What went before: EO 156 banning importation of used vehicles



Following a slump in the sales of new motor vehicles in the country, then President Gloria Macapagal-Arroyo issued Executive Order No. 156 on Dec. 12, 2002, banning the importation of used vehicles (except light trucks, buses and special purpose vehicles).

While the order was meant to strengthen the local automotive industry and deter smuggling, three groups of vehicle importers questioned the validity of the executive order in the Olongapo Regional Trial Court, which later nullified portions of EO 156.

The Court of Appeals later upheld the lower court’s decision, but in February 2006, the Supreme Court allowed the importation of used vehicles only through the Subic Special Economic Zone.

In addition, the high court ruled that the vehicles “may only be stored, used or traded, or exported out of Philippine territory, but [these] cannot be imported into the Philippines outside of the secured fenced-in former Subic Naval Base area.”

The vehicle importers filed motions for clarification and reconsideration, which the Supreme Court denied in August 2006.

A final ruling by the Supreme Court, issued on Oct. 30, 2007, denied the motion of the Motor Vehicles Importers Association of the Subic Bay Freeport to sell used cars outside the free port.

In 2008, the American Chamber of Commerce (Amcham) noted in an internal draft report that the used-car import business at Port Irene in Sta. Ana, Cagayan, was “illegal and contrary” to EO 156.

The report said that the Cagayan Economic Zone had already imported 8,000 vehicles in 34 months, or an average of 225 a month, most of which were sold in the Philippines in violation of the executive order.

Defending the importation of used cars in his home province, Sen. Juan Ponce Enrile said that EO 156 was unconstitutional and that the Supreme Court was wrong in upholding it. He also denied allegations that Cagayan had become a smuggling haven.

Challenging President Arroyo’s authority to issue the order, Enrile argued that only Congress could ban the importation of used items.

Following the controversy, the Automotive Rebuilding Industry of Cagayan (Aric) filed a petition assailing the constitutionality of the order in the Regional Trial Court in Aparri, which led to the issuance of a temporary restraining order on the implementation of EO 156.

In September 2010, the Aparri RTC ruled against an injunction appeal made by the Aric, and affirmed the ban on the importation, registration and distribution of second-hand vehicles at Port Irene.

In 2011, a Court of Appeals ruling lifted the ban on car importation in the free port.—Inquirer Research

Source: Inquirer Archives

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  • http://profile.yahoo.com/AIYSIJJOL4JNRLHXVTGUH3NYHM The Overlord

    “Defending the importation of used cars in his home province, Sen. Juan Ponce Enrile said that EO 156 was unconstitutional and that the Supreme Court was wrong in upholding it. ”

    Wow, so the geezer Enrile acted like a Supreme Court justice too? Tsk tsk…
    Grabe, talamak na talaga ang singaw ng baho mo, Johnny!

  • Guest

    01. Used luxury cars? More like stolen luxury cars.

    02. The noose around JPE’s neck is tightening. Time for Gigi Reyes to look for another man.

    03. If BIR can go after the ill-gotten wealth of JPE, so much the better.

    04. Maybe it’s not too soon to say this. It’s probably also time for Jackie Enrile to look for a real job. Jackie’s chances of landing himself in the top 12 is getting dimmer and dimmer. Especially with the scandals surrounding his dad and stepmom. If AMLC freezes all of JPE’s assets, damay din si Jackie Enrile. Jackie can always work as a butcher in a slaughterhouse. Magaling naman syang pumatay eh.

    05. JPE’s fiefdom should be dismantled by the central government. Para sampolan.

  • azkal futbol

    more expose’ please. let the people know the real color of all pretenders, liars, cheaters and plunderers. UNA must be un-covered. totoo ba silang maglilingkod sa bayan at sa bulsa lang. 

  • http://pulse.yahoo.com/_WIWYLFLU4LPKS7B2ZLLRVFKS3Y vir_a

    Those who object are virtually the smugglers dressed as legal importers

  • wakats

    Enrile is the champion par excellence of questioning the constitutionality of any law or order just to delay its implementation until the court finally decides on the issue.  In this case, he and his Port Irene continuous to import tax-free new and used-vehicles from 2007 until today while the SC is awaiting his expected delaying moves until forever, as due process gives anybody the right to file petitions after petitions until a friendly administration comes to enrile’s rescue. 

  • ever green

    Smuggling haven naman talaga ang sta ana….
    Ang gulo gulo ng mga korte..puwede import, hindi puwede import, puwede import, hindi puwede import, puwede import, hindi puwede import, …….ano ba talaga???I can understand why some want second hand vehicle…like those for deliveries, and other heavy equipment vehicle….pero this country is starting to become the dumpsite of the world…..dati Ukay-ukay na damit, after JPEPA was approved….ngayon pati basura ng Japan nandito na….marami sa probinsya nagbebenta ng mga secondhand na furniture, chairs and what have you…..Napakawalang dignidad naman ng mga Filipino at puro basura ng iba ang pinupulot. 

    DH na nga sa ibang bansa, basurero pa sa sariling bayan……

  • Andres_Bagumbayan

    Ultimong utos ng dating pangulo at korte suprema ay binabaluktot matupad lamang ang hilig…iyan si MANONG JOHNNY…. Sbagay,ganuon din naman ang ginagawa ng nakaupong pangulo ngayon!!!

  • kinutil

    ITIGIL na yang pag iimport ng mga USED CAR na yan para hindi mawalan ng trabaho ang mga nagtrabaho sa CAR FACTORY SA ATIN.

  • AntiAko

    Sino ngayon ang mas bida? Si Corona o si Enrile?

  • dodong1

    Magaganda nga yang mga import cars na yan at napakamahal pa.pag nasira pahirapan sa parts. 

  • PH2011

    He (JPE)  also denied allegations that Cagayan had become a
    smuggling haven. 

    That’s tantamount to his words that Gigi is not my girlfriend.

    CEZA who managed Cagayan Special Economic Zone and Free Port (CSEZF) is
    funded and created by the government for the benefit of one family?

    Similarly, I read allegation that he Aurora Pacific Economic Zone and
    Freeport, also known as APECO already costing 2 billion without a single
    Foreign investor.

    Is this Economic and Special zones created are really viable or just
    approved during GMA time to please the family of the authors? Ironically, President
    Noy also gave the go signal and funding for APECO to proceed.

    Well, COA should properly audit the pros and cons since its Filipino people

  • RomyLitz

    I am openly requesting both Senators Miriam Santiago and Allan Cayetano to continue their unrelenting exposee crusade on Senator Juan and Gigi’s assets or SALN and check them agains actual dollar accounts like Atong until all of the senator’s fingers are cleared from the cookie jar.

  • Simon Ward

    All the focus is currently on the corruption EO 156 has spawned, but how about the backhanders that saw it get passed in the first place? It’s very nice for local auto makers, but as a law it’s a piece of garbage.

  • http://profile.yahoo.com/J6ZIP2ZW3T6ZFRJCRBAJNXLIFY Sabian

    Napaka ganda ng intention ng eo 156. Talaga namang hinarang talaga ni enrile. Sino ba namang maniniwalang walang smuggling na ng yayari sa cagayan? Haaay lupit talaga ni manong!

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