What Went Before: EO 156 banning importation of used cars

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Former President Gloria Macapagal Arroyo. AP FILE PHOTO

MANILA, Philippines—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 decision, but in February 2006, the high tribunal allowed the importation of used vehicles only through the Subic Special Economic Zone.

In addition, the 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 noted in an internal draft report that the used-car import business at Port Irene in Santa 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 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 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 at the free port.

In a decision dated Jan. 7, 2013, the Supreme Court Second Division set aside the ruling of the Court of Appeals and reinstated the decision of the Aparri RTC.

“We found EO 156 a valid police-power measure addressing an ‘urgent national concern,’” the ruling said.—Inquirer Research

Source: Inquirer Archives

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  • bongarroyo

    gumawa ng EO si gloria dahil masyado daw mababa ang porsiyento niya….sinosolo kasi ni manong ang kita e..

    • http://pulse.yahoo.com/_2VLO53PRSSY76BZOWLOHJDM33M jeray

      Satanic ka

  • joerizal

    Ang labo naman ng EO na yan. So ibig sabihin, noon panay imported cars ang binibili kaya lugi ang mga local dealers? Bakit napakayaman ba ng mga Pilipino para piliin ang imported cars? Wala pa yata akong nakitang taxi driver na nagmamaneho ng BMW o Chedeng na taxi. Ang nakaka-afford ng mga imported cars ay yung mga sobrang yaman o sobrang korup. Dahil sa tariff na naka-impose sa imported cars, super mahal ng mga ito. So kahit galit ako kay JPE, sang-ayon ako sa kanya na walang bisa ang EO na ito. Bobo talaga ang SC sa pag-ayon dito.

    • http://pulse.yahoo.com/_2VLO53PRSSY76BZOWLOHJDM33M jeray

      Imported pweding kawasaki motor

    • http://www.facebook.com/ellebullo Ellee R. Bullo

      HALA, akala mo ba kahit saang lupalop ng mundo puede gawing taxi ung pinagsasabi mong brands?… at bakit di kaya i afford ng Filipino ang used imported cars di hamak na mas mura naman un kesa locally produces cars, patungan mo man ng tax eh ang kalalabasan palusot at smuggled items ,,, ngaun kelan naging tama si enrile?… hala buka ka ng buka ng bunganga mo di mo alam kung ano sinasabi mo?…

      • joerizal

        Bakit mo alam ang raket sa customs? Malamang kasangkot ka ogag. Saan ba nahuhuli ang isda? E di sa bibig, bobo.

  • bogli_anakdami

    according to eo 156, bawal daw yun…

    sabi ni bayagra enrile, “maniwala ka sa eo 156″…

    allah eh, di korek si bossing bayagra enrile, di ba?

    yun lang…

  • simondj

    kaya nga iyang mga executive order, mga decisions ng mga hukom na nagiging batas, at mga batas na ginagawa ng mga mambabatas ay mga walang silbi. there is only one law giver, who can search and destroy, and can execute righteous judgement,,, and it is God who show favor to no man. plunder law, epal law, rh law are rubbish, all law can be summed up in one law,,, do to others what you want them do to you.

  • richard ortega

    sino ba ang nasa likod ng mga smuggler na yan? sobrang tapang… 

  • mavtan

    Malinaw na malinaw si Enrile ang may pakana sa importation ng mga used car sa Port Irene. Mga ganitong tao ba ang ilalagay natin sa gobyerno? Mag isip-isip na ang mga kapanalig ng UNA dyan. Naglalabasan na ang baho ng mga UNA candidate, hindi pa huli ang lahat.

  • TulisangDagat

    puro trapos nag rereklamo ano ba yan!!

  • fache

    Importation of used car from the US to the Philippines: BEWARE!!! these vehicles are damaged from storms that can not be resold to US consumers because of the vehicles condition(s). They are re works and where else would they be able to sell these vehicles to make money? Of course, to the third world countries!!

  • http://pulse.yahoo.com/_3TWVIBNBHJIBKXLUC5IT2JYM5E Harry

    Those judges are expert jugglers and they should apply as circus performers when they retire.

  • http://www.facebook.com/profile.php?id=100003359635420 Bentok Ben

    does it mean na pinalusot ang mga rehistro sa mga surplus vehicles after December 6, 2007 in relation to that EO? Like me for example ni order ko currently ug surplus from japan multicab sa ****** motors, then karon pako ka realize na dili na ma renew ang rehistro ana next coming years mura kog buang palit(3 year to pay pa jud) ug multicab nga walay gamit kay dili pwede ipadagan sa hi-ways….

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