Bapeksta denies it delays import duty refunds
Bapeksta denies it delays import duty refunds
JAKARTA (JP): Tjuk Soeroso, chief of the government-run export
facility agency or Bapeksta, yesterday denied charges by export-
oriented companies that his agency has often delayed import duty
refunds.
He blamed the delay on export-oriented companies slowness in
filing reports on the realization of their exports to his agency.
"The delay occurred as many companies did not immediately
report their exports to Bapeksta," he said when he was asked to
comment on the complaints made by a number of export-oriented
companies over the agency's slowness in releasing bank guarantees
and in repaying import duties.
Over the past several years the government introduced import-
duty drawback facilities to export-oriented companies in efforts
to promote the country's non-oil exports.
Under the drawback scheme, export-oriented companies are
exempted from duties and value added taxes on imported materials
and intermediary goods they use to manufacture products for
export markets.
To get the duty and tax exemption facilities, the companies
are required to place bank guarantees equivalent to the import
duties and value added tax of their imports with Bapeksta. Those
who do not put up bank guarantees should pay the necessary import
duties and value added taxes upon importation of the goods, but
they are entitled to a refund after those imported materials are
exported in the form of finished products.
Complaints
Many export-oriented companies have complained that release of
the bank guarantee and the repayment of the import duties often
take more than six months despite the introduction of simpler
procedures late last year.
The system, which allows export-oriented firms to make reports
on the conversion of imported raw materials into exported
products and reports on the realization of their exports under a
self-assessment system, is designed to reduce the time needed to
obtain a refund and release bank guarantees to 14 days. The
reports were previously handled by the state-owned surveying
company PT Sucofindo.
The Bapeksta chairman said that exporters are often late in
submitting reports, both the realization of exports and the
conversion of the imported raw materials reports, and they also
often file those reports only a few days before the end of the
six-month maturity period of the bank guarantees.
"The result is clear, they have to extend the bank guarantee
which means they have to pay more interest to their banks," he
said in response to the complaints of exporters over increases in
the interest burden resulting from delays in the release of the
bank guarantees.
Tjuk said he did not know the motive of exporters in delaying
the filing of reports.
He said reports on the realization of exports and the
conversion level are very essential as those two reports would
determine the actual amount of the import duty and tax exemption
facilities that should be given to an export-oriented company.
(hen)