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Tuesday, February 23, 2021

Toyota Motor PH to Offer Refundable Deposit Due to Safeguard Duties


With the DTI implementing the Safeguard Duty on imported vehicles, Toyota Motor Philippines is taking a surprisingly conservative approach by offering a refundable deposit to select vehicles effective March 1, 2021.

Unlike other makes such as Geely and GAC Motor which have each announced price increases due to the safeguard tariffs, Toyota will instead take a deposit to cover the provisional safeguard duty. Depending on the results of the DTI’s investigation, this deposit may end up being refunded to the customer.

Toyota vehicles covered by the safeguard duties are the following:
  • Toyota 86
  • Toyota Wigo
  • Toyota Avanza
  • Toyota Camry (G variant only)
  • Toyota Corolla Altis
  • Toyota Corolla Cross
  • Toyota Yaris
  • Toyota FJ Cruiser
  • Toyota Fortuner (G and V variants only)
  • Toyota RAV4
  • Toyota Hilux
  • Toyota Hilux Cab & Chassis
  • Toyota Hiace Cargo
These vehicles will carry a deposit of P 78,400 or P 123,200 (inclusive of VAT for Hilux, Hilux Cab & Chassis, and Hiace Cargo).

Vehicles exempted are those manufactured locally, light duty vehicles with seating capacity of ten or more, or whose Freight on Board (FOB) prices exceed USD 25,000 for passenger cars and USD 28,000 for light commercial vehicles. This means that the Toyota Vios, Innova, GR Supra, Camry (V variant only), Fortuner (Q and LTD variants only), Land Cruiser, Land Cruiser Prado, Hiace, Alphard, and Coaster are not covered.

Check out the full Safeguard Tariff FAQ below:

What is a Provisional Safeguard Duty?

The provisional safeguard duty is an import duty imposed by the Bureau of Customs as per DTI Department Administrative Order(DAO) No. 20-11 on certain imported motor vehicles effective February 1, 2021.

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. 

What models are affected?

This will be a fixed amount, inclusive of VAT, on top of the vehicle SRP:

All Passenger Cars
  • Toyota 86
  • Toyota Wigo
  • Toyota Avanza
  • Toyota Camry (G variant only)
  • Toyota Corolla Altis
  • Toyota Corolla Cross
  • Toyota Yaris
  • Toyota FJ Cruiser
  • Toyota Fortuner (G and V variants only)
  • Toyota RAV4
Light Commercial Vehicles
  • Toyota Hilux
  • Toyota Hilux Cab & Chassis
  • Toyota Hiace Cargo
What models are exempted?

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

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.

How how is the security deposit?

It is P 78,400 (inclusive of VAT) for Passenger Cars and P 123,200 (inclusive of VAT) for Light Commercial Vehicles.

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 Acknowledgment Receipt will be issued.

What happens to my deposit?

In the event that the DTI will impose a definitive 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:
  • One (1) valid government-issued ID. If a representative will claim, representative should also have one (1) valid gov’t-issued ID.
  • Signed and dated authorization letter from customer is required from the representative.

4 comments:

  1. DTI’s safeguard duties doesn’t sound right especially during the pandemic. It’s shying away potential car buyers.

    ReplyDelete
  2. My sales agent just told me I have to fork over 123k pesos.
    I've had a reservation for at least a month now, and suddenly Toyota puts this on me. Thanks DTI, you bastards.

    ReplyDelete
  3. In case there is a refund, who will inform the costumer is it the Dealer or DTI. Is there website to see the names of costumers who will refund and who will not be granted to refund.

    ReplyDelete
    Replies
    1. From our understanding, it's the dealer who will inform the customer. There's no website, but if you are entitled to the refund, you would have gotten an acknowledgement receipt indicating your deposit for the safeguard tariff.

      Delete

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