Is waiting weeks (even months) for your vehicle’s license plates about to become a thing of the past? The Land Transportation Office (LTO) seems intent on pushing for that: It has issued 3,940 show-cause orders (SCOs) to motor vehicle dealers that failed to release the license plates and official receipt/certificate of registration (OR/CR) of newly sold vehicles within the 11-day prescribed period.
After investigating various dealerships’ delayed release of license plates and OR/CR, the agency found that the license plates “remain in the custody” of dealerships. Dealer representatives, however, countered that some clients do not respond to messages requesting that they claim their license plates.
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What happens when a dealership is issued a show-cause order?
LTO Memorandum Circular No. VDM-2024-2510, entitled ‘Procedures in the resolution of complaints against manufacturers, assemblers, importers and dealers,’ prescribes the current procedure for issuing and resolving SCOs concerning the late release of license plates and OR/CR.
SCOs are issued by the concerned LTO department upon evaluating a complaint, after which the manufacturer, assembler, importer, or dealer (MAIRD) has 15 days to submit a reply. The agency’s Operations Division–Central Office then has 30 days to craft a resolution based on the MAIRD’s response or lack thereof, and the Regional Accreditation Committee concerned has another 30 days to approve or disapprove the resolution.
An approved resolution becomes final and executory if no motion for consideration is filed within 15 days. A notice of finality is sent to both the MAIRD and the LTO’s Management Information Division, to deactivate or suspend the accreditation of the MAIRD until the prescribed fine has been settled.
You can find a copy of Memorandum Circular No. VDM-2024-2510 here.
According to LTO chief Atty. Vigor Mendoza II, most of the 3,940 dealers that had been issued SCOs already sent their responses to the LTO.
How long is the initial registration process for a brand-new vehicle or motorcycle?
An LTO memorandum dated March 21, 2024, covers the latest ‘Timeline of activities on the distribution of Official Receipt (OR), Certificate of Registration (CR), plate/s and RFID in the initial registration process.’ It states the number of working days required to complete each step as follows:
- Two (2) days – Online submission of documentary requirements (date of sales invoice)
- One (1) day – Payment (upon approval of the new registration transaction)
- Three (3) days – Receipt of the OR/CR, license plates, and RFID; owners to be informed of the availability of such; distribution
What are the fines and penalties for the late release of license plates and OR/CR?
Currently, there are different fines and penalties applied to motorcycle dealers and four-wheeled vehicle dealerships.
LTO Memorandum Circular No. 2021-2294 covers the ‘Rules on the initial registration of motorcycles and penalties for violations thereof.’ It imposes the following penalties on motorcycle dealerships that fail to complete the registration of units within the prescribed period:
- First offense – P20,000
- Second offense – P30,000 and a one-month suspension
- Third offense – P40,000 and a three-month suspension
- Fourth offense – P50,000, cancellation of certificate of accreditation, and blacklisting of the dealer.
In the first three cases, the accreditation of the dealership shall be deactivated from the LTO IT System until the penalties have been fully served.
Meanwhile, an LTO memorandum issued on January 6, 2023, covers the ‘Processing time from date of sale to release of plates and mandatory posting of the same at the showroom area of dealers.’ It imposes the following penalties on vehicle dealerships that fail to complete the registration of units within the prescribed period, based on LTO Administrative Order AVT-2014-023:
- First offense – P100,000
- Second offense – P500,000 and a suspension of up to six months
- Third offense – cancellation of certificate of accreditation, blacklisting, and cancellation of Certificate of Stock Reported (CSR), sales report, and registration if warranted
“Maging aral sana ito sa sa lahat ng car dealers na hindi nagtatapos sa pagbebenta ng mga sasakyan at motorsiklo ang kanilang obligasyon,” Mendoza said of the issued SCOs. “Dapat ay ibigay nila ang mga nararapat na serbisyo sa kanilang kliyente lalo na ang mga plaka at OR/CR dahil napakahalaga nito alinsunod sa mga batas at regulasyon ng ating bansa.”
Recently, the agency also deferred the implementation of new rules and formats governing the use of temporary and improvised license plates. As early as May this year, the agency said there is no more backlog of license plates for printing, at least for four-wheeled vehicles. It is now reminding vehicle owners to claim their license plates from dealerships (for brand-new units) or LTO offices (for replacement plates).
