BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 443
EXEMPTING DONATED USED MOTOR VEHICLES TO LOCAL GOVERNMENT UNITS FROM THE
PROHIBITION ON IMPORTATION OF USED MOTOR VEHICLES UNDER ARTICLE 2, SECTION 3 OF
EXECUTIVE ORDER NO. 156 (S. 2002) ENTITLED "PROVIDING FOR A COMPREHENSIVE
INDUSTRIAL POLICY AND DIRECTIONS FOR THE MOTOR VEHICLE DEVELOPMENT PROGRAM AND
ITS IMPLEMENTING GUIDELINES" AND FROM THE IMPOSITION OF SPECIFIC ADDITIONAL
DUTY UNDER EXECUTIVE ORDER NO. 418 (S. 2005) ENTITLED "MODIFYING THE TARIFF
NOMENCLATURE AND RATES OF IMPORT DUTY ON USED MOTOR VEHICLES UNDER SECTION 104
OF THE TARIFF AND CUSTOMS CODE OF 1978 (PRESIDENTIAL DECREE NO. 1464, AS
on 12 December 2002, the President issued Executive Order No. 156 in order to
provide for a comprehensive industrial policy and directions for the
motor vehicle development program of the government;
Executive Order No. 156 (s.2002) bans the importation of all types of used motor
vehicles and parts and components, subject to certain exceptions provided for
WHEREAS, Executive Order No. 156 (s.2002) recognizes the need to rationalize
the importation of used motor vehicles taking into consideration the needs of
local government units, small and medium enterprises and the public transport
WHEREAS, on 4 April 2005, the President issued Executive Order No. 418 (s.
2005) which, among others, imposes an additional specific duty of P500,000.00 on
importations of used motor vehicles listed therein;
WHEREAS, budgetary constraints of local government units prevent them from
purchasing sufficient number of of motor vehicles that are essential to the
delivery of basic services to their respective areas;
WHEREAS, local government units should be encouraged to look
for alternative ways of procuring motor vehicles that are essential for the
delivery of basic services to their constituents, including procurement of
donations thereof from well-meaning and generous donors from other countries;
WHEREAS, donations of used motor vehicles to local government units will
be rendered nugatory if these local government units will be required to pay
additional specific duty of P500,000.00 as provided under E.O. No. 418 (s. 2005);
THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Additional Exemption to the Ban on Importation of Used
Motor Vehicles under Executive Order No. 156 (s. 2002) - To address the need for
fast and efficient delivery of services and taking into consideration their
general budgetary constraints, local government units are hereby allowed to
import used motor vehicles thru donation subject to the following conditions:
The used motor vehicles shall be certified as roadworthy and emission compliant
by the country of origin. The Certificate of Roadworthiness and Emission
Compliance shall be in English or shall be accompanied by an English
translation, if originally issued in a language other than English, and shall be
duly authenticated by the Philippine Embassy or Commercial Attache in the
country of origin.
The used motor vehicles must be left-hand drive.
The vehicle classification shall not include luxury vehicles. For purposes
of this Executive Order, a luxury vehicle is defines as (a) any passenger motor
vehicle prices in the local market at P1,300,000.00 or more at the time of
acquisition; or (b) any passenger motor vehicle with the following engine
displacement specifications: (i) Car (sedan or hatchback) with an engine
displacement exceeding 2200 cc. if gasoline-fed or 3000 cc. if diesel-fed; (ii)
Passenger van or pick-up with an engine displacement exceeding 2200 cc if
gasoline-fed or 3000 cc. if diesel-fed; (iii) Passenger wagon with an
engine displacement exceeding 1800 cc. if gasoline-fed or 2500 cc. if
diesel-fed; and (iv) Sport utility vehicle (SUV) with an engine displacement
exceeding 2700 cc. if gasoline-fed or 3000 cc. if diesel-fed.
The donated used motor vehicles must be in reasonable quantity taking into
consideration the population, area and the needs of the local government unit
The ownership and registration of the donated used motor vehicles shall not be
disposed of, either by public auction or negotiated sale, within five (5) years
from the importation thereof. In case the motor vehicle is sold within the
five (5) year period, the purchases or recipients shall be considered the
importers thereof, and shall be liable for duties and taxes due thereon.
The donation shall be accompanied by a Deed of Donation naming the specific
local government unit as donee.
The Sangguniang Panlalawigan, Sangguniang Panglungsod or Sangguniang Bayan
concerned shall pass a resolution accepting the donation.
Additional Exemption from the Imposition of Additional Specific Duty
under Section 1 of Executive Order No. 418 (s. 2005) - In addition to
used motor vehicles specifically listed under Article 2, Section 3.1 of
Executive Order No. 156 (s. 2002) as exempt from the general import prohibition,
qualified importations by local government units under this executive order
shall not be covered by the imposition of additional specific duty under Section
1 of Executive Order No. 418 (s. 2005).
Penalty. - Used motor vehicles imported in violation of the provisions
of this executive order shall be subject to the penalties provided for in
Section 5 of Executive Order No. 156 (s.2002).
SECTION 4. Implementing Guidelines - The Inter-Agency
Committee on Used Trucks and Engines created under Executive Orders No. 782
(s.1982), as amended, is hereby directed to formulate and issue the necessary
amended guidelines to give effect to this executive order. The Inter-Agency
Commitee on Used Trucks and Engines may enlist the assistance of other
government agencies and/or private institutions in the effective implementation
of this executive order.
SECTION 5. Repealing Clause - All executive issuances, orders, rules and
regulations or parts thereof inconsistent with the provisions of this Executive
Order are hereby repealed or modified accordingly.
SECTION 6. Effectivity - This Executive Order shall take effect
fifteen (15) days after publication in at least two (2) newspapers of general
circulation in the Philippines.
in the City of Manila, this 5th day of July in the Year of Our Lord, Two
Thousand and Five.
By the President:
EDUARDO R. ERMITA