Importers want longer customs law transition period

Importers want longer customs law transition period

JAKARTA (JP): The Indonesian Importers Association reiterated
its support for the 1995 customs law yesterday but asked for a
longer transition period before it is fully enforced.

Association's chairman Amirudin Saud said the law should not
be fully enforced until 2003.

He said such a long transition period was needed because
preparations in the customs office had been inadequate.

"I don't think they are ready to fully implement the customs
law yet.

"What is the problem of giving us a transition period in which
we can choose either preshipment or on-arrival inspections for
our imports?" Amirudin asked.

"Moreover, if we choose preshipment inspections we are
prepared to pay all inspection fees," he said.

"A transition period of only three months to six months is not
enough because the customs office needs to prepare their
officials well to implement the law," Amirudin said.

He was talking about an Indonesian Chamber of Commerce and
Industry (KADIN) proposal that the law be fully implemented
within three to six months.

The government has ruled the law must come into effect by
April 1, although some technical matters could be adjusted after
that date.

Amirudin and KADIN vice chairman Iman Taufik questioned
customs officials' readiness to fully enforce the law with its
on-arrival and post-entry audit mechanisms.

They said it was very ambitious to fully enforce the law in
April amid the diminishing competitiveness of Indonesia's exports
and it could adversely affect Indonesia's economy.

EDI

Amirudin said the customs office promised to install
electronic data interchange (EDI) for smoother import flows but
no EDI hardware had been installed.

"April 1 is less than six weeks away. But they have not yet
put everything in place, like the EDI and X-ray scanner they
promised. How can they ensure smoother flows of goods?" Amirudin
asked.

He said he did not see any big preparations at Jakarta's
Tanjung Priok port which handles almost 70 percent of Indonesia's
exports and imports.

Amirudin also said customs officials' attitude had not changed
much.

He said customs officials, especially those in the front
line, still behaved like bureaucrats. "They still want to be
served."

Foreign businesspeople and exporters have expressed concern
and apprehension about customs officials' competence and attitude
in exercising their new responsibility.

Director General of Customs and Excise Soehardjo Soebardi has
repeatedly said importers were also responsible for hindering
fast customs services.

"We found many fictitious addresses of importers. They may
hide not only their addresses but also something else ... Thus,
we feel that many of our businesses are not yet ready for
globalization," Soehardjo told a House Budget Commission
Wednesday.

He said his office had not yet got the funding allocated in
the state budget to incorporate EDI into the customs clearance
system.

But Soehardjo said his office had made the necessary
preparations for to implement the customs law.

The preparations include training computer operators and
analysts to operate the EDI system, customs inspectors, auditors
and customs gateway attendants. (rid)