Customs, excise bills<\/p>\n
The bills on customs and excise proposed to the House of
\nRepresentatives by Finance Minister Mar'ie Muhammad on Wednesday
\nare part of Indonesia's effort to adjust its laws to accommodate
\nchanges in business and commerce and to fulfill the new rules of
\nthe multilateral trade agreement under the World Trade
\nOrganization.<\/p>\n
The proposed legislation will be the first customs and excise
\nlaws to be enacted by the government since the country declared
\nindependence 50 years ago. They will replace various acts and
\nordinances promulgated by the Dutch colonial rulers between 1873
\nand 1933.<\/p>\n
Given the increasingly crucial role international trade plays
\non Indonesia's economy and the keener competition on the world
\nmarket, new legislation relevant to current business and
\ntrade practices is imperative indeed.<\/p>\n
The bill on customs, for example, stipulates clear provisions
\non subsidies and countervailing measures as well as anti-dumping
\nmeasures included in the new General Agreement on Tariffs and
\nTrade.<\/p>\n
Indonesian businesses have often been the target of anti-
\ndumping and countervailing measures levied by foreign
\ngovernments. But the Indonesian government itself has not been
\nable to impose similar measures against foreign businesses
\nbecause its customs laws, which date back to as early as 1873,
\ndon't cover such measures. Obviously, when the old laws were made
\nin the 1800s, trading practices like dumping and subsidized
\nexports had not been anticipated.<\/p>\n
Provisions authorizing customs officers to confiscate and hold
\nimports or exports of counterfeit goods are also encouraging.
\nThese stipulations will help strengthen the enforcement of laws
\non copyrights, patents and trademarks. Indonesia has often been
\ncriticized by foreign businesses for being a haven for
\ncounterfeiting practices. The inadequate protection of
\nintellectual property rights has been cited as one of the main
\nhurdles faced by foreign investors in Indonesia.<\/p>\n
The different view of the price of imports and of import
\ntariffs, often a bone of contention between importers and customs
\nofficials, was also addressed by the bill. The draft legislation
\nclearly explains the process of appeal against decisions made by
\ncustoms officers.<\/p>\n
The bill also clearly stipulates that exports are exempted
\nfrom customs checks, except in several special cases to be
\ndetermined by the finance minister. However, imports remain
\nsubject to customs checks set by the finance minister. This
\nprovision is obviously designed to accommodate the present system
\nof pre-shipment inspection which has proven successful in
\nfacilitating smoother import flows and safeguarding state
\nrevenues from customs and duties.<\/p>\n
All in all, the two customs and excise bills submitted to the
\nHouse, together with the bill on the capital market, should be
\nwelcomed as another step forward in improving Indonesia's general
\nbusiness climate and supporting the series of economic reform
\npackages launched since 1985. Several other bills on unfair
\nbusiness practices, consumer protection and investment are also
\nexpected to be presented to the House before the end of the year.<\/p>",
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