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)