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ASEAN officials finalize treaty on customs

| Source: JP

ASEAN officials finalize treaty on customs

JAKARTA (JP): The Association of Southeast Asian Nations (ASEAN)
directors general of customs have finalized the ASEAN agreement
on customs and agreed to recommend that it be signed by the
appropriate ministers.

"The agreement provides a legal framework for customs
cooperation in ASEAN and covers the harmonization of tariff
nomenclature, customs valuation and customs procedures," ASEAN
Secretary-General Dato Ajit Singh said yesterday.

Speaking at a press conference after the conclusion of the
two-day meeting of the ASEAN directors general of customs, Dato
Ajit said that the agreement also reflects the so-called "Castem"
principles: consistency, appeals, simplicity, transparency,
efficiency and mutual assistance of customs.

He said that amid the changing role of customs within the
context of rapid international, regional and domestic
developments, the directors general agreed that they would work
out a bold and long-term vision for ASEAN customs.

ASEAN, which was established in 1967, groups Brunei,
Indonesia, Malaysia, the Philippines, Singapore, Thailand and
Vietnam.

The directors general reiterated their commitment toward
widening and deepening customs cooperation in ASEAN in support of
the implementation of the Common Effective Preferential Tariff
scheme for the ASEAN Free Trade Area and to further remove the
impediments to trade in the region.

They noted that substantial progress has been made in the
harmonization of tariff nomenclature, customs valuation systems
and customs procedures.

They also agreed to institutionalize their meetings, meaning
they would meet at least once a year. Next year, they agreed to
meet in Brunei.

According to Dato Ajit, the meetings will be the sole forum to
oversee customs cooperation work in ASEAN.

Indonesian Director General of Customs and Excise Duty
Soehardjo Soebardi said that the agreement will be signed by
ASEAN economics ministers, who will meet here next week.

However, he said that the directors general were still divided
on whether the customs agreement would be signed by the finance
ministers or by industrial ministers.

He said that part of ASEAN's harmonization efforts in the
customs service will be the adoption of the post audit or on-
arrival inspection system.

"Indonesia and the Philippines still apply preshipment
inspection. But next April, Indonesia will start implementing the
post audit system," said Soehardjo.

Preshipment inspection was launched in Indonesia in mid-1985
under a presidential decree designed to expedite the clearance of
imports at the ports of destination. The system stripped the
customs directorate general of its inspection authority, except
in special circumstances specified by the finance minister.

But the government has yet to decide on whether the
preshipment inspection system, which has been hailed by importers
as the best scheme for facilitating import flows, will be
continued after next April when the new customs law comes into
force. (13)

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