LTO probe shows smuggled Bugatti cars were priced at only P1M each

The Land Transportation Office’s (LTO) internal probe into the registration of two illegally imported Bugatti Chiron sports cars uncovered discrepancies in the vehicles’ declared amount and their commercial value as indicated by its Hong Kong-based shipper.

“The Sales Invoice Nos. 1859 and 1860 issued by Frebel Import and Export Corp., dated May 30, 2023 sold the two Bugatti in the amount of one million pesos (P1,000,000.00), not indicating the VATable sale, VAT Exempt Sale, Zero rated Sale, Total Sale, and 12% Value Added Tax,” the LTO probe report read.

Investigators noted that the amount declared by the importer was “far from” the declared amount in the commercial invoice issued by Avion Shipping Co. Ltd. in Hong Kong, which indicated an amount of $255,000 or about P14,292,750.

However, the LTO reported that, “According to estimates of the Bureau of Customs one Bugatti is around P165,000,000.00.”

The two Bugatti sports cars, colored red and blue, went viral on social media after they were spotted around the streets of Metro Manila.

The Senate blue ribbon committee was tasked to investigate the smuggling of the two Bugatti cars after Senator Raffy Tulfo disclosed in a privilege speech that the units were registered with the LTO using fake documents from the Bureau of Customs (BoC).

Citing the vehicles’ registration papers, the LTO report said the import duties paid for each Bugatti car was over P24.787 million as indicated in the Certificates of Payment issued by the BOC to the importer.

Early last month, the owner of the red Bugatti surrendered the vehicle to the Customs Intelligence and Investigation Service (CIIS) after the BoC offered cash rewards to informants who could help locate the luxury cars. As for the blue Bugatti, the BoC announced on Feb. 21 that the owner surrendered the vehicle to the CIIS.

Demalog Joint Venture, the service provider of the LTMS, said the two luxury cars were not registered in its online portal.

The registration of luxury cars, however, was done on the old LTO-IT system. Its administrators had been issued a request to submit an audit trail report to determine the LTO National Capital Region (LTO-NCR) personnel involved in the processing of the registration of the two imported vehicles.

With its findings, the LTO said it “strongly recommends a comprehensive review of the current vehicle registration policies and procedures, especially Administrative Order No. AVT-2014 -023 dated January 14, 2014, and other procedures related to the registration and renewal of motor vehicles.”

The Federated Land Transport Organizations of the Philippines (FELTOP) had urged the Department of Transportation to implement the full utilization of the LTMS as a way to curb questionable vehicle registrations.

The FELTOP added that the LTO’s old system may have facilitated the registration and issuance of license plates to the two Bugatti sports cars. — VDV, GMA Integrated News