imported surplus vehicles now illegal-Supreme Court

[altec]

From Sunstar Cebu website, Sunday, March 12, 2006/

Except in Subic, secondhand motor imports blocked

GOVERNMENT’S ban on the importation of second-hand motor vehicles, as stated in Executive Order (EO) 156, is legitimate, the Supreme Court (SC) ruled.

The rule, though, excludes Subic Bay Freeport since it is outside the territory of the Bureau of Customs.
With the SC decision, a case filed by Cebuano businessmen may be affected.

Businessmen Russ Jao, William Lim, Jean Lopez, Rosalinda King, Roger and Allan Crisologo and Arvin Mopon filed an injunction case against the government for an amendment to the Tariff and Customs Code of 1978.

Named respondents in the case were Executive Secretary Eduardo Ermita, Finance Secretary Margarito Teves, District Collector Ma. Lourdes Mangaoang and Acting Customs Commissioner Alexander Arevalo.

The vehicle importers questioned the legality of Executive Order 418, which imposes a flat rate of P500,000 on each imported used motor vehicle. The amount used to range from P15,000 to P70,000.

Local

The petitioners cited an Olongapo Regional Trial Court (RTC) decision that declared EO 156 as unconstitutional. But this was overruled by the SC decision.

“In issuing EO 156, the President envisioned to rationalize the importation of used motor vehicles and to enhance the capabilities of the Philippine motor manufacturing firms to be globally competitive producers of completely built-up units and their parts and components for local and export markets,” the SC decision read.

EO 156, signed in 2002, established a comprehensive industrial policy for the motor vehicle development program to make the Philippines the manufacturing hub in Asean for certain motor vehicles, parts and components.

“The deterioration of the local motor manufacturing firms due to the influx of imported used vehicles is an urgent national concern that needs to be swiftly addressed by the President,” it added.

The 26-page en banc decision was penned by Justice Consuelo Ynares-Santiago.

Indirect ban

Among the used vehicles excluded from the import ban are fire trucks, ambulances, funeral hearses, crane lorries, truck tractors and boom trucks.

In Cebu, the petitioners are fighting the “excessive” increase in import taxes, which they suspect is intended to “indirectly ban the importation of used motor vehicles.”

They noted that since the Olongapo RTC declared a related order as unconstitutional, the same should be used in the case of EO 418 signed by President Arroyo in April 2005.

RTC Branch 21 Judge Eric Menchavez issued a preliminary injunction against the government last January.

But the officials are still contesting the issuance of the order, while asking Menchavez to inhibit himself from the case.

Menchavez has asked both parties to file their position papers in the injunction case. (JGA)

So what happens to all those 2nd hand cars already running in our streets? Happy na naman ang mga TMG and kotong cops natin nito??? We even have one unit Kia Sportage in Manila purchased and registered in region 7 that is now impounded in Crame because of the claimed improper payment of taxes. Ang hinihingi ng TMG: 100K. Ano sila hilo? I bought that car for only 220K plus freight to Manila. And then what? The next TMG guy to flag down the car and ask for anuder petots?

[niky]

It's a good move for the local auto industry, but it is probably unconstitutional.

As long as you imported the car before the tax increase, they can't do that to you... better clear up the registration.

[theveed]

I think existing cars wala na magagawa yan unless di talaga properly taxed paid.

This applies to any grey market units naman eh, kaya nga madalas din hinihinto mga magagara na oto to check on papers.

But dapat talaga hintuin ang pagpasok ng mga subic vehicles, esp in bulk... daming nawawalan ng trabaho at investment dahil tumatanggap ang pinas ng basura ng japan.

[basti08]

its a good and bad news for everyone

[mazdamazda]

in the long-term that's good if we want car manufacturers to setup manufacturing plants here (like Ford Phil or Thailand).

if you want to drive imported / surplus vehicles - just pay the corresponding taxes.

[an0nim0us]

If it's not total ban, then there's always Subic, question is how can they tell if its from subic or not?

[kyle618]

they should allow rare japan cars like the skyline, rx7 since ... hindi un mga pang maramihan... kasi most of the time bubulok bulok na.

[dx8976]

what happens if you bring in a car from subic then? e di lahat sa subic na lang dadaan if it is exempt (or did i read that wrong?)

[scalpel]

All cars from subic now have "R" as first letter, so they know which ones are from subic. Problem are the previous ones with "X' or "Z".

Retroactive ba yun EO?

[Jun aka Pekto]

Buwaya.