Friday, July 25, 2008 Customs: Used luxury cars entering Irene port not smuggled
THE Bureau of Customs (BOC) on Thursday confirmed that used luxury cars are entering Irene Port, but clarified that they are not smuggled.
"When you say smuggling, it means that no duties and taxes were paid, all of these vehicles have paid not only 30 percent Customs duties (ad valorem) but also 12 percent value-added tax (VAT) and 100 percent excise tax (total landed cost)," said Customs Commissioner Napoleon Morales.
He explained that they cannot implement Executive Order (EO) 156 or the total ban on second hand motor vehicle imports at the port, after importers questioned the constitutionality of EO 156 as well as EO 418 before the Cagayan Regional Trial Court.
EO 418 was issued following questions on the legality of the ban which were raised by the importers. Under Malacañang order, the payment of P500,000 for every imported second hand vehicle is required on top of the duties and taxes it needs to pay.
Reports revealed that traders of used luxury cars are enjoying brisk sales in the Cagayan Economic Zone (CEZ) in spite of an existing ban on the importation of used automotives.
Morales said the importation of used cars in the CEZ is above board and could not be considered smuggling because they pay the necessary duties and taxes required for each vehicle that exits the Freeport area.
"We are maintaining status quo. We cannot impose EO 156 and EO 418 at Irene Port pending the decision of the court. For the meantime, we will continue collecting taxes at the usual rate without the P500,000," he said.
The Subic Freeport in Zambales was formerly the center of the used automotive industry but was barred from issuing import permits to second hand car importers following a Supreme Court decision upholding the constitutionality of the ban in November last year. (FP/Sunnex)
