RMC No. 30-2023

RMC 30-2023 reiterates how the Total Landed Value (TLV) of imported automobiles is computed when importers apply for an Electronic Authority to Release Imported Goods (eATRIG). Per Sec. 2(h) of RR No. 25-2003, TLV is the total of (i) the market value of the vehicles per motor vehicle reference books or the dutiable value under the Tariff and Customs Code, whichever is higher, (ii) customs duties paid, and (iii) all other charges arising from or incident to the importation; all three items must be considered. The BIR uses the U.S. Auto Red Book Online Price Digests for market valuation. The ad valorem tax on imported automobiles is based on the wholesale price for importers that are also qualified automobile dealers (holder of a PTO as importer and dealer for excise tax purposes, with a dealership agreement with foreign suppliers/manufacturers, a showroom or registered storage/warehouse facility, imports by bulk or at least 12 units in 12 months, and importation for sale to customers); importers who do not meet these requirements, including those importing for personal or company use, are taxed on the retail price.