DTI pushes EO to extend auto export program

MANILA, Philippines - The Department of Trade and Industry (DTI) is pushing for the signing of an executive order that will extend the life of the Auto Export Program (AEP) in order to encourage overseas sales of locally assembled vehicles.

In an interview, Trade Secretary Gregory L. Domingo said that they will take advantage of the month and a half session break of Congress to convince President Aquino to sign the AEP.

“We will push for it,” Domingo said. The president has to wait for the Congress term break before signing any EO.

The original AEP has already expired. Out of all the auto manufacturers here, only Ford Group Philippines availed of the AEP.

In a separate interview, Board of Investments (BOI) managing head Cristino L. Panlilio said the government will cut in half the export requirement in the AEP in an attempt to encourage more local manufacturers to sell completely build up (CBU) units overseas.

“We are looking at cutting in half the quota in the export plan,” Panlilio said. Firms must be able to export 10,000 units in order to avail of the incentives.

 “It is harder to export because of the conditions and the agreements (free trade agreements) that the government is entering,” Panlilio said. “We are still studying the possible solution to this problem.” He said that even with incentives it has been difficult to export vehicles.

“What is the point of coming out with the export program if no one will avail. We have to think out of the box now,” Panlilio added.

Car manufacturers have already submitted their position paper to the BOI. Auto firms asked the government to strengthen the domestic base before encouraging firms to export locally manufactured vehicles (LMV).