Court stops registration of imported second-hand cars

The Olongapo Regional Trial Court has issued a three-day temporary restraining order (TRO) which will be effective starting Aug. 31 against the registration of used vehicle imported through the Subic Bay Freeport.

The TRO was issued based on a case filed by the Philippine Automotive Association (PAA) which is trying to stop the importation of second-hand vehicles.

The three-day TRO expires on Monday, Sept. 2.

The PAA is hoping to get another 20-day TRO while its case is being heard and eventually secure a permanent injunction preventing the registration of imported second-hand vehicles.

The PAA, whose members include local automotive franchise holders and car dealers, is questioning the legality of the used vehicle importation in Subic especially since the vehicles are sold domestically and not re-exported.

As a freeport, importation into Subic is legally allowed as long as the vehicles are for use within the freeport or are then re-exported.

Industry observers said that Subic importers have been able to find a way to register the vehicles after supposedly paying the corresponding duties and taxes.

"They (importers) are then able to sell the imported vehicles in the local market, competing against locally assembled vehicles," they said.

Local carmakers have warned that the imported vehicles are right-hand drive and are only being converted to left-hand drive.

If not property converted, the vehicles could pose a danger to the driver and passengers, they said. – Marianne Go