Mazda starts collecting deposits for import tax

MANILA, Philippines — Mazda Philippines is collecting deposits for select vehicles covered by the provisional safeguard duties imposed by the Department of Trade and Industry (DTI).

In an advisory, Mazda Philippines said it is collecting a security deposit amounting to P70,000 exclusive of value-added tax (VAT) for every purchase of the Mazda3 (sedan premium, sportback premium and speed variants) and all variants of the MX-5 starting this month.

“No security deposit is required on the Mazda2, Mazda3 Sedan Elite and Sportback Elite variants, Mazda6, CX-3, CX-30, CX-9, and BT-50, as the current stocks arrived in the country prior to Feb.1,2021,” Mazda Philippines said.

Mazda Philippines is collecting the security deposit following the DTI’s imposition of the provisional safeguard duties amounting to P70,000 for select passenger car imports and P110,000 for light commercial vehicle imports.

The provisional safeguard duties, which took effect on Feb.1, will be in place for 200 days.

The provisional safeguard measures are in place as the DTI’s evaluation of the petition from the Philippine Metalworkers’ Alliance showed the country’s increased vehicle importation is causing injury to the domestic motor vehicle manufacturing industry which suffered in terms of lower market share, sales and employment.

At present, the Tariff Commission (TC) is investigating the case.

If the TC decides there is no basis to impose safeguard duties, Mazda Philippines said the deposit would be returned to the customer.

However, in case the TC decides to make the safeguard measures definitive and in place for a longer period, the customer would have to pay the corresponding additional VAT on the security deposit.

Other automotive firms that are also collecting deposits from customers are Toyota Motor Philippines Corp., Isuzu Philippines Corp., Mitsubishi Motors Philippines Corp. and Honda Cars Philippines Inc.

The Safeguard Measures Act allows the government to provide emergency relief to the domestic industry when it is seriously injured by a sudden and sharp increase in imports of like or directly competitive product.