Authorizing the Importation of Automobiles for Public Transportation Purposes under a Tax Deferred Payment Plan

May 14, 1990

NATIONAL EMERGENCY MEMORANDUM ORDER NO. 22

AUTHORIZING THE DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS, THE METRO MANILA TRANSIT CORPORATION, AND THE PHILIPPINE NATIONAL RAILWAYS TO IMPORT IN BEHALF OF BUS AND TAXICAB OPERATORS 3,000 COMPLETELY BUILT-UP OR COMPLETELY KNOCKED-DOWN BUSES AND 10,000 UNITS OF COMPLETELY BUILT-UP OR COMPLETELY KNOCKED-DOWN UNITS OF AUTOMOBILES, FOR PUBLIC TRANSPORTATION PURPOSES ONLY UNDER A TAX DEFERRED PAYMENT PLAN

WHEREAS, one of the principal causes of the present transportation crisis is the aged, dilapidated and inadequate number of buses and taxicabs operating in the country, particularly in Metropolitan Manila;

WHEREAS, there is a need to put in operation at the earliest possible time, 3,000 buses and 10,000 taxicabs to replace and refleet the aging stock of buses, and taxicabs and towards this end, bus and taxicab operators as well as local vehicle manufacturers and assemblers have expressed the willingness to pay the cost of acquiring completely built-up or completely knocked-down buses and taxicabs;

WHEREAS, the grant of authority to the Department of Transportation and Communications, the Metro Manila Transit Corporation and the Philippine National Railways to import the aforesaid motor vehicles under the tax deferred payment plan will ensure the replacement and refleeting of the aging stock of buses and taxicabs at the lowest possible prices without prejudice to local vehicle manufacturers and assemblers;

WHEREAS, under Republic Act No. 6826, the President is authorized to issue such rules and regulations as may be necessary "[to liberalize the importation and/or grant incentives for the manufacture, assembly, reconditioning, or importation of needed vehicles or vessels, including the necessary parts thereof, for public transportation to relieve the transportation crises" (Section 3[4], R.A. No. 6826);

WHEREAS, there is also a need to extend to locally-manufactured and assembled buses and automobiles for taxicab use whatever privileges that may be extended to their imported counterparts and to make sure that such privileges are passed on by local manufacturers and assemblers to the concerned government agencies or bus and taxicab operators through lower selling prices made possible by lighter modes of tax payment;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of powers vested in me by the Constitution and Republic Act No. 6826, do hereby order:

SECTION 1. The Department of Transportation and Communications, the Metro Manila Transit Corporation and the Philippine National Railways X are hereby authorized to import in behalf of bus and taxicab operators, whether singly or on a joint basis, 3,000 units of completely built-up and/or completely knocked-down buses and 10,000 units of completely built-up and/or completely knocked-down units of automobiles, for public transportation use only under a tax deferred payment plan: Provided, That the aggregate of such units imported, whether singly or on a joint basis, shall not exceed the numbers herein specified: Provided, Further,That the units so imported shall consist of standard bus and taxicab requirements only: Provided, Finally, That in the case of automobiles for taxicab use the engine displacement shall not exceed 1600 cc.,if gasoline-fed, or 1800 cc.,if diesel-fed. LibLex

SECTION 2. The Department of Transportation and Communications, in coordination with the Department of Trade and Industry, Metro Manila Transit Corporation and Philippine National Railways, shall adopt the guidelines and procedures governing the manufacture and assembly of buses and automobiles for taxicab use, as well as specifications of standard bus and taxicab requirements and the terms and conditions of this Memorandum Order.

SECTION 3. The taxes and duties covering the importation of bus and taxicab requirements under the tax deferred plan payment authorized herein shall be on account of the concerned agencies from which the taxes and duties shall be collected. Such duties and taxes shall be paid for by the bus or taxicab operators to the concerned agencies on a staggered basis. In the case of locally-manufactured and assembled buses and automobiles for taxicab use, the value-added tax and/or excise tax shall be payable also on a staggered basis by the local vehicle manufacturers or assemblers.

SECTION 4. The Department of Transportation and Communications, in coordination with the appropriate agencies of the government, shall take all steps necessary to cause the importation of the bus and taxicab requirements not later than December 31, 1990. The concerned agencies shall take all steps necessary to put these buses and taxicabs into operation within the earliest possible time

SECTION 5. The Department of Transportation and Communications, in consultation with the Department of Finance and Department of Trade and Industry and other concerned agencies of the government, shall promulgate the necessary rules and regulations to implement the provisions of this Memorandum Order.

SECTION 6. Any official or employee of the concerned government agencies who authorizes the importation of the buses and automobiles for taxicab use, whether completely built-up or completely knocked-down or who orders, causes, or effects the transfer or diversion of such vehicles for purposes other than those provided in this Memorandum Order or any party who willfully connives with such government official or employee shall be punished in accordance with the pertinent provisions of the Revised Penal Code, as amended, and other appropriate laws thereon.

No buses and automobiles acquired under this Memorandum Order shall be disposed of within five (5) years from date of acquisition. Any disposition of the buses and taxicabs acquired under this Memorandum Order by qualified bus and taxicab operators and/or local vehicle manufacturers and assemblers within five (5) years from date of acquisition shall make the bus and taxicab operators and/or local vehicle manufacturers and assemblers responsible for the said disposition to pay twice the amount of the tax and duty applicable thereon, without prejudice to such other penalties as may be imposed by the concerned agencies under existing laws. llcd

SECTION 7. This urgent Memorandum Order shall take effect two (2) days after its publication in at least two (2) national newspapers of general circulation.

DONE in the City of Manila, this 14th day of May, in the year of Our Lord, nineteen hundred and ninety.