Subic car rebuilders dispute Gordon’s allegations
By Marianne V. Go, The Philippine Star
The Motor Vehicle Rebuilding Industry of Subic (MVRIS) disputes the recent privilege speech of Sen. Richard Gordon regarding the importation of used vehicles into the Subic Freeport.
In a statement, the MVRIS answered point by point the issues raised by Sen. Gordon.
On the issue of the conversion of right hand drive (RHD) vehicles to left hand drive (LHD) within the freeport, the MVRIS pointed out that the issue is nothing new even though Sen. Gordon made it appear that he had discovered something new.
In fact, the MVRIS cited the fact that the issue has been the subject of public hearings in Congress for the past two years.
The House committee on transportation and the committee on trade and industry, the MVRIS said, had already concluded in committee report No. 2157 that: There is no pertinent and existing law being violated by the entry into the Subic Freeport of RHD vehicles; there is also no law prohibiting the conversion of RHD vehicles into LHD within the freeport and in a facility duly accredited by the SBMA; as long as proper taxes and duties are paid and all test requirements on roadworthiness, safety and environmental compliance are met, passed and certified, converted vehicles may leave the Subic Freeport for any part of the Philippines territory; and the importation of RHD and second-hand vehicles is not resulting in huge revenue losses for the government. On the contrary, it has caused an increase in tax collection and has created business and employment.
The MVRIS accused Sen. Gordon of having selective memory.
They said that it was during Sen. Gordon’s term that an international auctioneer, Ritchie Brothers, started importing used RHD vehicles from Japan to Subic.
The MVRIS challenged Sen. Gordon that if the importation of RHD vehicles into Subic is illegal, "why is it now being allowed into Port Irene inside the Cagayan Freeport and special economic zone?"
The MVRIS contends that the importation of RHD vehicles is legal that is why Sen. Juan Ponce Enrile is also allowing it in Cagayan, otherwise, Sen. Enrile would not allow it.
On Executive Order 156 which bans the importation of used vehicles, the MVRIS is citing the ruling of the Olongapo Regional Trial Court and which was upheld by the Court of Appeals that EO 156 is unconstitutional.
The Supreme Court, the MVRIS said, has not reversed the CA affirmation of the Olongapo RTC ruling.
On the issue of smuggling and underpayment of duties and taxes, the MVRIS argues that Gordon should not put the blame on the SBMA in determining the correctness of the duties and taxes paid since that is the job of the Bureau of Customs.
Instead, the MVRIS questioned Sen. Gordon on his own decision allowing the non-payment of ad valorem taxes on imported brand new luxury vehicles by the addition of jump seats that allowed them to be classified as 10-seaters and at the time be exempt from payment of the required taxes.
The MVRIS has documents showing that some 238 luxury vehicles were not properly taxed an estimated P335 million during Sen. Gordon’s term as SBMA head.
The MVRIS also took a potshot at the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) which has been against the motor vehicle rebuilding industry.
CAMPI, the MVRIS said, has not been doing its part in increasing the local value-added of locally manufactured vehicles in spite of government incentives and decades of pampering.
Instead, the MVRIS accused, "they are mostly assembling completely knocked down (CKD) units for cars and importing completely built-up (CBU) units for sport utility vehicles to which they only add tires and batteries.
On the roadworthiness and environmental compliance of imported used vehicles, the MVRIS replied that such vehicles are inspected and tested by two test centers which issue certificates of compliance which is required by the Land Transportation Office (LTO) before such vehicles can be registered.
The Motor Vehicle Rebuilding Industry of Subic (MVRIS) disputes the recent privilege speech of Sen. Richard Gordon regarding the importation of used vehicles into the Subic Freeport.
In a statement, the MVRIS answered point by point the issues raised by Sen. Gordon.
On the issue of the conversion of right hand drive (RHD) vehicles to left hand drive (LHD) within the freeport, the MVRIS pointed out that the issue is nothing new even though Sen. Gordon made it appear that he had discovered something new.
In fact, the MVRIS cited the fact that the issue has been the subject of public hearings in Congress for the past two years.
The House committee on transportation and the committee on trade and industry, the MVRIS said, had already concluded in committee report No. 2157 that: There is no pertinent and existing law being violated by the entry into the Subic Freeport of RHD vehicles; there is also no law prohibiting the conversion of RHD vehicles into LHD within the freeport and in a facility duly accredited by the SBMA; as long as proper taxes and duties are paid and all test requirements on roadworthiness, safety and environmental compliance are met, passed and certified, converted vehicles may leave the Subic Freeport for any part of the Philippines territory; and the importation of RHD and second-hand vehicles is not resulting in huge revenue losses for the government. On the contrary, it has caused an increase in tax collection and has created business and employment.
The MVRIS accused Sen. Gordon of having selective memory.
They said that it was during Sen. Gordon’s term that an international auctioneer, Ritchie Brothers, started importing used RHD vehicles from Japan to Subic.
The MVRIS challenged Sen. Gordon that if the importation of RHD vehicles into Subic is illegal, "why is it now being allowed into Port Irene inside the Cagayan Freeport and special economic zone?"
The MVRIS contends that the importation of RHD vehicles is legal that is why Sen. Juan Ponce Enrile is also allowing it in Cagayan, otherwise, Sen. Enrile would not allow it.
On Executive Order 156 which bans the importation of used vehicles, the MVRIS is citing the ruling of the Olongapo Regional Trial Court and which was upheld by the Court of Appeals that EO 156 is unconstitutional.
The Supreme Court, the MVRIS said, has not reversed the CA affirmation of the Olongapo RTC ruling.
On the issue of smuggling and underpayment of duties and taxes, the MVRIS argues that Gordon should not put the blame on the SBMA in determining the correctness of the duties and taxes paid since that is the job of the Bureau of Customs.
Instead, the MVRIS questioned Sen. Gordon on his own decision allowing the non-payment of ad valorem taxes on imported brand new luxury vehicles by the addition of jump seats that allowed them to be classified as 10-seaters and at the time be exempt from payment of the required taxes.
The MVRIS has documents showing that some 238 luxury vehicles were not properly taxed an estimated P335 million during Sen. Gordon’s term as SBMA head.
The MVRIS also took a potshot at the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) which has been against the motor vehicle rebuilding industry.
CAMPI, the MVRIS said, has not been doing its part in increasing the local value-added of locally manufactured vehicles in spite of government incentives and decades of pampering.
Instead, the MVRIS accused, "they are mostly assembling completely knocked down (CKD) units for cars and importing completely built-up (CBU) units for sport utility vehicles to which they only add tires and batteries.
On the roadworthiness and environmental compliance of imported used vehicles, the MVRIS replied that such vehicles are inspected and tested by two test centers which issue certificates of compliance which is required by the Land Transportation Office (LTO) before such vehicles can be registered.
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