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Author Topic: Subic auctioneer seeks review of ban on second-hand truck imports  (Read 2170 times)
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« on: October 18, 2010, 10:30:23 AM »

 
From a report by Christina Mendez in the Philippine Star:

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A leading auctioneer of imported second-hand trucks has asked the Senate committee on ways and economic affairs to review executive order 887-A signed by former President Arroyo on the ban on the importation of second-hand trucks and heavy equipment.

In separate letters to ways and means committee chairman Senator Ralph Recto and economic affairs chairman Senator Manny Villar last Oct. 16, United Auctioneers Inc. president Dominic Sytin said that about 120,000 workers will be displaced once the ban is enforced.

President Arroyo signed last June 3 the EO otherwise known as the Comprehensive Motor Vehicle Development Program or EO 887-A, which bans the entry of imported used vehicles but allows the entry of imported used trucks, special purpose vehicles such as firetrucks and ambulances, and heavy equipment.

The Department of Trade and Industry is said to be crafting an Implementing Rules and Regulations (IRR) that could effectively prohibit businesses like United Auctioneers Inc. to import the said vehicles.

“In a period of less than 12 years, auction of used trucks and heavy equipment has evolved into a major industry than can greatly impact the country’s economy. In our “unreserved” auctions, we cater to contractors, fish dealers, haulers, farmers, LGU’s, families, and other average income people from all imaginable walks of life,” Sytin said.

Sytin said these clients, composed of various small and medium enterprises (SMEs) and multi-sectoral association, have expressed fears that if the ban is imposed, the cost of private and government infrastructure projects will increase and that the escalation in overhead could result in mass layoff.

Sytin added the importations have generated billions of pesos worth of revenues for the government by way of taxes and duties collected by the Bureau of Customs and port charges and rental paid to SBMA.

View EO 877 here
 
« Last Edit: October 18, 2010, 12:56:30 PM by Forum Admin »

Education is what remains after one has forgotten what one has learned in school. (AE)
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« Reply #1 on: October 18, 2010, 11:02:15 AM »

 
In relation, posted 07 October 2010 by Ben De Vera of Manila Times:

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A REGIONAL trial court in Caga-yan upheld the prohibition on imported second-hand vehicles under the government’s old motor vehicle program, according to a lobby group. In a statement on Wednesday, Fair Trade Alliance said the ruling of Aparri Regional Trial Court Judge Oscar Saldivar last month denied the motion for reconsideration filed by the Association of Rebuilding Industries in Cagayan (Aric), which sought the exemption of the Port Irene from the prohibition on importing used vehicles.

The court had junked Aric’s petition for injunction.

FairTrade said the decision of the Cagayan court would “provide more revenues for the government and could improve the viability of our local car assemblers and vehicle parts manufacturers as well as preserve jobs of workers within the industry.”

“The decision is consistent with the Supreme Court ruling in Executive Secretary vs. Southwing Heavy Industries decided on February 20, 2006, wherein the high tribunal prohibited the importation of used vehicles outside of the secured fenced-in former Subic Naval Base area,” FairTrade said.

The prohibition on imported used vehicles is a provision of Executive Order (EO) 156, or the Motor Vehicle Development Program (MVDP) issued in 2002.

The Board of Investments is drafting the implementing guidelines of EO 877-A, or the Comprehensive Motor Vehicle Development Program (CMVDP), which would replace the MVDP.

The CMVDP retains the provision prohibiting the entry of used vehicles and also restricts the entry of used engines, parts and components imports.

 

Education is what remains after one has forgotten what one has learned in school. (AE)
gabriella
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« Reply #2 on: October 18, 2010, 04:29:52 PM »

Does the EO matter? You still see those everywhere anyway.
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« Reply #3 on: October 18, 2010, 04:39:32 PM »

Does the EO matter? You still see those everywhere anyway.
Nailed it.  Wink
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« Reply #4 on: October 20, 2010, 01:13:43 PM »

 
From a report by Mario Casayuran of the Manila Bulletin:

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When the battle between second-hand importers and brand-new truck assemblers is over, the latter wins but the common man loses.

Dominic Sytin, president of United Auctioneers Inc. (UAI), said to be the leading importer of second-hand trucks, stressed this in a letter to the Senate asking it to take the cudgels for some 120,000 workers who stand to be displaced once the ban on importation of second-hand trucks and heavy equipment is enforced.

In letters to Sen. Ralph G. Recto, chairman of the Senate ways and means committee, and Sen. Manuel Jr., chairman of the Senate economic affairs committee, Sytin said the fate of these workers would be doomed once Executive Order 887-A signed by former President Gloria Macapagal Arroyo last June 3 is implemented.

Known as the Comprehensive Motor Vehicle Development Program, EO 887-A has expanded EO 156 that bans used vehicle importation but exempts trucks, special purpose vehicles such as fire trucks and ambulances, and heavy equipment.

The new EO and the subsequent implementing rules and regulations (IRR) bans the importation of used right-hand drive trucks.

The Department of Trade and Industry (DTI) is said to be crafting an IRR that would be used in effectively prohibiting locators like UAI to import right hand drive trucks.

Click here for full report:
 

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hadronstorm
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« Reply #5 on: October 21, 2010, 05:45:33 AM »

d masa r not those who can afford cars, even 2nd hand.  Embarrassed
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« Reply #6 on: February 14, 2013, 11:47:10 AM »

 
From the Philippine Daily Inquirer, 3:48 am, Thursday, February 14th, 2013:

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Following a slump in the sales of new motor vehicles in the country, then President Gloria Macapagal-Arroyo issued Executive Order No. 156 on Dec. 12, 2002, banning the importation of used vehicles (except light trucks, buses and special-purpose vehicles).

While the order was meant to strengthen the local automotive industry and deter smuggling, three groups of vehicle importers questioned the validity of the executive order in the Olongapo Regional Trial Court, which later nullified portions of EO 156.

The Court of Appeals later upheld the decision, but in February 2006, the high tribunal allowed the importation of used vehicles only through the Subic Special Economic Zone.

In addition, the court ruled that the vehicles “may only be stored, used or traded, or exported out of Philippine territory, but [these] cannot be imported into the Philippines outside of the secured fenced-in former Subic Naval Base area.”

The vehicle importers filed motions for clarification and reconsideration, which the Supreme Court denied in August 2006.

A final ruling by the Supreme Court, issued on Oct. 30, 2007, denied the motion of the Motor Vehicles Importers Association of the Subic Bay Freeport to sell used cars outside the free port.

In 2008, the American Chamber of Commerce noted in an internal draft report that the used-car import business at Port Irene in Santa Ana, Cagayan was “illegal and contrary” to EO 156.

The report said that the Cagayan Economic Zone had already imported 8,000 vehicles in 34 months, or an average of 225 a month, most of which were sold in the Philippines in violation of the executive order.

Defending the importation of used cars in his home province, Sen. Juan Ponce Enrile said that EO 156 was unconstitutional and that the Supreme Court was wrong in upholding it. He also denied allegations that Cagayan had become a smuggling haven.

Challenging Arroyo’s authority to issue the order, Enrile argued that only Congress could ban the importation of used items.

Following the controversy, the Automotive Rebuilding Industry of Cagayan (Aric) filed a petition assailing the constitutionality of the order in the Regional Trial Court in Aparri, which led to the issuance of a temporary restraining order on the implementation of EO 156.

In September 2010, the Aparri RTC ruled against an injunction appeal made by Aric, and affirmed the ban on the importation, registration and distribution of second-hand vehicles at Port Irene.

In 2011, a Court of Appeals ruling lifted the ban on car importation at the free port.

In a decision dated Jan. 7, 2013, the Supreme Court Second Division set aside the ruling of the Court of Appeals and reinstated the decision of the Aparri RTC.

“We found EO 156 a valid police-power measure addressing an ‘urgent national concern,’” the ruling said.—Inquirer Research

 

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yoda
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« Reply #7 on: February 15, 2013, 04:21:06 PM »

What happens to the conversion shop near 14th gate, we'll see.

When nine hundred years old you reach, look as good, you will not.
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« Reply #8 on: February 24, 2013, 06:11:56 AM »

 
From a report by Melvin Gascon on the Inquirer Northern Luzon:

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STA. ANA, Cagayan—A day before Customs Commissioner Ruffy Biazon was scheduled to have a firsthand look at the used-car importation trade at the free port here, Senate President Juan Ponce Enrile on Tuesday visited the coastal town of Lal-lo to test its new runway.

This is going to be the runway of a new airport being built where Chinese tycoons reportedly will park their private planes instead of the crowded Hong Kong hangars.

The visit of Enrile, who sponsored the creation of the Cagayan Special Economic Zone and Freeport (CSEZFP) here, fueled speculation that his trip was in connection with the problem besetting the used-car importation industry at the free port.

A source, who asked not to be named for lack of authority to speak on the matter, said Enrile arrived with a small group from Metro Manila on an eight-seat plane at 11 a.m. They landed on the strip of the unfinished airport in Lal-lo town, about 40 km from here.

From the airstrip, Enrile’s convoy of at least seven vehicles motored to the senator’s private resort at Gotan beach in San Vicente village here.

Nilo Aldeguer, Cagayan Economic Zone Authority (Ceza) senior deputy administrator, however, dismissed speculations that Enrile’s sortie was in connection with the problem confronting the used-car trade here.

“Pahinga lang (Enrile is there only to take a rest),” Aldeguer said in a telephone interview.

Biazon order, visit

Enrile’s visit came a day before the scheduled arrival of Biazon at the CSEZFP on Wednesday, who is set to inspect the activities at the free port after issuing an order to the agency’s field office here to stop the processing of the latest shipment of more than 200 imported vehicles that arrived here on Feb. 11.

A second shipment of about 400 vehicles is set to arrive on Feb. 22 or 23, officials said.

Biazon issued the order after the Supreme Court, in a Jan. 7 ruling, upheld the validity of Executive Order No. 156, which imposed a ban on the importation of used cars, except for buses, trucks and multipurpose vehicles.

A group of used-car traders, the Automotive Rebuilders of Cagayan Inc. (Aric), has protested the ruling and insisted that its operations cannot be stopped because the verdict is not final and executory.

Aric president Jaime Vicente said he was not aware of Enrile’s visit. “I have no way of knowing because I am here in Manila right now,” he said.

Inspection

Enrile said he stayed all day Tuesday in Lal-lo town where he and a representative of the Civil Aviation Authority of the Philippines inspected the runway under construction.

Enrile sent word to the Inquirer through Senate President Pro Tempore Jinggoy Estrada that Lal-lo was neither in Port Irene nor on the premises of Ceza.

Senate old-timers are aware that Enrile spends time in Cagayan when Congress is in recess.

Officials of Forerunner Multi Sources Inc., one of only two Ceza-licensed car importers, as well as owners and managers of car trading firms were not in their offices when the Inquirer visited the car lot in Casambalangan village here on Tuesday.

Prospective buyers

But it was business as usual for personnel, who were working on the imported units while prospective buyers roamed from one car lot to another to pick the best vehicles to buy.

A group of Australians who, sources said, were officials of a drilling company at a natural gas exploration project in Gattaran town, was seen checking on Mercedes SLKs and Hummers that were on display at the car lot occupied by New Apollo International Trading Inc.

In another lot, a family of five from Aparri town was looking around for a used van.

Hangars were occupied by busy workers performing repairs, conversion, cleaning and refurbishing of Japanese and Korean cars and vans.

Vicente said used-car importers were continuing their business operations because they believe that the Supreme Court decision was not yet final, and that it did not have any impact on the legality of their trade.

“We go on because we believe we do not have any reason to stop,” he said in a phone interview, noting that his group is considering seeking legal action against Biazon.

Guarded caution

But unlike in the past, those involved in the used-car trade here showed a sense of guarded caution, especially in dealing with strangers, mostly aware of the controversy that hounded the industry the past several days.

“It’s not safe talking these days. We can get fired,” said a worker when asked about the work he was performing on a Hyundai Starex van.

The mood here contradicted pronouncements of Ceza officials that their operations were transparent. They belied charges that they were allowing the smuggling of used cars following the Supreme Court ruling that upheld EO 156.

Sales slowed

Most of the workers declined to be interviewed, while others answered questions but did not reveal their identities.

“Sales have been quite slow since news broke out that some officials want this [used-car trade] stopped. But we’re still here. When they tell us to stop working, then we’ll go home,” said a mechanic.

At the gates, security guards said reporters were banned from the fenced yard. The taking of pictures was also prohibited.
Vicente said the workers feel agitated these days that their main source of livelihood was threatened.—With a report from Cathy C. Yamsuan

 

Education is what remains after one has forgotten what one has learned in school. (AE)
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« Reply #9 on: February 24, 2013, 06:13:49 AM »

 
From a report by Melvin Gascon on the Inquirer Northern Luzon:

Quote
A shipment of 446 used luxury cars, sport utility vehicles, sedans and vans arrived at Port Irene here on Saturday, even as a controversy continues to rage over the legality of such importations in the face of a Supreme Court ban and despite a moratorium that the government has issued against their registration.

The MV Zambales, a Panamanian-registered cargo vessel, docked at the pier here at 8:30 a.m. amid rain and wind that delayed its arrival by 18 hours.

Officials of the Cagayan Economic Zone Authority (Ceza), which oversees the port’s operations, have dismissed allegations the arrival of the car shipment was in defiance of a Supreme Court ruling that reinstated a government ban against the entry of used vehicles into the country.

At 10 a.m., the shipment was cleared for unloading by a boarding team representing the customs, quarantine and immigration bureaus. At 1 p.m., the ship’s ramp was lowered and stevedores began unloading the vehicles that originated from Yokohama, Japan, and Kaohsiung, Taiwan.

Leilani Alameda, deputy collector of the Bureau of Customs here who was on the team that inspected the cargo, said the processing of the shipment would be deferred because of standing orders from Customs Commissioner Ruffy Biazon.

“This (inspection) is part of our mandated function to inspect cargo arriving in the country. But we are under strict instructions not to entertain any applications to have these processed, until further notice,” she said.

Based on a shipping manifest obtained by the Inquirer, the shipment contained about 30 Hummers, 53 Mercedes Benz sports cars, 21 BMWs of various models, seven Porsches consisting of 911, Boxster and Carrera models, a Ferrari F335 Berlinetta and a Lamborghini Murcielago.

The shipment also included high-end, off-road trucks and SUVs. The rest were passenger vans, sedans and miniwagons.

 

Education is what remains after one has forgotten what one has learned in school. (AE)
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