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(NAR) VOL. 29 NO. 1/ JANUARY - MARCH 18

[ MEMORANDUM CIRCULAR NO. 2018-04, March 20, 2018 ]

IMPLEMENTATION OF THE MOTOR VEHICLE DEVELOPMENT PROGRAM (MVDP) UNDER EXECUTIVE ORDER NO. 156



Adopted: 26 February 2018
Date Filed: 20 March 2017

Please be informed that the Board, in its meeting of 14 February 2018, issued the following resolution:

Resolution No. 06-24, Series of 2018

RESOLVED,  that the Board AFFIRMS  the following existing definition of terms based   on   existing   laws,   rules,   and   regulations   for   the   guidance   of   the implementation of the Motor Vehicle Development Program (MVDP):
  1. Completely Knocked-Down (CKD) Parts and Components shall refer to parts and components that are either locally produced or imported for assembly purposes  by registered  participant  of the MVDP. The imported  CKDs shall refer  to  subparts/parts  and  sub-assemblies/assemblies/components  minus local parts and components, as may be determined by BOI.

  2. Knocked-down  (KD) Parts and Components shall refer to parts forming part of the CKD pack that may have been left out of the CKD importation. They may also be warranty parts (replacement of defective parts or wrong components)  or  parts  of the  CKD  minus  the  components  that  are  locally sourced.
For  the  avoidance  of  doubt,  the  manufacture  and/or  assembly  operation  of MVDP participants shall refer to the basic assembly of vehicle, whether in CKD or  KD  condition.  This  shall  involve  at  least  the  basic  assembly  processes  of welding,  painting,  trimming,  and  quality  testing/inspection  pursuant  to  Section 2.1.3  of  Executive  Order  No.  156,  Providing  for  a  Comprehensive  Industrial Policy and Direction for the Motor Vehicle Development Program and its Implementing  Guidelines and Section 2 (d), Article 1 of EO No. 877-A, s. 2010, otherwise known as The Comprehensive Motor Vehicle Development Program.

26 February 2018, Makati, Philippines.

By the Authority of the Board:

(SGD) DR. CEFERINO S. RODOLFO
DTI Undersecretary  and BOI Managing Head
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