(1) Basic situation

The Republic of the Philippines (referred to as the Philippines) is located in southeastern Asia, facing China Taiwan Province across the Bashi Strait in the north, facing Indonesia and Malaysia across the Sulawesi Sea and the Barabac Strait in the south and southwest, bordering the South China Sea in the west and the Pacific Ocean in the east. The Philippines is a multi-ethnic archipelago country in Southeast Asia, with its capital, Manila, with a land area of about 300,000 square kilometers and a population of about 110 million. According to statistics from the Philippine Statistical Coordination Board, the Philippines 'GDP in 2023 will be US$436.62 billion, a year-on-year increase of 5.6%, and the per capita GDP will be approximately US$3868, a year-on-year increase of 4.3%. According to statistics from China Customs, in 2023, the total import and export trade of China with the Philippines will be US$71.91 billion, a year-on-year decrease of 16.0%. The trade volume among the top five trading partners of the Philippines has negative growth. Among them, China's exports to the Philippines were US$52.41 billion, a year-on-year decrease of 16.3%; China's imports to the Philippines were US$19.50 billion, a year-on-year decrease of 15.3%. The main mineral deposits in the Philippines include more than 20 kinds of copper, gold, silver, iron, chromium, and nickel. The copper reserves are about 4.8 billion tons, nickel 1.09 billion tons, and gold 136 million tons. Geothermal resources are expected to have 2.09 billion barrels of crude oil standard energy, and the sea area northwest of Palawan Island has approximately 350 million barrels of oil reserves.

(2) Automobile market situation The Philippines is a left-hand car country, with approximately 50 cars owned by 1,000 people. According to statistics from the Philippine Automobile Manufacturers Association (Campi) and the Truck Manufacturers Association (TMA), the annual car sales in the Philippines in 2023 will be 430,000 vehicles, a year-on-year increase of 21.9%. Among them, passenger car sales were 109,000 units, a year-on-year increase of 24.1%, accounting for 25.4% of total sales. Commercial vehicle sales were 321,000 units, a year-on-year increase of 21.2%, accounting for 74.6% of total sales. In terms of new energy vehicles, the Philippines promulgated Republic Act (RA) 11697 (Electric Vehicle Industry Development Act) on April 15, 2022. RA11697 aims to promote the manufacturing, assembly, import, construction, installation, maintenance, trade and utilization, research and development and supervision of electric vehicles. The new law also stipulates development plans for electric vehicle charging stations. In 2022, among new energy electric vehicle sales in the Philippines, pure electric vehicles accounted for 80.9%, plug-in hybrid vehicles accounted for 18.8%, and fuel cell vehicles accounted for 0.3%: the public sector accounted for 43.2%, and the private sector accounted for 56.8%. In terms of used cars, the Philippines is one of the largest importers of used cars in Asia, mainly importing through ports such as Manila, Subic Bay, and Irene. Japan and South Korea are the main sources of used cars in the Philippines. The best-selling used models in the region include Honda Fit, Toyota RAV4, Toyota Elfa, BMW 5 Series, Mitsubishi Fuso, Isuzu ELF and other models.

(3) Policies and regulations on used car import

1. Import policy

(1) The Philippines only allows the import of left-hand drive vehicles.

(2) There is no age limit for imported used cars, but only used cars registered 6 months or more before shipment can be imported into the Philippines.

(3) The displacement of vehicles fueled by gasoline should be within 2800ml and no more than 1500kg·

(4) Imported vehicles should comply with safety and emission standards set by the Philippine government.

(5) According to Executive Order 877-A, only the following used motor vehicles are allowed to be imported:

·Individuals owned motor vehicles under the Non-Dollar Import (NDI) Program

:: Motor vehicles used by officials of diplomatic missions (imported with the approval of the Ministry of Foreign Affairs)

·Trucks with a gross vehicle weight (GVW) of 2.5 tons and above

·Passenger cars with a gross vehicle weight (GVW) of 6 tons and above

·Special Purpose Vehicle (SPV)

·Motorcycle

2. Tax policy All imported new or used cars from the Philippines are subject to a 40% tariff, a 10% value-added tax and an ad valorem tax of 15% to 100%, depending on their engine displacement. Its book value is the tax base, not the purchase price or acquisition cost. The book value comes from generally accepted reference books for motor vehicles, such as Red Book, Blue Book, and World Book, depending on the source of the imported vehicle.

3. Documents required for import

·Sales order (original)

·Commercial invoices

·Deposit

·Template for chassis and engine numbering

·Import license (issued by the Ministry of Trade)

·Registration documents and certificates

·Proof of arrival

Source: "China Used Car Export Country Guidelines 2023"

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