Olongapo SubicBay BatangGapo Newscenter

Monday, May 07, 2007

MVPMAP urges tightening of vehicle import controls

The Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), an association of local auto parts makers, on Monday urged concerned government agencies to tighten their control in the importation of used vehicles.

The appeal was made especially in the implementation of the exhaust emission standards, vehicle safety standards and the exit clearance requirements at the Subic Bay Freeport.

MVPMAP is asking the Department of Environment and Natural Resources (DENR) and the Land Transportation Office (LTO) to strictly implement vehicle compliance to Euro 1 exhaust emission standards as a pre-requisite for both registration and renewal of registration of vehicles with the LTO, especially on used imported vehicles.

Since most of the imported used vehicles are equipped with old engines, they are not yet Euro 1 compliant and are smoke belchers.

Furthermore, this early, steps should already be taken to be able to impose strictly the more stringent Euro 2 exhaust emission standards by January 2008.

It is also requesting the LTO and the Bureau of Product Standards (BPS) to strictly implement the vehicle safety standards since most of the used vehicles imported are subsequently converted from right-hand to left-hand drive.

Numerous vehicular accidents have been attributed to the poor worksmanship and quality of this conversion. Most failures have to do with detached weldings in the steering and front suspension systems, thus rendering said vehicles unsafe in the long run.

MVPMAP is also urging the Subic Bay Metropolitan Authority (SBMA), the Bureau of Customs (BOC) and the LTO to adhere to a tripartite agreement they forged last month to require all vehicle importers to first secure a Value Reference Information System (VRIS) clearance from the Office of the Commissioner of the Subic BOC, then present a certificate of payment and a gate pass from the SBMA prior to vehicle registration by the LTO.

This move would ensure that imported used vehicles are not prematurely issued license plates by the LTO, which would subsequently permit them to move out of Subic.

The MVPMAP has been pushing for the implementation of a Philippine Utility Vehicle (PhUV) program.

The PhUV is an AUV-based brand-new vehicle assembled from completely-knocked down (CKD) kits thus, it will have a high level of local labor and value-added local parts.

Being brand new, it will therefore be compliant to Euro 1 exhaust emission standards, there will be no right-hand to left-hand drive conversion and the proper taxes are paid.

Furthermore, its price will be within the price range of an imported used vehicle.

The Board of Investments is now drafting a bill that provides for an incentive package not only for the assemblers but also for the local parts makers and buyers under the PhUV Program.

This is just awaiting the opening of the new Congress in July 2007 after the forthcoming May 14 elections. (PNA)

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