Philippines set to overhaul auto program

The Philippines Board of Investments plans to overhaul the country’s Motor Vehicle Development Program in a bid to make local assemblers more competitive. Trade Undersecretary and Investments Board Managing Head Elmer Hernandez said the program, drawn up by the investments board in 2001 and implemented in 2002, might no longer be responsive to the market environment. The program, established under Executive Order 156, lays down a comprehensive industrial policy for the automotive sector. A lot has happened since so we need to craft new policies to ensure the industry development. As to what policies, we still don’t know at this time but it could probably be an overhaul, said Hernandez. The program provides for the rationalization of used motor vehicle importation; restructuring of most favored nation tariff rates, or duties slapped to imports coming from outside ASEAN; rationalization of excise taxes; regional complementation under the ASEAN Industrial Cooperation scheme; and provision of export incentives. Local assemblers have commissioned New York-based consulting firm Deloitte Consulting to assess the industry’s potential for competitiveness. (August 18, 2008)