(CNN Philippines) — Two car dealers whose businesses are based in Metro Manila were caught red-handed issuing several sales invoices for single-vehicle purchases to help clients avoid violations against the “No Registration, No Travel” policy, which was implemented by the Land Transportation Office (LTO) last Wednesday (April 1).
The first dealer, a salesman from Quezon City, was caught with three different sales invoices for just one vehicle, while 10 sales invoices dated from March until May were discovered from a car dealer in Makati — all for a vehicle that was bought early this year.
The ploy was developed by salesmen to get around the newly implemented travel ban for unregistered cars.
According to the policy, new cars must be registered within seven days upon the date of purchase — a responsibility that falls both on the car owner and the car dealer.
“The OR, CR, plate and sticker will be given upon registration,” said LTO spokesperson Jason Salvador.
The license plates, on the other hand, will be released within seven days from registration.
Failure to comply to the new LTO ruling will cost motorists thousands in fines.
If a vehicle remains unregistered after seven days from the date it was purchased, the owner will be fined P10,000. Failure to attach license plates, on the other hand, will cost a car owner P5,000.
But according to the LTO, motorists may counter claims of violating the travel ban if they can prove that registration delays were caused by their dealer.
Salvador added that some car dealers delay registration for their own convenience.
The Transportation Office urged car owners to fight against this practice by demanding immediate registration from car sellers. Car owners were also encouraged to ask assistance from the LTO in verifying documents should they encounter glitches in the registration process — especially those that are brought on by dealers.
Meanwhile, the car dealers in question were already asked by regulators to explain their side.
The seller in Makati admitted to the scheme, but claimed to have stopped the practice when the “No Registration, No Travel” was strictly enforced last week. The car dealer in Quezon City, on the other hand, refused to comment.
Both face suspension, or revocation of dealer’s accreditation.
Reconsider new policy
The Metropolitan Manila Development Authority (MMDA), on the other hand, asked the Transportation Office to reconsider the travel ban on unregistered vehicles a day after the new policy was implemented.
According to the Philippines News Agency, MMDA Chairman Atty. Francis Tolentino said that the policy might be “unconstitutional” since it deprives an individual of the right to use personal property.
He added that owners of brand new vehicles — those who have registered their cars and are only waiting for the issuance of their license plates — should not be faulted.
“They [owners of brand new vehicles] should not be penalized for not having their license plates on time, they already have their conduction stickers. They are paying their monthly amortizations and have no deliberate intention to violate the law,” Tolentino said.
Meanwhile, the LTO and the Department of Transportation and Communications has made a list of license plates’ series available to the public so that four-wheeled vehicle owners can identify where their new plates are.
The list covers transactions made with the LTO from January to March 27 this year.
CNN Philippines’ Patricia de Leon contributed to this report.
