LTO orders car, motorcycle dealers to include license processing in showrooms
The Land Transportation Office (LTO) has asked cars and motorcycle dealers across the country to include the processing of improved vehicle registration processes in their respective showrooms as part of the move to enlighten and empower owners of their rights as customers.
LTO chief Jose Arturo “Jay Art” Tugade said what should be shown are step-by-step processes which include issuance of Certificate of Registration (CR) and Official Receipt (OR), including the release of plates.
He said a memorandum was already issued in connection with the order wherein dealers are mandated to display the processing time in a conspicuous area in their showrooms for the transacting public to see.
"The memorandum seeks to constantly remind dealers that there is a processing period prescribed by law regarding vehicle registration that needs to be strictly observed and complied with. This will also keep the public informed of the responsibility of dealers related to the process and be able to inform the LTO in case of any delays committed by dealers," said Tugade.
“The display of vehicle registration processing time in their own showrooms will keep dealers on their toes to assure that they comply, and likewise allow the public that they have the power to report to the government any delays because as paying customers, they deserve to be served better,” he added.
The memorandum listed the five steps: First, owners should submit all the requirements being from them--the process usually takes one day; Second, the documents submitted by the owners would be turned over to the dealers, which in turn, would complete the other documents needed for registration; Third, car dealers would submit all the required documents to the LTO; Fourth, the LTO would take care of registering the motor vehicle, release the CR and plate number to the dealer; and, fifth, the dealer should inform or contact the owner to claim the OR/CR and the plate number once issued by the LTO.
Tugade said the memorandum directs all LTO regional officials through their Regional Accreditation Committees (RACs) around the country to monitor strict compliance by submitting to the office of the LTO chief a monthly report on the number of issued plates per dealership, including those that may be found violating this memorandum that will cause the issuance of Show Cause Orders.
For motor vehicle dealers, non-compliance with this memorandum may merit appropriate sanctions under Section 9 of LTO Administrative Order No. AVT-2014-023, such as a P100,000 fine for the first offense.
Motorcycle dealers, on the other hand, should pay penalties under Memorandum Circular 2021-2294 if they fail to register a motorcycle within a five-day period.
Failure to comply with step number 5 in the processing time shall incur penalties under the administrative order.