Tokyo seeks Timor car confirmation<\/p>\n
TOKYO (AFP): Japan confirmed yesterday it would complain to
\nthe World Trade Organization (WTO) if Indonesia was found to have
\nimported finished cars from South Korea duty free for its
\n\"national car\" project.<\/p>\n
\"Our stance has not changed. We are awaiting confirmation from
\nthe Indonesian government,\" said an official at the automobile
\ndivision of the international trade and industry ministry.<\/p>\n
Tsutomu Makino, the vice minister of international trade and
\nindustry, said last week that Japan would take \"necessary steps
\nunder international trade rules\" as soon as it confirmed the
\nIndonesian government's stance.<\/p>\n
News reports from Jakarta said that the cars, made in South
\nKorea by Kia Motor Corp. for PT Timor Putra Nasional, were
\ndelivered to customers yesterday.<\/p>\n
Japan, which claims that Indonesia's national car policy of
\ngranting certain cars preferential tax and tariff treatment
\nviolates international trade rules, has been preparing to file
\nofficial complaints with the WTO against the \"national car\"
\npolicy.<\/p>\n
It has been waiting to confirm that 4,000 vehicles imported
\nfrom South Korea under the national car program have avoided
\ntariffs and taxes charged on other imported cars.<\/p>\n
A ministry official was quoted by the Japan Broadcasting Corp.
\n(NHK) as saying: \"There's almost no doubt these cars passed
\ncustoms without taxes being levied on them.\"<\/p>\n
NHK also quoted a senior official from PT Timor as saying in
\nJakarta: \"The filing of a complaint with the WTO is a matter to
\nbe dealt with by governments.\"<\/p>\n
The Timor car was priced at the equivalent of 1.7 million yen
\n(US$15,300), about half the cost of a Japanese car of the same
\nclass in Indonesia, NHK said.<\/p>\n
Suparto Sujatmo, president of PT Timor, said in Jakarta the
\nfirst 4,000 units that had arrived from South Korea were being
\ndelivered to the dealers.<\/p>\n
Delivery began Monday so customers could start receiving the
\nvehicles Tuesday, he was quoted as saying.<\/p>\n
Under Jakarta's policy, producers of a so-called national car
\nare granted exemption on import duties and luxury taxes that add
\nabout 60 percent to the price of other cars in Indonesia.<\/p>\n
PT Timor -- a company controlled by President Soeharto's
\nyoungest son Hutomo Mandala Putra -- was chosen as the first
\nnational car supplier and is required to clear an eventual goal
\nof a local content ratio exceeding 60 percent.<\/p>\n
In a joint venture with Kia Motors, PT Timor is allowed to
\nimport the cars from South Korea until its own factory becomes
\noperational in 1998.<\/p>",
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