Byline: Willie N Ng

THE Court of Appeals decision declaring that President Arroyo has no power to prohibit importation of used cars is good news for their importers and used car dealers, but not for the rest of the population.

This means that the thousands of used cars, many

This means that the local car industry will be fated to keep its stunted growth, its sales effort blunted by the competition from the undertaxed used cars.

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The court ruled that the Presidents Executive Order No. 156 prohibiting used car importation "has no constitutional and statutory basis and is, therefore, invalid."

But as Sen. Richard Gordon points out, the president invoked the Omnibus Investments Code which provides that the President or the Board of Investments "may restrict, either totally or partially, the importation of equipment or raw materials or finished products involved in the rationalization program."

Executive Order No. 156 clearly states that it is based on this law. How come they did not look at the law?

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The other error is economic and is evident in the courts declaration that "there is a big market of Filipinos who will buy these motor vehicles, more than the market who can afford to buy brand-new cars whether locally manufactured or imported from foreign countries."

It said that stopping the importation and sale of these used vehicles "to the less affluent and depriving thousands of laborers and employees who may depend on this business is an arbitrary exercise of power and a denial of substantive due process."

It failed to consider that the very importation of such vehicles is already a violation of the law against the entry of right-hand drive vehicles.

The employees it mentioned as relying on this business would be those moving from the right to the left things such as the steering assembly, gas, brake and clutch pedals, and dashboard instruments. It is the attempt to legitimize an illegitimate import.

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"The used car importers are bringing in Pajeros, Benzes, and other luxury vehicles yet they are only paying R8,000 in taxes when they should be paying 10 to 20 times as much," Gordon says.

The court worries about the jobs of employees of used car importers. Ford Motors Henry Co has cited the utilization of only 30 percent of car plant capacity, thanks to massive used car importations.

That under-utilization deprives thousands of good jobs, both in assembly plants and car parts factories. What about the billions in investments?