Auction of imported used vehicles illegal, says Roxas

Trade and Industry Secretary Manuel Roxas II said over the weekend that the auction of imported second-hand vehicles is indeed "illegal."

However, Roxas said he is not yet ready to take action and stop such auctions until the government determines whether the entry and auction of imported second-hand vehicles is a violation of the Customs Code, the Car Registration Act or the manufacturers’ policy.

"If it’s a violation of the Customs Code, then it should go to the Bureau of Customs. If it’s a violation of the Car Registration Act, the Land Transportation Office has jurisdiction. But if the importers violated the manufacturers’ policy, the Board of Investments could hear the petition," Roxas said.

The DTI is looking into the petition of local truck manufacturers to restrict the importation of second-hand diesel vans carrying more than 10 passengers.

According to the Truck Manufacturers Association of the Philippines (TMAP), the entry of second-hand vehicles has significantly eaten into their market.

Local motor vehicle manufacturers have also complained about the influx of second-hand imported vehicles especially through auctions in Subic, Malinta and Valenzuela.

They warned that aside from killing the local industry, such vehicles also pose a danger to consumers because they do not carry any guarantees and do not conform with any safety and environmental regulations.