Isuzu PH to collect refundable deposits for DTI Safeguard Duties
While some car companies have announced car companies have announced price increases due to the Department of Trade & Industry’s implemenation of new rules on Safeguard Duties on imported vehicles, Isuzu Philippines, just like Toyota Motor Philippines, will instead be collecting refundable deposits on top of the SRP of affected models.
This was announced by the car company yesterday and is set to be effective on March 1, 2021.
Affected models are the mu-X and D-MAX. It is not known if affected D-MAX units are of the currently available model or the upcoming next generation which is set to be launched on March 4, 2021. All Isuzu trucks and the Traviz utility van are exempted.
Customers purchasing a brand-new Isuzu mu-X will have to fork-out an additional Php 78,400 (inclusive of VAT) while those purchasing a brand-new Isuzu D-MAX will have to fork-out a larger amount of Php 123,200. This will be collected by the dealership where the purchase is being made together with the vehicle’s downpayment.
In the event that the DTI will impose a definitive duty rate, the deposit will be treated as additional payment to the vehicle. Otherwise, the Dealer will be refunding the deposit to the customer depending on the final amount of Safeguard Duty.
What is a Provisional Safeguard Duty?
The provisional safeguard duty is a tariff import duty imposed by the Bureau of Customs as per Custom Memorandum Order No. 6-2021 dated 01 February 2021 pursuant to the Administrative Order (DAO) No. 20-11 of the Department of Trade and Industry (DTI) on certain imported motor vehicles effective February 1, 2021.
- What Isuzu models are affected?
- What Isuzu models are exempted?
- What is the effect to the customer?
Effective March 1, 2021, a deposit will be collected by our authorized Isuzu dealerships to cover the provisional safeguard duty upon purchase of the covered vehicle as shown below. Our Sales Executive will provide further details on this.
- When does the customer pay the deposit?
The deposit will be collected during the down payment and an Acknowledgment Receipt will be issued by the dealer. This will be held in-trust for by the dealer until such time the government has finalized this provision.
- Will the provisional duty rates be permanent?
Depending on the results of the investigation, if the Tariff Commission determines there is a basis to impose safeguard duty, DTI will determine the definitive duty rate to be imposed.
- What happens to customer deposit?
In the event that the DTI will impose a definitive duty rate, the deposit will be treated as additional payment to the vehicle. Otherwise, the Dealer will be refunding the deposit to the customer depending on the final amount of Safeguard Duty.
- In case of a refund, what will the customer do?
To claim the deposit, customer or an authorized representative should only come to the dealer and bring the following:
If the customer is the one going:
- Customer Original Acknowledgment Receipt
- One Government-issued ID of customer
If representative is the one going
- Original Acknowledgment Receipt
- One Government-issued ID of customer
- One Government-issued ID of representative
- Signed and dated authorization from customer
