BOC sets guidelines on car importations

The Bureau of Customs (BOC) will issue the guidelines imposing duties and tariffs on brand-new and second-hand cars that have been imported without paying the applicable levies.

BOC commissioner Antonio Bernardo said the bureau is preparing the guidelines for owners of cars who brought their vehicles into the country direct from abroad.

According to Bernardo, the BOC is estimated to raise some P50 to P100 million worth of duties from this guideline which would require car owners to declare their imported vehicles for proper assessment.

Although most of the major automotive manufacturers have official distribution facilities in the country, there are still some high-end vehicles that were being imported directly by end-users.

The guideline, according to Bernardo, would define the type and model of the vehicles imported directly by end-users and the applicable duty and tariffs depending on the classification.

On the other hand, the Department of Finance (DOF) has not reached a decision on whether it would allow the duty-free importation of second hand luxury vehicles through the Subic Free Port.

The DOF said that although the government generated additional revenues from the regular auctions there is still a need for a formal and systematic study of its impact on local car assemblers.

The DOF explained earlier that the defunct Economic Coordinating Council, a government-private sector team mandated to address economic issues, had ordered the suspension of the auction of imported vehicles in the Subic Bay Freeport.

The decision to suspend vehicle sales was prompted by complaints of car assemblers that the Subic auctions posed unfair competition.

Most of the vehicles were imported by companies operating inside the zone, such as Subic Auctioneers International and Asia International Auctioneers that have been conducting regular auctions.

The vehicles sold at the auctions included luxury vehicles such as vans, sports utility vehicles, jet skis, big bikes and other luxury cars. Light and heavy equipment such as fork lifts were also sold through the auction.

According to the DOF, the vehicles sold in Subic cost less than locally assembled ones since they were free from taxes and duties when they arrive in the free port. Some were also cheaper because they were slightly used.

Malacanang was reportedly willing to allow Subic auctioneers to resume the auctions but on a limited scale.

Businessmen have been telling the government that only low- to mid-price models should be brought there and not the luxurious sport utility vehicles. – Des Ferriols