Customs to expedite import clearance procedures

Customs to expedite import clearance procedures

Rendi A. Witular, The Jakarta Post, Jakarta

The Directorate General of Customs and Excise has promised to cut
bureaucracy and expedite import clearance procedures in a bid to
help improve the competitiveness of the country's firms and
attract investment.

Director General of Customs and Excise Eddy Abdurrachman made
the pledge on Wednesday during separate meetings with officials
of the Indonesian Chamber of Commerce and Industry (Kadin), and
the Association of Indonesian Delivery Service Companies
(Asperindo).

"We want to help the business sector, which has been facing
various problems," he said.

Eddy said that starting February 1, dozens of other companies
would be 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.

In November last year, the government extended the facility to
10 reputable companies.

Businesses have often complained about the long procedures
involved in the customs clearance process when importing raw
materials, which in turn adversely affects the goods production
and delivery processes.

The customs office has also agreed to discuss the design of
import tax policy with businessmen. This will also help avoid
extortion by customs officials.

Eddy said that the customs office would set up an integrated
coordination system for the exchange of information on smuggling
and corruption involving customs officials.

Eddy explained that the customs office would also introduce
measures to curb smuggling. Businessmen are to be encouraged to
provide information on smugglers and their operations to the
customs office.

Domestic firms have also complained about rampant smuggling in
the country. Smuggling hurts their home market as they find
themselves unable to compete with cheaper, smuggled goods. This
has also discouraged some manufacturing companies from making new
investments.

Eddy promised Asperindo that the customs office would finally
approve a request to cut bureaucratic import clearance procedures
within industrial bonded zones.

The policy has been implemented on a trial basis since
November last year.

Eddy said that the cut in bureaucracy would ensure that import
clearance procedures for companies within the bonded zones would
be completed in less than 24 hours.

Previously, many companies became frustrated as they had to
wait for between four days and one week to have their goods
cleared.

The new policy should attract investment into the country's
bonded zones.

Alan Cassels, a senior technical advisor for express delivery
company DHL Indonesia, said the new policy would boost efficiency
as there would be no more delays during the inbound shipment of
goods destined for bonded zones.

"There will be no more staff sitting at the warehouse for a
couple of days doing nothing. Anything that speeds the process of
customs clearance up is good for Indonesian business," said
Cassels.

Cassels further said that with the various measures announced
by the customs office, Indonesia had become the country with the
fastest import clearance procedures in the Asia Pacific region.

"We measure how fast the goods came into the warehouse and how
fast they come out. Of the 14 biggest countries we assess,
Indonesia used to be between 12th and 14th, but since the new
policy was introduced, Indonesia has now leaped to the top," he
said.

The customs office has also decided to raise the minimum
weight and value of goods to be granted express clearance from
the current maximum of 20 kilograms to 100 kilograms, and up to a
maximum value of US$5,000.