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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF .THE PHILIPPINES 
1 
* . Second Regular Session 
1 
SENATF 2 1 2 2 
S. No. 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
The proliferation of imported used motor vehicles in our country, mostly through smuggling 
and evasion of taxes and duties in Freeports and Special Economic Zones, creates a culture of 
corruption and is highly detrimental to our fiscal and economic welfare. 
The importation of used motor vehicles in our country is killing our local automotive industry 
that pays at least PhPll billion worth of taxes to the government and employs approximately 
75,000 skilled workers. It is also defeating our bid to attract investors to develop our local 
automotive manufacturing and assembly capability and its downstream industries. To accelerate 
the sound development of the automotive industry in the Philipplnes,i there Is a need to rationalize 
our policy on the importation df used motor vehicles in our country through an appropriate 
legislation that is more permanent in character. Subject to certain exceptions such as trucks, 
buses, and special vehicles for specific uses that may be legitimately jmported into our country, this 
bill seeks to prohibit the importation of used motor vehicles into the Philippines, including Freeports 
and Special Economic Zones. 
The importation of used motor vehicles in the Philippines has ionly deleterious effects to our 
country's development. In New Zealand, following the elimination of import restrictions on cars and 
auto parts, automotive assembly plants closed down, laying-off as much as 80% of the automotive 
work force. 
The importation of used motor vehicles into the Philippines strips the government of much- 
needed revenue in taxes and duties as well. It also deprives us ofi our limited foreign exchange 
reserves. These imported used motor vehicles which have been merely refurbished or possibly 
converted are also of questionable quality and are likely to put the health and safety of the riding 
. public at risk. These imported used motor vehicles also post as pollution hazards that are harmful 
to our environment. 
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Thus, to ensure fair and healthy competition in the market, to encourage high value-added 
investments, .to promote full employment in the automotive industry, to guarantee the quality of 
motor vehicles and promote the health and safety of the riding public, and to protect the 
environment against pollution, a law to regulate the importation of used motor vehicles in our 
country is needed to promote industrialization and to support the productivity and growth of our 
national economy. 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
5 SEP 20 A8"6 
Second Regular Session 
1 
Introduced by Senator Richard J. Gordon 
AN ACT TO REGULATE THE IMPORTATION OF USEDIMOTOR VEHICLES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as1 the "Used Motor Vehicles 
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Regulation Act." 
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Sec. 2. Policy. - It is the policy of the State to support the productivity and growth of 
the national economy and to promote Industrialization in the automotive industry by 
regulating the importation andlor entry of used motor vehicles, thus ensuring fair and 
healthy competition in the market, encouraging high value-added investments, promoting 
full employment in the automotive industry, guaranteeing the quality of motor vehicles and 
promoting the health and safety of the riding public, and protecting the environment against 
Sec. 3. Definitions. - For purposes of this Act, 
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(1) "Motor vehicle" refers to any vehicle propelled by a gasoline or diesel engine or 
by any means other than human or animal power, constructed land operated principally for 
the conveyance of persons or the transportation of property ori goods. The term includes 
passenger cars, commercial vehicles, light commercial vehicles, and motorcycles defined 
as follows: 
(a) "Passenger car" refers to any four-wheeled motor vehicle principally 
designed to transport persons and not primarily to transport goods. 
(b) "Commercial vehicle" refers to any four or more wheeled motor vehicle 
principally designed to transport persons andlor goods; or cargo. This term shall 
include light commercial vehicles, buses, trucks, and special vehicles for specific 
uses. 


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(3) Trucks with GVW above 6.0 tons; 
(c) "Light commercial vehicle" refers to any motor vehicle designed to carry 
both passengers and goods or cargo, including, but not limited to utility vehicles, 
sports utility vehicles, asian utility vehicles, commuter vans, mini-cabs, and pick-ups. 
(d) "Motorcycle" refers to any two or three-wheelen motor vehicle fitted with an 
auxiliary motor, with or without sidecars. 
(2) "Used vehicle" refers to any motor vehicle imported in the Philippines and which, 
prior to its arrival in the Philippines, has already been driven or used for the conveyance of 
persons or the transportation of property or goods. 
(3) "Bus" refers to a motor vehicle intended for mass transport or conveyance of 
passengers. 
(4) "Truck" refers to a motor vehicle whose body configuration is designed to carry 
heavy loads, general freight, or for special purpose regardless of gross vehicle weight, 
provided that, pick-ups are not to be considered as trucks for purposes of this Act. Pickups 
refer to light trucks having an enclosed cab and an open body with low sides and tailgate, 
with a gross vehicle weight of up to 3 tons. 
(5) "Special Vehicle for Specific Use" refers to any motor vehicle especially 
constructed or adapted, equipped with varlous devices that enable it to perform certain non- 
transport functions. This term also refers to specialized types oflmotor vehicles used for the 
transport of persons or goods. 
(6) " G W  refers to Gross Vehicle Weight. 
Sec. 4. Regulation of Importation. - Subject to Sec. 5 of this Act, the importation 
andlor entry of used vehicles in the Philippines, including Freeports and Special Economic 
Zones, for whatever purpose is prohibited. 
Sec. 5. Exceptions. - Sec. 4 of this Act shall not apply to the following: 
(1) Motor vehicles sought to be imported by returning residents or immigrants under 
the no-dollar importation program or other similar cases allowed under existing laws, 
provided that, (a) only a maximum of 2 motor vehicles shall be allowed; (b) such vehicles 
have a GVW not exceeding 3 tons; and (c) such vehicles cannot be resold within the 
Philippines for at least three (3) years; 
(2) Motor vehicles allowed for the use of officials of the Diplomatic Corps under 
existing laws and authorized to be imported by the Department of Foreign Affairs: 


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(4) Trucks with GVW between 2.5 to 6.0 tons, provided that such importation is 
(5) Buses with GVW above 12.0 tons; 
(6) Buses with GVW between 6.0 to 12.0 tons, provided that such importation is 
covered by an authority to import issued by the Department of Trade and Industry; and 
(7) Special vehicles for specific uses such as fire trucks, ambulances, funeral 
hearseslcoaches, crane lorries, tractor heads or truck tractors,i boom trucks, tanker trucks, 
tank lorries with high pressure spray gun, reefers or refrigerated trucks, mobile drilling 
derricks, transitlconcrete mixers, mobile radiological units, 1 wreckers or "two trucks", 
concrete pump trucks, aeriallbucket flat-form trucks, street Isweepers, vacuum trucks, 
garbage compactors, self-loader trucks, man-lift trucks, lighting Itrucks, trucks mounted with 
special purpose equipment, and all other types of vehicles designed for special purposes. 
The importation andlor entry of the foregoing used 'vehicles shall be allowed, 
provided that the competent authorities from the country of origin certify that such vehicles 
are roadworthy, safe, and comply with emission standards] and that the appropriate 
Phillppine authorities certify that such vehicles are likewise roadworthy, safe, and comply 
with emission standards, as well as comply with the requirements of this Act, Republic Act 
No. 8749 or the Philippine Clean Air Act of 1999, and other applicable laws. 
Sec. 6. Non-regisfrabilify and Seizure. -All used vehicles in violation of this Act shall 
not be allowed registration with the Land Transportation Office and shall be subject to 
seizure without redemption. 
covered by an authority to import issued by the Department of Trade and Industry; 
Sec. 7. Penal Provision. - Any person who violates thisi Act shall be punished with 
the penalty of prision correccional, or a fine ranging from one hundred thousand pesos 
(PhP100,OOO) to ten million pesos (PhP10,000,000) for each used vehicle, or both. 
Any juridical person found to be violating this Act shall be revoked of its licensels to 
operate and shall be barred from doing business in the Philippines. 
Any public official or government employee found to be violating this Act and/or 
grossly negligent in implementing this Act shall be dismissed from service and perpetually 
disqualified from holding any public office or government employment, without prejudice to 
administrative, criminal, and civil liability under other laws. 
Sec. 8. Repealing Clause. - All laws, decrees, orders, rules and regulations or other 
issuances or parts thereof inconsistent with the provisions of this Act, including those of 
Freeports and Special Economic Zones, are hereby repealed or modified accordingly. 


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in force and effect. 
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circulation in the Philippines. 
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Approved, 
Sec. 9. Separabilify Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain 
Sec. 10. Effectivity. - This Act shall take effect after fifteen (15) days following the 
completion of its publication either in the Official Gazette or in a newspaper of general