Friday 18 January
Jan 20, 2018 @ 0:17

HARI ng smuggling: BOI suspends Hyundai for cheating on imports, gives it 6 months to pay back duties


The Board of Investments (BOI) on Friday said it suspended Hyundai Asia Resources, Inc. (HARI), the importer and distributor of Hyundai vehicles in the Philippines, for cheating on its import duties.

The Department of Trade and Industry (DTI) and the Department of Finance (DOF) have given Hyundai six months to pay its back duties and comply with Executive Order 156.

?HARI has indicated acceptance and willingness to comply with the said board resolution in a meeting attended by, among others, high-level officials from the Departments of Trade including BOI, and Finance including the Bureau of Customs (BOC),? DTI Secretary and BOI Chairman Ramon Lopez said in a letter to House of Representatives? Ways and Means Committee Chairperson Dakila Cua.

The BOI suspended HARI starting in Nov. 22 last year under the Car Development Program for category III and the Commercial Vehicle Development Program for Category II.

Lopez said the government suspended the firm’s certificate of registration until HARI implemented its assembly process of welding and painting for its car models within six months from the receipt of the resolutio

The BOI is also seeking a refund of tax and duty differentials between completely built-up and knocked-down parts and components on all importations made by HARI which passed of its fully-assembled imports as knocked downs.
As opposed to a CKD kit which needs further assembly, an SKD simply needs wheels and battery and is almost a completely built up unit.

CBUs , which are almost complete cars except for tires and batteries, are charged 20 percent tariff while CKDs, which has to be assembled with Filipino labor, are slapped a one percent duty.

In the case of HARI, Lopez said its SKD imports came in complete with

But the actual amount to be refunded to the government and the period of payment will be determined by the BOC, the DTI chief added.

?BOI has been actively coordinating with the BOC to provide all information within our purview,? Lopez said.

The top trade official said the BOI would cancel HARI?s participation to MVDP if it failed to comply with the requirements within the given period.

Related Story:

HARI ng smuggling? Hyundai still silent after getting caught cheating gov?t of P1B in duties

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