Govt urged to get tough with THC violators
Govt urged to get tough with THC violators
The Jakarta Post, Jakarta
The government should impose strict sanctions, including a ban on
entering Indonesia, against shipping lines that refuse to comply
with a recently introduced regulation reducing the terminal
handling charge (THC) they impose on traders, a domestic
shipowners association says.
"If there are shipping lines charging more than US$95,
exporters and importers should report them to the transportation
ministry," said Indonesian Shipowners Association (INSA) chairman
Oentoro Surya on Monday.
Oentoro said the government could revoke violators' licenses
to operate in Indonesia to show it was serious in reducing the
fee, one factor blamed by local traders for the high-cost
economy.
Minister of Transportation Hatta Rajasa announced on Nov. 1
that the government had lowered THC from $150 to $95 per 20-foot
container and from $230 to $145 per 40-foot container.
He added that his office had also instructed shipping lines to
lower their administrative costs from $40 (about Rp 410,000) to
Rp 100,000 per container.
Citing a recent study, the government said that with about six
million 20-foot containers coming in and out of the country's
ports each year, exporters and importers could save at least $350
billion a year with the lower fees.
Despite the announcement by the minister, there have been
reports of importers and exporters being required to pay the old
THC and administrative fees.
Foreign port subcontractors and shipping lines have objected
to the proposed fees.
Port subcontractors have suggested the government remove a 10
percent value added tax imposed on all stevedoring charges at
ports in Semarang and Surabaya in order to lower container
handling charges (CHCs).
The CHC, imposed by port operators on shipping firms, is the
main component for foreign shipping companies in deciding the
amount of the terminal handling charge, which represents a burden
on exporters and importers apart from the actual shipping costs.
The THC is a kind of surcharge a shipping line imposes on its
customers, over and above the overall ocean freight rates, to
help cover extra operational costs in terminals such as paying
illegal fees to port operators and security officers.