Palace urged to relax further weight limit for truck imports

Local government units (LGUs) and small and medium enterprises (SMEs) are lobbying Malacañang to relax further the weight limit for the liberalized importation of trucks and vans to a gross vehicle weight of 2.5 tons from the proposed 4.5 tons.

Industry sources said the new request is causing the delay in the signing of the revised Motor Vehicle Development Program (MVDP).

They said the proposal of the LGUs and SMEs would mean that used vehicles such as the L300s, small trucks, pick-ups and even some sports utility vehicles (SUVs) could still be imported into the country.

The lower gross vehicle weight proposal runs counter to the petition of local truck manufacturers to maintain the current levels of 4.5 tons to six tons for regulated importation and six tons and above for liberalized entry.

Board of Investments Managing Head Gregory Domingo said the government is trying to strike a balance between the interest of local vehicle manufacturers and the needs of LGUs and SMEs.

While there is no definite decision from Malacañang on the matter, Domingo said the government would have to compromise on the gross vehicle weight limit.

"The government may have a final decision on the matter by this week," Domingo said.

However, Philippine Automotive Federation Inc. (PAFI) president Vicente Mills and Motor Vehicle Manufacturers Association of the Philippines Inc. president Feliciano Torres, said there is a need for the government to help the local vehicle manufacturing and parts manufacturing industry by helping them ensure demand.

"One way government can do this is by limiting the entry of used vehicles," they said.

They further argued that government should not limit the ban only to the car industry but also to the local truck manufacturing sector.

"While the local truck manufacturing industry is still quite small, it is also partially because government allows the importation of used trucks," Mills said.

He acknowledged the issue of "affordability," but insisted that government should still limit the influx of used trucks.