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Customs cancel import clearance privileges of eight companies

| Source: JP

Customs cancel import clearance privileges of eight companies

Rendi A. Witular, The Jakarta Post, Jakarta

The Directorate General of Customs and Excise has revoked the
"priority lane" import clearance facility of eight companies
because they failed to meet the new requirements set by the
customs office.

The head of the trade facilitation projects for customs
reform, Muhammad Zein, told The Jakarta Post on Thursday that the
eight companies would no longer be extended the privilege of
clearing their imported goods faster and cheaper through Tanjung
Priok Port.

"As of April, the directorate has revoked the clearance
privileges of eight companies for failing to meet the
requirements," he said.

The eight companies are PT Daimler Chrysler Indonesia, PT LG
Electronics Indonesia, PT Astra Nisan Diesel Indonesia, PT
National Gobel, PT Komatsu Indonesia, PT Indah Kiat Pulp & Paper,
PT Monokem Surya and PT Nikomas Gemilang.

In October last year, the customs office granted the facility
to 32 companies for a trial period lasting to the end of March.
At the time the government said it would review the facility
during the trial period to make sure no smuggling or
undervaluation practices occurred under the policy.

With the priority lane facility the companies could clear
their goods without undergoing the usual document examination and
physical checks by customs officials.

Customs officials still check the goods, but the process does
not hamper the flow of the companies' goods out of the port.

When the trial period ended, the 32 companies were encouraged
to reapply for the facility, but with new requirements.

Among the new requirements is a complete absence of customs
violations over the past year, and no record of misusing the
facility during the trial period.

A company should also have no tax or duty arrears and no
disclaimer on its audited financial reports.

Zein explained that five of the eight firms could not be
granted the facility because they were suspected of importing
"medium-risk" goods that could threaten the survivability of
local companies. He declined to name the five companies.

The priority lane is one of the programs recently announced by
the customs office in response to calls from the public and the
International Monetary Fund for the office to improve its
services.

However, experts and businesspeople say that no matter how
good the program is, the country's customs service will not
improve until its officials change their corrupt mentality.

Companies extended priority lane facility: PT Pantja Motor,
PT Astra Daihatsu Motor, PT Sharp Yasonta Ina, PT Yamaha Indonesia
Motor, PT Hilex Indonesia, PT Hilex Parts Indonesia, PT Sanyo
Industries Ina, PT Hyundai Indonesia Motor, PT Tri Dharma Wisesa,
PT Toyota Astra Motor, PT Aisin Indonesia, PT Arnott's Indonesia,
PT Asahimas Mas Flat Grass, PT Denso Corporation Ina, PT Federal
Superior Chain, PT Filamendo Sakti, PT General Motor, PT Kayaba
Indonesia, PT Topjaya Antariksa, PT Pelangi Indah Canindo, PT
Astra Honda Motor, PT Samsung Electronic Ina, PT PT Dumaco
Chemicals, PT Indomobil Suzuki Int.

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