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Local
auto makers have asked the government to defer the
publication of an executive order after it
“inadvertently” included imported used completely
built-up (CBU) vehicles on the list of products that
will be allowed duty-free entry starting this year under
the Asean Free Trade Agreement (Afta).
EO 617,
which implements the country’s commitment to reduce the
Afta Common Effective Preferential Tariff (CEPT) rates
of products belonging to the priority sectors for
regional integration, has been signed by the President
but is still awaiting publication to become effective.
The
Chamber of Automotive Manufacturers in the Philippines
Inc. (Campi), in a letter to Trade Secretary Peter
Favila, noted that EO 167 contradicted existing import
policies mentioned in EO 156, or the Motor Vehicle
Development Program, which states that imported used
vehicles should not be allowed entry and, therefore,
should not be included on the list of products for
tariff elimination.
Based on
the CEPT tariff reduction schedule, certain products
belonging to the priority integration sectors like
electronics, garments and automotive should have zero
tariff by 2007 for intra-Asean trade.
The
member-countries are allowed, however, to identify which
specific products will be included (positive list) and
excluded (negative list).
Elizabeth H. Lee, Campi president, said after studying
Annex A of EO 167, some tariff lines that are not
explicitly mentioned on the negative list, but are
nonetheless covered by other import regulations like EO
156, have been included for tariff elimination. “In
effect, these tariff lines are being given zero-percent
tariff rates such as used CBUs under Chapter 87.”
Her
organization has thus urged the government to fully
review the EO, especially Chapter 87 “in order to
determine the necessary corrective measures to address
the industry concern.”
She is
certain “the prohibited items were unintentionally
included in the EO’s annex A. Hence, we urgently and
respectfully request that the matter be corrected
immediately and that the publication of the EO be put on
hold pending a full and complete review of chapter 87
affecting our industry.” |
