Indonesian Political, Business & Finance News

Govt plans to restructure customs and excise office

Govt plans to restructure customs and excise office

JAKARTA (JP): The government will restructure its customs and excise office in adjustment to the newly approved customs and excise law.

Director General for Customs and Excise Soehardjo told a press conference here yesterday that the Ministry of Finance is now preparing the restructuring plan.

He said that the restructuring will not only affect the organization of the Directorate General of Customs and Excise but also its daily activities.

The activities of the customs and excise office will be directed more toward facilitating the country's international trade rather than acting merely as fund raiser for the state, he said.

"The role will be more service-oriented," he said about the significance of the new customs and excise law, which was approved by the House of Representatives (DPR) last week.

He said that the change in the mission of the customs and excise office is in conformity with globalization of trade.

He said that it is essential to reorganize the customs and excise administration to support the change in mission.

The new law, which will be enforced in April next year, will put more emphasis on facilitating international trade activities. Under the new law, the collection of duties will be based on a self-assessment system, while physical examination of goods, or on-the-spot inspection will be carried out only on certain goods, especially those categorized as dangerous and having high tariffs.

Interchange system

He said his office will introduce an electronic data interchange system next year to facilitate export and import activities.

The system, which is now being tested at the country's major seaports in Jakarta, Medan and Surabaya, and at the Soekarno- Hatta airport in Jakarta, will enable inspection of trade documents without having to meet with importers or exporters.

He said that the government has already spent Rp 23 billion (US$10.45 million) to develop the paperless processing system.

"We still need a much larger amount of funds to install the system at other customs offices," he said.

Soehardjo said that import documents, which are now processed in countries of origin, will be checked upon arrival under a post-audit system.

The implementation of the new law will begin in April next year, but the existing regulations will remain valid within a year after its introduction, he said.

"That means that the post-audit system in the country's customs and duty administration will be fully applied in April 1997," he said.

He refused to comment on whether the full implementation of the new law will mean an immediate end to the contract with the Geneva-based Societe Generale de Surveillance (SGS), which now inspects Indonesia's imports at points of loading.

The government renewed the contract of the SGS in July for another two-year term amid criticism from the public. (hen)

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