REPUBLIC ACT NO. 11698, April 15, 2022

AN ACT REGULATING THE USE AND OTHER ACTIVITIES RELATED TO VINTAGE AUTOMOBILES AND OTHER HISTORICAL, CLASSIC, OR COLLECTOR MOTOR VEHICLES, AND PROVIDING FOR THEIR EXEMPTION FROM THE STANDARDS AND RESTRICTIONS SET BY LAWS, AND REGULATIONS ISSUED AFTER THE DATE OF THEIR MANUFACTURE

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. — This Act shall be known as the "Vintage Vehicle Regulation Act."

SECTION 2. Declaration of Policy. — Section 14, Article XIV of the Constitution declares that the State shall foster the preservation, enrichment, and dynamic evolution of a Filipino culture based on the principle of unity in diversity in a climate of free artistic and intellectual expression. Section 16 of the same Article declares that the country's artistic and historic wealth constitutes the cultural treasure of the nation and shall be under the protection of the State which may regulate its disposition.

The State recognizes that motor vehicles are integral part of Philippine culture, embedded in its history and chronicles of government, transportation, industry, social life, and popular culture. The State acknowledges that surviving vintage vehicles, as well as their related tools, equipment, accessories, buildings, literature, and collectible ephemera, deserve and require sustainable conservation, and that motoring heritage aids contextualization, documentation, interpretation, and understanding of the development of the nation's way of life and how it continues to transition. Within this context, the preservation of vintage vehicles is in accord with policy of the State to preserve its heritage and patrimony.

The State recognizes the large and expanding international markets for the restoration of these vintage vehicles. The State is keenly aware that the country's unique conditions, the capability of its small and medium industries, and the quality of its human resource make it competitive in those markets. It is therefore the declared policy of the State to provide an environment that will encourage its entrepreneurs and industries to participate in those markets and permit its businessmen, technicians, and workforce to acquire the knowledge and skills necessary for the purpose. In furtherance of such policies, the State shall pursue the following objectives:

(a) Protect, preserve, enhance, and promote the nation's heritage by preserving vintage vehicles and in furtherance thereof permit the importation of such vehicles in historically correct condition;

(b) Establish and strengthen regulatory policies that encourage their preservation, maintenance, occasional use, and registration;

(c) Increase economic opportunities by creating conditions favorable to small and medium industries that may participate in the international markets for the restoration and repair of vintage vehicles and the manufacture of their spare and replacement parts; and

(d) Encourage tourism through the promotion of automobile tours, establishment of vintage vehicle or car museums, exhibits, vintage motorsports, and similar events.

SECTION 3. Coverage. — This Act shall apply to all aspects of the regulation of the importation and exportation, registration, and use of vintage vehicles.

SECTION 4. Definition of Terms. — As used in this Act:

(a) Authentic Spare Part refers to a replacement part, whether old or newly produced, that is identical in appearance and function to an original component installed in the vehicle or in vehicles belonging to the same model line as the vehicle at the time of manufacture, but not necessarily made of the same material, including chassis and monocoque shell and subframe replacements of the same pattern as the original. This will include spare parts from the manufacturer's stock intended for the later servicing or repair of vehicles of the same model line as the vehicle;

(b) Concours D 'Elegance or Concours refers to a vintage vehicle which condition is for exhibition or contest;

(c) Automobile Lineage Brand refers to the original manufacturer's name or latest brand name as a result of corporate merger or acquisition;

(d) Motor vehicle refers to any self-propelled vehicle designed to carry passengers or goods, including automobiles, pick-up trucks, vans, sports utility vehicles, Asian utility vehicles, and motorcycles. A trailer, caravan, or other vehicle intended to be towed by attachment to a motor vehicle shall be deemed a motor vehicle for purposes of this Act;

(e) Original components refer to parts of the vehicle, including the motor, chassis, and gearbox, that were originally installed by its manufacturer at the time of its production

(f) Restoration Mode or RESTOMOD refers to vintage car that has been restored but modified with modern parts and technology;

(g) Spare parts refer to component parts, sub-assemblies or complete assemblies, identical to or interchangeable with original components of a vintage vehicle, and accessories that are permitted to be installed on a vintage vehicle under Section 12 hereof; and

(h) Vintage vehicle refers to a motor vehicle, whether powered by an internal combustion engine, electricity, a combination of both, or other means, that is at least forty (40) years old reckoned from the date of manufacture, whose chassis, engine, steering assembly, and suspension assembly are either original or authentic and whose body has not been altered in general appearance, subject only to the exceptions in Section 12 hereof. It shall exclude replicas and reproductions of vintage vehicles.

SECTION 5. Exemption. — In recognition of their small number, their expected limited use, and the historical fact that the technology available at the time of their manufacture will not permit them to meet modern standards, vintage vehicles registered under this Act shall not be required to meet clean-air, anti-pollution, safety, road-use, and other standards that were not in force at the time of their manufacture, either as a condition for their registration and use on public roads or otherwise, the provisions of Republic Act No. 8749 or the "Philippine Clean Air Act of 1999" and any other law or regulation notwithstanding. However, vintage vehicles manufactured after December 31, 1967 must be fitted with safety belts as mandated by Republic Act No. 8750 or the "Seat Belts Use Act of 1999."

SECTION 6. Importation. — Vintage vehicles, whether concours, RESTOMOD and/or for repair or restoration, authentic components, original or replica body shells, engines and transmissions, spare parts and accessories may be imported into the Philippines by any person or entity.

SECTION 7. Exportation. — A vintage vehicle may be exported without restriction: Provided, That in the interest of preserving the cultural and historical heritage associated with vintage vehicles, the exportation of vintage vehicles that have historical significance to the country, such as vehicles of Presidents of the Philippines, as certified by the National Historical Commission of the Philippines (NHCP) in accordance with rules and guidelines, shall be prohibited, except for the purpose of repair or restoration abroad as authorized by the NHCP.

SECTION 8. Valuation for Tariffs, Import Duties and Other Taxes. — The Bureau of Customs (BOC), for purposes of valuation for tariffs, import duties and other taxes of imported vintage vehicle, shall differentiate concours, RESTOMOD and for restoration vintage vehicle. Restoration mode and for restoration shall have a lower valuation against concours for the same make and model of vintage vehicle. For purposes of this section, for restoration vintage vehicle shall mean a vintage vehicle, whether containing the important parts such as engine, transmissions, chassis and body or just the body shell, which is for further modification or restoration in the Philippines.

SECTION 9. Availment of Fiscal and Tax Incentives. — Restoration shops and companies, which are in the business of importation of vintage vehicles for restoration in the Philippines and for export of the same shall be eligible to avail themselves of the fiscal and tax incentives provided in  Republic Act No. 11534, otherwise known as "An Act Reforming the Corporate Income Tax and Incentives System, Amending for the Purpose Sections 20, 22, 25, 27, 28, 29, 34,40, 57, 109, 116, 204 and 209 of the National Internal Revenue Code of 1997, as Amended, and Creating Therein New Title XIII, and for Other Purposes",  and other applicable laws. The restoration shops and companies shall comply with all the requirements provided for by law in the availment of fiscal and tax incentives.

SECTION 10. Right-hand Drive Vehicles. — The prohibition on the importation, registration, and use of right-hand drive vehicles shall not apply to vintage vehicles manufactured on or before December 31, 1970 or to vintage vehicles intended principally for racing or other motorsport.

SECTION 11. Period Specification. — A vintage vehicle registered or otherwise benefiting under this Act shall be preserved and maintained in a historically correct condition, which, for purposes of this Act and subject to Section 12 hereof, shall mean that (a) its chassis, engine, steering, and suspension shall not have been replaced or modified except with original or authentic components, and (b) its body has not been changed in general appearance.

SECTION 12. Permitted Modifications. — The following modifications shall be permitted on vintage vehicles:

(a) Modifications of a type that can be demonstrated to have been made when the vintage vehicle was in production or within ten (10) years of the end of production;

(b) Modifications to brakes, suspension, axles, and running gear to improve efficiency or safety;

(c) Use of carburetors or fuel injection systems not original to the vintage vehicle to improve efficiency, economy or environmental performance;

(d) Installation of a new, modern engine of the same brand or manufacture and of the same general specification as the engine original to the vintage vehicle or vehicles belonging to the same historic model line or automobile brand lineage as the vintage vehicle; and

(e) Installation of after-market accessories and equipment, such as radios, air-conditioning, and directional lights, to permit the convenient or safe use of the vehicle.

SECTION 13. Limited Use. — A vintage vehicle that (a) is imported after the effectivity of this Act, or (b) is registered under this Act, or (c) otherwise benefits from any exemption or privilege under this Act shall be used only for personal purposes and/or leisure driving. A vintage vehicle shall in no event be used for commercial purposes, except only for motion pictures, advertisements, pictorials, weddings, and motorcades. In no event shall a vintage vehicle be used as a public utility vehicle or for the commercial transport of persons or goods.

SECTION 14. Registration. — All vintage vehicles (a) imported after the effectivity of this Act or (b) benefiting from any exemption or privilege under this Act shall be registered as a vintage vehicle with the Land Transportation Office (LTO) in order to benefit from the provisions of this Act. Such registration shall be valid for three (3) years. The LTO is not precluded to provide a longer validity of registration. For vintage vehicles which are not regularly used, on permanent exhibit or in museums, the LTO shall provide a system for onsite registration or where the vintage vehicle parked or exhibited, and may impose additional fees for this purpose. In the case of vintage vehicle on permanent exhibit or in museums, the registration with the LTO is at the option of the owner or museum if the vintage vehicle is no longer in running condition.

SECTION 15. License Plate. — The LTO shall issue to each registered vintage vehicle license plates that contain the words "vintage vehicle" in addition to the usual letters and numerals appearing in license plates. The model year or year of manufacture shall be indicated on any appropriate part of the plate.

SECTION 16. Applicability of Prohibitions. — The prohibitions set out in this Act shall not apply to motor vehicles that are not registered under this Act or which do not seek to benefit from any exemption or privilege under this Act. Such motor vehicles shall be subject to all laws and regulations governing the registration and use of motor vehicles in general, including all air emission, safety, roadworthiness and other standards.

SECTION 17. Inspection. — A vintage vehicle applying for registration or the renewal of its registration under this Act shall be subject to inspection in compliance with Sections 11 and 12 hereof and, if manufactured after December 31, 1975, in compliance with the minimum safety and roadworthiness guidelines established by the LTO in consultation with stakeholders. In no event shall the standards for safety inspection for vintage vehicles registered under this Act exceed or be more stringent than those that were in force at the year the vehicle was manufactured.

As in the case of any motor vehicle and in the interest of public safety and responsible ownership, the LTO shall conduct random inspection of registered vintage vehicles on public roads and highways.

SECTION 18. Lost Papers. — (a) A vintage vehicle that has no certificate of registration, official receipt of registration payment, or other evidence of ownership or registration may be registered as a vintage vehicle under this Act, subject to the submission by the applicant of (1) a notarized affidavit that states that the applicant is the owner, is in possession of the vehicle, knows of no claim on the vehicle, and which describes the circumstances by which the applicant came to acquire the vehicle, (2) clearance from the relevant police agency that there is no record of the vehicle having been stolen, and (3) payment to the LTO of a one-time reconstitution fee of Ten thousand pesos (P10,000.00) in addition to the regular fees and charges for the registration of vintage vehicles.

(b) Publication of Notice of Application for Registration. — The LTO shall publish a notice of the application in a newspaper of general circulation once a week for three (3) consecutive weeks at the expense of the applicant and on its website within three (3) days from receipt of each complete application, describing the vehicle and stating that the applicant has applied for registration. If the LTO receives no objection to the application or claim by third parties on the vehicle within three (3) months from the date of publication, it shall register the vehicle as a vintage vehicle under this Act. The registration of a vintage vehicle shall be without prejudice to rights of persons who may claim ownership of the vintage vehicle under applicable laws.

(c) Date of Manufacture. — The date of manufacture of a vintage vehicle with lost, incomplete, or inconsistent papers may be ascertained through the car manufacturer or the assistance of vintage car associations or interest groups. If details such as the exact date of manufacture cannot be ascertained, the registration paper and entry in the database of the LTO shall indicate this fact and an annotation that the "date of manufacture is not available but has been estimated by [name of authority/association]."

SECTION 19. Vintage Vehicle Restoration Database; Education. — (a) Recognizing the historical and cultural value and contribution of vintage vehicles to employment and the industry in general, the LTO shall establish and maintain a national database that lists and describes vintage vehicles in the country, which it shall share with the NHCP for purposes of Section 7 hereof.

(b) To support the local restoration industry, the LTO shall include in its database authorized and licensed companies and shops engaged in the repair or restoration of vintage vehicles or in the manufacture of spare and replacement parts for vintage vehicles, private sector associations and interest groups, and relevant government agencies, such as the Technical Education and Skills Development Authority, and actively engage them in strengthening opportunities and programs for skills and technological development in these and related industries.

(c) The LTO shall promote and encourage the conscientious, correct and safe maintenance of vintage vehicles through consistent information and education campaigns and other means.

SECTION 20. Implementing Rules and Regulations. — The LTO shall, after public hearings and consultation with concerned sectors of society, including at least five (5) vintage vehicle owners or representatives from owners' groups or associations, formulate and issue the necessary rules and regulations for the effective and speedy implementation of this Act within sixty (60) days of its effectivity. Likewise, the LTO shall consult with vintage vehicle owners or representatives from owners' groups or associations in the development of other relevant policies and issuances. Any draft issuance or policy shall also be circulated electronically via email and other social media channels for meaningful engagement of stakeholders especially owners, collectors, restorers, mechanics, and enthusiasts.

SECTION 21. Separability Clause. — If any provision of this Act is declared invalid or unconstitutional, such parts not affected by such declaration shall remain in full force and effect.

SECTION 22. Repealing Clause. — All laws, orders, rules and regulations and other issuances, or parts thereof, which are inconsistent with this Act are hereby repealed, amended or modified accordingly.

SECTION 23. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.ChanRoblesVirtualawlibrary

Approved,

(SGD.) LORD ALLAN JAY Q. VELASCO           Speaker of the House of Representatives

(SGD.) VICENTE C. SOTTO III         President of the Senate

This Act was passed by the Senate of the Philippines as Senate Bill No. 2493 on January 31, 2022 and adopted by the House of Representatives as an amendment to House Bill No. 9884 on February 2, 2022.

 

(SGD.) MARK LLANDRO L. MENDOZA Secretary General House of Representatives

(SGD.) MYRA MARIE D. VILLARICA         Secretary of the Senate

Approved: Lapsed into law on April 15, 2022 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.|||

(SGD.) RODRIGO ROA DUTERTE
    President of the Philippines