Foreign businesses ask for review of customs law<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Foreign business groups have said a revised customs law is a
\nnecessary part of the government's efforts to reform the
\ncountry's customs service.<\/p>\n
Speaking on behalf of the business groups, Phil Bell, a
\ntechnical adviser for consultancy firm PriceWaterhouseCoopers
\n(PWC), said the customs law should be revised to enhance
\naccountability within the country's customs service and reduce
\nthe opportunity for corruption.<\/p>\n
\"Customs modernization and reform is used as the platform to
\nachieve structural changes and efficiencies in the whole import
\nand export process, and deliver significant economic benefits,\"
\nsaid Bell.<\/p>\n
PWC is a member of the Customs Advisory Committee set up by
\nthe finance ministry with the main task of developing, evaluating
\nand supervising customs policy and administration. PWC was
\nincluded on the committee to represent the International Business
\nChamber of Indonesia, which groups all foreign business chambers
\nin Indonesia.<\/p>\n
The establishment of the advisory committee was part of the
\ngovernment's ongoing efforts to reform the country's customs
\nservice, which is notoriously riddled with corruption.<\/p>\n
There are at least seven articles in Law No. 10\/1995 on
\ncustoms that require revision, Bell said in a e-mail to The
\nJakarta Post.<\/p>\n
One of them is Article 16, which regulates tariffs and import
\ntaxes.<\/p>\n
Bell said there was no simple and clear mechanism in the
\narticle for importers to report honest errors in underpaying
\nimport duties and to settle the payment.<\/p>\n
At present, in case of underpayment the customs office will
\naudit the company in question to confirm the underpaid amounts
\nand then issue an underpayment notice. In some cases, the office
\nimposes penalties.<\/p>\n
The good reputation of an importer can be tarnished once it
\nreceives the underpayment receipt, as customs personnel will make
\nof record of the error, which can deny a company the opportunity
\nto receive special facilities in the future.<\/p>\n
\"There are therefore no incentives to a company reporting and
\nsettling honest mistakes,\" said Bell.<\/p>\n
Several importers said that due to the complex bureaucratic
\nprocess of settling underpayments, many companies would rather
\npay kickbacks to customs personnel than try to settle the matter
\nlegally.<\/p>\n
Bell added that Article 16 also caused uncertainty for
\nimporters as it states that the customs office can provide a
\ntariff classification ruling before or after goods are imported,
\nbut can only provide a valuation ruling after goods have been
\nimported.<\/p>\n
\"Customs valuation is a complex issue, and the inability to
\ngain a valuation ruling prior to entering into binding
\ncontractual arrangements does not provide a company with
\ncertainty,\" said Bell.<\/p>\n
He also recommended for revision Article 93 and part three of
\nChapter VI of the customs law, which includes articles 30 to 35.<\/p>\n
Article 93 deals with the formalities for lodging an objection
\nto a customs assessment in relation to tariff classification and
\nvaluation.<\/p>\n
Part three of Chapter VI of the law deals with customs
\ndeclarations and liabilities for import duties.<\/p>\n
When asked to comment on these suggestions, the head of the
\nCustoms and Excise Division at the Directorate General of Customs
\nand Excise, Agus Sudarmadi, said thus far the directorate general
\nsaw no reason to review the customs law.<\/p>\n
\"We shall not recommend the revision of the customs law to the
\nMinistry of Finance as the law can still adequately accommodate
\nthe interests of all customs stakeholders,\" Agus said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-businesses-ask-for-review-of-customs-law-1447893297",
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"sponsor": "Okusi Associates",
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