Motor vehicle parts manufacturers have petitioned for the inclusion and doubling of tariffs on 9 auto parts, the deletion of 24 tariff headings with the imposition of regular most-favored nation tariff and retention of 29 parts under Executive Order 262 to further build the competitiveness of the domestic auto parts manufacturing sector.

This developed as the Motor Vehicle Parts Manufacturers Association of the Philippines Inc. (MVPMAP) has petitioned the Tariff Commission for a review of EO 262 modifying the nomenclature and rates on motor vehicles under Section 104 of the Tariff and Customs Code of 1978, which was issued on December 30, 2003.

“Inasmuch as there are a number of items covered under the EO 262 list which are no longer being produced locally, while there are a few items that were inadvertently not included in the list, the industry believes that there is a need to update the list of local parts and components covered by tariff restructuring under EO 262,” said MVPMAP Rafael Villareal said in a letter to TC chairman Edgardo Abon.

MVPMAP executive director Antonio Gimenez explained that EO 262 provides tariff protection to 36 tariff lines on local auto parts that are being produced locally.

This is also in support of the local automotive assembly industry, whose industry roadmap – the Motor Vehicle Development Program -- is under review by the Board of Investments.

Gimenez said that without proper support and protection from the government under the proposed new MVDP, the 150 domestic auto parts manufacturers with 40,000 employees are going to be wiped out.

He noted that the progressive 680 auto parts suppliers in Thailand employ 300,000 people.

“This means this industry has a big impact to a country’s economy,” he said. In its letter to the Tariff Commission, MVPMAP has identified 9 auto parts for inclusion under EO 262 that would be imposed higher tariff rates when imported without certification from the Board of Investments.