World Bank urges customs office to improve service<\/p>\n
By Prapti Widinugraheni<\/p>\n
JAKARTA (JP): The World Bank yesterday urged Indonesia's
\ncustoms office to expedite its new customs clearance system if it
\ndid not want to risk being a barrier to sustainable economic
\ngrowth.<\/p>\n
World Bank staff member Lloyd Kenward warned that if the
\ncustoms office failed to ensure a smooth and quick transition
\nfrom the previous pre-shipment inspection system to the current
\non-arrival inspection system, Indonesia's competitiveness would
\nweaken.<\/p>\n
This could in turn reduce foreign direct investment flow into
\nthe country and slow economic growth, he said.<\/p>\n
Kenward said that while the World Bank recognized the need to
\nend the pre-shipment inspection system, it was concerned about
\nhow the transition process would take place.<\/p>\n
\"Business people around the world will observe the
\ntransition ... The customs office will be under their magnifying
\nglass,\" he said.<\/p>\n
Kenward suggested the customs office allow an independent
\nagency to monitor the transition process to make sure it did not
\njeopardize the economy.<\/p>\n
\"If no improvement is achieved, we suggest more forceful
\nmeasures be imposed,\" he said. He did not elaborate.<\/p>\n
Kenward was speaking at a discussion on the new customs law
\nheld by the Directorate General of Customs and Excise Tax.<\/p>\n
The discussion, led by Director General of Customs and Excise
\nSoehardjo Soebardi, was also attended by Secretary General of the
\nWorld Customs Organization, James W. Shaver, Director General of
\nTaxes, Fuad Bawazier, and representatives from importer companies
\nand international organizations.<\/p>\n
The government launched in April a combination of on-arrival
\ninspection and post-entry audit systems with self assessment of
\nimport duties, in coincidence with the enforcement of the new
\ncustoms law.<\/p>\n
The system replaced the pre-shipment inspection of imports
\nwhich was introduced in mid-1985 to bypass the then corruption-
\ninfested customs service.<\/p>\n
Shaver reminded the customs office of the tremendous task it
\nhad managing and implementing the new customs law.<\/p>\n
\"In terms of quickness and magnitude, the change that the
\ncustoms office must go through is perhaps the biggest to have
\never happened in the world,\" Shaver said.<\/p>\n
Shaver acknowledged that a big challenge of the transition
\nprocess would be educating those involved to apply the electronic
\ndata interchange (EDI) system -- the backbone of the new customs
\nclearance system.<\/p>\n
\"It's a big responsibility, but it's not impossible,\" he said.<\/p>\n
The EDI system was designed to enable importers to send their
\ncustoms declarations electronically to the customs office and
\nelectronically pay import duties to designated banks.<\/p>\n
The system electronically connects the customs office with
\nimporters, shipping firms, foreign exchange banks and port and
\nairport authorities.<\/p>\n
So far, only a few institutions have connected to the system,
\ncausing many observers to question its effectiveness.<\/p>\n
Last month, only 222 or 2.7 percent of the 8,000 licensed
\nimporters were connected to the EDI system.<\/p>\n
Soehardjo said that the customs office was not the only
\ninstitution involved in the process of clearing imports and
\nexports, so it should not be the only one blamed for the
\nunsatisfactory service that still prevailed.<\/p>\n
\"There are many institutions involved, including port
\nauthorities, shipping agents and brokers, importers and
\nexporters,\" he said.<\/p>\n
Shaver suggested the government set a common minimum standard
\nfor all agencies, offices and companies that want to be involved
\nin port activities.<\/p>\n
\"A threshold such as this will allow them to have a common
\nunderstanding of customs procedures and laws, so they can
\nfacilitate -- instead of slow down -- import and export
\nactivities,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/world-bank-urges-customs-office-to-improve-service-1447893297",
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