Import duty rebate processing still time consuming<\/p>\n
JAKARTA (JP): Indonesian importers yesterday complained over
\nthe slowness of getting value added tax and import duty rebates,
\nwhich are offered to export-oriented companies, despite the
\nintroduction of the new procedures.<\/p>\n
Amiruddin Saud, chairman of the Association of Indonesian
\nImporters (Ginsi), said yesterday the time needed to obtain the
\nfacilities is still much longer than the 14 days promised by the
\ngovernment.<\/p>\n
\"It often takes three months despite the introduction of the
\nnew system,\" Amiruddin told newsmen at the opening of the
\nassociation's new headquarters at the Bank Niaga Building on Jl.
\nThamrin, Central Jakarta.<\/p>\n
Bapeksta, the government run export service facility agency,
\nintroduced new measures in April to simplify the previously time
\nconsuming and tedious procedures in the application for import
\nand value added tax rebates (drawback facilities) given to
\nexport-oriented companies.<\/p>\n
The new procedures, which also includes the introduction of a
\nself-assessment system on the use of imported materials, are
\ndesigned to reduce the time in receiving reimbursement of both
\ntaxes to 14 days. Many export-oriented companies complained that
\nit often took over six months to get the reimbursement.<\/p>\n
During the introduction of the new system Bapeksta chairman
\nTjuk Soeroso blamed the state-owned surveyor Sucofindo, which
\nhandled the inspection of the utilization of imported materials,
\non the long-delay.<\/p>\n
Bapeksta could not immediately order the reimbursement of the
\nduty and tax payments as most documents filed by Sucofindo were
\ninvalidated.<\/p>\n
The contract given to Sucofindo was terminated last October
\nand importers now register the use of imported materials in the
\nprocessing of export-oriented products under a self-assessment
\nsystem.<\/p>\n
Unexpected<\/p>\n
Amiruddin, however, complained that the new system did not
\nwork as expected. The application might arrive at the desk of the
\nBapeksta's chief within 14 days as promised but reimbursement
\nstill took another three months, he said.<\/p>\n
\"I don't know why it happens. I hope Bapeksta officials don't
\ndo it intentionally,\" he said.<\/p>\n
To obtain the duty and tax redemption facilities, the
\nimporting companies are required to establish bank guarantees
\nequivalent to the import duty and value-added taxes of their
\nimports. Bapeksta releases the bank guarantees and pays the
\nreimbursement after it approves the application.<\/p>\n
The delay in the approval of the facilities increased overhead
\ncosts of industrial companies as they had to pay fees on bank
\nguarantees, and also significantly affected their cash flow,
\nother importers said.(hen)<\/p>",
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