BOI allays fears on banning imported second-hand cars

Four senators have expressed reservations over the Comprehensive Motor Vehicle Development Program’s (CMVDP) provision on used-vehicle importation, government and industry sources said recently. The highly placed sources said that the offices of Senate President Juan Ponce Enrile and Senators Francis Escudero, Manuel Villar Jr. and Ralph Recto recently called the Board of Investments (BOI) to relay their misgivings over reports that the CMVDP, or Executive Order (EO) 877-A would ban importation of second-hand vehicles.

The government sources said that the BOI, in response, reiterated that the CMVDP would regulate—not ban—imported second-hand vehicles.

According to Article 2, Section 3, of EO 877-A, “The importation into the Customs territory or the Philippine territory outside the secured fenced-in freeport zones of all types of used motor vehicles is prohibited,” except for vehicles owned by a returning resident, immigrant or an official of the diplomatic corps; trucks and buses with gross vehicles weights of 2.5 tons and above and six tons and above, respectively, and covered by an authority to import issued by the Department of Trade and Industry (DTI); special purpose vehicles; and motorcycles covered by an authority to import issued by the Trade department.

Article 2, Section 4, states, “Used vehicles exempted from the prohibition on importation shall require an authority to import from the DTI.”

A government source said that imported used vehicles would be tested for roadworthiness and compliance with the Clean Air Act.

Also, the CMVDP restricts entry of imported used engines, parts and components.

The government source added that importation of right-hand drive vehicles is banned under other existing laws.

A Cagayan Regional Trial Court recently upheld the prohibition on imported second-hand vehicles under the old Motor Vehicle Development Program, or EO 156 issued in 2002.

Judge Oscar Zaldivar of the Regional Trial Court of Aparri in September denied a motion for reconsideration filed by the Association of Rebuilding Industries in Cagayan, which sought the exemption of Port Irene from the prohibition on importation of used vehicles.

The industry sources said that they are wondering if the BOI is being subjected to external pressure, thus the delayed public consultation on the CMVDP’s implementing rules and regulations (IRR).

The BOI, which is shepherding the drafting of the CMVDP guidelines, had said that the public hearing was scheduled in October.

But Trade Undersecretary and BOI Managing Head Cristino Panlilio last week told reporters that the hearing would be held by the middle of this month.

Panlilio said that the BOI is awaiting the arrival of Trade Secretary Gregory Domingo, who would pore over the IRR’s final draft before it is presented to the public.

Domingo was in Vietnam as part of President Benigno Aquino 3rd’s delegation during last week’s 17th Association of Southeast Asian Nations Summit in Hanoi. –BEN ARNOLD O. DE VERA REPORTER, Manila Times