According to CAMPI president Elizabeth Lee, a "low volume-higher export base" would attract more participants to the AEP instead of the current policy of "high volume-low export base."
At present there is only one participant in the AEP because of the required export volume of 10,000 CBUs a year.
Lee felt that by lowering the required export volume and allowing autopart exports to be included, the AEP could attract more participants.
The BOI is still finalizing plans for the inclusion of autoparts manufacturing under the AEP.
The program provides incentives, in the form of tax credits, to participants.
Unfortunately, there is only one participant in the program – Ford Motor Co. Philippines.
Other local assemblers, such as Toyota Motor Co. are already into autoparts manufacturing and export.
However, the current AEP has no provisions for autoparts exports.
The BOI, however, has been crafting an autoparts export program to provide the same incentives as the AEP.
Recently, the government provided an additional incentive to participation in the AEP by exempting participants in the AEP from a temporary increase in the import duty on big engine vehicles.
Under Executive Order 419, registered participants in the Automotive Export Program (AEP) are exempted from the so-called "gas guzzler" tax.
EO 419, which was signed by President Arroyo just this April 4, imposes a 25-percent tariff on imported completely built-up units (CBUs) with an engine displacement of over 2,100 cc.
Previously, the tariff on imported big engine CBUs was only 20 percent.
The gas guzzler tax is being imposed for a period of one year starting this June supposedly as an energy conservation program.
Lee, who is also the senior vice president for marketing of Universal Motors Corp., helped unveil Monday night UMC latest variant of its popular pick-up vehicles.
UMC formally unveiled Monday night its T3 titanium pick-up which is geared more for the lifestyle conscious buyers.
The pick-up is a bit pricey at P930,000 but offers premium feature such as a Clarion radio system with an MP3 player, roof rack and leather seats.