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.