The American Chamber of Commerce of the Philippines (AmCham) on Tuesday denied releasing a report that implied there is smuggling at the Cagayan Export Zone Authority (CEZA).
"Contrary to news reports, the American Chamber of Commerce of the Philippines has never made a public statement or released a report adverting to the occurence of smuggling in Port Irene," Robert Sears, Amcham executive director, told senators during an anti-smuggling hearing Tuesday led by Sen. Francis Escudero.
Sears clarified that the letter AmCham sent to Finance Secretary Margarito Teves, which was used a reference of newspaper reports, did not mention smuggling.
He said the business group even commended the government for gaining "positive headway" in the enforcement of regulations on the used-vehicle importation through the Executive Order 156, which provides "for a comprehensive industrial policy and directions for the motor vehicle development program and its implementing guidelines."
"We remain hopeful that government will continue its enforcement efforts," the American businessman said, reading AmCham's statement before the senators.
A recent Philippine Daily Inquirer newspaper report said AmCham suspects second-hand car operators in CEZA seemed to be "trying to run under the radar system" by staying small.
The used-car importation in Port Irene in Cagayan province, which is the turf of Sen. Juan Ponce Enrile, became controversial with President Arroyo's issuance of an executive order prohibiting the sale of imported used-vehicles outside the freeport zone.
Jose Mari Ponce, administrator of the CEZA, admitted during the early part of the hearing that 9,000 vehicles have been sold from Port Irene.
Ponce said the CEZA allows the sale of used-car imports since there is a pending court decision regarding the legality of the executive order.
The CEZA administrator also disclosed that 9,000 used cars have been sold outside the freeport.
The surplus vehicles, mostly from Japan, were brought out of the freeport with the authorization of the Bureau of Customs, Bureau of Internal Revenue, and the Land Transportation Office.
Sen. Joker Arroyo, meanwhile, questioned why the three government revenue-generating agencies allow the imported cars out of the freeport even if there is an executive order prohibiting the operations.
Officials from the customs bureau said the importation of vehicles at the freeport is being allowed because the executive order’s legality is in question.