Republic of the Philippines Department of Transportation LAND TRANSPORTATION OFFICE. National Capital Ragion +#20 G. Araneta Avenue, Quezon City REGIONAL MEMORANDUM TO Chief of District /Extension Offices, Employees Concerned DATE : 3 August 2018 SUBJECT : WAIVING OF STENCILING DURING MOTOR VEHICLE INSPECTION FOR CERTAIN TRANSACTIONS SITUATION: In the present practice, all motor vehicles/motorcycles (MV/MC) for registration are being required to undergo the stenciling process. In most cases due to limited number of personnel at the field offices, stenciling is performed by the so called “stencil aides” who are not employees of LTO. Oftentimes, it is during the stenciling process where fixing activities start such as insurance and expeditious facilitation for a fee. Further, prior to stenciling, the MV/MC owner will have to wait for at least 20-30 minutes for the engine to cool to be able to stencil the engine and chassis as a pre-requisite for the inspection process. POLICY: ‘Asa general policy, MV/MC inspection is required for all transactions. In line with Republic Act No. 11032, otherwise known as the Ease of Doing Business and Efficient Delivery of Government Service Act of 2018 (EODB-EGSD), stenciling of motor vehicles’ engine and chassis numbers shall no longer be performed to brand new MV/MC, plain renewal transactions of private, government, diplomatic including other exempt motor vehicles, and change color transactions EXCEPT FOR THE FOLLOWING TRANSACTIONS: a) Renewal registration of all For Hire motor vehicles including motorized tricycles; b) New and renewal registration of Rebuilt or Assembled motor vehicles; c) New and renewal registration of second hand imported motor vehicles; d) Miscellaneous transactions such as: Transfer of Ownership; Change Body Design and Revision of Gross Vehicle Weight; Change Engine; Change Chassis; Duplicate CR/CRE; Change Classification; Duplicate/Replacement Plates; Request for stamping and re-stamping of engine or chassis numbers; PAPA eR re e) Registration of motor vehicle with pending apprehension; f) Registration of Stolen and recovered MV/MC; and Page 1 of 5g) Other suspicious transaction in which the MV/MC inspector may upon his/her sound judgment may require actual stenciling. ADDITIONAL REMINDER: For registration of new motor vehicles, the stencil of engine and motor numbers shall be retained as part of the Sales Invoice. This will serve as an integral part of the mother file of the motor vehicle. DEFINITION OF TERMS: a. Renewal registration of all For Hire motor vehicles including motorized tricycles. For Hire vehicles include public utility jeepneys, Asian Utility Vehicles (AUVs), Taxis, Transport Network Vehicle Service, Trucks and Trailers requiring confirmation of Franchise issued by the LTFRB. The term For Hire include motorized tricycles that were issued franchise by the Local Government Units to operate as public transport vehicle. Stencil is necessary to periodically check if change occur in the engine and/or chassis of for hire vehicles prior to renewal registration. b. New and renewal registration of Rebuilt or Assembled motor vehicles. Rebuilt or assembled motor vehicles are locally assembled motor vehicles from new or used components parts such as engine and or chassis by duly accredited motor vehicles assemblers. Stencil must be included in the MVIR as a requirement in the issuance of Certificate of Compliance for Emission Standards (CCES) in the Rebuilt or Assembled Motor_Vehicles. ©. New and renewal registration of second hand imported motor vehicles. Second-Hand Imported Motor Vehicles as defined in DENR Administrative Order No. 2000-81 means any used or second-hand motor vehicle imported and registered in the country of origin and are considered subject to new registration in the Philippines. Stencil in the MVIR is required to ascertain the identity of the new registered imported vehicles and periodically check if change occur in the engine and chassis of vehicle prior to renewal registration. d. Miscellaneous transactions such as: 1. Transfer of Ownership change in the ownership of vehicle by virtue of the following documents and circumstances: Deed of Sale for MVs purchased from one person/company to another person/company; Deed of Donation duly signed by the Donor and the Donee; Acquisition of MV through Public Bidding conducted by government entity as supported by the Notice of Award together with General Form 17A (Inventory and Inspection Report) duly noted by COA, Certificate of Sale or Deed of Sale and Official Receipt of Payment of the auctioned property. a. Page 2 of 5Page 3 of 5 d. MVs obtained at Public Auction before a Notary Public the virtue of a mechanic lien, or the MVs obtained by the Mechanic as a guaranty for the MV owner’s obligation for failure to pay the labor and materials for the repair of the subject vehicle. MVs acquired through extra judicial/judicial settlement of estate of deceased person, based on the Deed of Extra Judicial Settlement of Estate in case the deceased owner is survived by two (2) or more heirs or Affidavit of Sole Adjudication if the deceased is survived by only one (1) heir. MVs acquired through judicial settlement of the estate of deceased person based on the Court Decision on the ownership of the motor vehicle. g. Transfer of underbond MVs based on the Cancellation of Bond from the Bonds Division, Bureau of Customs (BOC), Certificate of Payment and the corresponding Official Receipt of Payment; MVs obtained through a Sheriff's Certificate of Sale issued under an Extra Judicial Foreclosure sale. ‘The transfer of ownership must be supported by Sheriffs Certificate of Sale, Sheriff's Return, Cancellation of Chattel Mortgage by the Register of Deeds and poof of posting of notice of sale at public auction at least ten (10) days before the sale in at least two (2) public places in the locality where the mortgagor property is to be sold. Extrajudicial Foreclosure is a proceeding conducted by a Sheriff upon written request of the creditor/ mortgagee to enforce his mortgage rights under a chattel mortgage contract as against the debtor/ mortgagor under the provision of Act No. 1508, otherwise known as the Chattel Mortgage Law. Sheriff's Certificate of Sale is a statutory instrument, signed by the Sheriff, stating what took place at the execution or auction sale , conveying upon the purchaser, all the rights which the debtor has in such property on the day that the execution or attachment was levied. Sheriff's Return is an offical statement, under seal by the Sheriff of his acts under a writ or authority in obedience to its directions and in conformity with law, and must show compliance with such directions and requirements. MVs obtained through a Sheriffs Certificate of Sale under a Judicial Foreclosure Sale, pursuant to the Court Decision on the ownership of the vehicle, certification that the judgment/decision has become final and executory, Sheriff's Certificate of Sale, Sheriff's Return, Cancellation of Mortgage and Official Receipt from the Registry of Deeds. Judicial Foreclosure is a proceeding instituted by a creditor/ mortgagee in a competent court to enforce or prosecute his rights against a debtor/ mortgagor under a chattel mortgage contract, i. MVs obtained through an Extra Judicial Foreclosure Sale Conducted before a Notary Public based on Certificate of I FrPage 4 of 5 Sale for the ownership of the vehicle, Notary Public’s Return, Cancellation of Chattel Mortgage and Official Receipt of payment by the Registry of Deeds based on Notary Public's Return, proof of posting of Notice of Sale at public auction for at least ten (10) days before the sale and proof of written notice to the mortgagor for at least ten (10) days before the sale; MVs obtained through a Sheriff's Certificate of Sale pursuant to a Money Judgment which has become final to be supported by duplicate original copy of the Court Decision, certification by the Clerk of Court that the judgment /decision has become final and executory, duplicate original copy of the Writ of Execution under the seal of Court, Sheriff's Certificate of Sale and Sheriff's Return. Writ of Execution is a direct command of a court of competent jurisdiction to the Sheriffto carry out the mandate of the writ issued upon a judgment which has become final MVs purchased from Diplomatic/Tax Exempt Personnel requiring endorsement from the DFA and Certificate of Payment and Official Receipt of tax payments from the Bureau of Customs. iF Ir The stencil in the MVIR is required whenever there is a transfer of ownership of the vehicle to check the correctness of the engine and chassis numbers in the Certificate of Registration and other required documents. 2. Change Body Design is when a motor vehicle originally described in the Certificate of Registration reconfigures the design and or make of the body. Stencil in the MVIR is required to ensure that the engine and chassis numbers are still the same or were not altered during the process of changing its design. Revision of Gross Vehicle Weight (GVW) is a supplementary transaction in case the GVW increased/decreased due to the change in body design. Change Engine is replacement of engine with new engine component or engine from previously registered motor vehicles. Change Chassis is a replacement of chassis with anew chassis. or chassis from previously registered motor vehicle. Duplicate Certificate of Registration or Certificate of Registration Encumbered (CR/CRE) is obtained in case of loss of the original CR/CRE to be supported by a notarized Affidavit of Loss and at least two(2) photocopy of valid government issued IDs. For CRE, a Certificate of Conformity6. from the financing company is required or Release of Mortgage, whichever is applicable. The stencil in the MVIR is necessary to ensure that the details of the Duplicate CR/CRE is the same as the previously issued. Change Classification are transactions such as Private to For Hire and vice versa, Private to Government and vice versa, Diplomatic to Private and vice versa. The stencil in the MVIR is necessary to ensure that there are no other changes in the CR except its classification. Duplicate /Replacement Plates in case of loss or mutilation of the license plates. The stencil in the MVIR is necessary to ensure that the motor vehicle is one and the same unit being applied for duplicate plate. . Request for Stamping and Re-stamping of Engine or Chassis Numbers. Stamping is the assignment and engraving of new engine/chassis serial numbers. Re-Stamping is re engraving of the originally/manufacturer’s registered engine/chassis serial numbers. The stencil in the MVIR is the specimen proof of the engraved engine/chassis serial numbers. ¢) Registration of motor vehicles with pending apprehension, are required to be inspected at the South/North Motor Vehicle Inspection Center to determine if the defect or the violation was already corrected. Stencil is necessary in the MVIR to determine if there are no other changes done in the engine or chassis of the vehicle. f) Registration of Stolen/Recovered motor vehicles, must have a complete details of the vehicle in the MVIR including stencil to ensure that the recovered vehicle being registered is the same as the reported stolen one. g) Other suspicious transactions, are instances when there are visual signs tampered motor or chassis, fraudulent documents presented, physical appearance does not match the entries in the OR and CR, etc. For strict compliance. fA ATTY. CLARENCE V. GUINTO, CSEE Regional Director Page 5 of 5