Customs service and smuggling

Customs service and smuggling

Just as the customs and excise authorities are promoting fast- track handling of import documents, claiming that this only takes five minutes, cell phone and computer component importers in Surabaya and other major cities are complaining about their goods being held up by the very same customs authorities.

It is true that the Directorate General of Customs and Excise offers fast-track facilities to manufacturing importers with good track records. Such customs clearance facilities have initially been extended to 10 automotive and electronics companies.

In its implementation, however, the fast-track system is facing various impediments and challenges, with resultant dissatisfaction with the performance of the customs service. The strict inspections imposed on the import of information technology (IT) products in recent weeks, for instance, reflects the existence of import irregularities that reduce receipts from import duties.

Meanwhile, the smuggling of various imported goods has hit domestic industry hard, particularly textile and electronics manufacturers. The failure of the customs service to prevent the entry of such contraband goods has considerably damaged local manufacturers as they cannot compete with the illegal goods. But the customs service is not entirely to blame. --Bisnis Indonesia, Jakarta