MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Order No. 406, November 5, 1991 ]

ALLOWING THE ADDITIONAL IMPORTATION OF COMPLETELY BUILT-UP SECOND- HAND CARS FOR TAXICAB OPERATIONS UNDER CERTAIN CONDITIONS

WHEREAS, the number of completely built-up (CBU) second-hand vehicles for taxicab operations allowed to be imported under Memorandum Order No. 203, series of 1988, and its subsequent extensions, has already been fully availed of;

WHEREAS, according to the Department of Transportation and Communications, the ceiling or quota of 3,924 CBU units remaining to be imported under the aforesaid Memorandum Orders is, on hindsight, unrealistic and ought to be reconsidered/increased in the interest of the taxi-riding public; and, moreover, many of the second-hand cars imported thereunder have to be replaced by next year;

WHEREAS, it is necessary to continue the taxi refleeting, upgrading and expansion program of the Government in order to meet the growing needs of our burgeoning urban populace for comfortable, reliable and affordable public transport;

WHEREAS, of the 10,000 brand new units authorized to be imported under National Emergency Memorandum Order No. 22, series of 1990, the taxi industry has reportedly availed itself of less than 4%, thus revealing the preference of the taxi operators for good, but less expensive, CBU second-hand units;

WHEREAS, it is a government policy to promote the cooperative movement in the business of public transport, including taxi operations;

IN VIEW THEREOF, and upon recommendation of the Department of Transportation and Communications, in coordination with the Department of Trade and Industry, the importation of completely built-up second-hand vehicles for use exclusively as taxi units to the extent of two thousand (2,000) units is hereby allowed up to 30 June 1992, subject to the updated guidelines/procedures/rules and regulations as shall be jointly promulgated by the Department of Transportation and Communications and the Department of Trade and Industry, and subject further to the following conditions:

1. The number of units that may be imported herein shall be in addition to the remaining quota of 3,924 units authorized to be imported under previous Memorandum Orders;

2. One-fourth or 500 of the 2,000 units shall be allocated to taxi cooperatives supervised by the Office of Transport Cooperatives;

3. The vehicles shall not be older than 1985 models;

4. Preference shall be given to the requirements of the taxi operators outside Metropolitan Manila and to those imported under a no-dollar basis; and

5. The Department of Transportation and Communications shall order the phase-out of dilapidated units.1aшphi1

The authorization to import granted under this Memorandum Order shall be an exemption from Memorandum Order No. 136, series of 1987.

This Memorandum Order shall take effect immediately.

DONE in the City of Manila, this 5th day of November, in the year of Our Lord, nineteen hundred and ninety-one.

(Sgd.) CORAZON C. AQUINO

By the President:

(Sgd.) FRANKLIN M. DRILON
Executive Secretary


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