'Preshipment inspections should be an option'<\/p>\n
JAKARTA (JP): Indonesian importers suggested yesterday that
\nthey be allowed to choose either preshipment inspections or post-
\nentry audits, which will be introduced with the new customs law
\nto take effect in April.<\/p>\n
\"I think the simultaneous use of the two systems, at least for
\nthe time being, will ensure smooth flows of imports under the
\ncustoms law,\" Amirudin Saud, the chairman of the Indonesian
\nImporters Association told reporters.<\/p>\n
He noted that his members fully supported the enforcement of
\nthe law -- the first law on customs to be enforced since the
\ncountry's independence in 1945.<\/p>\n
Law No.10\/1995 authorizes customs officials to selectively
\ninspect imports on arrival, to conduct post-audits of import
\ndocuments and assess customs duties. These tasks are now done
\nmostly at ports of loading by state-owned PT Surveyor Indonesia
\nunder a contract which is to expire in March.<\/p>\n
The post-audit system seems to be one of businesspeople's
\ngreatest worries because it allows customs to audit import
\ndocuments up to two years after the release of imports
\nand payment of duties.<\/p>\n
During the two-year period, customs officials could order
\nimporters to make up any shortfalls in duties or taxes paid when
\ngoods were cleared.<\/p>\n
The law will introduce the GATT valuation code for assessing
\nimport duties and taxes, replacing a system which is based
\nlargely on export market prices.<\/p>\n
But the government has not yet decided to end preshipment
\ninspections.<\/p>\n
Amirudin said, \"But we sincerely hope that customs officials
\nwill perform their duty transparently and professionally to
\nguarantee fast release of imports.\"<\/p>\n
He asked his members to honestly declare the value of their
\nimports according to customs regulations.<\/p>\n
Many businesspeople have expressed great concern over the
\nstart-up problems likely to arise when the new law is
\nimplemented.<\/p>\n
\"Such worries, I think, are simply normal because there are a
\nlot of big changes to be introduced at the same time in April,\"
\nsaid James Castle, the president of the consulting company
\nBusiness Advisory Indonesia.<\/p>\n
Castle said that people worry about a new system, especially
\nif they were extremely content with the system which had been in
\nuse for about 11 years.<\/p>\n
\"But if the customs service could perform its duty efficiently
\nand effectively there would not be any problem,\" he said.<\/p>\n
But the fact remains that many businesspeople are not
\nconvinced that customs officials would not repeat past mistakes.<\/p>\n
The customs service was notorious for its corruption and
\nextensive red tape before its inspection authority was stripped
\nin mid-1985 with the introduction of the preshipment inspection
\nsystem.<\/p>\n
\"I have heard businesspeople voice a lot of concern over what
\nwill happen in April when customs officials get back their
\ninspection authority,\" Castle said.<\/p>\n
Nonetheless, he added, customs services worldwide were
\nnotorious for being corrupt because of big temptations inherent
\nin their authority.<\/p>\n
The difference lay in the degree and extent of corruption, he
\nsaid.<\/p>\n
Castle conceded that ultimately the customs service would
\nsooner or later have to regain its main responsibility.<\/p>\n
\"The customs service has pledged to work with a completely new
\nattitude and a high level of professionalism,\" he said.<\/p>\n
\"The biggest challenge now is how to enforce the new customs
\nlaw without hindering import flows because imports are very
\ncrucial to Indonesia's export industry,\" Castle added. (vin)<\/p>",
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