CEZA's used car imports seen to generate P200 million annually

BAYOMBONG, Nueva Vizcaya, Philippines – The recently-revived used car importation industry at the Cagayan Economic Zone Authority (CEZA) could generate an additional revenue of at least P200 million for the national coffers.

CEZA senior deputy administrator Nilo Aldeguer said that with the used car importation back on track inside the zone’s free port, the hundreds of workers displaced by the importation ban three years could now be re-hired.

Then President Arroyo, in her Executive Order 156, banned the importation and re-sale of second-hand or used vehicles in the country, including inside economic zones like the CEZA, resulting in the displacement of livelihood of thousands of residents.

However, the Court of Appeals (CA), in its June 28 resolution, nullified Arroyo’s used car importation ban, paving the way for the revival of the industry.

“We welcome the CA decision. This means that the more than 1,000 workers of the car rebuilding industries in CEZA would again be given livelihood,” he said.

Likewise, the CEZA official said, the National Government can again look forward to having P200 million in revenue collection from the used car importation industry.

“This in addition to the thousands of other local residents who will be indirectly benefited through employment in other businesses like car rebuilding and related livelihood activities generated from the revival of the industry,” he said.

Engineer Julian Gonzales, CEZA officer-in-charge, said that since last week 500 slightly-used cars from Korea and Japan have already arrived at the zone’s international Port Irene in Santa Ana, Cagayan since the importation ban was lifted last month.  

The arrival of the used cars into said port was the first in three years after then President Arroyo ordered the ban amid reports that CEZA-accredited used car importers were importing or smuggling in luxury cars or brand new ones even if they were not supposed to be covered by the import scheme.

In its decision, the CA’s 14th division granted the petition of one of the CEZA-based used car importers, Forerunner Multi Resources Incorporated, stopping the Arroyo order, which prohibits the importation of used cars.

Since its creation in 1995, the CEZA Freeport has already generated millions of pesos of investments, which include port operations, aviation, real estate, tourism and gaming facilities, telecommunications and software development.