Lesson 2 Requirements on Importation & Schedule of Fines for Personally Owned Motor Vehicle and Arbitrary Freight & Miscellaneous Expense
At the end of the lesson students are expected to: 1. Learn the basic requirements in the importation of personally owned motor vehicle 2. Apply the formula in determining fines/penalty for said vehicle arriving without the requirements 3. Be familiar with the arbitrary freight and miscellaneous expense which may be used in the absence of specific amount or value.
DOCUMENTARY REQUIREMENTS FOR NO-DOLLAR IMPORTATION OF PERSONALLY-OWNED MOTOR VEHICLES
1. Dept. of Trade and Industry-Bureau if Import Services (DTI-BIS) prior import permit/authority 2. One (1) year residency abroad
3. Proof of income abroad
4. Six(6) months use/ registration
SCHEDULE OF FINES FOR NO-DOLLAR IMPORTATION OF PERSONALLY OWNED MOTOR VEHICLES (CAO 4-94)
c. Commission of only one of the following:
1.1 Lack of DTI-BIS prior import authority
1.2 Lack of one year residency abroad
1.3 Lack of proof of income abroad
1.4 Lack of 6 months use/registration
2. Non-compliance of two (2) of the above requirements
30% 3. Non-compliance of three (3) of the above requirements
50% 4. Non-compliance of all of the above requirements
80% 5. Second violation of any of the above requirements
30% 6. Third violation of any of the above requirements
No settlement by fine
Formula in determining Penalty/fines for motor vehicle
Penalty = Landed Cost x Rate of Penalty
ARBITRARY FREIGHT FOR MOTOR VEHICLES
Note: When the bill of lading does not indicate the actual freight or in case of local purchase scheme, the following arbitrary freight may be used:
1. Motor Vehicles, Car
a. From Germany and other Euro countries
b. From Japan and other ASEAN countries
c. From United States of America
c.1 US West Coast
c.2 US East Coast
d. From Middle East
Note: EAST COAST- The States usually included are Maryland, West Virginia, Delaware, Pennsylvania, New Jersey, and New York, the states of New England, and the District of Columbia.
Major Cities include: Washington, New York, Newark, Philadelphia, Pittsburgh, Boston, Baltimore, Richmond, Norfolk, Raleigh, Charlotte, Greensboro, Atlanta, Jacksonville, and Miami.
WEST COAST- It most often comprises California, Oregon, Washington, Arizona and Nevada.
Major coastal cities on the West Coast include: Los Angeles, San Diego, San Francisco, Seattle, Anchorage, Honolulu, and Long Beach.
Major non-coastal cities include: Phoenix, San Jose, Las Vegas, Portland, Sacramento, Fresno, Tucson and Oakland.
Note: When shipping documents does not indicate the amount for miscellaneous expense which is required in the determination of landed cost for motor vehicle, the amount of Php7,200.00 shall be used.
Self Test/Activity & Assignment
1. If landed cost of a motor vehicle was Php1,600,000.00 and had arrived without prior DTI-BIS import permit, how much is the amount of penalty?
2. If total landed cost of a car was Php 3,700,000.00 and arrived without proof of income and lack of at least 6 months registration, how much is the penalty?
3. Miss Roraldo a returning resident brought home an unregistered Toyota car model 2011 for the 2nd time, with an assessed dutiable value of Php 1,500,000.00 subject to 25% rate of duty, how much is the amount of penalty?
4. If customs value of a car was Php2,500,000.00 subject to 30% rate of duty, how much is the amount of customs duty, if the car came from California?
5. If the book value of the car was US$ 45,000.00, 2009 model from Delaware, how much is the amount of Dutiable Value in Peso, if exchange rate was...
Please join StudyMode to read the full document