CSI policy not a trade barrier for RI products: Official

CSI policy not a trade barrier for RI products: Official

Rendi A. Witular
The Jakarta Post
Jakarta

A new controversial U.S. customs policy was not a form of trade
barrier that would negatively affect Indonesia's exports to the
former country, a visiting U.S. official said Thursday.

U.S. deputy attache for customs at the U.S. Embassy in
Singapore, Peter R. Darvas, however, admitted the new policy
would create small additional expenses for Indonesian exporters.

"None of these initiatives that U.S. Customs has put forward
are designed to impede the relationship with Indonesia," Darvas
said on the sidelines of a seminar on the subject in Jakarta.

The seminar was organized by the Indonesian Shipowners
Association (INSA).

Darvas said the new policy was made in accordance with all
World Trade Organization (WTO) rules.

The U.S. government has launched the Container Security
Initiative (CSI) in the aftermath of the Sept. 11 terrorist
attack. The policy is aimed at protecting containerized shipping
from being exploited by terrorists.

But many Indonesian exporters are worried the new policy will
increase the cost of exports to the U.S. and hamper the delivery
of products.

Under the CSI, exporters must file a report with U.S. Customs
listing goods they plan to ship to the U.S. 24 hours prior to
loading, otherwise the products will not be allowed to enter the
U.S. and the exporters will bear the cost of storage or reexport.

The report must be product specific and if an error occurs in
the report, intentionally or unintentionally, U.S. Customs will
fine the exporter around US$5,000.

Exporters would bear the additional cost of around $25 to use
the U.S. Customs automated manifest system facility for
transmitting the report, and whatever inspection process is
required by CSI regulations.

From the report given, U.S. customs personnel will assess
whether the goods are classified "high risk" or not.

U.S. Customs have assigned the Singapore port as the base for
the U.S. inspection team to probe containers from Indonesia.

The prior inspection measure in Singapore would help reduce
the traffic load of physical inspection at U.S. seaports.

If an examination occurred at the CSI port, such as Singapore,
the host government, not U.S. Customs, must agree to conduct the
inspection.

Darvas said the cost of the examination in Singapore would be
less expensive than the same process at U.S. ports.

Elsewhere, INSA chairman Barens Th. Saragih told The Jakarta
Post the policy would burden local businesspeople with additional
costs for transmission fees and for setting up special online
systems with the U.S. Customs to send the manifest report.

Last week the U.S. government, based on their Bioterrorism Act
of 2002, announced that local exporters supplying food and animal
feed to the U.S. market must register themselves with the Food
and Drug Administration (FDA) to prevent a threat to the U.S.
food supply.