New MVDP guidelines ready by Sept 30

The Board of Investments (BOI) will complete by Sept. 30 this year new guidelines for the Motor Vehicle Development Program (MVDP).

BOI managing head Gregory Domingo said the review of the guidelines is necessary because of several events that have taken place that affects the MVDP.

This includes the effectivity of the Common Effective Preferential Tariff (CEPT) scheme and the passage of a new excise tax bill.

Likewise, the BOI is in the final stages of formulating its Automotive Export Program (AEP) which would provide export incentives for completely built-up (CBU) units.

"A review of the guidelines is necessary to determine if the existing criteria and policies are still appropriate for the current environment," Domingo said.

"However, the new criteria that may be drawn up would only apply to new registrants," he added.

The MVDP, as contained in Executive Order 156, sets forth the rationalization of excise taxes; the prohibition of used vehicles except for special purpose vehicles; restructuring of the Most Favored Nation (MFN) tariff rates; an export incentives program and the extension of the ASEAN Industrial Cooperation Scheme (AICO).

The goal of the revised MVDP is to promote the Philippines as a regional hub for the production of motor vehicles, parts and components.

The local automotive industry directly employs 40,000 workers and generates at least $1 billion in export revenues for the country.