The motorcycle sector asked the government to audit the compliance of motorcycle participants in the Motorcycle Development Program amid the projection of higher sales in 2017.
The program grants registered firms zero tariff on imported motorcycle units.
Motor Development Program Participants Association president Armando Reyes said the industry aimed to boost sales in 2017 to 1.9 million units from 1.14 million units. The association, consisting of motorcycle manufacturers Honda, Kawasaki, Suzuki, Yamaha and Kymco, breached the 1 million sales mark for the first time in 2016 with a 34 percent year-on-year sales growth.
“Audit is a major advocacy of the group after their petition three years ago to the Board of Investments, which administers the program, did not yield results,” he said.
Motorcycle assemblers are given 1 percent tariff for completely knocked-down imports and five percent for those importing completely built-up units.
CBU imports from China come in at 20-percent tariff, while units from India are slapped with 20 percent to 22 percent tariff. To be able to enjoy the preferential import tariff, companies must invest $2 million for parts manufacturing.
“We just want to have fair level playing field. This is our advocacy to have a fair level playing because if some complies with the requirements then they are entitled to get the incentives,” said association vice-president Alfredo Lejano Jr.