MANILA, Philippines — Suzuki Philippines Inc. is collecting deposits from customers purchasing vehicle models covered by the provisional safeguard duty imposed by the government.
“The provisional SG (safeguard) duty shall not increase current SRP (suggested retail price) of our affected automobile units. However, a special cash discount amounting to P78,400 (P70,000 SG duty + 12 percent value-added tax) shall be collected by Suzuki automobile dealerships upon retail sale,” Suzuki Philippines said in an advisory.
Covered by the special cash deposit are Suzuki vehicle models such as the APV van, Celerio, Ciaz, Ertiga, Swift, Vitara and XL7.
Meanwhile, no deposit would be collected for purchases of vehicle models S-Presso, Dzire, Carry, and Jimny.
The special cash deposit is being collected as the Department of Trade and Industry (DTI) slapped provisional safeguard duties on vehicle imports.
In particular, the DTI imposed safeguard duties amounting to P70,000 for passenger car imports and P110,000 for imported commercial vehicles.
This, after the DTI found a link between the surge in vehicles imports and the injury to the domestic motor vehicle industry in terms of declining market share, sales and employment in its evaluation of the petition filed by the Philippine Metalworkers’ Alliance.
Suzuki said it would treat the deposit as additional payment for the purchased automobile unit should the TC decide the safeguard duties should be in place for a longer period.
On the other hand, Suzuki Philippines will refund the customer upon issuance of an order by the TC and the corresponding refund by the Bureau of Customs.
Under the Safeguard Measures Act, the government may provide temporary relief to the domestic industry hurt by a surge in imports.