Manila, Philippines - Customs Commissioner Angelito Alvarez said yesterday that if the car companies’ decision to temporary stop operations drag on for months, the volume of importation might reach alarming status.
Alvarez said that the operation stoppage might adversely affect the bureau’s revenue collection because of the reduced importation of auto parts.
Toyota Motor Philippines (TMP), Ford Motor Philippines and Honda Cars Philippines have decided to temporarily suspend their operations due to the shortage of car parts from Japan.
Ford suspended its operations for 18 days, and announced that it would have three non-production days from April 18 until 20 as a result of the limited supply of production parts. While Honda cut down its production by 50 percent.
“If this is the reports that we are getting, then it is alarming. As of now, we are not yet feeling the effect but if this goes on in the next few months, then this could be alarming. It could affect the volume of importation,” said BOC Commissioner Angelito Alvarez.
The suspension of operations of automobile companies would also have a negative effect on the BOC’s collection. He added, “This would affect the duties and taxes.”
For the month of March, the BOC reportedly registered a collection surplus of P1.1 billion, surpassing its P22.5 billion goal for the month. One way to offset the effect of the low production of spare parts from Japan was to look at other source countries. Apart from Japan, a big volume of spare parts also comes from Taiwan and Korea.
As of the moment, he also doubted that the suspension of their operations would cause a shortage of spare parts.
Completely built units (CBUs) also usually arrive in bulk. Many of the shipments came in through the Port of Manila (POM) and Manila International Container Port (MICP).