Grace period mulled for used vehicle importers

Importers of used vehicles may be given a grace period to comply with the provisions of Executive Order No. 156 which bans the importation of used cars weighing up to 2.5 tons.

This was revealed yesterday by Board of Investments (BOI) Managing Head Gregory Domingo who said that "there may be some legitimate businesses affected."

He said government is still drafting the Implementing Rules and Regulations (IRR) of EO 156 which would define if there is a grace period.

Domingo said a grace period is being studied in view of the remaining inventory of used cars that some importers still have.

He admitted that if a grace period is extended the issue of whether the importers can still sell their remaining inventory must also be defined in the IRR.

On the other hand, if the government decides not to grant a grace period, Domingo said the IRR must also define what would be done to the remaining inventory.

Issues such as the possible payment of taxes or exemption of such vehicles must also be defined in the IRR, Domingo said.

However, while government is still formulating the IRR, Domingo said importers can no longer import used cars.

EO 156 specifically bans the importation of used cars but allows the continued importation of special purpose vehicles and motor vehicles weighing 2.5 tons and above.

The weight restriction is aimed at protecting the local car industry and small sports utility vehicles.

However, vehicles weighing 2.5 tons and above would affect light trucks and some heavy pick-up vehicles.