Bataan Rep. Antonio Roman said under the law creating freeports in the country, the entry of vehicles, equipment, goods, and materials in these areas is not considered an importation and these products are thus exempt from Customs duties and other taxes.
It is when these products are brought out of the freeport zone that they become an importation and the appropriate duties and taxes must be paid, he said.
He said this is precisely what Subic importers and traders, many of whom are his constituents, are doing.
"They convert right hand drive (RHD) vehicles to left hand drive so they would not violate the law against the entry here of RHD, and they pay taxes," he added.
Roman pointed out that the legality of what Subic traders’ business has been upheld by the Department of Justice, the Office of the President and the Office of the Government Corporate Counsel.
Minority Leader Carlos Padilla suggested that if there is ambiguity in the law on whether vehicles and equipment brought to the freeport areas can be sold outside, the law should be amended.
Padilla said he found out during a recent visit to Subic that the sale of used vehicles and equipment "is an expanding and thriving business."
"We can no longer ignore it. Maybe, we should encourage it by amending the law to remove any ambiguity. We should also prescribe safety standards," he said.
Opposition Rep. Rolex Suplico of Iloilo said the Subic traders are giving low-and middle-income groups the chance to acquire affordable vehicles and equipment.
Rep. Teodoro Locsin Jr. of Makati said because of the entry here of used cars, people have a choice between high-priced brand new vehicles and second-hand units.
He said he could not understand the fuss over used vehicles.
For his part, Rep. Roque Ablan Jr. of Ilocos Norte said the government should encourage Filipino traders to tap the huge used vehicle and equipment market in Japan to modernize transportation and agriculture here.
"If we don’t take advantage of that market, others will," he said.
He said he discovered in his recent visit to Vladivostok that the Russians have started importing second-hand cars, trucks, bulldozers, excavators, and other equipment from Japan. – Jess Diaz