Calls to abolish THCs intensify<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The country's exporters have become the latest group to call for
\nthe abolishment of terminal handling charges (THCs) imposed by
\nshipping firms grouped under the Overseas Shipowner
\nRepresentatives Association (OSRA).<\/p>\n
The Indonesian Exporters Association (GPEI) said on Thursday
\nthe government should lower the country's high-cost economy by
\nstreamlining procedures, fighting illegal levies and abolishing
\nharbor charges such as THCs and bills of loading (B\/L) fees in
\nports.<\/p>\n
With the government planning soon to raise fuel prices, it was
\nhigh time for measures to ease the burden on exporters, GPEI
\nchairman Amirudin Saud said.<\/p>\n
\"Although it won't burden us significantly, fuel price hikes
\nwill add about 5 percent to our transportation costs. Therefore,
\nthe government should compensate us by cutting high-cost
\neconomies, especially scraping the THCs,\" he said.<\/p>\n
Amirudin said the government should abolish the charges,
\nwhich were not regulated by any laws in the country.<\/p>\n
\"Ban THCs! They are illegal fees imposed by foreign companies.
\nThe government must have the courage to do this,\" he said, adding
\nthat the ban would help boost trade activities and benefit the
\ncountry in the long-run.<\/p>\n
At present, he said, exporters have to pay a THC of US$150 for
\na 20-foot container and $230 for a 40-foot container -- which on
\naverage make up about 10 percent of the total shipping costs they
\nhave to bear.<\/p>\n
The government and exporters, Amirudin said, should not be
\nafraid of a possible boycott by OSRA members because Indonesia's
\nhuge export transactions would eventually attract many other
\nshipping firms, which were not OSRA members.<\/p>\n
\"From Tanjung Priok Port only, our exporters send roughly 3
\nmillion containers of goods every year. Nationally, it can reach
\nabout 5 million containers.<\/p>\n
\"Many other shipping companies, which don't impose THCs, will
\ncome to serve our exporters (should there be a boycott),\"
\nAmirudin said.<\/p>\n
GPEI's calls came only days after the Federation of ASEAN
\nShippers Council (FASC) announced plans to bring the THCs issue
\nto the World Trade Organization (WTO).<\/p>\n
FASC said that ASEAN shippers, which group exporters and
\nimporters in the region, spent $3.6 billion for THCs in 2002,
\nwhile Indonesian shippers spent $1.5 billion on THCs last year.
\n(006)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/calls-to-abolish-thcs-intensify-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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