Earlier this week, the Department of Trade Industry (DTI) officially junked the provisional safeguard (SG) bond after signing Department Administrative Order (DAO) 21-04. This means that automakers will no longer have to pay the additional PHP 70,000 or PHP 110,000 cash bonds for imported vehicles.
But what about those customers that paid extra when the safeguard provision was in effect? Well, automakers are now preparing the refund process in order to return the money to their customers. Nissan Philippines Inc (NPI) and Toyota Motor Philippines (TMP) have already issued statements on how they plan to refund customers. But how does Isuzu Philippines Corporation (IPC) plan on refunding the safeguard deposit?
According to the company, the refund process will be straightforward. That's because they treat the SG bond as a separate deposit from the vehicle's suggested retail price (SRP). As a result, this makes it easier to return the money as the exact amount can be refunded quicker.
But what about customers that financed their purchase? Well, Isuzu stated that they also separated the SG bond from the financed amount. With that, customers who made a separate deposit on a bank-financed car will still get back their cash.
Isuzu wishes to remind customers that in order for them to get the refund, they need to bring the acknowledgment receipt for the SG deposit. That way, they can easily trace the original transaction when they paid the safeguard bond. IPC also mentioned that the refund customers will receive are inclusive of the 12% VAT (mu-X - PHP 70,000 + VAT, D-Max PHP 110,000 + VAT). The Traviz, Isuzu's latest commercial vehicle, is exempt from the safeguard provision since it is sourced from Indonesia.
Customers that purchased the all-new D-Max and the current mu-X are covered by the provisional safeguard bond. This means customers that bought either the pick-up or SUV are entitled to get a refund from IPC. But until the BOC issues the CMO, they will not yet issue any refunds.
“Both the D-Max and mu-X are covered by provisional SG. We continue paying cash bonds until the Customer Memorandum Order says otherwise. We expect the CMO to be issued within 10 days after DTI released its negative decision,” said Isuzu in a statement.