DTI, BOI still studying IRR for 2nd hand vehicle importation

MANILA, Philippines - Two government bodies are still stud-ying the implementing rules and regulations (IRR) for the second hand vehicle component of the Motor Vehicle Development Plan (MVDP) as the debate on whether or not to allow the use of converted right hand vehicles continues.

A well placed industry insider who spoke under the condition of anonymity said that the secretary of Trade and the managing head of the Board of Investment (BOI) are still studying if the government should limit the importation of second hand vehicle to only “original left hand vehicles.”

This means that converted imported second hand vehicles are not allowed to enter the country and if ever they come in through the freeports like Subic, they are not allowed to leave the freeport.

The source said that there are preliminary studies that show that converted left hand drive vehicles are unsafe and can cause accidents. The source said that no one really checks the road worthiness of vehicles specifically the converted trucks if they are safe to drive in the Philippines.

The move to tighten the restrictions on the importation of second hand vehicles is being opposed by the importers. At the same time, the source said some lawmakers are also against this.

The source said that this particular problem is expected to be resolved so that the IRR can be forwarded to President Aquino.

In a last ditch effort to convince the government to finally craft the IRR, the private sector has commissioned a study that will provide the best incentives in order to help the industry.

This means that the IRR for the MVDP, which should have been completed last August, will be pushed back until the completion of the study. The study will be done by end of February.

Panlilio said the study is being funded by various auto industries. When asked if the study will be pro auto industry given that they paid for it, Panlilio said that they will not follow the study to the letter. “We have an option to reject it.”