Customs officials told not to repeat past failure
Customs officials told not to repeat past failure
JAKARTA (JP): Minister of Finance Mar'ie Muhammad warned yesterday that any failure in the implementation of the customs self-assessment of imports under the post-audit system could become a political embarrassment for the government.
"If the clearance of imports under the post-audit system is not as efficient and as smooth as under the current pre-shipment inspection system it would be a big political embarrassment for the government," Mar'ie told the working conference of the Directorate General of Customs and Excise Duty.
The minister said that the directorate general should therefore prepare itself thoroughly for its new task when the customs law comes into force next April.
"If necessary, the directorate general should start trial operations of the post-audit system two months before April to show how ready is it to perform its job," he added.
The government body, known for its corruption-ridden bureaucracy, was stripped of its customs inspection authority in the middle of 1985 as a result of the introduction of the pre- shipment inspection system.
This service, hailed by businessmen as the most efficient way of handling import flows, was initially provided by the Geneva- based Societe Generale de Surveillance (SGS). But the job was taken over in 1991 by a state-owned company, PT Surveyor Indonesia, and SGS has since been acting as a sub-contractor for the state company.
Mar'ie said that he had decided to terminate the contract with PT Surveyor Indonesia in April in coincidence with the implementation of the new customs law.
However, the government has yet to make up its mind as to whether the pre-shipment inspection system, which is based on a presidential decree, will be continued under the new customs law.
Domestic and foreign businessmen, still traumatized by the red-tape and rampant corrupt practices within the directorate general in the past, have appealed to the government to continue the present system.
The Indonesian Importers Association has even suggested that businesspeople are willing to pay the inspection fee if financing restraints are the main reasons for the restoration of the post- audit system.
The minister reiterated the importance of smooth import flows to enhance the competitive edge of Indonesian exports in view of the heavy dependence of the manufacturing sector on imported basic and intermediate materials.
Director General of Customs and Excise Soehardjo Soebardi said the harmonization of the customs procedures in ASEAN countries requires a post-audit system.
The Association of Southeast Asian Nations groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Apart from Indonesia, the Philippines also enforces the pre- shipment inspection system for its imports. The service is also conducted by SGS, the world's largest goods inspection service company. (hen)