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Harianjogja.com, JAKARTA – US Trade – The United States has an effect on the country's tire industry. In addition to the issuance of Permendag No. 6/2018 on the import provisions of more and more tires complicate the steps of the domestic tire industry players.
Azis Pane, president of the Indonesian Tire Employers' Association, said that national tire contractors are racking their brains to overcome the two pressing issues. According to him, such pressure seems to erase the profit of tire contractors from the continued decline in world rubber prices throughout the year.
"If the US really imposes high tariffs on Chinese exports, especially on tires, we should be ready to flood products imported from China, because all of this time, the United States has become the number one destination for tire exports from China, "he said on Tuesday (3/7).
It was held that the phenomenon was lowering the turnover of the national tire company. According to him, the export of Panda tires to Uncle Sam reaches 200 million units a year. If tariffs on pneumatic products are applied by Washington in Beijing, China's tire exports should be diverted to other countries that are its main trading partners.
Azis recorded an average decline in revenue of domestic tire companies throughout the year reached 15%. The decrease was caused by the latest policy of the Ministry of Commerce, Permendag No.6 / 2018, which replaced the Regulation of the Minister of Trade No.6 / 2016 concerning the conditions of importation of tires. "The rule is that [aktivitas] tire imports are more and more relaxed, under the pretext of an examination of the borders transferred to post-border in order to speed up the flow of Indonesian exports. to import.Because we see a lot of naughty importers facilitated by the policy, "said Azis.
The policy was found to be more difficult to develop in the national tire sector. Plus, imported tires are cheaper because they have started to flood the market. He said domestic tire market share currently controls only 56% of total demand in the country. Meanwhile, the rest is dominated by imported tire products. Currently, domestic tire contractors earn little through their export activities, especially in the United States.
The reason, a number of the country's products, including tires, have an incentive to enter Uncle Sam by the Generalized System of Preferences (GSP) policy. The GSP itself is the policy of exemption from customs duties on imports on imports of certain goods from developing countries.
Not Loose
The Director General of Foreign Trade, Oke Nurwan, rejects the latest regulation on imported tires which provides compensation for the importation of tires. The reason is that the bylaw does not eliminate a rigorous inspection process for the import business of tires.
"We are simply pbading the process of border surveillance to posterior So, the surveillance model has changed, the rest has not changed. 39, one of the amended articles in the Permendag, the verification provisions of the tire import process no longer have to go through the Director General of Industry, Chemistry, Textile and the Ministry of Industry. 39. Multiple Industries Only through the Director General of Foreign Trade Ministry of Commerce
Source: Bisnis Indonesia
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