Customs EDI fully operational in three years
JAKARTA (JP): Only 52 foreign exchange banks are now connected to the customs electronic data interchange (EDI) system which was launched in April, causing problems for importers using the system, the customs said yesterday.
Director General of Customs and Excise, Soehardjo Soebardi, told reporters that although his office had trained executives of 115 foreign exchange banks, only 87 banks had applied for an EDI registration number.
"And of these 87 banks, only 52 are connected to the EDI system," he said.
Soehardjo hinted that it was unlikely the EDI system would be fully operational for about three years.
He said only eight percent of import transactions were now conducted via the EDI system, up from 2.5 percent when it was launched.
He said 92 percent of import documents were still handled through the diskette system. This means importers prepare their customs declarations on a diskette and take it to a customs' EDI service shop.
"The diskette system is likely to be used for the next three years," Soehardjo said.
Business has complained that the diskette system nullifies the advantage of the EDI system which is minimizing physical contact between customs officials and importers, thereby reducing corruption.
Importers using diskettes still have to give printed copies of their declarations to banks for duty and tax payments.
The EDI system was designed to allow importers to send their declarations electronically to the customs office and electronically pay import duties to their recipient banks.
It is supposed to electronically connect the customs office with importers, shipping firms, foreign exchange banks and port and airport authorities.
Importers who use diskettes have to pay more for data entry and transmission at EDI service shops.
Rudy Pesik, chairman of PT Birotika Semesta DHL, said last week that the EDI system had failed to achieve its objective due to a serious lack of preparation in human resource training and developing service networks.
Data transfer
"What the customs service is providing is not electronic data interchange but simply electronic data transfer," Pesik said at a meeting with importers.
The EDI system replaced the pre-shipment inspection of imports system which was started in mid-1985 to bypass the then corruption-infested customs service. The new system incorporates selective arrival inspection and post-entry audit.
But since the new system began importers have been complaining about unclear sections of the new system, particularly in relation to the transaction value of imported goods, tariff classification, on what basis customs may decide to direct imported goods to green or red lanes and criteria for the post entry-auditing of imports.
Soehardjo said that 900 importers had been trained to use the EDI system by the middle of the month but only 274 of them had EDI registration numbers and only 105 were connected to the system.
He said that much still had to be done to improve the system because EDI presently linked only the customs office to foreign exchange banks and to ports and airports.
"There is no electronic fund transfer yet between importers and their banks," he said.
He said several other government offices and private agencies had yet to join the system, such as the tax office, the state treasury office and shipping companies.
"The EDI system will be effective if more importers and related government offices are connected," he said.
Soehardjo blamed importers for most of the problems that still hinder the smooth import clearance of goods through the port.
"We have discovered many dishonest businesses falsely stating the value of their imports," he said.
Importers have said they have frequent differences with customs officials about tariff classification and transaction values, which determine the amount of duty they must pay. (pwn)