Importers call for new customs arbitration body

JAKARTA (JP): The business community has said the government should set up a customs arbitration body to anticipate the new Law on Customs and Excise which will come into effect April.

Executives of the Indonesian Importers' Association (GINSI) and the Association of Indonesian Textile Producers (API) said yesterday an arbitration body would help ensure a smooth flow of imports and exports despite the possibility of disputes between businesspeople and officials of the Directorate General of Customs and Excise.

GINSI chairman Amiruddin Saud and API Chairman Benny Soetrisno said an arbitration body was needed to complement the new law.

Amiruddin said importers felt an arbitration body could help solve problems that might occur in import and export procedures.

"It's against economic principles to allow problems that occur in import activities to be dealt with by existing import and export procedures," he was quoted by Antara as saying.

Without an arbitration body there would be no guarantee that the flow of goods into customs areas in Indonesia would remain smooth, he said.

This could have an impact on other activities, including industry, he said.

Amiruddin said about 70 percent of imports by GINSI members were raw materials for domestic industries which would be re- exported.

"If there are problems at the starting point, imagine what it will be like at the production and exporting points," he said.

Benny said any problems concerning import and export procedures should be solved separately, while goods that have already entered the port should be allowed to leave the area.

This way there would be no congestion at the port, he said.

"This is what importers are worried about," Benny said.

Law No.10/1995 authorizes customs officials to selectively inspect imports on arrival, to conduct post-audits of import documents and assess customs duties. These tasks are now done by state-owned PT Surveyor Indonesia under a contract which expires in March.

The law will introduce the GATT valuation code for assessing import duties and taxes, replacing a system which is based largely on export market prices.

He said the Customs and Excise office should also focus on increasing efficiency when conducting import and export activities.

He said special attention should be given to people working at the Customs and Excise office, because they would determine whether the new system would allow business to be done cheaply.

"Officials at the top can understand the laws, but can the lower-ranking staff do this as well?" Benny asked.

Amiruddin said that if lower-ranking staff, who deal directly with more than 3,000 importers a day, failed to understand the law, there would be big problems.

"With so many importers, daily activities will be hectic. If the officials are not ready, they will really get in the way of things," he said. (pwn)