Roxas nixes compromise on used car imports issue

Trade and Industry Secretary Manuel Roxas II is not in the mood for a compromise on the issue of used car imports.

"The policy is quite clear," Roxas said, adding that used car imports "are not allowed except under three exceptions, which are — balikbayan, special purpose vehicle and 10-seater diesel vehicles."

Roxas said "the challenge is in the operationalization or the implementation of the Republic Acts and Executive Orders (governing used car imports)."

For instance, Roxas said, importation of right-hand drive vehicles is clearly not allowed. If the right-hand drive (RHD) vehicle was brought in through the Port of Manila, he said, it would not be allowed into the country.

The grey area comes in when the vehicle is brought into the country via a freeport such as Subic, Roxas said. The question, according to Roxas is: "Is Republic Act 8506 applicable in Subic or not?"

Roxas pointed out that there are laws in which we can not exercise any discretion. "The laws are quite clear. Under RA 8506, no right-hand vehicle is allowed in the country."

However, Roxas pointed out, if RA 8506 is not applicable in Subic, "that has to be made very clear either by some regulation or some action by Congress, because an RA is an RA."

Subic Bay Metropolitan Authority (SBMA) chairman Felicito Payumo is calling for some possible compromise.

Under existing rules, vehicles imported in the freeport are supposed to be for use only within the area. If it is taken out, the corresponding taxes and duties have to be paid.

That loophole has been exploited by some importers who bring in vehicles and then auction them off to buyers who are then able to take them out of the freeport by merely paying for their registration and some taxes. — Marianne Go