Govt urged to get tough with THC violators<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government should impose strict sanctions, including a ban on
\nentering Indonesia, against shipping lines that refuse to comply
\nwith a recently introduced regulation reducing the terminal
\nhandling charge (THC) they impose on traders, a domestic
\nshipowners association says.<\/p>\n
\"If there are shipping lines charging more than US$95,
\nexporters and importers should report them to the transportation
\nministry,\" said Indonesian Shipowners Association (INSA) chairman
\nOentoro Surya on Monday.<\/p>\n
Oentoro said the government could revoke violators' licenses
\nto operate in Indonesia to show it was serious in reducing the
\nfee, one factor blamed by local traders for the high-cost
\neconomy.<\/p>\n
Minister of Transportation Hatta Rajasa announced on Nov. 1
\nthat the government had lowered THC from $150 to $95 per 20-foot
\ncontainer and from $230 to $145 per 40-foot container.<\/p>\n
He added that his office had also instructed shipping lines to
\nlower their administrative costs from $40 (about Rp 410,000) to
\nRp 100,000 per container.<\/p>\n
Citing a recent study, the government said that with about six
\nmillion 20-foot containers coming in and out of the country's
\nports each year, exporters and importers could save at least $350
\nbillion a year with the lower fees.<\/p>\n
Despite the announcement by the minister, there have been
\nreports of importers and exporters being required to pay the old
\nTHC and administrative fees.<\/p>\n
Foreign port subcontractors and shipping lines have objected
\nto the proposed fees.<\/p>\n
Port subcontractors have suggested the government remove a 10
\npercent value added tax imposed on all stevedoring charges at
\nports in Semarang and Surabaya in order to lower container
\nhandling charges (CHCs).<\/p>\n
The CHC, imposed by port operators on shipping firms, is the
\nmain component for foreign shipping companies in deciding the
\namount of the terminal handling charge, which represents a burden
\non exporters and importers apart from the actual shipping costs.<\/p>\n
The THC is a kind of surcharge a shipping line imposes on its
\ncustomers, over and above the overall ocean freight rates, to
\nhelp cover extra operational costs in terminals such as paying
\nillegal fees to port operators and security officers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-urged-to-get-tough-with-thc-violators-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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