Executive Secretary Eduardo R. Ermita said the allegations of the American Chamber of Commerce (Amcham) that CEZ has become an entry point of smuggled used luxury cars should be investigated.

"We have directed PAGC chief Antonio Villar to take a look at it immediately. It is a very serious allegation since the American Chamber of Commerce brought it to our attention and we directed him to submit a report on it," Ermita said.

Sen. Juan Ponce Enrile yesterday denied the allegations hurled by the Amcham that his family is involved in car smuggling in the CEZ.

Enrile challenged Amcham and other American car manufacturers to prove that imported cars are smuggled into the country through CEZ which is located in Port Irene in Sta. Ana, Cagayan.

The veteran legislator insisted that there is no smuggling at the port.

Amcham released a report saying that Port Irene in CEZ is now being used as entry point of second-hand luxury cars into the country, replacing the Subic Bay Freeport.

The report was released after Amcham officials, accompanied by representatives of two foreign car assemblers, visited Port Irene in May to observe the importation of secondhand luxury cars there.

Meanwhile, Customs Commissioner Napoleon L. Morales yesterday allayed the fears of the Amcham on the growing trade of used luxury cars in the CEZ.

The Amcham said it could affect the legal auto manufacturing industry in the future.