UTRIP asks government to review new importation requirements

The Used Trucks Rebuilders and Importers Association of the Philippines (UTRIP) fears that the operations of their members may only have up to June 30, 2019 to continue their business, given a new imposition by the government that the group believes is virtually impossible to comply with.

UTRIP is an association of 25 companies that operate used truck rebuilding centers within Metro Manila, under the umbrella of the Confederation of Truck Rebuilders and Importers Association of the Philippines (CTRIP), which is composed of close to 300 truck rebuilders nationwide. The rebuilders employ about 50,000 highly-skilled production line workers.

The truck rebuilding industry was conceptualized by the government in 2003 through Department Order No. 08-03, which was issued by the Bureau of Import Services of the Department of Trade and Industry.

“We were encouraged to invest by the Government shortly after its introduction 17 years ago in the advent of the implementation of Executive Order No. 156, better known as the ‘Comprehensive Industrial Policy and Directions for the Motor Vehicle Development Program’ issued in the year 2002,” said UTRIP president Jaime Vicente.

In July 2018, DTI-FTEB required the submission of Emission Test Results of rebuilt/imported used trucks from the countries of their origin that they have passed the Euro 4 Standard before a Certificate of Authority to Import (CAI) covering an imported used truck can be issued.

In response to the new requirement, a series of dialogues were held between CTRIP and BOI/DTI-FTEB. It was determined that obtaining Emission Test from their country of origin is extremely difficult. In lieu of this, DTI-FTEB said that the only alternative is to accept an emission test conducted by a domestic testing center, duly accredited by the Land Transportation Office (LTO).

This alternative, however, can only be availed of by truck rebuilders operating inside Freeport zones (considered foreign territoy), since their CompletelyKnocked-Down (CKD) trucks can be unloaded therein without a Certificate of Authority to Import (CAI).

Unfortunately, truck rebuilders operating outside of Freeport Zones, like our members, cannot avail of these services because, in accordance to Bureau of Customs Regulations, imported used CKD trucks that do not have CAIs upon discharge from a carrying vessel are subject to immediate seizure.

Members of UTRIP would like to reiterate that they are responsible and safety-conscious used truck rebuilders. It is UTRIP’s hope that the Government will consider a new classification for thim, distinct from either a brand new or used unit, and that it will give due consideration in future policy decisions. Until such time that a resolution for this matter is reached, CTRIP hopes the DTI-FTEB resume the issuance of CAIs applied for by duly accredited rebuilders, regardless of whether their inside or outside of Freeport Zones.

UTRIP will showcase its rebuilt trucks on May 17 to 18 at the Metrotent at Metrowalk in Ortigas Center. It is open to the public and entrance is free.