Auto industry backs P.5-M tax on used car imports

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), the Philippine Automotive Association (PAA) and the Automotive Industry Workers Alliance (AIWA) yesterday urged the government to strictly implement existing laws and regulations on vehicle importation, safety, roadworthiness and emission.

At the same time, the four automotive industry groups expressed their support for the passage of a Lemon Law that would govern the rights and obligations of the buyer and seller of motor vehicles.

In a media forum yesterday, CAMPI president Elizabeth Lee welcomed the issuance of a Customs memorandum banning the entry of right-hand vehicles and a Malacañang Executive Order imposing a P500,000 specific duty on imported second-hand vehicles.

Lee reiterated that the local automotive industry continues to suffer because of imported second hand vehicles.

He cited the high volume of motor vehicle registrations last year of around 260,000 when the actual output of the local car industry was only over 88,000 units.

Eddie Jose, president of the MVPMAP, for his part agreed that higher local motor vehicle production would result in higher auto parts manufacturing which currently employs about 44,000 workers and resulted in exports of $1.8 billion worth of autoparts.

The PAA, according to its president George Blaylock, for his part welcomed the passage of a local Lemon Law.

According to Blaylock, a local lemon law would benefit the local automotive industry which relies on repeat clients.

By offering quality and dependable service, Blaylock said, the automotive manufacturers and dealers would ensure repeat business.

A local Lemon Law, he said, would be able to set parameters in dealing with so-called "lemon" cars especially since at present, there are no guidelines to deal with such instances of defective vehicles.

AIWA president Frank Mero agreed with CAMPI that imported used vehicles adversely affect the local automotive industry which provides more employment compared to the claimed employment generated by the automotive rebuilding industry in the Subic free port.