Import duty rebate processing still time consuming

JAKARTA (JP): Indonesian importers yesterday complained over the slowness of getting value added tax and import duty rebates, which are offered to export-oriented companies, despite the introduction of the new procedures.

Amiruddin Saud, chairman of the Association of Indonesian Importers (Ginsi), said yesterday the time needed to obtain the facilities is still much longer than the 14 days promised by the government.

"It often takes three months despite the introduction of the new system," Amiruddin told newsmen at the opening of the association's new headquarters at the Bank Niaga Building on Jl. Thamrin, Central Jakarta.

Bapeksta, the government run export service facility agency, introduced new measures in April to simplify the previously time consuming and tedious procedures in the application for import and value added tax rebates (drawback facilities) given to export-oriented companies.

The new procedures, which also includes the introduction of a self-assessment system on the use of imported materials, are designed to reduce the time in receiving reimbursement of both taxes to 14 days. Many export-oriented companies complained that it often took over six months to get the reimbursement.

During the introduction of the new system Bapeksta chairman Tjuk Soeroso blamed the state-owned surveyor Sucofindo, which handled the inspection of the utilization of imported materials, on the long-delay.

Bapeksta could not immediately order the reimbursement of the duty and tax payments as most documents filed by Sucofindo were invalidated.

The contract given to Sucofindo was terminated last October and importers now register the use of imported materials in the processing of export-oriented products under a self-assessment system.

Unexpected

Amiruddin, however, complained that the new system did not work as expected. The application might arrive at the desk of the Bapeksta's chief within 14 days as promised but reimbursement still took another three months, he said.

"I don't know why it happens. I hope Bapeksta officials don't do it intentionally," he said.

To obtain the duty and tax redemption facilities, the importing companies are required to establish bank guarantees equivalent to the import duty and value-added taxes of their imports. Bapeksta releases the bank guarantees and pays the reimbursement after it approves the application.

The delay in the approval of the facilities increased overhead costs of industrial companies as they had to pay fees on bank guarantees, and also significantly affected their cash flow, other importers said.(hen)