Olongapo SubicBay BatangGapo Newscenter

Friday, February 25, 2005

Dept of Trade to appeal used auto ruling

Newly-installed Trade and Industry Secretary Juan B. Santos has vowed to strictly implement the law banning the importation of right-hand drive vehicles to put a stop in the importation of used motor vehicles.

This developed even as Santos said the government is going to file an appeal over the recent Court of Appeals decision that overturned a Malacañang order banning the importation of used motor vehicles through Subic freeport.

The Chamber of Automotive Manufacturer of the Philippines Inc. supported the DTI moved to appeal to the Supreme Court the CA decision, saying the decision does not only affect the industry but the entire economy.

In a 31-page resolution, the CA affirmed the earlier findings of Olongapo City Regional Trial Court Judge Eliodoro Ubiadas that Executive Order 165 or the Motor Vehicle Development Program, particularly Section 31 banning the importation of used motor vehicles, is unconstitutional and illegal.

The CA then ordered the Bureau of Customs to allow the entry of used cars.

"We are caught by surprise and we should act with dispatch on this as we intend to appeal the CA decision because the quantity of imported used cars far outweigh the locally assembled units and this not only jeopardized the local assemblers but also the parts markets,’’ Santos told reporters.

Under the law, the importation of right-hand drive motor vehicles, whether brand new or used, is illegal but importers are converting these vehicles to left hand drives inside Subic to make the vehicles compliant.

"We are very much in favor of strictly following the rules and regulations. We have to prove to all and sundry that we can implement the law,’’ Santos said.

But the rules are not being following strictly as unscrupulous traders are able to circumvent the law.

"We have to see to it that the law is implemented,’’ he vowed.

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