Japan used car

The Philippines government has assured local car makers that the ban on the entry of used vehicles will stay when the Japan-Philippines Economic Partnership Agreement takes effect.

Trade Undersecretary Elmer Hernandez told reporters he had discussed with the members of the Chamber of Automotive Manufacturers of the Philippines Inc. their concerns on JPEPA, especially a provision outlining the cooperation of the two countries in relation to exports.

“I have met with Campi, they want assurance from government that the prohibition [on used vehicles] would continue and that the provision is a safety net rather than an opening. It’s a protection, either way,” said Hernandez.

Japan is the biggest source of converted used vehicles that are brought into the country.

Hernandez said the Olongapo Regional Trial Court and the Court of Appeals had ruled against the constitutionality of Executive Order 156, which banned the entry of used vehicles into the country, at the time when government was negotiating with Tokyo on the auto sector provision under the JPEPA.

“Article 27 is the protection of the automotive industry. Our concern at that time, if we lost our case before the Supreme Court, what do we do about used vehicles? If we win, what do we do? So we put that article as protection,” said Hernandez. He said Article 27 served as a protection if the courts ruled against the constitutionality of EO 156.

The Supreme Court has since upheld the constitutionality of EO 156. The second motion for reconsideration filed by importers is pending before the high court. Hernandez also cited a provision in JPEPA respecting all domestic laws of both the Philippines and Japan. READ MORE…