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)