FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
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 PI1 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 Philippines, there is a need 
to rationalize our policy on the importation of 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 imported into 
our country, this bill seeks to prohibit the importation of used motor vehicles in the Philippines, 
including Freeports and Special Economic Zones. 
The importation of used motor vehicles in the Philippines has only 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 workforce. 
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 of 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 pose as pollution hazards 
that are harmful to our environment. 
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 importation of used motor vehicles in our 
and growth of our 
national economy. 
country is needed to promote industrialization and 
J 
Ay Senator p4 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
S. No. 
Introduced by Senator Richard J. Gordon 
AN ACT TO REGULATE THE IMPORTATION OF USED MOTOR VEHICLES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short We. - This Act shall be known as the "Used Motor Vehicles 
Regulation Act of 2007." 
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 and/or 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 
pollution. 
Sec. 3 Definitions. - For purposes of this Act, 
(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 and operated principally for 
the conveyance of persons or the transportation of property or 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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(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-wheeler motor vehicle fitted with an 
(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 transportation of property or goods. 
(3) "Bus" refers to any motor vehicle intended for mass transport or conveyance of 
(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 weight, provided 
that, pick-ups are not to be considered as trucks for purposes of this Act. Pick-ups 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 various devices that enable it to perform certain non- 
transport functions. This term also refers to specialized types of motor vehicles used for 
transport of persons or goods. 
auxiliary motor, with or without sidecars. 
passengers. 
(6) "GWV" 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 two (2) motor vehicles shall be allowed; (b) such 
vehicles have a GWV not exceeding 3 tons; and (c) such vehicles cannot be resold within 
the Philippines for at least three (3) years; 
existing laws and authorized to be imported by the Department of Foreign Affairs; 
(2) Motor vehicles allowed for the use of officials of the Diplomatic Corps under the 
(3) Trucks with G W  above 6.0 tons; 


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(4) Trucks with GWV between 2.5 to 6.0 tons, provided that such importation is 
(5) Buses with GWV above 12.0 tons; 
(6) Buses with GW 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; 
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, boom trucks, tanker trucks, 
derricks, transiVconcrete mixers, mobile radiological units, wreckers or “two trucks”, 
concrete pump trucks, aeriallbucket flat-form trucks, street sweepers, vacuum trucks, 
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 
Philippine 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 Philippines Clean Air Act of 1999, and other applicable laws. 
Sec. 6. Non-registrability 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. 
Sec. 7. Penal Provision. - Any person who violates this Act shall be punished with 
the penalty of prision correccional under the Revised Penal Code, or a fine ranging from 
one hundred thousand pesos (PhP100,OOO) to ten million pesos (PhP10,000,000) for each 
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 andlor 
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 liabilities under other laws. 
Sec. 8. Repealing Clause. - All laws, presidential decrees orders, rules or 
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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Approved, 
Sec. 9. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect. 
Sec. 10. Effectivity Clause. - 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 circulation in the Philippines.