Importers claim RI customs service is deteriorating

Importers claim RI customs service is deteriorating

Adianto P. Simamora, The Jakarta Post, Jakarta

After four years of assuming the authority to inspect imports,
the customs office has only built a negative image among
importers as its service has not improved, and has even
deteriorated, amid rampant corruption and smuggling.

A survey conducted by the Indonesian Importers Association
(Ginsi) in coordination with the University of Indonesia showed
that importers were disappointed with the services of the customs
office.

According to the results of the survey, a copy of which was
made available to The Jakarta Post last week, what really upsets
importers is that the customs office makes arbitrary decisions on
the level of import duties.

"Consequently, the cost of processing imported goods becomes
so expensive," the report said.

In addition, customs officials often tend to look for faults
among importers, and this complicates the problem as importers
are always on the losing end.

Worse still, importers' concerns and complaints do not get a
proper hearing at the customs office.

On the other hand, according to Ginsi chairman Amirudin Saud
customs officials often collude with importers allowing under-
invoicing and even smuggling of goods.

Consequently, the government suffers huge losses from this
collusive practice.

Based on these experience, importers suggested that the
government strip the customs office of its inspection authority
again.

"The customs office will be able to focus on supervision of
imports and curb smuggling practices if the government reimposes
the pre-shipment inspection of imports," the report said.

The report showed that about 82 percent or 131 out of 149
respondents wanted the reestablishment of the pre-shipment
inspection system of imports in order to speed up the clearance
of goods at the ports of discharge.

Out of the 149 respondents, 63 percent of them were raw
material importers, 24 percent capital goods importers and the
remainder were foodstuff importers.

This message was conveyed to President Megawati Soekarnoputri
by Amirudin during their recent meeting at the presidential
palace.

Under the pre-shipment inspection system, documents are
inspected and imported goods are cleared at the port of origin,
making the process faster and easier.

Then president Soeharto, fed up with the corrupt customs
office, introduced the pre-shipment system of non-oil and gas
imports in 1985. The government contracted independent surveyor
Switzerland's Societe Generale de Surveillance (SGS) to apply the
system.

Later on, the government also abrogated the inspection
authority of the corrupt customs office over exports.

Nevertheless, the customs office managed to convince the
government and also the public that it was ready to take on its
inspection duties again.

The customs office managed to regain its inspection authority
over imports in 1997 following the implementation of the 1995
Customs Law.

Again, in August this year, the customs office regained its
inspection authority over exports, which earlier had been managed
by state surveyor company PT Sucofindo.

But University of Indonesia economist Muhamad Ikhsan said that
the handing over of inspection authority back to the customs
office had caused the state to suffer huge loss of potential
revenue.

He pointed out that according to his calculation, the customs
office should be able to collect some US$1.6 billion in tariff
revenue last year, but it only garnered around $900 million.

Importers, according to the survey, also suggested that the
1995 Customs Law be amended to demand accountability and better
services from the customs office and thus reduce corruption at
the office.