Ban on used motorcycle imports sought

Local motorcycle manufacturers are asking the government to ban the entry of used motorcycles, saying they are stunting the growth of the industry.

According to Motorcycle Development Program Participants Associaton (MDPPA) president Mateo B. Ocenar, used motorcycles eat up about 10 percent of the industry’s market.

Ocenar said motorcycle sales managed to pick up this year, with sales of 203,000 units, below their target of a 10-percent growth or about 220,000 units.

According to Ocenar, motorcycle sales could easily grow by 30 percent if government controls the entry of used motorcycles.

The MDPPA, Ocenar said, has written the Board of Investments (BOI) to complain and seek the inclusion of motorcycles in the government’s move to ban the entry of used, second-hand vehicles.

Government’s failure to include and specify motorcycles, Ocenar complained, has provided a loophole for the uncontrolled entry of motorcycles into the country.

Smuggled motorcycles from China and Taiwan normally enter the country through Curimao, Cebu and Zamboanga, Ocenar revealed.

The used motorcycles cost as low as P8,000 and government does not earn any revenues from them.

On the other hand, locally-manufactured motorcycles pay the proper taxes and tariffs.

Legally imported motorcycles are subject to a 25-percent tariff.

The members of the MDPPA are Honda Philippines, Kawasaki Motors Philippines Corp., Norkis Trading Company Inc., Suzuki Philippines Inc. and S.C. Kymco Pilipinas, Inc.