Saturday, September 24, 2005

CAMPI mulls installation of radio frequency devices on local cars

By Marianne V. Go, The Philippine Star

The Chamber of Automotive Manufacturers of the Philippines (CAMPI) will study the feasibility and cost of installing radio frequency devices on locally manufactured automobiles as part of measures to check the proper payment of taxes and detect imported used vehicles.

According to CAMPI president Elizabeth Lee, CAMPI had met with Customs Commissioner Alexander Arevalo to discuss measures on how to deal with the continued entry of imported used vehicles.

Among the measures discussed was the possible installation of a radio frequency device or RFD.

Lee elaborated that the RFD would be similar to a bar code which would contain specific data about the vehicle and the taxes paid on it.

Authorities, Lee said, could use a device similar to a radar gun to read the data on the RFD.

The device would be installed initially, Lee said, on locally manufactured cars.

However, CAMPI, Lee said is still studying the cost of installing such devices and if they are feasible and would achieve their purpose.

Aside from such measures, however, Lee explained, there are several legal issues that have to be clarified by the Department of Justice.

One particular issue is the clarification of the legal impact of the classification of Subic as a Freeport and also as a "port of entry."

As a freeport, goods that enter the area are supposed to be tax and duty free.

However, designation as a port of entry indicates that the area is still considered part of the Philippine customs territory.

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