Used car importation stopped
By Rey E. Requejo
The Supreme Court has affirmed its decision prohibiting the importation of used motor vehicles, except those brought in through the special economic zones and free ports such as Subic and Clark.
In a six-page en banc resolution, the tribunal dismissed for lack of merit the separate motions filed by Southwing Heavy Industries Inc., United Auctioneers Inc. and Microvan Inc., Subic Integrated Macro Ventures Corp., all members of the Motor Vehicle Importers Association of Subic Bay Freeport.
The importers sought a definite ruling from the high court on whether or not used motor vehicles may be imported in light of the issuance on April 4, 2005 of Executive Order 418 imposing an import duty of P500,000 on used motor vehicles, except trucks, buses and special purpose vehicles.
They argued that EO 418 “impliedly repealed” EO 156 which prohibited the importation of used motor vehicles.
They asserted that EO 156 was in effect extended to the Subic free port since motor vehicle importers can no longer continue their respective business if they cannot bring the imported vehicles into other parts of the country.
In its Feb. 20, 2005, the Court ruled on the constitutionality of Article II, Section 3.1 of Executive Order 156, which provides that “the importation into the country, inclusive of the free port, of all types of used motor vehicles is prohibited” with some exemptions such as vehicle owned and for the personal use of a returning resident or immigrant and covered by an authority to import issued under the no-dollar importation program; a vehicle for the use of an official of the diplomatic corps and authorized to be imported by the Department of Foreign Affairs; trucks with pick-up; buses; and special purpose vehicles.
But the Court modified the rulings of the lower court and Court of Appeals, saying that the provision is “valid insofar as it applies to the Philippine territory outside the presently fenced-in former Subic Naval Base area and void with respect to its application to the secured fenced-in former Subic Naval Base area.
The Court gave credence to the claim of the government that EO 418 is only a temporary measure to address the influx of used motor vehicles in the country, while the Court has yet to come up with a final ruling on the legality of EO 156.
It also ruled that the government’s policy prohibiting the importation of used vehicles was not altered by the issuance of EO 418.
“In the instant case, EO 156 is very explicit in its prohibition on the importation of used motor vehicles. On the other hand, EO 418 merely modifies the tariff and nomenclature rates of import duty on used motor vehicles. Nothing therein expressly revokes the importation ban,” the Court stressed.
“Since there is no such express repeal as stated in EO 418, the conclusion is that the said executive issuance did not supersede EO 156,” the Court added.
Nonetheless, the high court said that the importation of used vehicles in the Subic Freeport could not be covered by EO 156 since it is considered as a “foreign territory.”
“Any movement or entry of used motor vehicles to other parts of the Philippine territory would logically subject said vehicles to the laws of the customs territory, specifically the importation ban. To rule otherwise would put premium on the interest of a few businessmen and to deprive the Congress or the President of the power to issue measures protective of our domestic markets and air quality,” the Court stressed.
The Supreme Court has affirmed its decision prohibiting the importation of used motor vehicles, except those brought in through the special economic zones and free ports such as Subic and Clark.
In a six-page en banc resolution, the tribunal dismissed for lack of merit the separate motions filed by Southwing Heavy Industries Inc., United Auctioneers Inc. and Microvan Inc., Subic Integrated Macro Ventures Corp., all members of the Motor Vehicle Importers Association of Subic Bay Freeport.
The importers sought a definite ruling from the high court on whether or not used motor vehicles may be imported in light of the issuance on April 4, 2005 of Executive Order 418 imposing an import duty of P500,000 on used motor vehicles, except trucks, buses and special purpose vehicles.
They argued that EO 418 “impliedly repealed” EO 156 which prohibited the importation of used motor vehicles.
They asserted that EO 156 was in effect extended to the Subic free port since motor vehicle importers can no longer continue their respective business if they cannot bring the imported vehicles into other parts of the country.
In its Feb. 20, 2005, the Court ruled on the constitutionality of Article II, Section 3.1 of Executive Order 156, which provides that “the importation into the country, inclusive of the free port, of all types of used motor vehicles is prohibited” with some exemptions such as vehicle owned and for the personal use of a returning resident or immigrant and covered by an authority to import issued under the no-dollar importation program; a vehicle for the use of an official of the diplomatic corps and authorized to be imported by the Department of Foreign Affairs; trucks with pick-up; buses; and special purpose vehicles.
But the Court modified the rulings of the lower court and Court of Appeals, saying that the provision is “valid insofar as it applies to the Philippine territory outside the presently fenced-in former Subic Naval Base area and void with respect to its application to the secured fenced-in former Subic Naval Base area.
The Court gave credence to the claim of the government that EO 418 is only a temporary measure to address the influx of used motor vehicles in the country, while the Court has yet to come up with a final ruling on the legality of EO 156.
It also ruled that the government’s policy prohibiting the importation of used vehicles was not altered by the issuance of EO 418.
“In the instant case, EO 156 is very explicit in its prohibition on the importation of used motor vehicles. On the other hand, EO 418 merely modifies the tariff and nomenclature rates of import duty on used motor vehicles. Nothing therein expressly revokes the importation ban,” the Court stressed.
“Since there is no such express repeal as stated in EO 418, the conclusion is that the said executive issuance did not supersede EO 156,” the Court added.
Nonetheless, the high court said that the importation of used vehicles in the Subic Freeport could not be covered by EO 156 since it is considered as a “foreign territory.”
“Any movement or entry of used motor vehicles to other parts of the Philippine territory would logically subject said vehicles to the laws of the customs territory, specifically the importation ban. To rule otherwise would put premium on the interest of a few businessmen and to deprive the Congress or the President of the power to issue measures protective of our domestic markets and air quality,” the Court stressed.
Manila Standard Today
posted by OlongapoCity Zambales at
4:46 AM
0 Comments:
Post a Comment
<< Home