RI customs law triggers panic<\/p>\n
JAKARTA (JP): Frightened producer importers have stockpiled
\nsix months of supplies, fearing that the implementation of the
\n1995 customs law starting on April 1 could hinder the flow of
\nimports for quite some time.<\/p>\n
The Indonesian Importers Association's chairman, Amirudin
\nSaud, said yesterday the stockpiling of raw materials was likely
\nto cause a deficit in Indonesia's merchandise trade balance
\nduring the first three months of this year.<\/p>\n
However, he continued, the country would regain a surplus in
\nmerchandise trade after April 1, when the customs office
\nintroduced its new imports procedures.<\/p>\n
"Importers worry that the customs office cannot ensure smooth
\nflows of imports after April 1, considering there is to be no
\ntransition period for the new customs procedures. That's our main
\nconcern," Amirudin told journalists after addressing a tax
\nseminar here.<\/p>\n
"However, we do hope the flow of goods after April 1 will be
\nas smooth as and even smoother than the current system of
\npreshipment inspections," he added.<\/p>\n
The current preshipment inspection system requires all imports
\nto be checked by the designated surveyor, state-owned PT Surveyor
\nIndonesia, at points of loading.<\/p>\n
The new customs procedures involve self-assessment on duties
\nand taxes due, on-arrival inspections and post-release audit.<\/p>\n
Amirudin said importers usually stock raw materials for no
\nmore than three months due to the high cost involved.<\/p>\n
"They stockpile many raw materials because they do not want
\ntheir production to be hindered by the unavailability of raw
\nmaterials," Amirudin said.<\/p>\n
Amirudin said importers who had stockpiled imported raw
\nmaterials include those working in the textile, footwear, plastic
\nand steel industries. Such industries depend on imported
\nelements.<\/p>\n
Indonesia recorded a trade surplus of US$6.94 billion last
\nyear. The trade surplus was built on total exports of $49.81
\nbillion against imports of $42.86 billion.<\/p>\n
Last December alone, exports amounted to $4.68 billion, $3.76
\nbillion of which was from oil and natural gas. Imports in the
\nsame month totaled $3.76 billion.<\/p>\n
Speaking on taxes, Amirudin said importers paid $5.35 billion
\nlast year in taxes, mainly in 10 percent sales tax and 2.5
\npercent withholding income tax on their imported goods.<\/p>\n
"That does not include import duties and value-added tax
\nimposed on a number of imported products," Amirudin said.<\/p>\n
Services<\/p>\n
While recording a surplus in merchandise trade, Indonesia has
\nhad a much higher deficit in services, mainly from foreign debt
\nservicing as well as from financial and freight account deficits.<\/p>\n
The government has projected that the country's deficits in
\nservices would reach $15.2 billion next fiscal year, from $13.97
\nbillion this fiscal year. The biggest deficit has always been in
\nthe sea transportation sector.<\/p>\n
Indonesia is projected to spend $5.61 billion in foreign
\nexchange on paying foreign shipping companies to transport
\nIndonesia's exports and imports next fiscal year, which begins in
\nApril.<\/p>\n
Foreign shipping companies transport more than 95 percent of
\nIndonesia's exports and imports.<\/p>\n
The government has taken various steps, including the
\nscrapping of value-added tax on the purchase of vessels, to
\nempower local shipping companies to transport more exports and
\nimports. However the situation has not improved significantly.<\/p>\n
To reduce the deficit, Amirudin suggested that the government
\nintroduce a ruling requiring importers to pay their freight in
\nrupiah.<\/p>\n
"It's quite an easy business. By introducing that measure, you
\nwould be able to reduce the deficit in freight alone by 10 to 20
\npercent," Amirudin said.<\/p>\n
He also suggested the government empower state-owned shipping
\ncompanies by providing them with soft loans to buy more vessels.<\/p>\n
"We importers also want to use local shipping companies to
\ntransport our imports. However, we just cannot find enough
\nlocally owned vessels for our imports," he said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-customs-law-triggers-panic-1447893297",
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