Olongapo SubicBay BatangGapo Newscenter

Monday, August 11, 2008

BoI to review used car import policy

The Board of Investments will review Executive Order 156, which prohibits the importation of used motor vehicles into the country, amid the controversy surrounding the entry of second-hand units in Cagayan province via Port Irene.

Trade Secretary Peter Favila told reporters he was asked by Senator Juan Ponce Enrile to revisit the Malacañang directive to clarify whether or not Cagayan Freeport was exempt from the prohibition.

Enrile was implicated in the alleged rampant smuggling of used vehicles in his province of Cagayan.

The Bureau of Customs and Presidential Anti-Smuggling Group denied smuggling in the province, adding that the proper taxes were collected.

Executive Order 156, entitled “Providing for a Comprehensive Industrial Policy and Directions for the Motor Vehicle Development Program and its Implementing Guidelines,” bans the entry of imported used vehicles into Philippine customs territory.

The Supreme Court unanimously voided the inclusion of the Subic Bay Freeport Zone in the directive, which effectively limited the importation and resale of used vehicles within the Subic Bay Freeport.

The high court ruled with finality that used motor vehicles that come into Philippine territory via the secured fenced-in former Subic Naval Base area may be stored, used, or traded therein, or exported out of the Philippine territory, but they cannot be imported into the Philippine territory outside of the former American base.

“In particular, the senator wants a clarification on the provision of the directive that provides for the areas covered by the prohibition,” said Favila.

Cagayan Export Zone Authority has filed a case before the Regional Trial Court of Aparri, Cagayan, arguing that order did not apply to the ecozone.

Cagayan ecozone officials said the October 2007 final ruling of the Supreme Court upholding the constitutionality of EO 156 was not clear whether or not the directive applies to areas other than Subic Bay.

“It is a legal issue, but we will look into that,” said Favila.

Favila said while used motor vehicle imports were prohibited in the country, he also recognized the issue that many Filipinos could only afford to buy a second-hand vehicle.

“I have asked local vehicle assemblers to come up with an affordable people’s car so people won’t have to buy used vehicles that are cheaper,” said Favila.

While sales of new vehicles, as reported by the Chamber of Automotive Manufacturers of the Philippines Inc., continuing to post double-digit growth despite the harsh economic environment, the industry thinks it still needs to work on its competitiveness. By Elaine Ruzul S. Ramos - Manila Standard Today

Labels: , , ,


Post a Comment

<< Home


This is a joint private blog of volunteers from Subic Bay. It is being maintained primarily to collate articles that may be of importance to decision making related to the future of Subic Bay and as a source of reference material to construct the history of Subic Bay.

The articles herein posted remains the sole property of original authors and publications which has full credits to the articles.

Disclaimer: Readers should conduct their own research and due diligence before using any article herein posted for whatever intended purpose it may be. This private web log will not be liable for any loss or damage caused by a reader's reliance on information obtained from volunteers of this private blog.

www.subicbay.ph, http://olongapo-subic.com, http://sangunian.com, http://olongapo-ph.com, http://oictv.com, http://brgy-ph.com, http://subicbay-news.com, http://batanggapo.com 16 January 2012