AUTO INDUSTRY NEWS

Supreme Court reaffirms ban on importation of used vehicles

Supreme Court reaffirms ban on importation of used vehicles image

Text: / Photos: | posted January 30, 2013 15:14

Ban to aid the development of the local automotive industry

The Supreme Court has reaffirmed the ban on importation of second-hand cars ending years of courtroom drama over Executive Order 156 issued on December 12, 2002 by then president Gloria Macapagal-Arroyo.

EO 156, which prohibits the importation of all types of used motor vehicles, parts, and components was declared legal and constitutional by the high court and was further confimed by a written statement by Senior Associate Justice Antonio Carpio that it was issued to "accelerate the sound development of the motor vehicle industry in the Philippines."

The tribunal further stated that the order was "a valid police power measure addressing an urgent national concern."

Exemptions to the order are brand new vehicles of current year model that has a mileage of less than 200km; vehicles owned by a returning resident or immigrant which cannot be sold for at least three years; a vehicle for the use of an official of the Diplomatic Corps; trucks(except pick-up trucks), buses, and special purpose vehicles.  

The Supreme Court decision makes permanent the restraining order it issued against the Court of Appeals on January 16, 2012 for granting injuction relief for EO 156. The decision is seen as a major victory for the formal automotive industry against the importation of second-hand cars.

source: The Manila Times

photo for illustrative purposes only