Monday, 15 June, 2009 | 20:41 WIB
TEMPO Interactive, Jakarta: The Indonesian Iron and Steel Industry Association has complained to Tempo about three common illegal import practices, during an interview last weekend with Irvan Kamal, vice chairman of the association.
Irvan explained that first, importers often reported their imports at lower prices from the actual price or underinvoiced in order to reduce tax payments.
Second, they often reported lower import quantity, and third they registered imported goods into their undesignated classifications, for instance reporting imports of lower quality of steel as higher quality steel.
Irvan said that measures to stop these illegal practices were not working properly yet, while the implementation of Trade Minister Regulation No 21/2009 on Iron and Steel Imports created only a small advantage to the national steel industry.
“We had hoped the policy could address the illegal imports problems that we are concerned about fear,” he said
In addition, the steel association expected the goverment, supported by institutions related to the steel industry, could closely monitor the implementation of the regulation.
Irvan said his association was waiting to find out “how effective the regulation was in improving demand for local iron and steel products”.
The regulation is an amendment to the Trade Ministry Regulation no 8/2009, introduced on 11 June, over two months after the initial plan to introduce the regulation, to control steel imports.