Toyota Motor PH to Offer Refundable Deposits of Up to P 123k Due to Safeguard Duties

With the DTI implementing the Safeguard Duty on imported vehicles, Toyota Motor Philippines is taking a surprisingly conservative approach by offering a refundable deposit to select vehicles effective March 1, 2021.

Unlike other makes such as Geely and GAC Motor which have each announced price increases due to the safeguard tariffs, Toyota will instead take a deposit to cover the provisional safeguard duty. Depending on the results of the DTI’s investigation, this deposit may end up being refunded to the customer.

Toyota vehicles covered by the safeguard duties are the following:

• Toyota 86
• Toyota Wigo
• Toyota Avanza
• Toyota Camry (G variant only)
• Toyota Corolla Altis
• Toyota Corolla Cross
• Toyota Yaris
• Toyota FJ Cruiser
• Toyota Fortuner (G and V variants only)
• Toyota RAV4
• Toyota Hilux
• Toyota Hilux Cab & Chassis
• Toyota Hiace Cargo

These vehicles will carry a deposit of P 78,400 (inclusive of VAT) or P 123,200 (inclusive of VAT for Hilux, Hilux Cab & Chassis, and Hiace Cargo).

Vehicles exempted are those manufactured locally, light duty vehicles with seating capacity of ten or more, or whose Freight on Board (FOB) prices exceed USD 25,000 for passenger cars and USD 28,000 for light commercial vehicles. This means that the Toyota Vios, Innova, GR Supra, Camry (V variant only), Fortuner (Q and LTD variants only), Land Cruiser, Land Cruiser Prado, Hiace, Alphard, and Coaster are not covered.

Check out the full Safeguard Tariff FAQ below:

What is a Provisional Safeguard Duty?

The provisional safeguard duty is an import duty imposed by the Bureau of Customs as per DTI Department Administrative Order(DAO) No. 20-11 on certain imported motor vehicles effective February 1, 2021.

What models are affected?

This will be a fixed amount, inclusive of VAT, on top of the vehicle SRP:

All Passenger Cars (Less than 10-seating capacity)

• Toyota 86
• Toyota Wigo
• Toyota Avanza
• Toyota Camry (G variant only)
• Toyota Corolla Altis
• Toyota Corolla Cross
• Toyota Yaris
• Toyota FJ Cruiser
• Toyota Fortuner (G and V variants only)
• Toyota RAV4

Light Commercial Vehicles (Less than 10-seating capacity)

• Toyota Hilux
• Toyota Hilux Cab & Chassis
• Toyota Hiace Cargo

What models are exempted?

Vios, Innova, Prius, Supra, Camry V, Fortuner LTD and Q, Prado, Hiace, Alphard. Coaster

What does this mean for the customers?

Effective March 1, 2021, a deposit will be collected from customers to cover the provisional safeguard duty upon purchase of the covered vehicle as shown below. Toyota will not have a price increase because of this provisional safeguard duty. 

• All Passenger Cars (less than 10-seating capacity) - P  78,400 (inclusive of VAT)
• Light Commercial Vehicles (less than 10-seating capacity - P 123,200 (inclusive of VAT)

When do I have to make the deposit?

The deposit will be collected during the down payment. This will be held in trust for the customer and an Acknowledgment Receipt will be issued.

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 my deposit?

In the event that the DTI will impose a definitive duty rate, the deposit will be treated as additional payment for the vehicle. Otherwise, the Dealer will be refunding the deposit to the customer.

What do I need to do in case there is a refund?

To claim the deposit, customer or an authorized representative should only come to the dealer and bring the following:

• One (1) valid government-issued ID. If a representative will claim, representative should also have one (1) valid gov’t-issued ID.
• Signed and dated authorization letter from customer is required from the representative.

Source: Car Guides PH