Customs boosts inspection efforts to curb smuggling<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After being criticized for years for its failure to curb
\nsmuggling and even colluding with smugglers, the directorate of
\ncustoms and excise has announced several programs to show its
\nseriousness in combating the crime.<\/p>\n
As part of these programs, the agency has intensified checks
\non imported goods.<\/p>\n
\"We are now intensifying inspections on imported goods at
\nseaports. Our main purpose is to minimize smuggling and
\nunderinvoicing,\" Eddy Abdurachman, who was installed as the
\ndirector general of customs and excise last month, told The
\nJakarta Post on Monday.<\/p>\n
He did not elaborate on the intensive checks, but the impact
\nof the program has been felt by at least the cell phone market.<\/p>\n
The price of cell phones has reportedly been on the rise due
\nto a lack of supply in the local market.<\/p>\n
Suppliers have blamed this on intensive inspections by the
\ncustoms office, which have made it more difficult for importers
\nto obtain clearance for imported cell phones.<\/p>\n
However, Eddy argued that the customs office had no intention
\nof curbing import flows.<\/p>\n
\"What we are doing is simply boosting inspections,\" he said.<\/p>\n
The agency has granted the facility to only 10 firms of good
\nrepute to clear their imported goods faster and more cheaply
\nthrough customs at Tanjung Priok seaport.<\/p>\n
The ten companies are: PT Toyota Astra Motor, PT Astra
\nDaihatsu Motor, PT General Motor Indonesia, PT Indomobil Suzuki
\nInternational, PT Astra Nissan Indonesia, PT Denso Indonesian
\nCorporation, PT National Gobel, PT Sanyo Industries Indonesia, PT
\nSharp Yasonta Indonesia and PT LG Electronic Indonesia.<\/p>\n
The customs office has long been criticized for its weak
\nperformance and failure to curb both smuggling and
\nunderinvoicing, which have resulted in a huge influx of imported
\nelectronic goods and textiles.<\/p>\n
Many local producers have gone bankrupt or are facing
\nbankruptcy for failing to compete with much cheaper imported
\nproducts.<\/p>\n
As part of efforts to curb smuggling, the customs office has
\nalso launched a program to register all importers and audit their
\nperformance to identify which companies have a tendency to engage
\nin smuggling and underinvocing.<\/p>\n
Many importers listed on the directory provided by the
\nMinistry of Industry and Trade have reportedly used fake
\naddresses to obtain licenses from the ministry.<\/p>\n
Besides, the office, together with the police and the
\ndirectorate of tax, has carried out operations to investigate
\ndozens of textile and electronics firms suspected of smuggling,
\nbased on the list provided by the Crisis Center.<\/p>\n
The center was created by Minister of Industry and Trade Rini
\nSoewandi in the middle of the year to cope with problems
\nconfronting the country's businesses. The center has identified
\nsmuggling as the greatest challenge now facing the local
\nmanufacturing sector.<\/p>\n
Meanwhile, as part of efforts to curb smuggling, Minister of
\nFinance Boediono said on Monday that he was considering cutting
\nluxury taxes (PPnBm) on electronic goods.<\/p>\n
\"We hope the move can help narrow the price margin between
\nimported and locally made products and hence curb the smuggling
\nof electronic goods,\" Boediono said.<\/p>\n
The government currently imposes luxury tax on electronic
\ngoods ranging from 10 percent to 70 percent.<\/p>\n
While local electronics producers have to pay the taxes,
\nillegally imported products can be sold more cheaply, as no such
\ntaxes are paid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/customs-boosts-inspection-efforts-to-curb-smuggling-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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