Import rules

This is in reference to Mr. A. Djuana's letter under the caption Mr. A and Mr. B published in "Your Letters" column of The Jakarta Post dated July 22, 1995. According to Mr. Djuana, A was deprived of a substantial amount of money by the cunning of Mr. B with the active connivance of B's overseas associate.

The story appears to be a mere concoction and far removed from reality. The simple reason is that all imports into Indonesia have to be inspected before shipment in the country of the shipper by SGS who have been appointed by the government and their services paid for by the government. Without a pre-shipment inspection report (LPS) the documents which constitute the authority for the overseas bank to disburse funds under a letter of credit are not complete. The letter of credit has to specifically stipulate the requirement of a pre-inspection report (LPS) by SGS (for shipments over $5,000). Every importer knows this rule and hence "A", the so-called importer, should also have known it as well.

Hence there is no possibility whatsoever of a shipment of the magnitude of say $1 million being effected under an L/C without the LPS. I am sure "A" is a shrewd and intelligent businessman (as businessmen usually are) and knows the rules of the game. The inference naturally is that the story narrated by Mr. Djuana is a figment of his imagination and people in business are certainly not as naive as Mr. Djuana presumes. Next time Mr. Djuana should take care to narrate stories which are more realistic.

S. LAKSHMINARAYAN

Kudus, Central Java