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Customs office launches new payment system for imports

| Source: JP

Customs office launches new payment system for imports

Zakki Hakim, The Jakarta Post, Jakarta

Starting April 1, 2003, all importers will have to pay their
customs duties and import taxes via government-appointed banks, a
move that is expected to help curb corruption and expedite
customs clearance.

To facilitate the new policy, the directorate general of
customs and excise signed a cooperation agreement with 45 state-
owned and private-owned banks on Wednesday. The banks will have
an on-line system with the customs office.

Under the new system, importers will go to one of the
appointed banks to make the payment, and the banks would then
confirm with the customs office. The importers will no longer
need to show the payment receipt to customs officials when they
want to clear their imported goods from the customs office.

Under the existing system, importers can either bring cash to
pay their fees directly at the customs office or pay via banks
but would still need to show the payment receipt.

"Using the online system, we aim to significantly speed up the
payment process and curb payment receipts forgery," director
general of customs and excise Eddy Abdurrachman told reporters on
the sidelines of the signing ceremony.

He said that the old system provided opportunities for bad
importers to bribe corrupt officials to understate their import
duties and taxes, thus creating huge losses to the state.

"The online system makes it impossible for customs officials
to forge documents and to impose illegal fees because payment
settlement is processed without any interference from the
officials," he said.

Eddy said that the online system was part of the program to
reform the customs office to increase its performance as a trade
facilitator, revenue collector and community protector.

The customs office had long been regarded as one of the most
corrupt institutions in the country.

But Minister of Finance Boediono, who attended the ceremony,
said that to reform the customs office, a new system would not be
enough because it would all depend on the commitment of the men
behind the system.

"It takes two to tango. Along with the customs effort to
reform itself, I ask everyone not to cheat with the system. We
will need your support and commitment to bring all of us to a
better condition," he said in a speech.

Sofyan Wanandi of the Indonesian Chamber of Commerce and
Industry (Kadin) said that businessmen would support the new
payment system and the customs office's efforts to curb corrupt
practices as it would help boost efficiency and lower the cost of
doing business in the country.

"The (new) system should significantly reduce costs and
hopefully it will lead to reducing our high cost economy and
accelerate the recovery of our economy," he said.

Businesses have often complained about the long procedures
involved in the customs clearance process and the customs office
failure to curb smuggling and undervaluation practices.

Since early last year, the office has began its reform program
in response to the long list of criticisms.

Since Feb. 1, dozens of companies has been allowed to enjoy
fast-track import clearance facilities, or what is locally known
as "green lane" privileges.

Under this facility, importers are able to clear their goods
without undergoing document examinations and physical checks by
custom officials.

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