PROVISIONAL SAFEGUARD DUTY

Provisional Safeguard Duty

1. What is the Provisional Safeguard Duty on imported vehicles?

  • The provisional safeguard duty is an import duty on certain imported vehicles imposed by the Bureau of Customs (BOC) effective February 1, 2021 as per DTI department Administrative Order (DAO) No. 20-11. 
  • The import duty is “provisional” because this may or may not be returned by BOC depending on the outcome of the investigation by the Tariff Commission. 

2. What are the Provisional Safeguard Duty Rates imposed by BOC?

   CATEGORY  DUTY RATE

Passenger Cars

PHP 70,000 per unit

Light Commercial Vehicles

PHP 110,000 per unit

3. What Toyota models are covered by DAO NO. 20-11?

   CATEGORY  MODELS

Passenger Cars

86

Yaris

Wigo

Rav4

Rush

Avanza

Camry G

FJ Cruiser

Corolla Altis

Corolla Cross

Fortuner V and G

Light Commercial Vehicles

Hilux

Hilux Cab and Chassis

Hiace Cargo

4. What Toyota models are exempt from the coverage?

EXEMPT MODELS:

Vios, Innova, Prius, Supra, Camry V, Fortuner LTD and Q, Prado, Hiace, Alphard. Coaster

5. Will the provisional Safeguard Duty increase the current SRP?

  • The provisional safeguard duty will not increase the current SRP.  However, a security deposit will be collected upon every purchase of motor vehicle covered by DAO 20-11 starting March 1, 2021
  • The security deposit will be returned to the customer in case the Tariff Commission decides (within 120 days indicative timeline) that there is no basis to impose safeguard duties.

6. How much is the security deposit?

   MODELS  DEPOSIT

86

Yaris

Wigo

Rav4

Rush

Avanza

Camry G

FJ Cruiser

Corolla Altis

Corolla Cross

Fortuner V and G

PHP 78,400

(VAT inclusive)

Hilux

Hilux Cab and Chassis

Hiace Cargo

PHP 123,200

(VAT inclusive)

7. When will the security deposit be collected?

The security deposit will be collected simultaneous with the making of the down payment. The amount collected will be held in trust for the customer and an Acknowledgment Receipt will be issued.

8. What is the mechanism in case of refund?

To claim the deposit, a customer or his/her authorized representative may visit the dealer with following documents:

  • 1  valid  government-issued  ID.  If  a  representative  will  claim, representative should also have 1 valid government-issued ID. 
  • Signed  and  dated  authorization  letter  from  customer  is  required  from  the representative