BOI REJECTS HYUNDAI PH PLEA TO LIFT SUSPENSION

THE Board of Investments said on Friday that it had denied Hyundai Asia Resources Inc.’s (HARI) appeal to lift a suspension order on its participation in the government’s Motor Vehicle Development Program (MVDP).

In a letter sent to House Committee on Ways and Means Chairman Dakila Cua, Trade Secretary of Registration of HARI under the MVDP program would continue to be suspended pending compliance with the conditions set by the government.

“Wherefore, premises considered, the Board resolves that the Certificates of Registration of Hyundai Asia Resources Inc. under the Car Development Program for Category III dated 10 June 1993 and the Commercial Vehicle Development Program for Category II dated 20 January 1998 as a participant to the Motor Vehicle Development Program under EO No. 156, be suspended, pending compliance,” Lopez’s letter said.

However, Lopez noted in the same letter that HARI had agreed to comply with the order.

“HARI has indicated its acceptance and willingness to comply with the said Board Resolution in a meeting attended by, among from the departments of Trade (including BOI) and Finance (in- cluding BOC),” he said.

He added that HARI had also presented the company’s future assembly process in order to comply with the BOI’s order.

Last year, Lopez announced that the BOI canceled the company’s registration under the car program after the government found that the HARI had been importing semi- knocked down ( SKD) instead of completely knocked down (CKD) kits.

The DTI chief said HARI imported SKDs of its Eon model and another commercial vehicle. He said these models were the ones registered for local assembly under the MVDP.

Currently, completely built-up units (CBUs) are charged a 20 percent tariff while CKDs only have a 1 percent duty.

Lopez said one of the conditions that HARI must comply with is to “implement assembly processes of welding and painting for both models within six months from the receipt of the resolution.”

The company was also ordered to “refund tax and duty differential between the CBU and knocked down parts and components on all importations.”

“The actual amount of refund, mode of settlement, and period for payment thereof shall be determined by the Bureau of Customs,” Lopez said.

“Failure to comply with either compliance requirements shall result in the cancellation of the Certificates of Registration of Hyundai Asia Resources Inc. as a participant under the Motor Vehicle Development Program,” he added.

Lopez said that for purposes of the refund, “HARI shall secure a - ment thereof and submit it to the Board as proof of compliance.”