Support the Local Auto Industry

[uls]

like i keep saying over and over

the Phils. is not investor friendly

[jpdm]

I hope the government will heed the call of CAMPI

Lee said their group recently concluded a planning session with the Board of Investments and the Department of Trade and Industry which could result in policies and options that support directions to retain and expand CKD manufacturing in the country.


This, she said, includes [SIZE=3]excise tax preference for locally assembled vehicles and the industry’s permanent inclusion in the annual Investment Priorities Plan, allowing them to continuously enjoy ITH for new projects.[/SIZE]


“First, it is imperative that assistance and efforts be made to strengthen the local CKD manufacturing and assembly of vehicles in the country while, at the same time, providing for all other auto sectors [nonassembly] to grow as well, in an environment that is conducive to increased investments in the country that will benefit all industry players and the country as a whole.


Campi also wants opportunities for domestic auto manufacturers to participate in the refleeting and modernization program of the government.


Business Mirror
February 6, 2008
Max V. de Leon

[jpdm]

opps double post

[SLK]

I agree we have to support the local car industry but I believe we should also ask local car companies for relief in terms pricing. I mean the car companies treat the cars they sell as appreciating assets, that is, all they do is increase prices. I mean if they make their cars more affordable, these grey market vehicles will die a natural death.

I mean they continue to offer top end products like a 2.0 liter Corolla and stuff and entry level 2.4 liter Camry and Accord when our neighboring and more affluent countries like Singapore still sell the 2.0 liter Camry and 1.6 liter Corolla.

[jpdm]

I agree we have to support the local car industry but I believe we should also ask local car companies for relief in terms pricing. I mean the car companies treat the cars they sell as appreciating assets, that is, all they do is increase prices. I mean if they make their cars more affordable, these grey market vehicles will die a natural death.

I mean they continue to offer top end products like a 2.0 liter Corolla and stuff and entry level 2.4 liter Camry and Accord when our neighboring and more affluent countries like Singapore still sell the 2.0 liter Camry and 1.6 liter Corolla.

Well, that is the trend here (especially for "gas guzzlers" or with bigger engine displacement), in fact it started all the way since the Marcos era.

[ocanursjr]

like i keep saying over and over

the Phils. is not investor friendly

Agree * uls, too many red tape.

Governed by mobs.

Too much bureaucracy...

[jpdm]

Manila Bulletin


Auto assemblers, part makers get relief

By Bernie Cahiles-Magkilat

March 8, 2009, 9:26pm


The Board of Investments mulls the deferment on the compliance of requirements and conditions imposed to participants of the Motor Vehicle Development Program (MVDP) and the Automotive Export Program (AEP) to provide relief to the domestic industry and encourage possible new investments in light of the global financial crisis.


Under the proposed policy measures, registered participants in the MVDP are allowed to defer their investment commitment for assembly and parts manufacturing parts, production and sales schedule, base equity of at least 25 percent, and parts localization program.


Under the MVDP rules, each new participant over a period of one year shall invest and/or bring in investments in the manufacture of motor vehicle parts and components for both export and domestic markets, equivalent to $ 10 million for passenger car assembler, or $8 million for commercial vehicle assembler or $ 2 million for motorcycle assembler.


On the automotive parts localization program, the government has also issued Executive Order 262 in December 2003 to restructure the most favored nation (MFN) tariff rates for motor vehicles and their raw materials, parts and components at such rates that will encourage the development of the local motor vehicle industry.


Under the order, MFN rates or duty on motor vehicle parts and components imported outside of ASEAN have scheduled tariff rates for implementation.
The tariff lines cover Chapters 40.90 to 94.01 involving motor vehicle parts and components of the Tariff and Customs Code of the Philippines.



Given the difficulties of the industry, the restructured tariff rates may also be suspended to ease the requirements of the motor vehicle assemblers.
To assist AEP participants, the BOI has also moved to defer the period of compliance of the minimum export requirements. It also move that the export compliance under the program may be extended up to the end of the period of the utilization of the net foreign exchange earnings (NFEE) (year 6 and 7) provided that no NFEEs shall be credited to the participant during such period.

The AEP grants preferential tariff rates to participants in their importation of completely built-up units (CBUs) on the basis of equivalent foreign exchange earnings (NFEEs) from their exports of locally assembled CBU packs.

This means that the availment of preferential tariff rates is contingent upon export performance of a participant on a yearly basis. The NFEE shall only be used against the import duties of the participant.
.(BCM)

Good move!

[jpdm]

[SIZE=4]BOI, local industry to
update auto development program [/SIZE]



By Ben Arnold O. De Vera, Reporter
July 20, 2009

The Board of Investments (BOI) and domestic auto industry will be crafting a new Motor Vehicle Development Program (MVDP) “that is attuned to the times” by yearend, the Trade department said.

According to Trade Undersecretary Elmer Hernandez, an updated roadmap for the country’s auto sector is necessary for the industry to remain competitive amid a zero-tariff regime beginning next year under the Asean Free Trade Agreement (AFTA).This is also needed in light of the other bilateral, regional and multilateral trade pacts entered by the Philippines, Hernandez, who is also the BOI managing head, added.


To come up with the new MVDP, the Trade official said the BOI will soon form a technical working group (TWG) composed of people from the agency and appointed representatives of the local auto players.


When the TWG wraps up, the BOI will then convene a final whole day “CEO workshop,” where the inputs will be presented and fine-tuned and remaining issues among the industry players will be ironed out, Hernandez said.
Hernandez said inputs from the study conducted by Deloitte would also be considered in drawing the updated MVDP.


He said representatives of Deloitte have already conducted a briefing with the BOI, but they have only presented a summary of the study. The agency expects a copy of the full study by the end of this month.
Once the BOI is provided the full Deloitte study, the agency’s technical people will review it for 15 days and will make recommendations before forming the TWG, Hernandez said.

Time to strengthen the Philippine auto industry for it supports thousands of local jobs.

[jpdm]

[SIZE=4]MVDP To Ensure Smooth Regulatory Environment[/SIZE]



Business Mirror


By Max V. de Leon/Reporter
05 August 2009




AUTO-industry players will be getting more than just incentives from the new Motor Vehicle Development Program (MVDP).


This is because the Board of Investments (BOI) is making sure that even the regulatory agencies dealing with vehicle manufacturers will be giving their share in ensuring the growth of the industry in crafting the new MVDP, Trade Undersecretary and BOI managing head Elmer Hernandez said.


“What we are coming out [with] is a real comprehensive program because we will make sure that government agencies will get their acts together in helping the local industry become competitive.



This, he said, is why the other government agencies such as the Land Transportation Office (LTO), Department of Environment and Natural Resources, Department of Energy, Department of Finance (DOF) and Bureau of Customs (BOC) should also be onboard in the new MVDP.

Hernandez said the LTO, for instance, is being asked by the industry to ensure faster registration of new vehicles, while being careful not to allow contraband vehicles from getting registered.


The DOF, on the other hand, is in charge of the classification of vehicles for excise-tax purposes. Right now there are new vehicle types that are coming out like hybrid and those purely electric-powered, and the DOF must have a clear and fair scheme to classify them.


The BOC, meanwhile, leads the efforts against smuggling.


The new MVDP, Hernandez said, will be issued at the end of the year.

Hopefully this will help transform and strengthen local auto manufacturing in the country instead of just merely engage in assembly and importation.

[jpdm]

Native assemblers should be included by the government and industry like MDJuan, Alana Motors, Malaguena, Almazora,Sta. Rosa and those Pampanga and Iloilo AUV fabricators...