Import duty rebate processing still time consuming

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)