The Department of Trade and Industry placed a cash bond on imported cars and light commercial vehicles to protect both local metal and local carts parts producers.
Imported passenger cars will be charged an extra P70,000 per unit while light commercial vehicles will cost P110,000 more each.
The measures will be enforced for 200 days from the issuance of a written order from the Bureau of Customs.
The tax was imposed in response to a petition by the Philippine Metalworkers’ Alliance, which aims to protect the local industry from losing sales to foreign manufacturers. The alliance is formed by various firms involved in the automotive, iron and steel, electronics and electrical sector.
DTI secretary Ramon Lopez said that this measure was in place to provide equal opportunity for local participants.
“While we generally do not restrict products coming into the marker, we also need to ensure the level playing field for our local industry,” he said.
According to the trade department, passenger car imports have increased by 35% from 2014 to 2018, over four times the amount of locally produced vehicles. Imported pickup trucks and similar vehicles have also increased by three times within the same period.