Customs seizes 38 used cars at Cagayan freeport

MANILA, Philippines - Customs agents seized 38 used cars as these were about to be driven out of the Cagayan Special Economic Zone and Freeport (CSEZF).

These included 2003 and  2005 model Hummers H2, a 2000 Nissan Serena, a 2003 Honda Fit, a 2001 Toyota BB, a 2004 Toyota Sienta, and a 2002 Toyota Alfard.

Customs Commissioner John Sevilla said bringing used vehicles outside the CSEZF is legal.

“It will only become illegal when they bring out the used vehicles from the CSEZF into the rest of the Philippines Customs territory,” he said.

Sevilla said the legal basis for the seizure is Executive Order 156 issued during  the Arroyo administration banning the importation of used cars except for light trucks, buses and special purpose vehicles like fire trucks and ambulances.

He issued a warrant of seizure to stop the vehicles from being taken out of the freeport in compliance with a Supreme Court ruling.

Sevilla said they are still identifying the people   behind the attempt to bring the cars out of CSEZF.

“Filing an entry declaration is an indication that you have the intention of bringing the goods into the rest of the Philippines,” he said.

Sevilla said he has sent a team to Port Irene in Cagayan to examine the vehicles and assess if they fall under the category of banned used cars.

“As a result of the examination they did not fall under the exemptions, that is why we issued a warrant of seizure,” he said.

The 38 cars were reportedly part of hundreds of second-hand cars imported through Port Irene in three batches.

The first shipment of 347 units arrived last Dec. 14 and the second batch of 266 units came in last Jan. 3.

Sevilla said they are still studying several proposals on what to do with the seized vehicles.

Two options are to destroy the vehicles or to have them publicly auctioned, he added.

Sevilla said the Tariffs and Customs Code of the Philippines is strict on how to dispose of seized cars, when asked if it was possible to donate them to areas that Typhoon Yolanda had devastated.

“It is not in the law,” he said. “The emotions have nothing to do with this.”

Sevilla had instructed Port of Aparri acting district collector Leilani Alameda to stop the processing of used vehicles being taken out of the CSEZF for commercial sale.

Records show the 38 used cars arrived from South Korea last Jan. 27 and were allegedly imported by Fenix (CEZA) International, Inc.