Executive Order 617

[numbah5]

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]

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]

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]

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]

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]

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

[mazdamazda]

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]

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

[Camgen6]

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]

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.

[pakupakupaku]

Lucky kids in the future. err Unlucky me, Im a parent

[niky]

I think there was some controversy in this, in that someone tried to insert a section in the Annex allowing used CBUs. (sneaky sneaky... ).

In the end, if that supposed inclusion is passed (I really don't know what's happening to it now)... all of us current car owners will suffer... as it'll allow secondhand cars in at ridiculously low prices.

[numbah5]

they are currently revising Annex A of the EO. supposedly to remove used CBUs from the exemption. and what i've heard, is that new vehicle prices, CKD or CBU, will go down once this is in effect. i can see that a brand new toyota prado can be bought at PHP 2.3M, or a BMW X5 at almost PHP 3M, or the Hyundai Grand Starex Gold from the introductory price of PHP 1.7M to PHP 1.4M!! what makes vehicles expensive, especially european vehicles, is the excessive taxes that our government has imposed. for example, the price of the Nissan Patrol started at PHP 1.6M. when the gov't imposed excise taxes for SUVs and Vans, the Patrol's prices shot up to PHP 2.3-2.4M!!

[russpogi]

Completely Build Units

Completely Knock Down

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

Tama sir! Pero I think it's supposed to be:

Completely Built Up Units
Completely Knocked Down

But then, everyone gets the point!

[mazdamazda]

they are currently revising Annex A of the EO. supposedly to remove used CBUs from the exemption. and what i've heard, is that new vehicle prices, CKD or CBU, will go down once this is in effect. i can see that a brand new toyota prado can be bought at PHP 2.3M, or a BMW X5 at almost PHP 3M, or the Hyundai Grand Starex Gold from the introductory price of PHP 1.7M to PHP 1.4M!! what makes vehicles expensive, especially european vehicles, is the excessive taxes that our government has imposed. for example, the price of the Nissan Patrol started at PHP 1.6M. when the gov't imposed excise taxes for SUVs and Vans, the Patrol's prices shot up to PHP 2.3-2.4M!!

I don't think that the price drop will be that drastic.

AFAIK - tariffs for ASEAN made CBU vehicles is less than 3% of its base price.

Plus:
X5 is from Germany, won't be covered by EO617
Prado is from China, won't be covered by EO617
Patrol is from Japan (?), won't be covered by EO617

The excise tax is based on the retail price of the vehicle (not just SUV & Vans). The higher the sticker price, the bigger the tax (unlike before where it was based on the number of seats & displacement).

[Flagg]

Pwede kaya Evo X na may tatak na 'Made in Thailand'?