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?