Tue, 30 May 2000

GINSI wants PSI system

JAKARTA (JP): The Indonesian Importers Association (GINSI) proposed to the government on Monday to re-impose the preshipment inspection (PSI) of imports to curb the recent increasing smuggling of various products into the country.

GINSI chairman Amirudin Saud said the PSI system would also prevent rampant practices of under-invoicing by importers, which could inflict financial losses to the government.

"We are ready to bear the cost of the PSI," Amirudin said at a meeting with Industry and Trade Minister Luhut B. Panjaitan.

The government scrapped the corrupt Director General of Customs and Excise of its inspection authority in 1985 and then entrusted Geneva-based Societe Generale de Surveillance (SGS) to conduct preshipment inspections of imports.

The customs office regained its inspection rights in April, 1997, and implemented the postshipment inspection system for imports.

Since the customs office resumed its inspection authority, Amirudin said, smuggling cases were on the rise, and the government's income from import duties and excise dropped. (rid)