CAMPI Supports Perks for CKD Importers
The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), which groups 19 automotive players in the country, Thursday clarified that while they are supporting a policy bias for CKD (completely knocked down) assemblers this should not be done at the expense of the CBU (completely built-up) importers.
“The auto policy should be biased for assembler and the intention of CAMPI is for the expansion of the assembly operations in the country, but the question is the way by which it will be accomplished and (how) will the objective be attained in such a manner,” said CAMPI president Elizabeth H. Lee
It could be noted that the Deloitte Consulting, which came up with an assessment on the domestic auto industry, has proposed for a $1,000 subsidy for each CKD unit produced in the country.
Lee said there is no problem with the move to grant subsidy whether fiscal or non-fiscal incentives to CKD assemblers, but it was not clear as to the source of this subsidy.
“Where would you source the subsidy? If the manner by which to attain the objective is through the formal CBU importers then this will not result in the expansion of the CKD assembly operations in the country,” said Lee.
CAMPI groups 19 automotive companies operating in the country both assemblers and pure CBU traders. All CKD assemblers are also CBU importers and some of them are even the country’s biggest CBU importers.
“In order for the auto industry to continue on is if the current models of existing assemblers to will assemble their future models here and second, if the multinational auto players or CBU players will actually assemble new models in the Philippines,” said Lee.
“Indeed, we need a policy bias for CKD operation but it should not be at the expense of the CBU because this would not result to the expansion of the CBU sector,” said Lee.
Lee stressed that the industry cannot just dismiss the CBU players for now.
By BERNIE CAHILES-MAGKILAT, Manila Bulletin
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