Indonesian Political, Business & Finance News

Importers criticize new registration requirement

| Source: JP

Importers criticize new registration requirement

Adianto P. Simamora, The Jakarta Post, Jakarta

The Indonesian Importers Association (Ginsi) has appealed to the
government to revoke a government decree requiring importers to
apply for new licenses at the Directorate General of Customs and
Excise.

Ginsi chairman Amiruddin Saud said that the new requirement
would only increase bureaucracy and costs for the importers.

"The new registration ruling is only creating confusion among
importers," he said Monday.

The decree, which takes effect on Jan. 1, 2003, was issued by
Finance Minister Boediono last month. It is intended to allow
customs to obtain data on importers and to help curb Indonesia's
rampant smuggling problems.

But Amiruddin said the policy was not necessary because
importers had already obtained licenses from the Ministry of
Trade and Industry who in turn supplied the necessary data to the
Directorate General of Customs and Excise.

He said the directorate general should instead focus on
ensuring a smooth flow of goods to help create a more efficient
business environment.

The customs office has been notoriously corrupt. Giving new
powers to the directorate general has created fears of increased
bureaucracy and additional costs.

But director general of customs and excise Edy Abdurachman
defended the government's new policy, saying the measures had
been taken to prevent corruption.

As an example, he said importers would be required to submit
their registration forms via the internet to minimize contact
between customs staff and the importers.

Importers can register their companies at the customs'
website, www.beacukai.go.id.

He said the new policy would not overlap with the authority of
the minister of trade and industry.

"This (registration) is a common procedure. It is also applied
in other countries such as Japan and Singapore," Edy told
reporters.

He said the information gathered from the new registration
process would help the customs optimize its supervision of the
country's import activities.

He said many importers still submitted fake addresses and
identities to obtain import licenses.

He said that his office had found out that more than 200
registered importers were fake, 600 others were without tax payer
registration numbers and another 100 importers could not be
audited.

After registration had been completed, the customs service
would send out officers to verify all the information submitted
by the importers.

The verification process was expected to be completed by April
1, 2003 and import certificates issues shortly thereafter.

The customs office has been under heavy pressure to curb
rampant smuggling.

Local manufacturers have long complained that smuggled goods
are threatening their products on the domestic market.

They claim the smuggling and under-invoicing practices were
made possible by collusion with corrupt customs officers.

The government is also mulling plans to reestablish a pre-
shipment inspection system on imports to help curb smuggling.

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