P-Noy vows to curb car smuggling, lauds auto industry

MANILA, Philippines – President Aquino said his administration is determined to stop vehicle smuggling and vowed to keep the country from becoming like a jeepney that’s “outmoded but simply chugging along.”

“How often have we heard that our nation is a jeepney? We have to rev things up, to go from the service road of slow growth, to the expressway of high growth,” Mr. Aquino yesterday told participants and visitors to the 3rd Philippine International Motor Show held at the World Trade Center in Pasay City.

“I know this feeling – there is no greater sense of freedom than taking the wheel on a smooth highway,” he said.

The President said his government was bent on making changes happen, including stopping car smuggling.

“I think rather than talking about it we should be demonstrating it. I understand that the Customs will be filing a new case specifically against person who evaded appropriate duties of vehicles imported,” Mr. Aquino said.

In his speech, the President lauded the automotive industry for its exceptional performance.

Mr. Aquino cited figures from the Department of Labor and Employment showing that 74,700 Filipinos were employed as vehicle assemblers, distributors, parts and components manufacturers, and vehicle dealers.

“Most of these workers are breadwinners for over half a million dependent family members. In short, more than 500,000 Filipinos get to put food on their tables. Thank you for your help,” Mr. Aquino said.

“With a total investment amounting to P100 billion, you have contributed over P20 billion in duties and taxes to the national account. Your withholding taxes amount to an estimated P325 million annually. This means additional funds your government can devote to delivering basic services, such as more classrooms or better hospital facilities for our countrymen,” he said.

Mr. Aquino said taxes from the automotive industry are used to build 500 classrooms every year.

“It’s good to note that business is good. You have registered a 37.1 percent sales increase during the first six months of 2010, and it is good to hear you continue to expect business to be brisk. You have increased your growth target to 11 percent, which suggests an opportunity to be at par, in terms of quality and delivery, with our Asian counterparts, in terms of your industry,” Mr. Aquino said.

“The story these numbers tell is clear: it is the story of an industry that is resilient and stable. It is the story of an industry with increasing confidence. It is a story full of promise of further growth that will bring more opportunities in the coming years as a result of our improved capabilities to offer more competitive products in terms of cost and quality,” he added.

In 2009, industry sales reached 132,444 units for motor vehicles and motorcycles, over a million units short of the existing plant capacity of about 1.19 million units.

“If our nation’s recent history has taught us anything, it is that all of us must draw our strength from others who surround us. Let us utilize the tools and facilities at our disposal; let us maximize the partnerships you can form with local supplemental industries such as steel, rubber, plastic, chemicals, paints, to name just a few,” he said.

“These partnerships will not only generate employment and financial security for millions of our people, but will also jumpstart the local production of reasonably priced passenger cars, empowering our small and medium manufacturers, and ensuring a vigorous Philippine automotive industry,” he said.

Mr. Aquino likewise praised industry efforts to address environmental crisis with the use of alternative fuels.

“These include alternatives to fossil fuels such as liquefied petroleum gas already used by most taxis in Metro Manila, compressed natural gas used by some bus companies, ethanol blended in gasoline fuel, and cocomethyl ester, a coconut-based fuel blend recommended for diesel engines,” he said.

“Our administration is eager to rebuild this nation with you. We are eager to show the world what the Filipino can do; we are eager to restore our national dignity. We are eager to write the next chapter in the story of our people and our nation,” Mr. Aquino said.

“One thing is clear: our people have come united under a single banner, and that is the banner of hope. Fueled by renewed optimism, we are shifting to a higher gear: towards progress and prosperity,” he said.

“It’s about time the economy rages. The Philippines is once again open for business. Gentlemen and ladies, start your engines. The race is on,” Mr. Aquino said.

On a lighter note, Mr. Aquino also admitted missing driving fast cars.

“I must confess: driving peacefully on a smooth, empty highway is one of my favorite luxuries. I did manage to get behind the wheel a few times despite my hectic schedule, much to the horror of my security people,” he said.

“Nowadays, I am clearly deprived, and I know my passion for driving fast cars will have to take a backseat for now,” Mr. Aquino said.

Charges filed

Criminal charges have been filed against officers of a vehicle import firm for their alleged defrauding of the government of over P68 million in duties and taxes for luxury cars.

The Bureau of Customs said Reynaldo Pazcoguin, president of Viking Haulers Inc.; Rodelito Biag, vice president; and Ofelia Pazcoguin, corporate secretary, allegedly violated the Tariff and Customs Code of the Philippines when they wrongfully declared 10 units of different luxury vehicles imported from January to May as simply “motor vehicles” so that they could pay less tax.

Customs broker Benjamin Valic and several other unnamed officers of BOC have been included in the charge sheet for possibly complicity.

Customs Commissioner Angelito Alvarez told reporters that VHI managed to bring out three Lamborghinis, three Porsches, three Mercedes-Benzes and a Masserati Quadroporte after paying only P17.4 million in import taxes instead of P85.8 million.

Alvarez also noted that records would show that for a 2010 model Lamborghini Gallardo, Viking paid only over P3.2 million instead of P10.6 million.

A 2010 model Mercedes-Benz SL 65 which arrived April 20 was released after payment of only P1.1 million, or P9.1 million less than the correct duties and taxes. – With Edu Punay