AmCham hails gov’t effort to curb car smuggling

The American Chamber of Commerce of the Philippines (Amcham) has lauded government’s efforts to curb the illegal entry of used cars that resulted to the growth in the sales of motor vehicles in the country.

Amcham executive director Robert Sears said the group is backing Secretary Margarito Teves. He lauded the government’s programs against smuggling.

“These increases reflect both positive macro-economic performance of the Philippine economy and the efforts of government to end the widespread smuggling of used passenger vehicles, abetted by corrupt Bureau of Customs and Land Transportation officials, against whom disciplinary actions are being taken under your RATS (Run After The Smugglers) program. We commend and encourage continued efforts to establish greater rule of law in the administration’s anti-smuggling campaign,” said Sears in a letter to Finance Secretary Margarito Teves.

Used vehicles reportedly illegally enter the country through the Subic Bay Freeport in Zambales.

In the first four months of 2008, auto sales in the country reached nearly 40,000 units. Total industry sales in 2007 were 117,903 units compared with 99,541 units in 2006, an 18.4 percent growth in sales volume.

But Amcham said that while the car business in the country has shown positive signs, it was also noticeable that the Philippine market is still in low gear.

“The Philippines is regaining its auto sales volumes, although the domestic market still remains below its pre-Asian financial crisis peak of 160,000 units in 1996,” Sears said.