Fri, 07 Feb 1997

Customs promises a faster flow of imports

JAKARTA (JP): The Directorate General of Customs and Excise has again assured worried businesspeople that imports will be cleared faster when it regains its inspection authority starting April 1.

Director of Verification Roy Ronald Lino said yesterday that the customs office had prepared a system which would guarantee a smoother flow of imports.

"I can assure you that our new system, by concept, will clear goods within hours, not days," Roy told The Jakarta Post at his office.

Roy made the statement in a bid to reassure domestic and foreign businesses that are concerned about the customs office taking over the inspection of imports.

Numerous Indonesian, European, American and Korean businesses have expressed their fear that imports may be delayed and importing costs increased if customs officers resume inspecting imports. Many doubt that customs officials have changed their old attitudes and work behavior, which ultimately forced the government in mid-1985 to introduce the pre-shipment inspection system.

However, Roy added, the customs service is not the only institution involved in the process of releasing imports from ports. He hinted that any delays might be caused by other agencies.

He said the process would be quick because customs officials would be dealing with the documents and importers would be connected to the customs office's electronic data interchange.

Importers, after paying customs duties and taxes to their banks, will be able to send customs declarations to the customs office electronically.

If they have no electronic connection with the customs office, they can send their customs declarations by computer diskette. The customs office provides services to prepare diskette customs declarations. Once it has received confirmation of payment from the importers' banks, the office will issue a customs clearance that can be used by importers to clear their imports.

"All of these processes can be done within minutes, not hours," Roy assured.

However, if there is a random inspection, or if an intelligence note necessitates physical inspection, the customs office can bring the imported goods to a "red" lane for closer inspection. After the inspection, customs officials will allow importers to clear goods from the port area even if irregularities are found.

"With this system, we assure businesspeople of a smoother flow of imports... even smoother than the current pre-shipment inspection system," Roy said.

The inspection reports will then be sent to the customs verification section for further study. The verification team will examine the reports and importers' customs declarations.

If no significant differences are found between the inspection reports and the importers' customs declaration, no follow-up steps will be taken.

If differences are discovered, for instance, in the prices or volume of imports, the verification team will inform the customs office's auditing section to audit the importers.

Document verification is also applied to look for possible commercial frauds such as the misdescription of goods, under and overvaluation, false declarations of quantity or quality, the abuse of import or export licensing requirements and the like.

If possible commercial fraud is detected, the verification section is to inform the auditing section and advise it to audit the importers.

"Verification and auditing serves as a monitoring system which will not in any case hinder the flow of goods because they will be conducted after the goods are already cleared," Roy said.

He reminded that the customs office used to conduct post- auditing of imports a few years ago for importers that received government facilities, including companies in bonded zones or production entreports destined for exports.

"We have experience in post-audit work. In addition, we have professional auditors," Roy said.

He added that his office would assign 456 auditors across the country, of which 120 would be stationed in Jakarta's Tanjung Priok port. (rid)