Exporters to reclaim paid handling fees

Exporters to reclaim paid handling fees

JAKARTA (JP): Members of the Indonesian Importers Association
(Ginsi) and Indonesian Exporters Association (GPEI) said they
would reclaim terminal handling charges (THC) paid to foreign
shipping companies for the last five years.

Chairman of the two associations Amirudin Saud said on Friday
that they had appointed a team of lawyers to stop THC and
reclaim the charges, which amounted to US$4.3 billion.

"We will strive to stop THC because it has no legal basis. It
is an illegal fee that we have been paying for the last five
years," he told reporters after briefing the associations'
members at Hotel Indonesia.

The THC was first imposed during the Gulf War in 1991 for
cargoes shipped from Europe and the United States to Asia. The
charge was introduced to offset the higher operational costs
incurred from vessels having to reroute via Africa to avoid the
conflict zone.

Amirudin said that immediately after the war ended, the
shipping companies had lifted the charge for other Asian
countries, except Indonesia.

"They are having a ball here," he said, adding that the charge
has now gone up to $155 a container from only $50 when it was
first introduced," he added.

There are 30 foreign shipping companies operating in Indonesia
that demand THC including Gold Star Line, Hapac Lloyd, Hanjin
Shipping, Hyundai, Maersk Sealand and Samudera Indonesia,
Amiruddin said.

He said that until a few days ago, Netherlands-based NedLloyd
shipping company had imposed THC but had stopped due to urgings
from Ginsi and GPEI.

"We hope the other shipping lines will follow suit," he said.

Amirudin said that in the meantime, his members may not be
able to avoid paying THC but he urged them to bring in
transcripts of their THC documentation so the lawyers could
reclaim them.

Indonesia's imports as of July 2000 reached $18 billion with
raw materials comprising 74 percent of the total, followed by
capital goods, 20 percent and consumption goods, six percent, he
said.

Amiruddin also said the government has agreed with his
suggestion to revoke shipping licenses of local companies that
have no fleet.

He said that the government eased the application to set up a
shipping company to help the industry flourish but until now 97
percent of the business are done by foreign shipping companies.

"Imagine 40 million tons of cargo going to foreign companies
each year," Amirudin said.

He said that at least 800 companies do not even meet the
compulsory vessel weight of 5,000 tons.

"These local companies only act as agents for foreign
companies," Amirudin said. (10)