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1.         COVERAGE — All importers of used motor vehicles shall be required to secure a Motor Vehicle Inspection Certificate (MVIC) from a duly accredited DOTC-LTO Inspection/Testing Service Center as Alternate Inspection/Testing Sites, prior to release from the Bureau of Customs custody and/or major ports of entry in the Philippines.  The Certificate shall be used as special permit to travel and ultimately for LTO initial/first registration.  This shall be required in areas where accredited service shops as alternate inspection/testing sites are located.

2.         ACCREDITATION. — Any inspection/testing shop, which is strategically situated within the major ports of entry, can apply for accreditation with the Assistant Secretary of the Land Transportation Office.  The Committee of Accreditation upon receipt of the application for accreditation shall ascertain and verify the correctness and truth of the supporting documents in the application form.  The Committee shall likewise conduct an ocular inspection of the applicant's establishment, equipment, instruments, and gadgets, essential and necessary for adequate inspection work, and to determine their adequacy to perform efficiently and adequately in the inspection/testing of used-imported motor vehicles.  An accreditation permit shall be issued to the qualified applicant and passed the evaluation on the degree by which they have met the standard requirements.  The permit shall be valid for one year from the date of issuance, subject to renewal upon compliance with requirements.

3.         DOCUMENTATION. — The following documents shall be required to support application for accreditation (duly notarized/authenticated in case of photo copy documents):

1.      Securities and Exchange Commission (SEC) Certificate of Registration, Article of Incorporation and By-Laws;

2.      Current Mayor's Permit of the place of business of the corporation/inspection shop indicating the total area of the establishment;

3.      Latest Income Tax Return of the company;

4.      Latest Audited Financial Statement by a CPA, with paid-up capital of not lower than Php 50M;

5.      SSS Certificate of Membership;

6.      Department of Trade and Industry Accreditation or Board of Investment Registration;

7.      Lay-out Plan with Picture of establishment, equipment, instruments, gadgets;

8.      Proof of Ownership of Site or Lease Contract, whichever is applicable;

9.      Bio-data of Principal Officers;

10.    Board Resolution Authorizing application and designation of duly authorized representative officer/signatory.

11.    BIR Registration certificate.

4.         FILING FEE. — A filing fee of Php 1,000 plus Php 10.00 LRF shall be paid by the applicant to the Accreditation Committee who shall in turn issue a POS for payment at the LTO collecting unit for the issuance of the required OR.  This fee shall not be refundable.

5.         ACCREDITATION FEE. — An amount of Php 5,000.00 shall be collected as accreditation fee and upon approval of the certificate of Accreditation by the LTO Assistant Secretary.

6.         INSPECTION SITE AREA REQUIREMENT — The inspection shop should have a minimum area of 1,500 sq. meters for 2 lanes — one for light motor vehicles and the other for heavy motor vehicles. However if the equipment installed is of universal type, one lane will suffice.

7.         TESTING EQUIPMENT REQUIREMENT — The station should be equipped with the following (minimum) motor vehicle testing/inspection equipment:

Gas Emission Tester duly tested/calibrated by DENR which will be used to conduct the following tests:

EMISSION TEST:

A.        Gasoline

a.    Chassis Dynamometer

b.    5 gas analyzer (HC, CO, CO2, O2, Nox) NDIR Type

c.    Able to check a 2-cycle (MC), 4-cycle, and special type engines

d.    Meet the standards and requirements specified in the Clean Air Act (RA 8749) and its implementing rules and regulations.

B.        Diesel

a.    Opacity meter using a Lug down test with the same chassis dynamometer used for testing gasoline vehicles

b.    Meet the requirements of the Clean Air Act and its Implementing Rules and Regulations.

SAFETY TEST:

a.    Chassis, Dynamometer

b.    Pit with Pneumatic Lifter or its equivalent for underchassis inspection.

c.    Computerized Brake Tester

d.    Front and Rear Axle Load Meter

e.    Side slip Tester

f.     Lights Luminosity and Detection Tester

g.    Suspension and Shock Absorber Tester.

7.         PERSONNEL TRAINING REQUIREMENT — Inspection personnel of accredited inspection shops should be a duly LTO Certified Trained personnel who are technically competent in the procedures and methods of inspection of motor vehicles.

8.         TESTING PROCEDURE. — Standards and methods of inspection to be implemented by the accredited inspection stations on used-imported motor vehicles shall include the following, based on or adopted from LTO Administrative Order AO-91-005 Sections 6-20 as follows.

A.        Standards and Methods of Inspection to Establish Identity and Construction

a.         Identity and Construction.

a.1     The chassis number of the motor/engine are not tampered or show no stop sign of tampering;

a.2     The motor/engine and chassis number of the motor vehicle is the same as the chassis number appearing in the application for inspection/testing;

b.         Length, Width and Height — No motor vehicle operating as a single unit shall exceed the following dimensions:

b.1    Overall length:

Freight vehicle with two axles — ten (10) meters

Passenger vehicles with two axles — eleven (11) meters

Vehicles with 3 or more axles — fourteen (14) meters

b.2    Overall Width — two and five tenths (2.5) meters

b.3    Overall Width — four (4) meters

c.         Frame and Body of the Vehicle — the frame of the motor vehicle consist of two long metal pieces, one on each side running through the length thereof, and joined at the front and rear by cross members.  Frames vary in type and construction depending on the make of the vehicle.  There are cars where the frame is a part of the floor board of the body. In these cases, there is usually a short stub frame at the extreme front and back of the car to support the suspension.  The latter is called the integral frame and body construction.

The frame and body of the vehicle shall comply with the following requirements:

c.1    The frame and body shall be so secured that they may fully withstand the operation and must not have damage due to corrosion, wear and tear;

c.2    The body shall be so firmly fixed to the frame that it may not loosen by vibration, impact, etc.

c.3    The body of a motor vehicle shall be free from any sharp edge or rotating protrusion that my endanger people and other vehicles in the highway.

d.         Riding Accommodation — Motor vehicles provided with passenger compartment shall comply with the following requirements;

d.1    The passenger compartment shall be so constructed that it shall insure safe boarding and not cause the passengers to fall off or stumble by vibration, impact, etc.

d.2    The driver and passenger compartments shall be so constructed as to allow necessary and sufficient ventilation.

d.3    Seats shall be provided for riding accommodation and should be fully upholstered for passenger comfort.

d.4    The driver's seat shall be so constructed that the driver shall have a full view necessary for driving, and that he can control the operation of the vehicle without being obstructed by passenger of cargoes.

d.5    The passenger compartment shall be equipped with bright white colored light.

d.6    The floorboard shall be in such condition as not to cause the passenger to fall down from the motor vehicle and cause the dust, water and dirt to get into the passenger compartment.

d.7    All motor vehicles must have doors that easily open and close and must be equipped with door glass that can easily be rolled open and close.

d.8    All motor vehicles must have seatbelt in accordance with RA 8750 otherwise known as the Seat Belts Act of 1999 or its equivalent.

e.         Goods-Loading Accommodation — The goods loading accommodation of a motor vehicle shall be so secured and constructed that it shall be safe and reliable loading of goods.

B.        VISUAL CONFIRMATION TEST OF LIGHT REFLECTORS, REAR-VIEW MIRRORS, WINDSHIELD WIPERS AND TIRES — Through the ocular inspection, the physical condition of the lamps reflectors, rear-view mirrors, windshield wipers and tires shall be determined.  The proper operations of the wipers shall likewise be actually tested.

a.      Clearance Light — No motor vehicle (except two-wheeled motor vehicles without sidecar and mini sized motor vehicles with a maximum speed of less than 20 kph) shall be provided with clearance lamps each side at the front. Clearance lights shall comply with the following requirements:

a.1     The color of the clearance light shall be white, light yellow or amber,

a.2     Clearance light shall be mounted symmetrically on the left and right portion of the motor vehicles.

b.         Number Plate Light — Motor vehicles shall be provided with a number plate light at the rear so that it may illuminate the number plate with white light.  The number plate light shall be so wired that it may not be put odd at the driver's seat or that it will be turned on whenever the headlights or clearance lights are turned on.

c.         Tail Lights — The rear of the vehicle shall be equipped or provide with red tail lights on both sides visible at least one hundred (100) meters from the rear of the vehicle except in cases of two or three-wheeled vehicles where only one tail light shall be necessary.

d.         Parking Lights — All motor vehicles, except two-wheeled or three-wheeled vehicles with or without side car and trailers, shall be provided with parking lights on each side at both the front and rear.

Where a tractor and trailer are coupled, the unit resulting from the combination of the vehicles shall be provided with parking lights in accordance with the preceding paragraph.

The parking lights shall comply with the following requirements:

d.1    The parking lights at the front and rear shall be clearly visible at night at a distance of one hundred (100) meters.

d.2    The parking lights shall be so wired that they may be turned on only when the vehicle is not in operation;

d.3    The color of the front parking lights shall be yellow or amber.

d.4    The rear parking lamps shall be colored red.

e.         Rear reflex reflectors — Motor vehicles shall be provided with the rear reflect reflectors on each side at the rear which shall likewise be visible at night at least one hundred (100) meter away.

f.          Stop lights/brake lights — All motor vehicles shall be provided with stop light on each side at the rear except two or three-wheeled motor vehicle where only one will suffice.  The testing/inspection may be done by turning the light on and off at the driver's compartment.  The stop lamps shall comply with the following requirements:

f.1     It shall be so wired that it may be turned on only when the service brake system of the vehicle is applied;

f.2     The color of the light of the stop lamps shall be red.

g.         Back-up lights — Motor vehicles shall be provided with back-up lights except two wheeled motor vehicles with or without sidecar and motor vehicles with a width of 0.8m or less. Back-up lights shall comply with the following requirements:

g.1    Back-up lights shall be so wired that the may be turned on only when the transmission system is in reverse position.

g.2    The color of the light of a back-up light shall be white or yellow.

h.         Signal Lights — The signal lights is a direction indicator.  All vehicles shall be equipped with a signal lights at the right and left side of the vehicle and at the front and rear thereof.

The color or the front signal lights shall be yellow, amber or red.  When in operation, it shall flash at a constant rate or not less than 60 or not more than 120 cycles per minute.

i.          Horn-motor vehicles shall be provided with a horn.  The horn shall not be a siren or bell.

j.          Rear View Mirrors — all motor vehicles, trailers and semi-trailers shall be provided with rear-view mirrors to enable the driver on his seat to observe clearly the traffic condition at the left side of the vehicle up to 30 meters backward.  The right rear-view mirror shall be optional.  The mirror shall be so mounted for easy adjustment and shall have support

k.         Windshield Wipers — All motor vehicle, except two or three-wheeled vehicles, shall be provided with an automatic LHD oriented windshield wiper/s to insure a clear view through the windshield.  Where two wipers are provided, they shall operate together.

l.          Tires — Tires are mounted on the wheel rim and inflated with compressed air.  The pneumatic tires of a motor vehicle shall comply with the following requirements:

1.1    The tires shall not have any crack, bare cord or damage.

1.2    The road-contact point of a tire shall be skid proof to reduce the likelihood of slipping.

1.3    The wheel bolt and nut must be complete and well tightened.

C.        SIDE SLIP TEST — The degree of sideslip of the wheels shall be measured by running the motor vehicle on the platform of the Alignment Tester.  The standard is 3mm or less when running one meter.

D.        STEERING SYSTEM — All motor vehicles shall not pass the inspection/testing unless the steering system complied with the following standards:

1.      All parts of the steering wheel shall be secured in order that safety and efficient operation of the vehicle are ensured.

2.      The steering wheel shall be so made that it may be easily handled and secured for maximum maneuverability by the driver from a normal driving position.

3.      The steering wheel or any part thereof shall not come in contact with any part of the motor vehicle such as the chassis frame, fender, etc. when steered.

4.      The ratio of turning angle of the steering wheel to the left or right shall be of no considerable difference to the steering angle of the tire.

5.      The clearance of the steering wheel should not be more than forty-five degrees when turned to the left or right position.

D.        BRAKE TEST — To test the braking force, the brake tester is used.  The rotation two spine-shaped rollers of the tester measure the braking force once wheels are place thereon.

The standards are as follows:

a.      The sum of the braking force of the right and left wheels shall not be less than 50% of the axle weight.

b.      The difference between the braking forces of the right and left wheels shall not exceed 10% of the axle weight.

c.       The braking system shall be so secured that it may fully withstand the operation and shall be so fixed that it may not be damaged by vibration, contact, impact, etc.

d.      The braking system shall be so construed and shall so function that it will work without interfering with the steering performance.

e.      The brake service system (which means the brake commonly used to stop the motor vehicle while running) shall work on at least half the number of wheels of the motor vehicle but always including all the rear wheels.

f.        The service brake system shall have the brake performance provided for in the following Table according to the maximum speed of the motor vehicle on a level, dry, paved road under an application force of 90 kgs or less in the case of the foot-operated type, or 30 kgs or less in case of hand-operated type.

g.         The service brake system shall be so constructed that even if a part of the Brake piping (except the piping which serves two or more wheels) is damaged, the brake may still be applied to at least two wheels.  This provision shall not apply to the two wheels.  This provision shall not apply to the service brake system (which means the brake system capable of applying the brakes to at least two wheels while running in case of a service brake system failure), a two-wheeled motor vehicle with or without sidecar, or a three-wheeled motor vehicle.

h.         The brake fluid of a service brake system shall not damage the system due to corrosion of the brake pipings or the formation of bubbles caused by the heat of the engine or other heat, sources.

i.          The brake system shall, by mechanical means, hold an unloaded motor vehicle on a dry paved with a gradient of 1/5 while the driver is away from the seat, under an application force of 90 kgs or less in case of the foot-operated type or 50 kgs or less in case of the hand-operated type.

j.          In the case of tractor, the requirement in letter i. Hereof shall also be complied with in case an unloaded trailer is coupled thereto.

k. A trailer shall be provided with a braking system in accordance with the following requirements:

k.1    The braking system shall be so set up that it will fully withstand the operation and will not be damaged by vibration, impact, contact, etc.;

k.2    The service brake system shall be so constructed that it shall operate in connection with the serviced brake system of tractor coupled thereto;

k.3.   One line of the braking system shall be so constructed that it may be controlled by the device for the purpose and hold an unloaded and stationary trailer on a dry paved road with a gradient of 1/5 under an application force of 90 kgs or less in the case of the foot-operated type or 50 kgs or less in the case of the hand operated type.

F.         SPEEDOMETER — Through the speedometer tester, the accuracy of the speedometer to indicate the speed of the motor vehicle is evaluated. As the wheels of the motor vehicle are so rotated that its speedometer indicates a speed of 40 km/hr., the motor vehicle indication in the speedometer tester is read or measured.  The standard is between 32 and 48 kilometer per hour.

Motor vehicle shall be provided with a speedometer at such a position that the driver may easily observe the same.

Speedometer shall comply with the following requirements:

a.         The speedometer shall be so constructed that the driver may easily confirm the speed while the motor vehicle is running.

b.         The speedometer shall be provided with a lighting device or shall be a luminous-painted dial plate with pointer.

c.         The speedometer shall be glare-proof.

G.        EXHAUST EMISSION TEST — Standard should be as provided for in Republic Act 8749 otherwise known as the The Clean Air Act.

H.        HEADLIGHT TEST — Headlight testers shall be employed to measure the brightness of the headlamps and the deviation of the optic axis from the main beam.  Their proper operation shall be tested by turning the headlights on and off.

Motor vehicles, except trailers, shall be provided with a headlamp on each side at the front. In case of two-wheeled motor vehicle with or without a sidecar and a motor vehicle with a width of .8 meter or less, only one headlamp at the front will suffice

The standards are as follows

a.         Luminous density

b.         Deviation of optic axis direction at 10 m forward:

c.         The color of the light shall be white or light yellow;

d.         The headlamps of a motor vehicle, when all are lighted at the same time, shall have the intensity that will enable the driver to discern any obstacle on the road at a distance of 100 meters to the front at night;

e.         The beam shall be directed to the course of the vehicle;

f.          The headlamps shall be mounted at a height of 1.2 meters or less above the front. In case of motor vehicles which is symmetrical at the front, the headlamps shall be mounted on the same level and symmetrically to the longitudinal axis of the motor vehicle;

g.         The headlights shall be constructed that the intensity thereof may be dimmed or the direction of the beams may be titled downwards;

h.         They shall be so mounted that the aim may not readily be disturbed by the vibration, impact, etc.

Should the vehicle be equipped with the auxiliary headlights, the same shall comply with the following requirements:

a.         The auxiliary headlights shall be so wired that not more than two such auxiliary headlights may be lighted at the same time;

b.         The main beam of the auxiliary headlights shall be directed downwards;

c.         The main beam of the auxiliary headlights shall not be directed to the left of the prolongation of the outermost left side of the vehicle;

d.         The color of the auxiliary headlights shall be white, light yellow or yellow.

e.         The auxiliary headlights shall be so mounted that the aim may not be readily disturbed by vibration, impact, etc.

I.          THE BUFFER SYSTEM — All motor vehicles shall be provided with buffer system, such as springs or adequate padding which has sufficient capacity against impact from the ground and may insure safe operation.  However, in the case of large size special motor vehicle and a motor vehicle with either a gross vehicle weight of less than 2,000 kilograms or with a maximum speed of less than 20 kilometer per hour, except those motor vehicles carrying dangerous articles, the buffer system may not be provided.

J.         THE FUEL SYSTEM — The fuel system of a motor vehicle shall comply with the following requirements:

a.         The fuel tank and its pipings shall be so secured and fixed that fuel may not leak therefrom, or vibration or impact may not damage them;

b.         In case of motor vehicles carrying passengers, the fuel tank and its piping shall be so construed that the fuel may unlikely leak remarkably in case of impact due to collision;

c.         A regular steel shall be used for fuel tank.  Under no circumstances shall plastic containers be used as fuel tank;

d.         The filler and gas vent of a fuel tank shall be so constructed that it shall be free from fuel leakage when the vehicle is jolted;

e.         The filler and gas vent of a fuel shall be located in the opening direction of the exhaust pipe and shall be located not less than 300 millimeters away from the discharge opening thereof;

f           The filler and gas vent of a fuel tank shall not open into the inside of any passenger compartment with seats or standing space (except the driver's compartment separated by partition)

g.         The filler must be located outside the passenger compartment.

h.         The filler and gas vent of a fuel tank shall be located 200 millimeters or more away from any exposed electric terminal or switch.

L.         ELECTRICAL SYSTEM OF THE VEHICLE — The electrical system of all motor vehicles shall comply with the following requirements:

a.         The electrical wirings located inside the compartment or the place for a gas container for liquefied petroleum gas with a partition wall such as the boot shall be covered with an insulator and fixed to the body;

b.         The electrical terminal switch and other electric system, which are likely to spark and located inside the vehicle, shall be suitably covered;

c.         The storage battery shall be so fixed that it may not moved or get damaged by vibration, impact, etc.  In the case of a battery in the vehicle compartment, it shall be covered with a wooden case or other insulating materials.

DYNAMOMETER TEST — An Inspection and Maintenance (I/M) Program's aim is to ensure that a motor vehicle's engine emission control systems are functioning properly through out its lifetime (useful life cycle) ensuring that the vehicle complies with the emission standards to which it was certified to meet for 80,000 kms or five (5) years.  To test for the durability of emission devices as required by law, a treadmill test is used for purpose.  A treadmill (dynamometer) test ensures that a vehicle is operating at a level of performance consistent with its designed capacity and efficiency at the same time meeting emission regulation limits.  The test also determines the performance and or premature deterioration of the vehicles catalytic converter, oxygen sensor, exhaust gas recirculation (EGR) system, air pump, positive crankcase ventilation and other emission related devices which can only be evaluated under load.  At a pre-determined speed and load, the engine must also be able to produce at least 50% of its rated engine power output. Vehicle emission (CO, HC, NOx) crankcase pressure (abnormally high pressures due to excessive blow-by), and emission systems are measured under a steady state condition.  NOx levels can only be effectively measured under a loaded engine. Smoke levels for diesel engines are also better measured since road conditions are stimulated and at the same time the engine is pre-conditioned prior to the free acceleration test ensuring that the combustion chamber has not been fouled.  Other conditions like transient can only be measured effectively using a treadmill test.

PIT INSPECTION — A 2.3 meter deep pit is used for underbody inspection. An ocular inspection to determine the actual condition of the following parts of the motor vehicles, shall be made:

a.         brake hose, and pipes, for any brake fluid leakage or damage;

b.         steering system for any looseness and damages;

c.         radiator, for water leakage;

d.         propeller shaft, for play and distortion

e.         shock absorber, for oil leakage and deformation;

f.          exhaust pipe, for any damage;

g.         catalyzers and heat shielding plates, for proper attachment and damages; and

h.         leakager from engine and transmission.

N.      OTHER INSPECTION — additional inspection may include the following:

Inclination Angle Measuring Inspection

Sound Level Inspection

9.         INSPECTION AND TESTING FEE — For the conduct of inspection/testing by the accredited inspection/testing shops, they shall charge a testing/inspection fee as authorized by the LTO Assistant Secretary.

10.       REPORTING — A monthly statistical report in diskette form shall be submitted every 7th day of the following month or on computer on-line by the accredited service shops to the LTO Assistant Secretary thru the Accreditation Committee using the attached format.

11.       CERTIFICATE OF INSPECTION — the Motor Vehicle Inspection Certificate (MVIC), an LTO accountable form shall be issued to all used imported motor vehicles that passed the required inspection as provided for in this guidelines.

12.       DISPLAY OF SIGNBOARD, ETC.

A.        Every accredited shop shall, within thirty (30) days before receipt of its Certificate of Accreditation, install and display a signboard in a conspicuous place inside or outside its business premises, whichever is practicable.

B.        The signboard shall be at least 0.60 meters high and 1.50 meters long. It shall contain in legible letters with a minimum size of 5 inches by 1 inch the name of the shop, Accreditation Number, and the statement "LTO Accredited Motor Vehicle Inspection Station."

13.       PENAL PROVISIONS. — Accredited inspection/testing shops which are found to have violated the guidelines and procedures as stipulated in their accreditation shall, after due notice and hearing, be imposed an administrative fine of Php10,000.00 for the first offense; Php30,000.00 for the second offense; and Php50,000.00 fine and cancellation of permit for the third offense, or outright cancellation depending on gravity of offense or violation, to wit:

a.         non-compliance on the standards or methods of inspection as embodied in AO-91-005;

b.         failure to comply with the laws, rules and regulations as enforced in this Memorandum Circular.

c.         misrepresented/faked/tampered supporting documents for accreditation;

14.       EFFECTIVITY. — This Memorandum Circular shall take effect within thirty (30) days after its publications.

For information and strict compliance.

Adopted: 23 July 2002

(SGD.) ROBERTO T. LASTIMOSO
Assistant Secretary