Another 400 used cars arrive at Port Irene

STA. ANA, Cagayan, Philippines - A shipment of 400 units of second-hand cars from Japan arrived at Port Irene early yesterday, probably the last batch of imported vehicles to be unloaded here due to a recent order banning the importation of used cars.

The shipment, on board the all-Filipino-manned  MV Zambales, was the second to arrive after the 200 South Korean-made used cars on Feb. 16, or since the Supreme Court (SC) affirmed on Jan. 7 the legality of Executive Order 156, which prohibits the importation of second-hand vehicles.

Agents of the Bureau of Customs (BOC) and immigration and quarantine conducted a routine inspection of the 10,409-ton vessel, and inventory of its crewmembers and cargo before the cars were unloaded.

Before their arrival, Customs Commissioner Ruffy Biazon, who was here last Wednesday, ordered the BOC district office to stop processing imported, second-hand vehicles, including the 200 units from South Korea.

The Land Transportation Office (LTO) said it would stop processing the cars’ documents for resale in deference to the court order.

Jose Marie Ponce, senior administrator of the Cagayan Economic Zone Authority (CEZA) and Freeport, said they see nothing illegal in the shipment as long as the cars are within the confines of the special economic zone.

Besides, Ponce said, their importation papers were approved before the high tribunal handed down the decision.

Ponce’s argument was backed by former justice secretary and solicitor general Silvestre Bello III, who said the Freeport is not violating any law when it allowed the entry of the used cars amid the court decision.

“Unless the cargoes find their way outside the economic zone, the Freeport is not liable for any violation of the law,” said Bello, who served during the administrations of former presidents Corazon Aquino and Fidel Ramos.

4,000 to lose jobs

 Jeffrey, 28, driver of an arrastre firm, is one of more than 4,000 workers who stand to lose their jobs if the SC upholds the constitutionality of EO 156.

When the Japanese cars were unloaded from the ship past noon yesterday, Jeffrey drove 25 cars off the vessel and received P800 for his service. When there are no car arrivals, the father of two drives a passenger vehicle to augment his income until the next shipment arrives.

CEZA said most of the affected workers are the mechanics, drivers, electricians, and porters who are directly under the employ of the car importers, and the thousands of residents who have put up small businesses inside the economic zone.

“We can’t do anything but to leave if the government totally bans our business. It’s the local workers who will be affected the most,” said Italian Sylvia Jeroeu, manager of Apollo Trading, one of the 17 firms engaged in used car importation inside CEZA.

Jeroeu told The STAR they still have with them more than 265 units of used vehicles up for sale, which arrived late last year before the SC issued the decision.

“Other than the used cars, we still have some buses and heavy equipment exempted from EO 156,” she said, adding the documents of their car stocks were already processed with the BOC and the LTO.

She said a mini Pajero Jr. which they sold for P100,000; two Toyota sports cars, and a Celica were slated for delivery to respective consignees.

Apollo employs over 500 workers, mostly mechanics and drivers who receive P10,000 to P20,000 monthly salary.

Even the Santa Ana Hotel and Restaurant Owners Association (Sahara) expressed apprehension over the possible ban on used car importation.

“The used cars are one of the most-sought after industries here. The controversy would have an adverse effect in our economy,” said Sahara president Joan Taguba.

Jaime Vicente, president of the Automotive Rebuilders Industry of Cagayan, the umbrella group of CEZA-based car importers, said their industry has contributed much to the town’s economy, especially in job generation, tourism and local revenues.

From an obscure marine-rich town, Santa Ana rose to become what is now a second-class municipality within a short period of time since CEZA went into full operations some six years ago.

Big blow

Vicente described the SC decision as a “big blow” to the industry.

“We will have a hard time recovering even if such decision will be reversed, as our reputation has been tarnished,” he said, noting that hundreds of buyers of imported used cars have already recalled their reservations since the ruling came out.

He said EO 156 should already have been superseded by EO 418, which Arroyo also issued three years later, allowing the importation of second-hand cars.

Vicente said a third EO 707, again issued by Arroyo establishing a regular Customs district office inside the economic zone to monitor the entry of used cars, should have affirmed the legality of the industry.