More automakers are announcing price adjustments following the imposition of the safeguard tariff. Some opted to increase the suggested retail prices of their models, while others are asking cash bonds from customers before purchase.
The latest manufacturer to announce safeguard tariff adjustments is Isuzu, and they opted for the latter. But before we get to the models that are affected, what's exempt from the model line-up.
For business owners, there is good news. If you're looking to buy a Traviz as a light-duty hauler, you don't need to pay for the cash bond. That's because the utility vehicle is exempt for two reasons. The first reason is its seating capacity. The people-carrier version has room for more than 11 passengers. Also, the Traviz is a commercial vehicle assembled in Indonesia, a country included in the exemption.
Also, all Isuzu truck models do not require the bond. These medium and heavy-duty haulers are placed in different tax classifications. Remember, only vehicles that fall under AHTN Code 8703, AHTN Code 8704.21.19, and 8704.21.29 get slapped with the tariff. But that's where the D-Max and Mu-X come in.
By March 1, 2021, all D-Max and Mu-X models are covered by the tariff. For the Mu-X, customers must pay a PHP 78,400 bond on top of the vehicle's suggested retail price. For example, the Mu-X LS starts at PHP 1,350,000. With the new rule in place, you must shell out the mentioned amount to drive home the SUV along with other charges such as chattel, insurance, and others.
But it's the D-Max that gets a heavier levy. Since it's classified as a commercial vehicle (the Mu-X falls under passenger car), you have to pay PHP 123,200 as part of the duty. With that, it means the incoming redesigned model gets slapped with the tax.
It's not all bad news though. If the duties are not permanent, Isuzu assures the customers that they will get the cash bond back. But if not, the deposit will serve as an additional payment of the unit.