Investvine-Feb 7
Philippine President Rodrigo Duterte on Feb 6 personally oversaw the destruction of more than $1.2 million worth of smuggled luxury and classic cars at the Bureau of Customs in Manila just days after he promised the demolition of vehicles illegally brought to the country by circumventing customs.
Destroyed by driving over them with a bulldozer were 20 illegally imported vehicles which included brands such as BMW, Jaguar, Audi, Mercedes, Ford, Lexus and even a classic and very rare shiny white 1969 Corvette Stingray in excellent condition.
Ten more cars, among them a fleet of Toyota Land Cruisers, were bulldozed in Davao and Cebu. The remains of the flattened vehicles will be sold to scrapyards, the customs department noted. The cars were seized at the Manila International Container Port, the Port of Subic, Davao Port and Port of Cebu.
Duterte, known for his unconventional approach to governing, declared that he would no longer allow the auction of smuggled luxury cars as this was being taken advantage of by importers to skirt paying the right amount of customs duties. He said that some importers would smuggle in the cars, and in case they are confiscated by customs, they would wait for one year and six months and cheaply re-acquire them at auctions under another business license which makes the cars legal.
Vehicle smuggling is a big problem in the Philippines where car taxes can go as high as 50 per cent for cars valued over approximately $77,000.
However, there have been mixed reactions towards the action. Some said that the cars should have been sold to private buyers after a background check if they were related to any illicit importers. Others suggested that some of the cars should have been added to the president’s fleet or otherwise used as government vehicles in order to help reducing public expenses.
Car enthusiasts bemoaned the wrecking of the rare Corvette estimated to have a collector’s price tag of more than $50,000 and said this true US classic should have been put on display in a museum or sold to a classic car connoisseur.
The rest, on the other hand, said that this show of force can and will deter smugglers in the future.