from motioncars.com
Philippines Bans Certain Motor Vehicle Imports
Courtesy of AFP
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Philippines President Gloria Arroyo has banned imports of most types of used motor vehicles to protect the local automotive industry, the trade department said.
Arroyo's order "strongly supports the growth and development of the local automotive manufacturing industry", Trade Secretary Manuel Roxas said.
A total ban will apply on imports of used cars, sports utility vehicles, passenger vans, pick-ups, and light trucks with a gross vehicle weight of less than 2.5 tonnes, the statement said Tuesday.
Imports of used light trucks weighing between 2.5 and 6.0 tons would be restricted but no ban would be applied because many small businesses, which make up 99.5 percent of all Philippine businesses, cannot afford new vehicles, Roxas said.
"On the average, brand new light trucks cost two and a half times that of imported used trucks," he said.
Local assemblers, mainly subsidiaries or affiliates of Japanese automakers, have complained that imports of used vehicles are ruining their business.
Roxas said there would be no restrictions on imports of used buses weighing more than 12 tonnes, while those weighing between six and 12 tonnes would be regulated.
Auto sales in the Philippines rose 10.9 percent from a year earlier to 77,872 vehicles in the 11 months to November, an industry association said Monday.


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