Importation of used cars by SBMA legal – Government Counsel

The Department of Trade and Industry (DTI) has lost another battle, this time on the used car importations of the Subic Bay Metropolitan Authority (SBMA).

Based on the legal opinions of the Office of the Government Corporate Counsel (OGCC), the Department of Justice and the Office of the President, the SBMA is allowed to freely import right-hand drive vehicles as it is considered to be a separate customs territory.

According to SBMA chairman Felicito C. Payumo, Republic Act 7227 mandates that the SBMA "shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital within, into and exported out of the Subic Special Economic Zone."

The DOJ opinion, likewise, cited that "the act of bringing into the Philippines of such goods will not constitute importation within the meaning of R.A. 8506 which prohibits the importation and use of RHD vehicles in the country."

Based on those three legal opinions, Payumo said that "unless I am specifically directed by competent government authorities to stop allowing importation of RHD vehicles, the SBMA has no reason not to assert the freeport status of Subic."

Payumo added that "Secretary Roxas is right in saying that there are gray areas in the implementation of government rules and regulation on importation of second-hand vehicles, but he may be wrong in saying that R.A. 8506, the Act banning the importation, registration and use of RHD vehicles, is applicable in Subic."

The SBMA chief said that between opinions of the DTI, OGCC, DOJ and the Office of the President, "the SBMA will take the last three."