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

Eighteenth Congress
Second Regular Session

8244

House Bill No.

Introduced by Representatives
PAUL R. DAZA, WESLIE T. GATCHALIAN, ENRICO A. PINEDA, and
FAUSTINO MICHAEL CARLOS T. DY III

EXPLANATORY NOTE

Section 14 of the 1987 Constitution declares that the State shall foster the
preservation, enrichment and dynamic evolution of a Filipino culture based on the principle of
unity in diversity in a climate of free artistic and intellectual expression. Meanwhile, Section
16 declares that the country’s artistic and historic wealth constitutes the cultural treasure of
the nation and shall be under the protection of the State which may regulate its disposition
(emphasis, ours).

Meanwhile, the National Cultural Heritage Act (RA 10066) recognizes the State’s
role in creating “a balanced atmosphere where the historic past coexists in harmony with
modem society” and its objectives to “approach the problem of conservation in an integrated
and holistic manner, cutting across all relevant disciplines and technologies” and “administer
the heritage resources in a spirit of stewardship for the inspiration and benefit of the present
and future generations.”

To pursue this mandate, the government should protect and promote our country’s
cultural and historical assets. While we have put in place programs and policies for preservation
of historical assets such as buildings and structures, we may have overlooked what are known
as “vintage vehicles”—many of them considered valuable primarily due to their age, longevity,
and historical significance.

These vehicles, which are also considered as economic assets should be considered as
part and parcel of our history and heritage. They have not only passed the test of time but also
serve as testimonial to the ingenuity, artistry, and skills of their mechanics and engineers as
well as dedication and passion of their owners.

The restoration of vintage vehicles and the production of their spare parts constitute a
major international industry, for which the country’s unique conditions make it competitive.
The proposed bill seeks to provide an environment that will encourage and permit its
businessmen, technicians, and workforce to acquire the knowledge and skills necessary for that
industry. To achieve that, it will be necessary to reintroduce the country to vintage cars.


In the pursuit of the preservation and promotion of vintage vehicles as a strategy for
promoting Filipino history, ingenuity, artistry, and expression, as well as economic
opportunities, this Act aims to pursue the objectives set out in the Declaration of State Policies
in the attached draft bill.

In a world beset by the pandemic and threatened by recession, it is important to explore
the economic opportunities described above, to create jobs for mechanics, tinsmiths, craftsmen,
painters, laborers, shop owners, and small and medium industries, while at the same time
preserving the country’s heritage in its motoring history. Finally, it is perhaps also important,
in these challenging times, to permit our people the joy of maintaining, resurrecting, and seeing
vintage cars as they were when they were new.

The immediate enactment of this proposed legislation is then earnestly sought.

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PAUL R. DA’
Representafive, 1* District of Northern Samar

WESLI (en [ALIAN

Representaty tyict of Valenzuela

ENRICO <A. PINEDA
Representative, Party-List, I-PACMAN

F. INO MICHAEL T- iT
Representative, 5" District of Isabela


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

Eighteenth Congress
Second Regular Session

House Bill Nee

Introduced by Representatives
PAUL R. DAZA, WESLIE T. GATCHALIAN, ENRICO A. PINEDA, and
FAUSTINO MICHAEL CARLOS T. DY III

AN ACT REGULATING THE USE AND REGISTRATION OF VINTAGE
AUTOMOBILES AND OTHER HISTORICAL, CLASSIC, OR COLLECTOR
MOTOR VEHICLES, PROVIDING EXEMPTIONS AND RESTRICTIONS ON
THEIR IMPORTATION AND USE, AND ESTABLISHING A VINTAGE CAR
REGISTRATION AND ASSESSMENT OFFICE, AND APPROPRIATING FUNDS
THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
ARTICLE I
DECLARATION OF POLICY AND
DEFINITION OF TERMS

Section 1. Short Title. ~ This Act shall be known as the “Vintage Vehicle Act.”

Section 2. Declaration of State Policy. — Section 14 of the 1987 Constitution declares
that the State shall foster the preservation, enrichment, and dynamic evolution of a Filipino
culture based on the principle of unity in diversity in a climate of free artistic and intellectual
expression, Section 16 declares that the country’s artistic and historic wealth constitutes the
cultural treasure of the nation and shall be under the protection of the State which may regulate
its disposition.

The State recognizes that motor vehicles are components of Philippine culture,

embedded in its history and its chronicles of government, transportation, industry, security,


social life, and popular culture. Although the country saw its first motorcar in 1900!, it has lost
much of its legacy in what are known as “vintage vehicles,” not only to the ravages of time and
devastating war, but also to administrative polices that discouraged their preservation,
registration, and use. The State accepts that examples of the surviving vintage vehicles, as well
as their elated tools, equipment, buildings, literature, and collectible ephemera, deserve and
require sustainable conservation, and that motoring heritage aids contextualization,
documentation, interpretation, and understanding of the development of the nation’s way of
life and how it continues to transition. It is accordingly the declared policy of the State to
conserve, sustain, and enhance its heritage and patrimony in vintage vehicles.

The economic significance of a local motor vehicle industry is reflected in Executive
Order no. 156 (2002), titled “Providing for a Comprehensive Industrial Policy and Directions
for the Motor Vehicle Development Program and its Implementing Guidelines,” which states
that “the motor vehicle industry is a significant contributor to the country’s economic output,
employment, investments, exports, and the development of small and medium scale parts and
component manufacturing establishments.”

The State recognizes the large and expanding international markets for the restoration
of these vintage vehicles, an industry that in the United Kingdom alone is valued at £5.5 billion,
and the worldwide demand for replacement parts for the repair and restoration of these vehicles.
The State is keenly aware that the country’s unique conditions, the capability of its small and
medium industries, and its deep resource in human skills make it competitive in those markets.
It is therefore the declared policy of the State to provide an environment that will encourage its
entrepreneurs and industries to participate in those market and permit its businessmen,
technicians, and workforce to acquire the knowledge and skills necessary for the purpose and,
toward such ends, reintroduce the country to the world of vintage vehicles.

In furtherance of such policies, this State shall pursue the following objectives:

(i) protect, preserve, enhance, and promote the nation’s heritage in vintage vehicles and
in furtherance thereof permit the importation of such vehicles in historically correct
condition;

(ii) establish and strengthen regulatory policies that encourage their preservation,
maintenance, occasional use, and registration;

(iii) increase economic opportunities by creating conditions favorable to small and

medium industries that may participate in the international markets for the restoration

* A Georges Richard automobile was imported into the Philippines in 1900.


and repair of vintage vehicles and the manufacture of their spare and replacement parts;
and

(iv) encourage tourism through the promotion of vintage automobile tours, concours
d’elegance, shows, vintage motorsports, and similar events.

Section 3. Scope of Act. - The provisions of this Act shall control, as far as they apply,
the importation, registration, operation, and regulated export of Vintage Vehicles.

Section 4. Definition of Terms. — As used in this Act:

“Authentic,” in respect of a particular vehicle, shall mean a replacement part, whether
old or newly produced, that is identical in appearance and function to an original component
installed in the vehicle or in vehicles belonging to the same model line as the vehicle at the
time of manufacture, but not necessarily made of the same material, including chassis and
monocoque shell and subframe replacements? of the same pattern as the original. Old spare
parts from the manufacturer's stock intended for the later servicing or repair of vehicles of the
same model line as the vehicle fall in this category.

“Motor Vehicle” shall mean any self-propelled vehicle designed to carry passengers
or goods, including, but not limited to, automobiles, pick-up trucks, vans, sports utility
vehicles, Asian utility vehicles, and motorcycles. A trailer, caravan, or other vehicle intended
to be towed by attachment to a motor vehicle shall be deemed a Motor Vehicle for purposes of
this Act.

“LTO” shall mean the Land Transportation Office or any successor agency.

“Original,” in respect of a particular vehicle, shall mean parts of the vehicle, including
the motor and gearbox, that were originally installed by its manufacturer at the time of
manufacture.

“Vintage Vehicle” shall mean a Motor Vehicle that is at least thirty (30) years of age
from the date of manufacture and whose chassis, engine, steering, and suspension are either
original or authentic and whose body has not be altered in general appearance, subject only to
the exceptions in Section 11 hereof. The term shall exclude replicas and reproductions of
Vintage Vehicles.

“VVRAO” shall mean the Vintage Vehicle Registration and Assessment Office,
referred to in Section 19 hereof.

2U.K. Government Official Guidelines, Historic (Classic) Vehicles: MOT Exemption Criteria.


ARTICLE I
EXEMPTIONS

Section 5. Exemption. — In recognition of their small number, their expected limited
use, and the historical fact that the technology available at the time of their manufacture will
not permit them to meet modem standards, Vintage Vehicles registered under this Act shall not
be required to meet clean-air>, anti-pollution‘, safety, road-use, and other standards that were
not in force at the time of their manufacture, either as a condition for their registration and use
on public roads or otherwise, the provisions of the Clean Air Act (RA 8749) and any other law
or regulation notwithstanding. However, Vintage vehicles manufactured after December 31,
19675 must be fitted with safety belts as mandated by current law.

Section 6. Importation. — (a) Vintage Vehicles may be imported freely into the
Philippines.

(b) The State and its agencies shall impose no restrictions on the importation of Vintage
Vehicles or special duties, taxes, fees, imposts, or other charges that are more stringent or
burdensome than those that apply to other Motor Vehicles. In no event shall the total duties,
taxes, fees, imposts, and other charges payable upon the importation of a Vintage Vehicle
exceed twenty percent (20%) of the higher of (i) the purchase price paid by the importer to the
seller, subject to validation by the Bureau of Customs, or (ii) its fair market value outside of
the Philippines at or about the time of importation, based on the minimum market value stated
for the vehicle’s model in the Kelley Blue Book or, if the Kelley Blue Book is then no longer
in publication, the NADA Used Car Guide or other comparable internationally regarded
reference guide then regularly used by the Bureau of Customs in the assessment of the value
of imported vehicles.

(c) To further support the industry and skills development for the repair, maintenance,
and restoration of Vintage Vehicles and the manufacture of spare and replacement parts for
such vehicles, subject to existing free trade agreements, in no instance shall the total taxes,
duties, and other charges payable upon the importation of spare or replacement parts for
Vintage Vehicles exceed one percent (1.0%) of their purchase price or landed value, as
determined by the Bureau of Customs.

Section 7. Exportation. — (a) Subject to Section 7(b) below, a Vintage Vehicle may
not be exported within three years from its importation into the Philippines under this Act. To

2 The Clean-Air act was approved June 23, 1999.
“PD 1181 on pollution abatement was issued August 1977.
5 Automobiles manufactured before 1968 have no safe attachment provisions for safety belts.


help in preserving the cultural and historical heritage associated with Vintage Vehicles, the
exportation of Vintage Vehicles that have historical significance, such as vehicles of Presidents
of the Philippines, as certified by the National Historical Commission of the Philippines in
accordance with rules and guidelines, shall be prohibited.

(b) The State and its agencies shall impose no restrictions on, and shall adopt rules and
procedures to facilitate, the temporary export of Vintage Vehicles for shows, rallies, tours, and
similar events and for trade-related purposes abroad and their re-importation into the country,
for which no duties, taxes, or other charges shall be imposed. Vintage Vehicles temporarily
exported under this Section shall be returned to the Philippines within one-hundred-eighty
(180) days, which the VVRAO may extend for a further period of one-hundred-eighty (180)
days, subject to the submission by the owner of a request and any supporting documents
justifying the extension.

Section 8. Right-hand Drive Vehicles. — The prohibition on the importation,
registration, and use of right-hand-drive vehicles shall not apply to Vintage Vehicles
manufactured on or before December 31, 1970 or to Vintage Vehicles intended principally for
racing or other motorsport.

ARTICLE Hl
RESTRICTIONS AND ALLOWED MODIFICATIONS

Section 9. Resale. — A Vintage Vehicle may not be sold within three years from its
importation into the Philippines or, if later, its registration under this Act; provided that a
Vintage vehicle imported for repair or restoration in the Philippines may be exported at any
time.

Section 10. Period Specification. A Vintage Vehicle registered or otherwise
benefitting under this Act must be preserved and maintained in a historically correct condition, ®
which, for purposes of this Act and subject to Section 11 hereof, shall mean that (i) its chassis,
engine, steering, and suspension shall not have been replaced or modified except with original
or authentic components, and (ii) its body has not been changed in general appearance.

Section 11. Permitted Modifications. Modifications— The following modifications
shall be permitted on Vintage Vehicles:

( modifications of a type that can be demonstrated to have been made when the

Vintage Vehicle was in production or within ten (10) years of the end of production;

U.K. Government Official Guidelines, Historic (Classic) Vehicles: MOT Exemption Criteria.


(ii) modifications to brakes, suspension, axles and running gear to improve efficiency
or safety;

(iii) the use of carburetors or fuel injection systems not original to the Vintage Vehicle
to improve efficiency, economy or environmental performance;

(iv) the installation of a new, modem engine of the same brand or manufacture and of
the same general specification as the engine original to the Vintage Vehicle or
vehicles belonging to the same model line as the Vintage Vehicle; and

(v) the installation of after-market accessories and equipment, such as radios, air-
conditioning, and directional lights, to permit the convenient or safe use of the
vehicle.

Section 12. Limited Use. — (a) A Vintage Vehicle registered or otherwise benefitting
under this Act shall be used only on Saturdays, Sundays, and holidays, except for the purpose
of registration or inspections by the LTO or VVRAO under this Act. A Vintage Vehicle shall
in no event be used for commercial purposes, except only for motion pictures, advertisements,
pictorials, weddings, and motorcades. In no event shall a Vintage Vehicle be used as a public
utility vehicle or for the commercial transport of persons or goods.

(b) A Vintage Vehicle may, at the option of the owner, be used on any day of the week,
but, in such instance, the vehicle shall not be registered as a “Vintage Vehicle” under Section
13 hereof and shall not benefit from the exemption provided in Section 5 hereof. Such vehicle
shall be registered in accordance with and shall be subject to laws and regulations applicable

to Motor Vehicles in general.

ARTICLE IV
REGISTRATION

Section 13. Registration. All Vintage Vehicles intended to be used on public roads
shall be registered as a “Vintage Vehicle” with the LTO and, after the VVRAO shall have been
constituted and become operational, with the VVRAO in order to benefit from the provisions
of this Act. Registration shall be valid for five (5) years.

Section 14. License Plate. - The LTO through the VVRAO shall issue to each
registered Vintage Vehicle license plates that contain the words “Vintage Vehicle.” It shall
have white letters and numerals against a black field. The model year or year of manufacture
shall be indicated at the bottom center of the plate.

Section 15. Daily-use vehicle. To address safety and pollution concerns, the owner of
a Vintage Vehicle applying for or renewing the registration of a Vintage Vehicle under this Act

8


shall be required to show proof of ownership of a Motor Vehicle that is suitable for daily use
and is registered in the owner’s name under laws and regulations generally applicable to Motor
Vehicles.

Section 16. Inspection. — (a) A Vintage Vehicle applying for registration or the
renewal of its registration shall be subject to inspection for compliance with Sections 10 and
11 hereof and, if manufactured after December 31, 1975, minimum safety and roadworthiness
guidelines established by the LTO or, after it has been constituted, the VVRAO in consultation
with stakeholders. In no event shall the standards for safety inspection for Vintage Vehicles
exceed or be more stringent than those that were in force at the year the vehicle was
manufactured.

(b) For the purpose of verifying that a Vintage Vehicle is in historically correct
condition, as provided in Section 10 hereof, the owner of a Vintage Vehicle during its
inspection may be required to present manuals and other material relevant to the Vintage
Vehicle and documentation on major repairs conducted on the Vintage Vehicle. The LTO or
VVRAO shall ensure that its accredited inspection facilities shall have mechanics or
technicians who have exposure or expertise in the inspection of Vintage Vehicles.

(©) As in the case of any Motor Vehicle and in the interest of public safety and
responsible ownership, the LTO or, after it shall have been constituted, the VVRAO may
conduct random inspection of registered Vintage Vehicles on public roads and highways.

Section 17. Lost Papers. — (a) A Vintage Vehicle that has no certificate of registration,
official LTO receipt, or other evidence of ownership or registration may be registered as a
Vintage Vehicle under this Act, subject to the submission by the applicant of (i) a notarized
affidavit that states he or she is the owner, is in possession of the vehicle, and knows of no
claim on the vehicle and which describes the circumstances by which he or she came to acquire
the vehicle, (ii) clearance from the relevant police agency that there is no record of the vehicle
having been stolen, and (iii) payment to the LTO or VRAO of a one-time registration-
reconstitution fee of Ten Thousand Pesos (PhP 10,000.00) in addition to the regular fees and
charges for the registration of Vintage Vehicles.

(b) Publication of information. The VVRAO shall publish a notice of the application
in a paper of general circulation once a week for three (3) consecutive weeks at the expense of
the applicant and on its website within three (3) days from receipt of each complete application,
describing the vehicle and stating that the applicant has applied for registration in his or her
name. If the VVRAO receives no objection to the application or claim by third parties on the
vehicle with three months from publication, it shall register the vehicle as a Vintage Vehicle

9


under this Act. The registration of a Vintage Vehicle as aforesaid shall be without prejudice to
rights of persons who may claim ownership of the Vintage Vehicle under applicable laws.

(©) Date of manufacture, — The date of manufacture of a Vintage Vehicle with lost,
incomplete, or inconsistent papers may be ascertained through the car manufacturer or the
assistance of vintage car associations and/or interest groups. If details such as the exact date of
manufacture cannot be ascertained, the registration paper and entry in the database shall
indicate this fact and an annotation such as “date of manufacture is not available but has been
estimated by [name of authority/association].”

Section 18. Database; Restoration industry; Education. — (a) Recognizing the
historical and cultural value and contribution of Vintage Vehicles to employment and the
industry in general, the LTO or, after it shall have been constituted, the VVRAO shall establish
and maintain a national database that lists and describes Vintage Vehicles in the country, which
it shall share with the National Historical Commission for purposes of Section 7(b) hereof.

(b) To support the local restoration industry, the VVRAO shall include in its database
authorized and licensed companies and shops engaged in the repair or restoration of Vintage
Vehicles or in the manufacture of spare and replacement parts for Vintage Vehicles and
actively engage them, private sector associations and interest groups, and relevant government
agencies, such as Technical Education and Skills Development Authority (TESDA) in
strengthening opportunities and programs for skills and technological development in these
and related industries.

(c) The VVRAO shall promote and encourage the conscientious, correct and safe
maintenance of Vintage Vehicles through consistent information and education campaigns and

other means

ARTICLE V
VVRAO
Section 19. Creation of VVRAO. — There shall be established an office under the LTO,
to be known as, Vintage Vehicle Registration and Assessment Office (VVRAO), that shall
oversee the administration and implementation of this Act.
Section 20. Staffing Requirements. - Within sixty (60) days from the effectivity of this
‘Act, the LTO, in coordination with the Department of Transportation (DoTr) and Department
of Budget and Management (DBM), shall determine the organizational structure and staffing
requirements for the LTO-VVRAO. The said organizational structure and staffing
requirements shall be submitted to the Secretaries of the DoTr and DBM for approval

10


To assist it in the discharge of its functions, the VVRAO shall consult and seek the
recommendations of known Vintage Vehicle owners from the private sector and involve them
to the extent practicable in the assessment of technical issues arising from the implementation
of this Act, particularly Sections 10 and 11 hereof.

Section 21. Appropriations. — The amount necessary to carry out the provisions of this
Act shall be included in the annual General Appropriations Act.

Section 22. Implementing Rules and Regulations. - The LTO shall, after public
hearings and consultation with concerned sectors of society, shall formulate and issue the
necessary rules and regulations for the effective and speedy implementation of this Act within
sixty (60) days from the effectivity of this Act.

To ensure stakeholder representation, the LTO or VVRAO shall invite at least five (5)
Vintage Vehicle owners or representatives from owners’ groups or associations in the
development of the Implementing Rules and Regulations of this Act as well as all other relevant
policies and issuances. Any draft issuance or policy shall also be circulated electronically via
email and other social media channels for meaningful engagement of stakeholders especially

owners, collectors, restorers, mechanics, and enthusiasts.

ARTICLE VI
OTHER PROVISIONS

Section 23, Penal Clause. — The owner of a vehicle registered or which benefits from

the provisions of this Act that has not complied with or has violated the provisions of this

Act, particularly the restrictions in Article Ill, shall be penalized with a fine of P50,000 for

the first offense, a fine of P100,000 for the second offense, and a fine P250,000 and

cancellation of the registration of the vehicle for the third offense. The owner shall be given

a grace period of sixty (60) days to rectify any violation of Section 10 before a penalty is
imposed.

Section 24. Repealing Clause. ~ All laws, orders, rules and regulations and other

issuances, or parts thereof, which are inconsistent with this Act are hereby repealed, amended
or modified accordingly.

Section 25. Separability Clause. — Any provision of this Act declared invalid or
unconstitutional shall not affect the validity of the other provisions thereof.

Section 26. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in two (2) newspapers of national circulation.

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