Customs office asks for budget autonomy

Customs office asks for budget autonomy

JAKARTA (JP): The Directorate General of Customs and Excise,
confident of fully regaining its import inspection powers, has
asked for a budget autonomy.

Customs Director Permana Agung said the customs service should
perform professionally and with integrity if it wanted to be
efficient and effective.

"But we need a broader autonomy in our budget management in
introducing changes to make our institution highly accountable,"
Permana said.

"We are now trying hard to regain our full autonomy ... This
way, we will be independent and fully responsible for our
services," Permana said.

He said the customs service should be autonomous to deal
firmly with corrupt customs official.

Permana said the autonomy should cover matters pertaining to
customs services, including the inspection of imports and
exports.

The government stripped the customs office of its inspection
authority for imports in mid-1985 because of corruption. The
government entrusted the Geneva-based Societe Generale de
Surveillance and later in 1991 the state-owned PT Surveyor
Indonesia to inspect imports at loading points.

The government also stripped the customs office of its export
inspection powers. It assigned another state-owned surveyor, PT
Sucofindo, to inspect Indonesia's exports for the next two years.

But the customs service expects to regain fully the inspection
authority for imports by April 1, when the 1995 Customs Law comes
into force.

Importers and exporters, still traumatized by corrupt customs
services before 1985, have persistently demanded the government
allow them to conduct pre-shipment inspections of imports instead
of on-arrival inspections because they feared customs inspections
would delay the release of imports thus increasing costs.

Businesspeople think the general environment which made the
customs service corrupt has not changed much.

But the customs chief has tried to assure businesspeople that
selective on-arrival import inspections and post-entry audits of
import documents would be cheaper for the government and
businesses.

Most businesses are not convinced, especially in view of the
amount of corruption in almost all government agencies.

Permana said some parties, including importers, intentionally
mislead people by making negative remarks about the customs
office.

"They must understand the challenges the customs office is
facing ... and what has been done by the customs office since
1985," Permana said.

He said the customs office had a vision of providing customs
services which saved time and money. "Therefore, our success
would rely on our ability to meet all prevailing changes,
accommodate them and even stay ahead of those changes."

He said the customs office had realized the shift in the
customs business, namely from collecting state revenues from
import duties and other taxes to ensuring the smooth flow of
goods to maintain the country's competitiveness.

"The Directorate General of Customs and Excise, by nature, is
an unpopular institution... we delay people, we delay their goods
and we take their money... but we are trying to improve our
image," Permana said.

He said on-arrival import inspections, which would probably
start in April, would not inhibit the flow of imports because
most inspections would be done on documents after goods had
entered.

Physical inspections would be conducted randomly or when
intelligence necessitated the inspection of a container.

Otherwise, the customs office would only check documents
submitted by importers, he said

Moreover, if importers were connected with the customs
office's electronic data interchange, they could submit documents
electronically without having to meet customs officers, Permana
said.

Customs officials had 30 days from submitting documents to
verify the imported goods' prices. Whenever they find under-
invoicing within the set time it could penalize importers.

But if they find the discrepancy after 30 days, they cannot
impose a penalty. They could only audit imports, and if they
discover discrepancies they could demand the duty shortfall,
Permana said. (rid)