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)