Fri, 06 Sep 1996

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)