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Sunday, October 27, 2002
DOJ ruling ok's sale of right-hand drive vehicles
A RULING by the Department of Justice has cleared the way for the sale by customs officials of seized "right-hand drive" vehicles.
In a 3-page legal opinion, Justice Secretary Hernando B. Perez said the vehicles "may be sold under such restrictions as will insure its use for legitimate purposes only."
Customs Commissioner Antonio M. Bernardo had earlier sought a DOJ opinion to rule on whether the Bureau of Customs (BOC) can legally auction seized and forfeited right-hand drive vehicles that had been declared contraband items under RA 8506.
The said law declared it unlawful the act of importing, registering, or operating a vehicle with its steering wheel on the right-hand side.
RA 8506 was passed following numerous complaints from the public arising from accidents involving RHD vehicles, most of which are container van haulers and similar heavy cargo trucks.
Existing RHD trucks are required by law to undergo mandatory conversion before they can hit the road anew.
Some critics claim the conversion process is usually haphazard and is prone to safety problems.
The BOC said the seized vehicles, although considered contraband items, have commercial value and may be legitimately used if they are properly converted to left-hand drive vehicles by a duly accredited shop.
Under the BOC proposal, winning bidders for the auctioned RHD vehicles must first have the items converted before the necessary customs certificate is released to them.
A provision in the Tariff and Customs Code provides that the sale of contraband items is allowed if the contraband has commercial value, has legitimate use, and there is assurance that the auctioned items will be used for legitimate purposes only.
"The conversion of the contraband into LHD vehicles would, in effect, remove the same from the coverage of RA 8506 such that they may already be sold, registered and used within the country without violating any law," Perez said in the ruling.
The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) earlier announced plans to sue importers of second-hand, right-hand drive vehicles operating in the Subic Bay Freeport where an estimated 16,000 vehicles of such kind have piled up.
The used vehicles remain on hold in the freeport because the Department of Trade and Industry's Bureau of Import Services (BIS) refuses to issue import permits, which the BOC requires before releasing the used vehicles.
Subic importers are pushing for a compromise that would allow them to dispose of all their inventory in exchange for a cessation of importation.
The government has been under pressure from Japanese and American vehicle assemblers to slam the door on used-vehicle imports since last year.
Assemblers see any sale of an imported used vehicle as a loss in sale of a locally assembled one. SunnexLuzon
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