Subic importers welcome SC ruling on used vehicles

SUBIC BAY FREEPORT – Importers of used vehicles in the Subic Bay Freeport welcomed yesterday the decision of the Supreme Court that voided portions of Executive Order (EO) 156 which banned the entry of used vehicles into Subic.

Peter Geroue, president of the Motor Vehicle Importers Association (MVIA) in the Freeport, said they feel "positive" about the ruling because it clarified that Subic is a separate Customs territory.

"I think it’s a win-win solution that was made by the Supreme Court and everybody will be happy with it," Geroue told The STAR. "This is because the Supreme Court rightly cited Republic Act 7227, otherwise known as the Bases Conversion and Development Act, which allows the free flow of goods and capital in Subic."

"We, the members of the MVIA, will definitely abide with the ruling," he added.

The 26-page decision issued by the Supreme Court effectively voids the inclusion of the Subic Bay Freeport Zone in Article 2, Section 3.1 of EO 156, that prohibits the importation of used motor vehicles into the country.

However, it also declared that the same order was valid in the Philippine Customs territory or those outside the fenced-in portion of the former Subic Naval Base.

"Hence, used motor vehicles that come into the Philippine territory via the secured fenced-in former Subic Naval Base area may be stored, used or traded therein, or exported out of the Philippine territory, but they cannot be imported into the Philippine territory outside of the secured fenced-in former Subic Naval Base area," the Supreme Court also said in its decision.

Geroue said this arrangement would even allow the government to monitor the importation of second-hand vehicles when Subic is the only legal entry point.

Subic Bay Metropolitan Authority (SBMA) deputy administrator for legal affairs, Carlitos Cruz said the Supreme Court ruling is "good for everyone."

"The decision is Solomonic and well-crafted. It favors Freeport-registered companies and allows them to keep importing and trading, and it also recognizes the authority of the SBMA to protect the entrepreneurs inside the Freeport," Cruz said.

He said the SBMA could expect more revenues because of the Supreme Court decision since it has imposed a $100 processing fee for every vehicle brought into the Subic Freeport Zone.

Thousands of skilled workers also rely on the used vehicle industry here for their income.

According to the SBMA Labor Center, the various used vehicle traders in Subic used to employ more than 5,000 skilled workers before EO 156 took effect.

The displaced workers included mechanics, electricians, painters and machinists, who come from Olongapo City, Zambales, Bataan and other provinces in Central Luzon.

Geroue also pointed out that even local government units and businessmen benefited from the used car industry here because they could avail of low-cost vehicles, including fire trucks, ambulances, dump trucks and other equipment, from Subic importers.

He added that sub-contractors for big government projects like the Subic-Clark-Tarlac Expressway would also charge high hauling fees if they would have to use new dump trucks in their operations.

With the expected resumption of used car trade here in Subic, Rory Puno, president of the Golden Elements, Inc., a used car importer here, said that the 23 members of the MVIA would be instrumental once again in helping the SBMA create more jobs for skilled workers.

"If at the start each MVIA member hired 25 workers for the various phases of operation, then you will have close to 600 workers who would again be earning a living to feed their families," Puno said.