Government to seize unregistered foreign used cars at CEZA

BAYOMBONG, Nueva Vizcaya – The government’s Cagayan Economic Zone Authority yesterday said it would take custody of all foreign used cars whose importers failed to have them processed before last week’s lapse of a court-issued temporary restraining order (TRO) against a CEZA directive stopping their importation, registration and sale. 

According to Julian Gonzales, operations manager of the CEZA-managed International Port of Irene in Santa Ana town here, only those imported second-hand vehicles, which had been processed by the Land Transportation Office and Bureau of Customs before the termination of said TRO would be allowed to leave the free port.

Meanwhile, Gonzales, also the port’s principal engineer, said the national government stands to lose millions of pesos in taxes once the used car importation business here eventually closes shop. 

“The government indeed will lose millions of pesos in tax and other revenues, like LTO and customs charges and import taxes, but we cannot do anything but to follow the orders of the court,” said Gonzales, also the port’s operations chief.

“We will just let the impounded cars be left inside the free port, as no one will be able to bring them out,” he said.

Earlier, Santa Ana town Mayor Vic Rodriguez said that hundreds of their constituents are in danger of losing their jobs if the court affirms President Arroyo’s Executive Order No. 156, banning the importation of second-hand cars in all ports of the country. 

“Not only those directly employed with the car importers and right-hand converters will be affected but also those indirectly benefiting from the business in the free port since this means less business for them,” he said.

The constitutionality of EO 156 has been the subject of a court case filed by the Automotive Rebuilding Industries of Cagayan led by its president, Jaime Vicente, who argued that the President’s directive does not cover Port Irene since the car importation trade at said port did not yet exist at the time of the issuance of said order.

At present, ARIC had to terminate the services of more than 800 workers directly employed with their trade since the 17-day TRO against a CEZA directive for the implementation of EO 156 had lapsed last week.

Moreover, in a move to intensify his campaign against car smuggling, Assistant Secretary Alberto Suansing, has ordered an investigation into LTO personnel that has allowed the registration of imported vehicles into the country. – With Rainier Allan Ronda