FAQ: Provisional Safeguard Duty

In: Uncategorized
26Feb

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. Read on to learn more about this.

What is Provisional Safeguard Duty?

A provisional safeguard duty is a tariff imposed on certain imported products to protect local industries in response to increased imports provided that a formal petition is filed at DTI.

This petition cam from the Philippine Metalworkers Alliance (PMA), thus warranting a formal investigation by the Tariff Commission. Basis: Republic Act No. 8800 or *Safeguard Measures Act”

What models are affected?

The following models are the affected Toyota models

  • All Passenger Cars *<10-seating capacity
    • Camry G, Corolla Altis, Corolla Cross, Fortuner G/V, Rush, Avanza, Wigo, Yaris, 86, FJ Cruiser, Rav4
  • Light commercial vehicle < 10-seating capacity
    • Hilux, Hilux Cab and Chassis, HiAce Cargo

What does this mean for the customer?

A deposit will be collected to cover the provisional safeguard duty upon purchase of the affected vehicle

What happens to the price of the affected models?

Compared to other car brands, Toyota will not have a price increase because of this duty. Customer will only make a deposit as in the details below.

  • All Passenger Cars
    • Php 70,000 per Unit
      • php 78,400 (inc of VAT)
  • Light commercial Vehicle
    • Php 110,000 per Unit
      • Php 123,000 (inc of VAT)

When will this be implemented?

Effective March 1, additional customer deposit of P78,400 (passenger car)/P123,000 (light commercial vehicle) will be collected due to the provisional customs import duties applied since February 2021.

Our Marketing Professional will provide further details on this.

When do i have to make the deposit?

The deposit will be collected during the down payment.

This will be held in trust for the customer and an Acknowledgement Receipt will be issued.

Will the provisional duty rates be permanent?

Depending on the results of the investigation, if the Tariff Commission determines there is a basis for the petition, DTI may impose a final duty rate or modify it.

Your Dealer will be giving updates on the development of this policy.

What happens to my deposit?

In the event that the DTI will impose a final duty rate, the deposit will be treated as additional payment for the vehicle.

Otherwise, the Dealer will be refunding the deposit to the customer

What do I need to do in case there is a refund?

To claim the deposit, customer or an authorized representative should only come to the dealer and bring the following:

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