Auto parts makers back drive vs smuggling

MANILA, Philippines - Local auto parts makers support the continued crackdown on smuggled used vehicles, citing that the crackdown would help the industry grow.

Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) president Ferdinand Raquelsantos said in a statement yesterday the group backs the fight against smugglied used vehicles.

“We hope that the current administration continues its drive against vehicle smuggling so that the Philippine automotive and parts making industries may finally take off,” he said.

Last week, the Bureau of Customs secured its first conviction under the Run After The Smugglers campaign as the Court of Tax Appeals (CTA) convicted an auto trader who misdeclared his vehicle shipment as replacement truck parts.

In its decision dated December 12, the CTA ruled that auto trader Roell Sayson was guilty of violation of the Tariff and Customs Code of the Philippines.

The case stems from the BoC’s findings in February 2008 that shipments of Sayson declared as used truck replacement parts were actually used sports utility vehicles of which six units were Kia Sportage and three units of Hyundai Galloper.

Such are prohibited importations under Executive Order No. 156 which covers the country’s Motor Vehicle Development Program.

The CTA cited that estimated taxes and duties due to the government for the shipments amounted to  P1.78 million.

Raquelsantos said this development bodes well for the domestic auto industry.

“This persistent influx of smuggled second-hand vehicles has been pinpointed as a major cause of the underdevelopment of our local auto manufacturing,” he said.