Curbing smuggling an immense task<\/p>\n
By Moeslich Somowiguno<\/p>\n
JAKARTA (JP): Trying to find out which came first, trade or
\nsmuggling, is like trying to answer the chicken or the egg
\nquestion. Smuggling has been around since the early days of
\nofficial trade, especially after regulations were first
\nintroduced by some countries to protect their domestic
\nindustries. Along with growing global business activities, many
\ncountries established new rules and requirements regulating trade
\nwith other countries in order to protect their own interests.<\/p>\n
If only there were no regulations governing duties on imports
\nand exports; if only all manufactured goods were allowed to move
\nfreely into and out of any country in the world without controls;
\nand if only there were no rules such as tariffs, quotas,
\nrestrictions, prohibitions and the like. Then there would be no
\nsmuggling and customs certainly would not be needed.<\/p>\n
Historically customs was unpopular among traders and was the
\nsubject of envy among many quarters. It goes back to the early
\ndays of the Bible, which says of Zacchius, the tax collector:
\n\" ... and he was rich.\"<\/p>\n
Why was customs so unpopular? In what is now Great Britain,
\nthe task of the officers was collecting tax and excise from
\ntraders for the king. These officials were so bitterly hated by
\npeople that cartoonists pictured them as devils sucking the blood
\nout of the traders.<\/p>\n
The unpopularity of the agency and the paradox of their task
\ncontinues today. Customs has the task of maintaining the balance
\nbetween the economy and the public good. The agency has to keep
\nthe flow of goods moving and collect revenue, while enforcing the
\nlaw and rules laid down by different ministers to protect public
\ninterest.<\/p>\n
Traders, who do business to make as much profit as they can,
\nnaturally do not like their money taken from them. They do not
\nwant any interference in the process of their transactions.<\/p>\n
Customs on the other hand, has the official task of taking
\nmoney from traders and making sure that all transactions comply
\nwith prevailing laws and regulations.<\/p>\n
However, in order to get as much profit as possible and pay as
\nlittle tax as possible, traders have always tried to find
\nloopholes, and quite often by means of underpricing (to get
\nreduced import duties) or overpricing (to get capital gain). Such
\nattempt to manipulate the system has led to customs fraud and
\nsometimes to the even more serious offense of smuggling.<\/p>\n
A few weeks prior to the enactment of the Customs Law in April
\n1997, then director general of customs and excise Soehardjo
\nindicated that nearly 50 percent of importers in Indonesia who
\nclaimed drawbacks had no clear address, and out of 200 importers,
\n86 were fictitious. This led to substantial losses in customs
\nduties.<\/p>\n
But Amiruddin Saud, the chairman of the Association of
\nNational Importers (GINSI) said: \"Those fictitious importers are
\nnot listed as GINSI members. The point is not the argument about
\nthe number of fictions importers, it is rather the compliance and
\nthe losses.\"<\/p>\n
Do market forces and all the involved agencies in the trade
\nindustry comply with the prevailing rules and regulations, so as
\nto minimize the possibility of any offenses? Do the officers of
\nthe enforcement agencies observe all the provisions and
\nrequirements so as to avoid the possibility of abuse and prevent
\nthe possibility of too great a loss?<\/p>\n
Whether or not the existence of the Customs Law brought about
\nthe desired results, including the reduction of attempts at
\nsmuggling, remains to be seen.<\/p>\n
Article 102 of the law stipulates the punishment for
\nsmuggling: Any person who imports or exports or attempts to
\nimport or export goods not complying with the provisions by
\nvirtue of this law, shall be penalized for smuggling and
\ntherefore shall be punished with a maximum imprisonment of eight
\nyears and a maximum fine of Rp 500,000,000. Despite the harsh
\npunishment laid down by this article, smuggling remains rife.<\/p>\n
Smuggling is not confined to imports only. The Customs Cargo
\nInspection Office at Soekarno-Hatta International Airport has
\noften foiled attempts of illegal exportation of restricted and
\nprohibited goods, endangered species and protected animals, as
\nwell as pirated goods.<\/p>\n
During the one-year period from April 1998 to March 1999, the
\noffice seized a total of 89,844 pirated disc, ranging from
\nsoftware CDs to VCDs. The value of the goods was estimated at
\nmore than Rp 780 billion (over $US90 million).<\/p>\n
The goods were intended for export to various countries,
\nincluding Hong Kong and Singapore. How are all these pirated
\ndiscs produced in Indonesia? According to Business Software
\nAlliance (BSA), there are allegedly 25 machines operating in
\nIndonesia with a production capacity of 45 CDs per minute per
\nmachine.<\/p>\n
Wayne C. Eglinton, a consultant and representative of BSA in
\nIndonesia, said there were 500 cases of piracy in 66 countries
\nworldwide, including Indonesia. With the help of the National
\nPolice, BSA managed to uncover a number of criminal cases.
\nHowever, these cases were never properly processed or referred to
\ncourt for legal proceedings.<\/p>\n
Why are many importers and exporters easily tempted to
\nsmuggle? For sure there is a lot of money involved. However,
\nthere are a few other factors behind the lure of smuggling.
\nFirst, a popular saying in America is, \"There is nothing money
\ncan't buy.\" In Indonesia we have the old saying, \"Sobat lebih
\nkental dari staatsblad\", meaning friendship is stronger than a
\ncollection of rules.<\/p>\n
This saying suggests that if you have established good
\nfriendships and relationships with people, including influential
\ngovernment officials, there will be no \"problems\" that cannot be
\nsolved.<\/p>\n
Whatever the rules say, the \"problems\" are negotiable. As the
\nlate former vice president Adam Malik said: \"Everything can be
\narranged.\" The combination of the above two sayings makes a
\nlethal \"weapon\" that is devastating to any legal system.<\/p>\n
Poor business ethics coupled with the yawning gap between the
\nrich and the poor -- in which the corrupt administration offers
\nspecial privileges only to certain groups of people, treats
\npeople unfairly and gives legal protection selectively -- law
\nenforcement officers become vulnerable to such a \"weapon\".<\/p>\n
Has the students' call of reformasi brought any change to the
\npolitical and economic systems? Has it brought any change to the
\nattitude of the authorities?<\/p>\n
Many government officials who are supposed to implement the
\nrules and enforce the law often find themselves in awkward
\npositions. When confronted with telephone calls from top
\ngovernment officials they know very well, especially those with
\nwhom they have established friendships, asking for privileges and
\nspecial treatment, they often cannot refuse.<\/p>\n
Trying to play the game according to the rules might cost them
\ntheir \"comfortable\" seats. The case of the notorious Eddy Tanzil
\nis an example. Either fortunately or unfortunately, the case
\nended tragically, and the disgraced agencies, despite their
\ndeclarations that they would chase Tanzil to the ends of the
\nearth, could not do much to trace the fugitive.<\/p>\n
Second, smugglers know very well that customs officials on the
\nfront lines handle staggering amounts of cargo and are not well-
\npaid. General Secretary of the World Customs Organization James
\nShaver once expressed concern that underpaid customs officers
\ncould hinder international trade. An unidentified customs officer
\nin Jakarta has expressed deep concern over the amount of officers
\ntake-home pay.<\/p>\n
Many of his officers who live outside the city have to commute
\nto work every day. \"To get to the office on time, they must get
\nup very early and leave for work when it is still dark to catch
\nthe early buses. Look at the workload. These officers don't get
\nhome until eight in the evening, while their salary is barely
\nenough for the bus fare and their meals, not to mention the daily
\nnecessities for their families and regular bills they have to
\nsettle .... How can they survive?\"<\/p>\n
Indeed, the greed of dishonest traders who constantly seek
\nloopholes to make more money has often created irresistible
\ntemptations for underpaid customs officers. Eventually, payoffs
\nand kickbacks become part of the job.<\/p>\n
Computer automation does not sufficiently guarantee
\nexpeditious service. An importer once said: \"Who presses the
\nbuttons of the computer, Aladdin's genie?\"<\/p>\n
A solution to this problem might well be sought through the
\nconsolidation of rules and regulations. Giving credits as well as
\nrewards for outstanding achievements and seizing goods, as well
\nas auctioning confiscated shipments might also work.<\/p>\n
The writer is a social observer based in Jakarta.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/curbing-smuggling-an-immense-task-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }