LTO to dealers: Show vehicle registration processing time or face fines

LTO signs memo mandating dealers to display registration processing time

The Land Transportation Office (LTO) has recently signed a memo mandating both motor vehicle and motorcycle dealers to prominently display in their showrooms the processing time of vehicle registration, from initial registration to the issuance of Certificate of Registration (CR) and Official Receipt (OR), including the release of plates.

“The display of vehicle registration processing time in their own showrooms will keep dealers on their toes to assure that they comply, and likewise allow the public that they have the power to report to the government any delays because as paying customers, they deserve to be served better,” explains LTO chief, Atty. Jay Art Tugade.

The memorandum listed the five steps, with the first one belonging to the client that should be processed in just one day, then the dealer will process the requirements and completes them in two to three days under the second step, and process the sales reporting and initial registration in one to two days for the third step. The LTO will then take care of registering the motor vehicle, release the CR and plate number to the dealer as the fourth step, and finally, in the fifth step, the dealer should inform or contact the owner to claim the OR/CR and the plate number once issued by the LTO.

Under the memorandum, dealers should display the processing time in a conspicuous area in their showrooms for the transacting public to see.

Likewise, the memorandum directs all LTO regional officials through their Regional Accreditation Committees (RACs) around the country to monitor strict compliance by submitting to the office of the LTO chief a monthly report on the number of issued plates per dealership, including those that may be found violating this memorandum that will cause the issuance of Show Cause Orders.

For MV dealers, non-compliance with this memorandum may merit appropriate sanctions under Section 9 of LTO Administrative Order No. AVT-2014-023, such as a P100,000 fine for the first offense. Motorcycle dealers, on the other hand, should pay penalties under Memorandum Circular 2021-2294 if they fail to register a motorcycle within a five-day period. However, failure to comply with step number 5 in the processing time shall incur penalties prescribed in the above-stated administrative order.

Since he began his administration, Tugade has advocated continuing to institute reforms in the agency, starting with his campaign to rid the agency of fixers and corrupt employees and to improve services to the public by streamlining several processes, particularly on vehicle registration. “We hope that these reforms will result in faster processes and ultimately, better customer service,” he added.