Car importer sues gov’t over ban
BAYOMBONG, Nueva Vizcaya—An importer of used vehicles at the Cagayan Special Economic Zone and Freeport (CSEZFP) in Santa Ana town, Cagayan province, sued officials of various government agencies last month over the stoppage of the processing of newly arrived cars, the Inquirer learned on Monday.
Fenix (Ceza) Inc. has filed indirect contempt charges against the Office of the Executive Secretary, heads of the Department of Finance, the Bureau of Customs, Land Transportation Office and the Cagayan Economic Zone Authority (Ceza) for their refusal to process imported vehicles in supposed violation of a Supreme Court ruling.
It cited the memorandum of Customs Commissioner John Philip Sevilla, which directs its collection office in Aparri town to stop the acceptance and registration of about 850 vehicles that the company has imported over the past five weeks.
The case, which was filed in the sala of Judge Conrado Tabaco of the Regional Trial Court (RTC) Branch 8 in Aparri, also sought a temporary restraining order and permanent injunction on Sevilla’s memo.
Fenix said the parties were charged for their “deliberate disobedience of or resistance to” a writ of execution issued by the Aparri RTC. The writ was issued after the Supreme Court, in a Nov. 15, 2010, resolution, upheld the constitutionality of Executive Order No. 418.
Issued by then President Gloria Macapagal-Arroyo in 2005, EO 418 declares the legality of used vehicle importation but modifies the tariff rates originally imposed upon them.
Jaime Vicente, president of Automotive Rebuilding Industry of Cagayan Valley, lamented that the group had to resort to legal means to vindicate used car industry losses in recent months.
“Our business has suffered millions [of pesos] in losses already and yet we have been accused of smuggling and defying the government when in truth and in fact, it is the government that has been defying the courts,” Vicente told the Inquirer.
On Jan. 16, or five days after assuming his post, Sevilla directed Leilani Alameda, officer in charge of the Port of Aparri, which has jurisdiction over imports made through CSEZFP, to strictly implement the provisions of EO 156.
The order, signed by Arroyo in 2002, prohibits the importation of used motor vehicles into the country, except trucks, buses and other special purpose vehicles.
Sevilla’s Dec. 16 memo covers three batches of imported used cars that arrived at Port Irene, the zone’s main port.
The latest shipment, composed of 234 vehicles from South Korea, arrived on Jan. 27, three days after Fenix lawyers filed the suit on Jan. 24.
Sevilla anchored his directive on a Dec. 11 memorandum from Carlo Carag, finance undersecretary for revenue operations and legal affairs group, which issued a legal opinion that EO 156 “must be strictly implemented.”
The Inquirer tried to reach Sevilla’s office through his chief of staff, lawyer Geniefelle Lagmay, but he did not take calls or respond to text messages.
In Aparri, Alameda said she had received a copy of the court summons.
Joyce Jayme, Ceza information officer, said the agency’s officials were unaware that such a case was filed.
In an earlier statement, Ceza said the import permits it issued in favor of Fenix complied with an order by another Cagayan court, which ruled that EO 418 had impliedly repealed EO 156, supposedly rendering the latter issuance “inoperative.”
