Auto group bucks Norkis importation of SKD units

The Philippine Automotive Federation Inc. (PAF) is also opposing the importation by Norkis Automotive Resources Corp. (Norkis) of 7,500 semi-knocked down (SKD) units of Chrysler vehicles.

The PAF is echoing the earlier objection of the Motor Vehicles Parts Manufacturers Association of the Philippines to the approval given by Malacañang to Norkis to import an initial 1,000 SKD units this year, followed by another 2,500 units in 2002 and another 3,500 units in 2003.

"The authority given to Norkis to import SKD units is devoid of any legal basis," Vicente T. Mills Jr., PAF president said.

Mills said under MO No. 437 dated April 18, 1998, which amended MO No. 346 (Guidelines of the Motor Vehicle Development Program), the guidelines for the importation of the SKD units were deleted. "The intent of the amendment was to disallow from that time onwards the importation of SKD units," he said.

Mills said even the extension for another 18 months of Norkis’ expired license to import the balance of 500 SKD units is highly questionable considering that even under MO 346, previous to its amendment by MO 437, the SKD importation privilege could only be granted for a maximum period of 12 months.

"In addition to the legal infirmity of the order of former Executive Secretary Ronaldo Zamora, the import authority given to Norkis would seriously put into question government’s program to develop the local parts manufacturing industry," Mills said, adding that "instead of promoting the localization of components, the SKD import authority completely undermines the interest and viability of the local parts manufacturing industry." – Marianne Go