Importers call for new customs arbitration body

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)