CA reverses lower court on used car imports issue

Government has scored a victory against used car importers. The Court of Appeals, in a resolution, has prevented the Olongapo City Regional Trial Court from issuing an injunction against the implementation of a ban on used car imports.

The CA resolution was issued last Oct. 27 by CA Associate Justices Marina Buzon, Sergio Pestano and Jose Mendoza. Olongapo City RTC branch 27 Judge Eliodoro Ubiadas issued last March 3 a writ of preliminary injunction against the implementation of a ban on used car imports. Ubiadas issued a subsequent order enforcing the injunction last Aug. 19.

Ubiadas’ injunction has stymied government’s move to strengthen the local automotive industry by preventing competition from used car importers.

Executive Order 156 or the Motor Vehicle Development Program bans the importation of used cars.

However, used car importers from Subic were able to get an injunction from Ubiadas on the ground that the Subic Bay freeport has a separate charter which allows the importation of used vehicles.

The CA has directed Ubiadas and other respondents of the case to show cause within 10 days why the injunction being sought by the government should not be granted.