SC allows Subic free port to continue importing used cars
THE Supreme Court stood pat on its earlier ruling allowing the Subic Bay Freeport Zone, a huge special economic zone north of Manila where certain taxes and duties are waived to attract investors, to continue importing used cars.
The court declared as invalid the provision in Executive Order 156 that prohibits the importation of used motor vehicles in certain areas in the country, including Subic’s free port zone.
The importation of used cars, mostly from Japan, has turned into a high-stake industry in the country. More than five-year old cars like special utility vehicles and vans, among others, are reconditioned and sold outside Subic Bay’s free port.
The industry has become so big that local car companies have officially admitted that their sales are affected. Environmentalists have warned that these reconditioned cars pollute the environment and are prone to accidents. The Supreme Court, however, doesn’t agree.
In its five-page resolution, the high court said Subic Integrated Macro Ventures Corp. (Macro Ventures), Southwing Heavy Industries Inc. (Southwing), United Auctioneers, Inc. (United Auctioneers), Microvan Inc. and Motor Vehicle Importers Association of Subic Bay Freeport's petition lacks merit.
"We held therein that issuance of the ban to protect the domestic industry and the environment including its air sheds against pollution from mobile sources is a reasonable exercise of police power. Association's contention that petitioners failed to prove that the importation of used motor vehicles caused the deterioration of the local automotive industry lacks merit," the high court said.
The Court said there was no logic in the application of the import ban to the Subic Bay Freeport Zone, which is outside customs territory.
However, the court also ruled that the assailed provision of EO 156 is valid outside the presently fenced former Subic Naval Base area, which means these imported reconditioned vehicles cannot be brought outside the fenced former Naval Base. --Tetch Torres, INQ7.net
The court declared as invalid the provision in Executive Order 156 that prohibits the importation of used motor vehicles in certain areas in the country, including Subic’s free port zone.
The importation of used cars, mostly from Japan, has turned into a high-stake industry in the country. More than five-year old cars like special utility vehicles and vans, among others, are reconditioned and sold outside Subic Bay’s free port.
The industry has become so big that local car companies have officially admitted that their sales are affected. Environmentalists have warned that these reconditioned cars pollute the environment and are prone to accidents. The Supreme Court, however, doesn’t agree.
In its five-page resolution, the high court said Subic Integrated Macro Ventures Corp. (Macro Ventures), Southwing Heavy Industries Inc. (Southwing), United Auctioneers, Inc. (United Auctioneers), Microvan Inc. and Motor Vehicle Importers Association of Subic Bay Freeport's petition lacks merit.
"We held therein that issuance of the ban to protect the domestic industry and the environment including its air sheds against pollution from mobile sources is a reasonable exercise of police power. Association's contention that petitioners failed to prove that the importation of used motor vehicles caused the deterioration of the local automotive industry lacks merit," the high court said.
The Court said there was no logic in the application of the import ban to the Subic Bay Freeport Zone, which is outside customs territory.
However, the court also ruled that the assailed provision of EO 156 is valid outside the presently fenced former Subic Naval Base area, which means these imported reconditioned vehicles cannot be brought outside the fenced former Naval Base. --Tetch Torres, INQ7.net
posted by OlongapoCity Zambales at
8:25 AM
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