MANILA, Philippines – The Land Transportation Office (LTO) vowed yesterday to review the records of at least 7,000 vehicles that were imported by the Automotive Rebuilding Industry Cagayan (ARIC) and entered the country through Port Irene in Santa Ana, Cagayan in the last three years to determine if the necessary taxes on the vehicles have been paid.
“We will conduct an inventory to insure that proper taxes were paid for the imported vehicles,” LTO chief Alberto Suansing told The STAR.
The inventory was an offshoot of the statement of ARIC president Jaime Vicente that at least 7,000 vehicles were imported by their group and were processed at the Cagayan Economic Zone Authority (CEZA) in Port Irene.
Vicente insisted the importation of secondhand cars is legal and aboveboard, and welcomed the separate investigations being conducted by the Senate and the Presidential Anti-Smuggling Group (PASG).
“We have paid the corresponding taxes, amounting to over P100 million, and all the cars were assessed by the Bureau of Customs based on book value and street line depreciation method by the Commissioner of Customs,” he said.
Aside from the Custom duties of the secondhand vehicles, the importers have also paid taxes with the Bureau of Internal Revenue, and the LTO.
Vehicle owners are required to secure passes from CEZA authorities before being allowed to go out from the freeport.
Suansing said before an imported car is allowed to get out of the freeport, it must be cleared with the BOC and BIR before the LTO can register the vehicle.
“We will check with our office in Aparri if the records of ARIC jibe with our database,” he said.
ARIC reported that more than 7,000 vehicles were imported in the past three years but only one percent of them can be considered as luxury vehicles, and the rest are passenger and commercial vehicles with prices ranging from P150,000 to P400,000.
Vicente also clarified that the issue on the executive order issued in 2002 that banned the importation of secondhand cars covers only the Subic Bay Freeport while the case of CEZA is still pending in court.
Cagayan provincial officials welcomed the probe on alleged smuggling of secondhand cars in Port Irene.
Gov. Alvaro Antonio denied reports of smuggling at CEZA, but he and other local officials support the investigation on the operations of the freeport. – With Charlie Lagasca, Evelyn Macairan
Nilo Aleguer, CEZA senior deputy administrator, expressed surprise over the allegation of smuggling made by the American Chamber of Commerce (AmCham).
“Why are they (AmCham) singling out CEZA when we are a freeport. Before an imported used vehicle is released, all the taxes, duties, fees for the government are collected, that’s why there is no smuggling because taxes are paid,” he said.