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.