In early January, the Department of Trade and Industry announced that it would be implementing a Department Administrative Order that would impose a Safeguard Duty on imported motor vehicles. Well, it looks like this will soon come to pass as carmakers such as Toyota Motor Philippines recently announced that it will be asking for a security deposit on certain new vehicles purchased beginning March 1, 2021.
As per DTI’s DAO 20-11, TMP will be asking each customer for a security deposit on vehicles that are affected by the Safeguard Import Duty order. These models include:
- Camry G
- Corolla Altis
- Corolla Cross
- FJ Cruiser
- Fortuner G and V
Buyers of these models will need to pay an additional P78,400 to cover the Safeguard Import Duty.
As for Light Commercial Vehicles, Toyota models that will be affected by this new measure include:
- Hilux Cab and Chassis
- HiAce Commuter.
Buyers of these offerings will need to shell out an additional P123,200 in Safeguard Import Duties.
It will be recalled that the DTI sought the imposition of this duty as a response to a petition filed by the Philippine Metalworks Alliance, which said that it has been greatly affected by the influx of imported vehicles into the country. The move is said to help protect our local auto industry.
Apart from Toyota, other carmakers like Geely have announced that it will be adjusting its prices to reflect the new duties. How this will affect sales and the industry in the immediate to medium term future remains to be seen. For now, we should all brace ourselves for higher prices on a lot of new c