Executive Order 617

**numbah5** · October 15th, 2007 05:23 PM

guys, what do you say about this? it says that taxes for CBUs will be 0%. what will happen to prices of vehicles when this is implemented?

**mazdamazda** · October 15th, 2007 05:30 PM

Here's the full text of EO 617:

http://www.tariffcommission.gov.ph/eo_617.htm

This is already in effect and just implements the ASEAN-AFTA free trade (tariff elimination) agreements made before.

For vehicles, that means that when we get CBUs from Malaysia, Thailand or Indonesia no tariff is charged upon entry here in the Philippines. In the same manner, when we export CBU vehicles (like the Focus & Mazda3) to the same countries (plus Vietnam and Singapore) they don't impose a tariff like before.

**numbah5** · October 15th, 2007 05:36 PM

but some articles say it's still not in effect due to insistence of CAMPI to exclude used CBUs. so CBUs from japan and korea are included in this EO? and if this is really in effect, how come the prices of toyota thai CBUs and some CBUs from thailand that are sold by honda, mitsubishi, chevrolet and isuzu have not yet decreased?

**mazdamazda** · October 15th, 2007 06:04 PM

Oops my bad... EO 617 is not yet published.

AFAIK - used vehicles is not covered by EO617.

I think what CAMPI is protesting would be the increase CBU and reduction of CKD units entering the country. What's funny though is that the only volume exporter of CBU units is not a member of CAMPI (Ford / Mazda).

CBU units from Japan are covered under the JPEPA. We have a similar agreement (ASEAN-Korea FTA) for Korea though.

**oldblue** · October 15th, 2007 06:12 PM

so is this a good thing or bad thing? nalilito ako sa discussion nyo

prices will get lower right? tapos high-quality pa kasi hindi assembled dito

**VtEC** · October 15th, 2007 06:50 PM

prices should be lower.but the next question is, what will happen to the local industries?

**mazdamazda** · October 15th, 2007 06:57 PM

Originally Posted by VtEC

prices should be lower.but the next question is, what will happen to the local industries?

Instead of complaining... they should try to emulate Ford / Mazda by making the Philippines the export base for one or two of their car models.

E.g. Thailand makes the Strada, Indonesia makes the Fuzion, Philippines makes the Lancer.

**onat_1** · October 16th, 2007 01:35 AM

sorry kung me katangahan ang tanong ko ha ano yung CBU at CKD?

**Camgen6** · October 16th, 2007 01:47 AM

Originally Posted by onat_1

sorry kung me katangahan ang tanong ko ha ano yung CBU at CKD?

Completely Build Units

Completely Knock Down

tama ba? just a wild guess on the second one.

**oldblue** · October 16th, 2007 03:20 AM

Originally Posted by VtEC

prices should be lower.but the next question is, what will happen to the local industries?

i guess we all just have to accept that the only resource we're good * exporting are peopleware. i doubt if we can even make it big in the automative world. we're just a small island with less metal deposits.

in the meantime, let's enjoy what our good Pres. has to offer. cheaper Jap, Korean, american cars, parang computer na hehehe and goodbye PUV's, my dream is for all pinoys to have 1:1 car.