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Sunday, November 20, 2005
Court asked: Stop increase in import fee
CEBUANO traders are asking the court to stop some of the country’s top officials from implementing an order that is “in essence” a ban on imported used motor vehicles.
Executive Secretary Eduardo Ermita, Finance Secretary Margarito Teves, District Collector Ma. Lourdes Mangaoang and Acting Customs Commissioner Alexander Arevalo were named in the petition.
Businessman Russ Jao, who earlier tangled with law enforcers over alleged smuggling of right-hand-drive vehicles, filed the petition with the Regional Trial Court Branch 19.
The other petitioners are William Lim, Jean Lopez, Rosalinda King, Roger and Allan Crisologo and Arvin Mopon, all of whom are in the business of importing used motor vehicles.
They are represented by Manila-based lawyer Angel Gatmaitan.
The petitioners are against the enforcement of Executive Order 418, which modified the Tariff and Customs Code of 1978, specifically on the “tariff rates of import duty on used motor vehicles.”
Specifically, the traders oppose the imposition of a flat rate of P500,000 on each imported used motor vehicle. The figure used to range from P15,000 to P70,000.
Jao and his co-petitioners also questioned several provisions of the executive order.
Indirect ban
They said the excessive increase is to “indirectly ban the importation of used motor vehicles.”
“The effect of such indubitably prohibitive level of tax is to make the business of selling used and imported vehicle non-competitive and utterly prohibitive as against new motor and imported vehicles and locally assembled motor vehicles using imported engines and parts,” the petition read.
The traders also assailed that such increment is “unconstitutional,” stating that the order was without Congress approval.
“Under the Constitution, the executive cannot legislate laws. Hence, EO 418 had usurped the legislative powers,” the petition read.
Ermita was named respondent since it is his duty to impose executive orders. Teves was included because it is his task to formulate fiscal policy, oversee revenue generation and resource mobilization, as well as supervise over importation and exportation of goods through the Bureau of Customs.
The customs officials were implicated since it is the customs commissioner who enforces the tariff and customs laws and the district collector collects customs duties, taxes and other charges. (JGA)
(November 20, 2005 issue)
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