MG SAFEGUARD BOND FAQ
What is the Provisional Safeguard Duty?
The provisional safeguard duty is an import duty in the form of a cash bond that is imposed by the Bureau of Customs on imported passenger cars and light commercial vehicles.
Why is there a Provisional Safeguard Duty?
Last January 2021, the Department of Trade and Industry (DTI) issued Department Administrative Order (DAO) No. 20-11, which imposes additional provisional safeguard duty on selected imported vehicles.
Because of this, the Bureau of Customs (BOC) issued Customs Memorandum Order (“CMO”) No. 6-2021, which imposes the provisional safeguard duty on selected imported vehicles in the form of a cash bond.
Why is this provisional?
It is provisional because the imposed amount will be returned depending on the outcome of the formal investigation of the Tariff Commission within 200 days from the issuance of BOC’s CMO No. 6-2021.
How much is the Provisional Safeguard Duty?
The table below shows the category and its corresponding safeguard duty:
Why is Value-Added Tax (VAT) included?
Once the provisional safeguard duty will be made permanent, the safeguard duty will be included in the price of the vehicle (SRP), which is covered by VAT.
Will the Provisional Safeguard Duty increase MG’s current SRP?
No. To lessen the burden on its customers, MG will incorporate the safeguard bond into the current SRP and thus, will not increase the SRP until June 30, 2021.
What if I have more questions?
You may directly contact your preferred MG dealer. If you do not have a preferred MG dealer, you may contact one from this list, https://www.mgmotor.com.ph/dealers
You can also send us an inquiry through our Contact Us page, https://www.mgmotor.com.ph/contact-us.
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