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Thursday, July 24, 2008

 

‘No smuggling at Port Irene’

By Efren L. Danao, Senior Reporter

Sen. Juan Ponce Enrile said Wednesday that there is no car smuggling at the Cagayan Economic Zone Authority (CEZA) in Port Irene, Cagayan, contrary to the allegations of the American Chamber of Commerce (Amcham).

In a press conference at the Senate, Enrile said that no brand new vehicle enters CEZA and that all used vehicles that moves out of the zone have paid the correct duties and taxes.

“Everything is recorded. We challenge anybody to go there, examine the records and find out if there is any car that is smuggled. I challenge Amcham, Ford, Chevrolet, General Motors and everybody to show a single case of smuggling,” he said.

Port Irene became the entry point of used vehicles after the Supreme Court had banned their entry at the Subic Bay Freeport. Enrile said the ruling does not apply to Port Irene, which is operating under a different law.

He gave reporters data showing that 7,625 vehicles had entered CEZA from June 2005 to May 2008, of which 4,456 were 1995 to 1999 models.

“Government income from taxes and duties and stevedoring operations in Port Irene went up from P300,000 to P100 million in the last three years,” he said of government revenues collected principally from the entry of used vehicles.

No competition with new vehicles

He refuted the claim of Amcham that the importation of used vehicles is competing with car assemblers.

“The people who are buying cars in Port Irene cannot buy the cars assembled in this country. In fact, if you study the sales of Toyota, Nissan, Mitsubishi, and the others who are bringing cars into the country or assembling cars into the country for the Philippine market—their sales went up by 17 percent,” he added.

He said that he would close Port Irene to the entry of used vehicles if Ford Motors could put up a plant to provide a cheap car affordable for ordinary people.

“Ford and the other American motor companies cannot sell cars in this country because their cars are expensive and they consume too much gasoline,” Enrile said.

   

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