Pre-shipment inspection debated in legislature<\/p>\n
JAKARTA (JP): House deliberation on the customs bill was
\ndominated by the pros and cons of the pre-shipment inspection
\nsystem for imports which has been in use since the middle of
\n1985.<\/p>\n
The associations of Indonesian importers, exporters and ship-
\nowners led by Amirudin Saud on one side and economist Rizal Ramli
\nfrom the Econit economic research institute on the other argued
\nyesterday before the House's Golkar faction over the best customs
\nclearance system for Indonesia.<\/p>\n
The three associations, which prefer the current pre-shipment
\ninspection system, demanded that the pre-shipment inspection for
\nimports be stipulated clearly in the bill, while Econit suggested
\nthat the bill be left open for either pre-shipment inspection or
\npost-shipment customs checks.<\/p>\n
Amirudin, chairman of the Indonesian Importers Association,
\nargued that the pre-shipment inspection system has greatly
\nfacilitated smoother imports.<\/p>\n
\"The present system has proven to be quite effective in
\nfacilitating the smooth flow of imports, cutting importing costs,
\nminimizing administrative irregularities and under-invoicing,\"
\nAmirudin said at the hearing.<\/p>\n
Also present at yesterday's hearing were Hamid Ibrahim Ganie,
\nchairman of the Indonesian Exporters Association, and Syawal of
\nthe Indonesian Ship-Owners Association.<\/p>\n
Amirudin noted that pre-shipment inspection helps prevent the
\ncustoms officials from abusing their power, which occurred
\nfrequently before the introduction of the system in 1985.<\/p>\n
\"If we return to the old system, I'm sure that there will be
\nmany problems, especially the possible collusion between customs
\nofficials and businessmen and more congestion at our ports,\"
\nAmirudin said.<\/p>\n
However, Rizal contended that the post-shipment inspection
\nsystem differs greatly from the on-arrival inspection system,
\nwhich was employed by Indonesia until 1985.<\/p>\n
On-arrival inspection of imports caused congestion and delay
\nat sea ports because the customs officials inspected all imported
\ngoods at the local ports, Rizal said.<\/p>\n
He said that the post-shipment, or post-audit system, is
\nbasically a self-assessment system, by which customs officials
\ninspect containers selectively. Inspections can even be done in
\nthe importers' warehouses or factories.<\/p>\n
\"After ten years of the pre-shipment inspection system, it is
\ntime for Indonesia to gradually adopt the post-audit system,\"
\nRizal said.<\/p>\n
The pre-shipment inspection system was launched in 1985 under
\na presidential decree, which stripped the customs and excise
\ndirectorate general of its inspection authority. The government
\nlater assigned the Geneva-based Societe Generale de Surveillance
\n(SGS) to inspect Indonesian imports at points of loading.<\/p>\n
The contract with SGS was modified in 1991 after the
\ngovernment formed a new inspection company, PT Surveyor Indonesia
\n(PTSI), in a joint venture with SGS. The main contract for
\ninspection was later awarded to PTSI, which in turn hired SGS as
\na sub-contractor. PTSI is expected to eventually take over the
\nwhole inspection from SGS.<\/p>\n
However, Rizal contends that the cost of the pre-shipment
\ninspection system to the government was too high.<\/p>\n
\"After ten years of SGS's operation here, customs officials
\nstill had no access to SGS's data and information system,\" Rizal
\nsaid.<\/p>\n
However, most port users, including all foreign businessmen,
\nhave demanded the maintenance of the present system.<\/p>\n
\"If cost is the main issue, we importers are wiling to bear
\nthem,\" Amirudin pointed out.<\/p>\n
He added that the costs are actually negligent compared to
\nthe great benefits, citing the smooth import flows that have
\nsharply reduced importing costs.<\/p>\n
Moreover, Amirudin added, since Indonesian industrial
\ncompanies depend largely on imported raw, intermediate and
\ncapital goods, any delay or snag in import flow will adversely
\naffect the competitiveness of the country's exports. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pre-shipment-inspection-debated-in-legislature-1447893297",
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