Court stops enforcement of EO 142

SUBIC FREEPORT – An Olongapo City regional trial court has stopped the enforcement of President Arroyo’s Executive Order 142, which requires owners of all imported vehicles to get revenue clearances before they can renew their vehicle registration.

A House delegation that visited the freeport over the weekend learned that Judge Eliodoro Ubiadas (RTC Branch 72) issued an injunction last Friday directing the executive branch, particularly the Bureau of Internal Revenue (BIR), Bureau of Customs and the Land Transportation Office (LTO), from enforcing EO 142.

The executive order, which Mrs. Arroyo issued last November requires owners of imported vehicles to get BIR and Customs clearances — even if duties and taxes have already been paid on their units — before they can renew their registration with the LTO.

Ubiadas issued the temporary injunction after hearing a petition filed by Asia International Auctioneers Inc. (AIA), United Auctioneers Inc. (UA), Auction in Malinta Inc., and Estanislao Cesa Jr. and Marc Raymundo Cesa.

AIA and UA are big Subic freeport-based auctioneers, while the other firm is operating in Malinta, Valenzuela. The Cesas were buyers of imported motor vehicles from AIA.

In issuing his order, Ubiadas said "the court finds that the petitioners have established a clear legal right for the issuance of a writ of preliminary injunction."

He noted during the hearings that the complainants have paid import duties and taxes on their vehicles and the corresponding fees for registration with the LTO.

He found merit in the argument of the petitioners that owners of imported motor vehicles should not be required to get BIR and Customs clearances because the actions of these agencies should be presumed regular and without fraud.

He said the evidence presented by the complainants indicates that "these government offices regularly performed the functions of their duties in regard to the collection of import duties and taxes and the registration of motor vehicles."

"This is a presumption in law and unless rebutted by the government, the right of the petitioners requires protection from the law," he stressed.