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.