800 imported cars grounded at CEZA

BAYOMBONG, Nueva Vizcaya, Philippines – More than 800 imported used cars remain grounded inside the Cagayan Economic Zone Authority (CEZA) on orders of the Bureau of Customs (BOC).

Dealers of used cars said the BOC has prevented them from processing their papers for commercial purposes outside the CEZA based on Executive Order (EO) 156 issued during the Arroyo administration.

Last month, Jaime Vicente of Fenix (CEZA) International Inc., one of two accredited used car importers at CEZA, filed contempt of court charges against Executive Secretary Paquito Ochoa Jr., Finance Secretary Cezar Purisima, Customs Commissioner John Philip Sevilla, Land Transportation Office (LTO) director Alfonso Tan Jr., and CEZA Administrator Jose Mari Ponce.

A court in Aparri, Cagayan postponed the scheduled Feb. 7 hearing on the legality of importation of used cars in the absence of respondents as well as lawyers from the government.

Fenix accused respondents of “deliberate disobedience” of a Supreme Court (SC) decision allowing the importation of second-hand motor vehicles at the special economic zone through Port Irene in Santa Ana, Cagayan.

Fenix asked the court to issue a temporary restraining order and/or preliminary mandatory injunction against the BOC memorandum implementing EO 156.

Fenix said respondents continue to deny the processing of the permits of the imported used cars despite an SC resolution affirming the legality of EO 418 allowing the importation of used cars.

Last year, another Cagayan court declared that EO 418 issued three years later has superseded EO 156.

Fenix said the SC decision declared that only EO 418’s Section 2 requiring additional P500,000 as tariff duties for every imported used car was void and unconstitutional.

“The rest of the (EO 418) provisions were held valid and effective,” he said.

In short, the SC in the Fenix case declared with finality that importation of used motor vehicles is allowed, subject to the payment of regular tariff rates.

The used cars arrived at Port Irene in Santa Ana, Cagayan in three batches, with the first shipment consisting of 347 units last Dec. 14; 266 units on Jan. 3; and 234 units on Jan. 27.

Gov’t to limit onion imports

The government is trying to limit importation of onions.

Director Clarito Baron of the Bureau of Plant Industry (BPI) told the House of Representatives committee on good government yesterday that the Department of Agriculture (DA) and BPI have issued import permits for only 22,000 tons (22 million kilos) of onions between 2011 and 2013.

Agriculture Secretary Proceso Alcala has approved the importations, he added.

 A multi-sector task force that includes importers and farmers’ representatives recommend, based on surveys on production, inventory and demand, whether importation would be necessary, Baron said.

The good government committee conducted a hearing on a resolution of Dasmariñas City Rep. Elpidio Barzaga, who accused a group of monopolizing the importation of onions and garlic.

Baron denied that DA and BPI favored any importer.

“They farm out import permits to all our accredited importers, whether individuals or farmers’ cooperatives,” he said. – With JessDiaz, Paolo Romero