Philippines eyes re-export of some 600 used cars

Date of publication: 19/02/2013

 

The Cagayan Economic Zone Authority (Ceza) in the North are considering exporting used vehicles in the special economic zone in STA. Ana city entered as soon as the Philippine Government the clamping down on their resale in the country.

Ceza Administrator Jose Mari Ponce said that the Agency was considering export to Africa or Bangladesh some 600 vehicles that came into the country after the Supreme Court decision on January 7, the validity of Executive Order No. 156 confirmed.

The executive order, issued by then President Gloria Arroyo in 2002 prohibits the importation of used vehicles in the country, with some exceptions.

"We're trying to determine if there is a market in those areas is because if this ban permanent, our best option is to get the vehicles re-exported," said Ponce.

He said Cahill would adhere to the Supreme Court ruling, denying the accusations that the continuing arrival of shiploads of used cars in the Cagayan Special Economic Zone and Freeport (CSEZFP) was an act of resistance.

"So if the Customs [Office of] is now tell people to stop [processing the last shipment of used cars], then that's not our concern because our is a free port, and we are not violating laws, as long as these vehicles remain within the secure boundary" Ponce said.

On Thursday ordered Customs Commissioner Ruffy Biazon the district office in Aparri, Cagayan, which refers to the CSEZFP, to stop the processing of sending 200 used vehicles from South Korea, which arrived there on 11 February.

Biazon said this was a show of respect for the Supreme Court ruling, which, according to him, the Agency will fully maintain once final and executory.

A shipment for about 400 vehicles from Japan is expected to come to port Irene, CSEZFP the main port, on Thursday, Ceza officials earlier said.

Huge lose prevent

"Reexporting is one option that [second hand car traders] resort may be up to huge losses. Otherwise, if this industry really is closed, it will eventually turn into nothing but junk vehicles, "said Ponce, a relative of the Senate President Juan Ponce Enrile, who was behind the creation of the special zone and free port by the passage of the Act.

But even if used-car dealers, mainly for Messenger Multi resources Inc., the appellant in the recently decided case were looking for other legal means to avoid the folding of their industry millions-peso, Ponce Leon has started to look for alternatives, said.

Alternative livelihoods

"We are now also check the worst-case scenario that about 1,000 people will be left unemployed as this industry will stop. So we try to look for alternative living for them, "he added.

The Automotive Rebuilders industry of Cagayan (Aric) was not looking at the option of the imported vehicles reexporting.

"It will never lead to that point. We are convinced that [import used-car] Ceza will not be stopped because, as we have already said, this is authorized by Executive Order No. 418, and the [January 7] Supreme Court ruling has not yet decided on the validity of EO 156, "said Aric President Jaime Vicente.

Conflicting orders

EO 418 was released in 2005 by Arroyo and change to changes in tariff rates for imported used cars.

"So we have two contradictory orders here — one with which [implied] and one that prohibits. If [the Government] implements one, it makes the other inoperable, "he said.

Vicente said Aric of operations should not be hampered by the recent decision of the Supreme Court because it is not the most important issue of the case, but only the validity of the issuance of a warrant has decided.

"The last order (EO 418) has been declared constitutional by the Supreme Court with settlement finality; the other (EO 156) is still pending. So which one should prevail? "He told the Inquirer by phone yesterday.

 

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