MANILA, Philippines - Importers and dealers of second hand motor vehicles have expressed apprehension that the proposed implementing rules and regulations on the Importation of Used Motor Vehicles, a major component of Executive Order 877-A, would eventually wiped them out of business.
Industry players told the Board of Investments at yesterday's public hearing on the proposed IRR that there are 6,000 second hand motor vehicle dealers in Quezon City alone and there are 20 importers of used motor vehicles in Subic Freeport.
Nilo Gret, president of the Quezon City Automotive Surplus Association, said the new IRR would adversely impact on their group which are engaged in sale of automotive parts.
Ben B. Perez, managing director of Ichiban Import-Export Corp. based in Subic Bay Freeport, said that Subic importers, however, have no problem meeting with the stringent roadworthiness and safety requirements of the proposed IRR but complained on the procedure of importation.
Based on the proposed IRR, importation of the allowable used motor vehicles (gross vehicle weight of 2.5 tons to 6 tons and above and special purpose vehicles), used engines, parts and components will be required of the Certificate of Authority to Import (CAI) from the Bureau of Import Services of the Department of Trade and Industry.
This is a new provision in the IRR which further tightens the requirements of used motor vehicles importation to discourage its entry and to ensure that only those allowed can enter the country.
For a company to be issued the CAI, it should pass the road worthiness and emission compliance certificate from the country of origin which must show compliance with the Philippine roadworthiness and emission standards. The CAI is valid only for a period of 60 days under letter of credit.
The importer shall secure from the DTI-BIS a release certificate that shall be used to release the used motor vehicles from the BoC and to register with the Land Transportation office (LTO).
The same requirements are also imposed on the importation of used vehicles by Balikbayans.
Importation of used motor vehicles without the CAI shall be subject to a penalty of P25,000 per unit.
On the importation of used engines, parts and components, the IRR has also the same requirements, but engines should not be more than 10 years old on the first year of the promulgation of the IRR and eight years from the second year of the promulgation of the IRR and five years old on the third year.
The BoI has given all sectors affected by the proposed IRR to submit their position no later than Friday, March 18.
BoI managing head Cristino L. Panlilio said that the IRR seeks to address the roadworthiness and safety issues of imported used motor vehicles and to limit the importation to the list of allowed trucks and special purpose vehicles such as firetrucks, ambulance, boom trucks, lighting trucks, self load trucks, among others.
