Roxas opposes grant of privileges to import SKDs

Trade and Industry Secretary Manuel Roxas II is against the granting of privileges to local car manufacturers to import SKDs or semi-knocked down vehicles.

"The government should level the playing field once and then close the door," Roxas said.

However, Roxas acknowledged the need, at the moment, to grant some exception.

"Some local car firms feel aggrieved that some other firms have been allowed to avail anew of SKD privileges," he said, adding that "those who felt aggrieved by exceptions will be allowed within reason."

Roxas however, pointed out that the prerogative to grant the exception is with Malacañang and not with the Board of Investments.

Roxas was referring to the new request of Ford Motor Company Philippines to bring in 1,000 SKD units of its compact sports utility vehicles, Escape.

Ford has appealed to Malacañang to be allowed to import SKD units following the earlier grant of the same privilege to Daimler-Chrysler and Proton Pilipinas Corp.

The privilege of local car firms to import SKDs had actually lapsed in 1997 and the discretion was left to Malacañang to grant the privilege on a case-to-case basis.

Other local car manufacturers such as Toyota Motors Philippines and Mitsubishi Motors Corp. have expressed their opposition to the continued grant of SKD privileges when under the Motor Vehicle Development Program (MVDP), all participants are suppose to shift to completely knocked down (CKD) assembly.

SKD packs are almost complete for batteries and tires and are slapped with a tariff rate of three percent, which is the same rate applicable on CKDs.

However, the local car firms have already invested in the assembly of CKDs complain that the SKD assembly is a step backward for the MVDP. According to Roxas, Malacañang has not yet asked him to comment about Ford’s new SKD request.