Implementation of the Progressive Truck Manufacturing Program

August 27, 1977

LETTER OF INSTRUCTIONS NO. 590

In order to effect a strategy for a gradual rationalization of the Progressive Truck Manufacturing Industry and to protect the interest of consumers and end-users, you are hereby directed to implement the Progressive Truck Manufacturing Program (PTMP) and to allow the importation of new and used trucks and diesel engines subject to the following conditions:

1. The coverage of the PTMP shall be limited to 20,000 lbs. GVW and below until June 30, 1978. Used reconditioned trucks above 30,000 lbs. GVW may be imported until June 30, 1978. Starting July 1, 1978 the PTMP coverage shall include trucks in the 20,000 to 30,000 lbs. GVW range while importations of used trucks shall be limited to 40,000 lbs. GVW and above. All used trucks importation shall be subject to the guidelines issued by the Inter-Agency Committee on Used Trucks and Tires created under LOI No. 389 dated 24 March 1976. aisa dc

2. New trucks of 20,000 lbs. GVW and above will be allowed to be imported as SKD, CKD or CBU subject to existing tariffs and taxes up to June 30, 1978.

3. New trucks of 30,000 to 40,000 lbs. GVW and above will be allowed to be imported as SKD, CKD, or CBU subject to existing tariffs and taxes.

4. The importation of used trucks above 40,000 lbs. GVW will be allowed up to June 30, 1980 when this policy shall be reviewed.

 The importation of used diesel engines larger than 40 h.p. will be allowed up to June 30, 1978 when this policy will be reviewed to determine the extent and period to which it may be continued without eroding the viability of diesel engines manufacturing projects.

5. Prior to registration by the Land Transportation Commission reconditioning of imported used trucks by accredited reconditioning centers shall be required by July 1, 1978. Such reconditioning centers shall be required to maintain a minimum of facilities and technical skills which will enable used trucks to be reconditioned domestically according to minimum standards of performance and safety. These reconditioning centers shall be regulated and supervised by the Department of Industry.

For this purpose, you may enlist the assistance of other government agencies and/or private institutions in the effective and proper implementation of this Order.

DONE in the City of Manila, this 27th day of August, in the year of Our Lord, Nineteen Hundred and Seventy-Seven.