Auto firms to hike prices as additional duties take effect

MANILA, Philippines — Consumers planning to buy vehicles should be prepared to pay more as automotive firms Toyota Motor Philippines Corp. (TMP) and Isuzu Philippines Corp. (IPC) would be collecting a deposit for the provisional safeguard duties for its imported products starting next month.

“Starting March 1, 2021, a security deposit shall be collected on every purchase of motor vehicles covered by [Department of Trade and Industry] DAO (Department Administrative Order) 20-11,” TMP said in an advisory.

Under the DAO, a provisional safeguard duty shall be imposed on certain imported passenger cars and light commercial vehicles (LCV) amounting to P70,000 and P110,000, respectively.

Toyota vehicles covered by the provisional safeguard duty are the 86, Wigo, Avanza, Camry G, Corolla Altis, Corolla Cross, Yaris, FJ Cruiser, Fortuner V and G, and Rav4.

A security deposit amounting to P78,400 inclusive of value-added tax (VAT) would be collected for these vehicles.

For LCVs, a security deposit amounting to P123,200 inclusive of VAT would be collected on the Hilux, Hilux cab and chassis, and Hiace cargo.

“The security deposit will be collected simultaneous with the making of the downpayment. The amount collected will be held in trust for the customer and an acknowledgement receipt will be issued,” TMP said.

In a separate advisory, IPC said a deposit worth P78,400 inclusive of VAT would be collected for the mu-X, while a P123,200 deposit inclusive of VAT would have to be made for the D-MAX by March 1.

The DTI ordered the imposition of a provisional safeguard measure on cars and LCVs after it found higher vehicle imports are causing serious injury to the domestic motor vehicle manufacturing industry in its evaluation of the petition filed by the Philippine Metalworkers’ Alliance.

Under the Safeguard Measures Act, the government can impose safeguard measures in the form of tariffs to provide relief to the local industry when there is serious threat or injury from increased imports of like products.

An investigation is currently being conducted by the Tariff Commission (TC) on the merits of having a safeguard measure on vehicle imports.

Should the TC decide there is no basis to impose the provisional safeguard duty, the deposit collected would be returned to the customers.