ILAGAN CITY: Customs Commissioner Ruffy Biazon will oversee the seizure of imported cars arriving at the Cagayan Economic Zone Authority (CEZA) in Santa Ana town.
Biazon is expected to be at the special economic zone in time for the arrival of 400 used cars from Japan today in the face of the Supreme Court (SC) decision against used car importation.
Biazon said the Bureau of Customs (BOC) would move to stop the processing of papers of imported used cars for resale in deference to the SC decision.
The Land Transportation Office (LTO) also said it will not process the sale of the imported vehicles. This will proceed even after CEZA officials said the imported vehicles will be kept within the confines of the special economic zone in deference to the recent SC decision.
CEZA said it is now considering re-exporting the used vehicles to other countries if the SC affirms with finality its decision against the importation of used cars.
The arrival of the used cars today is the second shipment of imported vehicles at the Freeport after 200 units came in last February 11.
This came after the SC affirmed Executive Order 156 that prohibits the importation of second-hand vehicles at CEZA.
The EO, issued in 2002 by then President Gloria Macapagal-Arroyo, imposed a nationwide ban on the entry of used vehicles into the country, except for trucks, buses and special purpose vehicles.
Jaime Vicente, president of the Automotive Rebuilders Industry of Cagayan, one of the major stakeholders in the used car importation business inside the economic zone, maintained the government has nothing to lose in the importation of used cars.
He said revenue generated by the sale of used cars goes to the government through the BOC.
“This is aside from the revenues being collected by LTO, (Bureau of) Immigration, CEZA and other government agencies. You can just imagine the economic significance of the industry for the country,” Vicente said.
He said the BOC is generating close to P400m a year from the used car importation industry at CEZA.
Vicente argued the revenues would be lost once the SC affirms with finality EO 156.
Vicente said former president Arroyo had recognized the “economic soundness” of CEZA’s used car importation business by issuing Executive Order 707, which established the BOC district office as a mere sub-office.
“This came after the dramatic increase of revenue and job activities inside the economic zone.
The creation of regular (Customs) district office inside the Freeport was in recognition of President Arroyo on the economic soundness of the industry,” he said.
Vicente said EO 707 was issued even after EO 156, now the subject of legal controversy.
Freeport officials had pointed out the Supreme Court ruling does not cover the arriving shipments since they had already issued the import permits for them before the high tribunal upheld the import ban.
The Philippine Star
