Olongapo SubicBay BatangGapo Newscenter

Thursday, June 23, 2005

Used truck: P300, 000, tax and duty: P500, 000

Subic Freeport’s bimonthly auction of used vehicles attracts a curious assortment of buyers. Some are young couples out to acquire their first car.

There would be small town mayors, armed with authorization letters, from municipal councils to purchase an ambulance or fire truck. Most are up and coming bus operators, haulers or civil works contactors eyeing to bid for a bus, truck or bulldozer to grow a business.

The Japan made units relatively are cheap. Converted from right-to left-hand drive an SUV may sell for P400,000, a quarter of the price for a brand-new model that a starter couple would never afford.

A fully equipped ambulance could sell for just bit more. A ready-to-use two-torn cargo truck can fetch P300,000, again a third of the price of a new version but only cab-and-chassis. The auctions thus provide bidders the means to fulfill their respective dreams.

On marched 30 the Customs bureau ordered shipping lines to not carry in anymore used vehicles from Japan. Citing the right –hand Drive Law (R.A.8506), the agency warned that violators would be forced to ship back the units to ports of origin at their expense.

The association of six or so auctioneers protested. The Law forbids driving RHDs on any road for safety. But the importers argued there is no violation since the units are converted to LHD, then tested for road –worthiness, before official registration. Besides, they said, the Subic Charter (R.A. 7227) allows low- duty imports of goods and raw materials, such as those to be converted and thus with value added.

There is more. The House of Representatives had ruled in June 2004 “no pertinent existing law or regulation is violated by bringing … (and) conversion of RHDs in the Subic special economic zone.” Studying the issue due to an outcry from local car and truck makers, the House report took into account the opinions of the Government Corporate Counsel, Departments of Justice and of Trade Industry, and Office of the Presidents.

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