Global Automotive Export Resource Guide | Page 168

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For Information about exporting to Philippines contact:

Jeane Santiago

U.S. Embassy Manila, Philippines

Commercial Assistant - Auto & Smart Mobility Team

Jeane.Santiago@trade.gov

+63-2 301-2696

Customizing utility vehicles for a specific purpose, for example, school bus, passenger vans, and ambulance is allowed.

The vehicles should be registered with the Land Transportation Office (LTO) as such. There is a need for customization not only for individuals but for commercial establishments and institutions like schools and hospitals, and local government units.

Used and Remanufactured Market

Executive Order No. 156 (EO 156) as amended by Executive Order No. 877-A (EO 877-A) prohibits the importation of used cars (except those owned by returning residents) and regulates the importation of used vehicles and used engines, parts, and components.

Due to cost considerations, commercial businesses in the Philippines, especially the SME’s, prefer used and remanufactured vehicles for their delivery and hauling operations. In general, U.S. trucks are known for its high quality, durability, and reliability. However, U.S. trucks face tough competition from used Japanese trucks and brand new trucks from Japan, China and other Asian countries. Asian trucks are generally more affordable and easier to ship to the Philippines.

The Philippines has a truck rebuilding program that allows used trucks to be imported into the country completely knocked-down (CKD). Only the 172 accredited rebuilders nationwide are allowed to import trucks as CKD’s. There is more opportunity for used and remanufactured auto parts from Asia than the U.S. since Asian vehicles dominate the market. Used auto parts mostly come from Japan.

The Fair Trade Enforcement Bureau (FTEB), an agency of the Philippine’s Department of Trade and Industry (DTI) regulates the importation of used motor vehicles of returning residents, used trucks, used buses, used special purpose vehicles, used engines, parts and components for all motor vehicles and CKD parts for rebuilding.

The FTEB issues the Certificate of Authority to Import (CAI) and if applicable, Release Certificate (RC), for the importation and release of the above-mentioned commodities.

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