Mon, 01 Mar 2004

Customs office imposes clearance fees

The Jakarta Post, Jakarta

The Directorate General of Customs and Excise will go ahead with a controversial plan to impose nontax fees on import and export clearance and inspections starting on Monday, after it was delayed for a month due to protests from businesspeople.

Director general of customs and excise Eddy Abdurrahman said that the directorate would not back down from the plan despite the protest, because it urgently needed funds to improve the customs infrastructure and services.

"We shall impose the fees, starting on March 1. Protests from businesspeople are to be expected ... Anyway, the amount of the fees is small compared with the value of the exports -- I don't think it will be a burden on them," said Eddy recently.

The fees are to be imposed on the basis of a ministerial decree issued by the Ministry of Finance, said Eddy.

The customs office, known as one of the most corrupt government institutions, falls under jurisdiction of the Ministry of Finance.

Eddy explained that the fees would be incorporated into the state budget as nontax revenue, and the customs office could request up to 80 percent of the revenue.

As previously reported, the new fees will range from Rp 30,000 (US$3.50) to Rp 450,000 per service. For example, an importer will now have to pay Rp 100,000 per service for an import notice via electronic data interchange (EDI), Rp 250,000 for a ship's manifest of more than 10 goods, and Rp 200,000 for an inspection.

As for exporters, customs will charge Rp 60,000 for an export notice.

Import and export clearance procedures are currently free of administrative charges, but businesspeople have said many customs officials illegally collected fees or received bribes for speedy clearance.

Part of the revenue would also be used to improve the welfare of customs officials in order to curb corruption at the office.

The Indonesian National Shipowners Association (INSA), along with several textile and garment companies, has objected to the plan, saying the fees would simply be an additional burden, and that there was no guarantee they would improve the services provided by the customs department.