Olongapo SubicBay BatangGapo Newscenter

Sunday, February 26, 2006

Subic importers laud SC decision on used vehicles

By JONAS REYES, Manila Bulletin

SUBIC BAY FREEPORT — Importers of second-hand vehicles welcomed a Supreme Court decision voiding Executive Order (EO) No. 156 which bans the importation of used motor vehicles through this Freeport.

Peter Geroue, president of the Motor Vehicles Importers Association (MVIA) in Subic Freeport, said that the decision recognized the Subic Freeport as a separate Customs territory.

"The Supreme Court was right in its decision as it cited Republic Act No. 7227, otherwise known as the Bases Conversion and Development (BCDA) Act of 1992, that allows the free flow of goods and capital," Geroue said.

He noted the High Court’s ruling that "used-motor vehicles that come into the Philippine territory via the secured fenced-in Subic may be stored, used or traded therein, or exported out of the Philippine territory."

"I am happy about the decision that also favors car manufacturers when the Supreme Court disallowed importation to all ports in the country, except Subic Freeport," Geroue said.

Geroue also said that the government can control and monitor the importation of second-hand vehicles because the Subic Freeport will be the only entry point.

As this developed, the legal department of the Subic Bay Metropolitan Authority (SBMA) announced its stand on the decision of the High Court.

"The decision is Solomonic and wellcrafted and favors the Freeport-registered companies to keep importing and trading of used-motor vehicles," said lawyer Carlitos R Cruz, SBMA deputy administrator for legal affairs.

Cruz lauded that SC’s decision written by Justice Consuelo Ynares-Santiago, saying the High Court ruled with the "balancing of interest" between the petitioners and the respondents.

"This is good for everyone. The court also recognized the authority of the SBMA in so far as the protection of micro and medium entrepreneurs inside the Freeport are concerned," Cruz said.

The SBMA is expecting more revenues arising from the SC ruling. It has been collecting a 0 processing fee for every car imported through the Freeport.

Geroue said that thousands of skilled workers here, particularly those engaged in automotive rebuilding, also hailed the SC decision which, they said, has saved them from losing their jobs. The affected workers included mechanics, auto-electricians, and car painters.

Data at the Labor Center of SBMA show that thousands of direct-hire employees of motor vehicle-related businesses would have faced dislocation had it not been for the SC ruling.

"The government should not protect and give undue favors to wealthy companies which can afford to buy brand new vehicles for their operations," Geroue said.

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