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__________IMPORTATION OF AUTOS AND HOUSEHOLD GOODS

_____________The U.S. Armed Forces in the Philippines works closely with
__________the Philippine government to control black market operations. In
__________conjunction with this, stringent controls are placed on the sale
__________of household goods and automobiles. The most important rule-of-
__________thumb to remember is: "No item can be sold until it has been in
__________the Philippines for 12 months." With automobiles, this restric-
__________tion is extended to 18 months for personnel here on a 24-month
__________tour. In addition to these restrictions, the Philippine economy
__________is improving daily which reduces the market value of second-hand
__________American products. Don’t expect to make your fortune in the Phil-
__________ippines by selling old merchandise.

_____________As a U.S. citizen you are expected to conduct yourself in the
__________Philippines in a manner which improves the image of America and
__________Americans. A criticism of Americans abroad is the importation and
__________ostentatious display of relatively luxurious automobiles. So
__________importation of a low priced, compact auto helps your country
__________while providing the most practical form of transportation possi-
__________ble during your tour here.

_____________The low-priced auto is more practical for other reasons, main-
__________ly relating to the conditions here. The humid climate and the
__________substandard roads contribute to increased maintenance costs--and
__________Philippine garages and mechanics have ready access to most parts
__________for small cars, whereas parts for larger autos often are not
__________available. Especially difficult to procure and maintain are re-
__________placement parts for power accessories, which must be obtained
__________from the United States. Also, restricting the market for newer,
__________more luxurious autos, are Philippine tax laws, which heavily tax
__________autos relating to their original cost and the number and type of
__________accessories.

_____________Due to these factors, the Commander-in-Chief Pacific Represen-
__________tative, Philippines strongly discourages the importation and sub-
__________sequent resale of expensive automobiles, and has established
__________stringent controls relating to sale of automobiles and to the
__________amount of Philippine currency which can be converted to American
__________dollars--both of which are enforced without exception or devia-
__________tion.



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