SBMA suspends importation of ‘regulated’ used vehicles

SUBIC BAY FREEPORT – In an effort to establish a clear-cut policy on importation and trading of second-hand vehicles, Subic Bay Metropolitan Authority (SBMA) Chairman Felicito Payumo has ordered the temporary suspension of the issuance of importation permits except for those categorized as liberalized items.

Payumo also suspended the granting of business permits to all new companies here, particularly those engaged in importation and trading of second-hand motor vehicles.

"In view of all issues raised by different government agencies regarding the legality of importation of second-hand motor vehicles and further in view of coordination of the groups, I have found it best to temporarily suspend the issuance of permits to import second-hand vehicles and also suspend the application releases of trading firms who wish to do business in Subic," Payumo said.

Payumo stated that this is the best action to do at a time like this wherein different government agencies have been questioning the legality of vehicle importation into Subic Bay Freeport complex.

The SBMA chair further stated that his decision would give him enough time to clearly assess the situation and at the same time come with clearer rulings on importations.

During the suspension, Payumo and several key officials of the SBMA will be in constant meeting with officials from the Land Transportation Office (LTO).

However, the SBMA will still allow the continued issuance of import permits to motor vehicles categorized as "liberalized goods" which include Sports Utility Vehicles (SUVs), trucks and heavy equipment as imposed by the World Trade Organization (WTO) ruling.

Last week, LTO chief Roberto Lastimoso, who visited the freeport, expressed no objection for the continued importation and registration of used motor vehicles as long as it complies with safety and environment standards set by the government.

Lastimoso met with officials of the SBMA along with importers and auctioneers represented by Eddie Barretto, president of the Motor Vehicles Importers Association of Subic Bay Freeport, Inc.

Importers have agreed on the conditions set by Lastimoso who immediately ordered the lifting of the suspension for the registration of motor vehicles shipped into the Port of Subic particularly from LTO-accredited importers and auctioneers.

Barretto said that they welcome the move to suspend temporarily the issuance of permits. He added that this period gives enough time for questioning agencies to find out that traders like him follow the rulings on importations imposed upon by the WTO.

"We welcome this move and we know that in time, they will find out that trading firms here follow to the note all rulings imposed upon by the WTO," Barretto stated.

The SBMA and the LTO is expected to come up with a settlement 10 days from the effectivity of the suspension.