Easing of rules on used ships sought<\/p>\n
JAKARTA (JP): The Indonesian Importers Association asked the
\ngovernment yesterday to ease restrictions on imported used
\nvessels and reduce tax burdens on local shippers to strengthen
\nthe country's shipping services.<\/p>\n
The association's chairman, Amirudin Saud, told a hearing with
\nthe Trade and Logistics Commission of the House of
\nRepresentatives that the government's policy barring the
\nimportation of used ships has forced many Indonesian ship owners
\nto sail their vessels under foreign flags.<\/p>\n
The importation of used vessels is restricted to protect the
\nlocal shipbuilding industry.<\/p>\n
\"If the condition remains, I'm sure more Indonesians will buy
\nused ships and raise the Panama flag on them,\" Amirudin said.<\/p>\n
At least 100 Indonesian ships are flying Panamanian colors
\nbecause of the advantages it offers, such as lower taxation and
\nits Colon Free Zone, which is the world's second largest free
\nzone after Hong Kong. A free zone is a port where no duties are
\nimposed on ships that load or unload.<\/p>\n
Panama's Consulate-General Raul A. Eskildsen, who visited here
\nlast week, is convincing more and more Indonesian ship owners to
\ntake full advantage of the services provided by his country's
\nflag of convenience.<\/p>\n
Amirudin also asked the government yesterday to reduce tax
\nburdens on local shipping firms. Local firms cannot compete with
\nforeign shipping companies not only due to their weaker fleets,
\nbut also because of their heavier tax burdens.<\/p>\n
\"If the government won't reduce the tax burden on local
\nshipping firms, it should at least impose the same taxes on
\nforeign shipping companies operating in Indonesia so that our
\nshipping firms will be able to compete better,\" Amirudin said.<\/p>\n
Levies<\/p>\n
Local shipping companies are required to pay a number of
\nlevies for operation and docking as well as income taxes, import
\nduties and sales tax.<\/p>\n
Tax Director General Fuad Bawazier said last December that the
\nwithholding tax imposed on foreign shipping companies will be
\nincreased as part of the government's tax expansion program. But
\nthe government's newest tax rulings, announced here last week, do
\nnot cover such a withholding tax.<\/p>\n
Foreign shipping companies presently transport around 90
\npercent of Indonesia's export and import goods and another 40
\npercent of goods shipped within the country.<\/p>\n
Amirudin noted yesterday that Indonesian importers and
\nexporters have very little \"say\" in deciding what shipping
\ncompanies will be used to transport their planned export or
\nimport goods.<\/p>\n
Most importers, he said, open letters of credit for their
\noverseas suppliers with Cost, Insurance and Freight
\narrangements, while most exporters open letters with Free on
\nBoard arrangements.<\/p>\n
\"Either way, we are very weak in deciding what shipping
\ncompanies will be used,\" Amirudin said.<\/p>\n
The association also reaffirmed its support of the present
\npre-shipment inspection procedure, which it claims is the most
\neffective and efficient system for securing smooth import flows,
\npreventing administrative smuggling and safeguarding government
\nreceipts from import duties.<\/p>\n
\"The pre-shipment inspection system, which was launched in
\n1985, is the best since we declared our independence in 1945,\"
\nAmirudin contended. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/easing-of-rules-on-used-ships-sought-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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