Car prices may be lowered in 2010 bec of JPEPA

[br733]

I did some research regarding jpepa and it seems tariff rates on vehicles with engines displacement of 3 liters and above will go down from the present 30% to 0% effective 2010. Tariff rates for vehicles with less than 3 liter engine displacement will go down from 20% to 0%

But it also states that the Philippine government can re-negotiate to defer 0% tariff for vehicles with 3 liter or more engine displacement.

If the Philippine government does not re-negotiate, it seems there will be a reduction on car prices.

This applies to vehicles originating from Japan.

[tidus1203]

So mga JDM vehicles lang? I assume Thailand made Japanese branded cars are not included?

[istan]

Yep, JDM. Thai made Jap brand cars not included. So, hmm...Accord/Pilot, Lexus?, Subaru?, Prado comes to mind.
You think they'll pass on the cheaper price to the end consumers? I'll ruin their price scales...
So I think they won't.

[ssaloon]

The very expensive Rav4 will finally get lower prices.

I think basta CBU Japan, sakop siya nito.

[br733]

Yep, JDM. Thai made Jap brand cars not included. So, hmm...Accord/Pilot, Lexus?, Subaru?, Prado comes to mind.
You think they'll pass on the cheaper price to the end consumers? I'll ruin their price scales...
So I think they won't.

Oo nga, you raised a valid point. This will create chaos in the pricing of cars sold locally since a lot of Japanese cars are made in Thailand. Will the car companies simply pocket the custom's duty savings? That is a substantial windfall profit per vehicle.

This year alone, customs duties for jdm vehicles are down from 29% to 20% already. The question is which models sold locally are imported from Japan? I think carmakers even raised prices this year bec. of the stronger yen, I suppose.

One car advertised as being made in Japan is Teana. I sure have not heard any price reduction from Nissan.

Besides RAV4, I think, Prado, Previa, Land Cruiser, Teana are CBU Japan I think. What other models are CBU Japan? What about yung Lexus?

[tidus1203]

Suzuki Swift might probably sell in Vios 1.3 teritory...

[vito corleone]

i think another made in japan car is the lancer ex. . .if it becomes cheaper, we may see more of it in the streets of manila =)

[leopaul]

Oo nga, you raised a valid point. This will create chaos in the pricing of cars sold locally since a lot of Japanese cars are made in Thailand. Will the car companies simply pocket the custom's duty savings? That is a substantial windfall profit per vehicle.

This year alone, customs duties for jdm vehicles are down from 29% to 20% already. The question is which models sold locally are imported from Japan? I think carmakers even raised prices this year bec. of the stronger yen, I suppose.

One car advertised as being made in Japan is Teana. I sure have not heard any price reduction from Nissan.

Besides RAV4, I think, Prado, Previa, Land Cruiser, Teana are CBU Japan I think. What other models are CBU Japan? What about yung Lexus?

Dapat kasi cars branded from Japan para maging sure, even cars which are Japanese-branded but built in other countries...

[oliver1013]

I was able to chat with some people from DFA some months ago at a party and one of the topics was this JPEPA treaty. All of them are against its implementation. Masyado daw tayo lugi, although lower prices of cars and some products are one of the benefits for us, medyo hindi maganda yung ibang kapalit, isa na dun yung toxic wastes ng Japan na parang sa pagkakaintindi ko dito satin dadalhin, tsaka yung fishing in territorial waters. Ang pagkakaintindi ko sa explanation nung isa dun eh parang we can fish in their home waters and so can the Japanese in our home waters. Eh hello wala tayong capabilities dun(at the same time ang alam ko simot na isda sa Japan) samantalang mga Hapon kung dumating sila rito with their huge fishing vessels ubos isda natin. Marami pa daw actually pero yan lang naalala ko, basta bottom line lugi tayo in the long run.

Just sayin..

[rusem]

I did some research regarding jpepa and it seems tariff rates on vehicles with engines displacement of 3 liters and above will go down from the present 30% to 0% effective 2010. Tariff rates for vehicles with less than 3 liter engine displacement will go down from 20% to 0%

But it also states that the Philippine government can re-negotiate to defer 0% tariff for vehicles with 3 liter or more engine displacement.

If the Philippine government does not re-negotiate, it seems there will be a reduction on car prices.

This applies to vehicles originating from Japan.

im not sure if this applies only to vehicles coming from japan. from what i know lahat ng imported cars will be 0% tariff. this will be good for consumers but might kill the local automotive industry. these plants in thailand are very efficient. producing units at around 5k per day compared to our local plants. One of our local plant produces a mere 45 - 50 units per day. also in thailand production cost per unit is way cheaper due to utilities (power, water, fuel). Philippines has one of the higher cost when comes to power. from what i know di competitive ang price ng local manufacturer's natin sa imported kung cost per unit lang ang paguusapan. tapos 0% rated pa tariff ngayon.

[br733]

if this will be applied to all car imports, even better then :-)

just to correct myself, the tariff reduction for 2009 is not from 29% to 20%, but i think 23% to 20% only (for less than 3 liter engine displacement).

[br733]

From Philippine Automotive Industry Portal:

RP to Seek Delay in JPEPA Auto Component PDF Print E-mail
by: Irma Isip

The Philippines will move for a delay in the duty-free entry of vehicles and parts from Japan under the Japan-Philippines Economic Partnership Agreement.

Elmer C. Hernandez, Trade Undersecretary and Board of Investment managing head, said the local industry is seeking the deferment to 2013 of the liberalization in the trade of completely built-up (CBU) units as well as automotive parts.Tariffs on these products are schedule to drop to zero by 2010.

Hernandez said both parts and assembly sectors want to use the three-year window provided under the JPEPA to delay free trade and have expressed this in separate communication to the BOI. Hernandez said Japan has been informed of the wish to negotiate but the parameters are yet to be set. Under the JPEPA, the negotiation should start this year. Executive Order 262 signed in December 2003 contains a list of dozens of parts and components, mostly for use of the domestic assembly industry, whose tariff rates at 10, 20 to 30 percent as protection to local producers. “The industry position is to delay everything,” Hernandez said.

The agreement provides that parts and component listed in EO262should be duty free by 2010. However, the Philippines can delay elimination of tariffs if negotiated in 2009. Tariff elimination should be not later than 2013, Hernandez said under the agreement the Philippines should inform Japan of any plan to amend EO 262. Japan should also be able to participate in the public hearings.

Hernandez said BOI is now conducting consultations with players in preparation for negotiations. Hernandez said a parallel move is in the offing for CBUs.

Hernandez said the Philippines has informed Japan of its plan to delay tariff elimination on CBUs with engine displacement of 3-liters and above. Just like with locally produced parts, JPEPA provides the Philippines a three-year window to remove tariffs but that the country should formally initiate intention to delay.

For vehicles with engine sizes that are below 3 liters, Hernandez said the Philippines did not commit anything in JPEPA. “There is no date for tariff elimination but should there be any move to eliminate the tariffs, it’s up to us,” Hernandez said.

[mazingerZ]

With the implementation of the JPEPA between Japan and The Philippines, we will be seeing a reduction in the SRP of automobiles built in Japan. The catch now is under the agreement, only those vehicles with displacements of 3.0 liters will be reaping the benefits of JPEPA (meaning great reduction of prices).

For example, just this friday, we were able to finance an LC200 with a reduction of P500k from its sticker price.

Pero, we the common folk, still cannot benefit from this act, IMHO. Since those vehicles with 3.0 displacements are typically SUVs for the rich (Pajero, Land Cruiser, Patrol, etc).

Your thoughts please

[Starex_Gold]

Hmmmm.

Anu-ano yung mga cars dito na made in Japan?

LC200
LC Prado?
Mazda CX9?

[tidus1203]

Yeah good for the rich, now they even get taxed less! I guess the rich do get richer! And siguro it protects the local industry since the bulk sales are still the smaller cars...

[GTi]

Is that for real? How much is the reduction? When will it be implemented? Now that's something to look forward to... Now if there was only a "KPEPA" so the Korean brands could drop their prices...

[balongbalong]

Lexus all models except the IS has lowered their prices already

Mitsu Pajero last week has an article in INQ that its priced was slashed 700K.

Toyota has not cut its prices though, Prado is still at 3.6M