Imported second-hand cars in Port Irene bound for re-export

TUGUEGARAO CITY, Philippines - Like first world nations, the Philippines may soon be exporting cars to other countries too. The difference is that the Philippine exports are pre-owned imported cars that cannot be sold inside the Philippines because of a recent Palace order banning the trading of used-cars locally. Executive Order No. 156 stemmed from controversies involving the importation of used cars via the Cagayan Special Economic Zone and Free Port (CEZA), which the American Chamber of Commerce (Amcham) earlier alleged to be a smugglers haven, an accusation that CEZA officials and the provincial government of Cagayan denied. Veering from their previous position that the order did not cover Port Irene and other parts of Cagayan, CEZA Administrator Jose Mari Ponce explained that EO 156 will have to be implemented inside the Port. Ponce’s statement was echoed by CEZA-Port Irene principal engineer Julian Gonzales who said that they are expecting the arrival of more shipments of used cars in the coming days, “but the shipments will have to be put on hold until the issue of its legality can be resolved." CEZA officials said the re-exportation of second-hand cars has been considered as one way to keep the business of rebuilding and re-selling of used cars in the province afloat. According to CEZA deputy administrator Nilo Aleguer, the possibility of re-exporting the cars will help avert investment pullout by car importers and dealers inside the Port and the displacement of hundreds of workers involved in the used-car business. Aleguer, who earlier proposed the move, said that re-exporting the used cars will be looked into seriously “once the court does not accede to the importers’ petition." Earlier, the Association of Rebuilding Industries of Cagayan (ARIC) sought a temporary restraining order (TRO) with the Aparri regional trial court questioning Ponce’s the constitutionality of EO 156. Jimmy Vicente, ARIC president, said the move is expected to temporarily soften a sudden negative bearing on the economic needs of some 1,000 car industry workers. ARIC was able to acquire a three-day TRO from Aparri RTC Judge Rolando Velasco, who said that he would decide Monday (Oct.13), whether to issue a longer 17-day TRO. “We are confident that Judge Velasco will recognize the significance of our request for a TRO extension as these sudden and unforeseen developments will surely have a diverse effect on the industry and to the people who depend on it, “he said. “We are ready to take the case to the highest level if the situation warrants, but right now we are focused on discussing the merits of the case including its constitutionality once the petition for TRO extension is settled giving us enough time to review our position," he added. Vicente, however, aired his approval of Aleguer’s recommendation to have the used cars re-exported to other countries while both parties are in the process of seeking for a workable solution that will be amenable to all individuals affected by EO 156. We are also eyeing the possibility of disassembling the vehicles and selling its parts and other accessories as second-hand assemblies," he said. Approximately 400 imported pre-owned cars enter Port Irene in a month and nearly P40,000 is spent to rebuild a single car. This translates roughly to about P16 million in gross income which is being distributed to around 800 head of families who rely heavily on the car industry here. CEZA was created in 1995 under Republic Act 7922, authored by Sen. Juan Ponce Enrile, a native of Gonzaga town in Cagayan. - GMANews.TV