Legal basis and policy rationale
- The order is grounded on the State policy under Republic Act No. 8749 to balance development and environmental protection.
- Republic Act No. 8749 requires DENR, with relevant agencies, to develop an action plan for air pollution from motor vehicles consistent with an Integrated Air Quality Framework.
- Republic Act No. 8749 requires DENR to review, revise, and publish emission standards for motor vehicles every two (2) years, or as need arises, considering maximum limits for major pollutants to improve air quality for public health, safety, and welfare.
- DENR Administrative Order No. 04, series of 2015 provides the specific emission limits/standards for motor vehicles, including used motor vehicles, with effectiveness on July 2015.
- The order is anchored on Section 23 of Republic Act No. 8749, which bars introduction into commerce, sale, or use of an imported secondhand motor vehicle engine unless it complies with emission standards set under the Clean Air Act.
- The order also aligns with prohibitions and directions under Executive Order No. 156 (s. 2002) and Executive Order No. 877-A (s. 2010) regarding importation of used motor vehicles, subject to compliance with current emission standards.
- The order recognizes DTI Administrative Order No. 08 (s. 2003) on guidelines for mandatory accreditation of rebuilding centers to ensure rebuilt trucks meet exhaust emission standards.
Scope: CBU used vehicles and Euro 4 rebuilds
- The order governs importation of completely built-up (CBU) used motor vehicles for issuance of a Certificate of Authority (CAI) to Import.
- The order also governs truck rebuilding activities in the country by requiring Euro 4 compliant importation of used parts and components used for rebuilding.
- The required emission standards in the order are Euro 4 emission standards referenced under DENR Administrative Order No. 04, series of 2015 and enforced under Republic Act No. 8749.
Core compliance requirement for CBU imports
- For CBU used motor vehicle importation, the CAI to Import shall be issued only upon submission of a certification of compliance with Euro 4 emission standards.
- The certification must show compliance with the Euro 4 emission limits/standards set forth under DENR DAO 04 s. 2015, as implemented under Republic Act No. 8749.
- The applicable emission limits in the order apply to:
- In use, rebuilt and imported used passenger cars
- Light and heavy duty vehicle
- The order establishes emission limits using the following pollutants and test measures:
- CO (% by vol.)
- At idling HC (ppm)
- At idling Light Absorption Coefficient, m-1
- At free acceleration In use, rebuilt and imported used passenger cars, light and heavy duty vehicle (with values listed under the order)
Euro 4 emission limits by vehicle registration date
- The order sets CO (% by vol.) values as 0.25 and 0.5 depending on registration date categories stated in the order:
- 0.25 for units registered for the first time on or after July 1, 2017
- 0.5 for units registered for the first time after December 31, 2007
- The order sets HC (ppm) at idling values as 3.5 and 100, depending on the registration date categories stated in the order.
- The order sets Light Absorption Coefficient (m-1) at idling using values 1.0, 2.0, and 2.5 based on registration date categories stated in the order:
- 1.0 for units registered for the first time on or after July 1, 2017
- 2.0 for units registered for the first time after December 31, 2015
- 2.5 for units registered for the first time on or before December 31, 2015
- The order sets free acceleration values using the categories and numbers stated in the order:
- 100 for units registered for the first time on or after July 1, 2017
- 250 for units registered for the first time after December 31, 2007
- 600 for units registered for the first time on or before December 31, 2007
Requirements for importing Euro 4 used parts
- For truck rebuilding activities, only Euro 4 compliant used parts and components shall be allowed for importation.
- Euro 4 compliance for used parts and components must be evidenced by a duly issued certification or any documentary proof showing compliance with Euro 4 emission standards.
- The certification must be issued by an authorized vehicle standards agency or a vehicle/parts manufacturer in the country of origin.
- The certification must be duly authenticated by the Philippine Embassy or Commercial Attache.
Certification issuance, authentication, and evidentiary form
- The CAI to Import for CBU used motor vehicles requires a certification showing compliance with Euro 4 emission standards.
- The certification for imported used parts and components must be issued by a recognized/authorized vehicle standards agency or manufacturer in the country of origin.
- Authentication for parts and components must be performed by the Philippine Embassy or Commercial Attache.
- Compliance evidence for parts and components may be a duly issued certification or any documentary proof showing Euro 4 compliance.
Signatories and issuance details
- The order was signed by RAMON M. LOPEZ, Secretary, and CEFERINO S. RODOLFO, Undersecretary, Industry Development and Trade Policy Group.
- It states it was issued in Makati City, Philippines on 14th day of June 2018.
Repeal, separability, and sunset
- No repeal clause, separability clause, or sunset provision is included in the operative prescriptions of the order.