Government to ban used car imports

The Department of Trade and Industry (DTI) hopes to be able to finally implement this month the government’s policy banning the importation of used cars.

The DTI has finalized the draft executive order (EO) and will send it to Malacañang next week for President Arroyo’s signature.

The EO clearly sets the government’s policy on the importation of used vehicles as part of its commitment to strengthen the Motor Vehicle Development Program (MVDP).

Among the policy measures to be included in the EO will be a total ban on imports of used cars, while a selective ban will be imposed on light vans such as ambulances, firetrucks, dumptrucks and the like.

Government sources said there is also a provision in the EO allowing for the seizure of imported used cars except those under the balikbayan privilege.

Trade and Industry Secretary Manuel Roxas II said there will be no compromise on used car imports.

"But in the case of light vans and trucks, the government is still studying the possibility of allowing the importation of light vans or trucks even though there are some local manufacturers of such vehicles," Roxas said.

He said that unlike the local car manufacturing industry which has grown with the Philippine economy, "the light van or truck manufacturing will never grow to the same extent as the car industry."

Roxas, however, said that Subic Bay Freeport investors and locators will still be allowed to import vehicles for use only within the freeport.

"Such vehicles will not be allowed to enter the Philippine Customs territory," Roxas said.