CEZA to re-export 600 used cars; bad weather delays shipment

STA. ANA, Cagayan, Philippines – The Cagayan Economic Zone Authority (CEZA) plans to re-export the 600 used cars instead of selling them locally.

CEZA administrator Jose Marie Ponce said yesterday they are considering exporting the vehicles either to Africa or Bangladesh following the government’s refusal to issue clearance for registration of the shipment from South Korea.

This developed as the arrival of the latest shipment of second-hand cars here yesterday was delayed by bad weather.

Officials said they are instead expecting the arrival of the shipment at 6 a.m. today.

The first shipment of 200 used cars arrived at CEZA in Port Irene last Feb. 16 and were held by the Bureau of Customs (BOC) following a Supreme Court (SC) ruling upholding the constitutionality of Executive Order 156.

The EO, signed by former President Gloria Macapagal-Arroyo in 2004, banned the importation of second-hand vehicles.

Four hundred more used vehicles are expected to arrive in Port Irene this week, which is currently being personally monitored by Customs Commissioner Ruffy Biazon.

Biazon earlier ordered the Customs district office inside the freeport to stop the processing of papers of the imported used cars in deference to the SC decision on Jan. 7.

The Land Transportation Office (LTO) also said it will not process the sale of the imported vehicles.

Ponce maintained they have not violated the law since the imported vehicles are still inside the freeport zone.

Besides, the import permits were obtained for the latest two shipments before the SC ruling.

Jaime Vicente, president of the Automotive Rebuilders Industry of Cagayan (ARIC), one of the major stakeholders in the used car importation business inside the economic zone, said that at least 4,000 used cars were processed for resale last year.

He said the government has nothing to lose in the importation of used cars. Instead, the industry generated revenues close to P400 million for the national coffers through the Customs office last year.

This is aside from the other multimillion-peso collections made by LTO and other concerned government agencies from the used-car importation business, he said.

Vicente described the SC decision as a “big blow” to the industry since hundreds of potential buyers of imported used cards already recalled their reservations.

“It hurts us so much. The harm has been done. We will have a hard time to recover even if such decision will be reversed, as our reputation has been tarnished,” Vicente lamented. – With Charlie Lagasca