Thu, 02 Aug 2001

Customs boasts faster service

JAKARTA (JP): Responding to exporters' concern, customs and excise claim its export inspection service has saved more time through improved efficiency, after the government took over the task from state owned PT Superintending Company of Indonesia (Sucofindo) on Wednesday.

Customs and excise documents reveal the office has cut short a number of procedures resulting in a more efficient inspection service.

"With this streamlining we can cut short the procedures to less than 15 days compared to the 15 to 20 days under Sucofindo," said Herman, the head of the custom excise's system procedure section.

According to him, under Sucofindo, exporters had to wait up to 20 days from the submission of necessary documents until receiving the customs and excise' verification.

Whereas under customs and excise, exporters faced simpler inspection procedures, must submit fewer documents and could exchange export data faster using the Internet, he said.

The government transferred the inspection service to customs and excise after deciding not to renew its contract with Sucofindo.

Sucofindo had been responsible for the export inspection service since 1986 based on a two year contract, which the government had previously renewed every July 31.

Herman went on to say that one of the most time saving features of the custom and excise's service was that not all exporters were subject to inspection.

"We wave inspections on exporters whom we know have proven credibility," he said.

According to him, the office owns what it called a "white list" containing names of exporters with clean credentials.

These exporters, he said, could transport their export commodities for shipping without prior inspection.

Herman added the selected exporter still face random inspections to detect any abuses among the white list.

Elsewhere, FX Suwito Marsam, head of the Jakarta division of the Custom and Excise bureau said thus far the new inspection procedure was running smoothly.

"Some exporters have been through the new procedure today and we found no difficulty in its implementation," Suwito told The Post.

He said that on the first day, his bureau had conducted physical inspections of goods belonging to some 20 exporters.

The decision to let customs and excise take over the inspection service from Sucofindo had prompted criticism claiming the move was untimely.

Local media reported exporters from the textile and pulp and paper industry, complaining the current finance ministry should have delayed the takeover until the new Cabinet was formed.

They said the caretaker government had no authority to preside over such important decisions.

President Megawati Soekarnoputri forbade caretaker ministers from making strategic decisions. She is expected to announce the new Cabinet lineup within this week.

However, economist Sjahrir took a different perspective, saying that deciding to renew Sucofindo's contract could have constituted a violation of Megawati's instruction.

"It does not mean any contract in a due period can be automatically extended. So, from the point of view of the ministry, I think it does not want to violate the President's order," he said.

Next to questions over the legality of the decision, some believe custom and excise taking over inspection service undermines efforts to privatize Sucofindo.

The government hopes to sell off 15 percent of its stake in Sucofindo through private placement. At present it owns 95 percent of the company with the remainder belonging to the Geneva-based surveyor Societe General de Surveillance (SGS).

Sucofindo president Didie B. Tedjosumirat said that earnings from the inspection service made up 48 percent of the company's total revenue.(bkm/05/icn)