaucratic red tape in
the agency frustrates clients for requiring them to go through long series of
routinary procedures to secure vital government services such as certificates of
registration for imported vehicles. This problem is further compounded by the
tedious process of obtaining from the Bureau of Customs, proofs of payment of
taxes, customs duties or other charges necessary for the issuance of the
certificate of registration for imported vehicles.

A dealer, importer or private individual has to spend one whole day just
to get a copy ofa certain document, or worse to keep on going back to the office


many times to follow up the document requested. It has become imperative for
the government to act on this predicament by taking advantage of technological
advances to improve efficiency in the delivery of services and streamlining the
process of obtaining common official document. Red tape does not only
lengthen the procedures, it also opens avenues for bribery and corruption since
the public would rather pay their way for an immediate result than wait for an
unreasonable length of time.

The bill mandates the LTO to issue the certificate of registration of
imported motor vehicles within forty-eight (48) hours from the date of
submission of the requirements needed. The bill also mandates the LTO to
coordinate and cooperate with the Bureau of Customs for the electronic
transmission of and access of accurate, timely and reliable certificate of
payment on taxes, customs duties and other charges, licenses, permits,
clearances and other required importation documents necessary for the
registration of imported motor vehicles pursuant to Executive Order No. 482, s.
2005 entitled, "Creating the National Single Window Task Force for Cargo
Clearance." Under Executive Order No. 482, s. 2005, the Philippine
Government, spearheaded by the Bureau of Customs, launched the National
Single Window (NSW), which is a computerized internet-based system that
allows parties involved in trade to lodge information and documents with a
single entry point to fulfil all import, export and transit-related regulatory
requirements. If information is electronic then individual data elements are
submitted only once. The single window system will streamline the long and
tedious processing of official documents such as certificates of registration,
licenses and permits in the LTO.

The approval of this bill will improve the LTO delivery system by
simplifying the procedures and shortening the tedious process in government
transaction. It will minimize, if not entirely do away with the need to travel and
go to different offices every time a dealer, importer or private individual needs
to obtain a copy of certain documents or records. It will also reduce the
expenses and waiting time of service clients which can be used for other more
productive activities.

In view of the foregoing, the approval of this bill is highly imperative.

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De

P. EO! ALVAREZ CESAR V. SARMIENTO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Second Regular eyes
455
HOUSE BILL NO.

Introduced by Representatives:
Pantaleon D. Alvarez and Cesar V. Sarmiento

AN ACT
PROVIDING FOR A SPEEDY PROCESSING BY THE LAND
TRANSPORTATION OFFICE OF THE REGISTRATION OF
IMPORTED MOTOR VEHICLES AND PROVIDING PENALTIES FOR
VIOLATION THEREOF

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. The Land Transportation Office (LTO) shall issue the
certificate of registration of imported motor vehicles within forty-eight (48)
hours from the receipt of the application or request, upon submission by the
dealer, importer, or any person of the following documents: (1.) certificate of
payment on taxes, (2.) an undertaking from the dealer and importer that the
imported second-hand vehicles were not carnapped, and (3.) payment of
customs duties and other charges issued by the Bureau of Customs.

SEC. 2. To facilitate the speedy processing of the registration of

imported vehicles mentioned in Section | of this Act, the LTO shall link,


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coordinate, and cooperate with the Bureau of Customs, pursuant to Executive
Order No. 482, Series of 2005, entitled "Creating the National Single Window
Task Force for Cargo Clearance," for the electronic transmission of and access
to accurate, timely and reliable certificate of payment on taxes, customs duties
and other charges, licenses, permits, clearances and other required importation
documents necessary for the registration of imported motor vehicles.

SEC. 3. After compliance with the substantive and procedural due
process, the following penalties shall be imposed upon any personnel of the
LTO who fails to issue the certificate of registration, official receipt, license,
permit and other pertinent legal documents for imported motor vehicles within
the prescribed period of forty-eight (48) hours without due cause and knowing
that the application is meritorious and in order, as provided in Section | of this
Act:

First Offense — Thirty (30) days suspension without pay and
mandatory attendance in values orientation program;

Second Offense — Dismissal and perpetual disqualification
from public service.
The finding of administrative liability under this Act shall not be a bar to

the filing of criminal, civil or other related charges under existing laws arising

from the same act or omission as herein provided in Section | of this Act.


SEC. 4. The LTO Director shall, in coordination with the Commissioner
of Customs, promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 5. Republic No. 4136 otherwise known as the "Land
Transportation and Traffic Code," and other laws, presidential decrees or
issuances, executive orders, letters of instruction, administrative orders, rules
and regulations inconsistent with this Act are hereby repealed, modified or
amended accordingly.

SEC. 6. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,