Local auto parts makers recently lauded the government’s renewed efforts against smuggling of used vehicles.

In a statement, Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) President Ferdinand Raquelsantos said that they are supportive of the government’s drive toward “Matuwid na Daan.”

“We hope that the current administration continues its drive against vehicle smuggling so that the Philippine automotive and parts making industries may finally take off,” he said.

The expression of support came after the Court of Tax Appeals (CTA) issued a conviction against an auto trader who misdeclared his vehicle shipment as replacement truck parts,  the first conviction of its kind under the Bureau of Customs’ (BOC) Run After The Smugglers (RATS) campaign.

On February 2008, the BOC charged Roell Sayson after he allegedly declared a shipment of used truck replacement parts, which were discovered as used sports utility vehicles.

The vehicles found were six units of Kia Sportage and three units of Hyundai Galloper, which according to Raquelsantos are prohibited importations under Executive Order No. 156.

On December 12, 2012, the CTA ruled that Sayson is guilty of violation of the Tariff and Customs Code of the Philippines, and faces a penalty of not less than eight years and one day to 12 years imprisonment, and a fine of P8,000.

According to Raquelsantos, the development “bodes well for the much-suffering domestic auto industry.”

“That is why for years, MVPMAP has been supportive of the anti-smuggling campaign of the government as auto smuggling negatively affects the local automotive industry. This persistent influx of smuggled second-hand vehicles has been pinpointed as a major cause of the underdevelopment of our local auto manufacturing,” he explained.

Raquelsantos cited that in 2011, some 57,000 units or 26 percent of the total registered new vehicles with the Land Transportation Office were from the so-called “informal or used car sector”.

He also said that customers opt to buy second-hand or used imported vehicles which may have been brought in illegally, instead of getting vehicles from local manufacturers.

He also claimed that customers realize that these vehicles are not worth the price and breaks down faster than those locally manufactured.

”The effect is that local auto manufacturing suffers. And in the process, affected are some 70,000 workers: 30,000 in vehicle assembly including downstream and upstream industries, and 40,000 in parts manufacturing,” Raquelsantos noted.

He added that the country’s auto industry has lagged behind its Southeast Asian neighbors in the development of a local automotive industry, saying that local auto firms assembled about 65,000 units last year.

”That pales in comparison to Asean regional leader Thailand’s 1.46 million units, Indonesia’s 838,000 units and Malaysia’s 534,000 units. Even the new kid on the block Vietnam has outpaced us with 100,000 units,” Raquelsantos said. Asean is the Association of Southeast Asian Nations.

”The Philippine auto industry really needs a shot in the arm. We are hoping that this renewed government initiative against auto smuggling is the shot that will help revive our ailing domestic auto and parts making industries,” he added.