Imports inspection will be maintained

JAKARTA (JP): Trade Minister S.B. Joedono said yesterday that the present pre-shipment inspection system for imports, which has been used since 1985, would be maintained.

"But I don't know whether the contract with the Geneva-based Societe Generale de Surveillance (SGS) for the implementation of the system will be extended or not," Joedono said. The SGS contract expires in July.

The future of the SGS contract would, he said, be decided by the minister of finance.

The imports inspection service is currently provided by PT Surveyor Indonesia, a company controlled by the government, in cooperation with SGS as a sub-contractor.

In a related development, Amirudin Saud, Chairman of the Indonesian Importers Association, told the House of Representatives yesterday that the pre-shipment inspection system for imports should be maintained for its great success over the past 10 years to facilitate smooth import flows.

"The restoration of the post-shipment inspection system will again increase direct contacts between importers and customs officials and such direct contacts could become the starting points for corruption or other forms of malfeasance.

Amirudin said if the bill on customs and excise tax is really designed to facilitate foreign trade, the regulation on the pre- shipment inspection system should be clearly stipulated in the new legislation.

He earlier pointed out that importers have been so satisfied with the present system that they are willing to bear part of the costs of the pre-shipment inspection service.

Amirudin added most businessmen are worried that the costs of importing will again increase sharply if imports are inspected on arrival at Indonesian ports. (vin)