The Land Transportation Office (LTO) has reported that it has distributed about 600,000 new license plates to car owners after being stuck at the International Container Port in Manila because of unpaid tax duties.
Last April 15, the Bureau of Customs (BOC) turned over 11 container vans filled with the license plates that were manufactured abroad.
The shipment was held inside the port for so long because supplier Dutch-Filipino consortium Knieriem BV Goes and Power Plates Development Concept Inc. (JKG-PPI) failed to settle P40-million worth of import duties and taxes.
The shipment covers 10 percent of the total backlog in license plates.
Under the contract with JK-PPI, 15 million plates are to be delivered in 5 years.
LTO spokesman Jason Salvador, however, said there is still a big backlog as the Commission on Audit (COA) has not yet lifted its Notice of Disallowance.
The audit body disallowed LTO’s disbursement of P477 million for the P3.8-billion contract as it did not undergo proper bidding procedures.
The license plates are part of the Department of Transportation and Communications license plate standardization program.