Indonesian Political, Business & Finance News

Government urged to ban fictitious importers

| Source: JP

Government urged to ban fictitious importers

JAKARTA (JP): The director general of customs and excise,
Soehardjo, urged the Ministry of Industry and Trade yesterday to
revoke 102 importers' licenses who had submitted false addresses
to the customs office.

"The importers' licenses must be revoked," he said during a
visit by House Budgetary Commission members to Tanjung Priok
port.

He said the importers had created problems in administrative
procedures and caused losses in government duty receipts.

The chairman of the Indonesian Importers Association,
Amiruddin Saud, said firm action should be taken against the
importers.

"The importers should not be allowed to operate any longer if
it has been proven they violated the law," he said.

Of about 3,000 importers, 102 were found to have submitted
false addresses to the customs office to avoid paying taxes and
other administrative fees.

The customs office has released the importers' names and
blacklisted them.

The House members were shown the new Electric Data Interchange
(EDI) system which processes import documents more efficiently.

Soehardjo said the new computerized system cut the document
processing from at least three days to just four hours because
documents could be sent electronically to all agencies involved.

By eliminating physical contact, the paperless EDI system is
expected to minimize opportunities for businessmen and customs
officials to extort money from importers.

Soehardjo said the new system would reduce chances of
companies giving false addresses to the customs office, because
the system was linked to related agencies like the bank, the
Export Service Facilitating Agency, and the freight forwarders.

"We cross-check with these agencies through the network," he
said.

So far only 31 companies, including 23 importers, five
shipping and airline companies and three banks have been included
in the pilot project which began April 1.

Amiruddin said that by June, about 1,500 of his organization's
Jakarta members would be linked to the EDI system.

Golkar House member Tadjudin Noer Said praised the new system
and called for changes in other aspects of the customs clearance
services.

"I have much hope in the EDI system speeding up the customs
service," he said.

The electronic network system is provided by PT EDI, which is
49 percent owned by state-owned PT Indosat and 51 percent owned
by PT Pelabuhan Indonesia Dua. (02)

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