uncontrolled vehicle smuggling

[jpdm]

President Arroyo should do something to stop this rampant smuggling of vehicles from Subic because it is destroying our already moribund motor industry..........

Auto smuggling still rampant, threatens vehicle industry
By Daxim Lucas
Inquirer
Last updated 04:43am (Mla time) 08/09/2007
The Philippine automotive industry continues to suffer the effects of rampant vehicle smuggling, which is hampering its development despite a recent increase in legitimate sales.
In a recent interview, Ford Group Philippines president Henry Co said smuggling of vehicles continued to pose a serious threat to the viability of the automobile industry, which in turn, threatens the livelihood of the thousands of workers employed by it.
“Vehicles are highly regulated products, but smuggling continues,” he said, describing the smuggling activities in the Subic Bay Freeport in recent months as “still significant.”
“Motor vehicle smuggling is an indication of how bad governance could be,” Co added.
The Philippine industry remains hard-pressed to surpass the 100,000-mark in annual sales since falling to the 80,000-level in the wake of the 1997 East Asian financial crisis. The Ford Philippines chief said that the inability of the industry to recover from the post-crisis sales slump was due, to a large degree, to the sharp increase in smuggling activities in Subic and other ports in recent years.
In particular, he said smuggling of used vehicles “has grown substantially over the last 10 years” and continues despite last year’s Supreme Court decision affirming the illegality of the practice.
Co said the local automobile industry had an annual capacity of 200,000 vehicles, but estimated that the utilization rate stood at only 25 percent of this, due to the prevalence of cheaper, smuggled vehicles.
The Chamber of Automotive Manufacturers of the Philippines Inc. sees auto sales to top 100,000 this year, partly due to rising affluence, brought about by the strong economy.
Co believes, however, that this level would be even higher if not for the availability of smuggled vehicles, which drain the industry of legitimate sales.
More importantly, the Ford Philippines chief believes that vehicle smuggling has the potential to bring down the local automobile industry, given that legitimate sales remained relatively weak even as vehicle registrations had been increasing yearly—the difference being made up of smuggled vehicles.
Already, he said several automotive parts makers have closed shop or moved to other countries because of weak sales.
“Over the long term, something has to be done,” Co said. “Can a country like the Philippines with over 80 million people afford to be without an auto industry?”
He said the government only has to have the resolve to implement last year’s Supreme Court decision.
“It’s illegal,” he said. “It should be easy and simple enough.”


Copyright 2007 Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[ogpro]

Sad...

If there were no buyers, there would be no sellers....

[alwayz_yummy]

taxes should be lessen lalo na sa b-new cars..hirap sa pinas: tax dito tax doon, permit dito, permit doon, red-tape dito, red-tape doon...aba sa dami ng taxes natin dapat mayaman na bayan na natin...at di yung mga sakim sa gobyerno natin...

practically, kung masmura at mas maraming options pa ang b-new than those smuggled they claim, aba, i personally wont hesitate to buy one....

kaya nagkaroon ng notion na pag local version: most likely "tinipid version"

dapat all-option are available, hirap kasi sa local auto market natin sila ang kumokontrol sa market, katulad ko, sino lang ba nagoofer ng 4wd van-->hyundai, medyo basic pa...e..jdm 4wd vans,ayus-ayus lang(siyempre used na to noh!) mas maganda pa!

[mazdamazda]

taxes should be lessen lalo na sa b-new cars..hirap sa pinas: tax dito tax doon, permit dito, permit doon, red-tape dito, red-tape doon...aba sa dami ng taxes natin dapat mayaman na bayan na natin...at di yung mga sakim sa gobyerno natin...

FYI... the tax for vehicles costing less than P700K is already at the lowest level.

practically, kung masmura at mas maraming options pa ang b-new than those smuggled they claim, aba, i personally wont hesitate to buy one....

kaya nagkaroon ng notion na pag local version: most likely "tinipid version"

dapat all-option are available, hirap kasi sa local auto market natin sila ang kumokontrol sa market, katulad ko, sino lang ba nagoofer ng 4wd van-->hyundai, medyo basic pa...e..jdm 4wd vans,ayus-ayus lang(siyempre used na to noh!) mas maganda pa!

I think you are contradicting yourself there... you want the lowest price but with a lot of options/features? If you want a fully optioned vehicle, then expect to pay for it - there's no such thing as a free ride.

[swordsman]

If the laws against smuggling are properly implemented or given more 'teeth', there would be no smugglers - no sellers, and no buyers.

Okay din naman ang surplus, basta ba legal ang importation

[ineedmorehp]

IMO, most technological advancement doesnt come cheap. What the gov't should do is remove corruption. Ying kinukuha ng corruption pinapasa lang sa mga buyers...

[jpdm]

Sabi sa press release.....LTO is doing something daw to help eliminate vehicle smuggling.....

ows talaga lang ha......

Bakit di sila pumunta dito sa Cavite at lantaran at malawakan ang bentahan ng junk Subic vehicles dito kaya namatay ang local assemblers dito.

Tapat lang ng LTO Imus ang mga nagbebenta ng mga smuggled na vehicles na yan, bakit di sila mag-inspection o kaya i-kumpiska para naman lumaki ang tax intake ng gobyerno at di pinagdi-diskitahan ang mga pobreng income earners through R-VAT and Withholding tax.....tulad ko....

Kaya local assemblers, MVPMAP pati na rin big boys ng CAMPI nagre-reklamo na.... smugglers na lang kumikita.......

[kyle618]

dapat less, crappy old cheap cars. more cheap high performance cars.

[cocoy]

the reason for smuggling in my opinion is that there is a market for cheaper cars... i mean second hand local cars are still so expensive..

[oldblue]

basta ba brand new ini-smuggle nila eh ok lang. pero kung 2nd hand na makakadisgrasya ng iba innocente sa kalsada dapat pati smuggler puwede ikulong

[kyle618]

yep, mga sira-sira, poor quality vans, suvs ang dinadala dito and really bad conversion are just a few of the problems. kung mag susmuggle sila dapat orig LHD (euro cars bwhaha) and nothing older than 5 yrs old or kung RHD dapat may nag coconvert na specialist talaga para sure no problems.

[wildthing]

Who told you that vehicle smuggling is uncontrolled by the govt of Arroyo? .... actually I think THEY CONTROL smuggling.

[moni2burn]

Good day mga ka tsikot, I am planning to buy an imported sports car and its registered in Diliman, and price is more than 1M, it was brought in by the company "R. Legaspi trading" is there anybody can help me decide if this is a legal doccumented car, I checked with our local LTO and they say its ok, but after reading this thread I`m a bit hessitant of getting the car, can anyone comments or advise on this matter. Thanks in advance.

[jpdm]

yep, mga sira-sira, poor quality vans, suvs ang dinadala dito and really bad conversion are just a few of the problems. kung mag susmuggle sila dapat orig LHD (euro cars bwhaha) and nothing older than 5 yrs old or kung RHD dapat may nag coconvert na specialist talaga para sure no problems.

So you endorse smuggling.....just asking....

[cocoy]

smuggled cars we are talking about are the cars that are completely built units right?i mean i saw a second hand parts car selling a chopped up landcruiser... with all the parts together and all you have to do is put it together,. when its all done and finished would it still be considered smuggled?i also want to know why no one seems to be complaining about the giant jeepneys carrying vegetables to manila from the provinces. are they safer than the subic converts which is at least certifided? i mean these jeepneys are bein made in the side of the roads and highways of the provincess.. why is this so? i thnk its obvious.. its just cheaper....in mindanao everywhere you go you will see multicabs running all over the place.. you can buy a perfectly good model for 150,000 or less... but if you buy a brandnew one from suzuki its 400,000.. with that price difference of course there will be a market for second hand or smuggled cars....

[alwayz_yummy]

as i recall, there's a law--> mas cheaper ang tax ng 10 year old imported car than below 10 years.. pansinin nyo ang trend: you'll now see more 1996-1997 JDM models nowadays..

kung hihimayin natin ang tax, madami talaga, kahit mga jdm importers..

eto lang akin, if gusto mag-iprove ng local industry(and to have more locally assembled/brand/made cars here) baliktarin ang tax and registration system:

almost 0% sa b-new, then 1%every year for 5 years, additional 5% for the next 5 years, then additional 10% for the next 5 years.. so a 15 year-old car will have a registration fee of 1%+5%+10%...

ganyan sa japan, the older the car the bigger the fees are...kaya you'll rather buy a new car than maintaining a second hand one... down side lang, mawawalan/liliit ang market ng used cars...including ang kita ni "manong mekaniko"..

ganyan tinutukoy ko...dito sa atin, yung older car mas mura pa ang rehistro and parts kaysa sa bagong sasakyan, kaya practically, dun ako sa luma...

in this way also, mas madming extras ang makakasama ng dealer sa sasakyan na mabibili mo...

[jpdm]

smuggled cars we are talking about are the cars that are completely built units right?i mean i saw a second hand parts car selling a chopped up landcruiser... with all the parts together and all you have to do is put it together,. when its all done and finished would it still be considered smuggle

These are all smuggled--outright, technical, misdeclaration--bad for our economy. the Multi cabs of Norkis, are paying the right taxes, hence, may kamahalan pa rin at 150,000 pero di perwisyo sa bansa.

Yan galing sa Subic, junk na, illegal pa. They dont pay taxes. Pinupuslit nila ang mga sasakyan sa free port. bawal yan.

[jpdm]

Good day mga ka tsikot, I am planning to buy an imported sports car and its registered in Diliman, and price is more than 1M, it was brought in by the company "R. Legaspi trading" is there anybody can help me decide if this is a legal doccumented car, I checked with our local LTO and they say its ok, but after reading this thread I`m a bit hessitant of getting the car, can anyone comments or advise on this matter. Thanks in advance.

With a budget of 1million, my suggestion is that you buy na lang a Ford Focus, diesel. brand new, High tech, with good warranty and after sales service, with available parts at higit sa lahat, locally assembled pa....wag na yung sport car...maraming moon crater sa Pinas......tsaka traffic dito.....takaw mata pa sa mga carjacker at holdupper.....

[jpdm]

Anti-smuggling group tracking down 400 hot cars from Subic
By Perseus Echeminada
Wednesday, August 15, 2007 The Presidential Anti Smuggling Task Group (PASG) is closely working with the Land Transportation Office (LTO) to track down some 400 imported cars reportedly issued gate passes from the Subic Free Port and which have found their way to different display centers in Metro Manila and other parts of the country.
Undersecretary Antonio Villar, who also acts as PASG chief, said he is now coordinating with the LTO to verify if the owners of the “hot cars” registered the vehicles.
“We are coordinating with Assistant Secretary Reynaldo Berroya for records of the newly registered cars in Diliman and Toledo offices,” Villar said in a radio interview.
The PASG chief said that the “hot cars” suddenly disappeared a day after they were supposed to conduct inspections.
He said the operators of the car display centers might have been warned of the impending inspection, prompting them to pull out the cars and hide them.
Villar said they are now closely monitoring warehouses where the vehicles were temporarily kept.
The PASG earlier tagged the LTO office in Diliman, Quezon City and the Toledo office in Cebu as the favorite “registration office” of smuggled luxury cars from Subic and Cebu ports.
He said the modus operandi of the smugglers is to register the chassis number of a “hot car” and on the basis of that serial number a license plate is then issued so that the vehicle can be sold to unsuspecting buyers.
The smuggled luxury cars are usually slipped into the country through major international ports in connivance with erring Customs officials. Some of the cars are dismantled and placed in container vans. The hot cargo is mostly misdeclared and undervalued and its real contents only known when the vans are opened for inspection.



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[Dr.Kamiya]

I think it's important to distinguish between real smugglers, and legitimate gray-market importers, as the tone of the article seems to lump all of them together into one steaming pile. Whlist CAMPI members are accorded huge tax incentives, gray importers actually have to pay the proper amount, and these guys are a very significant source of customs revenue (assuming, of course, that the money goes to the right place).

My guess is this scrapping of luxury cars (in the other thread) is really all for show, and likely will involve just cars from the people that rubbed shoulders with "friends of PGMA" the wrong way.