Motoring Today Column

Aug 18, 2021

The Department of Trade Industry (DTI) has decided not to impose safeguard duties on imported vehicles as recommended by the Tariff Commission which studied whether this was needed to help protect workers of domestic manufacturers of vehicles and automobile parts.

This is happy news for people who bought imported vehicles covered by the safeguard duties imposed on a provisional basis beginning February of this year.

The DTI also ordered that all cash bonds that have been imposed and previously collected on such vehicles be returned to the buyers.

The DTI based its decision on the report of the Tariff Commission that conducted a formal investigation into the petition to impose a safeguard duties on imported vehicles.

The investigation covered the last five years preceding the application of safety measures or from 2014 to 2019, although import data from January to October of 2020 were also included in the report.

The Tariff Commission report on its investigation found that "there was no increase in imports of CBU passenger cars and CBU light commercial vehicles, both in absolute terms and relative to domestic production" during the period of investigation or POI .

"Since it has been established that CBU passenger cars and CBU light commercial vehicles were not imported in increased quantities (whether absolute or relative to domestic production) during the POI, the determination of serious injury or threat thereof, causation, and unforeseen developments has become moot and academic," the report added.

The TC report noted that the domestic motor vehicle industry - manufacturers, distributors, and importers- cited three events that adversely affected the sector.

These are the adoption of the Euro 4 emission standards which began in 2016 and was fully implemented beginning 2018; the implementation of the TRAIN Law in January 2018; and the emergence of the COVID-19 pandemic in early 2020.

The report pointed out that the domestic motor vehicles industry does not consider the imposition of safeguard measures as the proper relief to improve and support it.

The Tariff Commission also said that "without additional import duties in the form of a safeguard measure, sales of the domestic industry, including that of traders, would improve since consumers will not be discouraged by increased retail prices of imported motor vehicles."

This should help "in boosting economic activity for the anticipated post-pandemic recovery," it added.

As for the petitioners, the workers in auto industry, including downstream sectors like auto parts makers, the TC report said they would benefit from government programs aimed at help local automotive assemblers.

But such programs, like the CARS and CREATE, "will run, and the benefits will be reaped even with the non-imposition of safeguard duties," the TC report said.

The TC said it "believes that employment in the domestic motor vehicles industry will be fostered by the foreseen post-pandemic economic rebound and increasing industry productivity, especially of carmakers participating in the CARS Program."

Finally, the TC said "a safeguard measure is not the appropriate policy to address the domestic labor market issues of its workers in the short run."

Instead, specific measures such as the provision of improved incentives for the labor sector (wage subsidy, unemployment insurance, i.e.) should be studied in-depth and offered by the relevant government agencies.

myTOYOTA APP

There seems to be an app for anything and everything these days. AndToyota has climbed onto this bandwagon with the myToyota app.

Toyota Motor Philippines (TMP) has now upgraded the myTOYOTA app which is available for downloading on iOS and Android users.

With the upgraded and updated app, owning and maintaining a Toyota should be "more fun, safe and convenient."

The myTOYOTA app provides a unified platform to access all information and services one needs from car buying to after-sales and maintenance.

According to Toyota, this digital tool lets existing and would-be Toyota owners enjoy the full cycle of the Toyota life from product and service inquiries, to car maintenance and upgrades, after-sales deals and assistance, and even vehicle trade-ins.

Says TMP First Vice President Sherwin Chualim : "Part of our commitment to providing ever-better products and services is continuously improving the customer experience - from inquiring about your dream Toyota, acquiring and taking care of your vehicle, and moving on to your next Toyota - through any of our 71 Toyota dealerships nationwide or through our amplified digital touchpoints. With the new myTOYOTA app, life with Toyota is made easy, worry-free, and happier in a tap."

Phoenix Racing

Phoenix Petroleum has been an active player in the local motorsports scene. Be it virtual or on-track racing.

When the Covid pandemic shutdown the local motorsports scene last year,Phoenix immediately shifted to e-motorsports with itsYoung Drivers Program and launching theFormua V1 Virtual Cup in partnership with Tuason Racing.

Even with motorsports returning to real circuits, Phoenix is continuing to promote e-motorsports with the holding of the second season of Phoenix PULSE Formula V1 Virtual Cup.

Says Alex Noveno, category manager for fuel of Phoenix Petroleum : "Phoenix as a company has always been eager to support the Philippine racing industry. This initiative ensures we can continue to develop local e-sport talents and sustain the enthusiasm for motorsports, even during the pandemic."

Adds Celina Matias, vice president for Integrated Marketing and Strategies : "During the pandemic, we shifted from physical racing on the track to e-racing. It's diversified who watches racing, and who can participate. The Virtual Cup fuels the competitive spirit, while providing entertainment for all of us in these unprecedented times."

Happy Motoring!!!

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